28
WEDNESDAY, MARCH 1, 1989
POSITION то ANNOUNCE DETAILS OF THE
HE SAID.
"I HOPE TU BE IN A ARRANGEMENTS IN THE NOT TOO DISTANT FUTURE,
GROWING
INTEREST
IN
MR JACOBS ALSO NOTED THAT THERE HAD BEEN USE OF VENTURE HONG KONG IN THE
CAPITAL, WHICH WAS A FORM OF IN NEW FINANCING WHEREBY VENTURE CAPITALISTS MADE EQUITY INVESTMENTS BUSINESS WITH GROWTH POTENTIAL.
TO THE MAJOR RETURN DISPOSED OF HIS INVESTMENT.
THE VENTURE CAPITALIST AROSE WHEN HE
MR JACOBS SAID THAT ONE OF THE RESTRICTIONS ON THE GROWTH OF VENTURE CAPITAL FINANCING IN HONG KONG WAS SAID TO BE THE UNCERTAINTY WHICH AT PRESENT EXISTED AS ΤΟ WHETHER
ON PROFITS ARISING DISINVESTMENT WERE LIABLE TO PROFITS TAX.
IN SOME JURISDICTIONS THE PROBLEM HAD BEEN RESOLVED BY COMPLEX LEGISLATION.
"I AM ALWAYS WARY OF COMPLICATING OUR TAX SYSTEM UNNECESSARILY BUT I AM, NEVERTHELESS, GIVING THIS MATTER CAREFUL CONSIDERATION IN ORDER TO ASSESS WHETHER A SUITABLE CONCESSION WOULD BE HELPFUL TO THE FURTHER DEVELOPMENT OF INDUSTRY IN HONG KONG," HE SAID.
BUDGET MEETS OUR CHALLENGES
JACOBS, BELIEVED
THAT
THE FINANCIAL SECRETARY, THE HON PIERS
RECONCILING THE THIS YEAR'S BUDGET SUCCESSFULLY MET THE CHALLENGE OF
то CONFLICTING PRESSURES OF INFLATION, BUDGET SURPLUSES, AND THE NEED PROVIDE FOR MAJOR INFRASTRUCTURAL REQUIREMENTS.
COUNCIL TODAY
SUMMING UP HIS BUDGET SPEECH TO THE LEGISLATIVE I WEDNESDAY), MR JACOBS SAID BECAUSE THE SITUATION WAS COMPLEX, IT MORE IMPORTANT THAN EVER FOR HIM TO EXPLAIN THE PRECISE NATURE OF PROBLEMS FACED AND THE RATIONALE BEHIND HIS PROPOSALS.
WAS
THE
ON INFLATION, HE POINTED OUT THAT INCREASED PUBLIC EXPENDITURE IN PRESENT CIRCUMSTANCES RAN THE RISK OF FUELLING INFLATION.
CAN "TAX CONCESSIONS
HAVE THE SAME EFFECT. I COULD NOT, COULD DAMAGE HOWEVER, RULE OUT ALL EXPENDITURE INCREASES. SINCE THAT OUR FUTURE ECONOMIC GROWTH AND THE WELL BEING OF OUR COMMUNITY.
"NEITHER COULD I RULE OUT ALL TAX CONCESSIONS, WHEN CLEARLY EXPECTATIONS OF SOME THE SIZE OF THE BUDGET SURPLUS LEADS TO STRONG REDUCTION IN TAX RATES.
"MY PROPOSALS