TNAG-0620-FCO40-768-Annual-accounts-of-Hong-Kong-Government-for-year-ending-1976-1977 — Page 65

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Head 52—Miscellaneous Services

There was a net excess of some $20.5 million on the Head as a whole but there were numerous wide variations between estimated and actual expenditure on various subheads making up this net variation. The most note- worthy individual excesses were as follows: $900,921 under 'Commission difference in exchange, etc.' where actual expenditure exceeded the token provision of $5,000 due to continuing depreciation in the pound sterling exchange rate; $275,907 (143.7%) under 'Consultations conferences and committees' because more essential duty visits abroad were carried out than had been anticipated at the time when the original estimate was prepared; $338,879 (41.3%) under 'Interest' because of an increase in interest payments as a result of an increase in tax reserve certificate redemptions; $601,402 under 'Loss of Cash or Stores' where, mainly because of one large payroll robbery involving approximately $582,000, actual expenditure exceeded the original token provision of $3,000; $447,485 (298.3%) under 'Payments to estates of deceased officers', the purpose of this subhead is to meet payments in respect of earned vacation leave of those officers dying in the service and cannot therefore be closely estimated; $300,269 (15%) under 'Refunds of revenue' which covers refunds of revenue collected in previous years and is therefore particularly difficult to estimate; $3,504,657 (18.4%) under 'Subsidies for students travelling in public transport' which was due partly to under-estimation of the amount which would be due to Kowloon Motor Bus Company during the year and partly to the effects of an expansion of bus services; $99,800,000 (396.0%) under 'Payment to Development Loan Fund' to meet increased requirements for the financing of Tai Po Industrial Estate, loans to students and other projects; $4,716,284 (27.5%) under 'Purchase of non-depart- mental quarters' to meet expenditure on additional fittings for the flats at Baguio Villas to ensure that these flats meet Government standards; and $785,856 (39.3%) under 'Subscription to the Asian Development Bank' because of unexpected payments which had to be made to maintain the value of the paid-in portion of Hong Kong's subscription to the capital stock of the Bank. There were also six new special expenditure subheads opened to meet activities which had not been foreseen when the estimates were prepared and the supplementary provisions so approved totalled $11,240,542 of which $7,203,260 was actually spent. Turning to subheads where recorded expenditure was less than the estimate the first item of note was $70,000,000 being the whole provision under ‘Additional commitments' which was provided to meet expenditure that was anticipated would be required throughout the year in excess of the amounts voted under other Heads and subheads of the Estimates. As additional provision was approved during the year on other Heads and subheads an equivalent amount under this subhead was 'frozen'. Eventually the whole amount together with supplementary provision of $26,000,000 under the subhead was 'frozen' in this way and no longer available for expenditure. Substantial savings occurred under 'Cable and Wireless services' $5,640,377 (22.2%) mainly because of successful economy measures in- troduced by the Company coupled with delay in the completion of a number of approved capital projects; under 'Independent commission against corruption' $6,432,679 (21.1%) because only three I.C.A.C. sub-offices were in operation instead of eight as originally envisaged and because of a ban on recruitment and difficulties in leasing suitable office accommodation; under 'Recruiting expenses' $1,842,141 (61.4%) because of reduced local and overseas recruitment activities in view of financial stringency; under ‘Advances to tenants of condemned build- ings' $901,120 (90.1%) because the number of buildings declared dangerous has been declining in recent years and the original estimate for these advances was pitched too high; and under 'Coinage issues' $12,250,903 (42.2%) largely because fewer coins were needed to be ordered than originally estimated.

Head 53-New Territories Administration

There were three significant variations from estimates, all savings. The saving on 'Transport and travelling' of $264,752 (12.4%) was achieved because very strict economy measures were taken. Under the subhead ‘Manage- ment of Crown land' the saving of $352,571 (35.3%) resulted from delays in the completion of jobs due to industrial action by demarcator grade staff and under the subhead 'Radio telephone' there was a saving of $330,000, being the amount of the original provision, because of delay in the delivery of the equipment.

Head 55-Pensions

The only major variation from the printed estimates for this Head was an excess of $546,784 (45.6%) in ‘Volunteer and Defence Force pensions, allowances, and grants' where following revisions in the Royal Warrant rates of payment effective from July 1974, April 1975 and November 1975 payments were made at higher rates and adjustments dating back to July 1974 were also paid in the year.

Head 56-Police: Royal Hong Kong Police Force

There was one major excess of $1,196,590 (13.3%) under 'Rewards and Special Services' due to a general increase in activities to combat crime and there were substantial savings of $565,546 (41.6%) under ‘Arms and ammuni- tion' because considerable economies were achieved by scaling down demands and reducing arms courses; $1,241,855 (15.2%) under 'Stores and equipment', $400,354 (13.3%) under 'Motor vehicles', $918,700 (86.3%)

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