WEDNESDAY, MARCH 28, 1984
10
+ IF THESE ASSURANCES ARE FORTHCOMING, BUT ONLY IF THEY ARE FORTHCOMING, WILL THE PEOPLE HAVE CONFIDENCE IN THE FUTURE OF HONG KONG, + SHE SAID.
+ IT IS ESSENTIAL, THEREFORE, AND IN THE INTERESTS OF BOTH CHINA AND BRITAIN TOO, THAT THE AGREEMENT NOW BEING NEGOTIATED SHOULD TAKE FULLY INTO ACCOUNT THE VIEWS, THE ASPIRATIONS AND THE FEARS OF THE PEOPLE WHO LIVE HERE, SHE ADDED.
EARLIER MISS DUNN EXPRESSED CONCERN THAT THE BUDGET SPEECH DID NOT SET OUT A COHERENT STRATEGY FOR THE FUTURE, BASED ON OUR PRESENT AND LIKELY FUTURE SITUATION.
SHE WAS ALSO VERY DOUBTFUL AS TO WHETHER WE COULD AT PRESENT AFFORD THE LEVEL OF PUBLIC SECTOR EXPENDITURE PROPOSED IN THE ESTIMATES.
SHE SAID THAT WE COULD TAKE HEART FROM THE FACT THAT 1983-84 IN THE END HAD TURNED OUT BETTER THAN AT ONE TIME SEEMED POSSIBLE, BUT SHE WARNED THAT NOW, IN CONSIDERING THE THIRD CONSECUTIVE YEAR OF DEFICIT FINANCING, WE MUST FACE THE FACT THAT, EVEN IF LAND SALES REVIVE, WE CANNOT EXPECT OUR CAPITAL REVENUE TO REACH AGAIN THE DIZZY HEIGHTS IT REACHED IN THE RECENT PAST+.
SHE BELIEVED THAT IT WAS UNLIKELY THAT IT WOULD BE EVER SO EASY AGAIN TO FINANCE THE DEFICIT ON CAPITAL ACCOUNT FROM LAND REVENUE BUT POINTED OUT THAT THIS WAS REALLY NO BAD THING.
+LONG-TERM SUSTAINABLE GROWTH IN THE ECONOMY REQUIRES THAT LAND SHOULD NOT BE A SCARCE COMMODITY WHOSE PRICE IS CONSTANTLY DRIVEN UP BY AN EXTREME IMBALANCE BETWEEN SUPPLY AND DEMAND,+ SHE SAID.
TURNING TO FORECAST FOR FUTURE IN THE BUDGET, SHE SAID, +THERE ARE ONLY OCCASIONAL REFERENCES TO THE FUTURE, THE NEW 'FORECAST PERIOD, THAT IS UP TO 31 MARCH, 1988, BY WHICH TIME OUR FORMAL CONTINGENT LIABILITIES WILL HAVE RISEN FROM THE PRESENT LEVEL OF ABOUT 14 BILLION DOLLARS TO 23 BILLION.
SHE QUERIED WHERE WERE THE FORECASTS OF REVENUE AND EXPENDITURE FOR THE +FORECAST PERIOD+ AND WHERE WAS THE BUDGETARY STRATEGY DESIGNED TO BRING THEM INTO LINE.
MISS DUNN SAID THAT HER CONCERN OF THESE OMISSIONS WAS HEIGHTENED BY THE FINANCIAL SECRETARY'S STATEMENT THAT HIS INTENTION REMAINED TO BE TO ENSURE THAT THE GROWTH RATE IN REAL TERMS IN PUBLIC SECTOR EXPENDITURE DOES NOT OVER A PERIOD OF YEARS EXCEED THE GROWTH RATE OF GDP+.
+IN MY OPINION WE CANNOT AFFORD TO LET THE GROWTH RATE OF PUBLIC SECTOR EXPENDITURE COME ANYWHERE NEAR THE GROWTH RATE OF GDP UNTIL WE ARE OUT OF THE WOOD, SHE SAID.
SHE NOTED THAT THE GROWTH RATE OF PUBLIC EXPENDITURE HAD ALMOST OVER ANY RECENT PERIOD OF YEARS+ EXCEEDED THE GROWTH RATE OF GDP BY A CONSIDERABLE MARGIN AND SINCE 1979 BY 50 PER CENT.
/MIS EVIDENCE,