TNAG-0316-FCO40-352-Reform-of-local-government-of-Hong-Kong-1971 — Page 137

CONFIDENTIAL

CR 3/1146/70

ARNER 'D' TO XCC(71)20

URBAN COUNCIL : NEW FINANCING ARRANGEMENT S

At present, funds for activities for which

the Urban Council has statutory or permissive responsibility are provided in the Urban Services Department and Urban Council votes (including the Cultural Services Division but excluding the Housing

Division and the New Territories Division of U.S.D.),

as well as in the Public Works Non-Recurrent heads.

These votes are subject to the sane scrutiny, approval or oversight as any other departmental vote. The intention is to give the Urban Council the

maximum possible financial discretion and responsibility within its approved sphere of operations while at the same time providing for acceptable accounting methods. The approved sphere of operations will be confined to: -

environmental public health, including

sanitation and hygiene;

(1)

(2)

recreation and amenities

including the

provision of entertainment by the Council;

(3)

the provision of cultural services.

2.

The proposal is that, beginning with the financial year 1972/73, the Urban Council should in future determine its own budget and capital works programe and finance its expenditure as follows :

Recurrent expenditure

from an Urban Council'rate, as

determined from time to time by the Legislative Council, and from other sources of income,

including fees. The present 17%

rate would be split into two

henceforth separate rates.

CONFIDENTIAL

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