630
HONG KONG LEGISLATIVE COUNCIL-13 January 1988
'(j) the Financial Secretary may expend moneys from the works accor
for-
(i) the purposes of the Government's public works programme;
(ii) the purchase and installation of equipment consequential on im-
plementing the public works programme;
(iii) the development, purchase and installation of major equipment
systems used by the Government;
(iv) capital subventions; and
(v) the acquisition of land,
in accordance with such conditions, exceptions and limitations as may be specified by the Finance Committee;'.
He said: Sir, I move the motion standing in my name in the Order Paper.
Over the next few years, the Administration will implement an improved system of internal financial management to facilitate the on-going process of determining priorities in recurrent and capital expenditure within overall financial constraints. An essential feature of this system is the block allocation of financial resources to individual policy areas so that relative priorities may be determined within each sector.
To facilitate implementation of the system, it is necessary that a clear distinction be made between recurrent expenditure and capital expenditure. To date, certain major Capital Account items have been funded from the General Revenue Account. From the beginning of the next financial year, I propose that these items be transferred to the Capital Works Reserve Fund Account.
The financial implications of the proposed transfer are neutral. The change will increase annual expenditure under the Capital Works Reserve Fund by about 10 per cent. This will be offset by a corresponding reduction in the General Revenue Account expenditure. The arrangements proposed have been approved by Finance Committee.
The purpose of this motion is to amend the resolution passed by this Council on 15 May 1985 for the setting up of the Capital Works Reserve Fund. The transfer will be reflected in the draft Capital Works Reserve Fund estimates for 1988–89, and take effect from 1 April 1988.
Sir, I beg to move.
Question proposed, put and agreed to.
First Reading of Bills
MARINE FISH (MARKETING) (AMENDMENT) BILL 1987
TRAMWAY (AMENDMENT) BILL 1987
Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).