WEDNESDAY, MARCH 6, 1991
RESERVES DID NOT TAKE INVESTMENTS IN THE MASS CORPORATION, TRANSIT RAILWAY CORPORATION, THE KOWLOON-CANTON RAILWAY THE HOUSING AUTHORITY AND THE NEW HONG KONG TUNNEL COMPANY.
HE EXPLAINED THAT THE LEVEL OF THE ACCOUNT OF THE VALUE OF OUR SUBSTANTIAL
IN
HOUSING AUTHORITY
"FOR EXAMPLE, OVER THE YEARS WE HAVE MADE CASH INVESTMENTS
THE AND CORPORATION THE MASS TRANSIT RAILWAY TOTALLING SOME $33 BILLION.
HONG THEY ARE
"THESE INVESTMENTS HAVE MADE AN IMPORTANT CONTRIBUTION TO KONG'S WELL-BEING AND PROVIDE A SOURCE OF FUTURE REVENUE. PART OF OUR WEALTH," HE SAID.
SIR PIERS POINTED OUT THAT THE ROLE OF THE FISCAL RESERVES IMPORTANT IN THREE ASPECTS.
WAS
SUCH
CONTINGENT LIABILITIES. "FIRST,
WE HAVE TO ALLOW FOR CERTAIN THESE LIABILITIES INCLUDE GUARANTEES TO QUASI-GOVERNMENT BODIES AS THE HONG KONG EXPORT CREDIT INSURANCE CORPORATION.
ECONOMIC
UNEXPECTED WE NEED A CUSHION AGAINST "SECONDLY,
OUR SETBACKS WHICH MIGHT AFFECT OUR REVENUE YIELD FROM TIME TO TIME.
IN REVENUE WITHOUT RESERVES ENABLE US TO COPE WITH ANY SHORTFALL ABRUPT ADJUSTMENTS TO OUR PROGRAMME OF PUBLIC EXPENDITURE.
"THIRDLY, AND THIS IS PARTICULARLY RELEVANT TO THE FINANCING OF DEFICITS THE AIRPORT, OUR RESERVES ARE AVAILABLE TO COVER TEMPORARY WHICH MAY ARISE AS A RESULT OF PEAKS IN THE PATTERN OF EXPENDITURE.'
KONG'S OVERALL FINANCIAL HE ADDED THAT IN DISCUSSING HONG
OVERLOOK THE FUND POSITION, NOW AND IN THE FUTURE, WE SHOULD NOT
JOINT SINO-BRITISH
DECLARATION ESTABLISHED IN ACCORDANCE WITH THE WHICH RECEIVED THE SHARE OF LAND PREMIUM INCOME ACCRUING TO THE FUTURE HỌNG KONG SPECIAL ADMINISTRATIVE REGION GOVERNMENT.
"THIS SHARE AMOUNTS TO 50 PER CENT OF NET LAND PREMIUM AFTER DEDUCTING LAND PRODUCTION COSTS.
INCOME
HAD BEEN
"BY THE END OF MARCH 1990 A TOTAL OF $17.4 BILLION
BILLION IS EXPECTED TO BE INTO THE FUND AND A FURTHER $3 TRANSFERRED TO THE FUND IN 1990-91.
PAID
"ACCOUNT MUST ALSO BE TAKEN OF THE INTEREST BEING EARNED.
THE
FINANCIAL SECRETARY SAID THERE WOULD BE INTO THIS FUND UP TO 1997, WHEN IT WOULD FORM PART RESERVES.
++
FURTHER PAYMENTS OF HONG KONG'S
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