16
THURSDAY, APRIL 9, 1981
PUBLIC SECTOR SIZE MUST BE CONTAINED
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THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE TODAY (THURSDAY) EMPHASISED THAT THE PERSISTENT UPWARD DRIFT IN THE SIZE OF THE PUBLIC SECTOR WILL HAVE TO BE CONTAINED.
WINDING UP THE BUDGET DEBATE, HE SAID THE GROWTH RATES OF PUBLIC SECTOR EXPENDITURE AND THE GROSS DOMESTIC PRODUCT WOULD HAVE TO BE BROUGHT MORE INTO LINE WITH EACH OTHER.
THE REASON THAT THE DRIFT MUST BE CONTAINED, GIVEN THE BUOYANCY OF OUR REVENUES AND THE STATE OF OUR FISCAL RESERVES, IS THAT THE GROWTH RATE OF PUBLIC SECTOR EXPENDITURE, APPROPRIATELY DEFINED, SHOULD HAVE REGARD TO THE GROWTH RATE OF THE ECONOMY,+ HE SAID.
+AND, ALLIED TO THIS, THE RELATIVE SIZE OF THE PUBLIC SECTOR SHOULD BE CAREFULLY WATCHED.+
SIR PHILIP SAID THE PUBLIC SECTOR WAS NOT SUBJECT TO THE DISCIPLINE OF THE PROFIT AND LOSS ACCOUNT AND HAD VIRTUALLY UNLIMITED POWER TO BARGAIN RESOURCES AWAY FROM THE PRIVATE SECTOR.
+BUT IF THE GOVERNMENT CHOOSES TO USE THIS POWER, IT MUST BE AWARE OF THE CONSEQUENCES.
+THUS THE NEED FOR SELF-IMPOSED RESTRAINT IS SELF-EVIDENT, FOR THIS IS THE ONLY SAFEGUARD AGAINST THE PRIVATE SECTOR BEING DEPRIVED OF ACCESS TO COMPETITIVELY PRICED RESOURCES, INFLATIONARY PRESSURES BEING GENERATED AND BALANCE OF PAYMENTS DIFFICULTIES EMERGING,+ SIR PHILIP SAID.
NO TO LAND SUBSIDY
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IT IS NOT THE GOVERNMENT'S POLICY OR PRACTICE TO SUBSIDISE LAND PRICES EXCEPT WHERE THERE ARE GOOD SOCIAL REASONS FOR DOING THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE TOLD THE LEGISLATIVE COUNCIL TODAY (THURSDAY).
So,
HE WAS REPLYING TO POINTS RAISED BY UNOFFICIAL MEMBERS, INCLUDING THE HON LYDIA DUNN WHO HAD SPECIFICALLY SUGGESTED A SUBSIDY IN RESPECT OF LAND USED IN THE HOME OWNERSHIP SCHEME AND THE PRIVATE SECTOR PARTICIPATION SCHEME.
SIR PHILIP SAID THE SCHEMES WERE INTENDED TO MAKE HOME OWNERSHIP POSSIBLE FOR LOWER MIDDLE INCOME FAMILIES AT COST, WITHOUT A PROFIT ELEMENT AND WITH ACCESS TO MORTGAGE FACILITIES ON FAVOURABLE TERMS AND, THEREFORE, THE CALCULATION OF FULL MARKET VALUES FOR THE SITES CONCERNED PROBABLY UNDERSTATED THE TRUE MARKET PRICES LIKELY TO BE REALISED IN AUCTIONS.
+THE HOUSING AUTHORITY IN MANAGING RENTED PUBLIC HOUSING HAS A STATUTORY RESPONSIBILITY ONLY TO ENSURE THAT ITS INCOME MATCHES ITS EXPENSES. AS LAND IS GRANTED TO THE AUTHORITY AT NIL PREMIUM FOR THE CONSTRUCTION OF FLATS FOR RENT, CLEARLY THE AUTHORITY'S RENTALS SHOULD NOT INCLUDE ANY ELEMENT FOR THE COST OF THE LAND.
/+BUT, UNDER