XN000022-1990-04-25 — Page 5

WEDNESDAY, APRIL 25, 1990

"THE RESULT IS THAT WE SHALL GO DOWN A SLIPPERY SLOPE OF RISING INFLATION, SHE SAID.

ON THE SHORTAGE OF MANPOWER AND SKILLED LABOUR WHICH WOULD RESTRAIN THE DEVELOPMENT OF ECONOMIC ACTIVITIES, MISS TAM SUGGESTED THAT THE FINANCIAL SECRETARY SHOULD GIVE AN ASSESSMENT OF THE IMPORTED LABOUR SCHEME LAUNCHED LAST MAY.

1990 BUDGET SENSIBLE

THE 1990 BUDGET IS A SENSIBLE ONE BUT A LOT HAS TO BE DONE ΤΟ ENSURE SUFFICIENT REVENUE FOR INCREASING EXPENDITURE AND TIGHTER CONTROL OF THE ENORMOUS PUBLIC SECTOR EXPENDITURE, HON PETER POON SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING IN THE BUDGET DEBATE, MR POON URGED HONG KONG PEOPLE TO WORK HARD DURING THIS TIME OF SLOW ECONOMIC PROGRESS SO AS ΤΟ CONTRIBUTE TO FUTURE SUCCESS.

HE SAID THE ECONOMIC PERFORMANCE IN 1989 HAD BEEN DISAPPOINTING WITH A GROWTH RATE OF 2.4 PER CENT AND HONG KONG HAD ΤΟ ACCEPT THAT THE ECONOMY WAS LOSING STEAM WITH SEVERAL YEARS OF SLOWER GROWTH AHEAD.

HE ALSO RAISED DOUBT ABOUT THE FINANCIAL SECRETARY'S FORECAST THAT INFLATION WOULD SLOW DOWN TO 8.5 PER CENT BECAUSE OF THE HEAVY COMMITMENT ON INFRASTRUCTURE AND HIGH PUBLIC SECTOR EXPENDITURE WOULD PUSH INFLATION TO A HIGHER LEVEL.

HE EXPECTED HONG KONG TO FACE A PERIOD OF STAGFLATION STAGNANT ECONOMY WITH INFLATION.

WHICH

A

FACED WITH SHORT SUPPLY IN LABOUR AND HIGH STAFF WASTAGE RATES, MR POON URGED EMPLOYERS TO BE MORE PRAGMATIC AND REASONABLE, AND FOR WORKERS TO EXERCISE PROPER CAUTION AND RESTRAINTS IN THEIR ACTIONS.

NOTING THAT THE CIVIL SERVICE TOOK UP 60 PER CENT OF RECURRENT PUBLIC EXPENDITURE, MR POON SUGGESTED THAT THE ADMINISTRATION SHOULD SCRUTINISE VERY TIGHTLY THE GROWTH OF CIVIL SERVICE.

'WHILE ADDITIONAL POSTS ARE JUSTIFIED IN CERTAIN ESSENTIAL SERVICES, RESTRAINT MUST BE EXERCISED ON THE OVERALL STAFF ESTABLISHMENT AND STAFF COSTS WHICH HAVE GROWN TO SUCH A STAGE THAT IT IS CAUSING GREAT CONCERN.

/"I CAN

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