XN000022-1984-02-29 — Page 12

WEDNESDAY, FEBRUARY 29, 1984

10

*A LARGE NUMBER OF THESE ARE REQUIRED FOR THE NEW PRINCE OF WALES HOSPITAL IN SHA TIN AND FOR THE POLICE FORCE,+ HE SAID ADDING, OUR AIM NOW WILL BE TO KEEP ANNUAL CIVIL SERVICE GROWTH OVERALL TO BELOW 2-1/2 PER CENT FOR THE FORESEEABLE FUTURE.+

SIR JOHN CONTINUED:+WHILE WE MUST FIND STAFF FOR NEW FACILITIES AS THEY COME ON STREAM, WE SHALL SEEK TO PROVIDE THEM SO FAR AS POSSIBLE BY INCREASED PRODUCTIVITY AND REDEPLOYMENT. VALUE FOR MONEY STUDIES WILL CONTINUE TO SEEK OUT MEANS OF ACHIEVING THESE AIMS. I ATTACH GREAT IMPORTANCE TO MEASURES DESIGNED TO PROMOTE INCREASES IN PRODUCTIVITY AND VALUE FOR MONEY. SO DOES THE CIVIL SERVICE AS A WHOLE.+

HE SAID PERSONNEL RELATED EXPENSES AT $2.15 BILLION ACCOUNTED FOR 8.6 PER CENT OF RECURRENT EXPENDITURE COMPARED WITH AN AVERAGE OF 7.2 PER CENT OVER THE PAST FIVE YEARS, THE INCREASE BEING DUE PRINCIPALLY TO HOME PURCHASE ALLOWANCES PAYABLE TO CIVIL SERVANTS JOINING THE HOME PURCHASE SCHEME INTRODUCED IN NOVEMBER 1981 AND TO INCREASES IN THE NUMBER OF PENSIONERS AND IN THE COST OF EDUCATION AND PASSAGE ALLOWANCES.

SIR JOHN SAID $6.66 BILLION FOR SUBVENTIONS REPRESENTED 26.5 PER CENT OF RECURRENT EXPENDITURE, COMPARED WITH AN AVERAGE OF 26 PER CENT OVER THE PAST FIVE YEARS.

+THIS IS LARGELY DUE TO SUBSTANTIAL INCREASES IN EXPENDITURE ON TERTIARY EDUCATION, WHICH I AM SURE THAT MEMBERS WELCOME, HE ADDED.

ON CAPITAL ACCOUNT, HE SAID THE PROVISION SOUGHT WAS $10.4 BILLION, INCLUDING $200 MILLION IN ADDITIONAL COMMITMENTS AND $8.7 BILLION FOR TRANSFERS TO FOUR OF THE FUNDS, THE LARGEST PORTION GOING TO THE CAPITAL WORKS RESERVE FUND.

THERE WAS NO NEED THIS YEAR FOR A TRANSFER TO THE HOME OWNERSHIP FUND, WHICH HAD SUFFICIENT RESERVES AS A RESULT OF INTERNAL GENERATION OF INCOME. THE TRANFERS TO THE FUNDS PLUS THE ESTIMATED REVENUE EARNED BY THEM WAS LESS BY $1.1 BILLION THAN THE EXPECTED EXPENDITURE FROM THE FUNDS.

+THUS THE CONSIDERABLE SURPLUS BALANCES LEFT IN THEM AT MARCH 31 1984, WILL BE SERVING PROPERLY AS CUSHION IN DIFFICULT TIMES. BUT THIS USE OF RESERVES AGAIN IS FINITE, + SIR JOHN ADDED.

/11