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in the end, and because further increases in salaries and operational costs are also to be expected, the Council may still end up with a deficit, unless there is a comparable increase in revenue from existing sources or an entirely new source is created as we hope to do from commercial advertising signs projecting into public air space.

Consequently, it would be prudent to press on with the examina. tion of the level of fees and charges for services rendered, more so to profit-making bodies, in relation to actual costs and the diminution in the value of the dollar over the years since they were last fixed, so that a progressive adjustment may be made if circumstances warrant our doing so in the general interest. Alternatively, we might have to curtail our ambitious plans for the expansion of our many useful programmes to make life more amenable for all as far as it is within our power to do. The Council does not want this to happen, so let us now plan the necessary measures to be ready to put them into practice when the times are propitious.

The budget has been compiled by the Urban Services Department and studied in detail by the pertinent select committees before examina- tion by the Finance Select Committee and further consideration by the Standing Committee of the Whole Council. Therefore, all Members have participated in drawing up the budget at one or more stages even though the primary responsibility belonged to the Finance Select Committee.

On behalf of the Council, I thank the Director and the staff of the Urban Services Department for their good work, in particular our Senior Treasury Accountant, Mr. S. E. D. WESTLEY, and his own sectional staff: I so move.

MR. HILTON CHEONG-LEEN, VICE-CHAIRMAN (in English):—Mr. Chairman, I rise as Chairman of the Finance Select Committee to second the Resolution.

As has already been mentioned by the Chairman, Urban Council, the envisaged deficit in 1975-76 of $14.99 million allows for a com- mitment to Government of $20 million towards the cost if constructing Council projects which under the Memorandum of Administrative Ar- rangements are a charge to Government funds.

At a future date Government will make available a similar sum of $20 million towards the cost of constructing projects for which the Urban Council is responsible and which are not a charge to Govern- ment funds under the Memorandum of Administrative Arrangements.

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The detailed arrangements for this switch-finance scheme which will speed up the Urban Council works programme are still under negotia- tion with Government.

The cost of Council projects which are a charge to Government funds is currently about $750 million, and at present there is no forecast as to when Government can complete these projects for the Council.

I think it is important that the Council take steps to discuss with Government a phased programme for the completion of such projects, preferably

over a period of 10 years from now.

For example, the site for the Cultural Complex in Tsim Sha Tsui will become available to the Urban Council within the coming 24 months. At present costs, the building of the Cultural Complex could be in the region of $250 million, yet so far Government has given no indication as to whether funds will be made available to build this project.

I am sure that all Members would like to see the Cultural Complex completed before the end of this decade. I am hoping therefore that the Finance Select Committee can review this matter within the very near future so that its recommendations insofar as financial arrange- ments are concerned can be placed before the Standing Committee of the Whole Council.

MR. PETER C. K. CHAN (in Cantonese):-Mr. Chairman, it is learnt that the Government will, on April 1 next year, take over the control of all the Government car parks which have been under the management of the Council for years. I hope very much that it has not yet become an established fact.

For years, our management of the public car parks, although it cannot be described as a brilliant success, has in fact been a hard and labourious task which brings in more criticism than praise. After obtaining financial autonomy, the Council only acts as a manager and receives a shameful annual award of just $5,000 from the Government for the management of car parks.

In March this year, before discussing with the Council, the Govern- ment suddenly announced an increase of one hundred to one hundred and fifty per cent of the fees charged in the car parks. This caused great discontent amongst most vehicle owners and those who relied on vehicles as the means of transport. Some people did not realize the actual circumstances surrounding the matter and directed their anger