XN000022-1984-02-29 — Page 17

WEDNESDAY, FEBRUARY 29, 1984

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+DISCIPLINED SPENDING+ TO CONTINUE

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THE GOVERNMENT REMAINS DETERMINED TO BUILD UP HONG KONG'S GENERAL INFRASTRUCTURE EVEN THOUGH IT IS NOT OUT OF THE WOODS YET+ AFTER THE DIFFICULT ECONOMIC SITUATION EXPERIENCED DURING 1982-83, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID IN PRESENTING HIS 1984-85 BUDGET IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPENDING WOULD CONTINUE STEADILY WITHOUT ARBITRARY CUTBACKS AND IN A DISCIPLINED MANNER ON ALL LONG-TERM PROGRAMMES FOR LAW AND ORDER, SOCIAL, HEALTH AND MEDICAL SERVICES, HOUSING, EDUCATION AND TRANSPORT, SIR JOHN SAID.

SIR JOHN WENT ON: +WE MUST, HOWEVER, FACE THE FACT THAT ALL THIS HAS TO BE PAID FOR. RAISING OF REVENUE IS A HIGHLY SUEJECTIVE MATTER. THERE ARE MANY WAYS OF SKINNING A CAT; AND MY PROPOSALS TODAY REMAIN OPEN TO DEEATE.

+I FIRMLY BELIEVE THAT ECONOMIC GROWTH MUST PROVIDE ROOM FOR GROWTH IN WISE PUBLIC SECTOR SPENDING. THE COROLLARY 13 THAT ONLY ECONOMIC GROWTH MAKES THIS POSSIBLE, THOUGH A SENSIBLE GOVERNMENT SETS ITS SIGHTS ON THE LONG-TERM AND IS NOT SIDETRACKED BY SHORT-TERM DIFFICULTIES.+

THERE WAS A RESURGENCE IN HONG KONG'S EXPORT TRADE IN 1983, SAID SIR JOHN, AND THE GROWTH OF 15 PER CENT IN REAL TERMS WAS IMPRESSIVE, PARTICULARLY AS THE FIRST QUARTER WAS RELATIVELY FLAT.

+A MAJOR THRUST OF OUR ECONOMIC, MONETARY, FINANCIAL AND FISCAL POLICIES IS DIRECTED TOWARDS THE PROMOTION OF EXPORTS GOODS AND SERVICES ALIKE.

+THIS IS ARGUABLY OUR MOST IMPORTANT OBJECTIVE, FOR WITHOUT THE EARNINGS AND EMPLOYMENT PROVIDED BY EXPORTS HONG KONG HAS LITTLE EXCEPT A FINE HARBOUR AND 5.3 MILLION PEOPLE.

+AN OUTCOME WAS A REAL GROWTH IN GDP OF 5.9 PER CENT. IN DIFFICULT CIRCUMSTANCES OUR POLICIES HAVE THUS MET WITH A DEGREE OF SUCCESS.+

SIR JOHN SAID THAT WHILE HAPPINESS WAS NOT ENSURED BY PROSPERITY, AT LEAST GROWING PROSPERITY MUST RESULT IN FEWER PEOPLE FACING INEVITABLE UNHAPPINESS.

+AT THE SAME TIME THE MAJORITY IN HONG KONG HAVE BY Now LEARNED, I BELIEVE, THE LESSONS THAT INCOME MUST BE EARNED BEFORE IT IS SPENT; THAT INCENTIVES MUST BE OFFERED; THAT TAXATION SHOULD BE MODERATE, FALLING MORE HEAVILY ON THE BETTER OFF THAT THE PROCLIVITIES OF DECENT MEN AND WOMEN TO SPEND HUGELY ON SOCIAL AND OTHER MEASURES CAN BE RESTRAINED ONLY BY TOUGH BUDGETARY POLICIES; AND ABOVE ALL THAT GROWTH OF PUBLIC SECTOR EXPENDITURE MUST BE RELATED TO GROWTH IN GDP.