XN000022-1983-07-13 — Page 17

16

WEDNESDAY, JULY 13, 1983

+MR SO WILL APPRECIATE THAT THE CURRENT CHAIRMAN OF THE HKAB IS A DISTINGUISHED MEMBER OF THIS COUNCIL AND I PAY TRIBUTE TO HIS AND THE COMMITTEE'S DEEP SENSE OF RESPONSIBILITY IN. AN AREA OF MAXIMUM IMPORTANCE TO HONG KONG AS A WHOLE, SIR JOHN SAID.

MEMBERS OF THE COMMITTEE DID CONSIDER NOT ONLY THEIR OWN INTERESTS AS BANKERS BUT THE BROADER INTERESTS OF THE TOTAL COMMUNITY, HE ADDED.

HE POINTED OUT THAT PRIME RATE IS ESTABLISHED FOLLOWING A DECISION BY THE HKAB ON DEPOSIT RATES BY A STATEMENT OF INTENT FROM THE HONG KONG AND SHANGHAI BANK AND THE CHARTERED BANK.

WHILE THEIR PRIME RATE IS NORMALLY OBSERVED BY OTHER BANKS, THERE IS NO RESTRICTION ON BANKS TO QUOTE ANY RATE FOR THEIR LOANS, SO THAT LOANS MIGHT BE AT RATES HIGHER OR LOWER THAN PRIME, SIR JOHN ADDED.

+MOREOVER, THER IS A GROWING TENDENCY FOR MAJOR BORROWERS TO PRESS FOR PRESENTLY LOW +HIBOR RATES, I.E. REFLECTING INTER-BANK RATES, HE SAID.

NET EXPENDITURE $925M LESS THAN ESTIMATED

*****

NET EXPENDITURE AT $34.6 BILLION FOR THE FULL FINANCIAL YEAR 1982-83 WAS ACTUALLY $925 MILLION LESS THAN THE ORIGINAL ESTIMATE, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY.

HE SAID THIS RESULTED FROM SAVINGS FOUND UNDER OTHER SUBHEADS - IN OTHER WORDS REDUCED EXPENDITURE ARISING OUT OF MANY REASONS.+

+1 BELIEVE THAT MEMBERS WILL RECOGNISE THE BITE OF CONTROLS, AND THE STERLING EFFORTS OF MANY VOTE-CONTROLLERS TO WHOM I EXTEND MY THANKS,+ SIR JOHN SAID.

THE FINANCIAL SECRETARY WAS MOVING A MOTION FOR APPROVAL OF SUPPLEMENTARY PROVISION AMOUNTING TO $1.8 BILLION FOR THE FOURTH AND FINAL QUARTER OF THE FINANCIAL YEAR.

SIR JOHN SAID THE FINANCE COMMITTEE HAD APPROVED ALL THE ITEMS IN THE SCHEDULES OF THE PROVISION.

MAJOR ITEMS UNDER THE PROVISION INCLUDE:

* $1.09 BILLION FOR VARIOUS SALARY ADJUSTMENTS FOR THE

CIVIL SERVICE AND STAFF OF SUBVENTED ORGANISATIONS ARISING FROM THE 1982 PAY TREND SURVEY AND THE IMPLEMENTATION OF RECOMMENDATIONS OF THE STANDING COMMISSION :

$251 MILLION