XN000022-1982-10-06 — Page 7

JEDNESDAY, OUTOMAR 6, 198z

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HONG KONG'S ENTREPRENEURS AND INDUSTRIALISTS WERE EXPERIENCING DIFFICULT TIMES, HE ACKNOWLEDGED, BUT NOTED THAT IT WAS NOT THE GOVERNMENT'S POLICY TO INTERVENE DIRECTLY AND INTERFERE WITH MARKET FORCES.

BUT SIR EDWARD ADDED THAT THE GOVERNMENT +SEEKS TO PROVIDE THE INFRASTRUCTURE, THE TRAINING OF SKILLED MANPOWER AND THE ENVIRONMENT WITHIN WHICH GROWTH WITH STABILITY CAN BE ACHIEVED.

ON THE CURRENT NEGOTIATIONS FOR A NEW TEXTILE AGREEMENT WITH THE EUROPEAN COMMUNITY, HE SAID, YOU MAY BE ASSURED THAT WE HAVE BEEN RESOLUTE IN DEFEND ING HONG KONG'S INTEREST AND IN BRINGING HOME, BOTH TO THE COMMUNITY AND TO HMG, THE IMPORTANCE OF THESE NEGOTIATIONS TO US.+

MEASURES FOR MORE EFFICIENT MANAGEMENT OF PUBLIC FINANCE

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THE GOVERNOR, SIR EDWARD YOUDE TODAY OUTLINED A NUMBER OF LEGISLATIVE MEASURES FOR MORE EFFICIENT MANAGEMENT OF PUBLIC FINANCE AND THE PROMOTION OF HONG KONG AS A MAJOR FINANCIAL CENTRE.

ON PUBLIC FINANCE, SIR EDWARD SAID A PUBLIC FINANCE BILL WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL THIS YEAR TO PROVIDE A STATUTORY BACKING TO OUR SYSTEM OF FINANCIAL ADMINISTRATION WHICH WILL ENABLE FINANCIAL AUTHORITIES TO BE MORE CLEARLY DEFINED.

SIR EDWARD HAD EXPRESSED CONCERN OVER THE PROPORTIONATELY GREATER SHARE WHICH THE PUBLIC SECTOR WILL COMMAND OF THE ECONOMY'S RESOURCE BECAUSE OF THE DOWNWARD REVISION OF THE FORECAST GROWTH RATE OF THE GROSS DOMESTIC PRODUCT AND BECAUSE OF INCREASED PUBLIC EXPENDITURE.

+IN SUCH CIRCUMSTANCES IT IS DOUBLY IMPORTANT THAT PUBLIC FUNDS SHOULD BE SPENT IN THE MOST EFFICIENT MANNER, HE SAID.

IN THE RECENT YEARS, HE ADDED, SEVERAL IMPORTANT STEPS HAVE BEEN TAKEN TOWARDS IMPROVING EFFICIENCY AUDIT, INCLUDING THE DESIGN OF A COMPUTER-BASED FINANCIAL INFORMATION SYSTEM WHICH IS WELL ADVANCED AND WILL, FROM NEXT YEAR, PROVIDE THE DATA NECESSARY TO ESTABLISH THE TRUE COST OF SERVICES, THEREBY ASSISTING MANAGEMENT DECISIONS AND PROVIDING A FÁCILITY FOR KEEPING FEES AND CHARGES UP-TO-DATE.

SIR EDWARD SAID REVENUE COLLECTIONS SO FAR THIS YEAR HAVE NOT REACHED EXPECTATIONS, DUE LARGELY TO SHORTFALLS IN THE YIELDS FROM LAND SALES, AND EARNINGS AND PROFITS TAX, TOTAL EXPENDITURE IS HIGHER THAN ESTIMATED DUE PARTLY TO THE PURCHASE OF MORE LAND THAN EXPECTED AND OTHER UNAVOIDABLE CAPITAL EXPENDITURE BUT MAINLY TO THE ANNUAL ADJUSTMENT TO CIVIL SERVICE PAY.

/+IT NOW