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make good use of our over $2 billion surplus. I don't know if the Finance Select Committee can give a report shortly to the Council on how to utilize our surplus properly. Anyhow, don't keep it as reserve.
MR. CHIANG SAI-CHEONG (in Cantonese): Regarding Mr. Wong's question, please understand that basically, the Finance Select Committee does not incur expenditure. Rather, other committees such as the Capital Works Select Committee, Administration Select Committee, Libraries Select Committee, Culture Select Committee etc. do incur expenditure. In the past, the Finance Select Committee studied the expenditure situations of various Committees cautiously, but for money well spent, we seldom rejected applications. I wish to draw the attention of the Chairmen of other Select Committees here that if there is good use of money, we should fully utilize resources to serve the public as a whole and enhance the Council Services.
MR. SAN STEPHEN WONG HON-CHING (in Cantonese): Mr. Chairman, I want to follow up on my question. I know that the Finance Select Committee does not incur expenditure. I am asking it to discuss with other Select Committees. My question lies in whether the Finance Select Committee can, in short term, discuss with other Select Committees on how to utilize our surplus to serve the community at large.
Mr. Chiang Sai-Cheong (in Cantonese): Mr. Chairman, in fact, I did call on the Chairmen of different Select Committees for proposals to make good use of our surplus. Mr. WONG, I will contact each and every Select Committee in the short term for a meeting to discuss this matter.
CHAIRMAN (in Cantonese): As Chairman of the Urban Council, I have the duty to report something to you all. Unlike the past when 3.5% of government rates revenue was allocated to us, under current arrangements, the Secretary for the Treasury discusses with the Council every three years on our revenue from rates. We prepare a budget each year and after the budget has been agreed, we put in an amount from our reserve as contingency. That amount is equivalent to 12 weeks' expenditure of the Council. The Secretary for the Treasury has approved this.
So, I feel that when you discuss on how to utilize our reserve, we are going against our original spirit. I think you should be careful in your discussions. I am just giving you a reminder. I hope that when your suggestions are formally taken up by the Finance Select Committee for deliberation, this whole procedure can be thoroughly explained. The tacit agreement between the Secretary for the Treasury and the Council is for negotiations once every three years to be based on the annual estimate of expenditure. Negotiations are due next year. A sum equivalent to 12 weeks' expenditure of the Council will be added on to the total expenditure as a kind of reserve for contingencies such as civil service pay adjustment. 50% to 60% of our expenditure is on salary of civil
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make good use of our over $2 billion surplus. I don't know if the Finance Select Committee can give a report shortly to the Council on how to utilize our surplus properly. Anyhow, don't keep it as reserve.
MR. CHIANG SAI-CHEONG (in Cantonese):-Regarding Mr. Wong's question, please understand that basically, the Finance Select Committee does not incur expenditure. Rather, other committees such as the Capital Works Select Committee, Administration Select Committee, Libraries Select Committee, Culture Select Committee etc. do incur expenditure. In the past, the Finance Select Committee studied the expenditure situations of various Committees cautiously, but for money well spent, we seldom rejected applications. I wish to draw the attention of the Chairmen of other Select Committees here that if there is good use of money, we should fully utilize resources to serve the public as a whole and enhance the Council Services.
MR. SAN STEPHEN WONG HON-CHING (in Cantonese): Mr. Chairman, I want to follow up on my question. I know that the Finance Select Committee does not incur expenditure. I am asking it to discuss with other Select Committees. My question lies in whether the Finance Select Committee can, in short term, discuss with other Select Committees on how to utilize our surplus to serve the community at large.
Mr. Chiang Sai-Cheong (in Cantonese);—Mr. Chairman, in fact, I did call on the Chairmen of different Select Committees for proposals to make good use of our surplus. Mr. WONG, I will contact each and every Select Committee in the short term for a meeting to discuss this matter.
CHAIRMAN (in Cantonese):-As Chairman of the Urban Council, I have the duty to report something to you all. Unlike the past when 3.5% of government rates revenue was allocated to us, under current arrangements, the Secretary for the Treasury discusses with the Council every three years on our revenue from rates. We prepare a budget each year and after the budget has been agreed, we put in an amount from our reserve as contingency. That amount is equivalent to 12 weeks' expenditure of the Council. The Secretary for the Treasury has approved this.
So, I feel that when you discuss on how to utilize our reserve, we are going against our original spirit. I think you should be careful in your discussions. I am just giving you a reminder. I hope that when your suggestions are formally taken up by the Finance Select Committee for deliberation, this whole procedure can be thoroughly explained. The tacit agreement between the Secretary for the Treasury and the Council is for negotiations once every three years to be based on the annual estimate of expenditure. Negotiations are due next year. A sum equivalent to 12 weeks' expenditure of the Council will be added on to the total expenditure as a kind of reserve for contingencies such as civil service pay adjustment. 50% to 60% of our expenditure is on salary of civil
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