XN000022-1992-04-29 — Page 13

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WEDNESDAY, APRIL 29, 1992

"OVER BILLION ON THROUGH THE TECHNOLOGY.

THE NEXT FIVE YEARS, THE MTRC HAS BUDGETED TO SPEND $5 MAJOR CAPITAL PROJECTS TO UPGRADE THE EXISTING SYSTEM PROVISION OF NEW FACILITIES AND APPLICATION OF MODERN

"THIS UNDERLINES ITS COMMITMENT TO OPERATING AND MAINTAINING A FIRST-CLASS RAILWAY," THE FINANCIAL SECRETARY SAID.

AIRPORT PROJECTS ON SCHEDULE: SES

THERE IS NO CASE FOR RELAXING THE TIMETABLE FOR THE IMPLEMENTATION OF THE AIRPORT CORE PROGRAMME IN ECONOMIC TERMS, THE SECRETARY FOR ECONOMIC SERVICES, MRS ANSON CHAN, SAID TODAY

(WEDNESDAY) AT THE LEGISLATIVE COUNCIL.

SAID

THE SECRETARY

IN REPLY TO A QUESTION BY THE HON HENRY TANG, IT REMAINED THE GOVERNMENT'S VIEW THAT BVEN ONE YEAR OF "SATURATION" AT KAI TAK SHOULD BE AVOIDED IF AT ALL POSSIBLE, LET ALONE THE THREE YEARS NOW EXPECTED.

TO IMPLEMENT THE IMPACT THEY

"EVERY EFFORT WILL CONTINUE TO BE MADE PROGRAMME OF WORKS IN A WAY THAT EASES ANY INFLATIONARY

HAVE.

MAY

"STRINGENT COST CONTROLS AND THE IMPORTATION OF LABOUR ARE IMPORTANT MEASURES WHICH WILL ASSIST IN MEETING THIS OBJECTIVE," SHE SAID.

THE SECRETARY SAID EARLIER PREDICTIONS THAT ΚΑΙ TAK MIGHT BECOME SATURATED AS EARLY AS 1993 WERE BASED ON THE ASSUMPTION OF A CONTINUING TREND IN GROWTH IN AIR TRAFFIC OF AROUND 10 PER CENT PER ANNUM.

AS A RESULT OF THE GULF WAR AND A CONTINUING DOWNTURN IN WORLD ECONOMIES LAST YEAR, AIR TRAFFIC VOLUMES WORLDWIDE SLUMPED LAST YEAR AND KAI TAK RECORDED AN INCREASE OF ONLY ABOUT 2.5 PER CENT IN AIR PASSENGERS AND 3.7 PER CENT IN AIRCRAFT MOVEMENTS IN THAT YEAR.

THE

AS A RESULT, MRS CHAN SAID IT WAS SAFE TO ASSUME THAT SITUATION AT KAI TAK WAS LIKELY TO BE LESS CRITICAL NEXT YEAR THAN PREVIOUSLY EXPECTED.

NEVERTHELESS, SHE ADDED THAT IT WAS STILL LIKELY THAT, BY MID- 1994, SEVERE PROBLEMS WOULD EMERGE AS AIRLINES BECAME UNABLE TO FIND ACCEPTABLE LANDING SLOTS AT KAI TAK.

IS

"PROBLEMS IN THIS RESPECT ARE ALREADY OCCURRING AT KAI TAK; IT ONLY A MATTER OF DEGREE.

"BY MID-1994, THE SITUATION IS LIKELY TO HAVE BECOME SO SERIOUS THAT THE ECONOMY AS A WHOLE WILL BEGIN то SUFFER SIGNIFICANT DISBENEFITS AS IT BECOMES IMPOSSIBLE TO PROVIDE AIRPORT CAPACITY ΤΟ MEET GROWING AIR TRAFFIC DEMANDS," SHE ADDED.

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