TNAG-2143-FCO40-3062-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 94

1990-10-03 17:57 G.L.S

4.

3

P.06.09

could be

re-deployed

that this

to

other occupations, and

re-deployment could still yield 80% of

the value added which would otherwise have been

obtained from the airport-associated employment.

this basis, the PADS Consultants

Mainly on

reckoned that the economic disbenefits of not

airport would be reduced to HK$68

having a new

billion.

(c)

In

further assumed

addition to

(b) above, the PADS Consultants

that high airport charges and

restraints could be put in

possibly other tight

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.

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

concerning the

(i.e. airport

adopted

by

the PADS Consultants

application of

price

mechanism

charges

and air fares) to ration