ON
WEDNESDAY, MARCH 29, 1978
SUPPORT FOR FINANCIAL SECRETARY'S BUDGET PRESENTATION
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THE HON. Q.W. LEE SUPPORTED THE COMPREHENSIVE WAY IN WHICH THE FINANCIAL SECRETARY PRESENTED HIS ANNUAL BUDGET WHICH, HE SAID, REFLECTS SOUND MANAGEMENT AND GENERATES INTERNAL AND EXTERNAL CONFIDENCE VITAL TO OUR CONTINUED DEVELOPMENT AND PROSPERITY.
SPEAKING IN THE RESUMED DEBATE AT THE LEGISLATIVE COUNCIL TODAY. MR. LEE EXPLAINED THAT OUR POSITION AS AN INTERNATIONAL TRADER HAS CHANGED WITH OUR OWN UNCEASING GROWTH AND UNEVEN POLITICAL AND ECONOMIC DEVELOPMENTS ELSEWHERE. WE ARE NOW MUCH MORE VULNERABLE TO INTERNATIONAL DEVELOPMENTS AND OUR FISCAL, MONETARY AND ECONOMIC POLICIES MUST BE ABLE TO MAINTAIN EXTERNAL COMPETITIVENESS AND CONFIDENCE.
AS OUR POLICIES ARE OF INTEREST TO PEOPLE INVOLVED IN BUSINESS WITH US, IT IS IMPORTANT THAT WHAT WE DO AND PLAN TO DO ARE CONSISTENT WITH SOUND PRINCIPLES AND FULLY EXPLAINED, EVEN THOUGH PEOPLE MAY NOT NECESSARILY HAVE TO AGREE WITH ALL OF THEM, HE SAID.
HE POINTED OUT THAT THE SIGNIFICANCE OF THIS YEAR'S BUDGET, AS IN THE PAST, LIES IN OUR ABILITY TO FINANCE AN EVER-INCREASING PACKAGE OF PROGRAMMES WITHOUT STRAINING THE ECONOMY OR THE GOVERNMENT'S CREDIT WORTHINESS, AND IN THE EXISTENCE OF A RATIONAL BODY OF WELL-FOUNDED POLICIES.
MR. LEE WAS CONCERNED ABOUT THE INADEQUATE PROVISION OF LAND FOR OUR DEVELOPMENT.
HE APPRECIATED WHAT THE GOVERNMENT HAS DONE SO FAR WITH THE APPOINTMENT OF THE SPECIAL COMMITTEE ON LAND PRODUCTION. HE NOTED HOWEVER THAT AGAINST THE BACKGROUND OF THE COMMITTEE'S REPORT. THE AMOUNT OF LAND AVAILABLE FOR SALE NEXT YEAR +IS NOT ENTIRELY SATISFACTORY+ WHEN THERE WILL ONLY BE 88 ACRES, COMPARED WITH 136 ACRES SOLD IN 1976-77 AND 115 ACRES IN 1977-78.
ONLY 20 OF THE 88 ACRES ARE TO BE INDUSTRIAL LAND. THIS DOES NOT COMPARE FAVOURABLY WITH PREVIOUS RECORDS, WHEN
INDUSTRIAL DIVERSIFICATION IS SO MUCH IN OUR MIND, HE SAID.
EVEN IF THIS TREND CAN BE REVERSED IN THE LONG TERM, HE CONTINUED, THERE IS STILL A PROELEM OF LAND PRICES RISING AT SUCH A RATE THAT THEY TAKE UP A DISPROPORTIONATE PART OF PRODUCTIVITY COST AND THUS HINDEF DEVELOPMENT OF OUR ECONOMY.
HE POINTED OUT THAT THE RATIO OF LAND COST TO BUILDING CONSTRUCTION COST WAS GENERALLY ABOUT 1 TO 1 FOR RESIDENTIAL ACCOMMODATION AND 0.5 TO 1 FOR FLATTER FACTORIES A FEW YEARS AGO. IT HAS NOW REACHED THE AVERAGE LEVEL OF BETWEEN 2 AND 3 TO 1 FOR RESIDENTIAL ACCOMMODATION, ABOUT 1.5 TO 1 FOR FLATTED FACTORIES AND BETWEEK 2) AND A TO 1 FOR COMMERCIAL ACCOMMODATION, NOT COUNTING THOSE IN CENTRAL DISTRICT THE RATIO OF WHICH IS EVEN MUCH HIGHER.
HE PROPOSED