XN000022-1984-03-29 — Page 27

THURSDAY, MARCH 29, 1984

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THIS MEANT THAT THE CAPITAL EXPENDITURE ON OFFICE OR SHOP PREMISES WERE NOT WRITTEN OFF FOR TAX PURPOSES UNTIL AFTER 133 YEARS AND THIS WAS HARDLY FAIR TO THE OWNERS OF SUCH BUILDINGS, MR POON SAID.

+REALISTIC UPWARD REVISION OF THE REBUILDING ALLOWANCE PREFERABLY WITH A NEW INITIAL ALLOWANCE WILL HOPEFULLY GIVE A NEW INCENTIVE FOR BUSINESSES TO ACQUIRE SUCH PREMISES, HE SAID.

MR POON ALSO URGED THE GOVERNMENT AND THE INDUSTRIAL SECTOR TO CO-OPERATE MORE FULLY IN THE FIELD OF RESEARCH AND DEVELOPMENT.

+APPROPRIATE INCENTIVES AND SUBSIDIES FOR EXPENSES IN THIS FIELD ARE ABSOLUTELY NECESSARY. OTHERWISE, WE WILL NEVER CATCH UP WITH OTHER COUNTRIES WHOSE TECHNOLOGY IS ADVANCING VERY QUICKLY AND HONG KONG WILL BE LEFT WAY BEHIND, HE SAID.

ON THE CONTROL OF PUBLIC SECTOR EXPENDITURE, MR POON SAID ONE WAS PARTICULARLY CONCERNED AT THE GROWTH OF THE PUBLIC SECTOR EXPENDITURE ESPECIALLY CIVIL SERVICE SALARIES AND PERSONNEL RELATED EXPENSES WHICH ACCOUNTED FOR ABOUT $11 BILLION, 1.E. 44 PER CENT OF THE RECURRENT ACCOUNT.

THOUGH OUR CIVIL SERVICE WAS ONE OF THE FINEST IN THE WORLD, MR POON REMARKED, WITH THE RAPID GROWTH IN THE ECONOMY IN THE PAST YEARS, THE CONSEQUENT AND CONTINUED EXPANSION OF THE CIVIL SERVICE MIGHT ULTIMATELY MAKE IT UNWIELDY.

+GOVERNMENT HAS TAKEN THE RIGHT STEP IN THE PRIVATISATION OF CERTAIN SERVICES' SECTORS SUCH AS THE KOWLOON-CANTON RAILWAY, AND NOW THE MULTI-STOREYED CAR PARKS. FURTHER IN-DEPTH REVIEW OF THE WHOLE CIVIL SERVICE STRUCTURE IS NECESSARY AT THIS STAGE OF OUR ECONOMICAL DEVELOPMENT WHICH WE HAVE A CONSIDERABLE DEFICIT FOR A FEW SUCCESSIVE YEARS, HE SAID.

MR POON POINTED OUT THAT HONG KONG WAS WELL-PLACED TO REAP SUBSTANTIAL BENEFITS FROM THE ECONOMIC RECOVERY IN THE WORLD.

HOWEVER, HE ALSO NOTED THAT DESPITE MARKED IMPROVEMENT, THERE WAS STILL A LACK OF CONFIDENCE IN THE FUTURE OF HONG KONG RESULTING IN A SLOW DOWN OF INVESTMENT AND RE-INVESTMENT AND THE POSSIBILITY OF FURTHER OUTFLOW OF FUNDS AND HUMAN RESOURCES.

HE, THEREFORE, URGED THE GOVERNMENT TO REVEAL THE GENERAL PLAN OR FRAMEWORK FOR HONG KONG'S FUTURE SOON AND HE ALSO CALLEL UPON THE PEOPLE OF HONG KONG TO ACT POSITIVELY AND HAVE CONFIDENCE IN OUR OWN FUTURE.

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