XN000022-1987-02-25 — Page 8

WEDNESDAY, FEBRUARY 25, 1987

STABLE FUNDING, STEADY DEVELOPMENT KEY FACTORS

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THE EFFICIENT PROVISION OF PUBLIC SERVICES REQUIRES STABLE FUNDING AND STEADY RATHER THAN ERRATIC DEVELOPMENT, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SUNNING UP HIS BUDGET SPEECH, MR JACOBS SAID THE MANAGEMENT OF PUBLIC FINANCES DEPENDED TO A GREAT EXTENT ON THE GOVERNMENT CONTINUING TO PAY CLOSE ATTENTION TO TRENDS AND ON THE TAKING OF EARLY ACTION WHERE NECESSARY TO AVOID MORE EXTREME MEASURES AT A LATER DATE.

STRESSING THE NEED FOR CONTINUITY OF POLICIES, HE SAID: +VE HAVE ENJOYED REMARKABLE ECONOMIC GROWTH AND FROM THIS WE HAVE GAINED THE RESOURCES TO FINANCE THE MANY DEVELOPMENTS AND PUBLIC SERVICES THAT OUR COMMUNITY HAS RIGHTLY COME TO EXPECT.

+THE UNDERLYING TRENDS NOW SEEM FAVOURABLE, AND IT IS FOR THIS REASON THAT I HAVE FELT ABLE TO PROPOSE A SUBGET THAT REPRESENTS BOTH FURTHER IMPROVEMENTS IN PUBLIC SERVICES AND A LOVERING OF THE BURDEN ON THE TAXPAYER.+

+BUT WE MUST BE CAUTIOUS,+ HE ADDED, +OUR ECONOMY REMAINS SUBJECT TO EXTERNAL FACTORS, INCLUDING THE THREAT OF PROTECTIONISM,+

+WE MUST THEREFORE BE CAREFUL NOT TO MOVE QUICKLY IN TERMS OF COMMITTING OURSELVES TO GREATER EXPENDITURE OR FOREGOING REVENUE.

IN SHAPING HONG KONG'S PUBLIC FINANCES, MR JACOBS SAID HE WISHED TO PRESERVE AND FOSTER AN ENVIRONMENT IN WHICH BUSINESS COULD FLOURISH, NOT SIMPLY BECAUSE HE WANTED TO SEE BUSINESS MORE PROFITABLE, BUT ALSO BECAUSE IT WAS ONLY IN A FAVOURABLE BUSINESS ENVIRONMENT THAT INVESTMENT WOULD GROW AND VELL PAID JOBS WOULD CONTINUE TO BE CREATED.

+THIS IS THE WAY TO MAINTAIN STABILITY,* NË SAID.

TURNING TO THE FINANCIAL SECTOR, MR JACOBS REITERATED THAT A SOUND REPUTATION WAS VITAL TO HONG KÒNG'S CONTINUING GROWTH IN THIS AREA.

+PROBLEMS ARE NOT UNIQUE TO ANY PARTICULAR FINANCIAL CENTRE,+

HE SAIB.

+ALL THOSE INVOLVED WITH FINANCIAL SERVICES, WHETHER IN BUSINESS OR IN REGULATORY OR SUPERVISORY ACTIVITIES, HAVE A COMMON INTEREST.

/+WE MUST