HONG KONG PROVISIONAL URBAN COUNCIL
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would be lost. However, we feel that such worries could be dispelled by means of reform and even tackled by the strengthening of the City Councils' functions. The HKADPL suggests that representatives nominated by the reformed City Councils should sit on some of the statutory bodies or consultative organisations making central policies, such as the Housing Authority, the Urban Renewal Authority, the Hospital Authority, the Transport Advisory Committee and the Social Welfare Advisory Committee. Through this system of nomination, the City Councils would actually be able to participate directly in and influence the formulation and implementation of local policies. In this way, the organisation of district councils could be preserved, and communication with districts, organisations, and individuals could be enhanced. I believe that the functions of the reformed City Councils might dwindle somewhat compared with the existing Municipal Councils, but it would be at a level higher than the present District Boards. This is because the City Councils, through the mechanism of nominating representatives, would still be vested with indirect powers to manage and control the affairs concerned. Not only would the powers of the district organisations not be slashed, but they would actually be reinforced.
Mr. Chairman, I would like to bring up the subject of the finance of district organisations. The financial authority of district organisations is in fact of paramount importance, for the Central Government could exercise control over district organisations in various ways. They include administrative supervision through administrative orders, legislative monitoring by vetoing decisions of district organisations and, last but not least, financial restriction. The Central Government could employ measures in financial control, such as approval of the budgets of district organisations and determining of their revenues, to control or influence the roles played by district organisations or the City Councils. At present, our Municipal Councils have relative financial autonomy. Relatively speaking, they have considerable freedom, and they can carry out a lot of district work and construct a large number of community facilities in a relatively independent manner. Why have I emphasized the word relatively? I believe that you, my colleagues, are aware of the restrictions that financial effects had on us when we bargained with the Central Government over the $3.8 billion cuts. The functions and influence of District Boards are gradually shrinking. We cannot but admit that the Central Government has imposed more financial restrictions on them than on the Municipal Councils. If the district organisations' finances are entirely controlled by the Central Government's fund allocations and if the Central Government decides to 'turn off the water supply', then district organisations would be in a plight similar to that revealed by a dialogue in the film 'Seventy-two Households': 'Where there is money, there is water. Where there is no money, there is no water. Where there is money, there is water supply. When there is no water, everybody disperses.' In that case, the district organisations would all 'disperse'. Hence, the HKADPL suggests that the expenditure of the City Councils should still be partly met by rates, but the proportion should be
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