THURSDAY, OCTOBER 25, 1904
15
LOOK FOR ECONOMY IN PUBLIC EXPENDITURE, PETER POON SAYS
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THERE WAS A LIMIT TO FURTHER INCREASES IN DIRECT AND INDIRECT TAXES, SO THE GOVERNMENT MUST LOOK FOR FURTHER ECONOMY IN PUBLIC EXPENDITURE, THE HON PETER POON SAID IN THE LEGISLATIVE COUNCIL TODAY.
MR POON SAID IN BAD TIMES OTHER COUNTRIES DRASTICALLY CUT THE IR PUBLIC EXPENDITURE, INCLUDING A BLANKET CUT IN NUMBERS IN THE CIVIL SERVICE.
WHILE SUCH AUSTERE MEASURES WERE NOT WARRANTED IN HONG KONG'S PRESENT CIRCUMSTANCES, HE PROPOSED A GENERAL REVIEW OF THE CIVIL SERVICE ESTABLISHMENT TO SEE WHETHER THERE WAS AMONG OTHER THINGS IDLE CAPACITY: CONSIDERATION OF FURTHER PRIVATISATION OF SOME GOVERNMENT SERVICES; AND A REALISTIC REVIEW OF CIVIL SERVANTS' FRINGE BENEFITS.
MR POON SAID THOUGH UNDER CONDITIONS OF SERVICE THE GOVERNMENT MIGHT NOT BE ABLE TO LAY OFF STAFF IT COULD ADOPT MORE INTENSIVELY THE POLICY OF NOT FILLING ANY VACANCIES NO LONGER REQUIRED AND OF REDEPLOYING REDUNDANT STAFF TO OTHER GOVERNMENT DEPARTMENTS.
ON FURTHER PRIVATISATION HE SAID THIS MEASURE HAD BEEN SUCCESSFUL IN RESPECT OF THE KOWLOON-CANTON RAILWAY AND SOME GOVERNMENT CAR-PARKS.
+ IT TAKES AWAY THE BURDEN OF INCREASING SALARIES AND PENSION COSTS FROM GOVERNMENT'S BUDGETS IN THESE AREAS, HE SAID.
ON FRINGE BENEFITS HE ADMITTED THAT THE TERMS OF EMPLOYMENT IN THE PRIVATE SECTOR MANY YEARS AGO MIGHT HAVE BEEN BETTER THAN THE GOVERNMENT'S, BUT THE SITUATION WAS NO LONGER THE SAME EXCEPT PERHAPS FOR THE SUPER-SCALE GRADE.
HE WAS CRITICAL OF +HEAVILY SUBSIDISED ACCOMMODATION+ AND OVERSEAS EDUCATION ALLOWANCES.
+ MUST STRESS THAT I AM FULLY CONVINCED THAT WE HAVE A VERY EFFICIENT CIVIL SERVICE, MR POON SAID.
+NOTWITHSTANDING THIS, THE IMPORTANT POINT IS NOT ONLY TO ENSURE THAT THE ESTABLISHMENT IS THE RIGHT SIZE BUT ALSO THE JUSTIFICATION FOR THE LEVEL OF CONDITIONS OF SERVICE.+
TURNING TO FINANCIAL ASPECTS, MR POON SAID THE GOVERNMENT CONTINUED TO LAY GREAT EMPHASIS ON REGULATION OF THE FINANCIAL SECTOR.
THIS WAS ESSENTIAL TO MAINTAIN THE EFFICIENCY AND CREDITABILITY OF HONG KONG AS THE THIRD LARGEST FINANCIAL CENTRE IN THE WORLD.
+NO EFFORTS OR EXPENSES SHOULD BE SPARED TO UPHOLD OUR IMAGE IN THIS REGARD, HE SAID.
/THE COMPANIES