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HONG KONG URBAN COUNCIL
make suitable arrangements in a businesslike manner to give satisfactory service to the Council as we pay them adequately. Anyhow, the rate of completion is too slow; in consequence, the community loses out.
Even so, in our first three years, we completed one hundred such construction jobs, mostly minor but essential ones. In the current year, another 52 schemes have been finished, a good number made possible by our timely switch-finance arrangement with the Government, while 40 are under construction with some 208 more approved by the Council. There are still more works in the offing. Therefore, to ensure that the public will not be further deprived of the use of long-needed amenities, we must review our working arrangement with the Public Works Department when we ought to insist on a time-schedule to which they must adhere within reason. Of course, any protracted delay in tackling our projects means in practice that the rate-payer will also have to pay constantly higher construction costs.
Commitment
It is clear that, with such a vast construction programme to make good the deficiencies of the past, and these projects are indispensable if we are to do our work properly as well as to step up our activities in the community's interest, we will need many more staff. So our pay-roll will take up a good part of the leeway we now have in our finances. Moreover, when the many projects now in hand are completed, heavy payments will be made on capital account and for the equipment they will need, while new recurrent expenditure will be incurred inevitably if all the new buildings and other facilities are to be put to best use, which must be our endeavour.
Reserves
Thus, all in all, promising as the position may seem to be in the coming financial year, the increase in rate revenue is likely to be marginal in the years following, until the Government enters into a new round of rating valuation. I trust this will not be done for some years, even though our public expenditure is going to augment very quickly. Therefore, our strong advantage may only be temporary and deceptive. If so, it would be prudent to set aside substantial reserves to meet committed capital expenditure so that the Council's future would be free of financial encumbrances by preparing for the time when we might need all our annual revenue to cover sharply higher recurrent expenditure for sure. It is not our intention ever to borrow nor are we likely to find it easy in hard-headed Hong Kong to raise funds in the open market if we must do so. All the more so, then, must we live within our means, however out of fashion it may be nowadays for cities of our size and importance not to go into debt.
HONG KONG URBAN COUNCIL
Other Possible Courses
Now, because we are in surplus for the present, should we then not take over some major projects which continue to be the responsibility of the Government under the Memorandum of Administrative Arrangements? We have already done so with some minor works in the switch-finance scheme with the Government which expedited the construction of essential projects in the recent recession when costs were lower. More might now be considered in order to speed up the building of other important projects the community lacks.
Otherwise, we could perhaps resort to cutting our percentage rate voluntarily. If so, on what terms? The Council would naturally like the benefit of any such reduction to accrue to the mass of the people. A selective exercise in favour of lower-income families might not be easy to do in our circumstances even if it had been proper. While a cut across the board would be putting some of the money back into the pockets of the rich who would not need it and certainly should not get it. In any case, the less fortunate members of our society should have first-claim on the benefits which an affluent economy could give through the Council's work.
Be that as it may, there could be no good social reason for the Council to salt away money just for the sake of doing so. It is the people's money. And so, it has to be used conscientiously for the public good. If the Council is unable to do so, or to justify its capability in this direction, then serious thought must be given to the eventual disposal of the surplus in a way of benefit to the community. Of course, in the last resort, we could always give it back to the rate-payer. But, again, would it be beneficial to the small man for the Council to do so out of hand?
Let us, I suggest, first put into practice our many schemes intended for the good of the people. Also, together as a team, find new ways to serve the community. In sum, however we do it, whether in terms of more and better service, or by just cutting the rate, let us give the money back to the people in all fairness.
DR. HU (in English): -I have the pleasure in seconding the motion.
MR. H. M. G. FORSGATE (in English):-Mr. Chairman, speaking, of course, as an Urban Councillor, not as a rate-payer, it is gratifying to know the anticipated 85% increase in rates, which will total some $241 million, which will transfer the substantial deficit anticipated at the end of the 1977-78 financial year into a surplus of some $146 million which, together with our other liquid assets, escalate to $260 odd
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