XN000022-1990-04-26 — Page 19

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THURSDAY, APRIL 26, 1990

HE REMARKED THAT BY ACCEPTING THE CIVIL SERVICE'S WAGE DEMANDS, THE GOVERNMENT IS MERELY FUELLING FURTHER A DAMAGING INFLATIONARY WAGE SPIRAL. THESE WAGE INCREASES ARE HARDLY ACCEPTABLE ESPECIALLY WHEN THEY ARE FAR ABOVE THE RATE OF INFLATION AND ARE NOT WARRANTED ON THE GROUNDS OF INCREASED PRODUCTIVITY.

"IT IS NOW ALSO TIME THAT GOVERNMENT DO SOMETHING ABOUT THE CIVIL SERVICE SALARY STRUCTURE IN ORDER TO MINIMISE THE SEE-SAW EFFECT OF PAY TRENDS BETWEEN THE PUBLIC AND PRIVATE SECTORS, HE

ADDED.

It

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MR WONG WAS CONCERNED ABOUT THE 'EXCEEDINGLY GENEROUS" FRINGE BENEFITS WHICH WERE NOT CLEARLY VISIBLE IN THE BUDGET AS REMUNERATION.

HE POINTED OUT THAT UNDER THE PRESENT CASH ACCOUNTING CONVENTION ADOPTED BY THE GOVERNMENT, DEFERRED PENSION THE TRUE COST OF THE PENSION SCHEME UNTIL A LATER DATE.

BENEFITS

HIDE

MR WONG SAID IT WAS ESTIMATED THAT THE PENSION PAYMENTS COULD ADD SOMETHING LIKE ONE THIRD ΤΟ THE STRAIGHT SALARY BILL, AND ADVOCATED THAT THE GOVERNMENT ADOPT A PLAN TO FUND THE CIVIL SERVICE PENSIONS OVER, SAY 10 YEARS, AND PRACTISE WHAT IT WAS ATTEMPTING TO PREACH TO THE PRIVATE SECTOR.

ON INFRASTRUCTURE DEVELOPMENT, MR WONG BELIEVED THAT THE PRIVATE SECTOR COULD CARRY OUT THE PROJECTS AT A MORE COST EFFECTIVE MANNER THAN THE PUBLIC SECTOR.

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HOWEVER, HE NOTED THAT FOREIGN INVESTMENTS AND INTERNATIONAL FINANCING FOR THE PROJECTS DEPENDED TO A LARGE EXTENT ON THE POLITICAL CLIMATE WHICH WAS LARGELY BEYOND OUR CONTROL.

"ALL THIS GOVERNMENT CAN DO IS TO WORK HARD TO INCREASE HONG KONG'S ATTRACTION TO FOREIGN INVESTORS WHO WILL BE LURED TO TAKE PART IN THE CONSTRUCTION OF THE FUTURE HONG KONG," HE SAID.

ON THE SHORTAGE OF ACCOUNTANTS, MR WONG URGED THAT HIGHER PRIORITY BE GIVEN BY OUR TERTIARY AND VOCATIONAL TRAINING INSTITUTES TO THE ALLOCATION OF RESOURCES FOR ACCOUNTANCY TRAINING AS A MATTER OF URGENCY.

44 MEMBERS SPEAK IN BUDGET DEBATE

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A TOTAL OF 44 MEMBERS HAVE SPOKEN ON THE APPROPRIATION BILL 1990 IN THE LEGISLATIVE COUNCIL IN THE PAST TWO DAYS.

THE DEBATE ON THE BILL WAS FURTHER ADJOURNED TODAY (THURSDAY} TO MAY 9 WHEN REPLIES ARE SCHEDULED TO BE GIVEN ON VARIOUS POINTS RAISED.

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