XN000022-1983-04-14 — Page 2

THURSDAY, APRIL 14, 1983

BUDGET BALANCED AND LOGICAL', FS SAYS

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WHILE SHARING WITH MEMBERS OF THE LEGISLATIVE COUNCIL AND THE PUBLIC A SENSE OF THE IR SHOCK AT SHARPLY INCREASED INDIRECT TAXES, DUTIES AND FEES, HE BELIEVED THAT HIS TOUGH BUDGET+ WAS +BALANCED AND LOGICAL+, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE, SAID TODAY.

+SOME WILL CONTINUE TO CRITICISE IT GENERALLY FOR SOFT REASONS THE EFFECT OF WHOSE ADOPTION CAN GENERALLY BE SEEN ELSEWHERE IN THE SHAPE OF INFLATION, HIGH PUBLIC EXPENDITURE, EXCESSIVE TAXATION, INDUSTRIAL DECAY AND MASS UNEMPLOYMENT.

+MOST WILL AGREE THAT IT IS NECESSARY AT THIS MOMENT IN OUR HISTORY. INDEED WE HAVE NO EASY OPTIONS, MR BREMRIDGE SAID.

HE REPEATED THE VIEW HE EXPRESSED IN HIS BUDGET SPEECH THAT THERE WAS NO SENSIBLE ALTERNATIVE BUT TO PROMOTE +ACTUAL EXPORT NOT THEORETICAL EQUITY, SOLVENCY NOT SOFT-HEARTEDNESS, INCENTIVES NOT IDEOLOGY+WHILE STILL REMAINING COMPASSIONATE AND CARING PARTICULARLY IN THE CASE OF INDIVIDUAL INADEQUACIES AND SUFFERING.

REFERRING TO INDIVIDUAL POINTS RAISED BY UNOFFICIAL MEMBERS, MR BREMRIDGE SAID HE AGREED +VERY MUCH+ WITH THE HON S.L. CHEN'S COMMENTS ON THE NEED TO DEVELOP CONTINUALLY IN THE CIVIL SERVICE +VALUE FOR MONEY AWARENESS+.

+MUCH HAS ALREADY BEEN DONE. NO DOUBT MORE IS NECESSARY. BUT CIVIL SERVANTS, LIKE THEIR FELLOWS IN THE PRIVATE SECTOR, ARE GENERALLY MOTIVATED TO DO THEIR BEST,+ HE SAID.

REFERRING TO COMMENTS BY DR THE HON HENRY HU ABOUT INTEREST TAX ISSUES, HE SAID THAT, HAVING WITH SUBSEQUENT SUCCESS REMOVED THE TAX ON FOREIGN CURRENCY DEPOSITS ONLY A YEAR AGO, HE DID NOT INTEND TO LEVY SUCH A TAX AGAIN THIS YEAR+EVEN ON A REDUCED BASIS+.

IT WOULD RESULT, HE ADDED, IN A HUGE OUTFLOW.+

MR BREMRIDGE SAID HE NOTED, AND TO SOME EXTENT SHARED,

DR HU'S VIEWS ON POSSIBLE GOVERNMENT BORROWING AND WOULD BEAR THIS IN MIND.

MR BREMRIDGE SAID HE SHARED THE CONCERN EXPRESSED BY THE HON WONG LAM AND THE HON CHEUNG YAN-LUNG ABOUT INCREASED RATES.

+BUT, HOWEVER UNPALATABLE, THE SITUATION MUST BE RECOGNISED, HE SAID.

FROM 1977-78 TO 1981-82, THE YIELD FROM THE GENERAL RATE INCREASED BY ONLY 1.5 TIMES, COMPARED WITH A THREE-FOLD INCREASE IN ALL OTHER RECURRENT REVENUE.

/IN 1982-83