HONG KONG URBAN COUNCIL
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For instance, firstly, the $175,000,000 fitting out costs, we were told at the 11th hour to endorse them; secondly, the JMJ show, and then later the letter of intent, which you, Mr. Chairman, were not aware of. It was later learned that the letter of intent was not a legally binding document, and Members were forced to approve the show. These were instances of unhappy experience. Then in relation to the cancellation of the soccer event for the opening gala, it was cancelled at the last minute and there was nothing we could do.
Recently there was a very successful football match between South China and the Brazilian team attracting about 30,000 spectators and generating a total revenue of over $3 million. If there is a good activity and event, people are willing to pay high admission charges. In view of the above, I feel that perhaps the BOG has lost touch with other members of the Urban Council. Please don't forget that the status of the BOG is similar to that of other select committees, like Markets and Street Traders Select Committee, Recreation Select Committee etc. I have received all papers of selected committees. Why is it that despite our repeated requests, we still fail to gain access to such information. I think there is definitely room for improvement.
Besides, operating the Stadium on the basis of commercial principle and the self-financing policy have given rise to problems. We have already reached agreement with the Central Government in relation to a 3-year financial arrangement particularly the apportionment of rates. It is stipulated very clearly in the agreement that it does not include the operational expenses of the Hong Kong Stadium. In other words, the Urban Council should not be subsidizing any deficit of the Hong Kong Stadium. This agreement would affect the operation of the Hong Kong Stadium. That is the reason why I am suggesting a working group.
I hope that it will be a small one, comprising 5 to 7 members without the presence of the BOG members. This working group will help the Urban Council to review the commercial principles, the relationship between the BOG and the SCWC, between Wembley, USD and the BOG to see whether there is any inadequacy in communication. I remember a BOG member complained to me that the USD did not give adequate information to the BOG. So that is definitely a problem. I hope that by setting up this working group, we will be able to help the BOG to function. I don't want the BOG to be in confrontation with other members of the Urban Council.
I hope that we would review this situation to find out the root of the problem. I hope that we can be frank. I hope that we will all admit that there is a problem. We should not deceive ourselves and think that everything is alright and the operation is going on smoothly. I hope that we should look at the problem openly. I hope that you will support this motion to set up a working party to conduct a comprehensive review.
I am not trying to interfere with the operation of BOG. From the very beginning I am against the idea of the SCWC interfering with the normal operation of the BOG. For instance, we should not interfere with the pricing of executive suites which is the function of Wembley and the BOG. However, when the BOG wanted $5,000,000 for JMJ show, it would have to come back to the SCWC. We did not have adequate information and there was also some misunderstanding in relation to the letter of intent. We were unhappy but I am not asking the BOG to resign. I hope that
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