XN000022-1988-04-20 — Page 24

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WEDNESDAY, APRIL 20, 1988

PRUDENT APPROACH DESERVES SUPPORT

PROJECTS

THE VARIOUS MAJOR DEVELOPMENT

NOW IN THE PIPELINE WOULD PLACE A VERY HEAVY DEMAND ON HONG KONO'S RESERVES, AND THEREFORE THE FINANCIAL SECRETARY'S PRUDENT APPROACH IN CONTROLLING EXPENDITURE GROWTH SHOULD BE SUPPORTED, THE HON EDWARD HO SAID TODAY (WEDNESDAY).

SPEAKING DURING THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, MR HO NOTED THAT THE FINANCIAL SECRETARY'S MEDIUM RANGE FORECAST INDICATED A SATISFACTORY LEVEL OF RESERVES FOR THE PERIOD UP TO 1991-92.

4

"YET, IF ONE EXAMINES BOTH THE FORECAST ON CONSOLIDATED CASH SURPLUS AND ON RESERVE BALANCES AS A PERCENTAGE OF GOVERNMENT EXPENDITURE, ONE WOULD NOTICE THAT THE AMOUNT WILL BE ON A DECLINING TREND AFTER 1989-90," HE SAID.

THE MEDIUM RANGE FORECAST DID NOT INCLUDE THE VERY MAJOR CAPITAL INTENSIVE INFRASTRUCTURAL DEVELOPMENT PROJECTS THAT WERE LIKELY TO START RIGHT AFTER THE FORECAST PERIOD, IN THE EARLY 1990'S.

HE THEREFORE SUBSCRIBED WHOLEHEARTEDLY TO THE PRUDENT APPROACH THAT WAS EVIDENT IN THE BUDGET.

MR HO SAID THAT VARIOUS DEVELOPMENT PROJECTS WERE VITAL ΤΟ HONG KONG IF IT WAS TO MAINTAIN ITS POSITION AS A MAJOR INTERNATIONAL FINANCIAL, COMMERCIAL AND TOURIST CENTRE.

TAK

"IT IS NOW QUITE CLEAR THAT THE HANDLING CAPACITY OF ΚΑΙ AIRPORT FOR PASSENGERS AND CARGO HANDLING WILL BE OVERSATURATED BEFORE A NEW REPLACEMENT AIRPORT CAN BECOME OPERATIONAL.

"HONG KONG'S ALREADY PRIME POSITION AS A CONTAINER TERMINAL PORT, ITS RAPIDLY INCREASING TRADE WITH CHINA AND THE ASSOCIATED GROWTH OF RE-EXPORTS ALL MEAN THAT WE WILL NEED TO CONTINUE то INCREASE EXTENSIVELY OUR PORT FACILITIES,

Fr

HE SAID.

GOVERNMENT

MR HO NOTED THAT SOME PEOPLE, WHEN DISCUSSING INFRASTRUCTURAL DEVELOPMENT, HAD SUGGESTED THAT THE

SHOULD NOT RELY ON PRIVATE CONSULTANTS

MORE OF SUCH WORK

ITSELF.

AND SHOULD INSTEAD SHOULDER

CONSULTANCY STUDIES

HOLDING A DIFFERENT VIEW, HE SAID IF SUCH OR PROJECTS WERE ABSOLUTELY NECESSARY AND IF THE GOVERNMENT DID NOT POSSESS THE MANPOWER OR EXPERTISE TO CARRY OUT SUCH WORK, THERE WAS NOTHING WRONG IN ENGAGING CONSULTANTS FROM THE PRIVATE SECTOR.

TURNING TO THE QUESTION OF A "BRAIN DRAIN OF THE PROFESSIONAL AND MANAGERIAL CLASSES FROM HONG KONG, MR HO SAID HE WAS CONCERNED ABOUT THE PROBLEM AND YET HE DID NOT KNOW WHETHER IT NOT AND HOW IT WOULD EFFECT THE ECONOMY.

WAS

SERIOUS OR

/"IT IS