WEDNESDAY, MARCH 19, 1975
ADDITIONAL TAXATION ADVOCATED
TO FORESTALL DELAYS IN SOCIAL DEVELOPMENT PROGRAMMES # # # # # *
SOME UNOFFICIAL MEMBERS OF THE LEGISLATIVE COUNCIL TODAY ADVOCATED NEW WAYS OF RAISING ADDITIONAL MONEY - INCLUDING THROUGH HIGHER TAXATION SO AS TO AVOID DELAYING THE MAJOR SOCIAL AND ECONOMIC DEVELOPMENT PROGRAMMES DESIGNED TO IMPROVE THE LIVES OF THE PEOPLE OF HONG KONG.
OPENING THE DUDGET DEBATE, THE SENIOR UNOFFICIAL MEMBER,
DR. THE HON. CHUNG SZE-YUEN, EXPRESSED CONCERN THAT THE PROJECTED CUT BACKS IN EXPENDITURE WOULD JEOPARDISE THE DEVELOPMENT PROGRAMMES WHICH, HE STRESSED, ARE NECESSITIES, NOT LUXURIES.+
THE UNOFFICIAL MEMBERS ARE EQUALLY CONCERNED WITH THE LACK OF PROVISIONS FOR NEW PROPOSALS TO MEET RISING EXPECTATIONS OF THE PEOPLE OF HONG KONG AND FOR THE PROBABLE INCREASE OF DEFENCE COSTS AS FROM APRIL 1976.*
DR. CHUNG NOTED THAT THE FINANCIAL SECRETARY HAD REDUCED ESTIMATED EXPENDITURE IN THE NEW FINANCIAL YEAR DY AN AVERAGE OF 10 PER CENT DUT HAD NOT REVEALED WHICH ITEMS HAD BEEN AFFECTED NOR HAD HE INDICATED THE IMPLICATIONS OF THE CUT BACKS ON THE MAJOR SOCIAL SERVICE PROSGRAMMES.
THE GOVERNMENT WAS COMMITTED TO THESE PROGRAMMES, HE STRESSED, AND ANY DELAY MIGHT GIVE THE IMPRESSION THAT THE GOVERNMENT HAS NOT TAKING THEM SERIOUSLY.
2.
A GOOD GOVERNMENT, HE ADDED COULD NOT IGNORE ITS COMMITMENTS AND STOP-GO' AS IT PLEASED, AND HE WARNED AGAINST OVER-REACTING TOO SENSITIVELY TO THE SHORT-TERM UPS AND DOWNS IN ECONOMIC PROGRESS. THIS WOULD LEAD TO INCONSISTENCY WITH DRASTIC REVERSAL OF EARLIER DECISIONS, SUCH AS IN THE CASE OF THE ADOLITION AND RE-INTRODUCTION OF ENTERTAINMENT TAX. FREQUENT RAPID CHANGES OF POLICY COULD IMPAIR THE GOVERNMENT'S CREDIBILITY, HE ADDED.
DR. CHUNG WONDERED WHETHER THE GOVERNMENT WOULD CONTINUE TO REDUCE EXPENDITURE IN THE THREE FINANCIAL YEARS FOLLOWING 1975/76 OR LOOK AT OTHER MEANS OF INCREASING THE REVENUE.
THIS WAS IMPORTANT, HE SAID. BECAUSE IT WAS ALWAYS TOO LATE TO MAKE ANY MAJOR CHANGE IN THE BUDGET ONCE IT WAS PRESENTED, DUT THERE HAS STILL TIME TO MAKE SOME IMPORTANT ADJUSTMENTS FOR THE FORECAST PERICO 1976/77 TO 1970/79. THE REDUCTIONS OF $1,700 MILLION, $1,300 MILLION AND SCOD MILLION FOR THESE THREE YEARS, HE SAID, WOULD IN FACT DE MUCH LARGER IF INFLATION WAS TAKEN INTO ACCOUNT.
/DR. CHUNG