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learnt of the $1.8 billion of reduction one or two weeks ago. We need to discuss in details. A letter from the Secretary for the Treasury asking this Council to direct the Department for conducting an evaluation of the effects of the cut was received. The evaluation will be explained to the SCWC on 16 March. At present, we can just manage to balance our budget. Now that an additional cut of $1.8 billion is a certainty, we need to wreck our brains again to strike a balance.
(4) Ms. ADA WONG
ADA WONG YING-KAY asked the following question (in Cantonese):—As regards the matter on arrears of rent in the Council's cultural, recreation and sports venues, I have the following questions:
(1) At present, are there any cases of arrears of rent among food premises or other tenants in the Council's cultural, recreation and sports venues?
(ii) If yes, please list out details of the arrears of rent in the cases concerned, e.g., the outstanding amount and the month(s) of payment in question.
(iii) What existing policies or measures does the Department have for recovering the rent in arrears from defaulters?
(iv) Regarding the case of a restaurant in the Hong Kong Stadium in arrears with the rent, what counter-measures has the Department taken and what are the follow-up actions being taken at present?
Mr. Chiang Sai-cheong, Chairman of the Finance Select Committee, replied as follows (in Cantonese):—About parts (i) and (ii) of the question, as at the end of February 1999, no cases of arrears of rent among food premises or other tenants in the Council's cultural venues had been recorded. As regards cases of arrears of rent in the recreation and sports venues, details are listed in the table attached.
About part (iii) of the question, the Department has established policies and procedures to recover the rent in arrears. The general procedures for recovering the arrears of rent are as follows:
• If a contractor fails to make the rent payment within 7 days after the date specified in the demand note issued by the Accounts Section of the Department, the Accounts Section will issue the first reminder to the contractor requesting him to settle the rent immediately together with the surcharge for late payment as stipulated in the contract. The reminder will be copied to the venue concerned so that officers of the venue will contact the contractor for payment of the arrears. Upon receipt of the copy of the first reminder, the officer-in-charge of the venue will contact the contractor concerned and ask him to settle the arrears and the contractual surcharge as soon as possible.
• If the contractor fails to make the payment within 14 days after the date of the first reminder, the Accounts Section will issue him a second reminder which is also copied to the officer-in-charge of the venue, who will also send a warning letter to the contractor, asking him to settle the arrears.
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