1995 — Page 477

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HONG KONG URBAN COUNCIL

already decreasing gradually. In 1985/86, it was 97% but in 1994/95 it was only 48.5%. Fifthly, it is not appropriate to set a target date for recovering full cost because it not only will bring difficulties to the present operations but will also lead to criticisms from the public if the target date cannot be met.

I think that the above reasons are only pretexts found by the Department for not recovering full cost. The questionable point is: is it inconsistent to subsidise cultural activities and recovering full cost at the same time? At present, the ticket charge for each ticket sold through the URBTIX system is $3, without differentiation between commercial or non-commercial activities. I think this is neither fair nor reasonable.

Somebody may ask: how can we differentiate commercial and non- commercial activities? In fact, it is not very difficult because the number of tickets sold is already a good index. Under the existing concessionary scheme for hirers of the Urban Council venues, ticket charges are adjusted according to the number of tickets sold for each activity. For 50 000 tickets or below, the charge for each ticket is $3; for 50 000 to 100 000 tickets, the charge is $2.65 per ticket; for 100 000 tickets, the charge for each ticket is $2.1. Can members guess which organisations' activities can sell over 50 000 tickets at one go? In fact, one does not have to be a smart person to tell that only those large entertainment companies and commercial organisations are able to do so. For performances of the performing companies of the Urban Council, such as 'The Walled City' performed jointly by three companies, the total number of tickets sold for the premiere performance and rerun is only about 30 000. For the small performing companies, charitable bodies and local groups, how many tickets could they sell? Are they benefited by the Council's subsidy policy? Do we really want to promote cultural activities or foster the growth of entertainment business? Therefore, I think we have to differentiate between commercial and non-commercial activities as regards concessionary ticket charge.

We suggest that while reviewing the recovery of full cost, we should also set comprehensive guidelines on the concessionary terms offered to non- commercial bodies and increase the subsidy to an acceptable level.

With regard to office accommodation cost, we know that at present, the accommodation cost is calculated at the rate of 4 cents per ticket at present, but we think that this amount cannot truly reflect the whole picture. Therefore, we suggest that the Department should take depreciation into account and include that in the accommodation cost in the next fee revision so that the expenditure in this aspect can be fully reflected.

The Democratic Party agrees in principle that fees for URBTIX services should be adjusted according to inflation and I think that it would be acceptable if a progressive method is adopted for recovery of cost. Moreover, I think that 5 years would be a feasible and reasonable time frame for achieving the target. However, as to the final timetable, we still have to depend

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