HONG KONG URBAN COUNCIL
3
MR. CHIANG SAI-CHEONG, CHAIRMAN OF THE FINANCE SELECT COMMITTEE (in Cantonese): Mr. Chairman, I rise to second the motion proposing the adoption of the Estimates of Revenue and Expenditure for 1996/97.
The Chairman has given me the responsibility of drawing Members' attention to the more important points concerning Council's financial situation, but first I would like to discuss some other related aspects of our work.
I am proud to say that the Urban Council has kept pace fully with the growing stature of Hong Kong and so has grown into one of the leading municipal authorities in Asia.
Hong Kong has become, in anybody's terms, one of the most affluent, most modern, and most dynamic territories in the world. As far as the Urban Council is concerned, in the ever expanding facilities and services it provides, Hong Kong is the envy of many great cities of the world.
But this quantum leap into international status has come at a price. To provide this ever widening range of venues, amenities, services and so on this Council faces increasing financial commitments.
Our expenditure in the present 1995/96 financial year will rise to an estimated $6.1 billion—an increase of about $800 million over the previous financial year—and our income will also rise, to an estimated $6.4 billion. This will take the Council's reserves to an estimated $2.79 billion at the end of this financial year.
But here, the financial picture becomes less rosy because, in the coming 1996/97 financial year, our expenditure will soar to an estimated $7.2 billion against the income of an estimated $6.9 billion. As a result, we will have to dip into our hard-earned reserves to the extent of an estimated $324 million.
This will reduce the Council's reserves to an estimated $2.46 billion. On the face of it, such an amount seems to be a comfortable cushion against unknown factors, but actually it represents only about 18 weeks' expenditure, which illustrates what a comparatively narrow cushion it is in real terms.
One of the main reasons for this coming shortfall is the Council's capital works construction programme, which at current pricing levels will cost about $4.06 billion over the five-year period 1995/96 to 1999/2000.
Nevertheless, all of the projects involved—whether already under construction or still on the drawing board—are necessary to further improve the lifestyle of the people of Hong Kong in keeping with the public's ever rising aspirations.
With these remarks, Mr. Chairman, I hereby second the motion.
The question was put.
The motion was carried unanimously.
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HONG KONG URBAN COUNCIL
3
MR. CHIANG SAI-CHEONG, CHAIRMAN OF THE FINANCE SELECT Committee (in Cantonese): Mr. Chairman, I rise to second the motion proposing the adoption of the Estimates of Revenue and Expenditure for 1996/97.
The Chairman has given me the responsibility of drawing Members' attention to the more important points concerning Council's financial situation, but first ! would like to discuss some other related aspects of our work.
I am proud to say that the Urban Council has kept pace fully with the growing stature of Hong Kong and so has grown into one of the leading municipal authorities in Asia.
Hong Kong has become, in anybody's terms, one of the most affluent, most modern, and most dynamic territories in the world. As far as the Urban Council is concerned, in the ever expanding facilities and services it provides, Hong Kong is the envy of many great cities of the world.
But this quantum leap into international status has come at a price. To provide this ever widening range of venues, amenities, services and so on this Council faces increasing financial commitments.
Our expenditure in the present 1995/96 financial year will rise to an estimated $6.1 billion—an increase of about $800 million over the previous financial year- and our income will also rise, to an estimated $6.4 billion. This will take the Council's reserves to an estimated $2.79 billion at the end of this financial year.
But here, the financial picture becomes less rosy because, in the coming 1996/97 financial year, our expenditure will soar to an estimated $7.2 billion against the income of an estimated $6.9 billion. As a result, we will have to dip into our hard- earned reserves to the extent of an estimated $324 million.
This will reduce the Council's reserves to an estimated $2.46 billion. On the face of it, such an amount seems to be a comfortable cushion against unknown factors, but actually it represents only about 18 weeks' expenditure, which illustrates what a comparatively narrow cushion it is in real terms.
One of the main reasons for this coming shortfall is the Council's capital works construction programme, which at current pricing levels will cost about $4.06 billion over the five-year period 1995/96 to 1999/2000.
Nevertheless, all of the projects involved—whether already under construction or still on the drawing board- -are necessary to further improve the lifestyle of the people of Hong Kong in keeping with the public's ever rising aspirations.
With these remarks, Mr. Chairman, I hereby second the motion.
The question was put.
The motion was carried unanimously.
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