TNAG-2143-FCO40-3062-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 105

3

could

be re-deployed to other occupations, and

re-deployment could still yield 80% of

that this

the value added which would otherwise have been

obtained from the airport-associated employment.

Mainly on

this basis, the PADS Consultants

reckoned that the economic disbenefits of not

would be reduced to HK$68

having a new

airport

billion.

(c)

In

addition to

(b)

further assumed that

possibly other tight

above, the PADS Consultants

high airport charges and

restraints could be put in

place to scale down the level of air traffic

closer to the capacity of the existing airport at

Kai Tak.

This reduced the economic disbenefits

further to only HK$11 billion.

4.

We are less optimistic than the PADS Consultants on the

extent of adjustment that is possible under cases (b)

We believe that their alternative estimates

and (c).

at (b) and (c) are conservative,

for the following

reasons:

(i) The assumption

adopted by the PADS Consultants

application of price mechanism

concerning

the

(i.e. airport

charges

and

air fares) to ration

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