XN000022-1988-05-04 — Page 15

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WEDNESDAY, MAY 4, 1988

BUDGET PROVIDES STABILITY, CONTINUITY

STABILITY AND CONTINUITY IS WHAT HONG KONG NEEDS IN ITS FISCAL MANAGEMENT, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) WHEN WINDING UP DEBATE ON HIS 1988-89 BUDGET.

"I CONSIDER THAT IS BOTH WHAT MY BUDGET STRATEGY IS DELIVERING AND WHAT THIS COMMUNITY WANTS - A LOW AND PREDICTABLE TAX REGIME, STRONG RESERVES COMBINED WITH STEADY GROWTH IN PUBLIC EXPENDITURE, HE SAID.

MR JACOBS NOTED THAT A NUMBER OF MEMBERS HAD CALLED FOR A REVIEW OF THE STRUCTURE AND OPERATION OF THE TAXATION SYSTEM.

"I AM CONSCIOUS OF THE NEED TO ENSURE THAT THE STRUCTURE OF OUR TAXATION SYSTEM IS KEPT UP ΤΟ DATE, AND THAT ITS OPERATION REMAINS RESPONSIVE TO THE CHANGING NEEDS OF OUR COMMUNITY, HE SAID.

*

MR JACOBS ALSO REFERRED TO THE COMMENTS BY SOME MEMBERS THAT HIS BUDGET LACKED A THEME, THAT IT WAS A BOOK-KEEPER'S BUDGET AND THAT IT LACKED FORESIGHT AND INNOVATION.

"MAYBE, IN SOMEWHERE AS UNDENIABLY EXCITING AS HONG KONG, WE HAVE COME TOO READILY TO EXPECT DRAMA AS THE NORM, HE SAID.

"BUT, IT IS THE SUCCESSFUL

ESSENCE OF MY STRATEGY.'

"

AVOIDANCE OF DRAMA THAT IS THE

EARLIER, IN REFERRING TO COMMENTS ON HIS EXPENDITURE PROPOSALS, MR JACOBS NOTED THAT THE SENIOR MEMBER, THE HON LYDIA

DUNN, FAVOURED A REVENUE-LED BUDGET.

OUR

HE SAID: "I CERTAINLY SUPPORT THE CONCEPT OF LIVING WITHIN MEANS. HOWEVER, IF WE HAVE TO DESCRIBE THE BUDGET AS ONE BEING LED

TO TALK IN ANYTHING, I WOULD PREFER

TERMS OF ITS

LED BEING UNDERLYING TRENDS IN OUR ECONOMIC GROWTH.

BY BY

ON CALLS FOR DEVELOPING SYSTEMS FOR RESOURCE PLANNING AND ALLOCATION, MR JACOBS SAID THIS WAS SOMETHING TO WHICH THE GOVERNMENT WAS PAYING CONSIDERABLE ATTENTION, PROGRES9 WAS BEING MADE AND FURTHER DEVELOPMENTS WERE TAKING PLACE IN THE BUDGETARY CYCLE THAT HAD ALREADY COMMENCED FOR 1989-90.

TURNING TO THE GROWING USE OF STATUTORY AUTHORITIES FOR

THE PUBLIC, MR PROVIDING SERVICES TO

JACOBS SAID WORK HAD BEEN INITIATED WITHIN THE ADMINISTRATION TO DEFINE AN OVERALL FRAMEWORK WITHIN WHICH THE GOVERNMENT WOULD EXERCISE ITS CONTINUING FINANCIAL INTEREST IN THESE AUTHORITIES.

POLICY AND

/MR JACOBS