Arts Hub Shouldn't Depend On Handouts: Govt

The government has poured cold water on suggestions from lawmakers to help fund the construction of some venues at the cash-strapped West Kowloon arts hub, saying the operator could not expect government funds every time it runs out of cash.

The arts hub was supposed to fund itself after an initial government cash injection, but even before most of its venues are built, it's already in deep financial trouble.

Investment returns have been less than hoped; while money-making retail, dining and entertainment facilities have been delayed. The West Kowloon Cultural District Authority (WKCDA) is almost HK$12 billion short of what it needs to build all the planned venues, and is projected to run up a deficit of HK$1.7 billion over the next three financial years.

The authority is planning to take out loans or issue bonds to generate the cash it needs. But tourism sector lawmaker Yiu Si-wing and People Power councillor Ray Chan both suggested at a Legco meeting that the government should consider giving the project a hand.

They said the government can either pump more money into the hub, or even take control of part of the area so that it can build some of the planned facilities itself.

This way, they said, the promised venues could be ready for public use sooner.

But Permanent Secretary for Home Affairs Cherry Tse said this may not be the best idea, as the plan is to allow the WKCDA to be financially disciplined and not to look for handouts whenever it is in need of funds.

Tse said that the government had already given the hub an upfront endowment of HK$21.6 billion in 2008. It had also waived the land premium for its cultural and arts facilities.