XN000022-1989-11-08 — Page 18

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WEDNESDAY, NOVEMBER 8, 1989

"THERE IS NO DOUBT THAT A SIGNIFICANT PROPORTION OF THE PHYSICAL INFRASTRUCTURAL PROJECTS WILL PROVE ATTRACTIVE TO PRIVATE SECTOR INVESTORS OR LENDERS BY VIRTURE OF THE REVENUE THEY WILL GENERATE, HE ADDED.

AS

FOR THE AIRPORT. THE INITIAL THINKING WAS THAT THE AIRPORT AUTHORITY, LIKE THE MASS TRANSIT RAILWAY CORPORATION. WOULD BE FUNDED THROUGH GOVERNMENT EQUITY AND PRIVATE LOAN FINANCE, SIR PIERS SAID.

"BUT WE HAVE NOT RULED OUT THE POSSIBILITY OF INVOLVING PRIVATE EQUITY AT A LATER STAGE," HE ADDED.

PRIVATE

"WE ARE BUILDING HERE ON OUR SUCCESSFUL EXPERIENCE IN SECTOR FINANCING OF MAJOR PROJECTS SUCH AS ROAD TUNNELS, RAILWAYS AND CONTAINER TERMINALS.

"WE SHALL ALSO BE ABLE, IF NECESSARY. TO DRAW TO SOME EXTENT ON, OUR ACCUMULATED RESERVES." THE FINANCIAL SECRETARY FOINTED OUT.

SIR PIERS NOTED THAT $7 BILLION HAD ALREADY BEEN SET ASIDE FOR THIS PURPOSE BUT WARNED THAT IF HONG KONG WAS TO REMAIN ATTRACTIVE TO INVESTORS, THERE WAS A NEED TO ENSURE THAT OUR FINANCIAL POSITION, INCLUDING OUR RESERVES, REMAINED STRONG.

"TO ACHIEVE THIS, WE MUST TAKE A MEASURED, PRUDENT AND STRUCTURED APPROACH TO THE MANAGEMENT OF OUR FINANCES, HE SAID.

IN SHORT, I AM CONFIDENT THAT WE AS A COMMUNITY CAN AFFORD THIS AMBITIOUS PROGRAMME. BUT TO DO SO IT WILL BE NECESSARY ΤΟ BE REALISTIC, CRITICAL, AND DISCIPLINED ABOUT OUR OTHER PRIORITIES, AND THE RESOURCES DEVOTED TO EXISTING SERVICES. HE ADDED.

**WE SHALL HAVE TO EXERCISE FIRM FINANCIAL DISCIPLINE IN ALL AREAS OF GOVERNMENT ACTIVITY, NOT ONLY IN NEW PROJECTS AND NEW SERVICES. BUT AS IMPORTANTLY IN THE EFFICIENT AND EFFECTIVE DELIVERY OF EXISTING SERVICES, HE SAID.

F

THE FINANCIAL SECRETARY SAID A VIGOROUS ATTACK ON BASELINE OR ON-GOING EXPENDITURE WOULD BE A CRUCIAL ELEMENT IN SECURING THE ADDITIONAL RESOURCES NEEDED.

"IN OTHER WORDS, ALL GOVERNMENT EXPENDITURE MUST BE PUT SCRUTINY AND SUBJECTED TO SEARCHING ANALYSIS AND ENQUIRY.

UNDER

"AS ONE MEMBER MENTIONED, THERE IS A NERD то PHASE OTHER DEVELOPMENTS TO MINIMISE THE IMPACT OF THE PORT AND AIRPORT RELATED PROJECTS ON OUR RESOURCES. I WOULD ONLY ADD THAT THIS ALSO APPLIES SERVICES, AND NOT JUST INFRASTRUCTURAL OR OTHER DEVELOPMENTS, ADDED.

EXPENDITURE

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HE

AND

THE

AS A FIRST STEP TOWARDS CONTROLLING EXISTING ENCOURAGING REDEPLOYMENT OF STAFF AND INCREASED EFFICIENCY, GOVERNMENT HAD INTRODUCED TIGHTER CONTROLS ON THE GROWTH OF THE CIVIL SERVICE. SIR PIERS NOTED.

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