XN000022-1992-11-18 — Page 8

WEDNESDAY, NOVEMBER 18, 1992

BILL SEEKS TO SET UP TRADING FUNDS IN DEPARTMENTS

FRAMEWORK GOVERNMENT TODAY

THE TRADING FUNDS BILL WHICH SEEKS

A TO PROVIDE FOR THE SUBSEQUENT SETTING UP OF TRADING FUNDS IN CERTAIN DEPARTMENTS

COUNCIL LEGISLATIVE

(WEDNESDAY).

WAS

INTRODUCED INTO THE

MOVING THE SECOND READING OF THE BILL, THE ACTING SECRETARY FOR FUND WAS A THE TREASURY, MR KWONG KI-CHI, EXPLAINED THAT A TRADING FINANCIAL

DEPARTMENT AND ACCOUNTING ARRANGEMENT WHICH WOULD ENABLE A

WHILE OPERATE MORE LIKE BUSINESSES, WHERE THIS WAS APPROPRIATE, REMAINING AS PART OF THE GOVERNMENT.

TO

THE

IS OBJECTIVE CUSTOMERS, MR KWONG SAID.

ΤΟ IMPROVE THE QUALITY OF

SERVICE

TO

A DEPARTMENT OPERATING UNDER A TRADING FUND WOULD RECEIVE

ITS CUSTOMERS, IN THE PRIVATE OR PUBLIC SECTOR, SERVICES PROVIDED UNDER A FUND.

PAYMENTS FROM

SUCH PAYMENTS GENERAL REVENUE.

MR

KWONG

FOR

WOULD BE CREDITED TO THE FUND

RATHER

THAN

TO

EXPLAINED THAT THE DEPARTMENT WOULD MEET EXPENDITURE FROM THE FUND, AND IT WOULD BE REQUIRED TO BALANCE AND EXPENDITURE, TAKING ONE YEAR WITH ANOTHER.

ITS

INCOME

"THIS ARRANGEMENT WOULD ENABLE A DEPARTMENT WHICH PROVIDES SERVICES ON A COST-RECOVERY BASIS TO RESPOND TO THE CHANGING NEEDS ITS FEE-PAYING CLIENTS MORE PROMPTLY," HE SAID,

OF

HE POINTED OUT THAT SUCH A PROMPT REACTION TO CHANGES IN DEMAND UNDER WHICH WAS INHIBITED BY THE EXISTING SYSTEMS OF ACCOUNTABILITY FUNDS WERE ALLOCATED AT THE BEGINNING OF EACH FINANCIAL YEAR.

MR KWONG EMPHASISED THAT THE SETTING UP OF TRADING FUNDS NOT CHANGE THE STATUS OF DEPARTMENTS IN ANY WAY.

WOULD

"DEPARTMENTS OPERATING UNDER TRADING FUNDS WOULD REMAIN

DEPARTMENTS; THEIR ASSETS WOULD REMAIN GOVERNMENT GOVERNMENT

ASSETS; THEIR STAFF WOULD REMAIN CIVIL SERVANTS," MR KWONG SAID.

A TRADING LEGISLATIVE COUNCIL.

FUND WOULD BE ESTABLISHED BY A

RESOLUTION

OF

THE

THE RESOLUTION WOULD APPROPRIATE ΤΟ THE FUND THE ASSETS INJECTIONS EMPLOYED IN THE DESIGNATED OPERATIONS AND MAY PROVIDE CASH BOTH FROM THE CAPITAL INVESTMENT FUND AND FROM THE LOAN FUND.

ON THE MANAGEMENT OF THE FUND, MR KWONG SAID A CHIEF WOULD BE APPOINTED TO CONTROL AND MANAGE EACH TRADING FUND.

EXECUTIVE

AND

THE CHIEF EXECUTIVE WOULD ALSO NEED TO DEVISE PROCUREMENT FINANCIAL REGULATIONS APPROPRIATE TO THE TRADING FUND'S OPERATION, SUBJECT TO ANY DIRECTION THE FINANCIAL SECRETARY MAY ISSUE.

/AS THE