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Following is a question by the Hon Cyd Ho and a written reply by the Secretary for Home Affairs, Mr David Lan, in the Legislative Council today (June 21):
Question:
Regarding the financial management of the public-funded Hong Kong Philharmonic Orchestra ("HKPO"), will the Government inform this Council whether it knows:
(a) the total income and expenditure of the HKPO in each of the past three years, together with a detailed breakdown of such income (including government subsidies and other revenues) and expenditure;
(b) the revenue the HKPO received from the sale of the copyright of its performances and sound recordings since it entered into a contract for such with the Global Music Network ("GMN") last year; and
(c) the number of musicians from outside Hong Kong invited by the HKPO, since the above contract took effect, to perform with it in Hong Kong who were also engaged in the recording musical works for the GMN during their stay in Hong Kong, and how the expenses (including those for air passage, hotel accommodation and remuneration) were apportioned between the HKPO and the GMN?
Reply:
Madam President,
According to information provided by the Hong Kong Philharmonic Orchestra ("HKPO"), my replies to Hon Cyd Ho's questions are:
(a) The total income and expenditure of the HKPO in the past three years with detailed breakdown is summarised below:
1997/1998 1998/1999 1999/2000(Note)
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HK$ HK$ HK$
INCOME
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Cash Subsidies
from
Provisional
Urban
Council (up to
31.12.1999) /
Home Affairs
Bureau
(from
1.1.2000) 63,731,679 67,438,022 62,865,341
Revenue from
Performances 17,092,692 15,550,632 20,109,572
Interest
income 1,915,480 2,174,870 1,201,854
Sponsorship and
Fund raising
Income 2,273,852 1,347,321 1,816,845
Income from
Recording 1,046,354 1,116,905 121,087
Advertisements 471,410 298,202 402,028
Miscellaneous
Income 51,489 116,316 70,367
Total 86,582,956 88,042,268 86,587,094
1997/1998 1998/1999 1999/2000(Note)
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HK$ HK$ HK$
EXPENDITURE
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Musicians
salaries
And
benefits 51,888,084 54,836,563 55,963,125
Music Director
and guest
conductors 5,356,303 6,453,699 6,411,422
Soloists 3,877,565 4,653,880 5,463,443
Other concert
Expenses 3,566,395 3,464,808 3,442,995
Promotion and
Publicity 5,212,161 5,054,496 6,319,121
Administrative
and
general 12,198,488 12,872,011 12,740,623
Total 82,098,996 87,335,457 90,340,729
[Note : For the 1999/2000 financial year, the figures may need to be adjusted subject to annual final audit.]
(b) Contracts with the Global Music Network (GMN) were entered into on a project basis. Since 12 March 1998, 6 contracts have been signed. The recordings have not yet been turned into commercial products yet, i.e. compact discs and tracks available for downloading or pay-to-listen services. It is expected that they will become available in the market in the near future.
For studio recordings and live concert recordings, the HKPO will receive 10% and 5% royalties respectively based on the sale price for each disc sold, each download or each time when a customer uses the pay-to-listen service. So far, the HKPO has already received an advance royalty of ¢G22,500 (equivalent to HK$277,070) and recording fees amounting to HK$816,456 from GMN.
(c) The HKPO has engaged a total of 130 guest artists since March 1998. Out of the 130, 18 were recorded by GMN. While the concert fees, airfare and hotel accommodation for these 18 artists were paid by the HKPO or sponsors, the recording fees were the responsibility of the GMN.
End/Wednesday, June 21, 2000
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