4
Budget consultation needs mutual trust and understanding
The Financial Secretary, the Hon Sir Hamish Macleod, said consultation with China on the preparation of the 1997-98 Budget could only be achieved successfully through mutual trust and understanding.
"We start this exercise in a spirit of sincerity and goodwill," he said in his speech to conclude the debate on the 1995-96 Budget.
Sir Hamish said he was pleased to note the broad support for the proposal to co-operate fully with the Chinese side on the 1997-98 Budget.
He said he believed consultation on this transitional budget was entirely compatible with preserving the autonomy which the Special Administrative Region Government had in such matters under the Basic Law, but the Government must be very careful not to do anything which might weaken that autonomy.
The expert group provides a forum in which the Government can consult on the budget for 1997-98, with the aim of ensuring that public services will continue through the transfer of sovereignty without interruption.
During the preceding year, the team will be given ample opportunity to observe the budgetary and resource allocation processes to help them understand the system.
"We are entirely relaxed about the possible involvement of the Chief Executive-designate in the process, as suggested by some members.
said.
"No doubt this and other matters can be resolved in the experts' discussions," he
End/Wednesday, March 29, 1995