XN000022-1985-04-18 — Page 6

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THURSDAY, APRIL 18, 1985

BILL CLEARS WAY FOR DIRECT PAYMENTS

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IT IS A REQUIREMENT OF ANNEX III TO THE JOINT DECLARATION ON THE FUTURE OF HONG KONG THAT PREMIUM INCOME FROM LAND TRANSACTIONS SHOULD BE PAID DIRECTLY INTO THE CAPITAL WORKS RESERVE FUND INSTEAD OF BEING PASSED THROUGH GENERAL REVENUE AS AT PRESENT, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID IN THE LEGISLATIVE COUNCIL TODAY.

MOVING THE SECOND READING OF THE PUBLIC FINANCE (AMENDMENT) BILL 1985, SIR JOHN SAID THE BILL SOUGHT TO AMEND THE PRINCIPAL ORDINANCE UNDER WHICH THE CAPITAL WORKS RESERVE FUND WAS ESTABLISHED, IN ORDER TO ENABLE THIS COUNCIL TO SPECIFY BY RESOLUTION THAT CERTAIN MONEYS SHOULD BE CREDITED DIRECTLY TO A FUND WITHOUT THE NEED FOR APPROPRIATION.

HE SAID HE INTENDED, ON ENACTMENT OF THE BILL, TO MOVE A RESOLUTION UNDER THE AMENDED SECTION 29 THAT WOULD CAUSE LAND REVENUE TO BE PAID DIRECTLY INTO THE CAPITAL WORKS RESERVE FUND.

SUCH MONEYS WOULD BE DEEMED TO BE APPROPRIATED, HE SAID.

+FOR THE AVOIDANCE OF DOUBT, THE PROVISIONS OF THE BILL WILL EXTEND TO RESOLUTIONS ALREADY PASSED THAT SPECIFY THE CREDITING OF CERTAIN MONEYS DIRECTLY TO FUNDS, SIR JOHN SAID.

DEBATE ON THE BILL WAS ADJOURNED.

AUDITING OF CAPITAL WORKS RESERVE FUND PROPOSED

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IT WAS IMPORTANT THAT THE STATUS OF THE ANNUAL ACCOUNTS OF THE CAPITAL WORKS RESERVE FUND SHOULD BE PLACED BEYOND QUESTION, SO AS TO DEMONSTRATE CLEARLY THAT THE TERMS OF THE JOINT DECLARATION ON THE FUTURE OF HONG KONG WERE BEING COMPLIED WITH, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID IN THE LEGISLATIVE COUNCIL TODAY,

THE USE TO BE MADE IN FUTURE OF THE CAPITAL WORKS RESERVE FUND WAS LAID DOWN IN ANNEX 11 OF THE AGREEMENT, SIR JOHN SAID WHEN MOVING THE SECOND READING OF THE AUDIT (AMENDMENT) BILL 1985.

HE SAID THAT THE BILL SOUGHT TO AMEND THE PRINCIPAL ORDINANCE TO PROVIDE FOR ANNUAL ACCOUNTS OF THE CAPITAL WORKS RESERVE FUND TO BE TRANSMITTED BY THE DIRECTOR OF ACCOUNTING SERVICES TO THE DIRECTOR OF AUDIT.

/+HT WILL