THURSDAY, MARCH 26, 1981
12
+ I STRONGLY BELIEVE THAT DEVELOPING FOUNDAMENTAL TECHNOLOGICAL RESEARCH TO MEET THE NEEDS OF OUR INDUSTRIES IS ONE OF THOSE FRUITFUL AREAS IN WHICH WE SHALL MUTUALLY BENEFIT.
+WE SHOULD ACT QUICKLY TO ENABLE US TO COPE WITH THE RAPID CHANGES AND CHALLENGES IN THE 80'S, HE ADDED.
ON PREFERENTIAL INTEREST RATE FOR MANUFACTURERS, MR WONG SAID CONCESSION IN DEPRECIATION ALLOWANCES ALONE IS NOT ENOUGH IN THESE TIMES OF HIGH INFLATION AND INTEREST RATES, AND A GENERALLY DEPRESSED WORLD MARKET.
HE RECALLED THAT IN 1979 A NUMBER OF LEADING BANKS OFFERED PREFERENTIAL INTEREST RATE TO INDUSTRY FOR FINANCING IMPORTS OF RAW MATERIALS AND CAPITAL EQUIPMENT.
THIS ARRANGEMENT LAPSED WHEN INTEREST RATE TEMPORARILY DROPPED IN MID-1980 AND THERE WAS ALSO CONCERN THAT IT WAS DIFFICULT TO ENSURE THE LOANS EXTENDED ON SPECIAL TERMS WERE IN FACT USED TO
'NANCE MANUFACTURING AND NOT OTHER ACTIVITIES.
HOWEVER, MR WONG DID NOT ACCEPT THAT SUCH A SCHEME COULD SILY BE ABUSED SINCE +A PREFERENTIAL INTEREST RATE WOULD ONLY BE ANTED WHEN THE PURCHASE OF MACHINERY IS EVIDENCED BY A RECEIPTED .VOICE. +
HE CALLED ON BANKERS TO RE-INSTATE THE SCHEME WHICH HE SAID VD NO DOUBT GIVE NEW IMPETUS TO THE HARD PRESSED MANUFACTURING .DUSTRY.
+LET US NOT FORGET THAT OUR ECONOMY STILL RELIES HEAVILY ON HE MANUFACTURING SECTOR TO GENERATE WEALTH AND MAINTAIN EMPLOYMENT, E STRESSED.
GREATER ROLE FOR PRIVATE SECTOR
****
THE PRIVATE SECTOR SHOULD BE OFFERED LARGE TRACTS OF LAND WITH THE OBLIGATION TO CARRY OUT PUBLIC PROJECTS TO HALT THE 20 PER CENT RISE IN THE PUBLIC SECTOR'S PROPORTION OF GDP, THE HON D.K, NEWBIGGING SAID.
AND IF THE FINANCIAL SECRETARY IS CONCERNED THAT SUCH PARTIAL DENATIONAL ISATION COULD LEAVE THE GOVERNMENT'S COFFERS EVEN MORE EMBARRASS INGLY FLUSH WITH CASH, HE ADDED, HE WAS SURE THE PRIVATE SECTOR WOULD RESPOND READILY TO AN OFFER OF +TERMS+.
SPEAKING AT THE RESUMED BUDGET DEBATE IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY), MR NEWBIGGING POINTED OUT THAT THE 156 ACRES OF LAND SOLD IN 1980/81 INCREASED DRAMATICALLY BY JUST OVER 100 PER CENT OVER THE PREVIOUS YEAR'S FIGURE.
+HOWEVER IN BOTH YEARS THE ACTUAL ACREAGE SOLD WAS SIGNIFICANTLY LESS THAN FORECAST - BY OVER 20 PER CENT IN EACH
CASE.
+OF COURSE, IN TERMS OF REVENUE RAISED - $8.8 BILLION OR 70 PER CENT UP ON THE BUDGET ESTIMATES - THE VERY OPPOSITE IS TRUE, REFLECTING THE STEEP RISE IN PROPERTY PRICES LAST YEAR.+
/MR NEWBIGGING