TNAG-0316-FCO40-352-Reform-of-local-government-of-Hong-Kong-1971 — Page 69

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G.F. 323

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will also be required to present to the Legislative Council within six months of the end of each financial year, Report for the year past, together with audited accounts in a form acceptable to the Accountant General and together also with the Director of Audit's Certificate and any report that he considers appropriate.

2524. Subject to the approval of the Finance Committee of the Legislative Council, it is Government's intention to give the Urban Council an initial grant on a once-for-all basis to spend as it pleases on capital or recurrent items. This grant will be additional to the funds which the Council will receive from its rate.

26250

The requirement that increases in the Council's recurrent income must come from increases in the Urban Council rate (to the extent that higher fees do not meet the situation) introduces an element of accountability by the Council to the public. This is an essential feature of the

Indeed, it is this feature which justifies the considerable degree of financial autonomy which is proposed. The requirement that the Urban Council should finance its capital expenditure by borrowing (rather than by grant from general revenue) is essential if detailed Government scrutiny of all Council projects is to be avoided.

Public Works Programme

2726.

If the Urban Council so wishes the Public Works Department will complete, at Government expense, all items presently listed in Categories A, D and E of the Public Works Programme on a date to be agreed. (Inclusion in Category A indicates that authority has been given for the creation of a subhead and to proceed with working drawings and call for

Category D projects are those which are estimated to cost less than $200,000 and which can be proceeded with as and when opportunity offers. Category E means building projects which are urgently required and estimated to cost less than $200,000). It is assumed that in due course, the Council will set up its own architectural section. If the Urban Council so wishes the Public Works Department will continue to build (and Government pay for, to the extent that these facilities are agreed to be required), abattoirs, incinerators, crematoria and any other highly technical installations. Otherwise, the Council will in future be required to pay for all services rendered or materials provided by Government Departments.

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Title to Land

.28 27.

The title to the various pieces of land and property which the Urban Council occupies will continue to be held by Government. Once any such land ceases to be required for the purpose for which Government allocated it to the Council, then it will revert to the Crown free of charge.

Urban Council interest in Public Housing

2928.

Urban Council unofficials at present play two roles in public housing matters. As the Urban Council, they are responsible for the management of urban resettlement estates; and as ex-officio members of the Housing Authority, they are

/responsible

CONFIDENTIAL