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WEDNESDAY, MARCH 3, 1993
"THIS EXTRA REVENUE REFLECTS THE SUCCESS OF THE ECONOMY, AND IS OF COURSE GOOD NEWS SINCE IT HAS BEEN LARGELY GENERATED BY INCREASED LEVELS OF BUSINESS ACTIVITY. MOST OF IT COMES FROM STAMP DUTY, PROFITS TAX AND VEHICLE FIRST REGISTRATION TAX, SAID MR MACLEOD.
**THE OTHER HALF OF THE ADDITIONAL SURPLUS IS THE RESULT OF CAPITAL UNDERSPENDING. MEMBERS WILL NOT FIND THIS ACCEPTABLE. NEITHER DO I."
WOULD COME ΤΟ
HE FORECASTED LAST YEAR THAT TOTAL EXPENDITURE $115 BILLION AND NOW EXPECTED TOTAL EXPENDITURE TO COME ΤΟ $109 BILLION, SOME 5% LOWER THAN THE ORIGINAL TARGET.
OF
HE NOTED THAT THE GOVERNMENT HAD MADE SOME WELCOME SAVINGS ABOUT $1 BILLION ON PUBLIC WORKS CONTRACTS WHERE TENDER PRICES HAD BEEN LOWER THAN EXPECTED, BUT POINTED OUT THAT IT HAD TO BE FACED THAT THE MAIN UNDERSPENDING WAS THE RESULT OF SLOWER PROGRESS WITH CAPITAL WORKS PROGRAMMES THAN PLANNED.
"LET ME BE PLAIN ABOUT WHAT THIS UNDERSPENDING MEANS FOR THE COMMUNITY: SOME DESIRABLE PROJECTS WILL NOT BE READY ON TIME. IT IS TRUE THAT WE HAVE SET OURSELVES AMBITIOUS TARGETS, BUT SUCH DELAYS ARE NOT ACCEPTABLE, AND WE HAVE TO ACT URGENTLY ΤΟ REMOVE THE BOTTLENECKS," THE FINANCIAL SECRETARY SAID.
HE SAID THAT THE TREND OF UNDERSPENDING WAS ALREADY APPARENT AT THE TIME OF HIS LAST BUDGET, AND SOME MEASURES HAD ALREADY BEEN PUT INTO EFFECT FOR EXAMPLE, CALLING FOR TENDERS WHILE AT THE SAME TIME PUTTING ITEMS TO FINANCE COMMITTEE FOR FUNDING, GETTING RID OF THE BOTTLENECK OF CLEARING YEAR-END PAYMENTS, AND THE INTRODUCTION OF TIGHTER MONITORING PROCEDURES BY WORKS BRANCH.
"THIS LAST FINANCIAL YEAR HAS BROUGHT HOME THE NEED FOR MORE FUNDAMENTAL SOLUTIONS TO THIS CONSTRAINT ON OUR CAPACITY. IMPROVED
CO-ORDINATION AND MANAGEMENT WITHIN THE WORKS DEPARTMENTS WILL HELP. NO LESS IMPORTANT WILL BE GREATER USE OF PRIVATE SECTOR EXPERTISE AND RESOURCES.'
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MR MACLEOD SAID IT HAD BECOME CLEAR THAT NEW MEASURES WERE NEEDED TO ENSURE THAT THERE WAS BFFECTIVE LIAISON BETWEEN THOSE WHO DESIGNED PROJECTS, THOSE WHO UNDERTOOK LAND ACQUISITION FOR THEM, THOSE WHO MONITORED THEIR ENVIRONMENTAL IMPLICATIONS AND THOSE WHO IMPLEMENTED THE WORKS, AND ALSO WITH THE CLIENT BRANCHES OR DEPARTMENTS.
THIS REQUIRES THAT OVERALL MANAGEMENT OF PUBLIC WORKS BECOMES MORE UNIFIED.
"TO REMOVE ANY DOUBT ABOUT WHERE OVERALL MANAGEMENT RESPONSIBILITY LIES," HE SAID, "I HAVE TAKEN STEPS TO PLACE WITH THE SECRETARY FOR WORKS OVERALL RESPONSIBILITY FOR THE IMPLEMENTATION OF THE PUBLIC WORKS PROGRAMME.
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GIVEN THE VARIATION IN SIZE OF PROJECTS AND THE INEVITABLE LUMPY NATURE OF WORKS PROGRAMMING, HE SAID IT WAS NOT COST-EFFECTIVE
TO ATTEMPT TO HAVE ALL PROJECTS DESIGNED AND SUPERVISED BY GOVERNMENT ENGINEERS AND ARCHITECTS.
/HE SAID
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