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Markets and Street Traders Select Committee, Public Health Select Committee and BOG of the Hong Kong Stadium for follow-up.
Mr. Chan CHOI-HI (in Cantonese):—Mr. Chairman, your answer to my supplementary question was really too general. I had specifically referred to the recent reduction in rates revenue (as revealed in the recent budget proposal) which was a new circumstance. My question is actually how this Council reacts to the new circumstances? Will the Council make a fresh review on what to do to get hold of resources to complete five-year plans against a further reduction of $1.8 billion? That was my question, a very specific one.
Chairman (in Cantonese):—Yes. When we received the question, we did not yet know of the rates reduction of $1.8 billion. There will be an item on the agenda of the next Standing Committee of the Whole Council meeting (16 March) on how to make suitable adjustments in response to the cut of $1.8 billion of rates allocation. So, there is no need to reply to this question. There will be a paper to discuss this at the SCWC on 16 March.
THE HON AMBROSE CHEUNG WING-SUM (in Cantonese):—Mr. Chairman, concerning the cut of $1.8 billion, permit me to ask if you would consider asking the Department for information. When we negotiated with the Finance Bureau for an additional provision of $1.5 billion, the Bureau said that there were many assumptions favourable to this Council's finances such as salaries and inflation in our 3 year financial forecast. Our response at that time was that there were in fact many factors and assumptions unfavourable to our finances, such as the series of rental freezes and reductions during the economic low. I felt at that time that the most important thing was to have information on the actual expenditure of two past years out of the three year period as well as a forecast for the third year. Based on assumptions, we can reflect to Government from the level of forecast to that of actual expenditure. So that Government will know that we do not have much reserve left. After this step, we can proceed to supply basic information and follow up discussion on the strategic concerning the $1.8 billion of reduction. I wonder if the Chairman will take this stand?
I would also like to follow up the issue of BOG of the Hong Kong Stadium. In fact, we endorsed an 18 month plan (up to 31.3.2000) in September 1998 in respect of the direction of the Stadium's management.
Chairman (in Cantonese):—About finances. Mr. CHEUNG as a member of the relevant Select Committee knows about negotiations with the Secretary for the Treasury. We said that the rates allocation was inadequate and we discussed about the application to allocate $400 million from the returned rates amount to the Council. In fact, the reduction of $400 million carried by this Council represented a 2.6% decrease in our rates income. Now the additional sum of $1.8 billion came as a surprise. It would mean cuts on our budget. We first
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