WEDNESDAY, MARCH 26, 1980
+
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+ALTHOUGH THE FINANCIAL SECRETARY HAS REASSURED US, ALBEIT GUARDEDLY, THAT THIS CAN BE ACCEPTED WITHOUT SERIOUSLY RISKING CROWDING OUT THE PRIVATE SECTOR AND/OR DIVERTING LABOUR AWAY FROM MANUFACTURING EMPLOYMENT, I AM NOT ALTOGETHER HAPPY.
+1 FIND IT HARD TO ACCEPT THAT SUCH A LARGE VOLUME OF GOVERNMENT CAPITAL WORKS WILL NOT HAVE A SIGNIFICANT EFFECT ON PRICES OF THE BUILDING AND CONSTRUCTION SECTOR AND ULTIMATELY ON GENERAL PRICES IN THE REST OF THE ECONOMY.
MR CHEN THEN SUGGESTED TO IMPROVE THE RECURRENT REVENUE STRUCTURE BY INCREASING THE YIELD OF INDIRECT TAXES.
HE SAID THERE WERE MANY AVENUES TO ACHIEVE THIS, ONE OF WHICH IS DUTIABLE COMMODITIES SUCH AS LIQUOR, TOBACCO AND PERFUME.
+THERE IS NO EVIDENCE TO SUGGEST, AS FAR AS LIQUOR IS CONCERNED, THAT A POINT OF DIMINISHING RETURNS HAS BEEN REACHED AND THIS IS CLEARLY REFLECTED BY THE RAPID INCREASE IN YEARLY CONSUMPTIONS WHICH CONTINUES TO RISE FROM $296 MILLION IN 1975 TO A HEIGHT OF $672 MILLION IN 1979, + MR CHEN SAID.
HE NOTED THAT IT WOULD BE WISE FOR CONTRIBUTION FROM INDIRECT TAXATION TO BE KEPT AT A MORE REASONABLE LEVEL IN RELATION TO DIRECT TAXATION WHICH IS INCOME SENSITIVE.
FURTHERMORE AN INCREASE IN INDIRECT TAXATION MAY HELP DISCOURAGE PRIVATE SECTOR CONSUMPTION WHICH IS PERHAPS WHAT HONG KONG NEEDS TO KEEP INFLATION DOWN TO A MORE ACCEPTABLE LEVEL, HE ADDED.
HELP REQUIRED FOR THREE GROUPS OF PEOPLE
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THE HON ROGER LOBO TODAY SPOKE OUT FOR THREE CLASSES OF PEOPLE THE ELDERLY IN HOSPITALS, THE YOUNG WORKFORCE AND POTENTIAL HOME BUYERS AND ASKED THE GOVERNMENT TO PROVIDE THEM WITH OPPORTUNITIES TO HELP THEMSELVES.
+THESE ARE THE PEOPLE WHO MERIT ATTENTION, HE SAID.
HE POINTED OUT THAT PUBLIC POLICY MUST BE MONITORED CONSTANTLY TO ENSURE THAT IT IS MEETING THE EXPECTATIONS OF EVERY MEMBER OF THE COMMUNITY, OR IS AT LEAST PROCEEDING AS FAST AS POSSIBLE IN THE RIGHT DIRECTION.
+WE ARE REALISTIC AND PATIENT SO WE DO NOT EXPECT TO SOLVE ALL OUR PROBLEMS AT ONCE, BUT WE NEED TO KNOW THAT OUR TARGETS FOR THE BASIC SOCIAL SERVICES OF HEALTH, HOUSING AND EDUCATION ARE ATTAINABLE AND APPROPRIATE, HE SAID.
AMONG HIS THREE CONCERNS, MR LOBO SAID HOME OWNERSHIP +1S BY FAR THE MOST IMPORTANT OF THE AREAS IN WHICH PUBLIC POLICY MUST MEET THE REASONABLE EXPECTATIONS OF THE COMMUNITY+,
+WE MUST NOT SLIP ANY FURTHER INTO A SITUATION WHERE THOSE WHO THOUGHT THEY HAD EARNED THE RIGHT TO THE SECURITY OF THEIR OWN HOMES NOW SEE THAT MODEST EXPECTATION RECEDING DAY BY DAY, HE WARNED.