- 6
-
major
systems and equipment used by the Government are amount to a massive $140 billion (at present day
estimated
to
prices) in the period up to 1997.
HONG KONG GOVERNMENT'S FISCAL POSITION
12. Clearly the construction of the new
related infrastructure does involve a
financial comitment.
But a fact worth
When completed, the
airport and the
very substantial
stressing is that
is investment in Hong
airport and related
long-term economic and
investment in the airport programme
Kong's future.
facilities will bring to Hong Kong
financial benefits far greater than the cost of the and these benefits will be enjoyed well into the
investment,
next century.
not
13. The key factor enabling the Government to decide to proceed with the airport programme was and is Hong Kong's financial strength. At the end of the last financial year, our fiscal reserves stood at $72.5 billion. This figure does include the $17 billion transferred to the SAR Government Land Fund up to the end of 1989-90. While this Fund will not be part of the reserves until July 1997, it consists of income from land sale premia which previously would have gone into the reserves. These figures compare with reserves of only $24 billion in 1983 when a decision not to proceed with a replacement airport was taken and when the SAR Government Land Fund had not yet come into existence.
14. The Land Fund is clearly of relevance when assessing the long-term strength of Hong Kong's finances, and particularly the strength of the financial situation which the SAR Government will inherit on its establishment in 1997. On the
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