XN000022-1989-04-26 — Page 4

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WEDNESDAY, APRIL 26, 1989.

TURNING TO THE PROBLEM OF LABOUR SHORTAGE, MR LEE SAID THE RECENT DECISION BY THE ADMINISTRATION TO CONSIDER GREATER FLEXIBILITY IN BRINGING IN SKILLED LABOUR WAS, IN FAIRNESS, A STEP IN THE RIGHT DIRECTION,

HE HOPED THAT THE SITUATION WOULD BE CLOSELY MONITORED SO THAT ITS RESULTS WOULD BE CRITICALLY ASSESSED.

MR LEE SAID THE LONG-TERM SOLUTIONS TO THE PROBLEM OF LABOUR SHORTAGE WAS TO UPGRADE TECHNOLOGY WITH A VIEW TO MOVING UP-MARKET FOR HONG KONG'S MANUFACTURED PRODUCTS.

"I

IN THIS CONNECTION, I REGRET THAT Ι CANNOT CONCEAL MY DISAPPOINTMENT ABOUT THE LACK OF EMPHASIS OR A FOCAL POINT IN THIS YEAR'S BUDGET ON THE DEVELOPMENT OF SCIENCE AND TECHNOLOGY,' HE SAID.

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HE RENEWED HIS CALL FOR THE SETTING UP OF A DEPARTMENT OF SCIENCE AND TECHNOLOGY SO AS ΤΟ PLACE UNDER ONE ROOF ALL THE EXECUTIVE AUTHORITIES ENGAGED IN THE DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN HONG KONG.

ON HONG KONG'S ECONOMIC LINK WITH CHINA, MR LEE SAID THAT THERE WERE AMPLE OPPORTUNITIES FOR GROWTH IN TRADING WITH CHINA.

"GIVEN HONG KONG'S STRATEGIC POSITION AT THE GATEWAY то THE MAINLAND, WE SHOULD SEE OUR WAY TO DEVELOPING THESE OPPORTUNITIES TO THE FULL, HE SAID.

TURNING TO THE QUESTION OF BRAIN DRAIN, MR LEE SAID THAT WHATEVER THE FACTORS THAT HAD MADE PEOPLE LEAVE, IT WAS PRUDENT FOR THE GOVERNMENT TO CONSIDER WAYS TO ENSURE THAT THE ECONOMY DID NOT UNDULY SUFFER AS A RESULT.

"I SUGGEST THAT WE CAN ONLY DO THIS BY BUILDING UP PEOPLE'S CONFIDENCE THROUGH SUSTAINING HONG KONG'S GROWTH AS AN ECONOMIC AND FINANCIAL CENTRE IN THE REGION, HE SAID.

HE ADDED THAT HONG KONG SHOULD CONTINUE TO TRAIN AND EDUCATE MORE YOUNG PEOPLE TO TAKE UP JOBS LEFT OVER BY EMIGRANTS.

HE SAID THAT AS A POSITIVE MOVE TO ENCOURAGE THE MIDDLE INCOME GROUPS, OR THE SANDWICHED CLASS, то REMAIN IN HONG KONG, THE FINANCIAL SECRETARY SHOULD CONSIDER FURTHER SALARY TAX CONCESSIONS.

HE ALSO STRONGLY RECOMMENDED THAT THE FINANCIAL SECRETARY CONSIDER THE BEST MEANS POSSIBLE TO PROVIDE A MUCH NEEDED MEASURE OF TAX RELIEF FOR THE SANDWICHED CLASS IN THE NEXT FINANCIAL YEAR.

IN MAKING THIS RECOMMENDATION, HE SAID HE HAD THE SUPPORT OF THE HON MRS SELINA CHOW, WHO COULD NOT BE PRESENT AT TODAY'S LEGISLATIVE COUNCIL MEETING.

ON SALES TAX, MR LEE SAID THE FORM OF SALES TAX PROPOSED BY THE FINANCIAL SECRETARY DESERVED FURTHER EXAMINATION.

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"I FEEL OUR TAX SYSTEM IS GOOD BUT NARROWLY SUPPORT A SALES TAX IN WHOLESALE FORM IF IT IS CONCLUDED.

BASED. I WOULD MANAGEABLE," HE

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