Permanent Secretary for Home Affairs Raymond Young says a proposed $3 billion injection into the Arts & Sport Development Fund will be used as seed money, adding the annual investment return will provide additional resources to subsidise arts, culture and sports' long-term development.

Speaking on a radio talk show today, Mr Young said based on the assumption of an average annual investment return rate of 4% to 5%, in the long run, the proposed injection may generate around $120 million to $150 million of annual proceeds. The new income will be shared between the arts and sports portions equally.

The Government proposes an enhanced provision of around $30 million be reserved for schemes and projects the Arts Development Council undertakes or recommends. The subsidy level sought for those schemes and projects is up to a ceiling of $2 million.

A newly established committee will advise the Secretary for Home Affairs on how the remainder of the arts portion of the development fund should be used. The money should support projects of a larger scale than those funded by the Arts Development Council, with a subsidy level of above $2 million.

Regarding the use of the fund's sports portion, he said the new money will allow the Government to consider supporting new projects.

When considering which new sports projects should be supported, and how existing ones should be strengthened, the Government plans to consult the Sports Commission.

On soccer development, Mr Young said a soccer task force with participation by government departments, the association, and experts will hold its first meeting soon. The task force members' appointment will be announced after the meeting.