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the Space Museum, the museums, entertainment, stadium management and public cultural activities and also libraries, a very important service to the community which the member who had just spoken, in fact, played a very important part in as Chairman of the Libraries Select Committee last year. If we are talking about amounts of money spent on things such as the Festival of Asian Arts and subsidizing the Hong Kong Philharmonic and the Hong Kong Arts Festival Society, these three in fact come to $9.3 million, which is only a small proportion of that $53 million mentioned. We also spend about $14 million in upkeeping the Hong Kong Repertory Theatre, the Chinese Orchestra, the Chinese Dance Company and also performances by local artists, which I am sure Members of this Council would all like to support. However, offset against this, we must not forget that we also have gate receipts in the region of $4 million, so it is not true that this large sum of $53 million is only being spent on entertaining a small number of people brought in from overseas. We must look at the detailed figures to appreciate it in its true perspective. Mr. Chairman, I think that no doubt we all must support what you said in the September meeting about getting more money from Government one way or another, otherwise we will have no money to pay our staff within a few months' time after the beginning of the next financial year. I think we must, at this stage, adopt these figures. It is only by this way can we show the public the glaring figures of the deficit we are talking about, so that the public may understand that unless the Government is willing to listen to all the pleas and the suggestions put to it, there will be no alternative but to increase rates. With these remarks, Mr. Chairman, I support the motion.
MR. STEPHEN M. L. LAU (in Cantonese):-Mr. Chairman, the population increase in the last two years has been very rapid in Hong Kong, so I think the Urban Council should have financial resources to meet the basic needs. Secondly, as far as recreation and cultural activities are concerned, the Central Government is also promoting these activities vigorously. If our Council is to cut down on these activities, then we would be accused of being counter productive. Of course, it is unreasonable that we have to cut down our schemes and schedules because of insufficient funds. The third point is that the staff of the Urban Services Department works for the Urban Council. If the Urban Council were to cut down the workload, then we would have staff sitting there with nothing to do, but can the Government just ask the civil servants to resign. Can anyone of us tolerate postponing the construction of markets for over 10 years and allow hawkers to crowd the streets, then I am sure you could not agree to postponement of construction of refuse collection centres etc., so that the streets would be crowded with refuse. I support the motion, Mr. Chairman.
DR. KIM Y. S. CHAM (in English):-I think we should examine the structure of our revenue and expenditure confronting our budget deficit ahead of us. Our major source of revenue, rates, accounts for over 72% of our total revenue. This will only grow by about 5% in the next year. On the other hand, the Council has constantly redeployed and raised productivity levels to make better use of staff. On the account of accusation of over-staff, I think the Council has been constantly aware and conscious of upgrading its productivity. We should welcome any suggestions, specific in nature, to improve our staff utilization and of course, without losing sight of our responsibility in the urban districts. The Council this year has exercised very strict control over increase of its manpower. As a result the increase in staff is about 1.3% in the year. Whereas, when one looks at the salary cost and oncost increases, this increased by something like 30% over our budgeted figure last year. It is evident that the Council has been hard-hit by inflation, and of course, the delay in reassessment of rates. It should be noted while the Council has to meet inflated cost, the Council revenue is not buoyant with inflation like the Government revenue. In supporting the budget before Council, I would suggest that discussions be held with the Central Government on this contradiction which is inherent in our system of revenue and expenditure arising from the impact of inflation.
DR. PHILIP CHI-KUEN KWOK (in English):-Mr. Chairman, the figures that you have just heard my colleague, Mr. Howard YOUNG quoted were results of considerable deliberation from various select committees and also been adopted by the Standing Committee of the Whole Council, so to me, it seems to reflect the overwhelming majority view that these are the minimum expenditure we have to spend and because of that, I would like to support the motion.
MR. CHAN CHI-KWAN (in Cantonese):-Mr. Chairman, I have been a Member of the Urban Council for more than 11 years, coming up to 12 years and ever since 1973, we have had surplus each year, but this year, even if we spend all our reserves we are still $212 million in deficit. Of course, Hong Kong is a long way behind the metropolitan city of New York. Some years ago, the City Government of New York was declared bankrupt because they could not increase some of those charges, so that I think Urban Council is following the footsteps of New York in that direction. Now, how do we find this $212 million, otherwise the 24 Members of this Council will be sued when we cannot pay some accounts, we have to declare bankruptcy, so that in future, if you, Mr. Chairman, order something in your name, it will not be honoured. Since the Urban Council has not got the money because the Government has not re-assessed the property values and because the Government cannot and does not give part of their 71% rates income to the Urban Council, part of the blame should be Government's. Anyway, a budget with such a large deficit is not a good budget. I am sure the Central Government will understand when they receive this budget that we cannot do without the money available so that they have to find a way to give the $212 million deficit to us. Under the circumstances, I support the budget and wait and see.
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