Revenue fall 'due to rates'

PUBLISHED : Wednesday, 13 October, 1993, 12:00am
UPDATED : Wednesday, 13 October, 1993, 12:00am

LOWER interest rates have been cited as the main reason for a drop of almost one-third in the Land Development Corporation's (LDC) revenue.

The LDC's annual report says the fall to $33.3 million last year from $48.4 million in 1991 was due to lower interest rates which, together with the management fee income from its subsidiaries, contributed to the income of the urban redevelopment body.

Last year also saw the LDC running a second year of operating deficit at $53.2 million.

During the 1991-92 fiscal year, the LDC recorded a deficit of $36.9 million, compared with a surplus of $6.3 million in 1990-91.

LDC chairman Legislative Councillor Steven Poon Kwok-lim admitted the LDC was in urgent need of income and expected the projects of the current year would end up ''bearing fruit''.

Founded in 1987, the LDC is intended to improve the environment by redeveloping old urban areas.

Mr Poon said in the report that the LDC would expect the completion of the Tai Yuen Street, Wan Chai Street and Li Chit Street projects this fiscal year.

''Together with the Queen's Road Central building, they will bring much needed income to the corporation,'' he said.