XN000022-1990-03-07 — Page 23

10

WEDNESDAY, MARCH 7, 1990

TO

THAT IT HAD NOT BEEN EASY TO WHILE CONCEDING

MAINTAIN THE DISCIPLINE OF CONTROLLING THE GROWTH RATE OF EXPENDITURE CLOSE TO THAT OF THE ECONOMY AT A TIME WHEN REVENUE HAD ENABLED THE GOVERNMENT MEET EXPENDITURE, AND THAT HAD BEEN EVEN MORE DIFFICULT TO DO SO THERE WERE SUBSTANTIAL BUDGET SURPLUSES, SIR PIERS EMPHASISED THAT

SURPLUS "SHOULD BUDGET

NOT BE A REASON FOR INCURRING EXPENDITURE BEYOND OUR GUIDELINES".

WHEN A

RESERVES

"IN RECENT YEARS WE HAVE BEEN ABLE BOTH TO ADD TO OUR AND TO ALLOW THE COMMUNITY TO BENEFIT THROUGH CUTS IN TAXATION.

"BUT CONDITIONS ARE NOW CHANGING," HE SAID.

SIR

INCREASE REVENUE

то PIERS SAID THE GOVERNMENT WOULD NEED AS THE PERIOD UP TO THE TURN OF THE CENTURY WAS LIKELY TO BE DOMINATED BY THE MAJOR INFRASTRUCTURAL BUILDING PROGRAMMES.

ABLE

"ION PRESENT INDICATIONS IT SEEMS UNLIKELY THAT WE WILL BE TO FUND FROM EXISTING REVENUE RESOURCES ALL OF THE EXPENDITURE WITHOUT DRAWING ON OUR RESERVES TO A DANGEROUS EXTENT.

"FURTHERMORE, EVEN

OF THE WITH ADEQUATE CONTROL OVER

GROWTH EXPENDITURE, WE MUST STILL SEEK TO BROADEN OUR REVENUE BASE AND REDUCE ITS VULNERABILITY TO FLUCTUATIONS IN OUR ECONOMY," HE SAID.

ON THE INFRASTRUCTURAL

OF FINANCING

REST

SAID

OF THE THE BROAD

THE NEW AIRPORT AND THE

PIERS DEVELOPMENT PROGRAMME, SIR STRATEGY WAS TO BUILD ON METHODS ALREADY WELL TRIED AND TESTED IN HONG KONG.

"WE SHALL SEEK PARTICIPATION BY THE PRIVATE SECTOR IN INDIVIDUAL ATTRACTIVE PROJECTS WHICH ARE FOR ONE REASON OR ANOTHER INTRINSICALLY TO PRIVATE SECTOR INVESTMENT.

EXAMPLES RECENTLY

**THIS WILL MEAN THAT SOME PROJECTS WILL BE BUILT AND OPERATED ENTIRELY BY THE PRIVATE SECTOR," HE SAID, CITING SUCCESSFUL OF THIS APPROACH, SUCH AS THE CONTAINER TERMINALS, AND MORE THE TATE'S CAIRN TUNNEL AND THE EASTERN HARBOUR CROSSING.

AS

FOR

ITSELF. SIR TO THOSE

AIRPORT OTHER PROJECTS, MOST NOTABLY THE PIERS SAID THE GOVERNMENT PLANNED TO USE METHODS SIMILAR EMPLOYED FOR THE MASS TRANSIT RAILWAY.

"WE ENVISAGE A STATUTORY AIRPORT AUTHORITY, FINANCED BY A OF GOVERNMENT EQUITY AND LOAN FINANCING."

LASTLY, CERTAIN PROJECTS WOULD BE CARRIED OUT ENTIRELY GOVERNMENT THROUGH THE PUBLIC WORKS PROGRAMME, HE SAID.

"THE

MIX EXACT

BLEND

BY THE

BEST OVERALL BENEFIT

THE MUST ENSURE THAT WE OBTAIN RESULTS FOR HONG KONG BOTH IN TERMS OF DELIVERY AND FINANCIAL

障

IN THE LONGER TERM, HE ADDED.

/SIR PIERS