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Reporter (in Chinese): I have a follow-up question concerning the Capital Works Reserve Funds Suspense Account. The amount shared by the SAR Land Fund in 96-97 was not very high. Can Mr Kwong explain that?
Mr K C Kwong (in Chinese): Well, the answer is this, that the apportionment of the fund is not done immediately after a piece of land is sold. After we have received the land premium for every quarter, we, after deducting the cost of land development, apportion the premium in the following quarter. The amount in the Suspense Account for 96-97 was very high but a portion of which was income in the last quarter of the financial year from January 1, 97 to 31 March 97. According to our established practice, the funds would be allocated to the Land Fund in the following quarter starting from 1 April.
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There have been a number of Reporter (in English): Mr Kwong, I wonder if questions asked about the actual Budget planning process and I for one. I just wish you could take us a little bit inside the room and let us know. I mean the agenda was the same create a Budget. But was there give and take, was it 50/50, did the Chinese side come in with their own plans and concrete numbers? How much give and take was there?
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Mr K C Kwong (in English): You would be bored if I say we have approached the preparation of this Budget in a pragmatic, positive and co-operative manner. But that is true. And also, in the preparation process, it was agreed very early on that the detailed preparation would have to be carried out by the departments in the Hong Kong Government. And the proposals all emanated from the Hong Kong Government departments concerned.
Reporter (in English): You said it's pragmatic and there has been co-operation. But late last year Chen Zou'er said something about welfare spending is like a Formula One car racing, and it could crash, bringing with it the whole population. So did that put the brakes on the welfare spending - proposal like that, just like (inaudible)9.4% increase?
Mr KC Kwong (in English): 1 think all we need to do is look at the list of improvements that will be introduced in 97-98 to see that we have not put a brake on what we feel are necessary improvements in the social welfare sector.
Reporter (in English): No, but they are the same improvements. Every year you have got those extra places for residential elderly, creches, nurseries.
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