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I am highlighting these figures to draw your and the public's attention to the sort of increases we have to deal with which are not helped by our now quite unacceptably high inflation rate, which is caused partly by our link to the US$, partly by the extreme labour shortage, and partly by the very high inflation in the People's Republic of China.
This is also the right place to say that last year I wouldn't have been able to give you a breakdown of figures like those which are contained in the Schedules attached to the budget. But now, to give us far better financial control and allow better financial planning, our computerized financial management information system is up and running, and this comprehensive analysis system now provides far better and more effective financial management information which should make all our lives easier and allow both the Department and ourselves to make faster decisions and give us better control.
The bottom line, as I have already said, is a deficit of HK$57 million which will leave our reserves at HK$815 million.
You have all gone through these figures in your various committees and they were finally wrapped up by the Finance Committee in an extra long session, and I believe that this budget is realistic and I do not have to have any qualms recommending you all to accept it as it stands. If you do, then we can quite confidently say that this year and next year we are living within our means.
However, as I already pointed out we cannot say that for the three years following, which will have considerable deficits and will very rapidly eat up our reserves and may even land us in a real deficit situation. Therefore, I want to support very strongly the Chairman's remark that it is about time this Council receives all the rates and not just a percentage. In this connection I want to make it very clear to both the Central Government and to the public that we in this Council go through a heartrending exercise every year balancing our income against our expenditure and that very often we have to forego improvements in service to the public or have to postpone projects and buildings because we haven't sufficient funds. And although our Chairman is far too polite to say so, I think I can stand on the record of this Council over the past 15 years during which this Council has improved the look of the City both in greening it and in cleaning it, has improved the cultural life of the City out of sight, has enabled our youngsters to play in our indoor games halls and on our football pitches, and in our stadiums, and I think I can say that we have, in fact, spent our money as well, if not better, than the Central Government spends theirs!
With these words, which I trust will be listened to on high, I have pleasure in seconding your motion.
MR. HILTON CHEONG-LEEN (in English):—Mr. Chairman, in supporting the motion on the 1989–90 Estimates of Revenue and Expenditure, I would like to make a few comments.
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It is to the credit of the Urban Council, and particularly its Finance Select Committee, that the Outturn Forecast for the 1988-89 period will show an increased surplus of $147.9 million instead of the estimated surplus of $72.2 million in the original approved budget.
However, while the proposed 1989-90 revenue figures will rise by 10.8% to $2,943 million, there will be a possible budget deficit of $57.3 million. It is important that during the 1989-90 budget period, the Council should seek ways and means to economize in a productive way so that at least we will end up with a balanced budget in 1989–90.
I am glad to see that the Urban Council is actively seeking more donations and sponsorship for its many cultural, entertainment, recreation and sports, and other programmes. The 1988-89 revenue for this sub-head is expected to be $3.8 million, while for 1989-90 the budgeted estimate is increased to $11.3 million. I urge the Urban Services Department, the Council's executive arm, to exert every effort to achieve this target revenue of $11.3 million.
I congratulate the Administration Select Committee in its recommendation to change the present tabloid style Urban Council newspaper format to a better quality Urban Council magazine. With the opening of the Cultural Centre next year, the changeover to a good quality magazine publication presenting the Council's numerous and varied programmes will be of immense benefit both to local residents and to overseas visitors alike.
Although the privatization of the Kennedy Town Abattoir is supposed to take place in early 1990, the Urban Council is required to spend $8.934 million between now and 1991 in order to reduce the various environmental nuisances caused to the nearby population. This work is essential to the health of the residents in Western District, and I urge the Urban Services Department to go ahead with the necessary repair works as a matter of urgency.
As regards the recreation activities of the Council, which cover the provision and management of beaches, swimming pools, sports grounds, stadia, games halls, parks and playgrounds, as well as a wide range of activities which include horticulture, District-based Recreation and Sports Activity and Sports Promotion, the 1989-90 budget will be for $447.3 million, which is a 9% increase over the 1988-89 outturn forecast. I believe this increase is fully justified and will expand even further the wide range of recreation facilities and programmes available to residents.
With the increase next year of Council membership by another ten members, coming from each of the ten Urban District Boards, I anticipate that there will be better coordination and maximized use at the district level of what the Council is providing in this area of its statutory responsibilities.
On the cultural front, I am pleased to note that Urban Services Department is recommending to the Culture Select Committee that the upward revision of ticket prices for the Council's Performing Companies for next year should be...