XN000022-1983-02-23 — Page 7

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WEDNESDAY, FEBRUARY 23, 1983

+BUT WHENCE IS THE MONEY TO COME?+ HE ASKED.

THE GOVERNMENT, HE SAID, COULD NOT BE LED INTO TEMPORARY SUPPORT OF INDUSTRIES IN DISTRESS.

+ IF DIRECT GOVERNMENT SUPPORT WERE TO BE GIVEN, IT SHOULD LOGICALLY GO TO BOLSTER THE EFFICIENT SECTORS OF OUR ECONOMY NOT TO FEATHERBED THOSE IN TROUBLE, HE SAID.

INSOFAR AS CLAIMS FOR GENERALISED ASSISTANCE TO INDUSTRY WERE CONCERNED, THE GOVERNMENT WOULD CONTINUE TO RELY MAINLY THOUGH NOT ENTIRELY ON THE DISCIPLINES OF THE MARKET PLACE. BUT HE REITERATED HIS COMMITMENT TO PRONOUNCED AND GROWING GOVERNMENT SUPPORT FOR THE BASIC INFRASTRUCTURE NEEDED TO SUPPORT THE CHANGING ECONOMY AND HE WOULD REMAIN OPEN TO RESPONSIBLE SUGGESTIONS FOR IMPROVEMENT, HE SAID.

INCREASING, WELL FOUNDED DEMANDS IN THE INFRASTRUCTURE AREAS WOULD CONTINUE TO BE A MAJOR CONCERN FOR THE GOVERNMENT, HE SAID.

BUT THE MAINTENANCE AND GROWTH OF SUCH SERVICES WOULD STILL DEPEND ON THE PRIOR CREATION OF WEALTH.

+NOTHING IS LESS CALCULATED TO PROMOTE HONG KONG'S LONG-TERM GROWTH AND STABILITY THAN OVER-SPENDING OR WRONG PRIORITIES OR A MIXTURE OF BOTH AND WHILE WE WILL CONTINUE STEADILY WITH ALREADY AGREED PROGRAMMES WE WILL HAVE TO BE FRUGAL WITH REGARD TO NEW ONES,+ HE SAID.

ILLUSTRATING HIS COMMENTS ABOUT GOVERNMENT SPENDING, MR BREMRIDGE REFERRED TO THE CASE FOR A REPLACEMENT AIRPORT.

IT WOULD BE DESIRABLE, IF IT COULD BE AFFORDED, TO HAVE BY 1990 OR THEREABOUTS, AN ALTERNATIVE AIRPORT CAPABLE OF GROWTH. BUT AT 1982 PRICES THE TOTAL COST POSTULATED BY AN AIRPORT AT CHEK LAP KOK WOULD BE ROUGHLY $37 BILLION, INCLUDING AIRPORT, ROADS AND BRIDGES, LAND RESUMPTION AND CONSTRUCTION OF A NEARBY NEW TOWN ON LANTAU.

+CLEARLY WE CANNOT CONTEMPLATE SUCH EXPENDITURE IN ISOLATION UNTIL WE CAN SET OVERALL PRIORITIES FOR THE WHOLE TERRITORY FOR THE NEXT TEN YEARS OR SO AGAINST THE MAJOR SUB-REGIONAL STUDIES WHICH ARE NOW REACHING CONCLUSION.

+THIS SHOULD BE POSSIBLE BY THE END OF THIS YEAR. SHALL THEN CONSIDER NEW PROGRAMMES, HE SAID.

AND WE

+BUT EVEN SO, MONETARY AND BUDGETARY FACTORS WOULD CONTINUE TO BE CRUCIAL, HE SAID.

MR BREMRIDGE SAID THAT WHILE THE GOVERNMENT WOULD CERTAINLY CONTINUE TO INVEST HEAVILY FOR THE FUTURE, IT COULD NOT DO SO FOR ALL CONCEIVABLE PROJECTS AND THE PLANNING HAD TO BE GOT RIGHT.

+ IT IS IRRESPONSIBLE TO BELIEVE THAT EXPENDITURE WITHOUT WISDOM PORTRAYS CONFIDENCE. IT DOES NOT. IT SHOWS ONLY FOLLY, MR BREMRIDGE SAID.

/PUBLIC EXPENDITURE