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MONDAY, NOVEMBER 9, 1981
AN EXAMPLE IN WHICH REGULATION WAS NECESSARY WAS IN THE MONETARY SECTOR +WHERE IMPLICATIONS FOR THE ECONOMY OF MARKET IMPERFECT JONS OR OF THE OVER-VIGOROUS OPERATION OF MARKET FORCES CAN BE SUBSTANTIAL. +
MR BREMRIDGE SAID THAT WHILE THE ECONOMY APPEARED TO BE ADJUSTING FAVOURABLY, THE INFLATION RATE WAS IN PART DUE TO THE TOO RAPID EXPANSION OF LOANS AND ADVANCES.
SOME FORM OF SUPPLY RESTRAINTS HAD TO BE CONSIDERED, HE SAID, BUT EMPHASISED THAT BEFORE FURTHER REGULATION WAS INTRODUCED THERE WAS NEED TO BE SURE THAT THE UNDESIRABLE AND UNAVOIDABLE SIDE-EFFECTS OF DOING SO, SHORT-TERM AND LONG-TERM, DID NOT OUTWEIGH THE ADVANTAGES.
ANOTHER AREA WHERE REGULATION OF MARKETS WAS REQUIRED WAS THE STOCK MARKET. IT WAS HIS HOPE, HOWEVER, THAT THE UNIFIED STOCK EXCHANGE WOULD FIND EFFECTIVE MEASURES OF SELF-REGULATION.
+ IF IT DOES NOT, GOVERNMENT WILL CONTINUE STRONGLY TO BACK THE SECURITIES COMMISSION IN EFFORTS TO IMPOSE A SOLUTION,+ HE SAID.
DISCUSSING GOVERNMENT ECONOMIC POLICY WITH REGARD TO ACHIEVING SOCIAL EQUITY, HE SAID THE AIM WAS TO ALLOW FINANCIAL INCENTIVES TO PROMOTE GENERAL GROWTH FROM THE TOP. THIS MEANT THE ACCEPTANCE OF THE ROLE OF WEALTH IN WHICH PERSONAL FREEDOM WAS ALL IMPORTANT, AND +CONSCIOUS RECOGNITION OF THE INEVITABILITY OF A DEGREE OF INEQUALITY IN INCOME DISTRIBUTION.
AN INCREASING SHARE OF PUBLIC SECTOR EXPENDITURE HAD BEEN GEARED TO INCREASING THE SOCIAL WAGE IN TERMS OF THE PROVISION OF HOUSING, EDUCATION, MEDICAL HEALTH AND SOCIAL WELFARE SERVICES, AT A HEAVILY SUBSIDISED IF NOT ZERO COST TO CONSUMERS, HE SAID.
TAX EXEMPTION ON INTEREST EARNED
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INTEREST PAYABLE BY LICENSED BANKS, BY CERTAIN PUBLIC UTILITIES AND BY THE GOVERNMENT AT RATES OF UP TO 12-1/2 PER CENT PER ANNUM WILL BE EXEMPT FROM INTEREST TAX FROM TODAY (MONDAY), A GOVERNMENT SPOKESMAN ANNOUNCED.
HE SAID THAT THIS REPRESENTS A REDUCTION OF ONE PER CENT IN THE EXEMPTION LIMIT, AND FOLLOWS THE ANNOUNCEMENT BY THE HONG KONG ASSOCIATION OF BANKS ON FRIDAY THAT THE RATES OF INTEREST PAYABLE ON SAVINGS ACCOUNTS WOULD BE REDUCED TO 12-1/2 PER CENT WITH EFFECT FROM TODAY.
A NOTICE SIGNED BY THE FINANCIAL SECRETARY UNDER SECTION 28(1) OF THE INLAND REVENUE ORDINANCE IS PUBLISHED IN AN EXTRAORDINARY GAZETTE TODAY.
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