HONG KONG LEGISLATIVE COUNCIL
香港立法局。 -一九八九年七月十九日
19 July 1989
19
SECRETARY FOR HEALTH AND WELFARE: Sir, my understanding from the Director of Hospital Services is that all hospitals which administer general anaesthesia are now equipped with oxygen monitoring devices, though not all are yet able to meet the recommended standards of provision in full. However, I understand that many hospitals are now placing orders for more machines.
Written answers to questions
Fiscal reserves
4. MRS. LAU asked: Will the Administration inform this Council of the total amount of the fiscal reserve maintained in Hong Kong as at the end of June 1989, how it is being invested and whether the Administration intends to periodically report to the general public on the state of the fiscal reserve or publish the accounts relating to the same?
FINANCIAL SECRETARY: Sir, because of the time necessary to close the monthly accounts, the latest figures available are as at 31 May 1989. The accumulated fiscal reserve at the end of May 1989 was $63.9 billion. Some of this is placed on deposit with banks in Hong Kong to cater for the more immediate cash requirements of government expenditure, but the bulk, $52.7 billion, has been transferred to the Exchange Fund in return for debt certificates. These debt certificates are interest bearing and the interest rate payable by the Exchange Fund to the General Revenue reflects the level of interest rates in the wholesale money market.
The Exchange Fund confines its investments to low risk marketable financial instruments and bank deposits denominated in the major international currencies. It also has a modest portfolio of Hong Kong dollar denominated debt including shareholdings in Hong Kong Telecommunications, the Cross Harbour Tunnel and HACTL. Any foreign exchange or interest rate risks involved are borne by the Exchange Fund and not the General Revenue. If the investments of the Exchange Fund attract a higher or lower rate of return than the interest rate paid to the General Revenue, the profit or loss is for the account of the Exchange Fund.
This arrangement, which has been in place for a number of years, ensures a stable rate of return on the fiscal reserve for the benefit of the General Revenue and relieves it of any foreign exchange and other investment risks that might