TNAG-1614-FCO40-2222-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 8

23

In considering this matter,

matter, it should be noted that the offer of ex-gratia payments in this case will have implications for future redundancies arising from further privatisation exercises that the Urban Council is now considering and for abolition of office terms for the civil service generally and will call into question the adequacy of the enhancement provisions under the Pensions Ordinance.

24

Under the Memorandum of Administrative Arrangements, the Urban Council pays to the Government a monthly sum equivalent to 40% of the wages paid to its staff to cover the costs of medical attention, pensions, etc. Most of this 40% goes towards pensions costs. All normal pensions payable to ex-Urban Council staff by the Government have already, therefore, been paid for

for in full by the Urban Council. The Memorandum also specifies that, where staff of the Urban Council are declared redundant, the Urban Council will pay, over and above the normal pensions, the additional costs stipulated in

in the enhancement of pension provisions of the Pensions Ordinance (Chapter 89). Detailed discussions will be required between the Urban Council and Central

Central Government to agree on a fair and equitable arrangement for meeting redundancy costs.

Financial implications

25

Very substantial public revenue would be generated from this exercise. Four components are involved:

(a) the proceeds of the Private Treaty Grants. These have not been quantified and would be dependent on negotiations with the grantee;

(b) the proceeds of the Open Tender sale of the Cheung Sha Wan abattoir sites (about 5.73 hectares) (i.e. the existing site, and the site reserved on the Cheung Sha Wan Reclamation for redevelopment of the present abattoir) and the Ma

the Ma Tau Kok cattle depot site (about 1.65 hectares), all of valuable industrial land in prime locations. The likely income has not been quantified at this stage, but is likely to be substantial and higher than

than the likely expenditure on redundancy payments.

The sites of the Cheung Sha Wan and Ma Tau Kok piers and the Homantin siding will also be released for other public or KCRC uses;

(c)

the saving of approximately $200 million for not having to

to meet the costs of stripping and refitting the abattoirs; (Under the Arrangements,

Memorandum of

Administrative