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WEDNESDAY, MARCH 18, 1987
HE WELCOMED THE NEWS THAT WITH LESS DEPENDENCE ON THE FLUCTUATING INCOME FROM LAND SALES, GOVERNMENT REVENUE WOULD NOW BE BASED ON MORE STABLE SOURCES.
HE SUGGESTED THAT GOVERNMENT SHOULD CONTINUE TO DEVELOP THIS POLICY UNDER WHICH REVENUE WOULD BE BASED ON STABLE SOURCES.
MR LI NOTED THAT THE BALANCED BUDGETS FOR THE LAST TWO YEARS WERE ACHIEVED MAINLY THROUGH A REDUCTION IN GOVERNMENT'S CAPITAL EXPENDITURE WITH LITTLE ATTEMPT TO CONTROL RECURRENT EXPENDITURE, PARTICULARLY THE SALARY AND STAFF RELATED EXPENDITURE OF THE CIVIL SERVICE.
HE SAID HE WAS DISTURBED BY THE FACT THAT GOVERNMENT HAD FAILED TO RESTRAIN THE INCREASE IN COST OF CIVIL SERVICE.
+THE MORALE OF THE PUBLIC SERVANTS IS MAINTAINED AT THE EXPENSE OF ALL TAXPAYERS AND AT THE COST OF A REDUCTION IN GOVERNMENT'S COMMITMENT TO LONG-TERM INVESTMENT PROJECTS,+ HE SAID.
HE POINTED OUT THAT IT SHOULD BE THE GOVERNMENT'S PRIORITY TO INCREASE THE PRODUCTIVITY OF THE CIVIL SERVICE ON THE ONE HAND AND TO COMMIT SUFFICIENT CAPITAL FOR THE DEVELOPMENT OF HONG KONG'S PHYSICAL AND SOCIAL INFRASTRUCTURE ON THE OTHER.
URGING THE GOVERNMENT TO INTENSIFY THE CAMPAIGN AGAINST PROTECTIONISM, MR LI SAID THERE WERE AT LEAST TWO WAYS FOR INDUSTRIALISTS TO SURVIVE.
ONE WAS TO TRADE UP EXISTING PRODUCTS AND THE OTHER WAS TO DIVERSIFY INTO HIGH-TECHNOLOGY INDUSTRIES.
HE CALLED ON THE GOVERNMENT TO CONSIDER A MORE LIBERAL DEPRECIATION AND INVESTMENT ALLOWANCE SCHEME TO ENCOURAGE INVESTMENT IN PLANT AND NEW MACHINERY.
HE ALSO SUGGESTED THAT THE GOVERNMENT SHOULD CARRY OUT AN IN-DEPTH STUDY ON THE FUTURE DEVELOPMENT OF MANUFACTURING INDUSTRIES AND TO DEVOTE SIGNIFICANT RESOURCES TO SUPPORT RESEARCH AND DEVELOPMENT PROGRAMMES WHICH WOULD BENEFIT LONG-TERM GROWTH INDUSTRIES.
TURNING TO THE SUGGESTION TO REVALUE THE HONG KONG DOLLAR MR LI POINTED OUT THAT A REVALUATION OF THE HONG KONG DOLLAR WOULD MEAN THE ABANDONMENT OF GOVERNMENT'S COMMITMENT TO A STABLE EXCHANGE RATE FOR THE HONG KONG CURRENCY.
HE FELT THIS POSITION SHOULD BE STRONGLY DEFENDED AND ADDED THAT ONE OF THE MOST WORRYING MONETARY ISSUES WAS THE PROJECTED RISE IN INFLATION FOR 1987 WHICH THE GOVERNMENT SHOULD TRY ITS BEST TO COMBAT.
/MR LI