XN000022-1979-03-29 — Page 15

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THURSDAY, MARCH 29, 1979

CALL FOR MORE POSITIVE APPROACH TO BUDGETTING

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THE BUDGET GIVES AMPLE EVIDENCE OF THE LATTER PART OF THE PRINCIPLE +EARN MORE, SPEND LESS, BUT HAS VERY LITTLE TO OFFER ON THE FIRST PÅRT, THE HON. S.L. CHEN SAID AT THE RESUMED BUDGET DEBATE IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY).

HE SAID ANY FAMILY, COMPANY OR NATION WOULD FIND THIS ELEMENTARY PRINCIPLE A WISE ONE TO FOLLOW.

ALTHOUGH THE PROPOSED INCREASE IN DEPRECIATION ALLOWANCE MAY IF WISELY RE-INVESTED, RESULT IN A CAPACITY TO +EARN MORE,+ THERE SHOULD BE A MORE POSITIVE APPROACH TO BUDGETTING SO THAT INSTEAD OF ALLOWING A HUGE SURPLUS TO STAGNATE, SOME OF IT, AS WELL AS THE ANTICIPATED SURPLUS FOR 1978-79, COULD BE INVESTED TO FURTHER THIS EARNING CAPACITY, MR. CHEN SAID.

HE LISTED FOUR AREAS WHERE THE GOVERNMENT INVESTMENT WOULD BE HELPFUL.

IN LAND PRODUCTION, HE THOUGHT THERE SHOULD BE A RE-THINK ON THE PRESENT POLICY OF LEAVING EVERYTHING TO THE DICTATES OF MARKET FORCES.

MORE INVESTMENT IN DEVELOPING MANPOWER RESOURCES THROUGH MANPOWER TRAINING IS NEEDED.

ALSO NEEDED IS GOVERNMENT INVESTMENT IN BUILDING

UP AN EFFICIENT INDUSTRIAL INFRASTRUCTURE.

AT PRESENT, MR. CHEN SAID, MANY GOVERNMENT SUBVENTED ORGANISATIONS FOR INDUSTRIAL PROMOTION ARE OPERATING ON A SHOE-STRING BUDGET, AND THIS DOES NOT HELP TO IMPROVE THE EFFICIENCY AND COMPETITIVENESS OF OUR INDUSTRY.

THE FOURTH WAY IN WHICH THE GOVERNMENT SHOULD HELP IS THE INTRODUCTION OF SOME FORM OF INCENTIVE TO STIMULATE EXPORT PERFORMANCE, FOR EXAMPLE, A TAX REBATE AS A REWARD FOR ACHIEVEMENT ADOPTED BY MANY EXPORTING COUNTRIES, HE SAID.

MR. CHEN WAS CONCERNED ABOUT THE INCREASE IN EXPENDITURE UNDER THE PUBLIC WORKS CAPITAL DEVELOPMENT PROGRAMME.

THE FINANCIAL SECRETARY HAD SAID THAT BECAUSE OF THE VERY SUBSTANTIAL INCREASE IN THE NEW TOWNS AND HOUSING COMPONENT OF THE EXPENDITURE, IT WOULD HAVE TO BE CONSTRAINED.

NOTWITHSTANDING THIS, THE 1979-80 ESTIMATE IS STILL 13 PER CENT HIGHER THAN THE REVISED ESTIMATE FOR 1978-79, HE SAID.

WHAT IS MORE, HE ADDED, BECAUSE OF THE LARGE INCREASE IN THE NEW TOWNS AND HOUSING COMPONENT, THE TOTAL NON-RECURRENT EXPENDITURE, AT $3,599 MILLION, WILL BE 26.5 PER CENT MORE THAN THE REVISED ESTIMATE FOR 1978-79, WHICH WAS ITSELF NEARLY 50 PER CENT OVER THAT FOR 1977-78.

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