TNAG-0316-FCO40-352-Reform-of-local-government-of-Hong-Kong-1971 — Page 68

0003230

G.F. 323

CONFIDENTIAL

be consulted

Candidates for Election 2019.

- 6 -

Candidates for election to the Urban Council will not be debarred from standing because they are residents of the New Territories. The present arrangement gives voters the widest possible choice and recognises that persons with substantial urban interests may maintain homes in the New Territories. Moreover, it would not be reasonable to permit only residents of the urban area to stand for election without applying the same restriction to appointed members, and no advantage is seen in limiting in this way the choice of persons eligible for appointment to the Council.

Staff

220 The Urban Council will continue to work through its present executive arm which is the Urban Services Department, but it should have some say in the posting of the most senior departmental staff This process could be extended later to cover more junior staff. The Urban Council will be required to pay to the Central Government the full cost of providing the Council with staff to carry out its functions including salaries, pensions, medical services, passages, etc. However, staffing matters including the complementing and. grading procedures to be adopted will require further

consideration. The slotte of the Director of Urban Senica

the Westen Services Dipt, will remain

Finance

responsible

22 21:

At present the Urban Council and the Urban Services Department submit detailed estimates each year to the Colonial Secretariat where they are processed in the same way as those of Government Departments generally. It is now intended to grant the Urban Council substantial financial autonomy and discretion by giving it its own separate rate or levy, which, initially, will be offset by a corresponding reduction in the Lauthorising present "general" rate; and by requiring the Council to borrow

in the market, a Government guarantee being provided as necessary, to meet capital expenditure. Such borrowing will be subject to the approval of the Legislative Council. The Council's rate will be calculated initially from estimates of net expenditure in the year preceding the introduction of the new arrangements.

25 22.

The Council will, of course, have other sources of income. Once the initial rate has been determined, the Urban Council will be free to raise its rate, with the Legislative Council's approval, in order to allow it to expand its services or to meet rising costs, assuming that this cannot be done in some other way (for example, by increases in fees for services provided by the Council). The Government will be prepared to consider making annual or capital grants to meet additional expenditure arising from new or exceptional increased statutory duties imposed on the Council or from requests by the Government that the Council should take on new or increased non-statutory duties.

2423.

Each year the Urban Council will be required to present its annual Budget and Building and Works Programme to the Colonial Secretariat, together with adequate explanatory memoranda. The Colonial Secretariat will satisfy itself that the proposed expenditure falls within the Urban Council's sphere of responsibilities and the Budget will then be submitted to the Legislative Council for approval. The Urban Council

CONFIDENTIAL

/will