XN000022-1989-04-27 — Page 18

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THURSDAY, APRIL 27, 1989

AS FOR

THE

PUBLIC REVENUE STRATEGY, DIRECT MAINTAINING LOW

TAX WAS ESSENTIAL DEVELOPMENT AS A LOW-TAX INTERNATIONAL CITY.

LAU MR

BELIEVED THAT

FOR THE

CONTINUOUS

"WE SHOULD THEREFORE EXPLORE NEW SOURCES OF REVENUE WHICH LESS AFFECTED BY THE CYCLICAL MOVEMENTS OF OUR ECONOMY AND ALSO DEPENDENT ON OUR DIRECT TAX.

"PERSONALLY I THINK THE SALES TAX IS A GOOD SOURCE, BUT KNOW THERE ARE MANY PROBLEMS WHICH ARE DIFFICULT TO OVERCOME, IT IS LEVIED AT WHOLESALE OR RETAIL LEVEL," MR LAU SAID.

HE BELIEVED THAT UNLESS WE COULD RESOLVE ALL TAX WOULD NOT BE ACCEPTABLE TO THE PUBLIC.

ARE

LESS

I DO WHETHER

PROBLEMS, SALES

PUBLIC UTILITIES REVENUE AND CROSS HARBOUR

MR LAU SAID OVER THE YEARS, MANY PRIVILEGED UNDERTAKINGS HAD BEEN ENJOYING COMPOUND GROWTH BOTH IN PROFIT, SUCH AS OUR LOCAL AIRLINE, CONTAINER TERMINALS, TUNNEL AND POWER STATIONS.

FROM NORMAL

CHARGES, FEE AND ENJOYED ANY SHARE OF

THROUGH PROFIT

THE EQUITY

HE NOTED THAT APART

HAD NOT GOVERNMENT PARTICIPATION EXCEPT THE CROSS-HARBOUR TUNNEL.

TREND SIMILAR.

THESE OF

"SINCE WE ARE CONFIDENT IN OUR FUTURE ECONOMIC GROWTH,

SHOULD CONTINUE PRIVILEGED PUBLIC UNDERTAKINGS GROWTH.

"GOVERNMENT SHOULD SHARE THE BENEFITS OF THROUGH EQUITY PARTICIPATION," HE ADDED.

THEIR

PROSPERITY

SAY,

MR LAU SAID ONE WOULD IMAGINE THAT IF THE GOVERNMENT HAD, 25 PER CENT OF EQUITY IN OUR LOCAL AIRLINE COMPANY OR OTHER PRIVILEGED UNDERTAKINGS, REVENUE FROM THIS SOURCE COULD BE VERY SUBSTANTIAL.

"I AM SURE THERE WILL BE MANY ARGUMENTS FOR AND AGAINST TAPPING THIS SOURCE OF REVENUE.

ARE

WITH BY

"SOME MAY ARGUE THAT THESE PRIVILEGED PUBLIC UNDERTAKINGS

WHICH SHOULD ENTERPRISE'

NOT BE

INTERFERED

'PRIVATE GOVERNMENT.

MR

LAU SAID HIS SUGGESTION WAS AIMED WITHOUT MANAGEMENT INTERFERENCE.

AT

INVESTMENT

RETURNS

ΤΟ

ALWAYS

"AS THERE ARE NEW PROJECTS SUCH AS THE NEW AIRPORT WE NEED

TAKING

OPPORTUNITIES EQUITY PARTICIPATION AND

CONSIDER AVAILABLE.

BY THE

ARE

"MAY I SUGGEST THAT THIS SOURCE OF REVENUE BE CAREFULLY STUDIED

CENTRAL POLICY UNIT WHEN GOVERNMENT GRANTS OR

OPERATING

PRIVILEGES

TO THE EXISTING PUBLIC

RENEWS OTHER

UNDERTAKINGS,"

MR

LAU

CONCLUDED.

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