TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 171

G.F. 316

61.

MCLASSIFIED

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On capital account, the provision sought is $8.6 billion. This includes $7.2 billion for transfers to three of the Funds, with as usual the lion's share going to the Capital Works Reserve Fund. Last year I mentioned that there was no need to transfer funds to the Home Ownership Fund, because it had sufficient reserves as a result of internal generation of revenue. Again this year it will not be necessary to transfer any funds to the Home Ownership Fund. In fact it is our intention during the year ahead to move some $400 million from this fund to General Revenue.

Capital Works Reserve Fund

62.

The provision of $5.8 billion sought for transfer to the Capital Works Reserve Fund together with an estimated $4.4

billion surplus in the Fund at the end of 1984-85 are sufficient to cover the estimated expenditure of $6.8 billion from the Fund during 1985-86 and to retain a prudent surplus at the end of the financial year (23).

63.

The estimated expenditure from the Fund in 1985-86 on the Public Works Programme is $6.8 billion. This exceeds the

revised estimate for 1984-85 by about $0.7 billion. On land acquisition the estimated expenditure for 1985-86 is $0.9 billion, which is about $0.2 billion more than the revised estimate for 1984-85 (24).

(23) The advance of $1.45 billion to the consortium for the development of

Tin Shui Wai needs to be recognized by the retention of at least $1.5 billion in the Fund.

(24) The outstanding commitment (or overhang) in respect of projects in hand on 31 March 1984 was about $18.8 billion. This was increased by about $5.2 billion as a result of the injection of new projects during 1984-85, but reduced by roughly $6.1 billion in expenditure. During 1985-86 work is scheduled to start on new projects having a total commitment value of about $4.9 billion. The overhang on 1 April 1985 will be about $22.8 billion. After allowing for the estimated expenditure during 1985-86 of $6.8 billion, the outstanding commitment at 31 March 1986 cannot be less than $16 billion, but in fact will certainly be much higher as further new works are approved during the year. This again represents a major commitment for the future.

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