and lower-middle

7

ownership for lower/incone groups the Government can make the most practical

reducing

further contribution both to housing shortage and to the aspirations of the

people concerned. I feel sure that if the Government were to call for the

assistance of the private sector in any expansion scheme it would be forthcoming.

Perhaps I should say a word about bus fares. I believe that the

fundamental areas of public anxiety at the moment are inflation, static or dropping

incomes in some sectors of manufacturing,

real fear of redundancy, and above all in the middle and lower income

brackets, pressure from rents and mortgages. Nevertheless the focus is on

bus fares. It seems to be assumed that the Government has in some way

already made up its mind. This is completely untrue. We realise the effect

that very large increases could have on family budgets. We also know that Hong

Kong people are realistic and accept that fair charges must be paid to cover

particularly if these services are to be improved.

the costs of services, But they need assurance that what they are eventually

asked to pay is based on figures that are accurate and accountancy that is fair.

So no decision will be taken before

all aspects have been submitted to the most searching scrutiny first by the

Transport Advisory Committee and secondly by the Executive Council. The

first of these stages has only just now commenced.

Before leaving the sour,

I think it reasonable to point out that we are talking about an unemployment

figure that is still comparatively low, about a decline in the growth rate of our

and about what looks like being

exports at worst a shallow and temporary recession. Though the situation has

been aggravated by the coincidence of immigration and inflation, comparisons

with the deep recession of 1974/75 are completely misplaced.

In facing this situation, which is not all that serious compared

with situations Hong Kong has overcone in the past, we should remember how

extraordinarily well the economy has performed during the last 5 years, when,

let us remember most developed economies have been in pr

of, recession most of the time.

on the adge

/It has

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