11
WEDNESDAY, MARCH 3, 1993
"BECAUSE THESE BONDS ARE
-
PRIMARILY AIMED AT MARKET
NOW DEVELOPMENT
CLEARLY WITH OUR PRESENT STRONG FISCAL POSITION, WE CURRENTLY HAVE NO NEED TO BORROW FOR CAPITAL EXPENDITURE PURPOSES.
"I BELIEVE THAT IT IS DESIRABLE FOR THE NEW HONG KONG MONETARY AUTHORITY TO TAKE OVER RESPONSIBILITY FOR THE FINANCIAL ACCOUNTING, AND HAVE THE PROCEEDS OF THE BOND ISSUES TAKEN INTO THE EXCHANGE FUND RATHER THAN THE CAPITAL WORKS RESERVE FUND.
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HE SAID CONSIDERATION WAS BEING GIVEN TO HOW THIS COULD BEST BE ACHIEVED WITHOUT AFFECTING THE BOND PROGRAMME.
"BUT FOR THE PURPOSES OF THE MEDIUM RANGE FORECAST (AND THE 1993/94 ESTIMATES), I HAVE ASSUMED THAT SUCH REVISED ARRANGEMENTS WILL APPLY IN 1993/94.
"
ON PROTECTING THE PUBLIC, A KEY ISSUE FOR BOTH THE GOVERNMENT AND THE FINANCIAL SERVICES INDUSTRY IS HOW TO STRIKE THE RIGHT BALANCE BETWEEN MARKET FORCES AND THE PROTECTION OF THE CONSUMER.
"WE HAVE TRADITIONALLY RELIED IN MANY AREAS ON SELF-REGULATION AS THE BEST WAY TO PROTECT THE PUBLIC WITHOUT EXCESSIVE GOVERNMENT INTERFERENCE. BUT LEGISLATION HAS ITS PART TO PLAY IN ACHIEVING
RIGHT BALANCE."
THE
OVER THE NEXT YEAR, MR MACLEOD SAID THE GOVERNMENT SHOULD BE TAKING TWO IMPORTANT STEPS TO ENHANCE CONSUMER PROTECTION:
FIRST, TO STRENGTHEN THE INSURANCE AUTHORITY, THE GOVERNMENT WILL PRESENT LEGISLATION WHICH, AMONG OTHER THINGS, WILL PROVIDE EARLIER WARNING OF POTENTIAL DIFFICULTIES AND IMPOSE TIGHTER CAPITAL REQUIREMENTS ON THE INDUSTRY.
SECONDLY, ΤΟ REGULATE VOLUNTARY RETIREMENT SCHEMES, THE GOVERNMENT WILL BRING INTO EFFECT THE OCCUPATIONAL RETIREMENT SCHEMES ORDINANCE BY THE MIDDLE OF THIS YEAR.
THIS WILL PROVIDE GREATER PROTECTION FOR EMPLOYEES MEMBERS OF SUCH SCHEMES, HE SAID.
WHO ARE
"THESE MEASURES HAVE BEEN CAREFULLY JUDGED TO GIVE PROTECTION TO THE PUBLIC WITHOUT IMPAIRING BUSINESS GROWTH."
IN FACT, THE MEASURES WILL ENHANCE THE QUALITY OF THE PRODUCTS AND EXPAND THEIR MARKET, HE ADDED.
MR MACLEOD SAID THE DEVELOPMENT OF A MORE EFFECTIVE REGULATORY FRAMEWORK FOR THOSE WHO BOUGHT INSURANCE POLICIES AND CONTRIBUTE ΤΟ RETIREMENT SCHEMES WOULD ENCOURAGE THE COMMUNITY ΤΟ HAVE GREATER CONFIDENCE IN THE INTEGRITY OF THESE PRODUCTS.
ON MARKET FORCES, HE EMPHASISED THAT THE GOVERNMENT, LIKE THE COMMUNITY AT LARGE, CONTINUED TO BELIEVE THAT COMPETITION AND THE MARKET WERE THE BEST ALLIES OF THE CONSUMER, AND THE BEST WAYS ΤΟ MAXIMISE EFFICIENCY AND AVOID UNFAIR PRICING.
/"I BELIEVE