XN000022-1986-03-26 — Page 5

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WEDNESDAY, MARCH 26, 1986.

+AND IT IS THAT ON WHICH OUR PROSPERITY, AND HENCE OUR ABILITY TO FINANCE THE PUBLIC SECTOR, DEPENDS, SHE SAID.

MISS DUNN AGAIN QUERIED GOVERNMENT'S DEFINITION OF PUBLIC SECTOR EXPENDITURE.

SHE SAID IT WAS +CLEARLY MISLEADING+ AND +ABSURD+ TO SAY THAT THE GOVERNMENT HAD ONLY AN EQUITY POSITION IN THE MASS TRANSIT RAILWAY CORPORATION WHEN IT WAS THE SOLE SHAREHOLDER AND GUARANTOR OF LOANS.

IT WAS EQUALLY MISLEADING TO SAY THAT SUCH A CORPORATION WAS PART OF THE PRIVATE SECTOR, SHE ADDED.

POINTING OUT THAT THE FINANCIAL SECRETARY HAD DEFENDED THE GOVERNMENT'S CONTINUED EXCLUSION OF THE MTRC AND THE KCR FROM THE SCOPE OF CONSOLIDATED ACCOUNT EXPENDITURE, SHE SAID WE MUST NOT PRETEND ANY LONGER THAT CONSOLIDATED ACCOUNT EXPENDITURE MEASURES THE SIZE OF THE PUBLIC SECTOR.

SHE NOTED THAT BOTH THE NATIONAL ACCOUNTS AND THE

CONSOLIDATED ACCOUNT DEFINITIONS OF THE PUBLIC SECTOR WERE USED.

SHE SAID THE IMPORTANT THING WAS THAT THE TWO DIFFERENT METHODS OF CALCULATING THE SIZE OF THE PUBLIC SECTOR DID NOT MERELY PRODUCE DIFFERENT RESULTS BUT THAT THEIR RESULTS WERE MOVING FURTHER APART.

+ACCORDING TO ONE METHOD, THE RELATIVE SIZE OF THE PUBLIC SECTOR HAS BEEN GROWING VERY SLIGHTLY SINCE THE BEGINNING OF 1984 WHILE THE OTHER METHOD HAS IT SHRINKING, AND A LITTLE FASTER.

+WE SHOULD HAVE ONE CLEAR, COMPREHENSIVE AND DEFENSIBLE DEFINITION OF THE PUBLIC SECTOR, NOT TWO DEFINITIONS, BOTH OF WHICH ARE MANIFESTLY UNSATISFACTORY,+ SHE STRESSED.

IN CONCLUSION, MISS DUNN SAID THE FINANCIAL SECRETARY WOULD SEE HIS GREATEST RÉWARD FOR HIS FIVE YEARS HARD LABOUR IN THE FACT THAT, BARRING UNFORESEEN DEVELOPMENTS BETWEEN NOW AND NEXT JUNE, HE WOULD LEAVE HONG KONG WITH A SOUND AND STILL GROWING ECONOMY, WITH A POPULATION WHOSE PROSPERITY WOULD CONTINUE TO INCREASE AND WITH THE PUBLIC FINANCES BACK ON AN EVEN KEEL.

+ IN SHORT. HE WILL LEAVE A HONG KONG THAT CAN STILL FACE THE FUTURE WITH CONFIDENCE, SHE SAID.