XN000022-1982-02-24 — Page 24

WEDNESDAY, FEBRUARY 24, 1982

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WHILE FOR YEARS IT HAD BEEN ARGUED IN HONG KONG THAT IN NORMAL CIRCUMSTANCES TAXATION SHOULD BE FISCAL IN NATURE THERE MIGHT HAVE TO BE EXCEPTIONS. HIGHER TAXES ON MOTOR VEHICLES AND DUTIES ON PETROL WERE POSSIBLE EXAMPLES.

+THERE ARE OTHERS. COMMON SENSE IN SUCH CASES MAY INDICATE THAT THE GOVERNMENT SHOULD CONSIDER NOT ONLY ITS FISCAL REQUIRE- MENTS BUT ALSO THE POTENTIAL OF TAXATION AS A SUPPLEMENTARY MEANS OF ACHIEVING OTHER POLICY ENDS,+ HE SAID.

ECONOMIC AND SOCIAL POLICIES OUTLINED ***

THE IMPORTANCE OF THE HEALTHY AND GROWING ECONOMIC RELATIONSHIP BETWEEN HONG KONG AND CHINA AND A POLICY DIRECTED TOWARDS THE SURVIVAL OF THE FITTEST ARE THE TWO MAIN THEMES WHICH UNDERLINE GOVERNMENT'S ECONOMIC, FISCAL AND MONETARY POLICIES.

IN HIS BUDGET SPEECH TODAY, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE, SAID WE IN HONG KONG ADMIRE THE PROGRESS WHICH CHINA HAS MADE IN MODERNISING HER ECONOMY AND WE ARE A BENEFICIARY, AND AT THE SAME TIME ARE FORTUNATELY PLACED IN BEING ABLE TO CONTRIBUTE TO THE PROGRESS.

HE SAID THE GOVERNMENT'S GENERAL POLICIES MUST REFLECT THIS OPPORTUNITY FOR MUTUAL BENEFIT - AND NOT LEAST TOWARDS THE SPECIAL ECONOMIC ZONE JUST NORTH OF THE BORDER.

SECOND, OUR ENTREPRENEURS AND INDUSTRIALISTS ARE NIMBLE ON THEIR FEET, ADEPT AT SEEKING AND TURNING TO GOOD ACCOUNT NEW OPPORTUNITIES MOTIVATED BY THE PROFITS THAT ARISE FROM FREE MARKETS OPEN TO ALL THE TALENTS, AND UNFETTERED BY HEAVY TAXATION.

THEY ARE WELL SERVED BY OUR LABOUR FORCE, WHICH ALSO IS HARD WORKING AND HIGHLY MOTIVATED, THUS IN OUR BUSINESS COMMUNITY THE SUCCESSFUL PROSPER.

MR BREMRIDGE SAID THE UNSUCCESSFUL ARE NOT CARRIED BY GOVERNMENT SUBSIDY. AS A COMMUNITY WE CANNOT AFFORD TO CARRY INDUSTRIAL OR COMMERCIAL FAILURES, HE SAID.

IN SHARP CONTRAST, HOWEVER, WE SET A NET OF SOCIAL SERVICES TO CATCH THOSE INDIVIDUAL CITIZENS WHO THROUGH MISFORTUNE OR DISABILITY CANNOT MAKE THEIR FAIR WAY IN SOCIETY.

+IT SHOULD BE CLEARLY UNDERSTOOD THAT THE WHOLE LONG-TERM PURPOSE OF OUR POLICY OF THE ENCOURAGEMENT OF THE CREATION OF WEALTH IS NOT TO ENABLE THE RICH TO GET RICHER BUT RATHER TO ACHIEVE AN IMPROVING STANDARD OF LIFE IN ALL ITS ASPECTS FOR THE WHOLE COMMUNITY, HE SAID.

MR BREMRIDGE ALSO SAID THE GOVERNMENT MUST CONTINUALLY SEEK TO STRENGTHEN THE BASIC INFRASTRUCTURE THAT IS NEEDED TO SUPPORT A MANUFACTURING AND SERVICES-BASED ECONOMY THAT IS ALWAYS DEVELOPING AND CHANGING.

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