Head 12-Postal Services
With the exception of the subhead for 'Postal and money orders'-where the yield fell slightly short of the estimate all the subheads produced more than anticipated. Significant excesses were recorded under 'Parcel post excluding recoveries from other administrations' which yielded $10,927,985 or 41.2% more than estimated because of higher postal traffic and an increase in postal rates; 'Postage prepaid and meter postings' which yielded $15,718,981 or 31.4% more than estimated because of higher postal traffic, increased postal rates and an increase in the number of private postage meters; and 'Recoveries from other administrations' which pro- duced $3,399,193 or 48.6% more than estimated due partly to the receipt of one large arrears item during the year and partly to accelerated settlement of accounts by other administrations.
Head 13-Airport and Air Services
The overall revenue collection under this Head fell considerably short of the amount estimated. Of the 10 subheads 8 had shortfalls and only 2 had excesses, the major shortfalls being in ‘Aircraft landing' fees $10,225,201 (10.3%) and 'Aircraft peak movement surcharge' $1,199,500 (13.6%) because the estimate allowed for the increase in fees being introduced earlier than collection commenced, there was also a reduction in aircraft movements, and in 'Airport car parking' $548,351 (21.9%) largely because the increase in passenger traffic was smaller than anticipated. The main excess was under ‘Aircraft parking' $1,925,630 (77%) where revenue improved because of increased use of the terminal apron for overnight parking of cargo aircraft.
Head 14-Kowloon-Canton Railway
There was one major shortfall of $1,979,850 or 13.2% under 'Passenger services' because the rate of growth in passenger traffic was smaller than anticipated. The remaining subheads produced excesses among which the major items were excesses of $4,259,107 or 28.4% under 'Goods services' due partly to an increase in the volume of goods, particularly oil and dry goods, carried from China and partly to an increase in cargo handling charges, $490,729 or 98.1% under ‘Advertising' because income from the letting of advertising space at the new Hung Hom Terminal proved to be higher than expected and $448,868 or 64.1% under 'Rents' because rents obtained from the letting of premises at the Hung Hom Terminal also proved higher than expected.
Head 15-Reimbursements
The net shortfall of $29 million under this Head arose from eight main sources the principal contributory item being a shortfall of $30,000,000 (100%) under 'Mass Transit Railway Provisional Authority' due to delay pending finalisation of reimbursement computations. Other large shortfalls occurred under 'Works executed on private account' ($3,786,239 or 25.2%) because demand for private works was smaller than anticipated and under 'Advances to tenants of condemned buildings' ($924,240 or 77%) because the number of buildings declared dangerous has been declining in recent years and the original estimate for recoveries of such advances was pitched too high.
There were large excesses under Public Works 'Other' reimbursements ($2,871,069 or 5,742.1%) due mainly to recovery of works cost of donated projects not allowed for in the original estimate; 'Loss and damage to Government property' ($1,203,366 or 388.2%) principally because one amount of approximately $990,000 was received in settlement of an insurance claim; and Miscellaneous 'Other' reimbursements ($5,183,413 or 120.5%) which occurred partly as a result of the reimbursement of some $2,500,000 in salaries and oncost for Education Department staff seconded to the Hong Kong Polytechnic, which had not been estimated for, and partly because of the difficulty in estimating for the miscellaneous items of revenue which make up this subhead.
Head 16-Contributions towards projects
There were no amounts credited to revenue under this Head during the year.
Head 17-Loans
No estimate was included under this Head, but during the year two loans were raised for general revenue. The first was overseas from Lloyds Bank International Ltd. for an equivalent amount in United States Dollars of £1,500,000 (HK$15,324,788 at time of receipt) and the other was the issue locally of 64% Hong Kong Govern- ment bonds at a price of 99 and repayable in 1980, the net proceeds amounted to $247,217,164,
Head 18-Grants
No estimate was included under this Head, but during the year grants were received both from the United Kingdom Government ($819,000) and from the United Nations ($600,000) towards the cost of supporting Vietnamese refugees in Hong Kong.
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