N
1
WEDNESDAY, JUNE 24, 1992
THE VARIATION BETWEEN THE REVISED ESTIMATES AND ACTUAL REVENUE RECEIVED FOR OTHER INTERNAL REVENUE HEADS AND SUBHEADS WAS MINIMAL.
OF
MR NENDICK SAID THE GOVERNMENT WOULD BE EXPLORING WHETHER THERE WERE WAYS TO IMPROVE FURTHER BOTH THE PRODUCTION AND PRESENTATION THE ESTIMATES IN THE LEAD-UP TO THE NEXT BUDGET.
ALL ON
"BUT WE MUST BEAR IN MIND THAT NO SYSTEM CAN PREDICT CHANGES, LOCAL AND INTERNATIONAL, WHICH MAY HAVE A SUDDEN EFFECT THE ECONOMY AND, IN CASE OF DOUBT, WE SHOULD ERR ON THE SIDE OF PRUDENCE IN ESTIMATING THE AMOUNT OF REVENUE WE HAVE AVAILABLE, HE SAID.
HE SAID THE GOVERNMENT FACED A DIFFERENT AND SERIOUS PROBLEM WITH RESPECT TO CAPITAL EXPENDITURE.
"
SOMEWHAT MORE
LOOKING AT THE PERFORMANCE OF THE CAPITAL WORKS RESERVE FUND OVER THE PAST FIVE YEARS, THE DIFFERENCE BETWEEN THE ORIGINAL ESTIMATES AND THE ACTUAL EXPENDITURE AVERAGED AT SOMETHING OVER 6% UP TO 1989-90, BUT INCREASED TO ABOUT 30% IN 1990-91 AND 1991-92.
THE LARGEST ELEMENTS IN THE UNDERSPENDING IN THE LAST TWO FINANCIAL YEARS OCCURRED UNDER HEAD 701 LAND ACQUISITION AND HEAD 702 PORT AND AIRPORT DEVELOPMENT.
HE SAID IN THE CASE OF LAND ACQUISITION, UNDERSPENDING WAS MAINLY DUE TO PROLONGED ARBITRATION ON CONTESTED CASES AND THE FAILURE OF LANDOWNERS TO COME FORWARD TO COLLECT COMPENSATION.
UNCERTAINTY OVER THE FUTURE OF THE AIRPORT CORE PROGRAMME ALSO CONTRIBUTED TO UNDERSPENDING, AS CONTRACTS AND TENDERS WERE HELD UP UNTIL THE SIGNING OF THE MEMORANDUM OF UNDERSTANDING ON JUNE 30, 1991.
"THIS WAS, OF COURSE, A MAJOR BREAKTHROUGH, BUT TIME WAS STILL REQUIRED TO MOBILISE RESOURCES AND OBTAIN THE NECESSARY APPROVALS FROM FINANCE COMMITTEE BEFORE THE PROJECTS CONCERNED COULD GO FORWARD AT FULL SPEED, MR NENDICK SAID.
·
HE SAID HE WAS CONFIDENT THAT THE PADS-RELATED ESTIMATES BE IMPROVED IN 1992-93.
WOULD
"PROJECTS WITHIN THE AIRPORT CORE PROGRAMME ARE NOW PROGRESSING STEADILY AND A SERIES OF PORT DEVELOPMENT PROJECTS ARE COMING ON STREAM.
AS FOR
THE GOVERNMENT'S
HEAD 701, HE SAID FACTORS OUTSIDE CONTROL WOULD ALWAYS MAKE IT DIFFICULT TO PREDICT ACCURATELY EACH YEAR'S EXPENDITURE ON LAND ACQUISITION.
PROLONGED DISCUSSION WITH A MAJOR CLEAREE OR ARBITRATION BY THE LANDS TRIBUNAL CAN, FOR EXAMPLE, RESULT IN SLIPPAGE OF HUNDREDS OF MILLIONS OF DOLLARS IN COMPENSATION PAYMENT.
0
/3