THURSDAY, APRIL 12, 1979
IN SUMMING UP, THE FINANCIAL SECRETARY SAID: +1 HAVE IN EFFECT, NOW RE-EXAMINED MY BUDGETARY STRATEGY IN THE LIGHT OF HONOURABLE MEMBERS' PROBING QUESTIONS AND THE LATEST INFORMATION ON THE COURSE OF THE ECONOMY.
+MY CONCLUSION IS THAT THE STRATEGY IS STILL WHAT OUR SITUATION REQUIRES IF THE ADJUSTMENT PROCESS IS TO BE ASSISTED AND THE MORE UNPLEASANT CONSEQUENCES OF THE ADJUSTMENT PROCESS BEING DELAYED ARE TO BE AVOIDED. IT IS TOO EARLY TO EXPECT TO SEE SOLID EVIDENCE IN SUPPORT OF THIS CONCLUSION.+
MEANWHILE, HE SAID WE MUST NOT LOSE OUR NERVE AND TRY TO FURTHER SPEED UP THE PROCESS IN ORDER TO PROVIDE THE EVIDENCE EARLIER FOR, AS MR. WONG LAM SAID +HASTY ADJUSTMENTS BY THE GOVERNMENT MIGHT PRODUCE MORE OBVIOUS RESULTS BUT MIGHT LEAD TO VERY UNDESIRABLE CONSEQUENCES.+
+RATHER,
I WOULD SUGGEST THAT, WHILST WE SHOULD NOT DISCOUNT OUR PRESENT DIFFICULTIES, WE SHOULD ALSO COUNT OUR BLESSINGS, FOR OUR SITUATION IS AT LEAST ONE OF INFLATION WITH, INDEED PARTLY DUE TO, OVER EMPLOYMENT, RATHER THAN INFLATION WITH A SLUGGISH GROWTH RATE AND RISING UNEMPLOYMENT, WHICH IS THE MORE COMMON EXPERIENCE EVERYWHERE.+
NEED FOR CURBS EMPHASISED TO REDUCE INFLATIONARY PRESSURES ON HK ECONOMY ******
THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, TODAY (THURSDAY) AGAIN EMPHASISED THE NEED TO CURB THE GROWTH RATE OF PUBLIC EXPENDITURE AND OF PRIVATE DOMESTIC DEMAND TO REDUCE INFLATIONARY PRESSURES ON THE ECONOMY OF HONG KONG.
HE WARNED THAT IF INFLATIONARY PRESSURES WERE LEFT UNCHECKED FAR MORE DAMAGE WOULD BE DONE TO OUR ECONOMY AND TO OUR EXPORTS OF GOODS.
MR. HADDON-CAVE SAID NOT ONLY MUST GOVERNMENT EXPENDITURE MAKE A CONTRIBUTION TO THE SLOWING DOWN OF THE GROWTH RATE OF DOMESTIC DEMAND BUT ALSO THERE WAS A SPECIAL NEED NOW TO REDUCE THE PRESSURES SO EVIDENT IN THE BUILDING AND CONSTRUCTION SECTOR.
+THE FACT IS THAT OURS IS NOW AN OVER-EMPLOYED ECONOMY WITH A WIDENING TRADE DEFICIT AND IF WE ARE TO AVOID PAINFUL ADJUSTMENTS LATER ON, WE MUST TAKE ACTION NOW TO RESTORE INTERNAL AND EXTERNAL EQUILIBRIUM, HE REMARKED.
COMMENTING ON VARIOUS PROPOSALS, SOME OF THEM +QUITE EXPENSIVE,+ PUT FORWARD BY UNOFFICIAL MEMBERS. MR. HADDON-CAVE SAID HE WOULD NOT WISH TO CLAIM THAT THE EXPENDITURE ESTIMATES PROVIDED FOR EXACTLY THE RIGHT GROWTH RATE OF EXPENDITURE, OR THAT THEY REPRESENTED A PERFECT RECONCILIATION OF COMPETING CLAIMS FOR RESOURCES WHICH COULD BE LEGITIMATELY MADE AVAILABLE,
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