XN000022-1986-03-26 — Page 23

WEDNESDAY, MARCH 26, 1986

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HOWEVER, HE FELT THAT IT WAS UNFAIR TO THOSE WHO HAD TO BRING UP CHILDREN THAT THERE WAS NO INCREASE IN THE CHILD ALLOWANCE.

HE SUGGESTED THAT WHEN THE ECONOMY IMPROVED, PERSONAL

AND CHILD ALLOWANCE SHOULD BE PROPERLY ADJUSTED.

MR POON ALSO SAID THAT WITH THE APPROACH OF 1997, THE USE OF THE CHINESE LANGUAGE WOULD GROW WHILE, AT THE SAME TIME, THE PACE OF LOCALISATION IN THE CIVIL SERVICE WOULD ACCELERATE. HE THEREFORE URGED THE GOVERNMENT TO STRENGTITS PLANS FOR TRAINING LOCAL CIVIL SERVANTS.

FINALLY, MR POON SAID CONTROL OF CIVIL SERVIC. GROWTH SHOULD NOT LEAD TO AN OVER-RELIANCE ON THE SERVICE OF CONSULTANT FIRMS, OTHERWISE, THE POLICY OF CONTROLLING CIVIL SERVICE GROWTH WOULD NOT ONLY BECOME MEANINGLESS, BUT WOULD ALSO REDUCE THE EMPLOYMENT OPPORTUNITIES FOR LOCAL ENGINEERS AND OTHER PROFESSIONALS, AND INCREASE THE COST OF GOVERNMENT PROJECTS, HE SAID.

HE URGED THAT WHILE BRINGING THE GROWTH OF CIVIL

SERVICE UNDER CONTROL GOVERNMENT DEPARTMENTS SHOULD BE PROVIDED WITH ADEQUATE STAFF TO STUDY, PLAN AND SUPERVISE PUBLIC PROJECTS

INTERNALLY.

MR POON ALSO CALLED ON THE GOVERNMENT TO REVIEW AND RECTIFY WHAT HE TERMED THE PRESENT POOR CO-ORDINATION AND MISUNDERSTANDING AMONG SOME GOVERNMENT DEPARTMENTS WHICH HAD LED TO UNNECESSARY WASTAGE,

SLOW INVESTMENT RATE A MATTER OF CONCERN ******

A MATTER OF CONCERN TO THE FUTURE ECONOMIC GROWTH OF HONG KONG IS THE RELATIVELY SLOW INVESTMENT RATE BY LOCAL INDUSTRIALISTS IN NEW PLANT EQUIPMENT ESPECIALLY RELATING TO THE EXPORT FIELD, THE HON HILTON CHEONG-LEEN SAID AT THE DEBATE ON THE BUDGET TODAY (WEDNESDAY).

MR CHEONG-LEEN SAID THAT FACTOR IES WERE APPARENTLY STEPPING UP THEIR PRODUCTIVITY ON EXISTING EQUIPMENT OR REPLACING OLD WITH NEW EQUIPMENT ONLY WHEN ABSOLUTELY NECESSARY WITHOUT WANTING TO INVEST FOR LONG-TERM GROWTH BY WAY OF NEW CAPITAL INVESTMENT.

+GOVERNMENT SHOULD THEREFORE AGAIN REVIEW THE CURRENT LEVEL OF INCENTIVES FOR LOCAL INDUSTRIALISTS TO BE WILLING TO PUT MORE MONEY INTO MEDIUM AND LONG-TERM CAPITAL INVESTMENT, HE URGED.

WHETHER THIS SHOULD BE DONE BY WAY OF MORE SUBSTANTIAL DEPRECIATION ALLOWANCE FOR THE MORE SIZABLE INVESTMENT WOULD BE A MATTER FOR MORE DETAILED STUDY BY THE ADMINISTRATION, HE SAID.

/MR CHEONG-LEEN