XN000022-1982-04-15 — Page 8

THURSDAY, APRIL 15, 198.

+SUBSEQUENTLY FOR 1982-83 TO ADVOCATE AN IMMEDIATE REDUCTION TO AN EIGHT PER CENT GROWTH RATE IS QUITE UNREALISTIC WITHOUT ACCEPTING A CUT OF EXISTING PROGRAMMES, HE SAID.

MR BREMRIDGE SAID HE WOULD FIND IT DIFFICULT TO JUSTIFY FURTHER CUTBACKS IN THE GROWTH RATE OF EXPENDITURE FOR 1982-3 ON TOP OF THE PROPOSED REDUCTION OF ELEVEN PERCENTAGE POINTS IN GROWTH ON CONSOLIDATED ACCOUNT, AGAINST A BACKGROUND OF LARG RESERVES AND A CONSIDERABLE BUDGETARY SURPLUS.

HOWEVER, HE SAID HE SENSED A CONTINUED CONCERN AT THE GROWTH RATE OF PUBLIC SECTOR EXPENDITURE AND WOULD BEAR IT IN MIND. HE ADDED THAT HE WOULD WELCOME MEMBERS' SUPPORT WHEN DIFFICULT DECISIONS HAD TO BE MADE.

ON TAXATION, MR BREMRIDGE SAID WE HAD LOW TAXATION IN HONG KONG AND IT WAS IMPORTANT THAT IT SHOULD REMAIN NEUTRAL IN EFFECT AND NOT BE UNDULY DISTORTED IN FAVOUR OF PARTICULAR CLASSES. HE WAS REFERRING TO PLEAS BY UNOFFICIAL MEMBERS FOR TAX RELIEF ESPECIALLY FOR HOME MORTGAGE PAYMENTS AND FOR FURTHER CONCESSIONS FOR NEW CAPITAL-INTENSIVE EQUIPMENT.

ON CAPITAL REVENUE AND EXPENDITURE, THE FINANCIAL SECRETARY SAID A PLANNING UNIT MIGHT BE SET UP SOON IN FINANCE BRANCH WHICH WOULD WORK ON MODELS FOR PROJECTION OVER A FIVE-YEAR PERIOD TO SEE WHAT WOULD HAPPEN TO FUTURE BUDGETS IN THE LIGHT OF VARIED ASSUMPTIONS.

HOWEVER, MR BREMRIDGE SAID ALTHOUGH THIS SOUNDED PRETTY SIMPLE, HE DOUBTED IF IT WOULD PROVE TO BE SO IN PRACTICE.

HE WAS REPLYING TO QUERIES RAISED BY MISS DUNN AND MR BROWN ON POSSIBLE FUTURE PROBLEMS WITH REGARD TO THE RELATIONSHIP BETWEEN CAPITAL EXPENDITURE AND CAPITAL REVENUE AND THE ALL IED POSSIBILITY OF FALLING REVENUE FROM LAND SALES.

MR BREMRIDGE SAID THERE WAS NOT MUCH THAT HE COULD DO IN ADVANCE ABOUT SUCH HYPOTHETICAL HORRORS, BEYOND CONSTANTLY BEING ON GUARD.

ON ASSISTANCE TO INDUSTRY, MR BREMRIDGE REPEATED THAT HE WAS WELL AWARE OF THE MANY PROBLEMS THAT INDUSTRY CURRENTLY FACED ESPECIALLY AS OUR OVERSEAS MARKETS WERE CURRENTLY AFFECTED BY RECESSION.

+BUT I DO NOT BELIEVE THAT THE RIGHT WAY TO SOLVE THESE PROBLEMS IS BY CROSS PAYMENTS FROM OTHERS. INDUSTRIALISTS REALLY MUST STAND ON THEIR OWN FEET AND ADAPT TO CONDITIONS AS THEY ALWAYS SUCCESSFULLY HAVE DONE, WHILE LOOKING TO GOVERNMENT FOR IMPROVED BASIC INFRASTRUCTURE.+

ON RELATIONS WITH CHINA, THE FINANCIAL SECRETARY SAID HE WAS PLEASED THAT THE HON WONG PO-YAN AND MR CHEONG UNDERLINED THE HIGHLY IMPORTANT ISSUE OF OUR TRADE LINKS WITH CHINA.

+1 ENTIRELY AGREED WITH WHAT BOTH MEN HAVE SAID, PARTICULAR. Y ABOUT THE IMPORTANCE OF THE SPECIAL ECONOMIC ZONES, AND I WELCOME THE CONSIDERATION THAT I UNDERSTAND IS BEING GIVEN TO A VISIT BY THE TRADE DEVELOPMENT COUNCIL TO CHINA, + HE ADDED.

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