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However, in view of the current economic climate, the Urban Council has no intention to seek an increase in the rates even though our reserves are expected to be severely depleted. This situation will be reviewed when the time comes to prepare the 1984–85 Budget.
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The latest revised estimate of the Council's approved Capital Works Programme for the 5-year period in 1982-83-1986-87 now totals $2,363 million including the 16% on-cost charged by Government. Many of these projects are already under construction or at an advanced stage of planning. In addition to the Council's Capital Works Programme, Government financed projects for additional Urban Council's facilities over the next five years are estimated to cost $848 million. Therefore, as between Government and Urban Council, there will be a total of $3,211 million capital works to be spent over the next five years, an indication of the Urban Council's long-term commitment towards providing more and better environmental, recreation and cultural facilities for the people of Hong Kong.
It will be noted in the 1983-84 Budget that personal emoluments and allowances will be $910 million which after very careful pruning has been limited to an increase of 5% over the previous year. The emphasis has been on a continuous monitoring for increased efficiency and higher productivity. I would hope that we will not go above this 5% maximum unless there is a strongly justified case for any additional increase during the year in any specific area of Council's responsibilities.
Bearing in mind the Council's close links with all ten urban District Boards, there will be increasing pressure on the Council to provide more and better facilities and services which would in turn lead to additional financial and manpower commitments and expenditures. The Urban Council within its resource capabilities will do the best it can.
I so move.
MR. H.M.G. FORSGATE Seconded (in English):-Mr. Chairman, in rising to second your motion, you've outlined a very formidable programme with a depressing sting on the tail, it may be useful to remind ourselves of our rather unhealthy financial situation at this time last year. When you will recall that, as a result, of hefty pay awards to the Civil Service in successive years, the cost of personal emoluments alone exceeded income from rates and we were faced with the prospect of a deficit of some $547 million by 31 March 1983. And how the 'good fairy' in the unlikely person of the Financial Secretary waved his magic wand and Legislative Council voted an increase in our share of the rate, thus enabling us to achieve a modest surplus, and maintain our reserves at the level to sustain our capital projects expenditure programme.
This year's salary award plus an increase in on-costs referred to in your speech and other charges will wipe out half our reserves in the year ahead even if we exercise strict control over the cost of expansion. This is easier said than done.
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Because the public, and especially the younger age groups, are looking forward to a rapid improvement in recreational, entertainment and cultural activities. The District Boards, in response to public demand, are impatient at the length of time taken to provide more facilities, and Councillors on District Boards are well aware of this pressure.
Many capital projects financed by this Council and Government are now coming to fruition and to emphasize our problem in restraining recurrent expenditure. Mr. F. K. Hu has just mentioned some of the important and highly significant new venues for entertainment which will soon become fully operational. He mentioned the Hong Kong Coliseum and the Ko Shan Theatre, but then in addition, there are a number of other activities coming on stream, for example, the Museum of History in Kowloon Park and the quite substantial complexes at Aberdeen and To Kwa Wan, which will include recreational, entertainment and library facilities, and of course the conversion of Flagstaff House to a Teaware Museum. These are a formidable list but there are also many other less significant, but nevertheless vital projects to our cleansing and hygiene side of our responsibilities, such as the many off-street collection points under construction.
The manning and energy costs of all these additions to our expanding facilities will be very significant as it is essential they become fully operational on completion and while instructions have been given to keep to a 5% growth in the Urban Services Department, even though this will entail restricting the expansion of a number of other planned activities.
However, as you said, Mr. Chairman, we must make every effort to follow the lead given to us by the Government in this difficult year and work together with the Department to achieve every possible economy.
In conclusion, my thanks to the Chief Treasury Accountant and his staff for their presentation of this Budget and the speed in which they put it all together following Select Committee deliberation and acceptance.
I second the motion before Council.
MR. HOWARD H. W. YOUNG (in Cantonese):-Mr. Chairman, the estimate we discussed has listed the deficit for the next year as some $206.6 million. I can recall that this is not the first time that we have estimated a deficit. In the past, the projected deficits were in the region of between $200 million to $500 million. But very often, a surplus has been the result. The reason for surplus was mainly because of a delay in Capital Works Projects which leads to a delay in paying out money. For this year, the deficit can again be changed to surplus. The main reason for this year's surplus is that Government has increased our rates percentage so that our deficit has been greatly reduced without increasing the burden of the man in the street. I hope that the Central Government's support is an indication of recognition of the efficient management of the Council and also
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