WEDNESDAY, APRIL 26, 1989
NOTING THAT THE BUDGET FOR THE KINDERGARTEN
FEE
ASSISTANCE
SCHEME FOR 1989-90 WAS $6.5 MILLION WHILE THE ADMINISTRATIVE COST ALREADY TOTALLED $2.64 MILLION, SHE SAID THAT IF THE GOVERNMENT WAS SINCERE ABOUT HELPING PARENTS, THEN IT SHOULD REDUCE THE BUREAUCRACY AND INCREASE THE MINIMUM LEVEL OF ASSISTANCE.
MRS FAN ALSO SAID THAT SHE AGREED WITH THE CAUTIOUS APPROACH OF THE BUDGET AS A WHOLE AND THOUGHT THAT THE TRANSFER OF $7 BILLION INTO THE DEVELOPMENT LOAN FUND TO PREPARE FOR MAJOR INFRASTRUCTURE PROJECTS WAS SENSIBLE.
WHILE SHE APPRECIATED THE DEMAND FOR GROWTH IN THE CIVIL SERVICE, SHE SAID THAT A LOOK MIGHT BE TAKEN TO SEE WHETHER THOSE SERVICES WHICH HAD BEEN PROVIDED OVER THE YEARS WERE STILL SERVING USEFUL PURPOSES.
FINANCIAL SUCCESS BRINGS ITS OWN PROBLEMS: PETER POON
THE 1989 BUDGET SHOWED THAT THE FINANCIAL SECRETARY WAS A LEVEL-HEADED PERSON WHO KNEW VERY WELL THAT HONG KONG'S FINANCIAL SUCCESS BROUGHT ITS OWN PROBLEMS AND THAT HE HAD TO CONSIDER ALL ASPECTS OF THE LOCAL ECONOMY AS WELL AS THE WORLD ECONOMY IN FORMULATING THE BUDGET PROPOSALS, THE
PETER POON SAID TODAY (WEDNESDAY).
HON
MR POON WAS SPEAKING IN THE
LEGISLATIVE
COUNCIL DURING THE
BUDGET DEBATE.
THEIR
HE NOTED THAT DESPITE THE BIG NATIONS EFFORT TO IMPROVE
+
ECONOMY, THE WORLD'S ECONOMIC ILLS HAD YET TO BE CURED. AND AFTER SIX YEARS OF ECONOMIC EXPANSION, THERE WAS BOUND TO BE A SLOWING DOWN.
HE SAID THAT HONG KONG WAS LUCKY IN THAT EXPORT GROWTH, RE-EXPORT HAD REMAINED STRONG AND GROWTH WERE ALSO SIGNIFICANT.
DESPITE A DROP IN INTERNALLY-GENERATED
OF A 8.5 PER THE LABOUR
CENT SHORTAGE OVER 10 AND
ON THE FINANCIAL SECRETARY'S ESTIMATE INFLATION RATE FOR 1989, MR POON SAID THAT WITH AND THE OVER-HEATED ECONOMY, INFLATION MIGHT TURN OUT TO PER CENT UNLESS THE RECENT SHARP INCREASES IN RENTS AND HIGH INTEREST RATES BROUGHT THE AUTOMATIC BEFORE THE END OF THE YEAR.
DOWN
COOLING-OFF
BE
WAGES ADJUSTMENT
CANNOT TIMES OF
"HOWEVER, I DO NOT FORESEE RUNAWAY INFLATION WHICH WE LIVE WITH AS WAGES IN REAL TERMS CATCH UP WITH INFLATION AT SEVERE LABOUR SHORTAGE," HE SAID.
HE SAID ANOTHER PROBLEM WHICH HONG KONG WOULD CONTINUE TO FACE IN FUTURE WAS PROTECTIONISM.
/FOR THE