WEDNESDAY, MARCH 26, 1986
20
TIME FOR APPROPRIATE ASSISTANCE
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THE GOVERNMENT SHOULD REVIEW ITS PRESENT POLICY ON NON-INTERVENTION IN TRADE AND INDUSTRY, THE HON POON CHI-FAL SAID TODAY (WEDNESDAY) DURING THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL.
MR POON SAID HONG KONG NOW FACED WORLD-WIDE TRADE
PROTECTIONISM, GLOBAL DEPRESSION, A LACK OF BUSINESS CONFIDENCE IN LONG-TERM INVESTMENT AND A DRASTIC DECREASE IN INDUSTRIAL INVESTMENTS, ALL RESULTING IN INCREASED PRODUCTION. COSTS.
ON THE OTHER HAND, HE SAID, CHINA HAD STRENGTHENED
CONTROL OF ITS FOREIGN EXCHANGE, REGULATION OF ITS BALANCE OF TRADE, AND HAD BEEN ENGAGED OVER THE PAST FEW YEARS IN INTRODUCING MODERN TECHNOLOGY TO BOOST ITS COMPETITIVENESS.
L
+TOGETHER WITH LOWER SALARY LEVELS IN NEIGHBOURING COUNTRIES WHOSE GOVERNMENTS HAVE ASSISTED IN THE PROMOTION OF INDUSTRIES WE CANNOT HELP WORRYING THAT IF HONG KONG DID NOT HAVE THE BENEFIT OF GOVERNMENT SUPPORT CAN WE SURVIVE ALONE?+ HE ASKED.
REFERRING TO RECENT CRISES IN THE BANKING INDUSTRY, MR POON SAID THESE HAD DEMONSTRATED THAT IF INDUSTRY LOST ITS COMPETITIVE EDGE IT WOULD BE DIFFICULT FOR THE GOVERNMENT TO REMAIN ALOOF.........
+ IF GOVERNMENT COULD EXEMPT PROFIT TAX ON OFFSHORE INTEREST AND STAMP DUTIES TO ENHANCE THE DEVELOPMENT OF THE FINANCIAL SECTOR, TAKE UNPRECEDENTED ACTION TO TAKE OVER THE HANG LUNG, OVERSEAS TRUST AND HONG KONG INDUSTRIAL AND COMMERCIAL BANKS, AND USE THE EXCHANGE FUND TO GUARANTEE THE BAD DEBTS OF KA WAH BANK, I FAIL TO SEE WHY GOVERNMENT CANNOT ACCORD
APPROPRIATE AND LIMITED ASSISTANCE TO THE INVESTMENT AND DEVELOPMENT : OF HONG KONG INDUSTRIES,+ HE SAID.
+TO SUM UP. THE 'NON-INTERVENTION' POLICY ON INDUSTRY ADOPTED BY GOVERNMENT DEFINITELY WARRANTS A REVIEW, HE STRESSED.
ON STRENGTHENING MONETARY SUPERVISION, MR POON SUGGESTED THAT THE GOVERNMENT SHOULD SET UP AN EFFECTIVE AND COMPREHENSIVE SYSTEM OF MONETARY SUPERVISION AS A MATTER OF URGENCY..
HE WELCOMED RECENT MEASURES PROPOSED BY THE GOVERNMENT. BUT HE SAID IF THE MINIMUM CAPITAL TO RISK ASSETS RATIO. IN THE NEW BANKING BILL WAS TO BE ENFORCED STRICTLY IT WOULD INCREASE PRESSURE ON SMALL AND MEDIUM-SIZED BANKS AND FINANCE COMPANIES WHICH HAD RELATIVELY WEAK CAPITAL-RAISING POWER. HE THEREFORE CALLED FOR CAREFUL ATTENTION TO BE PAID. TO THIS AREA.
ON TAXATION, MR POON SAID THE INCREASE IN THE PERSONAL TAX ALLOWANCE, EASING THE BURDEN ON MIDDLE AND LOWER INCOME GROUPS, WAS TO BE WELCOMED.
HOWEVER, HE