TNAG-1415-FCO40-1896-Public-finance-in-Hong-Kong-1985 — Page 147

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that a large number of premises were left vacant, some for over 20 months. The situation has steadily deteriorated since then. The number of projects behind target at 31 March 1984 was 55 and had increased to 68 by 31 March 1985. Most of the projects were over one year behind target, and some were three years behind.

90. twofold:

91.

The consequences of the delay in occupation are

the provision of essential welfare services to residents of the estates is held up giving rise to complaints from the residents and the voluntary organizations; and

nugatory expenditure on rental for the vacant periods is incurred by the Social Welfare Department by way of subvention to the voluntary organizations.

The Government has been concerned about the delays for some time and following discussions between the Director of Social Welfare and the Director of Housing, a Working Group was set up in May 1984 comprising members from the Finance and the Health and Welfare branches of the Government Secretariat, and the Social Welfare, Housing and Building Development departments with the following terms of reference:

92.

"To review and to make recommendations for

improvements in the procedures relating to applications from voluntary organizations or Government departments for grants from the Lotteries Fund, especially for premises set aside in public housing estates for social welfare purposes."

The Working Group concluded in June 1984 that much of the delay in processing fitting-out works was attributable to:

protracted discussions between the voluntary organizations and the Social Welfare Department concerning the schedule of accommodation, layout and finishes, and furniture and equipment; and

the voluntary organizations' inability to manage tendering procedures.