TNAG-2261-FCO40-3257-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-pres-1991 — Page 35

Can I just add

Mrs Chan:

As regards the site preparation to provide the platform for the airport, the Provisional Airport. Authority is currently preparing the tender documents and we would hope to be in a position to call tenders in late August or early September.

Question 6:

Mr Leung, I understand the scheduling of everything, has been put back because of the delay. Could you give us an idea of how the various contracts will fall into place now.

Answer: Mr Leung:

Well, I don't think there is much slippage. I think there is, perhaps, a slight slippage by a few weeks. It does not really matter because we do have float time allowed for in the entire range of projects. So, it does not really affect the date of all these completions.

Question 7:

Answer:

Mr Yeung:

What about inflation on the various costs involved.

I think that is a matter, really, for K.Y. Yeung.

Inflation, I suppose, is part of life. But, we can't predict the level of inflation with any degree of precision. No-one can. What we can do is to ensure that we finish these projects to the maximum extent possible, on time and within cost. The Memorandum of Understanding is very explicit on having a cost-efficient airport. And one of the things we can positively do, given the amount of resources that we need to mobilise, is to import labour for this project, for works of this project.

Mrs Chan:

Could I just add to that? I think that, as you are all aware, there is a great deal of concern about inflation, both on the part of the government and the private sector and, indeed, the community at large. And I think you are well aware of what the government has done in the past few weeks to try and dampen inflation. It is obviously something that we will keep a very, very, close watch over. But, as Mr Yeung has pointed out, whether the inflation pressures will be unacceptably high depends entirely on the state of the economy at the time; the sort of projects that are in process both in the private sector and the

and the public sector. We will be keeping a close watch and if it is necessary both, I think, the government and the private sector will have to look at individual projects to see whether, indeed, there is a need to adjust the phasing and timing of these projects. Also, of course, the labour situation will have an impact on inflation and that, again, is an

that, again, is an area we will keep a very close watch on. But we are quite certain, at this stage, that during the peak construction period of the airport, particularly between 1993 and 1995, there definitely will be a need to import labour specifically for the airport project.

Question 8:

Surely there is a need to ask: How many labourers will be needed from China?

Answer:

I think there probably is. I think what we would try to do is to indicate to interested contractors that they will be allowed to import. We would wish to know in what sort of numbers and what type of labour they would be importing, so that we can come to a decision.

4

་