XN000022-1982-01-20 — Page 9

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WEDNESDAY, JANUARY 20, 1982

MR BREMRIDGE SAID THIS COULD BE MISLEADING IF VIEWED IN ISOLATION, AND NOT SEEN IN RELATION TO THE SIZE OF THE OUTSTANDING COMMITMENT IN RESPECT OF CAPITAL WORKS.

AT THE END OF MARCH 1982, FOR INSTANCE, THE OVERHANG WOULD BE MORE THAN $22 000 MILLIONS, COVERING WORKS THAT WOULD TAKE MORE THAN FOUR YEARS TO COMPLÉTE, HE SAID.

WITH THE ESTABLISHMENT OF THE CAPITAL WORKS RESERVE FUND, HOWEVER, EXPENDITURE ON THE PUBLIC WORKS PROGRAMME AND ON LAND ACQUISITION WOULD BE REMOVED FROM THE ANNUAL ESTIMATES.

THE AMOUNT TO BE TRANSFERRED FRCM GENERAL REVENUE TO THE FUND EACH YEAR WOULD BE CONSIDERED IN THE CONTEXT OF THE BUDGET FOR THAT YEAR, MR BREMRIDGE SAID, STARTING WITH HIS BUDGET PROPOSALS FOR 1982/83, AND APPROPRIATION WOULD BE SOUGHT FROM THE COUNCIL IN THE NORMAL WAY.

+ THE EXISTING PUBLIC WORKS PROGRAMME PROCEDURES WILL CONTINUE TO APPLY, AND FINANCE COMMITTEE'S CONTROL OF EXPENDITURE ON CAPITAL WORKS WILL REMAIN UNCHANGED, HE SAID.

MR BREMRIDGE DREW PARTICULAR ATTENTION TO CLAUSE (F) OF THE MOTION WHICH PROVIDES THAT THE FINANCIAL SECRETARY MAY FROM TIME TO TIME TRANSFER FROM THE FUND TO GENERAL REVENUE ANY BALANCE IN THE FUND.

+THE PURPOSE OF THIS CLAUSE IS TO ALLOW ANY ACCUMULATED SURPLUS IN THE FUND IN EXCESS OF REQUIREMENTS TO BE CREDITED BACK TO GENERAL REVENUE SHOULD THE NEED AT ANY TIME ARISE.

+I HOPE THAT THE NEED WILL INDEED NEVER ARISE. BUT IT IS NOT THE INTENTION OF THE PROPOSED ARRANGEMENT TO HYPOTHECATE REVENUE: THIS CLAUSE IS THUS NECESSARY TO ENSURE THAT FUNDS ARE NOT STERILISED IN THE CAPITAL WORKS REVENUE FUND SHOULD (FOR REASONS THAT CANNOT BE ANTICIPATED) THE RECURRENT BUDGET RUN

INTO DIFFICULTIES.◄

+1 HOPE MOREOVER THAT THE PUBLIC WILL VIEW THE SUMS APPROPRIATED FOR THIS RESERVE, MOST OF WHICH WILL COME FROM LAND SALES, AS EVIDENCE THAT WE ARE RETURNING TO INVESTMENT IN HONG KONG THE SURPLUSES THAT ARISE FROM LAND SALES WHICH ARE OFTEN LUMPY AND UNPREDICTABLE.+

MR BREMRIDGE ALSO SAID THAT THERE WAS A RIDICULOUS SUSPICION THAT GENERAL REVENUE ACCOUNT SURPLUSES HELD IN OUR RESERVES WERE NOT REALLY INTENDED FOR HONG KONG ENDS.

+1 HOPE THAT THE CREATION OF THIS RESERVE FUND WILL TELL THE TRUE STORY AND LEAD TO A MORE BUSINESSLIKE PROCEDURE WITH REGARD TO THE HUGE PUBLIC WORKS PROGRAMME, HE ADDED.

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