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15
WEDNESDAY, APRIL 20, 1977
ESTIMATES FOR PUBLIC WORKS EXPENDITURE MORE REALISTIC
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THE PACKAGE CONCEPT THAT SCHOOLS AND ROADS BE BUILT AT THE SAME TIME AND THE PROJECT PRIORITY SYSTEM INTRODUCED IN 1974 FOR THE PUBLIC WORKS PROGRAMME ARE THE TWO MAJOR REASONS RESULTING IN THE PUBLIC WORKS DEPARTMENT UNDERSPENDING IN THE LAST TWO YEARS.
THIS WAS STATED BY THE FINANCIAL SECRETARY IN REPLY TO CRITICISMS RAISED BY THE UNOFFICIALS AGAINST THE UNDERSPENDING ON PUBLIC WORKS PROGRAMME AT THE RESUMED BUDGET DEBATE THIS AFTERNOON.
IN 1975-76 THE PROVISION IN THE ESTIMATES WAS $1,626 MILLION, EUT ACTUAL EXPENDITURE WAS $1,272 MILLION. IN 1976-77 THE PROVISION WAS $1,602 MILLION BUT $1,174 MILLION WAS SPENT.
THE FINANCIAL SECRETARY EXPLAINED THAT THE PACKAGE CONCEPT PROVIDES FOR BALANCED DEVELOPMENT, BUT THERE WAS A GREATER RISK OF SLIPPAGE BECAUSE THE CO-ORDINATION OF THE VARIOUS AND DIVERSE PROJECTS WITHIN EACH PACKAGE IS COMPLICATED.
HENCE, HE SAID, ONE DIFFICULT CLEARANCE CAN DELAY THE IMPLEMENTATION NOT JUST OF THE PROJECT CONCERNED, BUT OF ALL PROJECTS WITHIN A PACKAGE.
+ THE LIKELIHOOD OF SUCH INTERRUPTIONS WAS UNDER-ESTIMATED AND SO THE PROVISION SOUGHT IN EACH OF THESE YEARS WAS BASED ON UNWARRANTED OPTIMISM, + HE SAID.
REGARDING THE PRIORITY SYSTEM, THE FINANCIAL SECRETARY POINTED OUT THAT HIGH PRIORITY PROJECTS TENDED TO BE MORE COMPLICATED THAN LOW PRIORITY ONES AND THIS HAD HAD AN EFFECT ON EXPENDITURE PERFORMANCE.
+AT THE SAME TIME, IN OUR ANXIETY TO MAXIMISE THE BENEFIT OF OUR INVESTMENT IN THE PUBLIC WORKS PROGRAMME WE HAVE BEEN SOMEWHAT RELUCTANT TO FEED IN LOW PRIORITY PROJECTS WHICH COULD BE PROCEEDED WITH QUICKLY SIMPLY TO BOOST EXPENDITURE, HE SAID,
HE ASSURED THE MEMBERS THAT SUCH MISTAKE WOULD NOT BE COMMITTED THIS YEAR AND THAT THE ESTIMATES WERE MORE REALISTIC. BUT, HE SAID, BOTH HE AND THE FINANCE BRANCH ARE CAUGHT IN A DILEMMA.
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