Sir,
Budget Speech by Hon. D.. McDonald
Re
D.P..
in Legislative Council on 20th April 1977
enter
RE..
19 MAY 1977
224 36
LKK 100/2
In moving the Second Reading of the Appropriation Bill the-
Financial Secretary indicated the principal reasons for under-expenditure
on Public Works Non-Recurrent heads of the Estimates for 1976/77. Miss Dunn,
in her speech in support of the motion, requested a further breakdown of the
elements contributing to the under-expenditure.
The P.W.N.R. heads contain a vast number of items covering a very
wide range of activities and project types and explanations of the under-
expenditure can most easily be dealt with under broad headings. I will
therefore try to highlight the main areas and give the proportions of each
in relation to the total.
Under-expenditure on clearances, acquisitions, resumptions and
compensation amounted to about $130M. or slightly more than 30% of the
total. Of this sum 23M. is attributable to P..D.'s inability to conclude
land and property resumptions in the urban areas due to the unwillingness of
owners to accept Government offers during a period when market values were
1
rising. A further $75M. was underspent because of delays in programmed
clearances with consequential delays in payment of compensation and
commencement of works on site.
Approximately $29M. of this figure relates
to the New Towns of Sha Tin and Tsuen Wan, $28M. to urban highway projects
and $18M. to various building and civil engineering projects located
throughout the territory. Another $20. could not be spent because of
delays in works programmes and compensation payments brought about by
objections raised under the Streets (Alteration) Ordinance.
The second largest element, representing 26.6" of the under-
expenditure or $114., is attributable to tender prices being so far below.
estimates and to provisions allowed for fluctuations and settlement of final
accounts remaining largely unspent. It must be remembered that the estimates
/Cont'd.