XN000022-1990-10-31 — Page 12

WEDNESDAY, OCTOBER 31, 1990

10

PADS TO BRING BENEFITS FAR GREATER THAN COST

**

WHEN COMPLETED WILL FINANCIAL BENEFITS SECRETARY, FINANCIAL

FAR

SIR

THE NEW AIRPORT AND RELATED FACILITIES BRING ΤΟ HONG KONG LONG-TERM ECONOMIC AND GREATER THAN THE COST OF INVESTMENT, THE PIERS JACOBS, SAID TODAY (WEDNESDAY).

SPEAKING AT

THE LEGISLATIVE COUNCIL'S RESUMED DEBATE

THESE BENEFITS SIR PIERS SAID SPEECH, POLICY GOVERNOR'S ENJOYED WELL INTO THE NEXT CENTURY.

ON WILL

THE

BE

AND THE CLEARLY, THE CONSTRUCTION OF THE REPLACEMENT AIRPORT

A VERY SUBSTANTIAL RELATED TRANSPORT INFRASTRUCTURE DOES INVOLVE

TO

THAT THE UNDERLINE

FACT "BUT I WISH COMMITMENT. FINANCIAL

IN HONG KONG'S INVESTMENT IN THE AIRPORT PROGRAMME IS INVESTMENT FUTURE, HE SAID

[]

SIR PIERS SAID THE KEY FACTOR ENABLING THE GOVERNMENT TO DECIDE KONG'S FINANCIAL ON PROCEEDING WITH THE AIRPORT PROGRAMME WAS HONG

STRENGTH.

OVER "I

HAVE IN MIND, FIRST, THE VERY SUBSTANTIAL RESERVES OF

THROUGH PRUDENT $70 BILLION WHICH WE HAVE BUILT UP IN RECENT YEARS MANAGEMENT. THIS COMPARES WITH RESERVES OF ONLY $24 BILLION FIVE YEARS

AGO.

"SECONDLY, I HAVE IN MIND THE SPECIAL

ADMINISTRATIVE

REGION

GOVERNMENT LAND FUND," HE SAID.

BE

SIR PIERS SAID WHILE THE SAR GOVERNMENT LAND FUND WOULD NOT PART OF THE RESERVES UNTIL JULY 1997, IT CONSISTED OF INCOME FROM LAND SALE PREMIA WHICH PREVIOUSLY WOULD HAVE GONE INTO THE RESERVES.

'THE LAND FUND IS CLEARLY OF RELEVANCE WHEN ASSESSING THE LONG- STRENGTH TERM STRENGTH OF HONG KONG'S FINANCES, AND PARTICULARLY THE

INHERIT ON OF THE FINANCIAL SITUATION WHICH THE SAR GOVERNMENT WILL

** HE SAID. ITS ESTABLISHMENT IN 1997,

SAR GOVERNMENT

YEAR

SIR PIERS SAID THE BALANCE TRANSFERRED TO THE LAND FUND ALREADY STOOD AT OVER $17 BILLION AT THE END OF FISCAL 1989-90.

ABOUT FUTURE LAND "EVEN ON FAIRLY CONSERVATIVE ASSUMPTIONS

BY SALES AND INTEREST, THE LAND FUND SHOULD BE WELL OVER $70 BILLION

RESERVES. MARCH 1997 THAT IS TO SAY, MORE THAN OUR EXISTING

-

GOVERNMENT "OUR FINANCIAL PLANNING ASSUMES THAT THE HONG KONG

PROVISIONS OF THE DOES NOT DRAW AT ALL ON THE LAND FUND UNDER THE

HE SAID. RELEVANT SECTION OF THE SINO-BRITISH JOINT DECLARATION,

AN

"

HAVE THUS,

WHEN THE SAR GOVERNMENT CAME INTO BEING, IT SHOULD

A

IMPROVED PRODUCE

GREATLY REVENUE, WOULD AIRPORT WHICH

REVENUE-PRODUCING, AND INFRASTRUCTURE, MUCH OF WHICH WOULD ALSO BE SOMEWHAT LARGER RESERVES THAN WE PRESENTLY ENJOY.

/SIR PIERS

T