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Speech by Secretary for Works on budget debate

Following is the speech by the Secretary for Works, Mr James Blake, on budget debate in the Legislative Council today (Wednesday):

Mr President,

Although the record shows that we continue to close the gap between budgeted and actual expenditure on capital works, some Members have voiced their concern at delays in infrastructural developments, in particular those of a larger scale, such as the sewage strategy and major road projects. One or two Members have also mentioned the possibility of delays in important projects during the transitional period.

Our

I speak today to reassure Members on these important issues. achievements in implementing large-scale capital projects according to programme are good, and are improving. The Capital Works Reserve Fund airport core programme is proceeding very much in line with a tight schedule and strict budget limits. My colleague has spoken on high priority stage of the Strategic Sewage Disposal Scheme which is under construction and running according to a timetable that will get significant improvements in the quality of harbour water from 1997. Major highways and other key infrastructure projects are currently firmly on track for implementation within set programme and budget targets, as members will know from sighting the quarterly Public Works Programme reports sent out by Works Branch.

Members are aware however that the next few years will see significant increases in our capacity to implement on capital works. Whilst we are currently managing to keep works expenditure in line with targets, we are also enhancing the Works group capacity to deliver according to schedule. In this connection, I shall shortly be asking the Finance Committee to approve the setting up of dedicated project management teams in the Works departments, to help ensure the continued effective management of an increasingly complex and extensive capital works programme. This is a further action arising from the major report on uplifting our performance in delivering the PWP, which was completed last year.

Members have also noted that delays in land acquisition can lead to underspending on public works projects. A co-ordinating committee chaired by the Works Branch has been established and is now working to match priorities with resources, as well as restructuring land acquisition procedures so as to improve the predictability of land availability for development. This is another proposal from the report on uplifting performance. I am confident therefore that the transition period will not signal a "tailing off" in Hong Kong's drive to tailor its infrastructure to the social and economic needs of the next century. Our planned PWP for the next five years also underlines my confidence.