XN000022-1988-04-20 — Page 7

WEDNESDAY, APRIL 20, 1988

THERE WERE OTHER ASPECTS LIKE EDUCATION, SOCIAL SERVICES, SPORTS AND RECREATION WHICH DESERVED SERIOUS ATTENTION.

"FURTHERMORE, HONG KONG'S MAJOR ASSET IS ITS PEOPLE, NOT THE HUGE RESERVES IT HAS PUT IN STOCK, HE COMMENTED.

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"TO ENSURE HONG KONG CAN SURVIVE AND MEET THE CHALLENGES AHEAD, WE HAVE TO MAKE SURE THE LOCAL COMMUNITY AS A WHOLE IS READY AND FULLY EQUIPPED," HE ADDED.

MR HU REGRETTED THAT NO EFFECTIVE MEASURES HAD BEEN TAKEN TO TACKLE THE SHORTAGE OF LABOUR, WHICH HAD BECOME A CONTROVERSIAL TOPIC.

HE SAID IF NO PRACTICAL SOLUTION WAS DEVISED IN TIME, THERE WOULD BE LONG-TERM ADVERSE EFFECTS ON THE ECONOMY.

"THE QUALITY OF SERVICES AND PRODUCTS WILL DETERIORATE WHILE COSTS WILL GO UP. AS A RESULT, THIS WILL HAMPER OUR COMPETITIVENESS AND ULTIMATELY AFFECT HONG KONG'S ECONOMIC WELL-BEING, HE SAID.

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TO TACKLE THE PROBLEM, MR HU SUGGESTED THAT THE GOVERNMENT SHOULD CONSIDER TAKING BOLDER STEPS SUCH AS IMPORTING WORKERS FROM NEIGHBOURING COUNTRIES ON A CONTRACTUAL BASIS.

HE EXPLAINED THAT UNDER THIS ARRANGEMENT HIONG KONG WOULD ALWAYS HAVE A SUFFICIENT SUPPLY OF LABOUR FOR IT'S INDUSTRIES.

FURTHERMORE, THE CONTRACTUAL ARRANGEMENTS COULD MAKE SURE THAT THE FOREIGN WORKERS CONCERNED WOULD NOT STAY HERE WHEN DEMAND FOR THEM HAD FALLEN.

TURNING TO THE PROPOSED INTRODUCTION OF A SALES TAX, MR HU AGREED THAT THERE WAS A NEED TO DEVELOP A BROADLY BASED TAX SYSTEM AND TO SPREAD THE TAX BURDEN MORE WIDELY ACROSS THE COMMUNITY.

HOWEVER, HE WARNED THAT CAUTION MUST BE EXERCISED IN DETERMINING WHICH KINDS OF COMMODITIES WERE TO BE TAXED, ΤΟ AVOID INCLUDING BASIC NECESSITIES AS IT MIGHT LEAD TO RISING COSTS AND FUEL INFLATION,

MR HU WELCOMED THE CHANGE OF THE HOUSING AUTHORITY INTO A STATUTORY BODY, SAYING THAT THIS WOULD ALLOW THE AUTHORITY TO HAVE A GREATER DEGRER OF FLEXIBILITY AND INDEPENDENCE IN OPERATION, AS WELL AS A FREER HAND IN CO-OPERATING WITH THE PRIVATE SECTOR IN DEVELOPING MORE L'OMPREHENSIVE HOUSING PROGRAMMES.

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THE AUTHORITY'S FINANCIAL HIGHER RENTS," HE SAID.

HOWEVER, THE GOVERNMENT MUST TAKE INTO INDEPENDENCE MIGHT

ACCOUNT CONCERN THAT COMPEL IT ΤΟ IMPOSE

/TURNING TO