XN000022-1997-03-06 — Page 12

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DS for Tsy - Mrs Lam (in Chinese): I think, Ms Chan, you are right that when we look at the expenditure of the Capital Works Reserve Fund in volume II after taking away the $5.5 billion for land resumption, our public works expenditure for 97-98 is about the same as that in 96-97. There is almost no growth in real terms. But we cannot look at infrastructure expenditure on just a one year basis. If you look at 97-98, because of the completion of a number of large scale highway projects related to the Airport Core Programmes, say the Route Three, the Lantau Link and the West Kowloon Expressway, expenditure on roads has declined. There is a decline of 22% in real terms. That said, the significant expenditure increase in Buildings, Lands and Planning is attributable to a number of reasons. First, expenditure involved in land resumption in 1997/98 is expected to increase about three times. Secondly, in line with our objective on building development, we will take projects forward as far as possible having regard to our capability in expanding our works programme, for example, for the education sector. Capital expenditure on education is included under this head. They include projects for primary and secondary schools, special education as well as improvements to existing schools. They will be carried out in full-swing. The expenditure in this area will be in the region of $2.7 billion.

Reporter (in Chinese): So in other words, because of the completion of the airport construction, certain infrastructure projects which were awarded lower priority can be upgraded and benefited?

Mr K C Kwong (in Chinese): We can't put it this way. Every year when we consider the resource allocation for our works taking into account our requirements for the coming five or ten years. The allocation of resources is not affected by the airport core programmes. It has been affected by planning, land resumption and other preparatory work. These factors affect the start dates of the projects.

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Reporter (in Chinese): Just now you mentioned the expenditure for resumption of land in the coming year it will be increased by three times. I guess it is because the government will redeem the Letters A/B. Now, how many of them have not been exercised for the moment? And you will spend $2.4 billion to redeem these entitlements in the coming year. Is it true that this $2.4 billion is enough to redeem all the outstanding entitlements of land exchange?

Mr K C Kwong (in Chinese): For redemption of Letters A/B involving cash redemption, it is about 2.3 hectares in area. We estimate that $2.4 billion will be adequate.

Reporter (in Chinese): Now, Mr Chen Zuo'er said a few days ago that the Central Government will not take part in the preparation of the Budget for 1998/99. When you formulate the Budget will you still have to consult the Central Government so as to avoid criticism about crashing a Formula One car?

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