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We have carried out a review of the existing arrangements and has concluded that the management of Unallocated Stores items for waterwork facilities should be transferred from GSD to WSD. This will provide a single source of funding and a single source of authority for controlling and managing the appropriate level of stock. It will enable WSD to provide a more efficient waterworks maintenance service as procedures for stock provisioning and requisition will be streamlined and simplified. I propose, therefore, to establish a special suspense account under Section 30(1) of the Public Finance Ordinance for WSD to take over the unallocated waterworks stores iterns from the GSD.
I also propose that the Account shall not in any time be in debt to an amount exceeding $100 million. This value is based on the highest level of stockholding in the past five years at $60 million, and a 10% annual increase for growth, inflation and contingency in the coming five years. In determining the appropriate statutory limit, I have to strike a balance between the need to provide adequate stocks for the smooth operation of waterworks activities, and the need to avoid tying up Government funds unnecessarily for the purpose. I shall adjust the amount administratively each year to ensure that only the minimum level is provided.
Section 30(1) of the Public Finance Ordinance provides that a special suspense account may be established for the purpose of any commercial or industrial activity carried on by or on behalf of the Government. Special suspense accounts for financing stores have already been established in the Government Supplies Department and the Electrical & Mechanical Services Department.
Mr President, I beg to move.
End
Resolution on Rabies (Amendment) Regulation
Following is the speech by Secretary for Economic Services, Mr Stephen Ip, in moving a resolution to extend the vetting period in respect of the Rabies (Amendment) Regulation 1996 in the Legislative Council today (Wednesday):
Mr President,
I move the resolution standing in my name on the Order Paper.