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WEDNESDAY, NOVEMBER 27, 1985
+BEAR ING IN MIND THE SUBSTANTIAL GROWTH OF DOMESTIC EXPORTS TO CHINA WHICH WAS 75 PER CENT UP IN VALUE TERMS FOR THE FIRST HALF OF 1985, THIS MEANS THAT DOMESTIC EXPORTS TO OUR TRADITIONAL MARKET HAVE CONTINUED TO DECLINE.
+ IN THE LIGHT OF THE GROWING UNCERTAINTIES, THE NEED TO BE CAUTIOUS IN THE MANAGEMENT OF PUBLIC FINANCE IS THEREFORE PARAMOUNT, HE SAID.
HE STRESSED THAT WE MUST CRITICALLY EXAMINE THE EXPENDITURE ON ALL OUR EXISTING POLICY COMMITMENTS, MENTIONING IN PARTICULAR EXPENDITURES IN THE AREAS OF PUBLIC HOUSING AND EDUCATION.
HE SAID THAT FROM THE STATISTICS OF COMPARATIVE GOVERNMENT EXPENDITURES ON HOUSING AND EDUCATION OF
SEVERAL COUNTRIES OVER A PERIOD OF SIX YEARS FROM 1978 TO 1983, IT COULD BE SEEN THAT ON HOUSING, HONG KONG HAD
CONSISTENTLY BEEN THE LEADER AMONG BOTH INDUSTRIALLY DEVELOPED AND DEVELOPING COUNTRIES WHILE ON EDUCATION, HONG KONG WAS ONLY SECOND TO JAPAN.
+wE SHOULD OF COURSE BE PROUD TO BE IN THE FOREFRONT IN THE PROVISION OF THESE SOCIAL SERVICES.
+BUT HAVING ACHIEVED SO MUCH IN SO SHORT A TIME. I SUGGEST THE TIME HAS NOW COME FOR US TO TAKE A HARD LOOK AT HOW MUCH FURTHER WE SHOULD GO OR CAN AFFORD TO GO WITHOUT UPSETTING OUR LONG ESTABLISHED FISCAL POLICY THAT WE MUST HAVE A SIMPLE AND EQUITABLE TAXATION SYSTEM WITH LEVELS SET TO PROVIDE INCENTIVES TO ENTERPRISE.
+THIS IS IMPERATIVE IF HONG KONG'S PROSPERITY AND STABILITY IS TO BE MAINTAINED AND PRESERVED IN THE FUTURE,+ HE SAID.
MR CHEN NOTED THAT FOR THE PROVISION OF PUBLIC HOUSING, HONG KONG'S TAXPAYERS HAD CARRIED THE FINANCIAL BURDEN TO THE TUNE OF $31 BILLION DURING THE PAST DECADE AND THE QUESTION TO RE ASKED NOW WAS WHETHER WE WERE ONLY HELPING THOSE WHO WERE IN REAL NEED OR WERE WE ALSO SUBSIDISING THE WELL-OFF.
HE SAID HE FULLY SUPPORTED THE UNDERLYING PRINCIPLE SET OUT IN THE GREEN PAPER ON HOUSING SUBSIDY TO TENANTS OF PUBLIC HOUSING THAT WELL-OFF TENANTS MUST BE EXPECTED TO PAY MORE FOR THEIR SUBSIDISED ACCOMMODATION ESPECIALLY WHEN THERE WAS STILL A VERY LARGE NUMBER OF PEOPLE WAITING FOR PUBLIC HOUSING.
+ IT IS ONLY RIGHT AND FAIR THAT THOSE WHO HAVE FOR A LONG TIME BENEFITED FROM SUBSIDISED HOUSING, BUT ARE NOW FINANCIALLY IN A BETTER POSITION, SHOULD EITHER VACATE THEIR UNITS OR LE MADE TO PAY HIGHER RENTS, HE SAID.
HE SUGGESTED THAT INCREASED REVENUE COULD THEN BE PLOUGHED BACK INTO THE PUBLIC HOUSING PROGRAMME TO EASE THE BURDEN OF THE TAX PAYING PUBLIC.
/+UNLESS WE