Sir,
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DRAFT SPEECH BY DR HON HO KAM-FAI, OBE,
LEGISLATIVE COUNCIL 27.3.85
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Budget Debate 1985
JP
Hong Kong last enjoyed a budget surplus in 1981/82.
It is We can again expect a budget deficit in the coming year. therefore appropriate that the Financial Secretary should adopt a cautious, pragmatic and somewhat austere approach to this year's budget. Although overall increase in public sector expenditure has been restrained, I am pleased to see that provisions for education, social welfare, public housing and medical and health services have continued to grow in real terms. This indicates that the Government is firmly committed to improving the quality of life of the people of Hong Kong.
On the
In order to bring down the expected deficit, the Financial Secretary has proposed increases in a wide range of taxes, duties, fees and charges. I believe in living within one's means and following from that a balanced budget. whole, I support the budget proposals. However, I have reservations on the 10% increase in annual licence fees and driving licence fees. Let me state my reasons.
the
Firstly, the hefty increases in annual licence fees and first registration tax in May 1982 were meant as fiscal measures to curb car ownership. They were not meant as
As a result of the increases, revenue-producing measures. number of licensed private cars has in fact dropped from
Road 217,945 in May 1982 to 180,084 in February 1985. congestion has consequently been relieved to some extent. There is now no justification to use fiscal measures to bring car ownership further down.
A
Secondly, a two-year pilot scheme on a limited Electronic Road Pricing system is now in progress. full-scale Electronic Road Pricing system might be implemented if the pilot scheme is found to be successful.
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Senior