1979 — Page 119

Page 119 of 136

204

HONG KONG URBAN COUNCIL

ADDRESS BY CHAIRMAN

CHAIRMAN (in English):--Good afternoon Ladies and Gentlemen, Council is called to order.

MINUTES

The minutes of the meetings held on 15 and 17 January 1980 were confirmed.

STATEMENT BY CHAIRMAN

CHAIRMAN (in English):-The Council rate will be maintained at 4% without change in the coming financial year in spite of sharply higher staff salaries and other costs of service. A promise was made. It will be kept.

There is grave concern nevertheless that all rate revenue will be used up to pay the staff however deserving. The Council does not begrudge any measure to better their circumstances. On the contrary, there is sympathy for their natural aspirations. But it is also expected that there will be a corresponding rise in output of work and standards of performance in order to be fair to the ratepayer as well.

The fact remains that nothing will be left for operational costs and building projects. So, to find an equitable solution, it would be proper to peg the rate percentage to total staff salaries in an agreed proportion. This is a practical form of indexation adapted to a strictly local purpose. It has the merit of being simple and easy to work out given goodwill on all sides.

Adjustments could be made annually or at shorter intervals. The timing would depend on how much a wholesale increase in salary scales would affect the Council's capacity to perform properly. This objective arrangement would set right the present disparate situation. The Government decides on its own what the level of remuneration should be and the Council is simply expected to find the money. Consequently, Council finances are thrown off balance in the act.

Moreover, if to reimburse the Government for the extra commitment, the Council raises the rate percentage, it will find no sympathy but only attract public odium instead. To avoid community recrimination for a purpose not of its making and to remove any cause of argument with the Government, let the Council reach a straight-forward agreement with the financial authorities to relate the rate to the staff payroll automatically. There could be a condition written into the agreement stipulating that any adjustment of the rate percentage in the Council's favour would be taken out of the Government's own rate participation without calling on the householder to pay more in these difficult times. The ratepayer would then know precisely how much of his dollar would be going straight to the civil service. Soon, every cent in effect. Each time the Government awards retrospectively a pay increase across the board in addition to the built-in annual increments, it would be taking the brunt in the future under this indexation arrangement rather than just passing it on, while hoarding money from its many other revenue sources in which the Council has no part. This is the case at present, when the Council is left to foot the bill eventually without being able to fall back on other revenues of consequence.

HONG KONG URBAN COUNCIL

205

There were two such wholesale increases in 1979 alone. In the forthcoming financial year 1980-81, the whole rate dollar will not be enough to pay the staff as a result. The payroll is estimated to reach $440 million while the rate is calculated to yield only $420 million, in the ratio of 1:.955. When the Council started off seven years ago, staff estimates were $169 million and rate revenue $205 million which stood at 1:1.213. Thus, there will be truly nothing left to make the city a fit abode for lesser mortals.

And, very significantly, the increase in the total number of staff over seven years in such a vast establishment of 16,483 is only about 124%, though there was a huge expansion of services and activities beyond comparison with anything done before. Even so, the actual strength is kept well below the approved establishment. In sum, the payroll has jumped up by 160% while numbers employed have remained almost the same.

Is the Government willing to enter into such an eminently just and practical arrangement with the Council?

PAPER

(Mr. Chan Chi-kwan and Mr. Edmund W. H. Chow arrived during the Chairman's address.)

The following paper was laid on the table:-Report to the Urban Council by the Director of Urban Services and Secretary, Urban Council, for the month of January 1980.

RESUMPTION OF ANNUAL CONVENTIONAL DEBATE

Resumption of debate on the following motion moved by the Chairman, Urban Council, at the meeting of the Council held on 15 January 1980:-

'THAT this Council endorse the Statement of Aims for 1980.'

CHAIRMAN (in English):-I am exercising my right of reply under Standing Order 21, Section 17.

Page 119 of 136