PLC Paper No. LS 62

Paper for the House Committee Meeting of the Provisional Legislative Council on 5 December 1997

Legal Service Division Report on Resolution under section 30 of the Public Finance Ordinance (Cap. 2)

Electrical and Mechanical Services Department Workshop Services Suspense Account and Electrical and Mechanical Services Department Suspense Account

The Secretary for the Treasury has given notice to move the above motion to close the above-mentioned accounts at the meeting of the Council on 17 December 1997.

2. The Electrical and Mechanical Services Department Suspense Account and the Electrical and Mechanical Services Department Workshop Services Suspense Account were set up under section 30 of the Public Finance Ordinance (Cap. 2) on 28 November 1990 and 24 February 1993 respectively.

3. These accounts were set up mainly to enable the Electrical and Mechanical Services Department to account for its workshop and vehicle maintenance. As the accounting functions of the two Suspense Accounts have been taken over by the Electrical and Mechanical Services Trading Fund established on 1 August 1996, the Administration now proposes to close these accounts with effect from 31 December 1997. The balance of the Suspense Accounts will be transferred to the general revenue.

4. The Administration has explained that the closure of these two Suspense Accounts has no impact on government finances overall.

5. The motion is in order from the legal point of view.

Prepared by

Ho Ying-chu, Anita
Assistant Legal Adviser
Provisional Legislative Council Secretariat
3 December 1997

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