Session No. 5 File name : cedb(cit)- doc
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- Examination of Estimates of Expenditure 2010-11
Question : In Matters Requiring Special Attention 2010-11, Invest Hong Kong indicated it will “strengthen aftercare support with enhanced research capabilities” Please clarify how research capabilities will be enhanced, how this will facilitate aftercare support and the estimated expenditure to be incurred in support of this effort. Asked by : Hon David K.P. Li Reply : Invest Hong Kong (InvestHK) has set up a new Research and Knowledge Management Team to undertake research to cater for the development needs of the Department with a view to enhancing its service offering and strategic focus. The dedicated team will be responsible for researching into business opportunities in target sectors and industries as well as the latest economic developments in competing economies. The team will also provide analysis of Hong Kong’s competitive advantages and keep close monitor of worldwide developments which will impact on the business environment in Hong Kong. With this enhanced research capability, InvestHK can better support strategic aftercare clients to expand or upgrade their operations through the provision of up-to-date business related information and advice on sector specific opportunities. The estimated expenditure involved is around $1 million.
Question : The provision for Invest Hong Kong for 2010-11 is shown to be 4.9% less than the revised estimate for 2009-10. It is stated that this is mainly due to a decreased cash flow requirement for a general non-recurrent item in 2010-11, partly offset by the increased provision to sustain the momentum of investment promotion work. However, according to the Finance Committee paper on the relevant non-recurrent financing request from 11 January 2008 (FCR(2007-08)43), the estimated cash flow commitment would be $42.8 million for 2008-09, $33.3 million for 2009-10 and $33.4 million for 2010-11. In other words, the non-recurrent expenditure in 2009-10 and 2010-11 was expected to be flat. Further, it is stated under Item Code 009 in the Estimates that $42.5 million was spent in 2009-10 instead of the originally proposed $33.3 million, and that only $25.8 million remains – short of the $33.4 million originally proposed to be spent in 2010-11. Please explain. Please also advise why it will be necessary to increase general departmental expenses by some $12 million in 2010-11, or 25%, in order to “sustain the momentum of investment promotion work”, given that the supplementary funding approved in 2008 was supposed to support an enhanced level of investment promotion work through to the end of 2010-11. Asked by : Hon. David K.P.LI Reply : Non-recurrent funding has been allocated to Invest Hong Kong (InvestHK) to enhance its investment promotion efforts since 2003-04, following Finance Committee’s approval in June 2003 to create a commitment of $200 million which was subsequently increased by $100 million to $300 million in January 2008. Since the provision of additional funding from 2003-04, InvestHK has been operating on an annual budget of around $110 million. The budget of InvestHK (in million) from 2004-05 to 2009-10 is illustrated below-
In 2010-11, the provision for InvestHK is $105.8 million. Among this, $25.8 million comes from the balance of the $300 million non-recurrent commitment while the remaining portion is provided from the recurrent expenditure. The balance of the non-recurrent funding will be $25.8 million in 2010-11 instead of the originally proposed $33.3 million because of the adjustment of cash flow requirement in 2009-10 to sustain the momentum of investment promotion activities which was important in the wake of the financial tsunami. In 2010-11, the increase of $11.7 million in general departmental expenses is essential for InvestHK to maintain the same level of budget as in previous years in order to sustain its current service level in view of the depletion of the non-recurrent commitment in 2010-11.
Directory: citb -> doc doc -> Replies to initial written questions raised by Finance Committee Members in examining the Estimates of Expenditure 2012-13 Director of Bureau : Secretary for Commerce and Economic Development Session No. 12 File name : cedb(cit)- doc Download 4.7 Mb. Share with your friends:
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