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do not differentiate between commercial and non-commercial hirers. If we have to study in greater detail whether commercial hirers have been subsidized, I think we should look at the overall services provided. At present, there are both commercial and non-commercial hirers hiring our venues. Standard has been set for hire charges. We have set a basic hire charge. Then if the number of shows performed exceeds a certain level, we would charge the hirer the highest rate of venue hire charge, i.e., 20% of their ticket sales from the number of shows performed. For instance, if the highest ticket price of concert is $300, eventually, we may be able to get $70 odd per ticket as the venue hire charges. For programmes organized by non-profit making bodies, however, it is unlikely that we can get that amount of hire charges due to the number of shows they organise. In respect of our own income, we should look at the ticketing service as part of the services we provide for our hirers. It is difficult for us to charge each service separately because we consider our income as a whole.
MISS ADA WONG YING-KAY (in Cantonese):—Mr. Chairman, I have 2 follow-up questions. Firstly, we learnt in 1985 that the policy for URBTIX was to attain cost recovery in the long run. In 1989, there were also papers indicating that cost recovery would be attained within a reasonable time frame. In 1994 when the Legislative Council invited the Director of Urban Services to attend their PAC meeting, the Director reiterated that the policy of cost recovery had not been abandoned though a time-table could not be set for it. Today, we hear the same answer that we would not set a time-table for attaining cost recovery. I would like Mr. SUEN to answer directly the question of whether or not the Council has abandoned the policy of attaining cost recovery from URBTIX services.
The second question concerns the last part of the question which is on improving productivity and cost-effectiveness. Following the report of the Director of Audit, the Department undertook to review the cost-effectiveness of telephone enquiry services at the telephone booking office and to study the possibility of installing a telephone switching system which would forward booking calls to staff at the ticketing office in order to improve productivity. I would like to know whether this telephone switching facility will be introduced. This issue has dragged on since 1994, do we have a time-table to implement this programme?
MR. SUEN KAI-CHEONG (in Cantonese):—In fact, there is nothing such as the Council abandoning the policy of full cost recovery. This can be seen from the information we have in hand. In the minutes of the meeting held by the Urban Council Public Accounts Committee on 24 September 1994, we reiterated our stand in response to the Director of Audit's Report No. 22 that full cost recovery from ticketing services was not in line with our policy in subsidising cultural services. This affirmation was endorsed and supported by the SCWC. It is also recorded in the minutes of the SCWC meeting on 18 October 1994 that the meeting endorsed the response of the Urban Council Public Accounts
Page 394 of 485
Page 394 of 485
Page 394 of 485
Page 394 of 485
HONG KONG URBAN COUNCIL
107
do not differentiate between commercial and non-commercial hirers. If we have to study in greater detail whether commercial hirers have been subsidized, I think we should look at the overall services provided. At present, there are both commercial and non-commercial hirers hiring our venues. Standard has been set for hire charges. We have set a basic hire charge. Then if the number of shows performed exceeds a certain level, we would charge the hirer the highest rate of venue hire charge, i.e., 20% of their ticket sales from the number of shows performed. For instance, if the highest ticket price of concert is $300, eventually, we may be able to get $70 odd per ticket as the venue hire charges. For programmes organized by non-profit making bodies, however, it is unlikely that we can get that amount of hire charges due to the number of shows they organise. In respect of our own income, we should look at the ticketing service as part of the services we provide for our hirers. It is difficult for us to charge each service separately because we consider our income as a whole.
MISS ADA WONG YING-KAY (in Cantonese):—Mr. Chairman, I have 2 follow- up questions. Firstly, we learnt in 1985 that the policy for URBTIX was to attain cost recovery in the long run. In 1989, there were also papers indicating that cost recovery would be attained within a reasonable time frame. In 1994 when the Legislative Council invited the Director of Urban Services to attend their PAC meeting, the Director reiterated that the policy of cost recovery had not been abandoned though a time-table could not be set for it. Today, we hear the same answer that we would not set a time-table for attaining cost recovery. I would like Mr. SUEN to answer directly the question of whether or not the Council has abandoned the policy of attaining cost recovery from URBTIX services.
The second question concerns the last part of the question which is on improving productivity and cost-effectiveness. Following the report of the Director of Audit, the Department undertook to review the cost-effectiveness of telephone enquiry services at the telephone booking office and to study the possibility of installing a telephone switching system which would forward booking calls to staff at the ticketing office in order to improve productivity. I would like to know whether this telephone switching facility will be introduced. This issue has dragged on since 1994, do we have a time-table to implement this programme?
MR. SUEN KAI-CHEONG (in Cantonese):—In fact, there is nothing such as the Council abandoning the policy of full cost recovery. This can be seen from the information we have in hand. In the minutes of the meeting held by the Urban Council Public Accounts Committee on 24 September 1994, we reiterated our stand in response to the Director of Audit's Report No. 22 that full cost recovery from ticketing services was not in line with our policy in subsidising cultural services. This affirmation was endorsed and supported by the SCWC. It is also recorded in the minutes of the SCWC meeting on 18 October 1994 that the meeting endorsed the response of the Urban Council Public Accounts
Page 394 of 485
Page 394 of 485
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