XN000022-1984-03-28 — Page 17

WEDNESDAY, MARCH 28, 1984

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NOTING THE GREAT IMPORTANCE ATTACHED BY THE FINANCIAL SECRETARY TO PROMOTE INCREASES IN PRODUCTIVITY AND VALUE FOR MONEY, HE SAID THAT THE GREATER USE OF TECHNOLOGICAL ADVANCES WOULD ENHANCE PRODUCTIVITY.

HE ALSO SUGGESTED THAT THE PRIVATISATION AND THE ESTABLISHMENT OF PUBLIC CORPORATIONS SHOULD CONTINUE.

+ IT WILL RELIEVE THE CENTRAL GOVERNMENT FROM RESPONSIBILITIES IN RESPECT OF SERVICES WHICH COULD BE MANAGED WITH EQUAL IF NOT IMPROVED EFFICIENCY UNDER PRIVATE OR INDEPENDENT MANAGEMENT,+ HE SAID.

ON THE GOVERNMENT SECRETARIAT, HE NOTED THAT AS A RESULT OF THE MCKINSEY RECOMMENDATIONS, A NUMBER OF SECRETARIES HAD BEEN APPOINTED TO ASSIST THE CHIEF SECRETARY IN FORMULATING AND CO-ORDINATING GOVERNMENT POLICIES IN RELATED FIELDS.

+AFTER ALMOST A DECADE, IT IS PERHAPS TIME TO SEE WHETHER IT IS NECESSARY TO REVAMP THE SYSTEM, PARTICULARLY WHEN HONG KONG HAS WITNESSED PHENOMENAL EXPANSION AND CHANGES

IN ALMOST ALL SPHERES OF ACTIVITY, HE SAID.

+IT IS ESSENTIAL TO ENSURE THAT NO DISCORD AND CONFLICT

OF INTEREST EXIST, WHICH MAY RESULT IN UNDUE AND UNNECESSARY DELAYS IN THE IMPLEMENTATION OF GOVERNMENT DECISIONS.

+HARMONY AND IDENTITY OF PURPOSE ARE PERHAPS THE BEST GUARANTEES TO BETTER EFFICIENCY AND PRODUCTIVITY, HE ADDED.

TURNING TO THE REVENUE PROPOSALS, MR WONG SAID THAT HE REGARDED THE TWO PER CENT INCREASE IN DIRECT TAXATION AS JUSTIFIABLE.

+ALTHOUGH THE DISTRIBUTION OF THE TAX BURDEN MAY NOT BE ENTIRELY EVEN, IT WOULD BE ABSURD TO SUGGEST THAT THE PROPOSED INCREASE WOULD POSE A THREAT TO OUR TRADE AND INVESTMENT,+ HE SAID.

HE POINTED OUT THAT THE FINANCIAL SECRETARY HAD CATEGORICALLY STATED THAT LOW TAXES HAD LONG BEEN AND WOULD CONTINUE TO BE A MAJOR CONTRIBUTOR TO HONG KONG'S GROWTH.

HE ALSO NOTED THE FINANCIAL SECRETARY'S PROMISE TO RECONSIDER SALARIES TAX THRESHOLDS CAREFULLY IN HIS NEXT BUDGET AND TO HAVE A LOOK AT INITIAL ALLOWANCES.

+THIS IS CLEAR EVIDENCE THAT THE FINANCIAL SECRETARY RECOGNISES THE NEED FOR CONCESSION IF CIRCUMSTANCES PERMIT, + MR WONG SAID,

MR WONG NEXT CALLED ON THE TRADE DEPARTMENT TO TAKE A FRESH LOOK AT THE +COMPLEX AND MUCH CRITICISED+ QUOTA ALLOCATION SYSTEM.

/TURNING TO