G.F. 316

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developer indicates a firm interest (42).

(42). I I expect, after sharing, net revenue of $415 million from auction and tender, $780 million from private

from private treaty grants and $80 million from modifications and regrants. Of the total net estimated revenue from land transactions in 1985-86 of $1.7 billion, $425 million is in respect of instalment payments on previous sales.

Revenue Measures

79.

I turn now to new revenue measures. The intention is to finance the ostensible deficit of $2.2 billion by drawing $1

billion from free fiscal reserves and by finding the balance from increased revenue. I need now to explain the rationale underlying the various measures which I shall propose in order to raise the necessary net $1.2 billion. No taxpayer likes additional tax burdens, unless they are placed on others while

he derives the benefit. I believe, however, that there is

general support for a steady return to balanced budgets. We are therefore discussing means not ends.

80.

Firstly, it is important that the community as a whole understands that equity and efficiency are guiding principles. Budgets are not just a string of figures.

81.

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Secondly, manufacturers, exporters, traders, bankers, the work force indeed all who create wealth for Hong Kong must not be discouraged.

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(42) Land sales being defined so as to include land disposed of by tender in exchange for Letters A/B, the lots themselves being either drawn from newly formed and serviced land or from areas released from other uses (e.g. open storage let on short-term tenancies). The programme envisages

Industrial

Non-industrial

Total

1984-85 1985-86

1984-85 1985-86 1984-85 1985-86

(Hectares)

(Hectares)

(Hectares)

Urban

areas

3.0

3.2

11.9

12.7

14.9

15.9

New

Territories

14.6

15.1

31.8

48.9

46.4

64.0

17.6

18.3

43.7

61.6

61.3

79.9

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