CONFIDENTIAL ## 機密
For discussion
on 17th May 1977
XCC(77)30 Copy No Page 1 of 2
MEMORANDUM FOR EXECUTIVE COUNCIL
•
REVIEW OF FINANCIAL ARRANGEMENTS BETWEEN THE GOVERNMENT AND THE HOUSING AUTHORITY
sofs
of 80
Pla
"
IN
1.77
HKK 360 /
On 1st March 1977, after considering memorandum XCC(77)11
A
(Annex A) the Council advised and the Governor ordered:
"that the proposals in the memorandum should be put to the Housing Authority.
It was agreed that the references to a rate of return in the memorandum should be considered further with a view to removing any implications of a Government profit. The memorandum would be considered further by Council in due course.
11
New Financial Arrangements
2
With the exception of the proposal to require the Authority to show a rate of return, the proposals in memorandum XCC(77)11 were put to, and accepted by the Housing Authority on 24th March 1977. The Authority considered the proposals to be sensible and noted that the removal of the deficit grant for Group B estates was more than offset by improved cash flow resulting from the other proposals.
Performance measures
3
In place of the proposal to require the Authority to show a fixed rate of return on Government's contribution, it has been suggested to the Authority that, since the new financial arrangements provide the Authority with greater flexibility in handling its affairs, the Authority should introduce some form of device that would provide a measure of its financial performance and of significant trends in its accounts year by year.
4
The Authority has responded favourably to this suggestion, and proposes to introduce a set of performance measures, which will enable the Authority's policies with regard to expenditure on construction and management, and the setting of rents and other revenue, to be monitored.
The Authority's proposals are set out in the memorandum dated 6th April 1977 at Annex B. Although the precise details and method of
5
B
C.S. 166
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