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Spending on Infrastructure and Capital Works
Whilst on the subject of expenditure, much has been made by some Members of the apparent fall in capital expenditure on our "infrastructure". I think that this problem is more apparent than real, and concern has arisen due to confusion about what is actually meant by "infrastructure". We may have unwittingly contributed to this confusion by using a rather narrowly defined scope for this area in our publication "Introduction to the Estimates".
It is true to say that the Estimates do show a 5.3% fall in our expenditure on the "infrastructure" programme area. However, this expenditure relates mainly to transport, drainage and similar projects. It does not include expenditure on other capital works projects such as hospitals and schools, or port-related projects. Nor does it include the substantial contribution to the development of our transport infrastructure by the private sector as a result of our very successful efforts to promote build-operate-transfer projects, such as the Western Harbour Crossing and the Country Park Section of Route 3.
Even if we confine ourselves to Government spending only, total spending on capital works will be 9% higher in real terms in 1996-97 than 1995-96. Over the Medium Range Forecast period, the real increase in capital works spending will average 7% a year. We established this rate of growth after taking careful account of the capacity of the Lands and Works Group of Departments to undertake the capital works programme in the coming years. Although the total forecast expenditure is somewhat below the level allowed in our expenditure guidelines, it is what we believe to be achievable given our manpower constraints. It also allows a steady expansion of our capital works programme in the years ahead.
The list of capital works projects that require funding in the financial year is included in the Estimates books to give Members as much detail as possible of projects in the pipeline. This list is compiled on the basis of the best information available at the time. As Members suggested, we will try to advance other projects when certain projects cannot proceed as planned. Our intention remains, nevertheless, to provide Members with as much and as up-to-date information as possible so as to enable Members to be fully apprised of projects expected to start in the coming financial year. It will be misleading if we only include in the Estimates projects that have completed all necessary statutory or consultative steps in the planning process. However, we will strive even more in future to allow sufficient lead time for the projects, by bringing forward our planning and consultation wherever possible. This, I hope, will give Members greater confidence in the scheduled start-dates for the projects set out in the Estimates.