1975 — Page 78

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HONG KONG URBAN COUNCIL

ADDRESS BY CHAIRMAN

CHAIRMAN (in English):-Good afternoon, ladies and gentlemen, I will now call the meeting to order and proceed with the business on today's agenda.

MINUTES

The minutes of the meeting held on 18th November, 1975 were confirmed.

STATEMENT BY CHAIRMAN

CHAIRMAN (in English):-At the time the Council was given actual responsibility over its own finances in 1973, it started to look closely into all aspects of its operations. Thus, an examination has been conducted progressively to determine whether certain functions and services performed by the Urban Services Department are being unduly subsidized by the rate-payer. It was felt that in the public interest the Council should know precisely what the position was. Indeed, if there was any instance of financial support, the Council should decide whether there could be any purpose or justification for it; alternatively, whether any adjustment would be necessary to either eliminate it altogether or reduce it in appropriate measure if found excessive. So, costings were done and the results studied by departmental specialists in the particular activities to which they applied. Where called for, the views of other government departments were sought, before all the findings were put to the respective select committees directly concerned. Careful deliberation ensued in committee over varying periods of time. Their conclusions were put subsequently to the Finance Select Committee; they were either supported or referred back for further consideration. In each case, the combined recommendation of the select committee and the Finance Select Committee was submitted in due process to the Standing Committee of the Whole Council, before finally finding its way today to the Council in open meeting. Thus, in this step-by-step exercise, many experts were consulted and a truly wide body of opinion brought to bear to ensure that whatever decision may be taken has been exhaustively considered and is generally deemed to be fair to all concerned.

Moreover, such an examination covers all aspects of the Council's activities in order not to discriminate for or against any. Also, in this way, the Council would find out whether the rate-payer was assisting, more than could be reasonably expected, any activities for which private enterprise derived a direct profit or benefit. Evidently, certain functions must be performed by public authorities as a charge on public funds; but, where they are done clearly for the particular advantage or material benefit of a section of the population, the extent of financial support must be carefully assessed and fully justified. This is the aim and purpose of our scrutiny now going on for well over two years.

HONG KONG URBAN COUNCIL

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The Council is the custodian of public money and must account for its application. Those who have a special call on any form of public service for private commercial benefit should pay for it at least in part, and not be a total charge on public funds. Also, in the same way as private enterprise must operate efficiently to survive, so should the public sector.

In short, any loss this Council may sustain in its operation, over and beyond its capacity to cover specific expenditure by raising revenue from secondary sources, will inevitably entail an application for a higher percentage of the rate, on which we are already too greatly dependent. In fairness to the public, this should only be the last resort, certainly not before the finances of the Council are put on a proper footing. Rightly, the public will want to know that our finances are in good order and, if revenue falls short of expenditure, that it is unavoidable in the public interest.

This exercise to raise fees and charges to a more realistic level is just such a measure even though not covering outgoings entirely. These graduated increases will not drive any business to the wall. Far from it. They have been set to ensure that the cost of these services is spread out and shared proportionately by those who use them and can afford to pay more so that they will not stay way out of line with actual costs. Of course, nobody likes to pay more at any time. Indeed, it would seem that there is never a right time for any increases. Still, if the users do not pay, who will do so in all fairness?

And, now, a word about our hawkers. The Council has always shown every sympathy and consideration for our hawker population in particular. Their wish to earn a living by their own exertions is applauded and rightly upheld over the years. Problems of great numbers and lack of suitable sites aggravate an already difficult situation. Therefore, there is always the need for public tolerance and understanding of their difficulties; on their side, as citizens, they are part of the community and as such should always respect the rights of residents and businesses in the areas where they trade. However anxious the public may be for a neat and orderly arrangement, it must never be forgotten that human beings in great numbers are involved. There are moral and social considerations that cannot be ignored, so let us have

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