NJ
WEDNESDAY, IL 17, 1985
*
+
THE FINANCIAL SECRETARY SAID HE WAS AGAINST ANY APPRECIABLE CHARGES TO THE TAXATION OF BUSINESS FRINGE BENEFITS BECAUSE THEY WOULD BE DIFFICULT TO ADMINISTER AND WOULD NOT BE VERY PRODUCTIVE OF REVENUE: THEY WOULD BE MOST UNPOPULAR, PARTICULARLY WITH THOSE CONSIDERING NEW INVESTMENT FROM OVERSEAS INVOLVING POSTINGS: THEY WOULD FALL HEAVIEST ON THE 28 000 WHO ALONE PAID TAX AT THE TOP RATE OF 17 PER CENT AND THEY WOULD THUS BE A FORM OF INCREASED SALARIES TAX.
+SHOULD THERE BE SIGNS OF ABUSE, HOWEVER, THE GOVERNMENT WOULD BE READY TO RECONSIDER ITS POSITION, HE SAID.
ON PRIVATISATION OF SERVICES, THE FINANCIAL SECRETARY SAID
HE WAS NOT OPPOSED TO THE IDEA PER SE.
*MEMBERS WILL HAVE NOTED THE ADMINISTRATION'S APPROACH TO THE FINANCING OF THE TUEN MUN LIGHT RAIL SYSTEM, THE EASTERN HARBOUR CROSSING, AND THE HONG KONG NUCLEAR INVESTMENT CO, HE SAID.
FANYTHING NEW THAT CAN PROPERLY BE DONE BY THE PRIVATE
SECTOR, SHOULD BE.
+IT MUST, HOWEVER, BE REMEMBERED THAT WE HAVE TO BALANCE THE ATTRACTIONS THAT PRIVATISATION MAY SEEM TO OFFER IN SOME EXISITING AREAS AGAINST BOTH THE MORALE OF THE CIVIL SERVICE AND THE CONSIDERABLE COSTS OF AND MANAGEMENT TIME INVOLVED IN DISESTABLISHMENT.
+THE STABILISATION OF THE SIZE OF THE CIVIL SERVICE HAS INTRODUCED A NEW FACTOR. IT MUST REQUIRE REDEPLOYMENT, WHICH PRIVATISATION COULD FURTHER WITHOUT AFFECTING EMPLOYMENT PROSPECTS.
A DEGREE OF CONTRACTING OUT OF SERVICES, ESPECIALLY NEW SERVICES. PRESENTS LESS OBVIOUS DIFFICULTIES AND MUST INDEED ALWAYS BE CONSIDERED, HE SAID.
PROSPECT OF BALANCED BUDGET MUCH CLOSER
*****
FS
THE PROSPECT OF A BALANCED BUDGET NEXT YEAR WAS MUCH CLOSER WITH THE REVISED ESTIMATES FOR 1984-85 SHOWING IMPROVED YIELDS FROM PROF ITS TAX, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY.
CONCLUDING THE DEBATE ON THE SECOND READING OF THE APPROPRIATION BILL, SIR JOHN SAID THIS IMPROVEMENT GAVE HIM THE OPPORTUNITY TO TRANSFER AN ADDITIONAL $500 MILLION TO THE CAPITAL WORKS RESERVE FUND.
/+THIS WILL