XN000022-1994-03-02 — Page 32

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WEDNESDAY, MARCH 2, 1994

"I AM NOW FORECASTING AN OVERALL UNDERSPENDING OF $4.1 BILLION, OR UNDER 3% OF OUR ORIGINAL FORFCAST. THE MAJOR PART OF THIS UNDERSPENDING

WAS CAUSED BY THE FAILURE TO REACH AN AGREEMENT ON THE AIRPORT FINANCING PACKAGE.

"AS A RESULT OF THIS, WE HAVE HAD TO POSTPONE THE $3.7 BILLION WE HAD PLANNED TO INJECT INTO THE MTRC."

SIR HAMISH SAID THESE FIGURES ALSO UNDERLINED A WELCOME REDUCTION IN THE LEVEL OF UNDERSPENDING ON THE CAPITAL WORKS PROGRAMME.

IN THE DEBATES ON MY TWO PREVIOUS BUDGETS, MEMBERS EXPRESSED CONSIDERABLE DISQUIET ABOUT OUR INABILITY TO ACHIEVE OUR CAPITAL EXPENDITURF TARGETS.

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1 SHARED THEIR CONCERN AND LAST YEAR ANNOUNCED URGENT STEPS TO IMPROVE OUR PERFORMANCE. I AM GLAD TO SAY THAT THE EFFORTS MADE BY THE SECRETARY OF WORKS AND HIS TEAM HAVE BEGUN TO PAY OFF.

"AFTER EXCLUDING THE EXCEPTIONAL SUBVENTION OF $4.8 BILLION то FINANCE THE TRADE DEVELOPMENT COUNCIL'S CONSTRUCTION OF AN EXTENSION TO THE CONVENTION AND EXHIBITION CENTRE, CAPITAL UNDERSPENDING CAME TO ABOUT $2 BILLION, OR ABOUT 6%. THIS IS A HEARTFNING IMPROVEMENT OVER THE THREE PREVIOUS YEARS.

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HE SAID GOVERNMENT CONSULTANTS HAD RECOMMENDED A NUMBER OF SOLUTIONS TO PARTICULAR PROBLEMS, SUCH AS THE LEAD TIME IN LAND ACQUISITION AND RESUMPTION.

"WB ARE NOW DEVELOPING A PROTOTYPE COMPUTERISED PROJECT MANAGEMENT SYSTEM WHICH HAS THE POTENTIAL TO BECOME ONE OF THE LARGEST SUCH SYSTEMS IN THE WORLD."

SIR HAMISH SAID GOVERNMENT'S FORECASTS OF EXPENDITURE OVER THE MEDIUM-TERM WOULD ASSUME ONLY A GRADUAL RETURN ΤΟ THE LEVELS PREVIOUSLY PLANNED AS CONSULTANTS' RECOMMENDATIONS WOULD TAKE SOME TIME TO FEED THROUGH TO SPENDING PERFORMANCE.

HALF OF PUBLI SPENDING DEVOTED TO HOUSING AND SOCIAL SERVICES

THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, SAID TODAY (WENDESDAY) THAT NEARLY HALF OF TOTAL PUBLIC SPENDING IN HONG KONG WAS DEVOTED TO HOUSING AND THE SOCIAL SERVICES.

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SIR HAMISH SAID: A RECENT STUDY SUGGESTS THAT THE COMPARABLE FIGURE FOR THE UK IS ONE THIRD AND FOR THE UNITED STATES ONLY A FIFTH.

SIR HAMISH ESTIMATED THAT IN 1994/95, TOTAL EXPENDITURE,

EXCLUDING PAYMENTS FROM THE CAPITAL INVESTMENT FUND, WOULD AMOUNT ΤΟ $146 BILLION, AN INCREASE OF $13.6 BILLION COMPARED WITH THE ORIGINAL ESTIMATE FOR 1993/94.

/TOTAL PUBLIC