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WEDNESDAY, FEBRUARY 27, 1980
ON OUR MAJOR MARKETS IN EUROPE, HE SAID REPORTED PROSPECTS OF THE ECONOMIES IN THESE MARKETS IN 1980 ALSO SUGGESTED A SLOWING DOWN IN THE GROWTH RATES OF REAL INCOMES AND CONSUMPTION EXPENDITURE.
AS A WHOLE, HE EXPECTED THAT THERE WOULD BE A SMALL REPLENISHMENT OF STOCKS IN 1980 FOLLOWING THE DEPLETION IN 1979.
SIR PHILIP PREDICTED THAT THE GROWTH RATE OF THE NET BALANCE OF INVISIBLE TRADE IN 1980 TO BE ABOUT NINE PER CENT COMPARED WITH THE ACHIEVED GROWTH RATE OF 15 PER CENT IN 1979.
ONLY ONE FEE INCREASE PROPOSAL IN THE BUDGET
*****
THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE IN HIS BUDGET PRESENTED BEFORE THE LEGISLATIVE COUNCIL TODAY MADE ONLY ONE FEE INCREASE PROPOSAL AND THAT IS TO RAISE THE CHARGE FOR SUPPLYING CERTIFIED COPIES OR EXTRACTS OF BUSINESS REGISTRATION DOCUMENTS.
THE CHARGE FOR THIS SERVICE WILL BE INCREASED FROM $15 TO $30 EFFECTIVE FROM TOMORROW (THURSDAY).
SIR PHILIP SAID HE DECIDED NOT TO PROPOSE OTHER FEE INCREASES FOR THE TIME BEING FOR TWO REASONS1
* GENERALLY, BECAUSE OUR FINANCIAL POSITION DOES NOT
INDICATE AN IMMEDIATE NEED TO BOOST RECURRENT REVENUE, FOR THE GUIDELINE WHICH REQUIRES US TO ENSURE THAT RECURRENT EXPENDITURE ABSORBS NO MORE THAN 80 PER CENT OF RECURRENT REVENUE IS STILL BEING MET, AND
* BECAUSE HE THOUGHT THAT, IN MOST CASES, THE ELASTICITIES
ARE SUCH THAT INCREASE IN RATES OF CHARGE COULD BE MILDLY INFLATIONARY AND HE WISHED TO AVOID THIS AT THIS TIME.
HOWEVER, HE ADDED THAT THERE IS NO NECESSARY REASON WHY FISCAL PROPOSALS HAVE TO BE ANNOUNCED IN THE ANNUAL BUDGET SPEECH- AND, +OF COURSE, COST-RELATED FEES AND CHARGES AND CHARGES RAISED FOR THE SERVICES OF OUR PUBLIC UTILITY-TYPE UNDERTAKINGS CANNOT BE ALLOWED TO LAG BEHIND FULL COSTS (APPROPRIATELY DEFINED) FOR VERY LONG.+
IN FACT, HE SAID, WE HAVE JUST ANNOUNCED A REVISION OF PASSENGER CHARGES FOR THE KOWLOON-CANTON RAILWAY EFFECTIVE FROM APRIL 1 NEXT WHICH, INCIDENTALLY, WILL NOWHERE NEAR YIELD A SATISFACTORY RATE OF RETURN ON THAT ENTERPRISE EVEN IN RELATION TO PRESENT CAPITAL EMPLOYED, LET ALONE ONCE WE HAVE FINISHED INVESTING NEARLY $2 000 MILLION IN DOUBLE TRACKING, ELECTRIFICATION, NEW ROLLING STOCK AND MODERNISED FACILITIES OVER THE FIVE YEARS ENDING 1983-84.
J
+1 SHOULD MENTION ALSO THAT REVISED SAND PRICES ARE LONG OVERDUE- AND VARIOUS AIRPORT CHARGES ARE CURRENTLY UNDER REVIEW AND MAY WELL BE INTRODUCED LATER ON THIS YEAR, SIR PHILIP ADDED.
/ON THE