XN000022-1975-03-20 — Page 6

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THURSDAY, MARCH 20, 1975

TURNING TO HOUSING, MR. CHEONG-LEEN ASKED FOR AN ASSURANCE THAT THERE WOULD BE NO ŠLACKENING OF THE PACE TO PROVIDE DECENT PUBLIC HOUSING AT ECONOMIC RENTS FOR THE LARGE NUMBER OF PEOPLE WHO HAVE BEEN ON THE WAITING LIST FOR MANY YEARS.

HE ALSO EXPRESSED CONCERN OVER HOUSING FOR MIDDLE-INCOME GROUPS.

THE GOVERNMENT, HE SUGGESTED, SHOULD ENCOURAGE THE BANKING COMMUNITY TO MAKE MORE LOANS AVAILABLE TO REAL ESTATE DEVELOPERS AT LOW INTEREST RATES TO HELP REVIVE THEIR PROGRAMME OF BUILDING MEDIUM AND SMALL DOMESTIC FLATS.

IN ORDER TO STIMULATE MORE HOME OWNERSHIP, THE GOVERNMENT SHOULD ASSIST THE HONG KONG DUILDING AND LOAN AGENCY TO FIND MORE

· FUNDS TO ENABLE FAMILIES TO BUY THEIR OWN HOMES.

REFERRING TO THE CIVIL SERVICE, MR. CHEONG-LEEN URGED THE GOVERNMENT TO REVIEW ITS PAY STRUCTURE TO SEE WHETHER IN TODAY'S CIRCUMSTANCES, THE PUBLIC IS GETTING THE BEST VALUE FOR MONEY IN TERMS OF EFFICIENT PERFORMANCE AND HIGHER PRODUCTIVITY DOTH AT THE DEPARTMENTAL AS WELL AS THE INDIVIDUAL LEVEL.*

THE MCKINSEY REPORT HAD RECOMMENDED THE SETTING UP OF ANNUAL OPERATING PLANS FOR ALL DEPARTMENTS, HE NOTED, BUT UNFORTUNATELY THIS WAS STILL FAR AWAY FROM IMPLEMENTATION.

HE SUGGESTED THAT THE FINANCIAL SECRETARY SHOULD, AS PART OF HIS BUDGETARY STRATEGY FOR THE NEXT THREE YEARS, PRESS FOR GREATER PRODUCTIVITY IN THE CIVIL SERVICE AND TO PROGRESSIVELY ADJUST CIVIL SERVICE EMOLUMENTS FROM 30 TO 30 PERCENT OF TOTAL RECURRENT PROVISION.

ON THE MASS TRANSIT RAILWAY PROJECT, MR. CHEONG-LEEN SAID THAT MANY PEOPLE WERE NOT CONVINCED OF THE NECESSITY TO BUILD SUCH A RAILWAY AT TIMES LIKE THESE, NOR WERE THEY CONVINCED THAT THE GOVERNMENT COULD KEEP WITHIN THE REVISED ESTIMATED COST CEILINGS IN THE CONSTRUCTION OF THE PROJECT.

HE FELT THAT A FULL AND CLEAR STATEMENT ON THE NECESSITY AND FINANCING OF THE RAILWAY WOULD GO A LONG WAY TOWARDS DISPELLING SUCH MISGIVINGS.

ON THIS YEAR'S DEFICIT BUDGET, WHICH HE DESCRIBED AS A SIGNIFICANT DEPARTURE FROM PREVIOUS TRADITION AND PRINCIPLE, MR. CHEONG-LEEN WONDERED WHETHER THIS STRATEGY WOULD BE FOLLOWED FOR THE NEXT THREE TO FIVE YEARS.

SHOULD IT BE THE CASE, HE SAID, THE GOVERNMENT SHOULD BUILD UP ITS FISCAL RESERVE POSITION TO A ̈‍÷MORE RESPECTABLE LEVEL+ IN RELATION TO ITS ANNUAL ESTIMATED EXPENDITURE AND ENSURE THAT LOAN FINANCE FOR CAPITAL EXPENDITURE SHOULD BE LIMITED TO THE GOVERNMENT'S CAPACITY TO SERVE SUCH LOANS.

AT THE SAME TIME, HE ADDED THE FINANCIAL SECRETARY SHOULD ENSURE THAT THE DEFICIT AMOUNTS INDICATED. IN ANNUAL +DEFICIT BUDGETS WOULD NOT BE EXCEEDED.

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