WEDNESDAY, MARCH 19, 1975
MR. LEE CONTINUED THAT HE COULD CERTAINLY SEE SOME WEAKNESSES IN HAVING TOO HIGH INDIRECT TAX, FEES AND CHARGES IN THAT THEY WOULD RESULT IN ADDED COSTS TO THE PRODUCTION AND, TO A SMALL DEGREE, THE COST OF LIVING.
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+IF THEY ARE TO GO TOO MUCH FURTHER, OUR COMMERCIAL AND INDUSTRIAL COMPETITIVENESS WILL DE AFFECTED. ADDITIONALLY, THEY ARE ALWAYS OPEN TO THE ARGUMENT OF EQUITY,
+THIS IS ESPECIALLY SO IN RESPECT OF THOSE ITEMS WHICH ARE LEVIED FOR NO OTHER REASON THAN THEY JUST HAPPEN TO DE THE CONVENIENT MEDIUM THROUGH WHICH INDIRECT TAX, FEES OR CHARGES CAN DE EFFECTIVELY COLLECTED.+
PERSONALLY, MR. LEE THOUGHT THE TAX STRUCTURE SHOULD BE KEPT AS SIMPLE AS POSSIBLE AND SHOULD NOT HAVE TOO MANY ITEMS OR TOO HIGH AN INCREASE IN INDIRECT TAXATION, FEES AND CHARGES. HOWEVER, I AM VERY MUCH IN FAVOUR OF ADDITIONS" AND INCREASES IN THOSE ITEMS ON A COST OR FRANCHISED BASIS.>
ON THE QUESTION OF FINANCING THE DEFICIT DY CUTS IN EXPENDITURE AND BORROWING, HE SAID THIS COULD ONLY BE A TEMPORARY MEASURE AND OBVIOUSLY COULD NOT DE APPLIED INDEFINITELY.
+THERE MUST BE A LIMIT -- THE RIGHTFUL HOPES AND ASPIRATION OF THE COMMUNITY MUST DE RECOGNISED AND MET.*
HE FELT THAT SUBSTANTIAL CUTS IN GOVERNMENT EXPENDITURE WOULD FURTHER DURDEN THE EMPLOYMENT SITUATION WHICH WAS ALREADY AFFECTED DY THE SLACKENING ECONOMY, AND IT IS A MATTER WHICH DEMANDS URGENT CONSIDERATION.*
THE GOVERNMENT, BEING THE BIGGEST EMPLOYER IN HONG KONG, INCREASED THE STRENGTH OF THE GIVIL SERVICE ESTABLISHMENT BY 0,500 PEOPLE IN 1974.
IF THE ESTABLISHMENT WAS TO DE LIMITED TO ONLY 1,600 IN 1975-76, MANY MORE PEOPLE WOULD HAVE TO TURN TO THE PRIVATE SECTOR FOR JOBS. AT THE SAME TIME, THERE WOULD BE ABOUT 3,000 POST SECONDARY GRADUATES PLUS AROUND 75,000 SECONDARY SCHOOL LEAVERS SEEKING EMPLOYMENT.
+DESIDES EMPLOYMENT, OTHER AREAS LIKE HOUSING, EDUCATION, MEDICINE, TRANSPORT AND SOCIAL WELFARE WILL ALSO INEVITABLY DE AFFECTED IN ONE WAY OR ANOTHER,* HE SAID.
ON BORROWING, MR. LEE SAID ACCORDING TO THE FINANCIAL SECRETARY'S ILLUSTRATION, HE FIGURED THAT THE LOANS OUTSTANDING AT ANY TIME SHOULD BE WITHIN THE RANGE OF $1,000 MILLION AND $1,500 MILLION.
BUT THIS WOULD