XN000022-1971-02-24 — Page 9

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Wednesday, February 24, 1971

$2,902 MILLION IN RECURRENT REVENUE ESTIMATED FOR NEXT FINANCIAL YEAR

Not "Pessimistic" Forecast, Says Sir John

Sir John Cowperthwaite, Financial Secretary, told the Legislative

Council today the total estimate for recurrent revenue in the next financial

year was $2,902 million, or an increase of 8.7 per cent over the revised

estimate for 1970/71.

"I do not think that this can be said to be a pessimistic forecast.

Possibly the reverse might be alleged," he commented.

Earlier in his budget speech he referred to "a certain amount of

pessimistic talk this year about our economic future," though more recent

news of agreement reached with the European Economic Community on the

Generalised Preference Scheme had helped to counteract it.

Even those who were prepared to confess a maintenance of, or even

an increase in, the level of business activity had been "speaking anxiously

of rising costs and squeezed profit margins."

"I am not wholly convinced by such talk," Sir John said, "and our

estimates of recurrent revenue next year are based on the premise of a continued

high level of growth, although at a rate rather less than in the last two

years; and of course, for the Salaries and Profits Tax, it is 1970/71 experience

that is reflected in 1971/72 tax yields."

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