11
THURSDAY, MARCH 19, 1987
TURNING TO THE PROPOSED BUDGET FOR THE BRITISH MILITARY HOSPITAL, DR CHIU NOTED THAT THE HOSPITAL WAS OPERATED UNDER THE TERMS OF THE DEFENCE COST AGREEMENT AND THAT ITS BUDGET, SUBSUMED WITH THE OVERALL COSTS OF THE GARRISON, WAS NOT SEPARATELY
IDENTIFIABLE.
HE SAID HE WOULD CONTINUE TO LOOK UP TO THE GOVERNMENT FOR THE RELEASE OF THE NEEDED INFORMATION WHEN IT WAS AVAILABLE.
CALL TO MAINTAIN PRESENT INVESTMENT CLIMATE
*****
IT IS IMPERATIVE FÜR HONG KONG TO MAINTAIN ITS PRESENT FAVOURABLE INVESTMENT ENVIRONMENT TO ATTRACT EVEN MORE OVERSEAS INVESTORS FOR A LONG PERIOD, THE HON HU FA-KUANG SAID TODAY (THURSDAY).
SPEAKING DURING THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, MR HU POINTED OUT THAT THERE COULD BE HESITATION FROM LOCAL INVESTORS TO FURTHER THEIR CAPITAL INVESTMENT TOWARDS THE END OF THE DECADE AS IT WOULD BE ONLY SEVEN OR EIGHT YEARS BEFORE 1997. HE SAID THE CONTINUED INVESTMENT BY FOREIGN INVESTORS WOULD PUT THE MIND OF LOCAL INVESTORS AT EASE ON THE FUTURE STABILITY AND PROSPERITY OF HONG KONG EVEN BEYOND 1997.
TURNING TO THIS YEAR'S BUDGET, MR HU PRAISED THE FINANCIAL SECRETARY FOR HAVING WISELY DECIDED TO LOWER THE STANDARD TAX RATE AND PROFIT TAX BY 0.5 PER CENT WHICH GAVE A CLEAR INDICATION OF THE DIRECTION OF FUTURE MOVEMENT.
HE ALSO SHARED THE FINANCIAL SECRETARY'S VIEW THAT THE STABILITY OF PUBLIC FINANCES COULD BEST BE ASSURED BY ENDEAVOUR ING TO DEVELOP A BROADLY BASED TAX SYSTEM AND TO SPREAD THE TAX BURDEN MORE WIDELY ACROSS THE COMMUNITY.
COMPARING THE MERITS AND DEMERITS OF DIRECT AND INDIRECT TAXATION, MR HU AGREED THAT A PRACTICAL APPROACH SHOULD BE TAKEN IN DEVELOPING A BROADLY BASED TAX SYSTEM.
INITIALLY, WE SHOULD ONLY CONSIDER THOSE ITEMS WHICH ORDINARY PEOPLE CAN AFFORD TO USE LESS OR EVEN NO USAGE, HE SAID. MR HU NOTED A NUMBER OF SHORTFALLS IN THE PROVISION OF SOCIAL SERVICES.
/HE SAID