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THURSDAY, OCTOBER 23, 1975
LEGCO CLEARS WAY FOR MTR WORK
GOVT. AUTHORISED TO GUARANTEE MTR CORPORATION LOANS
X X X X X X X
THE LEGISLATIVE COUNCIL TODAY PAVED THE WAY FOR WORK ON THE MASS TRANSIT SYSTEM TO. PROCEED BY AUTHORISING THE GOVERNMENT TO GRANT GUARANTEES IN RESPECT OF LOANS AND OTHER INDEBTEDNESS INCURRED BY THE MASS TRANSIT RAILWAY CORPORATION.
ONE UNOFFICIAL MEMBER, THE HON. LO TAK-SHING, VOTED AGAINST THE MOTION.
ANOTHER, THE HON. HILTON CHEONG-LEEN, SPOKE IN SUPPORT OF THE MOTION BUT URGED CAUTION AND THE STRICTEST CONTROL AND MONITORING OF THE PROJECTS BUILDING COSTS.
SPEAKING AGAINST THE MOTION, MR. LO SAID IN PART: +TO PUT FAITH IN THE ACCURACY OF ESTIMATES FOR A PROJECT AS NEW AND AS LARGE AS THE MASS TRANSIT RAILWAY WITHOUT A THOROUGH DOWNSIDE RISK STUDY IS, AS I HAVE SAID BEFORE, A TREMENDOUS GAMBLE AND ONE THAT I CANNOT IN ALL CONSCIENCE AGREE TO THE GOVERNMENT TAKING.
+HOWEVER, THERE IS NO LAW WHICH REQUIRES EACH GAMBLE TO BE A LOSING GAMBLE AND ALL THAT I ON MY OWN CAN USEFULLY DO TODAY IS TO WISH THE MASS TRANSIT RAILWAY CORPORATION VERY SINCERELY ALL GOOD FORTUNE BECAUSE I DO NOT SUPPORT THE MOTION, MR. LO SAID.
SUPPORTING THE MOTION, MR. CHEONG-LEEN CALLED FOR THE STRICTEST POSSIBLE MONITORING AND CONTROL IN REGARD TO THE BUILDING COSTS OF THE PROJECTS OVER THE COMING YEARS.
+ON NO ACCOUNT SHOULD THIS COUNCIL BE FACED WITH A FAIT ACCOMPLI IN THE NEXT FEW YEARS WHEREBY COSTS WILL HAVE ESCALATED TWO OR THREE TIMES AS HAS HAPPENED IN MANY OTHER CITIES WHERE MASS TRANSIT SYSTEMS HAVE BEEN CONSTRUCTED.
+FURTHERMORE, IN THE EVENTUALITY OF COSTS GOING BEYOND THE SEVEN PER CENT ESCALATION PER ANNUM FIGURE ALLOWED FOR, IT IS IMPERATIVE THAT THE GOVERNMENT DOES NOT ALLOW THE CORPORATION TO GET TOO DEEPLY INVOLVED IN THE REAL ESTATE MARKET TO MAKE UP FOR POTENTIAL DEFICIT AMOUNTS TO THE OVERALL DETRIMENT OF THE COMMUNITY,+ MR. CHEONG-LEEN SAID.
THE GOING AHEAD OF THE MASS TRANSIT PROJECT, HE ADDED, SHOULD BE A SIGN OF OUR FAITH IN THE ECONOMIC AND POLITICAL FUTURE OF HONG KONG, IT SHOULD NOT BE A FACTOR LEADING UP TO CONCERN OVER THE FISCAL STRENGTH OR EVEN FISCAL STABILITY OF HONG KONG DUE TO RUNAWAY COSTS AT A LATER DATE.+
/IN REPLY