HONG KONG PROVISIONAL URBAN COUNCIL
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with hot and cold water supply. Can you work out how much more we could possibly reduce? Are we aiming at free admission at all?
I wish to point out that the most important point is not the amounts of venue hire charges. Given the present financial situation of the Council, to irrationally freeze or even reduce substantially some irrelevant hire charges would bring about serious disruption and impact on the level and building-up of our basic services, such as markets and environmental hygiene. Is this what we want? Hence, we consider that Ms. CHOW's amended motion has not taken into full account the Council's financial situation, and the quality of services and future building-up that the public need. Hence the Democratic Party raises objection.
The Democratic Party has consulted the Department on the financial implication of the original motion should it be carried. The reply is that we would lose $80m in terms of income, as a result of reductions not only in the existing licence fees and venue hire charges but also in other charges, such as the URBTIX charges and charges from butchers of private abattoirs such as the Kennedy Town Abattoir. $80m represents only 6% of our income and if we were willing to lose this income just to relieve the pressure of fee increases, the public would likely give their support. However, if the Government got the wrong impression from such a move that the Council is financially sound and withheld any supplementary provision, the ultimate victims would be but the general public.
As Members are aware, our present financial situation is such that in spite of all our efforts in saving and developing other sources of revenue, not only would our fiscal reserves be used up but there would also be a deficit of $500m by 2001. No matter which motion is carried today, we could still envisage that our financial situation would further deteriorate. Our overall revenue would diminish, with a consequential reduction in the level of fiscal reserves, thereby causing our interest income to drop and the deficit to grow. Due attention must be paid to the possible consequences. We therefore stress the need to seek supplementary provision from the Government. Because of the cut on the financial provision, 78 capital projects scheduled for the next three years will be affected. Things are still uncertain now. As for our services, without the supplementary provision, it is questionable whether the existing establishment and services of the Urban Council could be maintained. Neither could we provide any new services to meet the needs of a modern society. In other words, we could not keep abreast of the times in our provision of services. Furthermore, given the present economic recession, the projected development for our services would be adversely affected without more funding from the Central Government.
Although the Chairman has ruled against the debate on a motion on rates, thereby depriving us of the chance to present our views, I still wish to take the opportunity to point out that the Central Government has been enjoying a
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