XN000022-1988-04-21 — Page 14

THURSDAY, APRIL 21, 1988

13

"IN 1970, A WORKING WIFE ALLOWANCE WAS INTRODUCED ONLY ΤΟ BB REMOVED THREE YEARS LATER, SHE SAID.

"I WOULD NOT WISR ΤΟ SER THE PRESENT INTRODUCTION ALLOWANCE FACE THE SAME FATE. BUT IF THE FINANICAL SECRETARY SEPARATE TAXATION AS A FEATURE OF OUR TAX SYSTEM, THEN I CAN CONFIDENT OF ITS CONTINUATION."

SHE NOTED THAT THE FINANCIAL SECRETARY HAD SAID THAT THE COMPLEXITY OF THE SUBJECT, IT WOULD NOT BE FEASIBLE TO SEPARATE TAXATION OVERNIGHT.

OF THE ACCEPTS BE MORE

OWING TO INTRODUCE

SHE ALSO NOTED THAT PRESS REPORTS HAD QUOTED THE FINANCIAL BECRETARY AS SAYING THAT IF PEOPLE WISHED TO INFLUENCE THE BUDGET THEY REALLY NEEDED TO START AT LEAST SIX MONTHS AHEAD, AND THAT THE REPRESENTATION FROM LEGISLATIVE COUNCILLORS ON SEPARATE TAXATION CAME ABOUT THREE MONTHS BEFORE THE BUDGET AND WAS THEREFORE тоо LATE ΤΟ HAVE ANY IMPACT.

"FOR THE SAKE OF THE RECORD, I WISH ΤΟ POINT OUT THAT THE FIRST WRITTEN REPRESENTATION FROM THE OMELCO TAXATION PANEL URGING SEPARATE TAXATION WAS SUBMITTED ΤΟ THE FINANCIAL SECRETARY IN FEBRUARY 1987, AND THIS WAS FOLLOWED BY A PERSONAL VISIT TO THE FINANCIAL SECRETARY TO CONVEY THE STRENGTH OF THE PANEL'S VIEW BY THE HON PETER POON, CONVENOR OF THE OMELCO TAXATION PANEL, AND MYSELF, SHE SAID.

"OUR VIEWS AND REQUEST WERE RELATED TO THE FINANCIAL SECRETARY 12 MONTHS IN ADVANCE OF THE PRESENT BUDGET. THE REPRESENTATION REFERRED TO BY THE FINANCIAL SECRETARY WAS IN FACT THE SECOND ONE.

"ARE WE TO BELIEVE THAT THE FINANCIAL SECRETARY AND HIS TOP AIDES HAD FORGOTTEN ABOUT THE FIRST REPRESENTATION?

"IS IT POSSIBLE THAT THEY DID NOT HEAR THE 12 COUNCILLORS ON. MARCH 18, 1987 URGING FOR SEPARATE TAXATION, THE SPEECH OF THREE MEMBERS ON NOVEMBER 5, 1987 ALONG THE SAME LINE, NOT TO MENTION ALL THE PREVIOUS SPEECHES IN PRECEDING YEARS?"

SHE SAID THE FINANCIAL SECRETARY REFERRED ΤΟ THE COMPLEXITY AND DIFFICULTIES IN ENSURING BROADLY EQUITABLE TREATMENT IN SEPARATE TAXATION.

"WE KNOW WHAT THEY ARE, BECAUSE THEY HAVE BEEN REFERRED ΤΟ MANY TIMES BY THE TOP AIDES OF THE FINANCIAL SECRETARY.

"BUT MANY, LIKE ME, REMAIN UNCONVINCED THAT SUCH TECHNICAL DIFFICULTIES SHOULD NECESSARILY DELAY THE IMPLEMENTATION FOR AT LEAST TWO YEARS. IN ORDER TO BE FAIR. THE TAXATION PANEL REQUESTED IN DECEMBER 1987 A PAPER OUTLINING THE DIFFICULTIES.

"THE ADMINISTRATION UNDERTOOK TO PREPARE SUCH A PAPER. WHEN THE PANEL MET WITH THE ADMINISTRATION IN FEBRUARY 1988, THERE WAS NO PAPER NOR COULD THE ADMINISTRATION CLEARLY INDICATE WHETHER THEY HAD STARTED WORKING ON THIS."

MRS FAN