WEDNESDAY, NOVEMBER 26, 1986
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ON ISSUES CONCERNING ELECTRICITY, MR JACOBS POINTED OUT THAT CONSULTANTS EMPLOYED BY THE GOVERNMENT IN 1981 HAD FOUND THAT THE TWO POWER COMPANIES WERE OPERATING EFFICIENTLY, CONFORMING TO INTERNATIONAL STANDARDS IN ALL RESPECTS.
TO CREATE A BODY SUCH AS AN ENERGY COUNCIL WOULD ONLY DUPLICATE THE EXISTING, WELL TRIED AND EFFECTIVE MONITORING SYSTEMS. IN REAL TERMS HONG KONG WAS TODAY PAYING LESS FOR ITS ELECTRICITY THAN THREE YEARS AGO, HE ADDED.
DEALING WITH PUBLIC FINANCE AND MONETARY MATTERS, MR JACOBS NOTED SUGGESTIONS REGARDING TAX RATES AND FINANCIAL INCENTIVES, AND SAID THESE WERE SUBJECTS THAT HE WOULD BE CONSIDERING IN THE RUN-UP TO THE BUDGET.
HE EMPHASISED THAT THE LINKED EXCHANGE RATE SYSTEM WOULD BE MAINTAINED. +NO SYSTEM IS ENTIRELY FLAWLESS, BUT THIS ONE WORKS WELL,+ HE SAID.
ON A SUGGESTION THAT THE HOUSING AUTHORITY SHOULD USE MORE OF ITS OWN RESOURCES TO PROVIDE PUBLIC HOUSING, THEREBY RELEASING MORE GOVERNMENT REVENUE FOR WELFARE AND SOCIAL PROGRAMMES, MR JACOBS SAID:
+THE HOUSING AUTHORITY'S SHARE OF THE CAPITAL COST OF NEW RENTAL PUBLIC HOUSING, THAT IS TO SAY, THE SHARE THAT THE AUTHORITY PROVIDES, HAS INCREASED STEADILY IN RECENT YEARS FROM 22 PER CENT IN 1981-82 TO 43 PER CENT IN 1986-87 AND IS PROJECTED TO INCREASE FURTHER TO 59 PER CENT BY 1987-88.+
TURNING TO FINANCIAL SERVICES GENERALLY, MR JACOBS SAID BRINGING TOGETHER POLICY RESPONSIBILITIES FOR BANKING AND SECURITIES UNDER THE ROOF OF THE MONETARY AFFAIRS BRANCH WAS AN IMPORTANT STEP IN THE RIGHT DIRECTION, GIVEN THE GROWING INTEGRATION OF BANKING AND SECURITIES BUSINESSES.
WHETHER THE PRESENT ARRANGEMENTS SHOULD BE FURTHER DEVELOPED BY THE ESTABLISHMENT OF A SINGLE FINANCIAL INDUSTRY ADVISORY THINK-TANK WAS HIGHLY DEBATABLE.
HE SAID: +IT MUST BE ACCEPTED THAT THE GOVERNMENT MUST ALWAYS DO A CERTAIN AMOUNT OF ITS THINKING OF POLICY ISSUES IN PRIVATE, PARTICULARLY IF THE ISSUES ARE MARKET SENSITIVE. FOR THE MOMENT I THINK WE HAVE THE RIGHT STRUCTURE TO ENSURE PROPER DEVELOPMENT OF IDEAS AND CO-ORDINATION OF POLICIES, AND TO SUPERIMPOSE YET ANOTHER BODY WOULD NOT IN MY VIEW REALLY HELP.
THE WHOLE SUBJECT OF FINANCIAL SERVICES, BANKING AND SUPERVISION WAS IN A STATE OF RAPID CHANGE AND CHANGE BROUGHT WITH IT PROBLEMS, IF NOT DANGERS, AND THE GOVERNMENT HAD HAD TO INTERVENE IN THE BANKING SECTOR TO PROTECT DEPOSITORS AND THE INTERGRITY OF THE FINANCIAL SYSTEM.
/HE ACCEPTED
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