XN000022-1982-03-24 — Page 16

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WEDNESDAY, MARCH 24, 1982

RESEARCH COUNCILS FOR INDUSTRY PROPOSED

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DR THE HON RAYSON HUANG TODAY (WEDNESDAY) CALLED FOR THE ESTABLISHMENT OF RESEARCH COUNCILS TO MEET THE NEEDS OF INDUSTRY.

HE TOLD THE LEGISLATIVE COUNCIL THAT ALTHOUGH THE SIZE OF OUR GROSS DOMESTIC PRODUCT HAD PUT HONG KONG IN THE LEAGUE OF DEVELOPED RATHER THAN DEVELOPING COUNTRIES, SOME OF OUR EFFORTS SHOULD BE DIRECTED AT THE MAINTENANCE OF THE TECHNOLOGICAL EXPERTISE AND ADAPTABILITY NEEDED TO COPE WITH THE INCREASINGLY SOPHISTICATED MARKET THE FUTURE MIGHT BRING.

+OBVIOUSLY SOME MEASURES HAVE ALREADY BEEN IMPLEMENTED IN AN AWARENESS OF THE SITUATION, NOTABLY THE ESTABLISHMENT OF AN INDUSTRIAL DEVELOPMENT BOARD AND THE EXPANSION OF THE PRODUCTIVITY CENTRE, AS WELL AS THE PROPOSED TAX CONCESSIONS TO PROMOTE INDUSTRIAL INVESTMENT.

+BUT TOO LITTLE ENERGY AND FINANCE HAS YET BEEN DIRECTED TO THE SUPPORT OF INDUSTRIAL RESEARCH AND DEVELOPMENT ACTIVITIES AND WE FALL BEHIND OTHER DEVELOPED, AND INDEED SOME DEVELOPING, COUNTRIES IN THE EXTENT TO WHICH WE ARE PREPARED, IN THIS MATTER OF RESEARCH, TO COMMIT A PART OF OUR PRESENT PROSPERITY TOWARDS FUTURE RETURNS, HE SAID.

RESEARCH IS TOO OFTEN LOOKED UPON AS IDEALISTIC EXTRAVAGANCE RATHER THAN PRACTICAL INSURANCE.

BUT DR HUANG CONTENDED THAT THE ESTABLISHMENT OF RESEARCH COUNCILS TO WHICH INDUSTRY COULD LOOK FOR GUIDANCE AND WHICH COULD SPONSOR RESEARCH INTO AREAS OF VITAL COMMUNITY AND INDUSTRIAL CONCERN WOULD BE A MEANS OF ENSURING THAT RESOURCES INJECTED INTO THIS AREA ARE WELL SPENT+.

COMMENTING ON THE TAX CONCESSIONS PROPOSED BY THE FINANCIAL SECRETARY TO IMPROVE THE LOT OF THE COMMON MAN, HE SUGGESTED THAT THE BANDS OF TAXABLE INCOME, AT PRESENT $10 000, SHOULD BE WIDENED IN ORDER TO ACHIEVE THE REAL PURPOSE OF THE CONCESSIONS.

HE NOTED THAT DESPITE INFLATION IT WAS SOME CONSIDERABLE TIME SINCE THE TAX BANDS THEMSELVES WERE WIDENED AND, AS A RESULT, MIDDLE TO LOWER-MIDDLE INCOME TAXPAYERS WERE BEING PUSHED INTO HIGHER TAX BRACKETS WHEN THERE HAD BEEN NO REAL INCREASE IN THE PURCHASING VALUE OF THEIR INCOME.

AS REGARDS SEPARATE TAXATION FOR MARRIED WOMEN, DR HUANG SAID IT WAS MORE LIKELY TO BENEFIT THE LOWER-INCOME GROUP AND WOULD BE IN LINE WITH THE FINANCIAL SECRETARY'S EMPHASIS ON INCREASING THE LONG-TERM PRODUCTION CAPABILITY OF OUR ECONOMY BY ENCOURAGING THE LABOUR PARTICIPATION RATE OF MARRIED WOMEN.

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