XN000022-1976-10-27 — Page 16

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WEDNESDAY, OCTOBER 27, 1976

BALANCE BETWEEN ECONOMIC DEVELOPMENT

AND FINANCIAL EXPENDITURE

*****

THE PROBLEM FACING US IN THE FUTURE IS ONE OF STRIKING THE RIGHT BALANCE BETWEEN THE PACE OF ECONOMIC DEVELOPMENT AND THE PACE OF FINANCIAL EXPENDITURE, THE HON. Q.W. LEE SAID IN THE LEGISLATIVE COUNCIL TODAY.

ADMITTING THAT IT WAS NOT ALWAYS POSSIBLE TO STRIKE

THE PERFECT BALANCE, HE SAID, BEARING IN MIND THAT SOCIAL EXPENDITURE IS OUR INVESTMENT FOR THE FUTURE AND

WILL YIELD DIVIDENDS, IT IS A BETTER POLICY TO ATTEMPT TO DO MORE THAN LESS, PROVIDED IT IS WITHIN OUR MEANS TO DO SO.+

HOWEVER, MR. LEE WAS OF THE OPINION THAT THE COMMUNITY COULD CONFIDENTLY DEPEND ON THE VERY CAREFULLY AND EFFECTIVE CONSTITUTIONAL AND ADMINISTRATIVE SYSTEMS TO DECIDE WHAT THE PRIORITIES WERE IN THE BEST INTERESTS OF HONG KONG AND ITS PEOPLE.

LOOKING BACK ON WHAT WE HAD ACHIEVED IN THE PAST YEARS, MR. LEE NOTED THAT THERE WERE TWO SCHOOLS OF THOUGHTS - SOME FEARED THAT WE MIGHT GO TOO FAR IN OUR SOCIAL PROGRESS AND THOSE WHO FELT THAT WE HAD NOT GONE FAR ENOUGH.

TO THE FIRST GROUP, HE SUGGESTED THAT THEY MIGHT FIND COMFORT WHEN COMPARING OUR ECONOMIC AND FINANCIAL GROWTH IN THE FOUR YEARS 1972 TO 1976.

+ THE FIGURES SHOW THAT EVEN ON A LARGER BASE THE GROWTH WAS BIGGER THAN THAT IN THE IMMEDIATE PRECEDING FOUR-YEAR PERIOD, + HE SAID.

IN THESE FOUR YEARS, MR. LEE POINTED OUT, THERE WERE SIGNIFICANT INCREASES IN THE GROSS DOMESTIC PRODUCT AND EXTERNAL TRADE, DEPOSITS IN BANKS AND REVENUE COLLECTED FROM SALARIES TAX.

TO THOSE WHO FELT THAT WE HAD NOT GONE FAR ENOUGH, MR. LEE CITED THE EXPANSION IN HOUSING, EDUCATION, MEDICAL AND HEALTH SERVICES AND SOCIAL WELFARE AS EVIDENCE OF ACHIEVEMENTS IN THE PAST FOUR YEARS DESPITE THE RECESSION.

HE BELIEVED THESE WERE JUST A FEW INDICATORS TO SHOW THAT FIRSTLY, WE HAD THE CAPACITY TO FINANCE OUR SOCIAL SERVICES AND SECONDLY, CONSIDERABLE SOCIAL PROGRESS HAD IN FACT TAKEN PLACE IN THE PAST YEARS.

LOOKING AHEAD TO 1977 AND BEYOND MR. LEE SAID THAT IT WAS AN IMPORTANT DUTY FOR THE GOVERNMENT TO PROTECT THE INDUSTRY'S ACCESS TO OVERSEAS MARKETS.

HE ALSO RAISED THE QUESTIONS AS TO WHETHER THE GOVERNMENT HAD TAKEN ANY ACTION TO STRENGTHEN THE ESTABLISHMENT AND ORGANISATION OF THE COMMERCE AND INDUSTRY DEPARTMENT +TO ENABLE IT TO CARRY OUT ITS INCREASINGLY COMPLICATED AND VITAL FUNCTIONS+ AND TO ACCORD THE DIRECTOR OF THE DEPARTMENT THE APPROPRIATE TITLE OF SECRETARY SO AS TO BE IN LINE WITH THE STATUS OF HIS COUNTERPARTS IN THE COUNTRIES OF OUR. OVERSEAS MARKETS.

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