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MR. CHAN (in English):- Mr. Chairman, if the transfer is really illegal, do you think this should come under the jurisdiction of the Police?
DR. HU (in English):- I reaffirm what I have said.
MR. PETER C. K. CHAN (in English):- Mr. Chairman, on this question of whether these transfers are legal or illegal, I wonder whether we can do something about it. May I ask that this question be referred to the Select Committee for further consideration by the Principal Crown Counsel, or that Counsel be invited to attend and advise us accordingly.
DR. HU (in English):- Yes, we will.
MOTIONS
(1) THE CHAIRMAN, URBAN COUNCIL moved the following motion (in English):-
"THAT the Estimates of Revenue and Expenditure for 1978-79 and the list of works which the Council proposes to undertake during the next financial year be approved for transmission to the Governor in accordance with Section 39 of the Urban Council Ordinance."
He said the Council makes a very early start each year in the preparation of its annual budget. Indeed, it does so for the ensuing period soon after each new financial year begins in April. This exercise is done step by step. The procedure involves all select committees and brings all members into play. The law prescribes the end of November as the deadline for its completion. The Council is pleased with the hard work put in by the department, in particular the accounts section, to present these statements for formal consideration in good time.
There is rightly a continuing concern with the way the accounts are cast. To arrange them for all to grasp their significance at a glance is a game not without its own esoteric rules. This budget introduces some new titles and also re-groups various items conveniently. This action is intended to make the purpose of each account more easily understood by the ratepayer. Sometimes there are obscure headings for reasons perhaps lost in bureaucratic traditions. Anyway, some are clear in meaning only to the initiated. And, they tend to perplex the layman, here and outside. Assuredly, by accident and not by design.
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In 1978-79, revenue will amount to $464 million in round figures, made up of rates in the main, together with a multitude of fees, charges and other secondary sources, all closely related to municipal services or the use of public facilities for myriad purposes. Estimated expenditure is to be just more than $531 million. There will thus be a deficit of nearly $68 million on paper, again the exact extent depending on the completion of building projects.
While rate revenue, even at the reduced 4%, is rising very gradually, still it barely keeps pace with staff costs, inexorably on the upward trend. Indeed, rate yield will go up by $32 million but, with salaries and allowances also mounting by $24 million, there will thus be only $8 million left over for other purposes. And, the Council has no part in valuation of property on which the rate is assessed. Thus, the Council collects only what falls due as its minority share. On the other hand, within reason, the Council is able to set the level of its secondary revenue. A progressive revision has taken place in the last four years to bring them in line with the cost of such services, where justified. For, there should rightly be no hidden subvention, particularly for those who use public facilities for the making of private profit. Of course, it is only fair to the public in general for the Council to press on with this accounting exercise of finding out what the charges should actually be in relation to costs of service. Then, armed with this knowledge, it will be free to determine, by collective judgment, how much should properly be recovered for the use and enjoyment of such services and facilities, and how much too should be actually absorbed by the Council for an agreed beneficial public purpose.
Expenditure consists heavily of staff costs. In fact, $308 million out of $442 million, not counting the perhaps optimistic building programme of $89 million. Therefore, with recurrent operational expenditure of $93 million, there will only be a relatively minor part of revenue available for new equipment, projects and activities amounting to $42 million in all. A pity, in fact. So much more could be done to make conditions more pleasant and life more enjoyable for the people were there more free money for new enterprises. Still, the Council is forging ahead in many directions. Yet, it could do much more if given more resources.
In the first four years the Council accumulated $146 million surplus funds. The current year is again likely to do just better than break even, depending on precisely what construction work is completed by the end. But, if the Council is to hasten building works by recourse to private practice as may now be expected, it may be in the red in
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