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the Department should look for means of increasing productivity, of saving costs for all services provided by the Council, and of exploring all sources of additional revenue open to it.
Meanwhile on April 1 next the new Regional Council to serve the New Territories will come into being. I know I speak for all Urban Councillors when I say that, the Government having finally decided to have a Regional Council to serve the needs of New Territories residents, we will unreservedly extend the hand of friendship and co-operation to this new body, wish it every success and provide it with whatever assistance it might wish to seek from us.
Turning to those other important institutions of local Government, the District Boards, I am sure that the good relationships fostered between them and the Council have been further cemented by the 'get-togethers' which took place only a few days ago between District Board members and Urban Councillors. I believe that the friendly spirit of co-operation resulting from our ongoing consultative process with all of the urban District Boards augurs well for the future.
This year, 1985, has been declared by the United Nations to be International Youth Year and the Council is observing 1985 accordingly. We have planned a number of special activities to celebrate International Youth Year and we are also dedicating some of our regular activities to youth and to the themes of International Youth Year: Participation, Development, Peace.
The Council, as it begins its 102nd year of service to the public of Hong Kong, must keep under constant scrutiny its priorities to ensure that it keeps in step with the changing pace and face of Hong Kong. Our topmost priority is to make Hong Kong a cleaner, greener, healthier place to live in, and to further expand the cultural, recreation and sports activities in order to create a happier living environment for our people.
It has been suggested that more emphasis should be placed on civic education so that Council activities can be better understood and supported. Perhaps civic education can be even more meaningful when there is actual citizenship involvement in community activities, rather than just listening to lectures on civic education in the classroom.
May I therefore suggest to Councillors that they seek to generate more community participation in Council's work and activities at the grass-roots level so that we can set a stirring example in civic education to all in Hong Kong in this coming Year of the Ox.
Finally, I would like to take this opportunity to say that the Urban Council is fully committed to working for the economic prosperity, political stability and social progress of Hong Kong. We will not slacken in our pace to do everything within our capability and statutory responsibilities to improve the living environment of Hong Kong people and to plan for a Hong Kong that will hold its own as one of the great cities of the world well into the 21st century.
I so move.
(Mr. Edmund W. H. CHOW arrived at this point—2.38 p.m.)
MR. H. M. G. FORSGATE, VICE-CHAIRMAN, URBAN COUNCIL, seconded (in English):—Mr. Chairman, you mentioned the coming of spring, but I find it quite wintry-like in this Chamber, I think we have got the air-conditioning on the wrong way. (laughter) In seconding your motion that this Council endorse The Statement of Aims for 1985, I would like to point out that achieving these aims in the years ahead will require the Council to find much more money to build, staff and run, both future and present facilities.
As Chairman of the Finance Select Committee, it is my duty to remind the Council once more of our financial situation. We will scrape through this financial year, ending on 31 March, with a modest deficit of $32m, as compared with the original approved budgeted deficit of $196m. No great cause for self-congratulation, as the bulk of savings came from under-spending on capital works, although tighter financial control, improved management and operational efficiency measures adopted by the Department did play their part.
So we will enter the 1985-86 financial year with our reserves more or less intact, but heading for a drastic reduction from the present $289m to about $77m by the end of that financial year. This will represent less than half of one month's expenditure. Furthermore, based on current projections for the five-year period ahead, we are headed for a sustained period of deficit budgeting unless and until we can achieve a more substantial income base than at present.
The major portion of our revenue is derived from our share of the urban rate which is currently set at two-and-a-half percent, following the revised new rateable value of property introduced in April 1984. The immediate benefit is an increase in income of about $115m. Although this increase, together with yield from rates to be collected from new properties, will not be sufficient to meet the effects of inflation on our financial resource requirements, let alone taking on the heavy expenditure envisaged to operate the new, large facilities in this Statement of Aims. For example, the Cultural Complex in Tsim Sha Tsui; the Museums of Science and Technology and Art. Plus several minor complexes, but significant in running cost terms, such as Western Market, Lockhart Road, Ngau Chi Wan, all under construction at this present time.
Where is the money to come from?
The Government, in the formidable shape of the Financial Secretary himself, has told us in no uncertain terms, that apart from a mini handout to cover the cost of the Recreational and Sports Service personnel we have agreed to take on board, we are on our own, financially speaking. No more waving of magic wands. As he quite correctly pointed out, the Government is in a bind for money too.
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