WEDNESDAY, MARCH 14, 1990
APPROVAL FOR APITAL INVESTMENT FUND, LOAN FUND
RESOLUTIONS TO ESTABLISH A CAPITAL INVESTMENT FUND AND A LOAN FUND WERE APPROVED BY THE ISLATIVE COUNCIL TODAY (WEDNESDAY).
THE TWO RESOLUTIONS WERE MOVED UNDER THE PUBLIC FINANCE ORDINANCE BY THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS.
NOTING THAT HE HAD REFERRED TO THE ESTABLISHMENT OF A CAPITAL INVESTMENT FUND IN HIS BUDGET SPEECH LAST WEEK, SIR PIERS SAID THIS FUND WOULD BE OF PARTICULAR RELEVANCE IN RELATION TO THE EXPENDITURE INVOLVED IN INFRASTRUCTURAL DEVELOPMENT IN THE COMING YEARS.
IN ESTABLISHING THE NEW FUND, THE OPPORTUNITY WOULD BE TAKEN TO RATIONALISE THE OPERATION OF THE OTHER FUNDS, AND AS A RESULT, THE MASS TRANSIT FUND AND THE DEVELOPMENT LOAN FUND WOULD BE DISESTABLISHED.
FOR
"THIS NEW CAPITAL INVESTMENT FUND WILL BECOME A VEHICLE PROVIDING THE GOVERNMENT'S PERMANENT INVESTMENT IN PUBLIC SECTOR BODIES THAT ARE NOT PART OF THE GOVERNMENT STRUCTURE ITSELF.
THI
'BODIES THAT ALREADY FALL INTO THIS CATEGORY ARE THE HOUSING AUTHORITY, THE MASS TRANSIT RAILWAY CORPORATION AND THE KOWLOON-CANTON RAILWAY CORPORATION.
"THE AIRPORT AUTHORITY, WHICH IS EXPECTED TO BE ESTABLISHED 1991, WILL ALSO FALL INTO THIS CATEGORY.
IN
"WHILST THE MONEY IN THE FUND WILL, FOR ACCOUNTING PURPOSES, BE SEPARATED FROM THE GENERAL REVENUE ACCOUNT, I MUST STRESS THAT ALL INVESTMENTS AND LOANS ARISING FROM THE OPERATION OF THE FUND WILL BE SUBJECT TO THE APPROVAL OF THE FINANCE COMMITTEE.
"THUS THE AUTHORITY OF FINANCE COMMITTEE WILL IN NO WAY BE DIMINISHED. IT IS THE ACCOUNTING ARRANGEMENTS ONLY THAT WILL CHANGE, HE SAID.
SIR PIERS SAID THE CAPITAL INVESTMENT FUND WOULD FACILITATE MORE LOGICAL ACCOUNTING FOR THE LARGE INVESTMENTS THE GOVERNMENT HAD MADE AND WAS EXPECTED TO MAKE. AS A RESULT, THE FUND SHOULD ASSIST IN PROVIDING A CLEARER PICTURE OF THE OVERALL STATE OF THE PUBLIC FINANCES.
THE
HE EXPLAINED THAT HIS RESOLUTION PROVIDED FOR THE FUND TO TAKE OVER THE VARIOUS INVESTMENTS ALREADY MADE BY THE GOVERNMENT IN THE HOUSING AUTHORITY, THE RAIL CORPORATIONS AND OTHER BODIES SUCH AS NEW HONG KONG HARBOUR CROSSING COMPANY, AND TO MAKE FUTURE INVESTMENTS IN THESE AND OTHER BODIES.
CAPITAL
FOLLOWING THE ESTABLISHMENT OF THE THE MASS TRANSIT FUND WOULD NO LONGER BE REQUIRED.
INVESTMENT
FUND,
/THE RESOLUTION