1995 — Page 45

Urban Council Proceedings 市政局議事錄 All AI Reviewed

Page 45 of 485

HONG KONG URBAN COUNCIL

overall utilization of the Theatre has gradually increased to 78% in 1994/95, with usage by hirers, that is outsiders' uses other than the Council itself being under 45%. In other words our programmes are staged in the Centre in order to boost the utilization rate to 78%. During the same year, 31 organizations from the Wong Tai Sin and Kwun Tong districts hired the Theatre for a total of only 51 days.

The utilization level of the two other community arts centres, namely the Sheung Wan Civic Centre and the Sai Wan Ho Civic Centre is roughly the same. Whilst the centrally located Hong Kong Cultural Centre and City Hall continue to be popular with hirers, there is still spare capacity at both the Hong Kong Cultural Centre Concert Hall and the City Hall Concert Hall, as utilization of these two facilities, including the Council's own usage is 87% and 82% respectively. The hirer usages are 41% and 32% respectively. In other words, on the whole, the utilization rates of the cultural venues are not up to our satisfaction.

The Council is, of course, aware of the Kwun Tong District's aspirations for a large multi-purpose civic centre, and has on numerous occasions since 1989 explained the Council's and the Government's position to the Kwun Tong District Board. The provision of a large multi-purpose civic centre needs to be carefully considered taking into account the substantial capital cost (estimated to be in the region of $400m at current day price) and annual operating cost (estimated at $21m). Taking into account the annual operating cost alone, it will be difficult to justify the provision of a large scale multi-purpose civic centre unless its utilization level can reach at least 70% and it can generate an annual revenue of about $12.6m to give a subsidy of 40% at current price levels. So the utilization rate and the revenue earning capacity is very important to the cost effectiveness of a multi-purpose civic centre. The information previously supplied by the Kwun Tong District Board in support of the request for a large multi-purpose civic centre failed to convince the Government that there was sufficient demand to make the provision of a large multi-purpose civic centre in Kwun Tong cost-effective. Of course, the Select Committee concerned will pay close attention to this issue.

Mr. Li Wah-ming (in Cantonese):—Mr. Chairman I am not quite satisfied with Mr. Pao's answer. He says that the civic centre is to serve those living in East Kowloon which includes Kwun Tong, Wong Tai Sin and maybe Kowloon City. There is also no civic centre in Kowloon City. In those districts there is a population of 1 to 2 million. The utilization rate of Ngau Chi Wan Civic Centre has risen to 78% in the previous 7 years. Mr. Pao is still not satisfied with the utilization rate of 78%, and does he regard that 78% utilization is still too low? This is my first question.

The second question is: is the 40% subsidy level an established policy and cannot be reviewed or changed?

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Page 45 of 485 HONG KONG URBAN COUNCIL 23 overall utilization of the Theatre has gradually increased to 78% in 1994/95, with usage by hirers, that is outsiders' uses other than the Council itself being under 45%. In other words our programmes are staged in the Centre in order to boost the utilization rate to 78%. During the same year, 31 organizations from the Wong Tai Sin and Kwun Tong districts hired the Theatre for a total of only 51 days. 7. The utilization level of the two other community arts centres, namely the Sheung Wan Civic Centre and the Sai Wan Ho Civic Centre is roughly the same. Whilst the centrally located Hong Kong Cultural Centre and City Hall continue to be popular with hirers, there is still spare capacity at both the Hong Kong Cultural Centre Concert Hall and the City Hall Concert Hall, as utilization of these two facilities, including the Council's own usage is 87% and 82% respectively. The hirer usages are 41% and 32% respectively. In other words, on the whole, the utilization rates of the cultural venues are not up to our satisfaction. 8. The Council is, of course, aware of the Kwun Tong District's aspirations for a large multi-purpose civic centre, and has on numerous occasions since 1989 explained the Council's and the Government's position to the Kwun Tong District Board. The provision of a large multi-purpose civic centre needs to be carefully considered taking into account the substantial capital cost (estimated to be in the region of $400m at current day price) and annual operating cost (estimated at $21m). Taking into account the annual operating cost alone, it will be difficult to justify the provision of a large scale multi-purpose civic centre unless its utilization level can reach at least 70% and it can generate an annual revenue of about $12.6m to give a subsidy of 40% at current price levels. So the utilization rate and the revenue earning capacity is very important to the cost effectiveness of a multi-purpose civic centre. The information previously supplied by the Kwun Tong District Board in support of the request for a large multi-purpose civic centre failed to convince the Government that there was sufficient demand to make the provision of a large multi-purpose civic centre in Kwun Tong cost-effective. Of course, the Select Committee concerned will pay close attention to this issue. Mr. Li Wah-ming (in Cantonese):—Mr. Chairman I am not quite satisfied with Mr. Pao's answer. He says that the civic centre is to serve those living in East Kowloon which includes Kwun Tong, Wong Tai Sin and maybe Kowloon City. There is also no civic centre in Kowloon City. In those districts there is a population of 1 to 2 million. The utilization rate of Ngau Chi Wan Civic Centre has risen to 78% in the previous 7 years. Mr. Pao is still not satisfied with the utilization rate of 78%, and does he regard that 78% utilization is still too low? This is my first question. The second question is: is the 40% subsidy level an established policy and cannot be reviewed or changed? Page 45 of 485 Page 45 of 485 Page 45 Page 46 Page 46 of 485 Page 46 of 485

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Page 45 of 485 Page 45 of 485 HONG KONG URBAN COUNCIL 23 overall utilization of the Theatre has gradually increased to 78% in 1994/95, with usage by hirers, that is outsiders' uses other than the Council itself being under 45%. In other words our programmes are staged in the Centre in order to boost the utilization rate to 78%. During the same year. 31 organizations from the Wong Tai Sin and Kwun Tong districts hired the Theatre for a total of only 51 days. 7. The utilization level of the two other community arts centres, namely the Sheung Wan Civic Centre and the Sai Wan Ho Civic Centre is roughly the same. Whilst the centrally located Hong Kong Cultural Centre and City Hall continue to be popular with hirers, there is still spare capacity at both the Hong Kong Cultural Centre Concert Hall and the City Hall Concert Hall, as utilization of these two facilities, including the Council's own usage is 87% and 82% respectively. The hirer usages are 41% and 32% respectively. In other words, on the whole, the utilization rates of the cultural venues are not up to our satisfaction. 8. The Council is, of course, aware of the Kwun Tong District's aspirations for a large multi-purpose civic centre, and has on numerous occasions since 1989 explained the Council's and the Government's position to the Kwun Tong District Board. The provision of a large multi-purpose civic centre needs to be carefully considered taking into account the substantial capital cost (estimated to be in the region of $400 m at current day price) and annual operating cost (estimated at $21 m). Taking into account the annual operating cost alone, it will be difficult to justify the provision of a large scale multi-purpose civic centre unless its utilization level can reach at least 70% and it can generate an annual revenue of about $12.6 m to give a subsidy of 40% at current price levels. So the utilization rate and the revenue carning capacity is very important to the cost effectiveness of a multi-purpose civic centre. The information previously supplied by the Kwun Tong District Board in support of the request for a large multi-purpose civic centre failed to convince the Government that there was sufficient demand to make the provision of a large multi-purpose civic centre in Kwun Tong cost-effective. Of course, the Select Committee concerned will pay close attention to this issue. Mr. Li Wah-ming (in Cantonese):—Mr. Chairman I am not quite satisfied with Mr. Pao's answer. He says that the civic centre is to serve those living in East Kowloon which includes Kwun Tong, Wong Tai Sin and maybe Kowloon City. There is also no civic centre in Kowloon City. In those districts there is a population of 1 to 2 million. The utilization rate of Ngau Chi Wan Civic Centre has risen to 78% in the previous 7 years. Mr. Pao is still not satisfied with the utilization rate of 78%, and does he regard that 78% utilization is still too low? This is my first question. The second question is: is the 40% subsidy level an established policy and cannot be reviewed or changed? Page 45 of 485 Page 45 of 485 Page 45Page 46 Page 46 of 485 Page 46 of 485

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Page 45 of 485

HONG KONG URBAN COUNCIL

overall utilization of the Theatre has gradually increased to 78% in 1994/95, with usage by hirers, that is outsiders' uses other than the Council itself being under 45%. In other words our programmes are staged in the Centre in order to boost the utilization rate to 78%. During the same year. 31 organizations from the Wong Tai Sin and Kwun Tong districts hired the Theatre for a total of only 51 days.

The Council is, of course, aware of the Kwun Tong District's aspirations for a large multi-purpose civic centre, and has on numerous occasions since 1989 explained the Council's and the Government's position to the Kwun Tong District Board. The provision of a large multi-purpose civic centre needs to be carefully considered taking into account the substantial capital cost (estimated to be in the region of $400 m at current day price) and annual operating cost (estimated at $21 m). Taking into account the annual operating cost alone, it will be difficult to justify the provision of a large scale multi-purpose civic centre unless its utilization level can reach at least 70% and it can generate an annual revenue of about $12.6 m to give a subsidy of 40% at current price levels. So the utilization rate and the revenue carning capacity is very important to the cost effectiveness of a multi-purpose civic centre. The information previously supplied by the Kwun Tong District Board in support of the request for a large multi-purpose civic centre failed to convince the Government that there was sufficient demand to make the provision of a large multi-purpose civic centre in Kwun Tong cost-effective. Of course, the Select Committee concerned will pay close attention to this issue.

The second question is: is the 40% subsidy level an established policy and cannot be reviewed or changed?

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