HONG KONG URBAN COUNCIL
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projects. They are satisfied with such a percentage. We are paying 16% to the ASD, but we may not get the best service.
I have surveyed to see if other public bodies also pay 16% on-cost. Not for the Housing Authority, because there is no need for it to commission projects to the ASD. The Hospital Authority can get the ASD to handle projects for it, but there is no need to pay on-cost. When the Education Department builds a school premises, adviser's fee is included in the construction fee and the percentage is not 16%. As such, there is no basis for setting the percentage at 16%.
On the other hand, 16% was not clearly specified in the Memorandum of Administrative Arrangement. It was only mentioned in Appendix B to the Memorandum. At that time, the 1973/74 rates percentage for the Urban Council was fixed at around 16%. I hope you all note that the total cost of our projects at that time was $10 million and 16% was $1.6 million whereas our projects of last year totalled $900 million which is many times more and 16% is no longer a reasonable figure.
Besides, I very much hope that this percentage can be derived on the strength of the size of projects. We can see that for small decoration projects like the replenishment of a toilet, 16% was charged. For a large construction project which involved a lot of co-ordination work, again 16% was charged. Can we apply different percentages on projects of different scales? We should negotiate with the ASD. In the course of negotiation and devising criteria, I would like to see consideration be given for deduction of some committed on-cost when there are overspending or other situations. I believe that can be negotiated.
Mr. Chairman, I think we cannot afford to wait any longer for improving project delays and reducing cost. I think we should take the initiative to win back the power of discretion. In fact, outsiders have the impression that UC capital work projects are slow and expensive. We should change that impression as soon as possible and put the money so saved, not aside, but on more UC projects so as to further enhance the quality of our services to the public. I sincerely hope that Members will support my motion. I hope that after the motion is carried today, we can proceed as soon as possible to negotiate with the ASD on the two suggestions raised by me. Mr. Chairman, with these remarks, I so move.
MR. CHRISTOPHER CHUNG SHU-KUN (in Cantonese): I second Miss WONG's motion.
In fact, the purpose of this motion is for Members to know that we are paying to the ASD an amount above the average market price in respect of many of our capital work projects. We are like a wealthy man who is blind, deaf, mute and with his limbs tied. We pay charges for our works as requested with no bargaining power at all. We cannot argue that such a rate is not the
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