Sell off civil servants' flats and raise water rates for 'future fund', say advisers
Other suggestions in report on setting up 'future fund' savings scheme include raising water fees
The government should dispose of all its quarters for senior civil servants and raise water tariffs to ensure it has the resources to overcome unexpected financial difficulties, according to advisers.
These are among a number of proposals put forward by the Working Group on Long-Term Fiscal Planning yesterday on the establishment of a "future fund" savings scheme. The report also recommends raising money by using government buildings as underlying assets to support the issue of bonds, as well as selling government shares.
Dr Billy Mak Sui-choi from Baptist University's Department of Finance and Decision Sciences said the suggestions were normal commercial practices used to improve cash flow.
Mak said the government could use its reserves to cover a deficit, adding the administration should sell assets in a phased manner to maximise returns.
"If you want to sell the entire block of building in one go there may be only a few potential buyers, but if you divided it into several parts the final price may be better," he said.
The working group noted there would be an oversupply of residences for senior civil servants who joined before October in 1990, as the demand for these units gradually decreases. It was estimated that selling the nine sites and 220 units could raise HK$59 billion.
"Given the government's policy priority of increasing land supply for housing and other developments, it may be difficult to justify retaining some surplus under-utilised sites to generate revenue," the report said.
