Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Thursday, July 24, 1997 CONTENTS ======== 1. TA approves general tariff revision for Hong Kong Telephone 2. Contract signed for completing sewer tunnel system 3. Normal beach water quality in Stanley and Tuen Mun 4. Exchange Fund figures as at end-June 1997 announced 1. TA approves general tariff revision for Hong Kong Telephone *********************************************************** The Telecommunications Authority (TA) has approved a general tariff revision of Hong Kong Telephone Company Limited (HKTC), including the introduction of timed charge for local calls made from payphones operated by HKTC, with effect from August 1, 1997. Under the existing Telephone Regulation, HKTC may revise the charges for its services on an annual basis by not more than the general inflation rate (based on the Consumer Price Index (CPI)) less four per cent. The prices for rental charge for residential lines may not be increased by more than the general inflation rate less three per cent per annum. Under the general revision approved, the monthly rental of residential lines will be increased from $67 to $68.9 while that of commercial lines will be increased from $104.6 to $108.8. "The weighted average of the increase is 1.9 per cent and this meets the "price cap" limit under the Telephone Regulation. This means that consumers will benefit from a four per cent real reduction in the charges of HKTC," said a spokesman for the Office of the Telecommunications Authority (OFTA). As part of the general revision, the charge for existing and new customers to remove their names and telephone numbers from the telephone directory has been removed. Although this charge had been in place for many years and was to cover the administrative cost involved, the company has agreed to remove this charge from the tariff table so that the customers do not need to incur a charge to protect their privacy. The revision has included the introduction of timed charge for making local calls from payphones operated by HKTC. With effect from August 1, the charge for making a local call from payphones of HKTC will be $1 per five minutes. At present, the charge for making a local call at payphones operated by HKTC is $1. There is no time limit to the length of the call. "From time to time, the TA received views expressing concerns over the prolonged occupation of payphones, particularly those located in busy areas," said the OFTA's spokesman. "The purpose of the timed charge on payphones is to improve the quality of service by discouraging prolonged occupation of payphones. "HKTC will not receive additional revenue from the timed charge arrangement because any additional revenue will be taken into account in computing the allowable price increase under the general tariff revision." "A three-month trial of timed charges for public payphones was conducted earlier this year by HKTC. "In approving the timed charge for payphones, the TA has taken into consideration the findings of this trial which showed the timed charge arrangement would be supported by the majority of the general public. "The TA has also consulted the Telecommunications Users and Consumers Advisory Committee of OFTA and reported its findings to the Economic Services Panel of the Legislative Council in June 1997," added the spokesman. HKTC will progressively implement the timed charge arrangement on the payphones within a month. Clear signs to guide customers will be displayed on the payphones operating under the new timed charge arrangement. "The approval of the timed charge for payphones bears no relations to the charges for residential and business telephone lines which remain on a flat-rate basis," emphasised the spokesman. End 2. Contract signed for completing sewer tunnel system ************************************************** The Director of Drainage Services, Mr John Collier, signed a $357 million contract today (Thursday) to complete the sewer tunnel system from Kwai Chung to Stonecutters Island. The works include the completion of sewer tunnels from Kwai Chung to Tsing Yi and from Tsing Yi to Stonecutters Island, as well as the completion of deep shafts and ancillary site works at Kwai Chung Preliminary Treatment Works and Stonecutters Island Sewage Treatment Works (SISTW). "When the sewer tunnels are completed, they will enable sewage from the Tsuen Wan, Kwai Chung and Tsing Yi areas to be conveyed to Stonecutters Island for treatment," Mr Collier said. "This will increase significantly the utilisation of the SISTW from the current 25 per cent to 50 per cent of its capacity," he said. The main works will commence later this month for completion in August 1999. The contract forms part of the three contracts which cover the completion of the Strategic Sewage Disposal Scheme - Stage I sewer tunnel system. The contract is awarded to Skanska International Civil Engineering AB. End 3. Normal beach water quality in Stanley and Tuen Mun ************************************************** The result of the analysis available today (Thursday) on water samples taken from the Stanley Main and Hairpin beaches on Tuesday (July 22) indicates that the beach water quality is within the normal acceptable level and is suitable for swimming. Making the announcement, a spokesman for the Environmental Protection Department (EPD) said the water quality of both beaches was currently grade 3. The Stanley Main and Hairpin beaches were closed by the Provisional Urban Council on Monday (July 21) soon after the Drainage Services Department reported to EPD that the sewage pumping station at Stanley Main beach could not cope with the large quantity of inflow, and EPD considered that the water quality at both beaches could be adversely affected. The spokesman said the water quality of the five Tuen Mun gazetted beaches, closed by the Provisional Regional Council on July 11 continues to improve. The results of the analysis available today (Thursday) on water samples taken on Tuesday (July 22) indicate that the beach water quality of all the five beaches is back to the normal acceptable level. The water quality of Golden Beach, New Cafeteria, Old Cafeteria, Kadoorie and Butterfly beaches is grade 3 and is suitable for swimming. "We are continuing to investigate the cause for the adverse water quality and will continue to take samples at these beaches for any signs of deterioration in beach water quality," he said. End 4. Exchange Fund figures as at end-June 1997 announced *************************************************** The Hong Kong Monetary Authority (HKMA) today (Thursday) announced the results of the Exchange Fund as at the end of June 1997. The figures, which are unaudited, show that: * the Total Assets of the Exchange Fund stood at HK$569 billion as at end-June, an increase of 6.4% from end- 1996; * the Accumulated Surplus of the Exchange Fund stood at HK$181.9 billion as at end-June, an increase of HK$9,025 million or 5.2% from end-1996; and * the foreign currency assets held in the Exchange Fund, which excluded forward transactions, reached US$67.6 billion as at end-June. Including forward transactions, the foreign currency assets reached US$69.7 billion. Mr Joseph Yam, Chief Executive of the HKMA said: "We are satisfied with the results which were achieved amidst difficult market conditions in the first half of 1997. We steered a steady, defensive course through volatile bond and currency markets." "The investment outlook for 1997 remains difficult. Forecasts on US interest rates remain mixed and a strong US currency may also adversely affect the non-US dollar assets of the Fund," he explained. The official foreign currency reserves of Hong Kong, including those held in the Land Fund, exceeded US$82 billion at the end of June 1997, placing Hong Kong at the fifth position in the world ranking. The Land Fund is now managed by the HKMA as a separate portfolio. Exchange Fund Foreign Currency Assets (US$ billion) --------------------------------------------------- Excluding Net Including forward forward forward transactions transactions transactions ------------ ------------ ------------ March 95 52.4 (0.2) 52.2 June 95 53.6 - 53.6 September 95 51.8 2.8 54.6 December 95 55.4 1.8 57.2 March 96 58.1 1.7 59.8 June 96 57.3 2.7 60.0 September 96 55.4 6.7 62.1 December 96 63.8 5.7 69.6 January 97 65.9 5.2 71.1 February 97 63.8 4.3 68.1 March 97 63.4 4.3 67.7 April 97 63.6 4.0 67.6 May 97 66.6 1.8 68.4 June 97 67.6 2.1 69.7 Foreign Exchange Reserves Ranking --------------------------------- Source: HKMA, IMF (IFS - Jul 1997), Reuters 1. Japan US$222 billion Jun 97 2. China US$121 billion Jul 97 3. Taiwan US$90 billion May 97 4. Germany US$86 billion May 97 5. Hong Kong US$82 billion June 97 6. Singapore US$81 billion May 97 7. US US$70 billion May 97 8. Spain US$63 billion May 97 9. Brazil US$54 billion Apr 97 10. Italy US$45 billion Apr 97 End
