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 the Government for funds borrowed at the time of setting up the Trading Fund; 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.

Actual Performance
In the year ended 31 March 2003, the Land Registry Trading Fund achieved a net profit after taxation of HK$75.4 million and attained a return on ANFA of 20.6%.

When compared with last year, the overall revenue decreased by HK$37.7 million (down 9.3%), mainly due to decrease in workload. Through effective cost controls and concerted efforts under the Enhanced Productivity Programme, operating expenses decreased by HK$25.9 million (down 8.3%).

Forecast
We expect to see continued relative weakness in demand for services from the public in the coming year together with lower demand from government departments. Strict cost control will be needed to maintain the required rate of return.

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 or deflation, the retained reserves and the implementation of efficiency improvement projects and new services. There has been no statutory fee revision since June 1996. No increases are planned.