XN000022-1990-01-18 — Page 4

THURSDAY, JANUARY 18, 1990

HE SAID AFFORDABILITY AS A GOVERNMENT AND AS A THE RECOMMENDED TIME FRAME WAS ANOTHER DECIDING FACTOR.

COMMUNITY IN

"AS A BUDGETARY GUIDELINE, THE GROWTH OF PUBLIC EXPENDITURE SHOULD NOT BE ALLOWED TO EXCEED THE FORECAST TREND GROWTH RATE OF THE GROSS DOMESTIC PRODUCT.

"IT IS IMPORTANT THAT OUR SPENDING LEVELS ARE PLANNED BY REFERENCE TO WHAT THE ECONOMY CAN SUPPORT AND NOT BY THE REVENUE AVAILABLE.

"OTHERWISE, WE WOULD ONLY EXERT INFLATIONARY

PRESSURE ON THE

ECONOMY AND OBTAIN LESS REAL GAIN FROM OUR SPENDING, HE SAID.

AS AN EXAMPLE, SIR PIERS IDENTIFIED THE CONSIDERATIONS WHICH THE GOVERNMENT HAD TAKEN INTO ACCOUNT IN THE COURSE OF FORMULATING THE PORT AND AIRPORT DEVELOPMENT STRATEGY (PADS 1.

HE SAID THESE CONSIDERATIONS INCLUDED THE OPTIMAL SPLIT OF PUBLIC AND PRIVATE SECTOR PARTICIPATION; THE ECONOMIC IMPACT OF IMPLEMENTING AND NOT IMPLEMENTING THE STRATEGY; THE CONSTRAINTS EXPERIENCED OR ENVISAGED BY HONG KONG'S CONSTRUCTION INDUSTRY; AND THE AVAILABILITY OF FUNDS FROM BOTH GOVERNMENT AND PRIVATE SOURCES OF FINANCING.

ONE FURTHER FACTOR IN THE DECISION-MAKING PROCESS WAS 'ГНЕ RECOGNITION THAT BY PUTTING THE DEVELOPMENT OF THE REPLACEMENT AIRPORT AS OUR PRIORITY ITEM, EXPENDITURE ON AND DEVELOPMENT IN OTHER PROGRAMME AREAS WOULD HAVE TO BE CONSTRAINED AND SUITABLY ADJUSTED, HE ADDED.

L

AN ANALYSIS OF THE PUBLIC SECTOR CAPITAL WORKS EXPENDITURE BY POLICY AREAS IN THE FIVE-YEAR PERIOD SHOWED THAT CIVIL AND ENGINEERING AND WORKS WOULD TAKE UP $16.3 BILLION: TRANSPORT INFRASTRUCTURE $12.7 BILLION; PADS $8.2 BILLION; ENVIRONMENTAL PROTECTION $7.9 BILLION AND GOVERNMENT ACCOMMODATION $5.6 BILLION.

PUBLIC CAPITAL WORKS CONNECTED WITH HEALTH AND WELFARE WOULD COST 84.9 BILLION; ECONOMIC SERVICES $3 BILLION; SECURITY $2.5 BILLION: EDUCATION $2.2 BILLION: RECREATION AND SPORT 21

BILLION

AND COMMUNITY BUILDING $0.5 BILLION.

ON THE FUNDING OF PROJECTS, SIR PIERS SAID THIS WOULD COME FROM DIFFERENT SOURCES.

WHILE

DIRECTLY PROJECTS

BY

THE

BY THE GOVERNMENT IN

ORGANISATIONS

ΤΗΣ

THE

WERE

LOTTERIES FUND

AND

FUNDED AND IMPLEMENTED GOVERNMENT (ITEMS IN THE PUBLIC WORKS PROGRAMME WERE FINANCED

THOSE FUNDED BY CAPITAL WORKS RESERVE FUND,

SUBVENTED FORM OF SUBVENTIONS AND CARRIED OUT BY FINANCED BY

WORKS RESERVE FUND,

THE CAPITAL

SUPPLEMENTED BY PRIVATE DONATIONS.

/PROJECTS FUNDED