192
Date:
28.11.86
Time:
8.30
12.30
Reporter:
PMS
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[9.43 am]
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CHAIRMAN:
The next item on the agenda, we are dealing
4 with paragraph 113 124 of Director of Audit's Report. May I call
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upon the Secretary for Economic Services to appear before the Committee.
(Pause) Good morning, Mr Yaxley.
SES:
Good morning to you.
We are dealing with Director of Audit's
CHAIRMAN:
Report paragraph 113 to 124 regarding the Tourist Association. 12 Mr Ho Sai-chu.
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MR HO:
Thank you, Mr Chairman. The paragraph on
this particular issue, I refer in particular to paragraph 113 to 118, the holding of the Association's expenditure in real terms in 1982-83. May I ask the Secretary the reason why the Government's stated objective of holding the Association's expenditure in the real terms
to the 1982-83 level has not been achieved?
SES:
Yes, Mr Chairman. As you will know, the Government has over the last few years been taking steps to rationalise and simplify the arrangements for the payment of the subvention. So, for example, in '80-81 the fixed grant was removed. In '80-81 we also 25 took steps to remove the general revenue contribution and that
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contribution was phased out finally in the financial year '85 and '86. It certainly had been our intention to hold expenditure in real terms. There were, however, certain events out of our control which meant that tourist numbers increased quite dramatically. In fact the figures for the tourist numbers increased from two and a half million in '81-82
to three and a half million in '85-86, and at the same time there were
increases in the rates charged for accommodation in hotels. So the 33 amount of revenue grew in excess of a real term increase over that
period. It is, however, the Government's intention, and has been for 35 some time, to review the whole basis of the subvention to the
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Association in calendar year 1987, that is to say once we have cleared