XN000022-1992-03-04 — Page 36

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WEDNESDAY, MARCH 4, 1992

MR YEUNG SAID AT PRESENT, BECAUSE THE EXPENSES OF ALL THESE SERVICES WERE CHARGED ΤΟ THE EMSD HEAD OF EXPENDITURE, IT WAS DIFFICULT FOR USER DEPARTMENTS TO BE FULLY AWARE OF THE COSTS INVOLVED IN MAINTAINING THEIR RESPECTIVE FLEETS OF VEHICLES.

HE SAID THE VEHICLE SECTION OF EMSD HAD BEEN IDENTIFIED AS A POSSIBLE CANDIDATE FOR THE INTRODUCTION OF A TRADING FUND.

"AS A FIRST STEP IN THIS DIRECTION, THE CHIEF SECRETARY HAS APPROVED A PROPOSAL TO INTRODUCE CHARGING FOR EMSD'S VEHICLE MAINTENANCE SERVICES THROUGH THE MECHANISM OF A SPECIAL SUSPENSE ACCOUNT.

OR HE

"UNDER THE PUBLIC FINANCE ORDINANCE, A SPECIAL SUSPENSE ACCOUNT MAY BE ESTABLISHED FOR THE PURPOSE OF ANY COMMERCIAL INDUSTRIAL ACTIVITY CARRIED ON BY OR ON BEHALF OF THE GOVERNMENT," SAID.

MR YEUNG SAID ONCE THE SPECIAL EXPENSE ACCOUNT CAME INTO OPERATION, THE EXPENSES INCURRED BY THE EMSD IN PROVIDING VEHICLE MAINTENANCE AND ANCILLARY SERVICES WOULD BE DEBITED TO THE ACCOUNT, WHILE THE CHARGES PAID BY USER DEPARTMENTS AND OTHER PUBLIC BODIES FOR SERVICES RENDERED WOULD BE CREDITED TO IT.

HE SAID ANY DEBIT BALANCE IN THE ACCOUNT WILL REPRESENT A LEVEL OF INDEBTEDNESS.

HE NOTED THAT AS THIS DEBT WOULD BE A CHARGE TO THE GENERAL REVENUE, CLAUSE (f) OF THE RESOLUTION PROVIDED THAT THE AMOUNT OF SUCH DEBT SHOULD NOT EXCEED $70 MILLION AT ANY TIME.

HE SAID THIS WAS THE LIMIT WHICH THE LEGISLATIVE COUNCIL HAD SET IN RESPECT OF THE SPECIAL SUSPENSE ACCOUNT ESTABLISHED ON DECEBMER 1, 1990 FOR FINANCING THE PURCHASE AND HOLDING OF STORES BY THE EMSD.

"THIS CLAUSE ALSO PROVIDES THAT THE FINANCIAL SECRETARY MAY SET A LOWER LIMIT TO ENSURE TIGHTER CONTROL, HE ADDED.

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