20.

In June 1997, the Government announced the revision of water tariffs and water conservation tax to a uniform flat rate for all users. The increases were to be phased over 4 years, with the last increase cheduled for 1 July 2000. The water tariffs, including conservation tax, will increase by between 14.3 cents and 23.3 cents per cubic metre for domestic consumers. The non-domestic water rate will remain unchanged at $1.52 per cubic metre.

21.

To offset higher sewerage costs, the waterborne fee will be raised as scheduled by 5 cents per cubic metre for domestic consumers and 9 cents per cubic metre for non-domestic consumers, also with effect from 1 July 2000.

22.

The Government will continue to help lower-income households cope with the water tariff increases and I am happy to confirm that the offset package announced in last year's Budget will be continued this year. The utilities rebates are $200 for 1 to 3-room HDB flats and $100 for 4-room HDB flats. The rebates will be credited against the utilities bills of eligible households for the month of September. Households which are unable to use up the rebate within the month can carry over the balance of the rebate until it is fully used up. This will cost the Government about $81 million.

23.

Grants for S&C charges to HDB lessees and tenants, ranging from $36 to $66 a year will also continue to be given. The grants will start from July this year and will be $3 per month for 1-room flats, $4 per month for 2-room flats, $5.50 per month for 3-room flats and $4 per month for 4-room flats. They will be credited directly into the S&C accounts of eligible lessees or tenants with their Town Councils. This will cost the Government $29 million.

24.

I will now move on to tax changes for companies and businesses in general.