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15
5
XCS(71)12
There remains the question of how best to distribute the £40 million between different items. Leaving aside the £2. 2 million per annum for maintenance and minor works, Unofficial Members earlier wished to allow a total of £17 million for capital works, so minimizing the "cash contribution". This would indeed (on the basis of a £40 million total) be reduced from the present level of £3.925 million a year to £2.4 million a year; and the overall position might in consequence be easier to present.
16
Expenditure on maintenance and minor works would admittedly go up from the present £0, 475 million to £2. 2 million a year, largely because the Colony would be paying the whole instead of a part of the costs involved, as was previously the case. But it can be argued that because the Colony has a reversionary interest in the buildings which are being maintained, the Hong Kong Government would be wise to assume the whole responsibility for their proper maintenance. Indeed, the previous arrangement whereby only some of the maintenance was done by Government proved administratively very difficult to operate. In any case, as indicated above, both figures are notional: that is to say, the actual work is under- taken or arranged by the Public Works Department at Government expense, with any savings or excess expenditure lying where they fall.
17
Expenditure on capital works would also go up, from £0.6 million a year to an average of £3,4 million a year. Again however there are arguments for financing these works, in that most of them will be of direct and lasting, if reversionary, benefit to Hong Kong. This is particularly true of the married quarters, which are expected to account for more than half the programme. In addition, it is possible that the full £17 million will prove to be more than can in practice be spent during the period. Provided that responsibility for any shortfall could not be placed at Hong Kong's door, the balance would not have to be made up in cash; in other words, the five year total payable would then fall below the £40 million sought in a sense offsetting the possibility that maintenance and minor works may exceed £11 million.
18
For the reasons given in the preceding paragraphs, it therefore seems advisable to allocate £2, 2 million a year for maintenance and minor works, and a total of £17 million over the period for capital works. The final effect of these proposals on the distribution of cost would be that the annual contribution would be as follows, if the second possible phasing mentioned in paragraph 14 were to be adopted:
Maintenance and Minor Works
£ million
Total
Capital
Works
Cash Contribution
£ million
£ million
£ million
1971/72
2.2
2.9
2.4
7.5
1972/73
2.2
2.9
2.4
7.5
1973/74
2.2
3.4
2.4
8.0
1974/75
2.2
3.9
2.4
8.5
1975/76
2.2
3.9
2.4
8.5
Total
£ million
11.0
17.0
12.0
40.0
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