Estimates-1970 — Page 306

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Receipts:-

Under this subhead the variation from the approved 1968-69 figure of the totals for the revised estimate and the estimate for 1969-70 are largely due to the variations on three items. "Slaughter houses" receipts were affected by a delay of 6 months in the opening of the new Kennedy Town Abattoir. The opera- tion of the new abattoir with a changed fees structure is the reason for the large increase estimated for this item in 1969-70. "Departmental Services and supervision" relate to "Works executed on private account" (see under Subhead 3-Reimbursements) or reimburseable by the Armed Forces. Demand for the former continues to fall but an increase in the latter is expected in 1969-70. The advances relating to the Canton Trust and Commercial Bank Ltd. were repaid during the year and, therefore, nothing will be received on this account in 1969-70.

Reimbursements:-

"Services maintenance charges" was a new item in the 1968-69 Estimates and experience sug- gests it was then overestimated. However, a substantially higher level of maintenance expenditure is expected in 1969-70 and will result in the parallel increase estimated under this item. The large increases in the revised estimate and the 1969-70 estimate for "Housing Authority expenditure" are due to the higher salaries payable to officers seconded to the Authority following the 1968 Salaries Revision and also to an increase in the oncost recoverable for pensions, leave and related benefits. Revenue from the "Use of Urban Services meat delivery vans" have been substantially revised, upwards for 1968-69 and downwards for 1969-70, as a consequence of the consolidation of delivery charges in the fees structure of new Kennedy Town Abattoir.

Sales:--

The major variations under this subhead are in revenue from "Quarry products” and “Sand”. The reduction in the revised figure of the former is due to delay in commissioning the asphalt plant at Diamond Hill Quarry while variations in the latter reflect the activity of the building industry.

HEAD 7 WATER REVENUE

Estimate 1969-70

Revised estimate 1968-69 Approved estimate 1968-69

Actual revenue 1967-68

$79,358,000

73,758,000

74,508,000

67,902,660

The revised estimate for 1968-69 compared with approved estimate for the year shows a short- fall of $750,000, due partly to the extension of the payment period for water accounts from 14 to 28 days. This resulted in a certain number of water accounts which would otherwise have been payable in 1968-69 not becoming due until early 1969-70. Another factor was a smaller number of new connexions than anticipated. The continued growth in population and expansion in industry coupled with the programme of separate meter installations and an expected unrestricted water supply are the reasons for the estimated higher revenue in 1969-70.

Estimate 1969-70

Revised estimate 1968-69 Approved estimate 1968-69

Actual revenue 1967-68

HEAD 8 - POST OFFICE

$122,513,000

113,540,000

101,985,000

103,442,068

The revised estimate for 1968-69 is $11,555,000 more than the approved estimate. Increased postal traffic is expected to yield $6,500,000 more in revenue from "Postage stamps", expanded use by busi- ness houses of postage meters $3,500,000 more to the "Postage Prepaid and Meter Postings" subhead and an increasing volume of parcel traffic is expected to contribute an additional $1,500,000.

Further growth in the use of the postal services is anticipated during 1969-70 and an increase

in revenue of $8,973,000 over the 1968-69 revised figure is estimated for 1969-70.

HEAD 9- KAI TAK AIRPORT AND AIR SERVICES

Estimate 1969-70

Revised estimate 1968-69

Approved estimate 1968-69 Actual revenue 1967-68

$47,820,800

42,240,800

37,294,000

34,156,690

The revised estimate for 1968-69 is $4,946,800 up on the approved estimate and a further increase of $5,580,000 is estimated for 1969-70. These increases are mainly attributable to the continuous growth in the air traffic and numbers of passengers and visitors using Kai Tak Airport. The major part of the increases comes from the subheads "Airport concessions", and from "Aircraft landing fees" reflecting the increased air traffic. However, the high revised 1968-69 figure for "Airport concessions" includes an adjustment from the previous year while the increases in both the revised and 1969-70 estimates for "Passenger service charges" reflect, in addition to the increased number of passengers, an increase from the 1st November, 1968 of the passenger service charge.