TNAG-2449-FCO40-3565-Legislative-Council-of-Hong-Kong-1992 — Page 196

CONFIDENTIAL

p.a. Rey 2619

Leg

064563 MDLIAN 7529

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 1008

OF 080815Z APRIL 92

MAB 01711

TOP COPY Q DIST?

пр

INFO PRIORITY HKGO LONDON, PEKING, UKREP JLG HONG KONG

LEGISLATIVE COUNCIL:

SUMMARY

1

ACTIVITIES IN MARCH 1992

ONLY ONE REGULAR LEGCO SITTING AND NO REGULAR FINANCE COMMITTEE MEETING IN MARCH 1992. THE FOCUS OF LEGCO ACTIVITIES AND MEDIA ATTENTION WAS ON THE 1992-93 BUDGET, WITH ALL THREE POLITICAL GROUPS IN LEGCO STRIVING TO SCORE POLITICAL POINTS.

THE BUDGET

2.

THE PROCESS BEGAN WITH THE FINANCIAL SECRETARY'S PRESENTATION OF THE BUDGET ON 4 MARCH, FOLLOWED BY THE SPECIAL FINANCE COMMITTEE MEETINGS ON 18 TO 20 MARCH TO EXAMINE THE DRAFT ESTIMATES OF EXPENDITURE AND NON-OFFICIAL MEMBERS' DEBATE ON THE BUDGET ON 25 AND 26 MARCH. THE ADMINISTRATION'S RESPONSE WAS

DELIVERED ON 1 APRIL.

3 =

ON 24 MARCH TWO GROUPS OF LEGCO MEMBERS (CRC AND UDHK) SOUGHT THE GOVERNOR'S RECOMMENDATION TO INTRODUCE AMENDMENTS TO THE REVENUE AND EXPENDITURE MEASURES CONTAINED IN THE BUDGET (UNDER THE STANDING ORDERS OF LEGCO, MOTIONS AND AMENDMENTS TO MOTIONS AND BILLS WHICH HAVE THE EFFECT OF DISPOSING OF OR CHARGING ANY PART OF THE REVENUE REQUIRE THE RECOMMENDATION OF THE GOVERNOR). THIS WAS DECLINED BY THE GOVERNOR ON THE GROUNDS THAT THEY WOULD UNDERMINE THE INTEGRITY OF THE BUDGET AND COMPROMISE THE GOVERNMENT'S STRATEGY FOR MANAGING THE TERRITORY'S PUBLIC FINANCES.

THE APPROPRIATION BILL WAS PASSED ON 1 APRIL BY A VOTE OF 36 TO 18 (FOR DETAILS OF VOTING PATTERN SEE OUR TELNO 973).

4

5. FOUR REVENUE BILLS ARE PUT DOWN FOR FIRST READING ON 8 APRIL. THE BIGGEST CHALLENGE IS EXPECTED TO COME IN EARLY MAY WHEN THE RESOLUTION TO INCREASE THE RATES BY HALF A PERCENTAGE

POINT WILL BE TABLED.

1

PAGE

CONFIDENTIAL