XN000022-1985-09-10 — Page 5

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TUESDAY, SEPTEMBER 10, 1981

+ IT WILL BE NECESSARY TO DRAW ON THE RESERVES IN 1986/87 TO COVER THE FORECAST SHORTFALL BETWEEN REVENUE AND EXPENDITURE.

+THE CUMULATIVE EFFECT OF THE EXPECTED DEFICITS IN 1985/86 AND 1986/87 WILL COMPLETELY EXHAUST AND EXCEED THE RESERVES BY $22 MILLION. ADDITIONAL REVENUE WILL THEREFORE BE REQUIRED IN 1986/87 SO AS TO MAINTAIN RESERVES AT A REASONABLE LEVEL, HE SAID.

FOR THIS AND OTHER FINANCIAL REASONS, HE ADDED, THE COUNCIL'S WORKING GROUP ON AMENDING THE MEMORANDUM OF ADMINISTRATIVE ARRANGEMENTS WITH THE CENTRAL GOVERNMENT WAS CONTINUING ITS DIALOGUE WITH THE FINANCE BRANCH IN RESPECT OF THE COUNCIL'S FINANCIAL FUTURE.

MR FORSGATE FELT THAT THE DEFICITS NOW FACING THE COUNCIL EMPHASISED THE IMPORTANCE OF THE REGULAR ANNUAL REVIEWS CONDUCTED BY THE SELECT COMMITTEES ON THE VARIOUS FEES AND CHARGES UNDER THEIR CONTROL.

EVEN THOUGH THESE ARE RECOGNISED AS BEING ONLY

SECONDARY SOURCES OF REVENUE, HE SAID, THE COUNCIL COULD NOT AFFORD TO OVERLOOK ANY REVENUE SOURCES, NO MATTER HOW SMALL, IN THE PRESENT FINANCIAL CLIMATE IF IT WAS TO CONTINUE TO MAINTAIN THE STANDARDS OF ITS SERVICES.

FURTHERMORE, HE SAID, THE URBAN SERVICES DEPARTMENT WAS EXPLORING THE INTRODUCTION OF MORE MODERN AND COST EFFECTIVE TECHNIQUES TO KEEP PACE WITH CHANGING CIRCUMSTANCES AND ACTIVELY PURSUING MANAGEMENT SERVICES STUDIES. AND BASED ON THE DETAILED REPORTS THAT HAD ALREADY BEEN PREPARED, HE EXPECTED SUBSTANTIAL COST SAVINGS AND IMPROVED EFFICIENCY.

IN CONCLUSION, MR FORSGATE STRESSED THAT THE COUNCIL, WHILE EXERCISING ALL REASONABLE ECONOMIES, DID NOT WISH TO REDUCE THE MANIFOLD SERVICES THAT THE 4 MILLION URBAN DWELLERS HAD BECOME ACCUSTOMED TO AND WERE ENTITLED TO CONTINUE RECEIVING.

POWERS OF URBAN COUNCIL NOT DILUTED ****

THE POWERS OF THE URBAN COUNCIL REMAIN PRECISELY AS THEY WERE BEFORE THE ESTABLISHMENT OF THE MUNICIPAL SERVICES BRANCH AND THEY HAVE IN NO WAY BEEN DILUTED.

THIS WAS STATED BY THE CHAIRMAN OF THE ADMINISTRATION SELECT COMMITTEE, DR KIM CHAM WHEN REPLYING TO A QUESTION BY MR SAMUEL WONG AT TODAY'S OPEN MEETING OF THE URBAN COUNCIL, WHICH IS THE FIRST TO BE HELD AFTER THE SUMMER RECESS.

/+THE CHANGES