XN000022-1986-03-26 — Page 18

WEDNESDAY, MARCH 26, 1986

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NOTING THAT THE GDP HAD SIGNIFICANTLY BEEN REDUCED SINCE LAST YEAR AND FIGURES AS INDICATED IN THE FIVE-YEAR FORECAST, MR LAU SAID HONG KONG'S ECONOMY HAD GONE INTO A STAGE OF LOW ECONOMIC GROWTH.

GOVERNMENT'S REVENUE WOULD DEFINITELY BE AFFECTED UNDER THESE CIRCUMSTANCES AND IF THE VARIOUS ITEMS OF CURRENT DEVELOPMENT PROJECTS WERE TO BE MAINTAINED AND CONTINUED, +WE HAVE TO ENSURE THAT GOVERNMENT HAS ADEQUATE SOURCES OF REVENUE BEFORE A BALANCE ON THE TWO ENDS CAN BE ACHIEVED,+ HE STRESSED.

MR LAU OBSERVED THAT FUTURE PUBLIC REVENUE WOULD OBVIOUSLY

HAVE TO RELY ON EXPORT OF INDUSTRIAL PRODUCTS.

HE SAID HE DOUBTED WHETHER THE GROWTH RATE OF 4.5 PER CENT COULD BE ATTAINED IN VIEW OF THE ECONOMIC PROTECTIONISM OF THE UNITED STATES AND EUROPE, THE CONSTRAINT POLICY IN FOREIGN EXCHANGE OF CHINA, INTERNATIONAL ECONOMIC RECESSION AND A GROWING SENSE OF SUSPICION ABOUT HONG KONG'S FUTURE OUTLOOK AMONG LOCAL INDUSTRIALISTS AND INVESTORS.

ON DEVELOPMENT IN THE NEW TERRITORIES, MR LAU SAID THE SUCCESS IN THE DEVELOPMENT OF NEW TOWNS BY THE GOVERNMENT WAS EASILY RECOGNISABLE AND THIS HAD GREATLY ELEVATED THE QUALITY OF LIFE OF NEW TOWN RESIDENTS.

+HOWEVER, IT IS A PITY THAT THERE ARE STILL MANY DISTRICTS AND VILLAGES OUTSIDE THE BOUNDARIES OF NEW TOWNS IN THE NEW TERRITORIES THAT ARE UNABLE TO ENJOY THOSE ADVANTAGES AND BENEFITS BROUGHT ABOUT BY NEW TERRITORIES DEVELOPMENT, HE SAID.

LOOKING AT THE PROVISION SET ASIDE FOR MINOR VILLAGE WORKS BY THE GOVERNMENT IN THE PAST THREE YEARS, MR LAU SAID THERE WAS NO INCREASE IN THE PROVISION WHATSOEVER EXCEPT TO COVER INFLATION.

IN ORDER TO IMPROVE THE QUALITY OF LIFE OF THE PEOPLE DWELLING IN THESE AREAS, HE CONSIDERED THERE WAS THE NEED FOR THE GOVERNMENT, TO INCREASE SIGNIFICANTLY THE PROVISION FOR LOCAL PUBLIC WORKS.

+ IN THE LONG TERM. THE GOVERNMENT ALSO HAS TO CONDUCT FULL INVESTIGATIONS AND STUDIES IN ORDER TO FORMULATE A COMPREHENSIVE PROGRAMME TO IMPROVE BY STAGES THE FACILITIES OF VILLAGES AND DISTRICTS LYING OUTSIDE THE BOUNDARIES OF NEW TOWNS SO AS. TO BRING THEM UP TO THE PRESENT LEVEL OF OUR COMMUNITY, HE SAID.

FINALLY, MR LAU SAID HE REGRETTED THAT THE LEGISLATIVE COUNCIL HAD NOT BEEN GIVEN ANY PRIOR NOTIFICATION ABOUT THE KA WAH BANK INCIDENT AND CONSIDERED THAT THERE WERE DEFECTS ON THE PART OF THE ADMINISTRATION CONCERNING THE PROCEDURAL ARRANGEMENTS IN HANDLING THE MATTER REGARDLESS OF WHATEVER INTENTION IT HAD.

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