XN000022-1986-11-26 — Page 29

WEDNESDAY, NOVEMBER 26, 1986

28

MR JACOBS POINTED TO A WELCOME SIGN OF MARKET DIVERSIFICATION, STATING THAT THERE HAD BEEN HIGHER GROWTH RATES FOR DOMESTIC EXPORTS TO JAPAN AND MAIN EUROPEAN MARKETS THAN TO THE UNITED STATES IN THE FIRST NINE MONTHS OF 1986.

HE ALSO SAID HE WAS HEARTENED BY RECENT STATISTICS SHOWING A RECOVERY IN INVESTMENT IN CAPITAL GOODS, PARTICULARLY IN THE MANUFACTURING SECTOR.

IN ADDITION, THERE HAD BEEN A SUBSTANTIAL INCREASE IN BUILDING CONSENTS FOR COMMERCIAL PROPERTY AND SOME SIGNIFICANT INCREASE IN RELATION TO INDUSTRIAL PROPERTY,

ON MATTERS RAISED IN THE DEBATE, HE SAID THERE WAS NO EVIDENCE TO SHOW EITHER THAT EXISTING LAND POLICIES WERE INSUFFICIENTLY FLEXIBLE TO MEET THE REQUIREMENTS OF MOST INDUSTRIALISTS OR THAT LAND OR ACCOMMODATION COSTS WERE ACTING AS A DISINCENTIVE TO INDUSTRIAL INVESTMENT.

AS FAR AS FINANCIAL SUPPORT TO INDUSTRY WAS CONCERNED, HE DID NOT SEE THE NEED FOR A SPECIALISED FINANCIAL INSTITUTION.

ON THE ESTABLISHMENT OF AN AUTONOMOUS SHIPPING REGISTER IN HONG KONG, MR JACOBS NOTED A PROPOSAL THAT INSTEAD OF TAXING PROFITS, REVENUE SHOULD BE COLLECTED BY THE IMPOSITION OF INITIAL REGISTRATION FEES AND ANNUAL TONNAGE DUES ON EACH SHIP REGISTERED IN HONG KONG. THIS WAS A DIFFICULT SUBJECT, HE SAID.

HOWEVER A STEERING GROUP WITH REPRESENTATIVES OF ALL SIDES OF THE SHIPPING INDUSTRY WOULD SHORTLY BE SET UP TO DEVELOP DETAILED PROPOSALS ON THE ESTABLISHMENT OF THE REGISTER. THIS WOULD BE AN APPROPRIATE FORUM TO REVIEW FULLY THE SUBJECT OF TAXES, FEES AND CHARGES.

ON A SUGGESTION THAT THE TIME HAD COME FOR THE ECONOMIC SERVICES BRANCH TO CONSIDER GIVING FURTHER SUPPORT TO THE TOURIST INDUSTRY, MR JACOBS SAID THE BASIC PHILOSOPHY OF MINIMUM GOVERNMENT REGULATION CONSISTENT WITH HONG KONG'S OVERALL INTERESTS APPLIED TO THE TOURIST INDUSTRY, JUST AS MUCH AS TO ANY OTHER INDUSTRY.

*WE HAVE EVERY REASON TO BE PROUD OF OUR TOURIST INDUSTRY AND OF THE SIGNIFICANT CONTRIBUTION IT MAKES TO THE ECONOMY, AND I AM SURE WE CAN LOOK TO IT TO CONTINUE TO MEET THE CHALLENGES OF THE FUTURE ON ITS OWN INITIATIVE, HE SAID.

REFERRING TO DEMANDS MADE ON THE AIRPORT, MR JACOBS SAID IT WAS EXPECTED THAT KAI TAK WOULD BE ABLE TO COPE WITH TRAFFIC FOR A CONSIDERABLY LONGER PERIOD THAN JUST A FURTHER FIVE YEARS.

BUT HE EMPHASISED THAT NEEDS IN RELATION TO AIRPORT CAPACITY WERE RE-EXAMINED PERIODICALLY.

/ON ILLUES