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Freezing of fees and charges of government services

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in the motion debate on freezing of fees and charges of government services in the Legislative Council today (Wednesday):

Mr President,

This motion may be popular, but is it wise? I would urge Members to consider very carefully whether this motion constitutes sensible policy making. I would argue strongly that it does not merit Members' support.

Mr President, it would do a disservice to those who are unemployed, and to everyone affected by inflation, to give them the impression that the freezing of fees etc is an answer to their problems. Not only is it no answer at all, but perhaps more importantly, some vital principles are put under serious threat by the thinking behind this motion. Maintenance of those principles is vital to all Hong Kong citizens, whether they be in work or temporarily out of it; whether they live in public housing or elsewhere; whether they catch the train or the bus. That is why the Official Members today will oppose all the amendments, and the motion itself in whatever final form it takes. And that is why I urge all other Members of this Council to do the same. Let me explain.

Unemployment

I will deal first with the subject of unemployment. The present rate of about 3% is low by world standards but higher than the Hong Kong community has been used to in recent years. The Government is keenly aware of the community concern this has aroused.

Although the increase in unemployment is a very recent development, we have already taken some steps to try to ameliorate the situation. Honourable Members will hardly need reminding of the two recent motion debates on labour policy and the unemployment situation on 3 May and 7 June respectively. I would not wish to repeat the details that have been covered by my colleague the Secretary for Education and Manpower on those occasions. I just wish to make the point that the Administration fully appreciates that unemployment is a complex and important problem. In addressing this issue, however, we must focus our efforts in finding the right solutions that will work and be able to create long term employment in Hong Kong.

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