XN000022-1985-07-09 — Page 15

TUESDAY, JULY 9, 1985

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COUNCIL RECORDS +PAPER SURPLUS+ OF $32 MILLION

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BECAUSE OF A DELAY IN BILLINGS AND AN INCREASE IN INCOME FROM SECONDARY AND MISCELLANEOUS SOURCES, THE URBAN COUNCIL RECORDED A +PAPER SURPLUS+ OF $32 MILLION FOR 1984/85, INSTEAD OF THE ANTICIPATED DEFICIT.

THIS WAS SAID TODAY BY MR H.M.G. FORSGATE, VICE CHAIRMAN OF THE URBAN COUNCIL AND CHAIRMAN OF ITS FINANCE SELECT COMMITTEE, WHEN THE COUNCIL'S UNAUDITED ANNUAL ACCOUNTS FOR 1984/85 WERE TABLED.

MR FORSGATE SAID: THIS TURN-AROUND WAS MAINLY ATTRIBUTABLE TO UNDERSPENDING ON CAPITAL PROJECTS AMOUNTING TO $126 MILLION, A LARGE PROPORTION OF WHICH WILL REMAIN A COMMITMENT SINCE IT MUST BE CARRIED FORWARD TO THE PRESENT FINANCIAL YEAR.

+ANOTHER CONTRIBUTORY FACTOR WAS THAT THE MOST STRINGENT ECONOMIES WERE PUT INTO FORCE DURING THE YEAR, INCLUDING THE STRICTEST CONTROLS ON STAFFING LEVELS, THE ADOPTION OF TIGHTER FINANCIAL CONTROLS AND IMPROVED MANAGEMENT AND OPERATIONAL EFFICIENCY MEASURES,

+ON TOP OF THIS, EVERY PROJECT AND FINANCIAL PROPOSAL WAS PAINSTAKINGLY RE-EXAMINED INTERNALLY AND 'FINE-TUNED' AS MUCH AS POSSIBLE BEFORE BEING SUBMITTED TO THE COUNCIL FOR APPROVAL.

+ON PRESENT INDICATIONS AND PRESUMING THAT THE BILLINGS COME IN ON TIME FOR THE LATEST CAPITAL WORKS PROJECTS -- THE COUNCIL WILL RECORD A DEFICIT OF ABOUT $180 MILLION IN THE PRESENT FINANCIAL YEAR, REDUCING ITS RESERVES TO ABOUT $140 MILLION, OR THE EQUIVALENT OF LESS THAN ONE MONTH'S EXPENDITURE.

+FOR THIS AND OTHER FINANCIAL REASONS, THE COUNCIL'S WORKING GROUP ON AMENDING THE MEMORANDUM OF ADMINISTRATIVE ARRANGEMENTS WITH THE CENTRAL GOVERNMENT IS CONTINUING ITS DIALOGUE WITH THE FINANCE BRANCH CONCERNING THE COUNCIL'S FINANCIAL FUTURE.+

MR FORSGATE STRESSED THAT THE COUNCIL'S POSITION WAS THAT THE COUNCIL, WHILE EXERCISING ALL REASONABLE ECONOMIES, DID NOT WISH TO REDUCE THE MANIFOLD SERVICES THAT THE 4.5 MILLION URBAN DWELLERS OF HONG KONG HAD BECOME ACCUSTOMED TO, AND WERE IN THE COUNCIL'S OPINION ENTITLED TO CONTINUE RECEIVING.

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