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THURSDAY, APRIL 26, 1990
THIS WOULD DEPRIVE THE LEGISLATURE OF ITS PRINCIPAL TASK OF ENSURING THE PROPER USAGE OF PUBLIC FUNDS, HE NOTED.
MR CHEONG URGED THE GOVERNMENT TO MAKE IT CLEAR TO THE HONG KONG PEOPLE THAT THIS WAS NOT THE INTENTION OF BRITAIN AND CHINA.
HE STRESSED THE NEED FOR A MORE OPEN GOVERNMENT UNDER THE PRESENT CLIMATE.
"IF THE GOVERNMENT EXPECTS HONG KONG PEOPLE TO TRUST THEM, THEY SHOULD FIRST TAKE THE PEOPLE INTO THEIR TRUST. THIS MEANS IN THE FIRST INSTANCE THAT PEOPLE SHOULD BE TOLD AS MUCH AS POSSIBLE, HE SAID.
MR CHEONG'S OTHER WORRY WAS THE LONG-TERM INFLATIONARY AND UNSETTLING EFFECTS BROUGHT ABOUT BY THE RECENT SPATE OF WAGE AND PRICE HIKES. HE FEARED THAT THIS WOULD PROVOKE MORE FRUSTRATIONS IN THE COMMUNITY, RESULTING IN A HIGHER RATE OF EMIGRATION AND TENSE LABOUR-MANAGEMENT RELATIONS.
HE CAUTIONED THAT THE LATEST SALARY RISE FOR THE PUBLIC SERVICE WOULD STIMULATE HIGHER PAY DEMANDS IN THE PRIVATE SECTOR AND SPARK OFF AN ENDLESS SPIRAL OF WAGE INCREASES.
"PERHAPS GOVERNMENT SHOULD REVIEW THE PAY TREND SURVEY AND TRY TO ADOPT A MORE REALISTIC SAMPLE IN FEELING THE PULSE VARIOUS SECTORS OF THE ECONOMY, " HE SAID.
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HE ALSO ADVISED LABOUR LEADERS TO BE MINDFUL OF THE LONG-TERM DETRIMENTAL EFFECTS OF EXCESSIVE WAGE DEMANDS.
HE WARNED THAT CURRENT INDICATIONS WERE SUCH THAT HONG KONG WAS RUNNING A GREAT RISK OF PRICING ITSELF OUT OF THE MARKET.
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"WE ARE ESPECIALLY VULNERABLE BECAUSE WE HAVE ΤΟ COMPETE IN THE WORLD MARKETS IN BOTH PRODUCTS AS WELL AS SERVICES," MR CHEONG SAID.
HE REMINDED THE GOVERNMENT THAT NO ECONOMY COULD SUSTAIN LONG TERM PROGRESS WITHOUT ADEQUATE SUPPLY OF RESOURCES, FINANCIAL, INFRASTRUCTURAL OR HUMAN; AND THAT PROLONGED SHORTAGE OF HUMAN RESOURCES IN HONG KONG WAS ALREADY TAKING ITS TOLL.
LATE,
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"SOMETHING NEEDS TO BE DONE BEFORE IT IS TOO
HE SAID, AND URGED THE GOVERNMENT TO URGENTLY REVIEW THE NEED FOR MEASURES WHICH COULD EFFECTIVELY COMBAT THE ILL-EFFECTS OF SUCH PROLONGED SHORTAGE.
TURNING TO TAXATION, MR CHEONG WAS ADAMANT THAT HONG KONG SHOULD CONTINUE TO UPHOLD A LOW TAX POLICY IN ORDER TO MAINTAIN A FAVOURABLE ECONOMIC AND BUSINESS ENVIRONMENT IN THE RUN-UP TO 1997.
HE THEREFORE URGED THAT ALL EXISTING RESOURCES BE FULLY EXPLORED BEFORE PURSUING THE IDEA OF A SALES TAX WHICH WOULD BE RETROGRESSIVE AND WOULD HURT THE ORDINARY PEOPLE.
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