VODA... SU
17, 1985
1
SIR JOHN CAUTIOUS AGAINST UNDUE OPTIMISM
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THE GOVERNMENT MUST BE PRUDENT AND CAREFUL IN ALL ITS FINANCIAL, ECONOMIC AND BUDGETARY POLICIES AS HONG KONG WAS STILL VERY EXPOSED TO EXTERNAL FORCES OVER WHICH IT HAD NO CONTROL, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID IN THE LEGISLATIVE COUNCIL TODAY.
WINDING UP THE RESUMED BUDGET DEBATE, SIR JOHN CAUTIONED AGAINST UNDUE OPTIMISM OR COMFORTING BELIEF THAT ALL HIS PROJECTIONS WERE OVER CONSERVATIVE.
✦ BELIEVE IT IS NOW EVIDENT TO MOST PEOPLE WHAT ARE THE GOVERNMENT'S AIMS, HOW WE HAVE SET OUT TO ACHIEVE THEM AND WHAT IS OUR RATE OF SUCCESS, HE SAID.
REPLYING TO POINTS RAISED DURING THE DEBATE, THE FINANCIAL SECRETARY AGREED THAT FRESH INDIRECT TAXATION OF INDULGENCIES MIGHT PROVE INCREASINGLY CONTENTIOUS AND DIFFICULT TO IMPLEMENT.
+THE LOGICAL END OF THIS PARTICULAR ROAD IS A GENERAL SALES TAX OR VAT. BOTH OF WHICH I SHOULD PREFER TO AVOID. IT MUST BE ADMITTED, HOWEVER, THAT OTHER FLOURISHING ECONOMIES EMBRACE THEM WITHOUT OBVIOUS DAMAGE TO THEIR STRUCTURES, SO I SUPPOSE THAT WE SHOULD AT LEAST REMAIN OPEN-MINDED.
+AGAIN | EMPHASISE MY HOPE THAT MORE REAL INCREASES CAN BE AVOIDED. BUT THE KEY FACTOR IS THE 179 PER CENT OF GDP REPRESENTED BY OUR TRADE. WE ARE VULNERABLE ALWAYS TO EXTERNAL SHOCKS,+ HE SAID.
ON VARIOUS SUGGESTIONS FOR POSSIBLE NEW TAX MEASURES,
SIR JOHN SAID HE DID NOT LIKE THE IDEA OF A FLAT IMPORT TÁX.
+OUR FREE PORT STATUS HAS SERVED US WELL AND THE GOVERNMENT WILL NOT LIGHTLY CAST IT ASIDE. IF NEEDS MUST, HOWEVER, THE POSSIBILITY EXISTS.+
ON SUGGESTIONS TO CHARGE FOR CHINA PASSENGER TRANSIT FACILITIES, SIR JOHN SAID HIS CONCERN WAS SENSITIVE TIMING OF IMPLEMENTATION.
HE ADDED THAT HE HAD CAREFULLY CONSIDERED A TAX ON ADVERTISING BUT HAD REJECTED THE IDEA FOR THIS YEAR FOR THREE MAIN REASONS.
+FIRSTLY IT WOULD UNDOUBTEDLY INFLICT FINANCIAL DAMAGE ON PRESS AND TELEVISION AND COULD THEN BE TAKEN AS A DELIBERATE AND UNTIMELY ATTACK ON FREEDOM OF EXPRESSION.
+SECONDLY, WHILE I DO NOT DUCK A FIGHT, THE SHRILL CRIES FROM THE COSMETICS AND SOFT DRINKS LOBBIES WOULD SEEM BUT A FAINT PIPING IN THE DISTANCE COMPARED WITH THE TRUMPETING WHICH THE ADVERTISING INDUSTRY WOULD PRODUCE.
+THIRDLY, IT WAS NOT NECESSARY OR RATHER SEEMED TO HAVE LESS MERIT THAN MY OTHER PROPOSALS, HE SAID.
FINANCIAL