XN000022-1987-03-18 — Page 28

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WEDNESDAY, MARCH 18, 1987

MR LI REITERATED THE VIEW THAT THE BANKING ORDINANCE SHOULD BE ADMINISTERED WITH A HIGH DEGREE OF FLEXIBILITY.

IN PARTICULAR, THE GOVERNMENT SHOULD ALLOW AUTHORISED INSTITUTIONS TO HAVE GREATER FREEDOM IN DEALING WITH SECURITIES RELATED BUSINESS.

HE SAID SECURITISATION COULD ALSO GIVE RISE TO A FALSE SENSE OF LIQUIDITY AND SINCE THE POTENTIAL DANGER ARISING FROM A LIQUIDITY CRISIS UNDER CURRENT ARRANGEMENTS WAS EVER PRESENT, THE GOVERNMENT SHOULD SERIOUSLY CONSIDER BUILDING-IN THE NECESSARY SAFETY-VALVE, NAMELY AN OFFICIAL DISCOUNT FACILITY.

ON MATTERS RELATING TO SECURITISATION, MR LI POINTED OUT THAT THERE WAS AT PRESENT THE PROBLEM OF AUTHORITY DIVIDED BETWEEN THE COMMISSIONER OF BANKING AND THE COMMISSIONER OF SECURITIES.

HE SUGGESTED THAT THE SECRETARY FOR MONETARY AFFAIRS SHOULD DEVISE A SYSTEM WHEREBY ALL MATTERS AFFECTING THE BANKING INDUSTRY BE DEALT WITH SOLELY BY THE COMMISSIONER OF BANKING.

MORE FUNDS NEEDED TO IMPROVE RURAL FACILITIES

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THE HON TAI CHIN-WAH TODAY (WEDNESDAY) URGED THE GOVERNMENT TO ALLOCATE MORE FUNDS TO IMPROVE RURAL FACILITIES AND THE ENVIRONMENT OF VILLAGES IN THE NEW TERRITORIES.

SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE BUDGET DEBATE, MR TAI SAID PEOPLE IN URBAN AREAS AND SATELLITE TOWNS ENJOYED A COMPARATIVELY UP-TO-STANDARD LIVING, WHILE THE VILLAGE AND RURAL POPULATION ENJOYED APPRECIABLY LESS THAN THEIR URBAN COUNTERPART.

HE NOTED THAT THE POPULATION LIVING IN THE COUNTRY AND THE VILLAGES OUTSIDE NEW TOWNS IN THE NEW TERRITORIES NUMBERED ABOUT 290 000 AND THE EXPENDITURE ALLOCATED TO LOCAL PUBLIC WORKS FOR 1987-88 WAS $13 MILLION.

+ BEARING IN MIND THAT THERE ARE 600 VILLAGES IN THE NEW TERRITORIES, THE AMOUNT ALLOCATED WILL BE INADEQUATE TO COPE WITH NECESSARY IMPROVEMENTS IN RURAL FACILITIES AND IN THE ENVIRONMENT OF VILLAGES IN THE NEW TERRITORIES, HE SAID.

MR TAI NOTED THAT THERE WAS ALSO THE PROBLEM OF RURAL ISOLATION AND DIFFICULTY OF ACCESS TO AND BETWEEN VILLAGES IN THE NEW TERRITORIES. THE QUESTION OF PRIVATE LAND WAS THE MAJOR OBSTACLE IN BUILDING AND MAINTAINING VILLAGE ACCESS.

/ONE POSSIBLE