Total

1981

1, 211

1,211

1982

778

778

1983

573

573

1984

217

531

578

1985

391

785

1, 176

1981-85

608

3,878

4,486

1986

326

1,237

1987

1, 563

276

1,337

1988

1, 613

332

1,079

1,411

1989

581

1, 481

2,062

1990

818

1, 919

2,737

1986-90

2,333

7,053

9,386

Post 1990

4,857

16,669

21, 526

Total

7,798

27,600

35, 398

43

Thus, if Tin Shui Wai went ahead now as proposed by the developers and given the commitments listed in paragraph 41 above, total capital expenditure over the next 6 years could be in excess of $21 billion per annum at 1980 prices or some 34% higher than expected in 1981-82. It is difficult to see how expenditures of this magnitude could fail to lead to a significant draining of resources from the manufacturing sector and from export-oriented tertiary services to the detriment of economic growth.

44

From the broad brush analysis given above it is apparent that over at least the next six to eight years there will be heavy demands on both overall economic resources and the construction industry, arising mainly from very large projected increases in public sector capital expenditure, coupled with the need to give priority to such major projects as a replacement airport, new container port facilities, the MTR Island Line and a number of major road projects.

G.S. 166

CONFIDENTIAL **

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