XN000022-1974-10-31 — Page 6

THURSDAY, OCTOBER 31, 1974.

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AVOID ALL UNNECESSARY SPENDING, SAYS MR. LI FOOK-WO

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THE HON. LI FOOK-WO TODAY URGED THE GOVERNMENT TO CONDUCT A STOCK TAKING EXERCISE ON ITS REVENUE EARNING CAPABILITY - AS IT HAD DONE ON EXPENDITURE WITH A VIEW TO IMPROVING EARNINGS.

WHILE HE WAS NOT ALARMED BY THE POSSIBLE BUDGET DEFICIT FOR THE CURRENT YEAR, HE FELT THAT MEASURES SHOULD BE TAKEN TO IMPROVE OUR REVENUE ON THE ONE HAND, AND TO TIGHTEN OR REDUCE EXPENDITURE ON THE OTHER.

IT WAS VITALLY IMPORTANT, HE STRESSED, TO IMPROVE REVENUE AS MUCH AS POSSIBLE WITHIN THE EXISTING TAX STRUCTURE. +PROJECTIONS MUST BE MADE ON THE BASIS OF OUR CURRENT FINANCIAL STRUCTURE.+

HE ADDED: +WE MUST ALSO INVESTIGATE WHAT OTHER FEASIBLE AVENUES ARE OPEN TO US, THEIR REVENUE-GENERATING CAPACITY, AND THEIR COSTS. IT IS BY LAYING DOWN THESE ALTERNATIVES AND ITEMISING THEIR FINANCIAL IMPLICATIONS THAT WE CAN HAVE A MORE ACCURATE ESTIMATION OF OUR FINANCIAL ABILITY.+

MR. LI SHARED THE GOVERNOR'S CONCERN OVER THE EXCESSIVE 20 PER CENT RATE OF INCREASE IN ANNUAL EXPENDITURE, AND STRONGLY URGED THE GOVERNMENT TO AVOID ALL UNNECESSARY SPENDING.

HOWEVER, HE APPLAUDED THE GOVERNMENT'S DETERMINATION TO FORGE AHEAD WITH ITS LONG RANGE PROGRAMMES FOR HOUSING, SOCIAL WELFARE, EDUCATION, MEDICAL AND HEALTH SERVICES AND TRANSPORT.

+THIS IS NO TIME TO RETREAT,+ HE SAID. +OUR SOCIAL COMMITMENTS MUST BE MET, NOT ONLY BECAUSE THEY ARE THE BASIC OBJECTIVES AND NECESSITIES OF OUR SOCIETY BUT ALSO BECAUSE THEY ARE THE FOUNDATION OF THE CONFIDENCE IN OUR CONTINUING PROGRESS. HE REALISED HOWEVER, THAT THE ACHIEVEMENTS WOULD DEPEND ON THE RESOURCES AVAILABLE.

MR. LI CONTINUED THAT POPULATION GROWTH WOULD HAVE A GREAT DEARING ON THE GOVERNMENT'S OBJECTIVES TO IMPROVE THE QUALITY OF LIFE FOR THE COMMUNITY, AND HE CALLED FOR A POPULATION POLICY TO BE FORMULATED FORTHWITH.

HOWEVER, HE FELT IT WOULD NOT BE ENOUGH KERELY TO PROVIDE ADEQUATE FAMILY PLANNING. FACILITIES AND THAT IT WAS TIME TO LOOK FURTHER THAN JUST POPULATION GROWTH.

COUPLED WITH THE POPULATION POLICY, HE SUGGESTED THAT A COMMISSION BE SET UP TO ENSURE THAT REALISTIC TARGETS ARE SET AND MET.

ON CORRUPTION, MR. LI REFERRED TO THE INDEPENDENT COMMISSION AGAINST CORRUPTION AS +A SOUND INVESTMENT FROM WHICH WE CAN ANTICIPATE HANDSOME DIVIDENDS IN THE FORM OF OUTSTANDING RESULTS,+

HOWEVER, HE EXPRESSED CONCERN OVER THE FACT THAT THE TOTAL COST OF THE COMMISSION WHICH IS CHARGED TO GENERAL REVENUE, WOULD FAR EXCEED ITS ORIGINAL ESTIMATES FOR THE CURRENT YEAR, AND THAT THERE HAD BEEN AN APPARENT DRAIN ON THE PERSONNEL FROM THE CIVIL SERVICE.

/MR. LI