WEDNESDAY, APRIL 20, 1994
ALL THIS SHOWS, I WOULD SUGGEST, THAT WE HAVE DONE OUR BEST TO BE AS FLEXIBLE AND AS POSITIVE AS WE CAN IN RESPONSE TO THE VIEWS OF THE CHINESE SIDE. WE ARE ALREADY HAVING DISCUSSIONS AT THE EXPERT LEVEL WITH THE CHINESE SIDE ON THE FOURTH SET OF FINANCING PROPOSALS. ΤΟ TALK (AS DO MR POON, MR LI AND MR YOUNG) AT THIS SENSITIVE STAGE PESSIMISTICALLY ABOUT ALTERNATIVES, INCLUDING ADDITIONAL EQUITY INJECTION, WILL CERTAINLY NOT HELP BOTH SIDES REACH AN
EARLY
+
GIVEN
AGREEMENT. ON THE CONTRARY LET ME SPEAK CLEARLY, THIS DEBATE, THE WORDING OF THE MOTIONS, IS UNFORTUNATELY TIMED. IS IT REALLY LIKELY TO BE HELPFUL, WHILE TALKS ARE STILL PROCEEDING FOR LEGCO TO SAY PUBLICLY THAT WE SHOULD CONSIDER PUTTING IN EVEN MORE EQUITY? WILL THE TAXPAYER THINK THIS IS IN HIS BEST INTEREST?
NOR AM
CONVINCED BY MR LI AND MR YOUNG THAT IT WOULD BE HELPFUL OR PRACTICAL TO SUBMIT CONCRETE FINANCING PROPOSALS FOR THE WHOLE OF THESE TWO PROJECTS TO THIS COUNCIL NOW WHILST TALKS WITH THE CHINESE SIDE ARE STILL CONTINUING. WOULD THAT REALLY HELP US REACH AN EARLY AGREEMENT? WHAT PROPOSALS AM I SUPPOSE TO PUT? ABANDON THE FOURTH FINANCING PROPOSAL EVEN THOUGH IT IS STILL BEING DISCUSSED AND PUT TO MEMBERS PROPOSALS WHICH INVOLVE EVEN LARGER SUMS FROM THE TAXPAYER. THAT IS THE IMPLICATON OF THE MOTION, OR I SHOULD SOME OF THE AMENDMENTS. BUT LET ME ALSO SAY THAT I BELIEVE MOTIVES ARE INTENDED TO BE HELPFUL. WE HAVE THE SAME AIMS, BUT I DO NOT THINK THE MOTIONS ACTUALLY ACHIEVE THOSE AIMS.
SAY, OF MEMBERS'
LET ME NOW TURN TO THE SECOND PRONG OF OUR POLICY ON THE AIRPORT AND AIRPORT RAILWAY FINANCING, WHICH IS TO CONTINUE TO FUND ESSENTIAL WORKS ON A STEP-BY-STEP BASIS. WITH THE SUPPORT OF THE FINANCE COMMITTEE, THE PAA HAS ALREADY COMPLETED 92% OF THE DESIGN FOR THE PASSENGER TERMINAL BUILDING AND ABOUT 35% OF THE DESIGN FOR OTHER ESSENTIAL SYSTEMS AND EQUIPMENT. THE SITE PLATFORM IS ABOUT HALF COMPLETE, WITH OVER 600 HECTARES OF LAND FORMED. THIS IS ABOUT THE SIZE OF TWO KAI TAK AIRPORTS. CONTRACTS FOR THE AUTOMATED PEOPLE MOVER AND BAGGAGE HANDLING SYSTEMS HAVE NOW BEEN LET AND FOUNDATION WORKS FOR THE PASSENGER TERMINAL BUILDING ARE ABOUT TO START.
LIKEWISE, WITH 'THE SUPPORT OF FINANCE COMMITTEE, WE HAVE STARTED SOME ESSENTIAL ROUTE PROTECTION AND ADVANCE WORKS FOR THE AIRPORT RAILWAY. IF THESE ADVANCE WORKS WERE NOT ALLOWED TO PROCEED UNTIL AN AGREEMENT ON THE RAILWAY FINANCING WAS IN PLACE, THE WORKS WOULD BE DEFERRED, TECHNICAL INTERFACE ISSUES COMPLICATED, DISRUPTION TO THE PUBLIC PROLONGED AND COST OF WORKS EVENTUALLY INCREASED.
THUS, OUR STEP-BY-STEP APPROACH HAS ENABLED US TO MAKE A GREAT DRAL OF PROGRESS IN THE PHYSICAL CONSTRUCTION OF THE AIRPORT CORE PROGRAMME, INCLUDING THE AIRPORT AND THE AIRPORT RAILWAY. HAD WE WAITED FOR THE TALKS TO BE COMPLETED BEFORE PROCEEDING ALONG THIS LINE, WE COULD HAVE LOST OVER TWO YEARS OF VALUABLE CONSTRUCTION TIME: WITH EXTRA COSTS FOR THE DEFERRED WORKS.
IN CONCLUSION, I CAN ASSURE MEMBERS THAT WE WILL CONSULT YOU ON THE FINANCING ARRANGEMENTS AS SOON AS WE ARE IN A POSITION TO DO SO. THIS COUNCIL AND THIS COUNCIL ALONE, OR I SHOULD SAY, THE FINANCE COMMITTEE OF THIS COUNCIL, CAN APPROVE THE EQUITY WHICH WILL BE REQUIRED FOR THE FINANCING OF THESE PROJECTS. IN SEEKING APPROVAL FOR THAT EQUITY, THE ADMINISTRATION WILL IN DUE COURSE NEED EXPLAIN THE FULL DETAILS OF THE FINANCING ARRANGEMENTS PROPOSED. BUT THE AIM MUST BE TO FIRST REACH AN UNDERSTANDING WITH THE CHINESE SIDE.
/WITH THE