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WEDNESDAY, OCTOBER 31, 1990
SIR PIERS SAID THE GOVERNMENT WOULD NOT HAVE THIS PACKAGE OF PROJECTS IF IT DID NOT BELIEVE THAT CLEARLY WITHIN HONG KONG'S FINANCIAL CAPACITY.
J
PROCEEDED WITH DOING SO WAS
THAT IS, OUR THE POTENTIAL
"I HOPE THE FIGURES I HAVE JUST REFERRED TO, RESERVES, THE SAR GOVERNMENT LAND FUND TOGETHER WITH
TO LAND SALES REVENUE WHICH THE GOVERNOR HAD INDICATED IN HIS ADDRESS
WILL DEMONSTRATE THE BE
$40 SOME
BILLION AT PRESENT DAY
STRENGTH OF OUR POSITION," HE SAID.
PRICES,
OF
HOWEVER, SIR PIERS SAID THERE WERE OTHER IMPORTANT ASPECTS OUR FINANCIAL STRATEGY FOR THE AIRPORT PROGRAMME AND THE FIRST WAS THE NEED TO CONTROL THE OVERALL COST OF THE PROGRAMME EFFECTIVELY.
THE SECOND RELATED TO THE NEED TO KEEP PUBLIC SECTOR THE MINIMUM BY ENCOURAGING PRIVATE SECTOR PARTICIPATION MADE FINANCIAL SENSE, HE SAID.
COSTS то WHERE THIS
EXPERIENCE VARIOUS MAJOR HE SAID.
"THIS STRATEGY IS FOUNDED ON HONG KONG'S SUCCESSFUL IN FUNDING PROJECTS LIKE THE CONTAINER TERMINALS AND TUNNELS, WHOLLY OR PARTLY FROM THE PRIVATE SECTOR,
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NOT ONLY WOULD THE INTRODUCED
SIR PIERS SAID PRIVATE SECTOR PARTICIPATION
ALSO REDUCED THE
FOR PUBLIC FUNDS, IT REQUIREMENT COMMERCIAL DISCIPLINES AND EFFICIENCIES OF THE PRIVATE SECTOR.
"THE EXACT MIX OF PUBLIC AND PRIVATE SECTOR FUNDING WILL EMERGE GRADUALLY AS REFINED COST ESTIMATES, REVENUE PROJECTIONS AND FINANCIAL
IN AVAILABLE
THE COMING ANALYSES OF THE VARIOUS PROJECTS BECOME MONTHS.
FOR
"THIS MIX MUST ENSURE THAT WE OBTAIN THE BEST OVERALL HONG KONG IN THE LONGER TERM.
RESULTS
THAT SOME 40 PER IN THE PORT
"I AM CONFIDENT THAT THE ORIGINAL ESTIMATE CENT TO 60 PER CENT OF THE PACKAGE OF PROJECTS INCLUDED AND AIRPORT DEVELOPMENT STRATEGY CAN BE FINANCED' BY THE PRIVATE SECTOR REMAINS TRUE," HE SAID.
PROGRAMME
SIR PIERS SAID THAT SOME HAD ARGUED THAT THE AIRPORT WAS CROWDING OUT OTHER DESIRABLE PROJECTS, AND HAD TENDED TO BLAME ALL ON THE AIRPORT TIGHTENING OF CONTROL ON PUBLIC SECTOR EXPENDITURE PROGRAMME.
HE SAID THIS VIEW WAS MISGUIDED FOR TWO PRINCIPAL REASONS.
LOWER "FIRST, EVEN WITHOUT A DECISION TO BUILD THE NEW AIRPORT, GROWTH IN THE ECONOMY AND A HIGH LEVEL OF INFLATION WOULD IN ANY EVENT REQUIRE US TO CONTAIN THE INCREASE IN PUBLIC EXPENDITURE MORE TIGHTLY.
DISTINGUISH BETWEEN RECURRENT AND
"SECONDLY, WE MUST
EXPENDITURE," HE SAID.
SIR PIERS SAID THE PRIME NEED, EVEN WITHOUT THE
WAS TO KEEP RECURRENT EXPENDITURE
BUILD THE REASONABLE
AIRPORT, LEVEL.
CAPITAL
DECISION TO GROWTH то A
/"THIS MEANS