TNAG-1614-FCO40-2222-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 6

of the

financial implications of the identified strategies has been made on the bases of both cash returns and economic cost, the latter taking into account cost elements like land premium and finance charges which are foregone.

estimated financial performance of the different strategies is shown in the

following tables:

The

(a) Cash Basis

Strategy

Existing

Rental-Led

HOS/PSPS Led

Private Sector Priority

(b)

Economic Basis

Cash Return to Government $ Million

79,231

74,243

94,705

93,148

Cost

to Government $ Million

Strategy

Existing

Rental-Led

HOS/PSPS Led

20,288

38,588

33,018

Private Sector Priority

20,541

financial

A detailed

financial assessment can be found in the Financial Appendix of the full report.

14

The HOS/PSPS Led Strategy brings the greatest cash returns to Government and is closely followed by the Private Sector Priority Strategy. When hidden costs foregone are taken into account, the Private Sector Priority Strategy is the most cost-effective, given the commitment to clear all outstanding demand by 2001.