XN000022-1981-10-29 — Page 12

THURSDAY, OCTOBER 29, 1981

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PRAISE FOR GOVERNMENT'S +PRAGMATIC APPROACH

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THE HON WILLIAM BROWN PAID TRIBUTE TO THE GOVERNMENT FOR +TRANSLATING OPTIMISM INTO A PRAGMATIC APPROACH+ TOWARDS CURRENT ECONOMIC CONDITIONS.

SPEAKING AT THE LEGISLAT VE COUNCIL TODAY, MR BROWN NOTED THAT HONG KONG'S DEPENDENCE ON EXTERNAL FACTORS REQUIRES CONSTANT EMPHASIS.

+I AM SURE WE CAN CONTINUE TO RELY ON GOVERNMENT REFUSING TO PUSH THE 'PANIC BUTTON" WHENEVER OUR ECONOMIC INDICATORS GYRATE IN SYMPATHY WITH EVENTS LARGELY OUTSIDE OUR CONTROL.

+AVOIDANCE OF PRECIPITATE ACTION IN SUCH CIRCUMSTANCES DOES NOT IMPLY THAT NOTHING AT ALL CAN BE DONE AND IT MUST BE CORRECT THAT THE PRIVATE SECTOR, FOR ITS PART, IS UNDER A DUTY TO DEMONSTRATE IT POSSESSES THE WISDOM TO MANAGE ITS AFFAIRS IN THE INTERESTS OF THE WHOLE COMMUNITY IN RETURN FOR GOVERNMENT'S COMMITMENT TO AS LITTLE INTERVENTION AS POSSIBLE IN OUR FREE ECONOMY.+

HOWEVER, MR BROWN ADDED, THE PUBLIC SECTOR SHOULD ALSO KEEP THIS ADMONITION IN MIND.

HE SAID IN SOME AREAS IT MUST ENSURE THAT THE PROTECTION OF ITS OWN SECTIONAL INTERESTS DOES NOT RUN CONTRARY TO THE COMMON GOOD.

IN PARTICULAR, RESTRAINT SHOULD BE EXERCISED IN REGARD TO FUTURE PAY AWARDS, THEIR TIMING AND THE METHOD BY WHICH THEY ARE DETERMINED.

+WE HAVE AN EXCELLENT CIVIL SERVICE THAT SERVES US WELL, AND IT IS IN THE COMMON INTEREST THAT IT SHOULD BE GENEROUSLY REWARDED.

+HOWEVER, IN TIMES OF ECONOMIC HARDSHIP FOR MANY OF OUR COMMUNITY WE MUST GUARD AGAINST TOO BIG A GAP EMERGING BETWEEN ANY OF ITS COMPONENT SECTORS - BE THEY PRIVATE OR PUBLIC, HE WARNED.

REFERRING TO MONETARY STATISTICS AND THE RELATIVE SIZE OF PUBLIC SECTOR EXPENDITURE, MR BROWN DREW ATTENTION TO THE DANGER OF BECOMING OBSESSED BY SUCH STATISTICS AND WARNED THAT EXTREME CARE WAS NEEDED IN THE IR INTERPRETATION. THERE WAS A NEED TO AVOID SEEKING SOLUTIONS TO PROBLEMS WHICH DO NOT EXIST, OR AT LEAST DO NOT EXIST TO THE EXTENT OR IN THE FORM OF POPULAR BELIEF, HE SAID.

/ EXPRESSING RESPECT