XN000022-1977-01-21 — Page 20

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There is undoubtedly a reserve of taxability that could be

safely tapped in case of need, but because of the circumstances I

have mentioned in practice it is small in comparison to that of

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other countries. Of course. I cannot say whether present rates of

taxation can be maintained indefinitely. This depends on so many

unknown factors- but the imperative of maintaining a comparatively

low-tax fiscal system is inescapable.

+

I have heard a point of view which is to the effect that

we should have the minimum of social programmes and labour legislation,

and concentrate only on maximising profits and incomes. I am sure.

that this view is not shared by a body so responsible as the Hong

Kong General Chamber of Commerce.

The Government will proceed with its programme in all fields

methodically and prudently and within the capability of the

economy. While it must take account of normal international standards

its paramount criterion will always be what practical benefit any

measure will confer on the people of Hong Kong. While there could

be danger in doing too much too fast, or in undermining the competitive

edge of industry or the will to work of the work force, your government

will not be so foolish as to do any of these things. On the other hand,

there would be very great danger indeed in just leaving things as they

are.

I

This is no time for such faint-hearted fears. After all we

have just emerged from the darkest time Hong Kong has known for many

years. The 16 per cent growth rate in real terms confidently predicted

for the year that is ending is a remarkable achievement. This has

restored our prosperity, and the real value of wages and incomes, to

the course from which they were knocked by the succession of external

/catastrophies

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