XN000022-1984-02-29 — Page 36

WEDNESDAY, FEBRUARY 29, 1984

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CAPITAL WORKS RESERVE FUND

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THE 1984-85 EXPENDITURE FROM THE CAPITAL WORKS RESERVE FUND IS ESTIMATED AT $7.9 BILLION, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID TODAY IN THE LEGISLATIVE COUNCIL.

HE SAID THE PROVISION OF $7.3 BILLION SOUGHT FOR TRANSFER TO THE FUND, AND A SURPLUS OF ABOUT $2.8 BILLION IN THE FUND AT THE END OF FISCAL 1983, WERE SUFFICIENT TO COVER THE EXPENDITURE AND TO RETAIN A PRUDENT SURPLUS AT THE END OF THE FINANCIAL YEAR.

+AT LEAST $1.5 BILLION MUST ANYWAY BE RETAINED IN THE FUND TO OFFSET THE ADVANCE OF $1.45 BILLION TO THE CONSORTIUM FOR THE DEVELOPMENT OF TIN SHUI WAI, HE SAID.

SIR JOHN EXPLAINED THAT THE LIABILITY WOULD REMAIN IN THE ACCOUNTS FOR THE NEXT 12 YEARS OR SO UNTIL THE LAND WAS FORMED AND A PORTION HANDED BACK TO THE CONSORTIUM.

+AS SOON AS THE CONSORTIUM STARTS TO SPEND ON BUILDING WORKS THE ADVANCE CAN BEGIN TO BE CLEARED PROGRESSIVELY AND CHARGED TO THE FUND. ANY UNDERSPENDING BY THE CONSORTIUM ON THE DEVELOPMENT IS RECOVERABLE UNDER THE AGREEMENT+, HE ADDED.

SIR JOHN SAID THE ESTIMATED 1984-85 EXPENDITURE FROM THE FUND ON THE PUBLIC WORKS PROGRAMME WOULD BE $6.8 BILLION OR ABOUT THE SAME AS THE REVISED 1983-84 ESTIMATE, BUT LESS IN REAL TERMS.

THE ESTIMATED LAND ACQUISITION EXPENDITURE WOULD BE $1.1 BILLION, ALSO THE SAME AS THE REVISED 1983-84 ESTIMATE, HE SAID.

SIR JOHN SAID: THE OUTSTANDING COMMITMENT OR OVERHANG IN RESPECT OF PROJECTS IN HAND ON MARCH 31, 1983, WAS ABOUT $21.4 BILLION. THIS WAS INCREASED BY ABOUT $5.1 BILLION AS A RESULT OF THE INJECTION OF NEW PROJECTS DURING 1983-84, BUT REDUCED BY ROUGHLY 7.9 BILLION IN EXPENDITURE.

+DURING 1984-85 WORK IS SCHEDULED TO START ON NEW PROJECTS HAVING A TOTAL COMMITMENT VALUE OF ABOUT $4.9 BILLION. THE OVERHANG ON APRIL 1, 1984, WILL BE ABOUT $23.5 BILLION.+

HE SAID THAT AFTER ALLOWING FOR THE ESTIMATED EXPENDITURE DURING 1984-85 OF $7.9 BILLION, THE OUTSTANDING COMMITMENT AT MARCH 31, 1985, COULD NOT BE LESS THAN $15.6 BILLION, BUT WOULD CERTAINLY BE MUCH HIGHER AS FURTHER NEW WORKS WERE APPROVED DURING THE YEAR.

+THIS REPRESENTS A MAJOR COMMITMENT FOR THE FUTURE,+ HE ADDED.

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