XN000022-1983-03-24 — Page 19

THURSDAY, MARCH 24, 1983

12

AS IN THE CASE OF FIRE AND THEFT INSURANCE, HE SAID, THE INSURANCE COMPANY HAD TO BE ASSURED, BOTH BEFORE AND AFTER AN INSURANCE POLICY WAS TAKEN OUT, THAT THE CLIENT HAD TAKEN AND WOULD CONTINUE TO TAKE FIRE PREVENTION OR ANTI-BURGLARY MEASURES.

SIMILARLY, A FINANCIAL INSTITUTION WHICH IS NOT SOUNDLY MANAGED WOULD NOT BE ABLE TO OBTAIN A DEPOSIT INSURANCE, HE ADDED.

+ IN OTHER WORDS, IF A DEPOSIT INSURANCE SYSTEM WERE TO BE SET UP, THE GOVERNMENT AND PERSONS CONCERNED WOULD NEED TO EXERCISE EVEN STRICTER CONTROL OVER THE MONETARY SECTOR.

+RISK MANAGEMENT AND LOSS PREVENTION ARE ESSENTIAL ASPECTS

OF BUSINESS MANAGEMENT.

+THIS APPLIES TO ANY BUSINESS AND, IN PARTICULAR, TO THE MONETARY BUSINESS, IRRESPECTIVE OF THEIR SIZE,+ HE SAID.

MR SO ALSO URGED THE GOVERNMENT TO RECONSIDER THE ESTABLISHMENT OF A CONTRIBUTORY SOCIAL SECURITY SCHEME.

THE MOST IMPORTANT MERIT OF SUCH A SCHEME, HE SAID, WAS THAT IT WOULD BOOST THE PEOPLE'S SENSE OF BELONGING TO HONG KONG.

HE AGREED THAT THE TAXATION POLICY, WHICH WAS AIMED AT ATTRACTING INVESTORS, WAS A CORRECT ONE IN THE LIGHT OF THE PRESENT ECONOMIC AND POLITICAL CLIMATE.

BUT IN THE LONG RUN, HE STRESSED, THE RESPONSIBILITY OF MAINTAINING THE PROSPERITY AND STABILITY OF HONG KONG HAD TO BE SHOULDERED BY THE PEOPLE WHO HAD ALWAYS LIVED IN HONG KONG.

+THEREFORE, WHETHER A BUDGET IS A GOOD ONE OR NOT DEPENDS NOT ON ITS BEING IN THE BLACK OR IN THE RED, BUT ON WHETHER THE PEOPLE WILL RECEIVE LONG-TERM BENEFITS.

+ IT IS FOR SUCH LONG-TERM BENEFITS THAT I ALSO SUGGEST THE GOVERNMENT SHOULD CONSIDER OPTIONS LIKE INCREASING CORPORATION TAX, SELLING PUBLIC HOUSING UNITS IN THE URBAN AREAS TO TENANTS WHO CAN AFFORD THEM, OR MANAGING THEM LIKE A CO-OP CITY.

+BY SO DOING, THE GOVERNMENT COULD GENERATE MORE RESOURCES FOR IMPROVEMENTS IN BASIC SERVICES IN THE FIELDS OF HOUSING, EDUCATION, MEDICAL CARE AND SOCIAL SECURITY, HE SAID.

—

GOVERNMENT URGED TO LEAD IN FIGHTING INFLATION

****

THE GOVERNMENT MUST TAKE THE LEAD IN FIGHTING INFLATION, THE HON ALLEN LEE SAID IN THE LEGISLATIVE COUNCIL TODAY.

AT A TIME WHEN THE REST OF THE WORLD IS FIGHTING INFLATION, HONG KONG DOES NOT APPEAR TO BE DOING THE SAME, HE SAID,