THURSDAY, JUNE 2, 1983
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PUBLIC WORKS SPENDING GREATLY INCREASED
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GOVERNMENT EXPENDITURE ON PUBLIC WORKS PROJECTS FOR THE CURRENT FINANCIAL YEAR SHOWS A DRAMATIC INCREASE WHEN COMPARED WITH FIGURES FOR THE PAST FEW YEARS, MR CHAN NAI-KEONG, THE DEPUTY SECRETARY (WORKS) OF THE LANDS AND WORKS BRANCH, SAID
TODAY.
SPEAKING AT THE HONG KONG INSTITUTE OF ARCHITECTS LUNCHEON, MR CHAN SAID THAT A START WOULD BE MADE ON $3 400 MILLION WORTH OF NEW PROJECTS THIS YEAR, WHILE THE APPROVED BUDGET SHOWED A TOTAL EXPENDITURE ON NEW PROJECTS AND THOSE ALREADY UNDERWAY TO BE ABOUT $7 600 MILLION (EXCLUDING LAND COSTS).
+THE AMOUNT APPROVED FOR WORKS EXPENDITURE THIS FINANCIAL YEAR REPRESENTS AN INCREASE OF 140 PER CENT OVER THE 1980/81 FIGURE AND 16 PER CENT OVER THE 1982/83 ACTUAL EXPENDITURE OF $6 574 MILLION.
+IN TERMS OF ACTUAL DEMAND ON THE CONSTRUCTION INDUSTRY, THE INCREASE OF EXPENDITURE APPROVED FOR 1983/84 OVER THAT SPENT IN 1982/83 WILL BE EVEN MORE SIGNIFICANT, HE SAID.
THE REASON, MR CHAN SAID, WAS THAT IN 1982/83 AN AMOUNT OF SOME $600 MILLION WAS USED FOR THE PURCHASE OF ALREADY BUILT RESIDENTIAL PROPERTY IN THE PRIVATE SECTOR FOR THE PURPOSE OF GOVERNMENT QUARTERS.
+IF THIS AMOUNT WAS DEDUCTED, THE PERCENTAGE INCREASE IN EXPENDITURE ON CONSTRUCTION ACTIVITIES IS SOME 27 PER CENT OVER THAT IN 1982/83.
+THIS NOT ONLY IS NO CUT-BACK, IT REPRESENTS AN AMBITIOUS INCREASE,+ HE SAID.
TURNING TO PRIVATE SECTOR EXPENDITURE ON BUILDING AND CONSTRUCTION, MR CHAN SAID THAT THERE WAS A ONE PER CENT DECLINE IN 1982 EVEN THOUGH BUILDING INTENTIONS INCREASED BY 40 PER CENT IN 1981.
+THIS, I FEEL, INDICATES THAT DUE TO THE DEPRESSED STATE OF THE PROPERTY MARKET SOME DEVELOPERS HAVE RESCHEDULED THE IR DEVELOPMENT PROGRAMMES. AS THERE WAS A DECLINE OF 24 PER CENT IN PRIVATE SECTOR BUILDING INTENTIONS IN 1982, AND THE CURRENT OVER-SUPPLY SITUATION MAY PERSIST, IT IS LIKELY THAT THERE WILL BE A FURTHER DECLINE IN CONSTRUCTION AND BUILDING ACTIVITIES IN THE PRIVATE SECTOR, MR CHAN SAID.
TAKING INTO ACCOUNT THESE FACTORS AND THE LIKELY EFFECT OF THE OVERHANG FROM THE HIGH LEVEL OF BUILDING INTENTIONS IN 1981, THE GOVERNMENT ESTIMATED THAT THE RATE OF PRIVATE SECTOR EXPENDITURE ON BUILDING AND CONSTRUCTION IN THE COMING YEAR SHOULD ONLY DECLINE BY TWO PER CENT, HE ADDED.
/WHILE INDEPENDENT