XN000022-1988-03-02 — Page 19

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WEDNESDAY, MARCH 2, 1988

PRIORITIES VITAL FOR SUSTAINED EXPENDITURE GROWTH

DEPLOYMENT

or

OF SUSTAINED

ATTENTION TO PRIORITIES AND TO THE EFFECTIVE RESOURCES IS PARTICULARLY IMPORTANT IN A PERIOD EXPENDITURE GROWTH, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN HIS BUDGET SPEECH, MR JACOBS SAID IT WAS THEREFORE ESSENTIAL THAT THE SYSTEMS FOR APPRAISING RESOURCE ALLOCATION BR FURTHER REFINED.

"WE AIM TO ENSURE THAT DECISIONS ARE MADE IN THE CONTEXT OF PLANNING FOR SEVERAL YEARS AHEAD, HE SAID.

T

MR JACOBS SAID AVERAGE ANNUAL GROWTH IN CONSOLIDATED ACCOUNT EXPENDITURE OVER THE FORECAST PERIOD WAS PROJECTED TO BE 5.4 PER CENT IN REAL TERMS.

"THIS IS JUST A LITTLE HIGHER THAN THE 5.0 PER CENT CONTAINED IN MY 1987-88 BUDGET STRATEGY, BUT REMAINS WITHIN THE TREND GROWTH RATE ASSUMPTION FOR GDP, HE SAID.

SUCH

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HE SAID IT WAS IMPORTANT NOT TO LOSE SIGHT OF THE FACT THAT A GROWTH RATE IN EXPENDITURE MEANT THAT PUBLIC SECTOR EXPENDITURE WOULD ALMOST DOUBLE BY THE END OF THE NEXT DECADE.

DETAILED THE

MR JACOBS DREW ATTENTION TO THE FACT THAT THE ESTIMATES WHICH HE PRESENTED TODAY MADE PROVISION FOR GROWTH IN SIZE OF THE CIVIL SERVICE OF SOME FOUR PER CENT IN 1988-89.

"THIS IS LARGELY DUE TO THE STAFFING IMPACT OF SOME MAJOR NEW MEDICAL FACILITIES AND THE BUILD UP OF THE POLICE TACTICAL UNIT IN PREPARATION FOR TAKING OVER THE WORK OF THE BRITISH GARRISON.

"THESE AND OTHER FACTORS PUSH STAFF GROWTH BEYOND OUR TARGET

OF 2.5 PER CENT A YEAR, HE SAID.

MR JACOBS SAID THERE WERE POTENTIALLY SERIOUS IMPLICATIONS IF SUCH A HIGH GROWTH RATE OF FOUR PER CENT IN THE SIZE OF THE CIVIL SERVICE WERE TO CONTINUE.

HE SAID THE TOTAL LABOUR FORCE, WHICH EXPANDED BY AN AVERAGE OF 3.8 PER CENT IN THE 1970'S AND 2.4 PER CENT IN THE FIRST PART OF THIS DECADE, WAS EXPECTED TO GROW BY ONLY 1.4 PER CENT FOR THE REMAINDER OF THIS DECADE.

"ALSO, THIS RAPID GROWTH IN THE SIZE OF THE CIVIL SERVICE OCCURS AT A TIME WHEN THE UNEMPLOYMENT RATE IS PARTICULARLY LOW," HE SAID.

"IT MAY BE UNAVOIDABLE IN THE SHORT TERM, BUT IT CANNOT BE PERMITTED TO CONTINUE INDEFINITELY," HE ADDED.

/TURNING TO