Games expenses clarified

July 06, 2011

Money spent on the Hong Kong 2009 East Asian Games did not exceed revenue. This was the Home Affairs Bureau's response to the conclusions and recommendations made by the Legislative Council Public Accounts Committee report on the games.
 
The bureau said the unbudgeted expenditures were all supported by the East Asian Games Company through sponsorship, tickets proceeds and souvenir sales.
 
In organising the games, the bureau said the Government strictly followed the principle of managing public finances prudently and sought to keep expenditure within revenue limits.
 
In the funding paper submitted to the Legislative Council's Finance Committee in January, 2006, the Government estimated the gross expenditure required for organising the games would be $240 million, while revenue would be $117 million.
 
Against this background, a funding application of $123 million was made to support the organisation of the games. After the event the actual expenditure of the games after audit amounted to $291.1 million, while revenue was $180 million.
 
Of the $123 million funding approved by the Finance Committee, the East Asian Games Company only spent $111.1 million with a surplus of $11.9 million, not exceeding the amount approved by the committee.
 
In relation to the Public Accounts Committee's recommendation for calculating the “full direct cost” of the games, the bureau said the Leisure & Cultural Services Department organised community participation activities as part of its regular duties.
 
The bureau also added that funding for the games legacy projects came from $10 million sponsorship from the East Asian Games Company after the event. The Secretary for Home Affairs and the company’s board of directors, with due consideration of various factors, agreed that donating the unallocated $10 million to two athletes' funds was consistent with the company’s objectives.