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HONG KONG URBAN COUNCIL
An important meaning of democracy is to go by the majority which is essentially a combination of many different minorities. Each of us belongs to some minority on certain questions, so true democracy must respect all these minorities in order to safeguard the interests of the whole.
Of the Urban Council's many responsibilities, I am more familiar with cultural affairs. In the promotion of culture, it is important to cater to the needs of various minorities. We should not only organize more activities of good quality popular with the majority of the people, but also those for which there is also a need, though not to the taste of the masses.
Also, we must adopt a policy of diversification in the promotion of art and culture. In this respect, the Urban Council can properly take pride in its achievements over the past 20 years. I consider that the Council should in future pay more attention to creative work to afford more opportunities for the artists of Hong Kong to show their talents.
With these words, Sir, I support the motion.
Mr. Lawrence H. L. FUNG (in English):-Mr. Chairman, I too have been saying in the Standing Committee of the Whole Council and Finance Select Committee meetings for quite some time now, that we should re-examine both the revenue and expenditure sides of our budget.
The recent reply Council received from the Financial Secretary makes this task of re-examination even more urgent and necessary.
There is no question that a balanced budget is desirable from all points of view. Unfortunately, in attempting to balance the budget, there are many factors both on the expenditure and the revenue sides, that are variable and beyond the control of the Council, although the Council is supposed to be legally and financially autonomous. Let me dispel one or two myths of our budget, of course, I can go on longer if members would like to stay on, but that is begging the question.
On the expenditure side, very few members of the public and may be even some Councillors, my fellow colleagues, do not realize that one of the biggest items of expenditure is Personal Emoluments of the Urban Services Department. This is, in fact, a Government department and the staff are Government employees. The USD is structured along Government department lines, and the staff are paid Government scales of salary and benefits. Since financial autonomy, this item of Personal Emoluments has been rising unremittingly. To put it bluntly, it is one item of expenditure which Urban Council really has no control over.
On the other side of the balance sheet, on the revenue side, one of the myths that we cannot afford to increase rates. As mentioned earlier, rates is by far our single biggest item of revenue. Many members may not realize and the public might have forgotten that several years back, the rates percentage charged by
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Urban Council was 6% and not 24% as of today. In fact, it was the Urban Council, who voluntarily reduced the rates to the present level of 24% in order to reduce the financial burden of the taxpayers. Now the rates percentage charged is based on ratable value and the ultimate authority: in assessing rateable value is the Government. They have delayed the exercise of rateable value several times for various reasons, which therefore, has substantially affected the actual dollars and cents amount that we collect, whether it is 6% or 21% from the taxpayers. Surely, whether we should increase rates or not, are connected to some very basic questions, i.e. whether if we ask for a rates increase, such an increase will be justifiable. Secondly, whether the money that we have received from the public, Council has spent it wisely and efficiently. To me, the answers to these questions are resounding 'yes'.
Many of the services, if not all, provided by Council to the public are essential services, such as garbage collection and even culture is essential for the minds. All of the services we provide are for the direct benefit to the people of Hong Kong, therefore, what we need to do, after this open meeting, is to start examining all aspects of Urban Council finances, be it from a revenue side or the expenditure side with a fine toothcomb and attempt to balance what is desirable from a political point of view with what we can afford in the light of circumstances.
Mr. Chairman, I support the motion before Council.
MR. PAO PING-WING (in Cantonese):--Mr. Chairman, as the last speaker, I feel that I am the most appropriate person because I am usually rather loud and, therefore, I will be able to keep people awake.
A more challenging year
For the Urban Council, 1985 will be an extremely challenging year. The Municipal Services Branch will come into being shortly. How should the work of the Urban Council and the new central government branch be co-ordinated? How are we going to get along and co-operate with the new regional council after its establishment? The hawker problems have long been a cause of great concern and should the hawkers, under conditions that public health, safety and convenience would not be affected, be tolerated? And how? The Urban Council should not only continue to provide reasonable services, but also formulate far-sighted plans for maintaining Hong Kong as an outstanding international city in the future. But how are we going to do it financially? These are the problems we shall face during the year and need to tackle wisely.
Urban Council and the Municipal Services Branch
As municipal services will be provided separately by two regional councils in the future, it will be necessary to have a central government body to co-ordinate their work. But the Urban Council is a financially autonomous body with the power to formulate independent policies and make decisions (in principle, the future regional council should be in the same position). My
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