The government says it is still looking into a proposed solution to the funding crisis at the West Kowloon arts hub, after a warning that time is running out to keep the lights on.

Henry Tang, who chairs the authority which manages the cultural quarter, told local newspapers on Friday that cash resources will run out in the middle of next year, but a decision on a funding proposal will have to be made by this June to enable contracts to be signed for new exhibitions and projects.

Tang said he is still waiting for a government decision on a suggestion the authority made last summer that it could shore up its finances by selling part of the hub's 40 hectares of land.

In response to Tang's comments, Secretary for Culture, Sports, and Tourism Kevin Yeung said the government is still considering the proposal.

"We're still examining this proposal. We hope to communicate the government's perspective to the West Kowloon Cultural District Authority in a timely manner," Yeung said.

"I appreciate the authority's efforts in exploring various alternative solutions. In the event that the government holds differing views on these proposals, the authority has contingency plans in place and is prepared to develop additional alternatives. I think it is a very responsible approach."

The cultural district, which boasts the M+ Museum, Xiqu Centre, Hong Kong Palace Museum and various other venues, received a one-off grant of HK$21.6 billion from the public coffers in 2008.

Tang said last year that right from the conception of the arts hub it was obvious that the facilities there couldn't finance themselves and the plan was always to subsidise them via hotel projects, residential developments and commercial space.