TNAG-0620-FCO40-768-Annual-accounts-of-Hong-Kong-Government-for-year-ending-1976-1977 — Page 57

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mooring buoys; under 'Cargo handling basins' $1,376,852 (68.8%) as a result of delay in the inauguration of the cargo-working area at Tong Mei Road; under 'Hong Kong-Macau ferry terminal-Passengers' $9,956,603 (41.7%) because of a decrease in passenger numbers and despite an increase in charges in April 1975; under 'Inoculation and vaccination certificates' $516,875 (33.3%) because of an over estimate; under 'Medical and dental clinics' $4,144,433 (38%) because of delay in the revision of medical and dental charges and delay in the commissioning of the Princess Margaret Hospital; under 'Sand' $4,935,370 (14.9%) due to a fall in demand; under 'Hong Kong companies' $5,573,681 (17.8%) owing to the economic situation fewer companies were incorporated than had been anticipated at the time when the estimate was prepared; under ‘Official Receiver' $257,034 (32.1%) because the original estimate was set too high; under 'Toll collections (Lion Rock Tunnel)' $759,944 (13.3%) because of a significant drop in traffic volume which more than offset extra revenue generated by an increase in fees with effect from 1st April, 1975; under 'Urban services—miscellaneous' $1,058,698 (68.3%) because the Wo Hop Sheck columbarium was not used to the extent anticipated; and under ‘Official certificates' $480,705 (37%) mainly because of delay in implementation of a proposal to increase fees for certain certificates issued under Fire Services Department regulations.

Head 9-Revenue from Properties and Investments

There were a number of significant variations under this Head between estimated and actual revenue. The largest, in monetary terms, was the $40,424,725 shortfall under 'Interest' which represented a decrease of 11.9% from the estimate mainly due to the interest earning base at the start of the year being slightly lower than the level which had been predicted in the estimates and a decline of $600 million in the level of local fixed deposits as a result of the accounts for each month of the first five months of the year showing substantial deficits totalling $421 million and the need to maintain liquidity. Six subheads recorded significant excesses the largest being $8,127,358 or 50.8% under 'Leased lands-Crown rent: Land Office leases' due to increased collections as a result of the revision of Crown rents on the expiry of renewable Crown leases, and of the others, $3,569,909 or 34.7% under 'Lands not leased (permits for encroachments etc.)--Urban area' mainly because one large item of revenue due in 1974/75 was received this year; $2,025,973 or 27% under ‘Leased lands—rent from short term tenancies: Urban area' due to the letting of more tenancies than anticipated and an upwards revision of the rent received in respect of the container station at Kowloon Bay Reclamation; $1,677,586 or 21% under 'Building and furniture-Government properties managed by P.W.D.' mainly because of the increase in the number of properties managed and one large payment of rent for 1976/77 which was received in advance during this year; $346,900 or 26.7% under rents from 'Piers and wharves' due to rent revisions and the collection of rent arrears for Mei Foo Sun Chuen pier; and $288,619 or 15% under rents 'Other' largely as a result of additional rental charges received in respect of one open storage area during the year.

Head 10-Land Sales

Four of the seven subheads produced substantially more than anticipated and two substantially less than anticipated, resulting in an overall shortfall against the original estimate. The largest individual shortfall in monetary terms was $59,099,418 (59.1%) under 'Premia on modification of existing leases, exchanges and extensions: New Territories' due to the fact that some projects had to be abandoned and others could not be completed during the year and there was also a shortfall ($5,958,089 or 22.1%) under 'Premia on re-grants of expired 75 year or shorter leases: Urban area' because a new policy for dealing with the re-grant of expired non-renewable leases upon which stand post-war buildings had the effect of reducing instalments of premia payable over the first three years. Excesses were recorded under: 'Premia on new leases-sales by public auction and tender: Urban area' ($18,399,705 or 12.1%) and 'Premia on new leases-sales by public auction and tender: New Territories' ($18,984,009 or 70.3%) owing to the revival of the property market, sites at Hollywood Road, Upper Lascar Row, Yau Tong and Sha Tin Town selling at remarkably high prices; 'Premia on new leases- private treaty grants: New Territories' ($11,585,932 or 49.1%), due to delay in the completion of transactions relating to Kwai Chung Lots 4 and 5, two instalments of premia for each of these lots were received during the year; and 'Premia on modification of existing leases, exchanges and extensions: Urban area' ($5,930,122 or 29.7%) where high premia were paid for the modification of lease conditions to permit non-industrial use of a site at Nathan Road/Jordan Road/Nanking Street and more intensive development of No. 6 Old Peak Road.

Head 11-Water

Against the estimate of $206,000,000 there was a shortfall of $22,230,175 (10.8%) principally because domestic and industrial consumption was lower than anticipated at the time when the estimate was prepared. However the subhead 'Fees, licences, supervision and other charges' produced an excess of $1,101,171 (45.9%) due to an unexpected increase in the number of applications for separate meters and fire service connections received from

consumers.

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