XN000022-1985-02-27 — Page 41

WEDNESDAY, FEBRUARY 27, 1985

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GROSS LAND PRODUCTION TO DOUBLE

****

GOVERNMENT GROSS LAND PRODUCTION IN 1985-86 IS ESTIMATED TO BE 652 HECTARES AS COMPARED WITH 313 HECTARES IN 1984-85, SAID SIR JOHN.

THESE FIGURES EXCLUDE LAND FORMED BY THE HONG KONG INDUSTRIAL ESTATES CORPORATION. THE GROSS FIGURES INCLUDE LARGE AREAS APPROPRIATED FOR PUBLIC HOUSING, INSTITUTIONAL USE, OTHER COMMUNITY PURPOSES, OPEN SPACE AND ROADS.

+THE REDUCTION IN ESTIMATED LAND PRODUCTION IN 1984-85 FROM THE ORIGINAL FORECAST OF 523 HECTARES FOLLOWED A REVIEW OF THE WORKS SCHEDULE FOR THE NEW TOWNS DEVELOPMENT PROGRAMME,+ SAID SIR JOHN.

OVER THE THREE YEARS OF THE NEW FORECAST PERIOD, TOTAL PRODUCTION IS ESTIMATED TO BE 1 683 HECTARES 597 HECTARES IN 86-87, 730 HECTARES IN 87-88 AND 356 HECTARES IN 88-89,

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FS'S SPEECH ON TV AND RAD10 ****

FOLLOWING IS THE TEXT OF THE BUDGET SUMMARY DELIVERED BY THE FINANCIAL SECRETARY ON TELEVISION AND RADIO STATIONS THIS (WEDNESDAY) EVENING.

+1 INTRODUCED THE BUDGET INTO THE LEGISLATIVE COUNCIL THIS AFTERNOON AND WOULD LIKE TO TELL YOU ABOUT IT BRIEFLY. MY MAJOR THEME IS THE PROSPECT OF RETURNING NEXT YEAR TO BALANCED BUDGETS.

+1 ACCEPT FULLY THAT IN A DEFICIT SITUATION TAXPAYERS PRESSED FOR HIGHER REVENUE EXPECT TO SEE GOVERNMENT EXPENDITURE BEING CONTROLLED. I AM THEREFORE PLEASED TO TELL YOU THAT FOR THE THIRD YEAR RUNNING PUBLIC SECTOR EXPENDITURE IS BELOW BUDGET. AS A PERCENTAGE OF GDP IT WILL HAVE BEEN REDUCED BY 16 PER CENT BY THE END OF NEXT FINANCIAL YEAR. IN 1985-86 THERE WILL BE NO INCREASE IN THE TOTAL NUMBER OF CIVIL SERVANTS DESPITE PROVIDING ADDITIONAL STAFF FOR NEW HOSPITALS AND FOR POLICE EXPANSION,

+THE PROBLEMS FACED IN THE LAST THREE YEARS ARE CLEAR. ANNUAL LAND REVENUE HAS DROPPED SINCE 1981 BY ABOUT $9 BILLION AND IS UNLIKELY TO BE REALLY SIGNIFICANT IN THE FUTURE. WE HAVE ALSO GONE THROUGH A MAJOR WORLD RECESSION AND EXPERIENCED THE EFFECTS ON INVESTMENT CONFIDENCE OF THE NEGOTIATIONS ABOUT HONG KONG'S FUTURE, NOW HAPPILY CONCLUDED.

+IT IS