XN000022-1982-02-24 — Page 29

WEDNESDAY, FEBRUARY 24, 1982

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TELEVISION TALK ON BUDGET

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THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE, SPOKE ON THE 1982/83 BUDGET IN A TELEVISION BROADCAST THIS (WEDNESDAY) EVENING.

THE FOLLOWING IS THE FULL TEXT OF HIS TALK:

GOOD EVENING,

+ I WANT TO TELL YOU BRIEFLY ABOUT THE BUDGET FOR 1982/83 WHICH I INTRODUCED INTO THE LEGISLATIVE COUNCIL THIS AFTERNOON.

+1981 WAS MARKED BY THE STILL CONTINUING RECESSION IN OUR MAIN OVERSEAS MARKETS. IT IS GOOD, THEREFORE, THAT IN REAL TERMS OUR DOMESTIC EXPORTS INCREASED BY 7.6 PER CENT, RE-EXPORTS BY 24 PER CENT, AND THUS TOTAL EXPORTS BY 12 PER CENT. OUR ECONOMY GREW AGAIN IN REAL TERMS BY 10 PER CENT. UNEMPLOYMENT WAS FALLING, AND REAL WAGES WERE BEGINNING TO MOVE UP. NEVERTHELESS, I AM CONCERNED AT THE CURRENT LEVEL OF INFLATION WHICH BASED ON CONSUMER PRICE INDICES IS 15 PER CENT.

+I BELIEVE THAT THIS BACKGROUND REFLECTS TWO MAIN THEMES. FIRST IS THE IMPORTANCE OF THE HEALTHY AND GROWING RELATIONSHIP BETWEEN HONG KONG AND CHINA. OUR GENERAL POLICIES MUST REFLECT THE OPPORTUNITY FOR MUTUAL BENEFIT, AND NOT LEAST TOWARDS THE SPECIAL ECONOMIC ZONE JUST NORTH OF OUR BORDER. SECOND, OUR ENTREPRENEURS, INDUSTRIALISTS AND THE LABOUR FORCE NEED TO CONTINUE TO BE WELL MOTIVATED AND UNFETTERED BY HEAVY TAXATION. IN OUR COMMUNITY THE SUCCESSFUL PROSPER. THE UNSUCCESSFUL ARE NOT CARRIED BY GOVERNMENT SUBSIDY. WE CANNOT LET OUR HEARTS RULE OUR HEADS.

+IN SHARP CONTRAST HOWEVER WE SET A NET OF SOCIAL SERVICES TO CATCH THOSE INDIVIDUAL CITIZENS WHO CANNOT MAKE THEIR FAIR WAY

IN SOCIETY. THE WHOLE LONG-TERM PURPOSE OF OUR POLICY IS NOT TO ENABLE THE RICH TO GET RICHER BUT TO ACHIEVE AN IMPROVING STANDARD OF LIFE IN ALL ITS ASPECTS FOR THE WHOLE COMMUNITY. BUT WE MUST FIRST HAVE MONEY BEFORE WE CAN ARGUE HOW BEST TO SPEND IT.

+1 AM CONCERNED ABOUT THE SIZE OF THE PUBLIC SECTOR, AND I AM DETERMINED TO CUT BACK ITS GROWTH APPROXIMATELY TO THE LEVEL OF THE GROWTH OF THE ECONOMY. PUT SIMPLY GOVERNMENT EXPENDITURE REQUIRES USE OF RESOURCES WHICH MIGHT OTHERWISE BE BETTER USED BY THE PRIVATE SECTOR INCLUDING IN PARTICULAR THE PRODUCTION OF THOSE EXPORTS ON WHICH HONG KONG DEPENDS. A GOOD GOVERNMENT MUST THEREFORE EXERCISE THRIFT AT ALL TIMES, AND ON THE WHOLE LESS GOVERNMENT TENDS TO BE MORE EFFICIENT GOVERNMENT.

+ THE BUDGETARY SURPLUS FOR 1981/82 WAS ESTIMATED TO BE $7.9 BILLION AND WILL IN FACT BE $7.7 BILLION.

/+AGAINST THIS