TNAG-0316-FCO40-352-Reform-of-local-government-of-Hong-Kong-1971 — Page 131

CONFIDENTIAL

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Urban Council Proposals

Government's views and

Proposals

9. Weights and Measures

The Council should assume responsibility for weights and measures in the second phase.

In this matter, there must be one Colony-wide authority which the Urban Council can never be.

FINANCE

Phase I

The Council to be given a proportion of the rates to cover the recurrent costs of

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the functions proposed. It > would also derive revenue from ) licence fees, concessions, etc.) Capital expenditure would be covered by grants from the Legislature.

Phase II

The proportion of rates allocated to the Council should be increased to meet the additional functions.

Phase III

)

The Council to be allocated a certain percentage of the rates from which to meet recurrent expenditure. The Council should have power to vary its rate (subject to the over-riding authority of the Legislative Council) to meet fluctuations in its recurrent expenditure.

With regard to capital expenditure, it is thought to be undesirable that the Council should come to rely automatically or heavily on central government sources. The following sources should be available to it:-

Rates should be fixed by the

Council subject to the approval. of the Governor. The Council ) would be responsible for

(i)

allocating funds to District

(ii)

Councils which it proposes should be set up in Phase III. )

)

its own surplus on

recurrent account;

sales of its own capital assets;

(iii) donations, e.g. Royal

Hong Kong Jockey

Club (Trustees) Ltd.

(iv) borrowing from sources

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(v)

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other than the central

government, possibly

with a Government

guarantee in suitable

cases.

grants and loans from the central government.

STAFF

Phase I

Para in Exco Nomo

8(c)

9

In the early stages the staff ) of the Council should be

obtained by secondment from the central government. The Council should be consulted on ) all senior officers to be seconded and should have the right to refuse any officer offered. The Council would be ) required to reimburse to Govern- ment the cost of the staff so ) seconded.

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The staff of the Urban Services Department and Urban Council to continue to be public servants selected by Government, but the Council should be consulted over the posting of the more senior staff members. The Council to reimburse to Government the cost of staff.

CONFIDENTIAL

Para 4 (1) and (2) of Annex D..