Urban services 'may worsen'
Urban services could deteriorate due to a funding shortfall of nearly $4 billion, department director Elaine Chung Lai-kwok said yesterday.
The Urban Services Department had expected to receive $22.5 billion in rates for the three financial years to 1999-2000, but was only allocated $18.5 billion.
'The era of abundant resources is over, we have to manage our money cautiously. I foresee difficulties in keeping or improving our service standard with the cut in income,' Ms Chung said.
'I hope the unions will understand our difficulties. Staff have to increase efficiency and some may need to take up more duties,' she said.
The department has 16,000 staff and 29 unions.
Some job vacancies will remain unfilled in the attempt to cut costs.
'About $1.2 billion will be saved in re-allocation of resources. Vacant posts will not be filled and will be regarded as natural wastage,' she said.
The Provisional Urban Council has decided to freeze fees and charges for a year, costing it $140 million.
Ms Chung said another way to increase cost-effectiveness was to rely more on information technology.
The ticket purchasing system - Urbtix and Sportix - would be replaced with a more powerful system, hopefully by the end of next year. A tender will go out in March.
