XN000022-1987-12-14 — Page 2

MONDAY, DECEMBER 14, 1987

1

JACOBS EXPLAINS ROLE OF FINANCIAL SECRETARY

* * *

THE FINANCE BRANCH OF GOVERNMENT WAS CENTRAL TO THE TERRITORY'S INTERNAL FINANCIAL STRUCTURE, HAVING THE RESPONSIBILITY NOT ONLY FOR THE COLLECTION OF REVENUE AND THE LEVYING OF TAXATION BUT ALSO THE CONTROL OF EXPENDITURE, THE FINANCIAL SECRETARY, MR PIERS JACOBS SAID AT A PO LEUNG KUK LUNCHEON TODAY (MONDAY).

SPEAKING ON THE ROLE OF THE FINANCIAL SECRETARY, MR JACOBS EXPLAINED THE AREAS OF RESPONSIBILITY UNDER HIS JURISDICTION, INCLUDING THE WORK OF FOUR POLICY BRANCHES: FINANCE, MONETARY AFFAIRS, ECONOMIC SERVICES AND TRADE AND INDUSTRY.

MANY GOVERNMENT DEPARTMENTS CHANGED IN RESPONSE TO CHANGING DEMANDS. FINANCE BRANCH, AS THE OLDEST OF THE FOUR, SHOULD NEVERTHELESS CONTINUE AS THE STRONG CENTRAL ORGANISATION WHICH PLANNED AND CONTROLLED GOVERNMENT EXPENDITURE AND WHICH ALSO RAISED THE NECESSARY REVENUE.

H

"

IT HAS THEREFORE AN ENDURING RAISON D'ETRE, HE ADDED. "ITS ROLE AND IN PARTICULAR ITS INFLUENCE MAY CHANGE FROM TIME TO TIME, PERHAPS IN RELATION TO THE STATE OF THE PUBLIC PURSE AND PERHAPS IN RELATION TO THE PERSONALITIES CONCERNED BOTH INSIDE AND OUTSIDE THE BRANCH. BUT THE BRANCH WILL ALWAYS BE WITH US, HE SAID.

"

ON THE RESPONSIVENESS OF FINANCE BRANCH, MR JACOBS SAID THAT THE ROLE OF THE BRANCH WAS ALSO CONSTANTLY CHANGING "LIKE ALL DYNAMIC ORGANISATIONS".

"THIS IS PARTICULARLY TRUE NOW AS IT IS BECOMING INCREASINGLY INVOLVED IN RATHER MORE SOPHISTICATED FORMS OF PUBLIC EXPENDITURE CONTROL AND AT THE SAME TIME IT IS MOVING AWAY FROM THE MORE TRADITIONAL AND MORE NARROWLY DEFINED FORMS OF CONTROL WHICH IT HAS EXERCISED IN THE PAST."

IN ADDITION TO THE RESOURCE DIVISIONS WHICH HAD TRADITIONALLY BEEN CHARGED WITH THE RESPONSIBILITY OF ANALYSING FINANCIAL IMPLICATIONS OF GOVERNMENT ACTIVITIES, THE FINANCIAL SECRETARY EXPANDED ON THE AMBIT OF THE MANAGEMENT ACTIVITIES WHICH HAD BEEN DEVELOPED IN THE BRANCH IN THE RECENT YEARS. THESE ACTIVITIES INCLUDED VALUE FOR MONEY STUDIES, MANAGEMENT ACCOUNTING, FINANCIAL APPRAISALS, MEDIUM RANGE FORECAST AND PRIVATISATION.

MR JACOBS ALSO SAID THAT A REVENUE DIVISION HAD BEEN ESTABLISHED TO DEVELOP A COORDINATED APPROACH TO REVENUE AND TO TAXATION POLICY. HE ADDED THAT THIS DIVISION WOULD BE RESPONSIBLE FOR IDENTIFYING, AMONG OTHER THINGS, THE ROLE OF INDIRECT TAXATION IN OUR TAXATION SYSTEM.

12