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The surplus. Unfortunately for the proposer of the motion, we are in fact expecting a deficit. I shall not go into detail here because this is a matter more appropriately dealt with in the Budget by which time more up-to-date data will be available. Suffice to say that my predecessor when presenting the 1995-96 Budget forecast a deficit of about $2.6 billion and I have no reason at this point to think that will prove very wide of the mark. But I shall not dwell on the point: even if there were a surplus, it would not be correct to use it in the way implied by the motion.
The reserves. Yes, at about $151 billion our reserves are at a very healthy level. Yes, our public finances are in good shape. Yes, when compared with the chaos we see elsewhere in the world the Hong Kong community has every right to take pride in its prudent management of the common wealth. No, this is not the right time to fritter away an advantage so hard won.
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We have reached the enviable position we have today not by accident, but by design. The Administration has adopted a set of prudent budgetary principles and applied them steadfastly. The community at large, including this Council, has generally supported our common sense approach. Thus the Government has not pretended it can be all things to all men, making extravagant promises leaving future generations to pick up the bill. Rather we have attempted with the advice of this Council to prioritise so as to meet the aspirations of the community without breaching the fundamental guideline of living within our means. The International Monetary Fund has recently conducted one of its regular inspections, and once again Hong Kong has passed with flying colours. Their advice on this point exactly matches. my own inclinations: Our reserves are there for rainy days, not for cloudy periods.
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The Secretary for Transport and the Secretary for Economic Services have pointed to our good fortune in enjoying basically reliable and affordable utility and transport services. Flick the switch, electricity. Turn the tap, fresh water. Pick up the phone, a dialling tone and the ability to call anywhere in the world. Set out to travel, a wide range of reasonably efficient modes. Hong Kong citizens take these and other services for granted and long may they continue to do so. Yet many communities in the region do not have them. Why is this? I urge Members to pause to reflect for a moment on what it is that makes these services work. As with our public finances, this is not an accident. It is the result of a sensible partnership between the public and private sector. The Administration, acting on behalf of the public. provides the framework. Private companies provide the services. The result has generally been reasonable prices paid by the consumer and a reasonable profit earned by the investor.