Thursday, March 14, 1974
3
Mr. Ann would not endorse any increase in rent in existing
public housing estates whatever the reason, in 1974-75, which is such a
"crucial year", with the exception of newly built estates to be entered
as from now on,
But he said that other building plans, except expansion of
secondary and technical education, could be deferred if the year turned
out not as promising as the Financial Secretary had predicted.
Referring to the plan of raising direct tax, Mr. Ann said this
should not be envisaged, as it would "only aggravate an untenable situation".
He went on: "Now the government by changing land policy has
attracted new and highly technological industries, The threat of higher
direct taxation will only frighten away new industries and make new
comers hesitate."
Mr. Ann was glad to see that the Financial Secretary had decided
to look into the propriety of the existing rates of depreciation allowance
on plant, machinery and equipment.
Pointing out that the last concession was made some six years
ago, he said that the question should be looked at more often and the allowances
be adjusted in line with the development of new industries and new technology.
He also criticised the Financial Secretary for threatening to
increase water charges in 1975-76.
Such an increase, he said, would not only affect the basic cost
of living but would impose an extra burden on industry especially after
the recent rise in cost of fuel and electricity. It would particularly
heavily penalise the textile finishing industry.
In general,