Committee have been informed by written PQ that expenditure for 1989/90 will consist of £38 million capital costs and £40 million running costs. Where does £4.5 million fit into this?

- Now have updated figures from Hong Kong Government. HKG expect expenditure for 1989/90 to consist of £48.9 million on capital costs and £54.8 million on running costs.

Increase in capital expenditure (from £38 million to £48.9 million) mainly due to building of a new camp, just approved. Increase in recurrent costs (from £40 million to £54.8 million) due

to continued high levels of arrivals during summer.

The £4.5 million, for which provision made in Winter Supplementary Estimates, was to enable HKG to build emergency accommodation to cope with massive influx of boat people in Spring and Summer. The £4.5 million, which has already been dispersed, was used for hire of ferries, supply of tents and construction of 3 camps at High Island, Sek Kong and Whitehead.

(Subject to Parliamentary approval) Intend to provide further £5.6 million to make various improvements to emergency accommodation under construction (eg to make camps secure and weather proof).

Division of osts between Hong Kong Government and HMG

Since 1979 Hong Kong Government have spent £109 million on boat

people problem and expect to spend a further £90 million on boat people in 1989/90. Since beginning of current financial year HMG have contributed or pledged over £15 million direct to Hong Kong Government for accommodation of boat people in Hong Kong. Have also contributed a further £6 million to UNHCR for expenditure on accommodation in Hong Kong.

BATACM(5)

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