XN000022-1987-02-25 — Page 32

WEDNESDAY, FEBRUARY 25, 1987

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ALLOWING FOR INEVITABLE LEAD TIMES, HE SAID, IT WOULD TAKE A WHILE FOR THIS BOOST IN CAPITAL SPENDING TO BE REFLECTED IN CASH FLOWS.

+FOR 1987-88 THERE IS ROOM FOR MORE IMMEDIATE EXPENDITURE, WHICH WILL HAVE A POSITIVE IMPACT ON GOVERNMENT'S LONGER TERM POSITION BOTH FINANCIALLY AND IN TERMS OF EFFICIENCY, HE SAID.

+ HAVE IN MIND SOME RATIONALISATION OF GOVERNMENT'S ACCOMMODATION, AND A VARIETY OF MEASURES INVOLVING, FOR EXAMPLE, COMPUTERISATION AND EQUIPMENT RENEWAL. +

MR JACOBS CONTINUED THAT REVENUE ACCRUING DIRECTLY TO THE FUNDS COMPRISED RECEIPTS FROM A COMBINATION OF LAND SALES, LOAN REPAYMENTS INTEREST PAYMENTS AND SALES OF FLATS UNDER THE HOME OWNERSHIP SCHEME.

+THE ESTIMATED REVENUE FOR 1987-88 IS $4.7 BILLION COMPARED WITH A REVISED ESTIMATE FOR THE CURRENT YEAR OF $4.0 BILLION.

+THE OVERALL SITUATION OF THE FUNDS AFTER MAKING THE TRANSFERS FROM GENERAL REVENUE ACCOUNT IS AN ESTIMATED SMALL INCREASE IN THEIR BALANCES OF $0.6 BILLION OR ABOUT 5 PER CENT OF THEIR CURRENT LEVELS.

WE

+THIS WILL MAINTAIN THE REAL VALUE OF THESE BALANCES. NEED SUFFICIENT IN THE FUNDS BEARING IN MIND THE BOOST THAT I AM PROPOSING IN CAPITAL SPENDING AND ITS LONGER TERM IMPACT ON CASH FLOW.

+TAKING THE GENERAL REVENUE ACCOUNT SURPLUS AND GROWTH IN FUND BALANCES TOGETHER GIVES AN ESTIMATED OVERALL SURPLUS FOR THE YEAR OF $2.4 BILLION, HE SAID.

DUTIABLE COMMODITIES MEASURES TO RAISE EXTRA $165 MILLION *****

MEASURES ARE AT HAND TO RAISE AN ADDITIONAL REVENUE OF $165 MILLION FROM DUTIABLE COMMODITIES IN 1987-88, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THESE MEASURES -- ALL COMING INTO EFFECT THIS AFTERNOON ARE TO INCREASE THE DUTY RATES ON IMPORTED HYDROCARBON OIL, INTOXICATING LIQUOR AND IMPORTED ALCOHOL, AND IMPORTED TOBACCO

/MR JACOBS