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THE VOTES IT NEEDS OR TO REACH A SENSIBLE ACCOMMODATION WITH LEGCO.
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NEVERTHELESS, THE PRACTICAL IMPLEMENTATION OF POLICY IS MADE CONSIDERABLY HARDER BY THE FACT THAT HKG HAS NO SECURE BASE OF SUPPORT IN LEGCO. THE COOPERATIVE RESOURCE CENTRE (CRC), WHICH INCLUDES FOUR EXCO MEMBERS AND CONSISTS OF 12 APPOINTED AND EIGHT INDIRECTLY-ELECTED MEMBERS, HAS TENDED TO BE THE ADMINISTRATION'S BASIC SOURCE OF LEGCO VOTES. HOWEVER, IT HAS WITHHELD SUPPORT ON KEY ISSUES, INCLUDING SOME ASPECTS OF THE BUDGET. SEVERAL CRC REPRESENTATIVES HOPE TO LAY THE FOUNDATIONS OF A POST 1995 POLITICAL CAREER (WHEN ALL LEGCO MEMBERS WILL BE ELECTED). THEY ARE RELUCTANT TO BE TOO CLOSELY IDENTIFIED AS SUPPORTERS OF HKG, UNLESS THEY CAN DEMONSTRATE THAT HKG HAS ADOPTED THEIR VIEWS. THE UNITED DEMOCRATS OF HONG KONG (HDHK), WHO INCLUDE 12 OUT OF THE 18 DIRECTLY-ELECTED MEMBERS PLUS TWO INDIRECTLY-ELECTED MEMBERS, HAS ASSUMED THE ROLE OF AN OPPOSITION PARTY, COMMITTED TO CRITICISING AND TESTING HKG'S POLICIES.
15. HKG FACED A MAJOR TEST OF ITS ABILITY TO MANAGE LEGCO OVER THE BUDGET. ITS SPENDING PLANS WERE HEAVILY CRITICISED BY THE UDHK, WHILE BOTH THE UDHK AND THE CRC DEMANDED TAX CONCESSIONS. AFTER MONTHS OF MEDIA SPECULATION THAT THE BUDGET WOULD PROPOSE CUTS IN SOCIAL SERVICES TO FUND THE NEW AIRPORT, IT BECAME CLEAR THAT PADS WOULD NOT DAMAGE WELFARE AND OTHER KEY PROGRAMMES. THE PUBLIC GENERALLY ACCEPTED, TOO, THAT THE ADMINISTRATION'S PLANS REPRESENTED THE RIGHT BALANCE BETWEEN THE NEED FOR ENHANCED
SERVICES AND THE IMPORTANCE OF FINANCIAL RECTITUDE. LEGCO
CRITICISM OF THE BUDGET ON THIS FRONT WON LITTLE PUBLIC SUPPORT, AND THE EXPENDITURE PROPOSALS WERE APPROVED RELATIVELY COMFORTABLY.
16. THE REVENUE MEASURES AROUSED FIERCER OPPOSITION. A ONE- PERCENTAGE POINT RISE IN PROFITS TAX WAS WIDELY ACCEPTED BY THE BUSINESS COMMUNITY AS REASONABLE. THE PROPOSED SALARIES TAX CONCESSIONS (ROUGHLY IN LINE WITH THE RATE OF INFLATION AND BENEFITING 91 PER CENT OF ALL SALARIES TAXPAYERS) WERE DENOUNCED BY BOTH THE CRC AND THE UDHK AS INADEQUATE. THE COMMUNITY RESPONSE MORE MODERATELY, AND LEGCO APPROVED THE CONCESSIONS THIS MONTH. A HALF-PERCENTAGE POINT INCREASE IN PROPERTY RATES PROVOKED THE MOST CONCERTED OPPOSITION. THE ISSUE DID NOT COME TO
A LEGCO VOTE AS A HIGHER-THAN-EXPECTED SURPLUS FOR LAST YEAR
ALLOWED THIS PROPOSAL TO BE WITHDRAWN.
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