ON
WEDNESDAY, MARCH 26, 1980
+THERE IS NO EXCUSE FOR THE SERVICES OF THE TWO PUBLIC
BUS COMPANIES TO DETERIORATE TO THE EXTENT THAT THEY HAVE-
AND I CANNOT ACCEPT THE OFT-QUOTED REASON THAT THE BUSES ARE PREVENTED FROM OFFERING AN EFFICIENT SERVICE BECAUSE THE ROADS ARE CLOGGED UP BY PRIVATE CARS AND TAXIS.
→PRIVATE CARS AND TAXIS MAY BE THE CAUSE OF ROAD CONGESTION
AT TIMES, BUT PEOPLE HAVE TO MOVE ABOUT FOR MANY REASONS, INCLUDING GETTING TO WORK- AND MEANWHILE, BUSES LIE IDLE BECAUSE OF A SHORTAGE OF DRIVERS AND WHOLLY INADEQUATE MAINTENANCE ARRANGEMENTS.+
NOTING THAT THE PUBLIC ARE TOLD TO PAY MORE IF THE BUS COMPANIES ARE TO MEET THEIR OBLIGATIONS UNDER THEIR FRANCHISES MISS DUNN ASKED WHAT ASSURANCE IS THERE THAT THE BUS COMPANIES WILL IMPROVE THEIR SERVICES AFTER THE RECENT FARE INCREASES?+
ON THE BUDGET ITSELF, MISS DUNN CHALLENGED THE STATEMENT THAT THE EMPHASIS OF BUDGETARY POLICY IN 1980-81 WAS TO HOLD THE PUBLIC SECTOR'S SHARE OF RESOURCES AT ITS 1979-80 LEVEL.
+BUT THIS IS PRECISELY WHAT THE 1980-81 BUDGET DOES NOT DO, FOR THE RELATIVE SHARE OF THE PUBLIC SECTOR WILL INCREASE FURTHER: FROM NEARLY 19 PER CENT IN 1979-80 TO NEARLY 20 PER CENT IN 1980-81 AND THE PUBLIC SECTOR'S SHARE OF THE OUTPUT OF THE BUILDING AND CONSTRUCTION INDUSTRY WILL INCREASE AGAIN TO 49 PER CENT (ITS 1978 SHARE).+
MISS DUNN FOUND IT DIFFICULT TO BELIEVE THAT THE RATE OF INCREASE IN CONSUMER PRICES WOULD ACTUALLY SLOW DOWN FROM 11.6 PER CENT IN 1979 TO 10 PER CENT IN 1980 AND THAT THE RATE OF INCREASE IN PRICES GENERALLY FROM 13.3 PER CENT TO 11 PER CENT IN THE SAME PERIOD.
SHE SAID SHE COULD NOT UNDERSTAND WHY THE FINANCIAL SECRETARY WAS ALLOWING THE GROWTH RATE OF EXPENDITURE ON BOTH CONSOLIDATED ACCOUNT AND GENERAL REVENUE ACCOUNT TO ACCELERATE IN 1980-81 - BOTH OF THESE RATES OF GROWTH ARE WELL IN EXCESS OF HIS FORECAST GROWTH RATE OF THE ECONOMY.
+IN SHORT, IT SEEMS TO ME THAT THE FINANCIAL SECRETARY'S BUDGETARY STRATEGY FOR 1980-81 IS PUTTING AT RISK HIS ACHIEVEMENTS IN 1979-80, INASMUCH AS THE EFFECT MUST SURELY BE INFLATIONARY, PARTICULARLY IN THE BUILDING AND CONSTRUCTION INDUSTRY, WHICH IS ALREADY OPERATING TO THE LIMIT OF ITS CAPACITY AS EVIDENCED BY THE CONTINUING RAPID INCREASES IN COSTS.
+ IN OTHER WORDS, MY CONCLUSION IS THAT THE IMPLICATIONS OF THIS BUDGET ARE NOT, AS THE FINANCIAL SECRETARY CLAIMED IN HIS SPEECH, 'JUST ABOUT TOLERABLE' FOR EITHER THE FUTURE GROWTH AND BALANCE OF OUR ECONOMY OR FOR OUR PUBLIC FINANCES, SHE ADDED.
SHE ASKED THE GOVERNMENT TO MONITOR THE COURSE OF THE ECONOMY CLOSELY OVER THE NEXT FEW MONTHS AND BE READY TO TAKE REMEDIAL ACTION, IF NECESSARY.
THE MANUFACTURING INDUSTRIES, FACED WITH THE PROSPECT OF GROWING PROTECTIONISM, WILL ALSO NEED TO BE MORE FLEXIBLE AND COST EFFICIENT THAN EVER BEFORE, SHE WARNED.