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# HONG KONG URBAN COUNCIL
## ADDRESS BY CHAIRMAN
CHAIRMAN (in English):--Ladies and Gentlemen, may I call the meeting to order.
## MINUTES
The minutes of meeting held on 9 November 1993 were confirmed.
## PAPERS
The following papers were laid on the table:
(1) Reports to the Urban Council by the Secretary, Urban Council, for the months of November and December 1993.
## MOTIONS
(1) DR. RONALD LEUNG DING-BONG, THE CHAIRMAN, URBAN COUNCIL, moved the following motion:—
"That the Estimates of Revenue and Expenditure for 1994/95 and the list of works which the Council proposes to undertake during the next financial year be approved for transmission to the Governor in accordance with Section 39 of the Urban Council Ordinance."
He said (in English):—I have the pleasure to move the motion:
'That the Estimates of Revenue and Expenditure for 1994/95 and the list of works which the Council proposes to undertake during the next financial year be approved for transmission to the Governor in accordance with Section 39 of the Urban Council Ordinance.'
I hereby move the adoption of today's Motion on the Urban Council's budget otherwise known as the 'Estimates of Revenue and Expenditure', with the accompanying list of capital works for the 1994/95 financial year beginning on 1 April 1994.
The budget presented to Members today is drawn from all budget papers which have been agreed by the Council's respective functional Select Committees following the most careful consideration and discussion, and have subsequently been approved by the Standing Committee of the Whole Council.
As shown in the Estimates discussed at the Standing Committee on 4 January 1994, the Council's annual expenditure has continued to grow at a rate commensurate with the ever expanding facilities, activities and services we provide in the Urban Council areas.
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To re-cap these figures, the Council's expenditure has increased from $2.45 billion in 1988/89 to an estimated $5.04 billion in the financial year ending on 31 March 1994, and an estimated $5.74 billion for the next financial year.
This represents an increase in spending of almost 135 per cent in seven years, and vividly illustrates both the growth in the Council's workload and the cumulative effects of rising costs brought about by various factors, particularly inflation.
At such a rate of growth, it is obvious that the Council cannot be expected to continue its present track record of accruing surpluses, and while there will in fact be a surplus of about $84 million for the current financial year, the Council will face a shortfall in the 1994/95 financial year.
This is the year when our expenditure will reach an unprecedented $5.74 billion as a result of increased expenditure on staff costs, capital works and additional commitments. A shortfall of $424 million is therefore projected.
However, Members will be pleased to hear that the Council, through past prudent measures in more favourable times, has been able to accumulate reserves totalling about $1.8 billion. Moreover the Council has already begun preliminary negotiations with the Government on ways to increase the Council's revenue base, and hopefully additional income will be forthcoming to help achieve a balanced budget.
Meanwhile, let me assure Members that the Council will continue to employ the most prudent measures to ensure, as in the past, that in everything we undertake, our prime considerations will be value-for-money and cost effectiveness.
I move the motion standing in my name.
MR. B. A. BERNACCHI, CHAIRMAN OF THE FINANCE SELECT COMMITTEE (in English): Mr. Chairman, I have pleasure in seconding the motion.
MR. WONG SIU-YEE (in Cantonese):—Mr. Chairman, a question. In your speech, you talked about an increase in expenditure because of an increase in work load. My question is: does that mean that we have increased our services to the members of public and that is the reason why there is an increase in expenditure?
MR. JOSEPH CHAN YUEK-SUT (in Cantonese):—Mr. Chairman, this is time for us to give comments rather than to ask questions.
MR. CHAIRMAN (in English):—Yes, indeed, so I have to rule this question out of order because this issue has gone through the Standing Committee in which all the questions and answers and clarification have been sought. At this stage, it is for our formal approval at this open meeting.
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HONG KONG URBAN COUNCIL
ADDRESS BY CHAIRMAN
CHAIRMAN (in English):--Ladies and Gentlemen, may I call the meeting to order.
MINUTES
The minutes of meeting held on 9 November 1993 were confirmed.
PAPERS
The following papers were laid on the table:
(1) Reports to the Urban Council by the Secretary, Urban Council, for the
months of November and December 1993.
MOTIONS
(1) DR. RONALD LEUNG DING-BONG, THE CHAIRMAN, URBAN COUNCIL, moved the following motion:—
"That the Estimates of Revenue and Expenditure for 1994/95 and the list of works which the Council proposes to undertake during the next financial year be approved for transmission to the Governor in accordance with Section 39 of the Urban Council Ordinance."
He said (in English):—I have the pleasure to move the motion:
'That the Estimates of Revenue and Expenditure for 1994/95 and the list of works which the Council proposes to undertake during the next financial year be approved for transmission to the Governor in accordance with Section 39 of the Urban Council Ordinance."
I hereby move the adoption of today's Motion on the Urban Council's budget otherwise known as the 'Estimates of Revenue and Expenditure', with the accompanying list of capital works for the 1994/95 financial year beginning on 1 April 1994.
The budget presented to Members today is drawn from all budget papers which have been agreed by the Council's respective functional Select Committees following the most careful consideration and discussion, and have subsequently been approved by the Standing Committee of the Whole Council.
As shown in the Estimates discussed at the Standing Committee on 4 January 1994, the Council's annual expenditure has continued to grow at a rate commensurate with the ever expanding facilities, activities and services we provide in the Urban Council areas.
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HONG KONG URBAN COUNCIL
Page 69 of 132
141
To re-cap these figures, the Council's expenditure has increased from $2.45 billion in 1988/89 to an estimated $5.04 billion in the financial year ending on 31 March 1994, and an estimated $5.74 billion for the next financial year.
This represents an increase in spending of almost 135 per cent in seven years, and vividly illustrates both the growth in the Council's workload and the cumulative effects of rising costs brought about by various factors, particularly inflation.
At such a rate of growth, it is obvious that the Council cannot be expected to continue its present track record of accruing surpluses, and while there will in fact be a surplus of about $84 million for the current financial year, the Council will face a shortfall in the 1994/95 financial year.
This is the year when our expenditure will reach an unprecedented $5.74 billion as a result of increased expenditure on staff costs, capital works and additional commitments. A shortfall of $424 million is therefore projected.
However, Members will be pleased to hear that the Council, through past prudent measures in more favourable times, has been able to accumulate reserves totalling about $1.8 billion. Moreover the Council has already begun preliminary negotiations with the Government on ways to increase the Council's revenue base, and hopefully additional income will be forthcoming to help achieve a balanced budget.
Meanwhile, let me assure Members that the Council will continue to employ the most prudent measures to ensure, as in the past, that in everything we undertake, our prime considerations will be value-for-money and cost effectiveness.
I move the motion standing in my name.
MR. B. A. BERNACCHI, CHAIRMAN OF THE FINANCE SELECT COMMITTEE (in English): Mr. Chairman, I have pleasure in seconding the motion.
MR. WONG SIU-YEE (in Cantonese):-Mr. Chairman, a question. In your speech, you talked about an increase in expenditure because of an increase in work load. My question is: does that mean that we have increased our services to the members of public and that is the reason why there is an increase in expenditure?
MR. JOSEPH CHAN YUEK-SUT (in Cantonese):-Mr. Chairman, this is time for us to give comments rather than to ask questions.
MR. CHAIRMAN (in English):-Yes, indeed, so I have to rule this question out of order because this issue has gone through the Standing Committee in which all the questions and answers and clarification have been sought. At this stage, it is for our formal approval at this open meeting.
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