XN000022-1986-03-26 — Page 30

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WEDNESDAY, MARCH 26, 1986

AS FOR HIGH INCOME EARNERS OR ORGANISATIONS WITH ENORMOUS PROFITS, HE SAID HE BELIEVED CONSIDERATION SHOULD BE GIVEN TO RAISING THE AMOUNT OF TAX PAID BY THEM AS APPROPRIATE.

ON THE KA WAH BANK INCIDENT, HE SAID HE COULD NOT AGREE WITH THE FINANCIAL SECRETARY ON USING THE EXCHANGE FUND AS A GUARANTEE.

LONG-TERM PLAN COULD ENSURE CONTINUED PROSPERITY

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HONG KONG SHOULD HAVE A LONG-TERM PLAN TO PROMOTE AND MAINTAIN ITS ECONOMIC PROSPERITY, PROFESSOR THE HON POON CHUNG-KWONG TOLD THE LEGISLATIVE COUNCIL' TODAY (WEDNESDAY).

SPEAKING AT THE ANNUAL BUDGET DEBATE, PROF. POON SAID GOVERNMENT'S NON-INTERVENTION IN INDUSTRY POLICY SHOULD NOT BE USED AS A VEIL FOR INACTION OR ACTIONS DEVOID OF PRAGMATISM.

GOVERNMENT MUST ADOPT A MORE POSITIVE ROLE IN TRADE AND INDUSTRY BY CLEARLY DISTINGUISHING BETWEEN NON-INTERVENTION AND CONSTRUCTIVE PARTICIPATION, HE SAID.

HE POINTED OUT THAT MANY ASIAN GOVERNMENTS WERE DEVOTING EVER INCREASING EFFORTS TO HELPING THEIR INDUSTRIES ON THE ONE HAND AND THE TIDE OF INTERNATIONAL PROTECTIONISM EVER SURGING ON THE OTHER, HONG KONG'S COMPETITIVENESS IN OVERSEAS MARKETS WOULD BE DIMINISHING, IF GOVERNMENT PERSISTED IN UPHOLDING ITS NON- INTERVENTION POLICY.

PROF. POON URGED THE GOVERNMENT TO INVEST IN SETTING UP FACILITIES THAT WOULD ACTIVELY AID INDUSTRY.

HE CITED AS AN EXAMPLE THE HONG KONG PRODUCTIVITY COUNCIL'S HEAT TREATMENT UNIT, IN WHICH THE INITIAL SUM INVESTED WAS ABOUT $1 MILLION.

BECAUSE OF THE INCREASING NUMBER OF MANUFACTURERS USING THE SERVICE TO IMPROVE THE QUALITY OF THE IR PRODUCTS, THE INCOME FROM FEES CHARGED BY THE UNIT NOW ALMOST BALANCED THE OPERATIONAL COSTS, HE SAID.

+THE UNIT HAS DEMONSTRATED CONVINCINGLY HOW AN INITIAL INVESTMENT BY GOVERNMENT ON A USEFUL FACILITY OF THIS KIND CAN GO A LONG WAY IN PROMOTING INDUSTRIAL DEVELOPMENT.

+ IT WAS NOT A MERE TRANSFER OF TAXPAYERS' MONEY TO ASSIST AN INDUSTRY. REVENUE GENERATED INCLUDES DIRECT INCOME FROM USERS' FEES AND INDIRECT INCOME FROM TAXES THROUGH INCREASED INDUSTR | AL INVESTMENTS AND EMPLOYMENT OPPORTUNITIES, HE SAID.

IN THE

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