SPEECH BY THE HONOURABLE THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL : WEDNESDAY 7 AUGUST 1985

!

Sir,

In accordance with section 8(8)(b) of the

Public Finance Ordinance, I now table for Members'

information a summary of changes made to the approved estimates of expenditure in the first quarter of the financial year 1985-86.

2.

Supplementary provision of just under

$1,554 million was approved, of which $1,500 million

was for the payment of the first equity injection for

the Mass Transit Railway Corporation in 1985-86. Other major provisions included $13.3 million for subventions to the Hong Kong Tourist Association; $8.3 million for resumption of land within the Castle Peak Firing Range

in the New Territories; $7.9 million for a grant to the

War Memorial Fund and $7.3 million for special legal

expenses on court fees. The amount of $1,500 million is too large to be covered by the provision for

additional commitments of $1,800 million, which is in any case largely committed as a result of the 1985

salaries adjustment. Nevertheless, an increase in the

budgetted deficit arising from this unforeseen payment

is not expected because the amount should be offset by larger than expected land revenue due to the recent improvement in land prices and payments for land purchases

in cash, rather than in Letters "B". Other supplementary provisions approved have been offset either by savings under the same head or other heads of expenditure or by

deletions of funds under the additional commitments votes.

3.

During the quarter, a net increase of 222 posts was approved, including posts for the Housing Authority

and the Urban Council.

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