HONG KONG URBAN COUNCIL
483
we do not have much time left. We have only one month and time is not on our side.
From a reliable but unconfirmed source, it has been learnt that the allocation of rates revenue to the Regional Council will be just over $16 billion. Viewed from the population ratio of the urban area and the New Territories (53% against 47%), the allocation that this Council is bidding is on ratio. I feel that we may as well try, but the fact remains a fact. Notwithstanding our continuous effort in substantiating our bid and the wisdom of the Chairman, I still think that government will not fully meet our bid ($22.45 billion).
As such, we should be well prepared and we should prepare for the worst. If the eventual allocation is less than the amount we have applied for and we need to further utilize our reserve fund, I urge Members to take note that we need only to have 2 months' expenditure (around $1.6 billion) in reserve. Basing on information supplied by the Department, if we end up with the final allocation of rates revenue of $18.7 billion for the next three years and we want to fully implement our plans and activities as set out in our Five Year Budgets, there is the danger that this Council's reserve will be used up in the year 1999/2000. You can find this detailed information in the paper CW1159/96,
Faced with this probable financial situation, we feel we should continue our prudent financial management principle of living within our means as well as explore ways to cut expenditure and increase revenue, so that we can sail through the next three years safely.
On the matter of exploring ways to cut expenditure and increase revenue, we can consider the following:
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As mentioned by the Chairman just now, we will try to review the Memorandum of Administrative Arrangement signed with central government in 1973 so that we can handle more flexibly the service charges of different departments such as the Architectural Services Department, the Electrical and Mechanical Services Department, the Government Supplies Department and so on. Information shows that this Council spent around $0.7 billion on this during the past year. We will try to recover our loan to the Hong Kong Stadium by stage. In response to the relaxation of restrictions on exterior wall advertising enforced by government recently, we can consider the same on the exterior walls of the Council's venues and inviting patrons in the urban services bulletin.
We can continue to pursue the so-called BOT pattern as that for the bowling alley within the Fa Yuen Street Complex. BOT refers to the mode of building operation and transfer and we are adopting it for the first time. I think this mode of operation is worth following up on and promoting.
On establishment, I do not want to repeat here what another Member just discussed. In a motion debate of October 1996, this point was
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