16. A Legi
tion was that
Health Department with a shortfall of $9,027,481 or 36.6% because (i) collections from 'Dangerous drugs, pharmacy, poisons and other licences' were smaller than anticipated due to delay in the implementation of the Pharmacy & Poisons Regulations 1975 pending the result of representations made by various professional, trade and industry organisations of the Reven to Government, (ii) collections for ‘Medical and dental charges' were reduced due to delay in the opening of a number existence and of wards in Princess Margaret Hospital and an unexpected decrease in the number of private patients being hospitalised in 1st and 2nd class wards following an increase in hospital charges with effect from November 1975, (iii) reduced the amount demand for Cholera and Smallpox vaccination certificates which are no longer required by the immigration authorities Receipts and in many countries, and (iv) a decrease in collections from 'Out-patient clinics' due to delay in the opening of the Tsuen Wan/Kwai Chung Polyclinic and the Kowloon East Polyclinic stage I; and under Public Works Department: Building Development with a shortfall of $1,772,961 or 60.1% due to a large number of works carried out by Government on behalf of building owners not being completed during the year, resulting in the issue of bills for the recovery of the charges incurred being delayed until 1977–78.
LOANS MADE FROM REVENUE
:
17. This fi
(and an ame ments, schen Local Loans Fund has si
18. The st 10. The outstanding loans are detailed in Statement 5. No additional loan projects were approved in the year 1976-77 During the and as amounts discharged during the year exceeded issues by $452,415 the balance outstanding at the end of the year was correspondingly reduced.
Recurrent r Add Repayn
19. This in
PUBLIC DEBT (INCLUDING ASIAN DEVELOPMENT BANK LOANS) 11. In accordance with Government accountancy procedures the public debt and related sinking fund figures do not appear in the Statement of Assets and Liabilities (Statement 1) but they are to be found in Statements 7 and 8. No bonds Less Repay were purchased for cancellation in 1976-77 and the 34% Rehabilitation Loan balance outstanding at the end of the year was therefore, the same as at 31 March 1976. The Sinking Fund for this loan increased in value by $343,203 during the year. With one very minor exception the Fund's investments are in dated stocks, most of which mature by the latest redemption date for the loan. Statement 8 shows that the value of these investments on maturity would be £4,547,309 which, at the exchange rate on 31 March 1977 of £1-$7.9825, is equivalent to $36,298,895 or approximately 79% of the amount to be redeemed. Even with interest accumulations the Sinking Fund is unlikely to be sufficient to repay the loan by the redemption date and further contributions to the Fund will be required. The other items making up Hong Kong's public debt are $250 million Hong Kong Government 64% Bonds 1980 which were issued during 1975-76; borrowings in various currencies from the Asian Development Bank to cover up to US$12,500,000 of the costs of the seawater desalting plant at Castle Peak, after repayments the amount outstanding is equivalent to HK$87,893,798.66 and a loan from Lloyds Bank International Limited amounting to US$3,159,750 received in 1975-76, the balance of which after repayments stands at US$2,527,800. These items are explained in detail in Statements 7 and 8.
CURRENCY FUNDS
Assets:
Cash
Time Depos Investments Kwun Tong Outstanding
12. The Hong Kong Government currently issues coins of 5, 10, 20 and 50 cents and $1, $2 and $5 denominations Less Due to and accounts for these through the Coinage Security Fund mentioned in paragraph 14 below; the $5 coins became legal tender from 16 August 1976 under Proclamation No. 2 of 1976 (L.N. 178 of 1976). One cent notes are issued under the Dollar and Subsidiary Currency Notes Ordinance 1969, moneys which are received as a result of the issue of one cent currency notes are credited to the general revenue of Hong Kong and expenses which are incurred in connection with the issue of one cent notes are paid from general revenue; at 31 March 1977 one cent notes with a face value of $756,161, including pre-war issues, were in circulation.
13. Notes of 5 and 10 cents and $1 were issued until coins in these denominations became available after the war, further issues of 5 and 10 cent notes totalling $2,200,000 were made in January, 1965 to meet the increased demand for currency in these denominations prior to Chinese New Year. The Dollar Currency Notes Ordinance and the Subsidiary Currency Notes Ordinance were repealed by the Dollar and Subsidiary Currency Notes Ordinance 1969 (Cap. 67) which demonetized the 5 cent, 10 cent and $1 notes in circulation and closed the separate funds by the transfer of their assets, totalling $9,703,005 to general revenue. The 1969 Ordinance came into operation on 1 September 1969 and at the 31 August 1969 demonetized notes to a value of $12,425,782 were outstanding (including $3,015,000 of the pre-war issues which at that time were not backed by assets). Between 1 September 1969 and 31 March 1977 demonetized notes with a face value of $2,134,471 were surrendered thus reducing the value of such notes outstanding to $10,291,311.
14. The Coinage Security Fund, which is not established by Ordinance, exists for the current issues of nickel-brass 5, 10 and 20 cent coins, cupro-nickel 50 cent, $1, $2 and $5 pieces and also for the obsolete nickel coinage still in circulation. Prior to 1976-77 the fund's assets were in various bank balances, fixed deposits and investments but on 1 April 1976 all these assets were transferred to the Hong Kong Government Exchange Fund in exchange for non-interest bearing debt certificates and any new moneys received by the fund after that date were similarily transferred. All coin issue expenses incurred with effect from 1 April 1976 are borne by the Exchange Fund. No annual surplus or deficit results from the operation of the Coinage Security Fund as the fund receives no interest from the debt certificates which it holds and bears no expenditure. Statement 9 shows the assets and liabilities of the fund and gives the totals of coins, other than gold coins, currently in circulation.
SPECIAL COIN SUSPENSE ACCOUNT
15. A Legislative Council Resolution L.N. 73 of 1975 was passed on 19 March 1975 approving the establishment of a suspense account, to be known as 'The Special Coin Suspense Account' to be employed to enable the Financial Secretary to issue and deal with special and commemorative coins. During the year a limited issue of gold coins of $1,000 each was minted to mark the Chinese Year of the Snake which began on 18 February 1977.
20. Durin
waived were below:
Loans and C
Social Servi
Housing
Education
Medical
Economic S Airport a Primary I
Trade
Developm Industrial
Community Amenities
21. Staten at the year
22. The 'I
the Accoun charge of th
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