TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 34

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whose responsibilities extend beyond those of the Urban Council together with their personal secretaries, and whose emoluments are paid solely from General Revenue), plus an appropriate percentage for staff on-cost (26%). The reimbursements are then credited to revenue Head 15 Reimbursements Subhead 11 Staff salaries and on-cost Urban Council.

3.

As in the case of the Urban Council, with effect from 1st April 1973, the re-constituted Hong Kong Housing Authority, working through its executive arm, the Housing Department, is also to a degree financially independent, being financed mainly from loans from the Development Loan Fund and income from rents. Again, as the staff from the Housing Department remain in the public service, posts for staff and provision for personal emoluments appear in the annual estimate of expenditure via Head 40 Housing Department (1974-75 Estimates). The Housing Authority reimburses the full cost of the posts (other than the emoluments of Director of Housing and his personal secretary) plus an appropriate percentage to be determined from time to time by the Deputy Financial Secretary for staff on-cost to cover leave, pension, medical benefits, etc. This reimbursement is credited to Revenue Head 15 Reimbursements Subhead 10 Staff salaries and on-cost, Housing Authority.

Proposal

4.

The present arrangements result in an inflation of the estimates of both the revenue and the expenditure. To avoid inflating the revenue and expenditure estimates, it is proposed that the necessary provision for personal emoluments be excluded from the estimates of expenditure, although the posts of the offices will continue to be included in the Estimates and be approved by the Legislature.

5.

that

(a)

(b)

The practical effect of the above proposal will be

the elements of salaries to be paid for by

the Urban Council and the Housing Authority should be chargeable to a below-the-line advance account in the first instance;

(i) the P.E. subheads under the relevant head

of expenditure should only provide for the salary costs of the Director of Urban Services and his deputies and their personal secretaries which are not reimburseable by the Urban Council;

2

/(ii).

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