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17
WEDNESDAY, MARCH 25, 1981
LET FREE ECONOMY TAKE ITS OWN COURSE
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THE GOVERNMENT SHOULD ENDEAVOUR TO BUILD ITS OWN OFFICES AND DOMESTIC ACCOMMODATION FOR CIVIL SERVANTS INSTEAD OF RENTING THEM FROM THE PRIVATE SECTOR, DR THE HON HENRY HU SAID.
HE SAID ONE FUNDAMENTAL REASON FOR HONG KONG'S SUCCESS IN THE LAST TEN YEARS IS ITS POLICY OF FREE MARKET ORIENTED ECONOMY.
+HOWEVER, SAID DR HU, THE EXORBITANT RISE IN RENTS MIGHT BE ONE OF THE CAUSES OF HARDSHIP TO OUR WAGE-EARNERS.
+ IF GOVERNMENT STILL CONTINUES TO PURCHASE AND RENT BOTH OFFICE SPACES AND DOMESTIC FLATS IN LARGE QUANTITIES, IT WILL ONLY COMPETE WITH THE PRIVATE SECTOR AND THUS STIMULATE THE UNREASONABLE RISE IN RENTALS AND SELLING PRICES OF BOTH OFFICE AND DOMESTIC PREMISES.+
HE THOUGHT THAT IF THE GOVERNMENT COULD STOP THIS PRACTICE, THE RENTALS WOULD BE ADJUSTED AND REGULATED BY NATURAL MARKET FORCES WITHOUT HAVING THE PAINFUL EFFECT OF ANY RENT-CONTROL.
+LET THE FREE ECONOMY TAKE ITS OWN COURSE WITHOUT GOVERNMENT'S 'EGATIVE INTERVENTION, 1.E. RENTING AND BUYING COMMERCIAL AND DOMESTIC PREMISES IN THE OPEN MARKET, HE URGED.
DR HU SAID ANOTHER MAJOR REASON FOR HONG KONG'S PHENOMENAL SUCCESS IS ITS GEOGRAPHICAL POSITION, IN THAT +HONG KONG HAS BENEFITED BY THE RESOURCES OF A VAST CONTINENT LYING BEHIND IT+.
BUT HE OBSERVED THAT WE HAVE NOT REALLY DERIVED FULL BENEFIT FROM THAT POSITION YET.
+HOW TO CO-ORDINATE OUR ECONOMIC DEVELOPMENT AND GEAR IT TO THE FOUR-MODERNISATION PLAN OF CHINA FOR MUTUAL BENEF IT IS ONE OF THE WAYS THAT MAY LEAD US TO GREATER PROSPERITY.+
DR HU ALSO NOTED THAT HONG KONG'S INDUSTRIES HAVE ACHIEVED CORRESPOND ING SUCCESSES BUT, IN TERMS OF GROWTH RATE, THE YEAR 1980 LAGGED BEHIND BY 15 PER CENT COMPARED WITH THE PREVIOUS YEAR.
ALTHOUGH HE WELCOMED THE INCREASE IN DEPRECIATION ALLOWANCE, DR HU SUGGESTED THE INITIAL DEPRECIATION ALLOWANCE FOR PLANT AND MACHINERY SHOULD BE RAISED TO 50 PER CENT INSTEAD OF THE 35 PER CENT PROPOSED BY THE FINANCIAL SECRETARY IN HIS BUDGET ADDRESS, IN ORDER TO ASSIST LOCAL INDUSTRIES.
HE URGED THE GOVERNMENT TO BUILD A REPLACEMENT AIRPORT AS SOON AS PRACTICABLE AS ITS DELAY WOULD AFFECT HONG KONG'S INDUSTRIAL DEVELOPMENT.
+WE ALSO NEED TO SPEND MORE FOR DIVERSIFICATION AND SOPHISTICATION OF OUR INDUSTRIES IN ORDER TO ENHANCE OUR COMPETITIVE POSITION IN THE WORLD MARKET.
HIGH LEVEL AND SOPHISTICATED RESEARCH SHOULD BE PURSUED WITH VIGOUR AND MAY BE CONDUCTED, INDEPENDENT OF OUR EDUCATIONAL
INSTITUTIONS, HE SAID.