CHRISTINA CHOW: DOES IT MEAN THAT THE CHINESE HAVE THE FINAL SAY IN HIS MATTER THEN?
THIS.
GOVERNOR: AS I SAID EARLIER, THERE IS NO VETO WRITTEN INTO
MICHELLE CHAN (MING PAO): SIR DAVID, WHEN THE HONG KONG GOVERNMENT FIRST PUT FORWARD THIS AIRPORT PROJECT, THE GOVERNMENT INTENDED NOT TO CONSULT THE CHINESE GOVERNMENT, BUT UNTIL THE CHINESE GOVERNMENT VOICED OUT THEIR DISAGREEMENT AND THEN WE ENCOUNTERED A LOT OF DIFFICULTIES IN THE NEGOTIATIONS BETWEEN THE TWO SIDES. AND SO DO YOU CLAIM THAT THE HONG KONG GOVERNMENT HAVE COMMITTED SOME MISTAKES IN THE PROCEDURES IN FORMULATING THE AIRPORT PROJECTS?
J
GOVERNOR: WELL AS I SAID EARLIER, YOU KNOW THE WORLD IS FULL OF 20/20 HINDSIGHT EXPERTS AND PEOPLE WHO WOULD SAY: WELL YOU SHOULD HAVE DONE IT LIKE THIS, YOU SHOULD HAVE DONE IT A DIFFERENT WAY. MEAN HAD WE ENGAGED IN A MASSIVE CONSULTATION PROCESS BEFORE OCTOBER 1989, I AM SURE THERE WOULD HAVE BEEN SOME PEOPLE WHO WOULD HAVE SAID: YOU SHOULDN'T HAVE DONE THAT. IN OCTOBER 1989 WHEN WE TOOK THIS DECISION, THE CHINESE WERE AWARE OF WHAT WE WERE DOING. AS I'VE SAID, IT WAS WIDE PUBLIC KNOWLEDGE AND WE HAD NO REASON TO BELIEVE THAT THIS WAS GOING TO CREATE DIFFICULTIES. WE HAVE SINCE THEN FACED VERY PRACTICAL DIFFICULTIES AFFECTING THE WAY IN WHICH PRIVATE SECTOR INVESTMENT WOULD TAKE PART OR WOULDN'T TAKE PART, AND WE HAVE HAD TO TRY TO MOVE TO SOLVE THOSE DIFFICULTIES. IT HAS TAKEN A LONGISH PERIOD OF TIME AND SOME VERY DIFFICULT DISCUSSIONS TO DO IT BUT NOW WE'VE DONE IT.
KAREN CHENG
FIRST ONE WILL BE: GOVERNMENT BUDGET
(COMMERCIAL RADIO): I HAVE TWO QUESTIONS THE WHAT WILL BE THE FINANCIAL IMPLICATIONS SHOULD THE SINCE YOU HAVE TO LEAVE 250 MILLION RESERVE AFTER WILL THERE BE ANY RESTRICTION ON GOVERNMENT SPENDING FOR THE NEXT YEARS?
1997
GOVERNOR: WE ARE AIMING TO LEAVE 25 BILLION BUT THAT IS SOMETHING WHICH IS MANAGEABLE. ONE DOES, UNDER ANY CIRCUMSTANCES, WANT TO HAVE A SUBSTANTIAL AMOUNT OF MONEY IN THE FISCAL RESERVES IN ADDITION TO WHAT IS IN THE LAND FUND AND THE FINANCIAL EXPERTS BELIEVE THAT THIS IS MANAGEABLE AND PRUDENT. NOW OF COURSE, YOU KNOW I CAN'T SAY THAT THERE WILL BE NO RESTRICTION ON GOVERNMENT SPENDING BECAUSE GOVERNMENT SPENDING ALWAYS HAS TO BE CAREFUL, IT ALWAYS HAS TO BE RESTRICTED, THERE IS NOT A LIMITLESS SUM OF MONEY. WHEN YOU GET TO A CERTAIN POINT YOU DON'T HAVE THE ADDITIONAL MONEY TO SPEND SO YOU HAVE ALWAYS GOT TO BE CAREFUL.
KAREN CHENG: SO WILL THE COST OF THE PROJECTS, ESPECIALLY THE CORE PROJECTS, GO UP SINCE WE HAVE JUST LESS THAN SIX YEARS TO GO?
GOVERNOR: WILL THE COST OF THE CORE PROJECTS GO UP?
KAREN CHENG: YES.
GOVERNOR: I SIMPLY DON'T KNOW. THERE IS ALWAYS THE INFLATIONARY PROCESS BUT THE COST OF ANY PROJECT DEPENDS NOT JUST ON INFLATION BUT THE COMPETITIVE ENVIRONMENT. AT THE MOMENT THE CONSTRUCTION INDUSTRY IS VERY COMPETITIVE AND THE SORT OF BIDS THAT
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