KENTIESDAY, FEBRUARY 5, 1975
+ANOTHER ITEM OF EQUAL IMPORTANCE IN THIS PERIOD IS A SYMPATHETIC AND UNDERSTANDING RELATIONSHIP BETWEEN MANAGEMENT AND LABOUR,+ HE SAID. THIS IS CERTAINLY NO TIME FOR HASTY OR ROUGH ACTIONS BY EITHER SIDE.
THE GOVERNOR SAID THAT UNTIL THE WORLD HAD RE-ADJUSTED TO THE NEW SITUATION WE WILL NOT BE ABLE TO BREATHE FREELY AGAIN. IT IS AN UNEASY SITUATION BECAUSE WE CANNOT KNOW EXACTLY HOW LONG THE PROCESS WILL TAKE, THOUGH THERE IS A REASONABLE ASSUMPTION THAT THE LEVEL OF WORLD ECONOMIC ACTIVITY WILL GRADUALLY RISE IN 1976.+
SIR MURRAY ALSO SPOKE ABOUT THE GOVERNMENT'S LONG TERM AIMS AND COMMENTED GENERALLY ON SOME OF THE CONSIDERATIONS CONFRONTING THE GOVERNMENT IN PREPARING THE BUDGET FOR THE COMING YEAR.
THE GOVERNOR SYMPATHISED WITH THE FINANCIAL SECRETARY, BUT SAID THAT WHEN THE LATTER ANNOUNCES THE BUDGET HE WOULD BE DOING SO WITH HIS FULL SUPPORT.
THE GOVERNMENT WAS VERY CONSCIOUS OF THE FACT THAT MANY PEOPLE FELT DOWN HEARTED, AND THE DECISIONS THAT HAD TO BE TAKEN WERE DIFFICULT, HE WENT ON. +WE ALSO REALISE THE DANGER OF FALTERING IN OUR PROGRAMMES AND. THE AGGRAVATION THIS COULD BRING TO OUR PRESENT SITUATION.+
SIR MURRAY SAIDɛ +OBVIOUSLY WE MUST AS FAR AS POSSIBLE MAINTAIN THE MOMENTUM OF GOVERNMENT PROGRAMMES, NOT ONLY BECAUSE THEY ARE URGENTLY NEEDED, BUT BECAUSE OF THE EMPLOYMENT THEY PROVIDE IN THIS TIME OF RISING UNEMPLOYMENT AND DROPPING FAMILY BUDGETS.
+TO DO THIS IN PRESENT CIRCUMSTANCES MEANS INCREASING REVENUE BY RAISING TAXES AND CHARGES.+
THE GOVERNOR NOTED, HOWEVER, THAT THERE WERE SEVERE LIMITATIONS AND THAT MANY AT THE LOWER END OF THE INCOME BRACKET WERE ALREADY FEELING THE PINCH.
FOR EMPLOYMENT TO BE MAINTAINED, SO MUST PROFITABILITY, AND HONG KONG MUST BE KEPT COMPARATIVELY MORE ATTRACTIVE TO INVESTORS AND EMPLOYERS THAN HONG KONG'S COMPETITORS.
ANOTHER CONSIDERATION, HE SAID, WAS FOR HONG KONG TO BORROW, BUT OBVIOUSLY THERE WERE LIMITS ON HOW MUCH BECAUSE LOANS HAD TO BE SERVICED AND REPAID OUT OF FUTURE REVENUES,
ON THE LONG TERM TARGETS, THE GOVERNOR SAID THE FIRST PRIORITY WAS THE GROWTH OF THE ECONOMY. AND THUS THE LIVELIHOOD OF THE POPULATION. THIS HAS TO BE MAINTAINED AND ALL ELSE DEPENDS ON IT.+
MUCH HAD TO BE DONE AND QUICKLY, HE SAID, NOT ONLY BECAUSE IT WAS NEEDED BUT ALSO BECAUSE THE WORLD COULD PROVE DANGEROUSLY UNSYMPATHETIC TO HONG KONG IF IT WAS UNABLE OR UNWILLING TO SOLVE ITS SOCIAL PROBLEMS.
/IN THIS