XN000022-1981-03-26 — Page 15

THURSDAY, MARCH 26, 1981

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HE NOTED THE FINANCIAL SECRETARY HAS REFERRED IN HIS BUDGET SPEECH TO +PRESENT DAY REALITIES+ AS CRITERIA FOR AMENDING LEGISLATION, AND ALSO TO THE NEED FOR RESPECT TO BE PAID TO THE TWIN CONCEPTS OF THE MARKET DISCIPLINED ECONOMY AND THE FREE ENTERPRISE SYSTEM.+

+HOWEVER, THE SPATE OF PROPOSED NEW OR AMENDED LEGISLATION INVOLVING VARIOUS FORMS OF GOVERNMENT INTERVENTION IN THE FINANCIAL AND SECURITIES MARKETS THAT WAS FORESHADOWED IN THE BUDGET SPEECH AND ANNOUNCED SHORTLY THEREAFTER APPEARS TO RUN CONTRARY TO THIS PHILOSOPHY.

+WHETHER JUSTIFIED OR NOT, THIS HAS GIVEN RISE TO UNCERTAINTY AS TO THE GOVERNMENT'S TRUE MOTIVES AND OBJECTIVES - A FEAR OF THE UNKNOWN AND A FEELING OF WHERE WILL IT ALL END?' - THAT COULD BE DAMAGING TO HONG KONG IF ALLOWED TO DEVELOP UNCHECKED, + MR NEWBIGGING SAID.

CONCERN OVER RAPID GROWTH RATE

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THE HON WILLIAM BROWN EXPRESSED CONCERN IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY) ABOUT THE RAPID GROWTH RATE OF THE PUBLIC SECTOR AND THE CIVIL SERVICE AND WARNED THAT ANY SIGNIFICANT 'NCREASE IN BOTH AREAS MUST BE AVOIDED.

HE SAID THE FACT THAT WE HAVE A DYNAMIC AND SUCCESSFUL ECONOMY +CAME ACROSS LOUD AND CLEAR+.

+BUT THIS WAS ACCOMPANIED BY THE PICTURE OF AN ECONOMY OF GROWING COMPLEXITY WITH A CIVIL SERVICE RAPIDLY EXPANDING, IN BOTH SIZE AND COST, TO ADMINISTER A PUBLIC SECTOR UTILISING AN EVER INCREASING PROPORTION OF THE COMMUNITY'S RESOURCES,+ HE SAID.

QUOTING STATISTICS FROM SIR PHILIP'S BUDGET SPEECH, MR BROWN NOTED THAT THE RELATIVE SIZE OF THE PUBLIC SECTOR WOULD HAVE INCREASED FROM 16.2 PER CENT IN 1975 TO 22.4 PER CENT IN 1981.

AND IF EXPENDITURE IS ALLOWED TO GROW AT THE 10 PER CENT GUIDELINE RATE, THIS PERCENTAGE WILL HAVE INCREASED TO THE UNACCEPTABLE LEVEL OF 24 PER CENT BY 1984-85.

+WHEN PRESENTING THESE STATISTICS THE FINANCIAL SECRETARY SOUNDED A NOTE OF WARNING WHICH WE WOULD DO WELL TO HEED.

+WHILST | AGREE WITH HIM THAT OUR ECONOMY CAN SUSTAIN A PUBLIC SECTOR AT ITS PRESENT SIZE, I ALSO SHARE HIS BELIEF THAT ANY SIGNIFICANT INCREASE MUST BE AVOIDED AND, OUR AFFAIRS MUST BE ARRANGED ACCORDINGLY.+

TURNING TO THE GROWTH OF THE CIVIL SERVICE, HE POINTED OUT THAT THE PERSONAL EMOLUMENTS FORECAST AT $5 271 MILLION TO COVER AN APPROVED ESTABLISHMENT OF 125 831 POSTS ARE VERY SUBSTANTIAL FIGURES, NOTWITHSTAND ING THAT THE TOTAL COST REPRESENTS, AT 36 PER CENT OF RECURRENT EXPENDITURE, A REDUCTION ON THE HISTORICAL RATIO OF 40 PER CENT+.

HE SAID