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HONG KONG URBAN COUNCIL
ADDRESS BY CHAIRMAN
CHAIRMAN (in English):-It is now 4.00 p.m. and I will call the meeting to order.
MINUTES
The minutes of the meeting held on 9th April, 1974 were confirmed.
STATEMENT BY CHAIRMAN
CHAIRMAN (in English):-Our annual accounts for the first year ended 31st March, 1974 show a surplus of $62.13m, subject to audit. This was anticipated when we adopted our budget for the ensuing year in November 1973.
Disregarding the $20m grant, there was an actual cash surplus of $42.13m on our operations. This was due mostly to our inability to spend on capital projects and other programmes apart from a budgeted surplus of $20.82m originally.
It is significant, however, that we spent $5.42m more on personal emoluments though the Urban Services Department was under strength by 1,385 out of a total establishment of 14,842. Our commitment on this account represented 70.70% of our total budget on expenditure so that at the end of the year we actually spent 78.40% on personal emoluments.
This is a very high proportion of our recurrent funds. It is a worrying situation in inflationary times when inevitably this Council will face heavy increases in salaries and wages.
Side by side with the increased bill we paid on this account, our revenue rose by only $893,531 from rates or of 1 per cent of the budget. Indeed, income from all sources increased by $6.03m or approximately 2.4%. And, let it be noted, the biggest factor was interest which accrued from our cash deposits.
Consequently, Council should realize that, unless circumstances change very much, our income is not going to keep pace with expenditure, more so when, as expected, the construction of our capital projects will get under way in 1974-75 and we would be drawing on our cash to pay for them quicker than our ability to replenish our present reserves.
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We would do well, therefore, to examine all proposals to spend money even much more carefully than we are doing now. Priorities must be fixed, without doubt. And, if a scheme is good, but not directly necessary for the performance of our functions or the improvement of our ability to serve the community, we should think of enlisting outside assistance or go on joint account with interested sponsors.
At the same time, let us continue the exercise begun in our first year to examine other sources of income and exploit within reason existing opportunities. Otherwise, our ability to expand progressively the scope of our service or even to improve the standard of performance of our present functions will be gravely impaired.
Without putting our finances on a proper basis, as we have been trying to do, and giving the subject due attention, it may be said that all our ambitious plans to raise the quality of the life of our people through the activities for which we are responsible, will come to naught.
PAPER
The following paper was laid on the table:-
Reports to the Urban Council by the Director of Urban Services and Secretary, Urban Council, for the month of April 1974.
QUESTIONS
(1) MRS. E. ELLIOTT asked the following question (in English):-
The question of enlarging the size of Newspaper Pitches to a more realistic one has long been argued, but no decision has been taken. Since many hawkers are summonsed to court and magistrates have to apply this unrealistic regulation, could the matter be decided at an early date?
MR. HENRY H. L. HU, CHAIRMAN OF THE HAWKERS SELECT COMMITTEE, replied as follows (in English):-
Mr. Chairman, the question of enlarging the size of newspaper pitches was discussed at the last Hawkers Select Committee meeting on 17th April, 1974, when it was noted that newspaper hawkers trading from a pitch greater in area
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