Page 601 of 606
584
PROVISIONAL URBAN COUNCIL
Basing on past experiences, PUC would start negotiating with the Government through USD on the financial arrangements for the coming triennium about 5 months before the end of the prevailing triennium. It is because the USD's five-year forecast of revenue and expenditure is completed in September and by that time, the Council should have a clear and precise understanding of its financial position. Therefore, it is the most suitable time to start the negotiation.
Members are aware that the Government is now conducting a Review of District Organizations. In his Policy Address delivered in October last year, the Chief Executive said that there was no need to retain the Provisional Municipal Councils (PMCs) after the terms of office of their members expire at the end of 1999. The Government is now drafting a Bill to transfer the various functions, rights, duties, and liabilities of the PMCs to the Government and other statutory bodies. Meanwhile, the two PMCs are advocating an option of 'One Council One Department'. At the end of the day, the funding arrangements for the provision of municipal services must be compatible with the findings of the Review of District Organizations. I think things can be more certain by the end of this year. As a matter of fact, even with the existing mechanism, the future resources needed cannot be ascertained until September this year when work on the five-year forecast has been finalized and negotiations with the Government can be commenced.
Regarding capital projects, the PUC has its own Capital Works Programme. With the commitment of funds by the Government, the PUC can determine the priority of capital projects on its own. As for the future, as was mentioned above, we have to wait for the results of the Review of District Organizations. Should the 'One Council One Department' option be adopted, the Capital Works Programme of both the PUC and the Provisional Regional Council (ProRC) will be merged. However, if it is decided that the two PMCs need not be retained, I expect the capital works projects of the two PMCs will be incorporated into the Government's Capital Works Programme.
MR. WU CHI-WAI (in Cantonese): I would like to ask the Chairman of the FIN SIC whether the Council has started to forecast its revenue and expenditure. As our estimates form the basis of our funding applications to the Government, I wonder if the estimates would have to be scrutinized by the Council before being finalized.
My second question refers to the last paragraph in the reply. Mr. Chiang Sai-cheong mentioned that if the two Municipal Councils are to be scrapped, the capital projects of the two Municipal Councils will be incorporated into the Government's Capital Works Programmes. As far as you know, Mr. Chiang, will our capital projects be implemented as scheduled if they are to be incorporated into the Government's Capital Works Programme?
Page 601 of 606
Page 601 of 606
584
PROVISIONAL URBAN COUNCIL
Basing on past experiences. PUC would start negotiating with the Government through USD on the financial arrangements for the coming triennium about 5 months before the end of the prevailing triennium. It is because the USD's five-year forecast of revenue and expenditure is completed in September and by that time, the Council should have a clear and precise understanding of its financial position. Therefore, it is the most suitable time to start the negotiation.
Members are aware that the Government is now conducting a Review of District Organizations. In his Policy Address delivered in October last year. the Chief Executive said that there was no need to retain the Provisional Municipal Councils (PMCs) after the terms of office of their members expire at the end of 1999. The Government is now drafting a Bill to transfer the various functions, rights, duties and liabilities of the PMCs to the Government and other statutory bodies. Meanwhile, the two PMCs are advocating an option. of 'One Council One Department. At the end of the day, the funding arrangements for the provision of municipal services must be compatible with the findings of the Review of District Organizations. I think things can be more certain by the end of this year. As a matter of fact, even with the existing mechanism, the future resources needed cannot be ascertained until September this year when work on the five-year forecast has been finalized and negotiations with the Government can be commenced.
Regarding capital projects, the PUC has its own Capital Works Programme. With the commitment of funds by the Government, the PUC can determine the priority of capital projects on its own. As for the future, as was mentioned above, we have to wait for the results of the Review of District Organizations. Should the 'One Council One Department' option be adopted, the Capital Works Programme of both the PUC and the Provisional Regional Council (ProRC) will be merged. However, if it is decided that the two PMCs need not be retained, I expect the capital works projects of the two PMCs will be incorporated into the Government's Capital Works Programme.
MR. WU CHI-WAI (in Cantonese):-I would like to ask the Chairman of the FIN SIC whether the Council has started to forecast its revenue and expenditure. As our estimates form the basis of our funding applications to the Government, I wonder if the estimates would have to be scrutinized by the Council before being finalized.
My second question refers to the last paragraph in the reply. Mr. Chiang Sai- cheong mentioned that if the two Municipal Councils are to be scrapped, the capital projects of the two Municipal Councils will be incorporated into the Government's Capital Works Programmes. As far as you know, Mr. CHIANG, will our capital projects he implemented as scheduled if they are to be incorporated into the Government's Capital Works Programme?
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