The Environmental Protection Department has proposed a new sewage services charging scheme requiring that polluters share the operating cost of treatment projects.

The department today told lawmakers it wants to apply the "polluter-pays" principle in a modest and gradual manner.

While the Government will shoulder the $8 billion cost of building Stage 2A of the Harbour Area Treatment Scheme, and more for other new sewage projects, households and trade should share the operating cost.

The department recommends an interim goal of 80% cost recovery to be achieved in 10 years. This means the sewage charge will gradually rise. Presently, the average household sewage charge amounts to about $11 a month. It will become about $12 next year and $13 the year after next. In 10 years it will have risen to about $27. For most households, the annual increment will be less than 10 cents a day.

Charge low

Taking into account the proposed increment, the sewage charge in 2016-17 (average account of $27 per month) will still be well below that of other cities with a comparable level of development. Currently, 90% of households pay no more than $20 in sewage charges a month.

Comprehensive Social Security Assistance Scheme recipients will be entitled to an allowance that takes the costs of paying for sewage services into account.

The impact on the trades is also modest. Eighty per cent of restaurants pay a sewage charge of under $500 per month at present. The increment in the initial year will only be around $46 per month.

Despite the proposed sewage charge increments, there will be no reduction in the Government's contribution to the operating expenses of sewage treatment. The additional revenue collected as a result of the increased sewage charge fees will fund the operation of new facilities.

Surcharge studied

An initial review of the trade effluent surcharge has also been conducted. Recommendations include incentives to encourage trades to upgrade pollution control, and trade-specific effluent surveys to update the generic pollution level of each trade affected by the effluent surcharge.

These are scheduled for completion within a year and will form the basis of any adjustment of the trade effluent surcharge rates.

The department will consult the Legislative Council Panel on Environmental Affairs on January 5. If lawmakers and the public support the recommendations, the legislative process should be completed in the first half of 2007 and the first increase in charges will be effective thereafter.