Fees for oil storage installation licence to be revised

The Government is planning to revise fees for licenses of oil storage installations. The Building (Oil Storage Installations) (Amendment) Regulation 2011 (Amendment Regulation) made under the Buildings Ordinance, Cap. 123, in respect of fee adjustments of oil storage installation licence is gazetted today (January 14).

According to the Buildings Ordinance, an oil storage installation means any tank having a capacity of not less than 110 000 litres constructed above ground level for the purpose of storing petroleum products. 

It is proposed that the fee for granting a new oil storage installations licence be reduced from $45,250 to $39,050, and that annual renewal of a licence be increased from $23,100 to $24,550. The proposed fees are to recover the full cost of providing public services, in line with the "user pays" principle.

A spokesman for the Government attributed the proposed reduction in fees for granting of licence to the streamlined work procedures. "The concerned departments have endeavoured to review their work procedures and have identified room for streamlining. The proposed fee adjustments reflect efficiency enhancement, which enables reduction of the cost for granting new licence," the spokesman said.

The spokesman also noted that the proposed fee adjustments should have little impact on the operating costs of the industry practitioners and do not have a direct impact on the public at large. "We have consulted relevant stakeholders of the industry and no objection to the proposal was raised," he said.

Following the gazettal today, the Amendment Regulation will be tabled at the Legislative Council on January 19 and, subject to the scrutiny of the Council, will become effective on March 11, 2011.

Ends/Friday, January 14, 2011
Issued at HKT 11:36