WEDNESDAY, FEBRUARY 18, 1987

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IN RECENT YEARS ONLY IN TWO EXCEPTIONALLY COMPLEX CASES INVOLVING CLAIMS IN EXCESS OF $320 MILLION WERE PRIVATE COUNSEL AND SOLICITORS ENGAGED.

+BY AGREEMENT LEGAL COSTS WERE PAID BY EACH PARTY! GOVERNMENT'S WERE $11 MILLION IN ONE CASE AND $18 MILLION IN THE OTHER. THE ARBITRATIONS RESULTED IN SETTLEMENTS FOR A TENTH OF THE AMOUNT CLAIMED, WHICH RESULT SPEAKS FOR ITSELF.

+MOREOVER GOVERNMENT'S FIRM ACTION IN THESE CASES HAS UNDOUBTEDLY DISCOURAGED OTHER EXCESSIVE CLAIMS,+ MR BARNES SAID.

THE REASON FOR CLAIMS WAS BASICALLY THAT THE CONTRACTOR CONSIDERED THE REIMBURSEMENT HE HAD RECEIVED UNDER THE CONTRACT TO BE LESS THAN HIS ENTITLEMENT. THE DISPUTE AROSE FROM DISAGREEMENT EITHER AS TO WHAT RISKS AND RESPONSIBILITIES WERE THE CONTRACTOR'S UNDER THE TERMS OF CONTRACT, OR AS TO WHAT ITEMS OF COST WERE REIMBURSABLE UNDER THE CONTRACT, OR A COMBINATION OF BOT H.

+TO APPRECIATE THE SCALE OF DISPUTED CLAIMS, IT IS WORTH COMPARING THOSE WITH THE TOTAL NUMBER AND VALUE OF CONTRACTS AWARDED, HE SAID.

+IN 1985-86, 780 CONTRACTS WERE AWARDED BY GOVERNMENT AND THE HOUSING AUTHORITY, WITH A TOTAL VALUE OF $9 100 MILLION.

+DISPUTED CLAIMS OCCUR ON AVERAGE IN LESS THAN ONE PER CENT OF ALL CONTRACTS, WITH AWARDS AVERAGING ONLY ABOUT 0.25 PER CENT OF TOTAL CONTRACT VALUES. I CONSIDER THE FIGURES TO BE LOW, AND GENERALLY ACCEPTABLE.+

IMMIGRATION LEVEL CAREFULLY SET

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THE LEVEL OF IMMIGRATION HAS TO BE VERY CAREFULLY SET SO AS NOT TO UPSET UNDULY THE SOCIAL AND ECONOMIC STRUCTURE OF THE COMMUNITY, THE SECRETARY FOR SECURITY, THE HON DAVID JEAFFRESON, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

REPLYING TO A QUESTION BY THE HON HUI YIN-FAT, MR JEAFFRESON SAID 27 000 PERSONS WERE ARRIVING FROM CHINA EACH YEAR FOR SETTLEMENT THROUGH THE ONE-WAY PERMIT SYSTEM AGREED WITH THE CHINESE AUTHORITIES.

/+IN 1986

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