Sessional_Paper_1938 — Page 299

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HONG KONG.

DRAFT PROGRAMME OF PUBLIC WORKS.

No. 13

1938.

In order to enable the Public Works Department to plan its work properly and continuously it is desirable that, if possible, a programme of major works to be undertaken during the next few years should be approved. The field of desir- able public works has therefore been reviewed and a list drawn up of the works which it is thought ought to be undertaken during the next five years. This list is confined to works which it is believed can, during that period, be financed from revenue. The undertaking of certain other works, mainly waterworks, from loan has already been approved. No account is taken here of expenditure upon general town-planning and slum clearance. Unquestionably this will be of an order which could only be financed by loan money. Moreover, no concrete proposals can be made in this direction until the Housing Commission's report has been studied and schemes have been prepared in consultation with the Secretary of State for the Colonies.

2. The works listed are intended to include only the main new works which it is expected to undertake in the period named and funds are expected to be available for smaller works which can be considered year by year, including such continuous activities as street widening and road improvement. Other major works will, of course, also be added in later years if it appears that funds will be available.

3. The total estimated cost of the works listed is $13,135,000; though it must be noted that many of the estimates are very approximate and may require much correction when more detailed surveys and plans have been prepared. To meet this total expenditure funds are expected to be available as follows:-

(1) The balance of $839,000 in the Government House and City Develop- ment Fund can be utilized to meet part of the expenditure on item 1. Funds may also be received from the sale of the old City Hall and other sites but it is not proposed to rely on these.

(2) The Colony is to-day a Surplus of Assets over Liabilities of approxim- ately $15,000,000. After making certain deductions to allow for accounting changes it is expected to be about $13,500,000 by the end of the year. The minimuin reserve it is regarded as desirable to keep in his $10,000,000 and the excess of $3,500,000 is therefore available to meet deficits occasioned by expenditure on Public Works Extraordinary.

(3) There remains a balance of $8,796,000 to be inet. During the last ten years revenue has exceeded ordinary expenditure by a total of $36,977,463, roughly $3,700,000 per annum, which has been spent on Public Works Extraordinary or added to the Colony's surplus of assets. This period is not regarded as one of exceptional prosperity and it is not unreasonable to assume that the surplus of revenue during the next five years will be sufficient to cover the sum required as well as necessary expenditure on minor public works.

(4) Some of the works in the list might properly be met from loan funds, e.g., items 5 and 6; but it is always preferable to meet even revenue-producing works from revenue if it can be done and the above figures suggest that there should be no difficulty.

(5) Of the items listed Nos. 3 and 4 (Hospitals) will necessitate permanent additions to recurrent expenditure for staff, etc.; but most of the others will result in actual savings in recurrent expenditure.