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part. The administration will work further on a number
of those ideas and return to the Board for their further
advice at subsequent meetings.
General approach
3.
The Administration takes the view that, because
of the external orientation of our economy and the need
to protect its ability to adjust efficiently, the performance
of the economy would be damaged if the Government attempted
to frustrate market forces or to plan the allocation of
resources. While this does not rule out intervention, it
clearly means that intervention should be undertaken only
when it is in the long term interests of the economy.
4.
In practice this general approach means that,
apart from ensuring the provision of the physical and legal
framework within which private enterprise can operate success-
fully, the Government's main concern has been to avoid
-
frustrating individual enterprise and to seek to maintain
incentives. To this end the size of the public sector is
constrained, the tax burden is kept low and the tax regime
made supportive of investment.
Direct subsidies to business
are avoided and market forces are allowed to be the determinants
in enterpreneurial decisions.
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