THURSDAY, APRIL 21, 1988
PRAISE FOR BALANCED BUDGET
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THE FINANCIAL SECRETARY WAS PRAISED IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY) FOR PRODUCING A BALANCED BUDGET FOR HONG KONG, WHICH WAS DESCRIBED AS ONE OF THE VERY FEW PLACES IN THE WORLD WHERE A GOVERNMENT COULD CUT TAXES WHILE SUBSTANTIALLY IMPROVING VARIOUS SERVICES.
SPEAKING ON THE SECOND DAY OF THE BUDGET DEBATE, PROF THE HON POON CHUNG-KWONG ALSO CALLED ON THE GOVERNMENT ΤΟ GIVE SUFFICIENT FINANCIAL SUPPORT TO THE COMMITTEE ON SCIENCE AND TECHNOLOGY 80 THAT THE COMMITTEE COULD IMPLEMENT ITS RECOMMENDATIONS.
HE SAID THAT THE COMMITTEE, OF WHICH HE WAS CHAIRMAN, WOULD HOLD A "BRAINSTORMING" SESSION LATER THIS MONTH TO IDENTIFY AREAS WHICH SHOULD BE EXAMINED WITH SOME PRIORITY.
"THE RESULTS OF THE BRAINSTORMING EXERCISE MAY TAKE THE FORM OF AN IDENTIFIED NEED FOR DETAILED STUDIES INTO CERTAIN SCIENCE AND TECHNOLOGY ISSUES, OR AN IDENTIFIED NEED FOR IMPROVEMENTS ΤΟ AN EXISTING SITUATION, OR AN IDENTIFIED NEED FOR SEEKING A SOLUTION TO A PROBLEM, OR A COMBINATION OF THESE, HE SAID.
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"IT IS OBVIOUS SOME FINANCIAL RESOURCES WILL BE REQUIRED SUPPORT THE FOLLOW-UP WORK ARISING FROM THESE IDENTIFIED NEEDS.'
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ON INDUSTRIAL DEVELOPMENT, PROF POON WELCOMED THE FINANCIAL SECRETARY'S PROPOSAL TO REDUCE THE RATE OF TAX ON CORPORATE PROFITS FROM 18 PER CENT TO 17 PER CENT, SAYING THAT THIS WOULD HELP ENCOURAGE INVESTMENT.
HOWEVER, HE WAS DISAPPOINTED THAT NO PLANS HAD BEEN MADE INCREASE THE CAPITAL ALLOWANCE FOR EXPENDITURE INCURRED PROCUREMENT OF PLANT AND MACHINERY.
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HE STRESSED THAT IT WAS IMPORTANT THAT INDUSTRY SHOULD BE ENCOURAGED TO INVEST MORE ON NEW TECHNOLOGY IN ORDER TO IMPROVE BOTH THE QUANTITY AND THE QUALITY OF PRODUCTION.
POINTING OUT THAT A HIGHER LEVEL OF CAPITAL ALLOWANCE WOULD DEFINITELY STIMULATE MORE INVESTMENT IN NEW PRODUCTION TOOLS, ESPECIALLY IN THE CASE OF SMALL AND MEDIUM SIZE INDUSTRIAL UNDERTAKINGS, PROF POON STRONGLY URGED THE FINANCIAL SECRETARY TO CONSIDER AN INCREASE IN THE CAPITAL ALLOWANCE.
HE FURTHER SUGGESTED THAT THE INCREASE SHOULD SUFFICIENTLY LARGE ONE IN ORDER TO PRODUCE THE DESIRED EFFECT.
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/PROF POON