Annual Report 2000 - 01
Financial Management

Financial Objectives

In accordance with the general provisions of the Trading Funds Ordinance, the Land Registry has established and pursued clearly defined financial objectives. These include:

  • Meeting expenses incurred in the provision of services to the public and government departments out of the income of the Trading Fund, taking one year with another;
  • Making prompt repayment of loans and related interest to Government for funds borrowed at the time of setting up the Trading Fund, and for the financing of capital projects; and
  • Achieving a reasonable return, as determined by the Financial Secretary, on the average net fixed assets (ANFA) employed. The current prescribed rate is 10% per annum.

Revenue (%) Chart - Registration of documents 54.4%, Copying 14.4%, Search 18.6%, Report on title 10.0% & Others 2.6%

Actual Performance

For the year ended 31 March 2001, the Land Registry Trading Fund achieved a net profit after taxation of $92.3 million and attained a return on ANFA of 25.7%.

When compared with last year, the overall revenue decreased by $36.7 million (down 8%), mainly due to decrease in workload. Through effective cost controls and concerted efforts under the Enhanced Productivity Programme, operating expenses decreased by $24.4 million (down 7%).

Operating Costs (%) Chart - Staff cost 64.4%, Depreciation & amortization 16.5%, Rental and management charges 6.9%, General operating expenses 6.3% & Computer service charges 5.9%

Forecast

The Land Registry will continue to exercise strict control on expenditure. However, the actual revenue and return on ANFA will depend on the transaction volumes in the property market, which is outside the control of the Land Registry.

Fees and Charges

Fees and charges are reviewed annually to take into account the full cost of providing Land Registry services, the impact of inflation, the retained reserves and the implementation of efficiency improvement projects and new services. There has been no statutory fee revision since June 1996.