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WEDNESDAY, MAY 9, 1990
"THAT IS ONE OF THE REASONS WHY WE CANNOT REFINE OUR FINANCING PLANS UNTIL MORE DETAILED DESIGNS ARE AVAILABLE AND COSTINGS HAVE BEEN CARRIED OUT.
"THE
RELATIVE REQUIREMENTS OF THE AIRPORT AUTHORITY FOR DEBT AND EQUITY, FOR EXAMPLE, WILL DEPEND ON REVISED COST AND REVENUE ESTIMATES, AND ON THE ECONOMIC AND FINANCIAL CLIMATE AT THE TIME," THE FINANCIAL SECRETARY SAID.
LESS-ADVANTAGED MEMBERS OF THE COMMUNITY HAVE BENEFITTED
THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) THAT IN GENERAL, THE LESS- ADVANTAGED MEMBERS OF OUR COMMUNITY SHOULD NOT HAVE SUFFERED A REDUCTION IN THEIR STANDARD OF LIVING OVERALL.
"THEIR WAGES HAVE INCREASED TO A GREATER EXTENT THAN THEIR CONTRIBUTION TO INDIRECT TAXES AND THE SERVICES THEY ENJOY HAVE BEEN IMPROVED, SAID THE FINANCIAL SECRETARY IN CONCLUDING THE DEBATE ON
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THE BUDGET.
NOTING THAT MANY MEMBERS TOOK HIM TO TASK OVER THE VARIOUS REVENUE MEASURES, CLAIMING THAT PEOPLE IN THE LOWER AND MIDDLE INCOME GROUPS PARTICULARLY WOULD BE SERIOUSLY AFFECTED AND THAT THEIR STANDARD OF LIVING WOULD BE ERODED.
EARNINGS IN
"THIS IGNORES, •HOWEVER, THE INCREASES IN REAL RECENT YEARS AND THE CONTINUED GROWTH IN EXPENDITURE ON GOVERNMENT SERVICES," HE REMARKED.
HE SAID THE GREAT MAJORITY OF THOSE TO WHOM MEMBERS SEEMED ΤΟ BE REFERRING WOULD NOT BE LIABLE TO SALARIES TAX, AND THEREFORE THEIR CONTRIBUTION TO GOVERNMENT REVENUES WOULD BE LIMITED TO THE PAYMENT OF INDIRECT TAXES.
"BUT IT IS PRECISELY THIS SAME GROUP WHO ARE LIKELY TO BENEFIT FROM GOVERNMENT SPENDING ON HEALTH, EDUCATION, HOUSING AND WELFARE, ALL LARGELY PAID FOR FROM GENERAL REVENUE.
"THE REVENUE MEASURES I PROPOSED ARE EXPECTED TO YIELD $3.1 BILLION IN 1990-91, WHICH WOULD NOT SUFFICE EVEN TO MEET THE PLANNED ADDITIONAL EXPENDITURE OF $3.96 BILLION ON SOCIAL SERVICES ALONE," HR SAID.
THE FINANCIAL SECRETARY SAID LOWER AND MIDDLE INCOME EARNERS WHO WERE LIABLE TO SALARIES TAX SHOULD FIND THAT THE EFFECT ON THEM OF HIS INDIRECT TAX MEASURES WERE NEUTRALISED BY THE TAX CONCESSIONS HE PROPOSED AND FROM WHICH THEY WOULD BENEFIT.
/"THE ZERO-RATING
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