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4.25 p.m.

Council resumed.

MRS ELLEN LI:-Your Excellency, for the first time as far as I can remember the Financial Secretary's proposals of tax concessions have not been receiving universal applause. For 2 weeks comments in the press as well as among the Chinese community were rather controversal regarding the abolition of the Public Dance Hall Tax. The loss of 2 million dollars in revenue forms only part of the objection to the suggestion. Many of course feel that this money could be diverted to better use than for the benefit of those few who can easily afford to indulge in such pastimes. The issue involved here is one of principle that Government should encourage all forms of entertain- ment or establishment of cultural nature considered to be desirable by freeing them of tax and/or subsidizing them, and, on the other hand, close down the undesirable ones or tax them out of existence. By freeing the dance halls of tax and not impossing a tax on bars and such is being construed by the public to mean that Government is condoning, if not encouraging, the establishment of such places, which are considered by our Chinese community to be undesirable. Some people are also not too happy about the abolition of Entertainment Tax as concessions benefiting only a certain portion of the "not-so-poor” community. But it can be argued that sports and life entertainment of cultural nature are desirable features in any society. The rest of the proposals for tax concessions are welcomed by the public. I personally welcome the information that a bill will be introduced shortly to provide for the deduction from chargeable income of certain charitable donations.

On education, I have only three points to comment. First, free primary education for all. We know that Government aims at pro- viding an aided place for every child who needs it by 1971. This in practice means 80% of the school-age population, leaving the other 20% who prefers private schools. Last year, the school fees were reduced by half in Government and aided schools. The Board of Education at their meeting last December recommended that a further. step be taken to reduce the other half, thus making it a free primary education. The estimated expenditure for this final step is not included in this year's Budget. It is understood that, although the tuition is free, some students in the aided private schools still have to pay a fee called "Tong Fai" to enable these schools to repay their loans from Government for their school buildings. But at least this second step would make the Government schools entirely free. By then, if our economy permits, I would suggest that Government forgets about these loans in order that we may have a truly free primary education.

19/2/vi

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