Measures have been proposed to ensure the large amount of resources vested in the West Kowloon Cultural District Authority will be deployed in a prudent and transparent manner to safeguard public interest, the Home Affairs Bureau says.

The bureau told lawmakers today the authority's resources will include all money paid by the Government; investment income; money received by it for operating and managing arts, cultural and the related facilities; and property, including loans, sponsorships, donations received by it.

The authority is expected to develop and operate the arts and cultural facilities, related and ancillary facilities in a financially sustainable manner. It must invest in a financially prudent manner the funds available for investment in such classes or descriptions of investment as the Financial Secretary may specify.

Finance matters

It may also borrow and raise money and enter into other financial transactions in connection with its financial affairs. The Chief Executive can direct that the authority may not borrow or raise any sum which exceeds a specified amount without the Financial Secretary's approval. With approval the authority can set up reserve funds.

As the authority serves the community the bureau proposes to exempt it from taxation under the Inland Revenue Ordinance and stamp duty to ease its financial burden.

To ensure a reasonably high degree of transparency for its activities the bureau suggests the authority send annually to the Government a corporate plan covering its activity programme in the coming three years, and a business plan which sets out the details of its activities and projects that will be conducted in the coming year.

Efficiency ensured

On financial monitoring the authority will form an audit committee and appoint a qualified auditor to check accounts. The Director of Audit will be empowered to scrutinise the economy, efficiency and effectiveness with which the authority uses its resources in performing its functions.

The authority has to keep proper accounts and records of its transactions, prepare a statement of accounts within three months after the expiry of a financial year, submit an annual report and a statement of accounts to the Financial Secretary.

To avoid any potential conflict of interest the authority's board and committee members must disclose their interests upon their first appointment and as and when circumstances require. All interests declared will be recorded in a register available for public inspection.

The authority must consult the public on matters relating to the cultural district's development and operation. It will be put under the Ombudsman's scrutiny while its employees and members will be subject to the Prevention of Bribery Ordinance.

Development plan

On planning, the authority must prepare a development plan to layout the different land uses for the various facilities in the cultural district. In drawing up the plan the authority has to consult the Government and the public, consider the views received and ensure all development parameters set out in the outline zoning plan are complied with.

The bureau suggested to grant the necessary land to the authority through one or more land grants, with the land area to be decided after the development plan has been approved by the Chief Executive in Council. The land-related matters, including facilities the authority has to provide, will be largely dealt with in the land grant.