Thursday, March 14, 1974
In view of the vast sums of rents amounting to $72.8 million
which the government is expected to defray in the financial year 1974/75
for quartering and office accommodation, he suggested that it would be
a better investment in the long run for it to build and own properties,
especially since only the government would have access to 'free' land.
Turning to the operations of finance companies, he observed
that while he thought their presence could contribute in enhancing Hong
Kong as a major financial centre, he firmly believed that additional
legislation besides the size of minimum deposits as envisaged in the
Protection of Depositors Bill was necessary.
"I would envisage the deposit-taking finance companies playing
a role complementary to other financial institutions and forming an
integral part of our financial structure," Mr. Li said.
He felt that a full range of statutory regulations was not too
complicated and difficult to enforce as it has worked well in other
neighbouring countries,
However, in view of the time involved, Mr. Li advocated that
simple regulations be introduced through the Protection of Depositors
Bill to control those finance companies which take deposits.
The now regulations should include compulsory registration, payment
of an annual licence fee, a minimum paid-up capital, a minimum liquidity
ratio, a minimum size of deposit which finance companies can accept and the filing of monthly returns.
He felt that these requirements were not troublesome, and neither
"should they be too much work for the government to police".
/On the ............