Lantau plan affordable

March 20, 2019

Secretary for Development Michael Wong is confident the cost of reclamation and other projects under the Lantau Tomorrow Vision plan will not deplete public coffers.

 

Mr Wong made the statement in response to questions from the media if the Government is misleading the public with its estimate of $624 billion for building the Kau Yi Chau Artificial Islands and related key projects by not using money-of-the-day calculations.

 

“For the MOD (money-of-the-day), if you listen to some of the experts yesterday, before we have a detailed payment schedule, it is actually impossible to work out the MOD figures.”

 

He said another factor that should be taken into account is future inflation.

 

“If you look at inflation, it would not just affect cost and expenditure, it would also affect revenue and income. If our past experience is any guide, then naturally the increase in the value of the land, in the past it’s usually quicker than the rise in inflation.

 

“But if we assume that both are the same, then our conclusions still hold true.”

 

Mr Wong added the Government’s ability to pay for public infrastructure is increasing.

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