TNAG-1486-FCO40-2040-Public-finance-in-Hong-Kong-1986 — Page 6

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Paragraph 3.6 - Cable and Wireless Services : Higher costs

public funds because of

of the Government's decision to exclude the Urban Council from the equipment servicing arrangements provided to the Government

Negotiations with Cable & Wireless (HK) Ltd. on the content of the new Technical Services Agreement have been concluded and a draft agreement is currently being prepared for approval by Finance Committee. The intention is that the new agreement should come into

into effect

effect on 1 April 1986. The draft agreement provides that the Urban Council may use the services of Cable & Wireless (HK) Ltd. on the same terms and conditions as the Government. As the draft provides for а fixed percentage for the administration charge to be reviewed after five years, instead of the sliding scale included in the current agreement, the inclusion of the Urban Council

Council will

will not result in any direct savings to public funds.

Paragraphs 3.7 - 3.8

Weaknesses in financial and technical control and the inability of

of the Government to monitor effectively the activities of the power companies In the implementation of the capital and maintenance programmes for public lighting

The China Light and Power Company Limited and the Government aim to finalize a formal public lighting agreement to come into effect in April 1986. Currently meetings are being held to resolve outstanding issues, in particular the question of on-cost charges, but it is not expected that this will affect the target effective date.

The formal

formal agreement with China Light and Power Company Limited will be used as a basis for negotiating a similar agreement with the Hongkong Electric Company Limited. Discussions with the latter Company on improving the lighting control system are continuing in the meantime.

Paragraph 3.9 Delay in clearing the advance account for work done by the Water Supplies Department on behalf of the Housing Authority

The balance in the advance account has fallen from $3.06 million in June 1985 to $2.30 million in December 1985. The proposed monthly billing procedures are still under consideration for the resolution of certain administrative problems affecting the Director of Housing. Pending the implementation of the monthly billing system, demand notes will continue to be

be issued

issued to the Housing. Authority for individual contract payments exceeding $10,000. The situation is being monitored closely to remains at a reasonable working

ensure that the balance

level.

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