27
Thursday, November 29, 1973
FINANCIAL SECRETARY SPEAKS ON FUTURE TRENDS
The Financial Secretary, the Hon. C.P. Haddon-Cave, said that
the world-wide increases in fuel prices should not result in any "erosion
of our external competitiveneas".
Speaking in the Legislative Council this afternoon, he said Hong
Kong had a very strong currency which "pute us in a very favourable position
by comparison with other countries when it comes to meeting pressures
towards higher import costs
whether fuel or anything else."
He said the exchange rate of the Hong Kong dollar had appreciated
by three-and-one-third per cent so far this year in "terms of a trade-weighted
average of major currencies".
"A strong currency also works to our advantage in the export field;
and if this leads to increased money incomes, it le easier for us to meet
such increases in consumer prices as do occur.
Mr. Haddon-Cave went on: "All things considered, then, I am very
hopeful not only that the rate of increase of consumer prices will be slower
but also that the rate of growth of our real incomes will be
next year,
higher."
As regards the effect of higher prices for diesel oil on the cost
of public transport, the Financial Secretary said he did not consider that
increased fuel costs would require any fare increases for some time to come «
Although oil costs represented about 12 per cent of total operating
costs in the case of buses, the companies were at present in a strong
financial position.
/Mr. Haddon-Cave
1