XN000022-1990-05-09 — Page 23

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WEDNESDAY, MAY 9, 1990

"IT FELL FURTHER TO BELOW 15PER CENT BY 1987-88 MAINLY AS RESULT OF VERY HIGH RATES OF GROWTH OF GDP. AT THE SAME TIME WE ENJOYING COMFORTABLE CASH SURPLUSES AND BUILDING UP OUR RESERVES.

THE

WERE

P

TO ANSWER SERVICES,

SIR PIERS SAID IT WAS RIGHT IN THOSE CIRCUMSTANCES CALLS FOR

AND IMPROVEMENTS

EXTENSIONS TO GOVERNMENT OTHERWISE THE TERRITORY WOULD HAVE HAD MASSES OF CASH IN THE KITTY AND NOTHING TO SHOW FOR IT.

RATR

OF

OF

HE SAID HIS FORECAST OF THE MEDIUM TERM TREND GROWTH GDP OF 5.5PER CENT A YEAR WOULD REQUIRE A MODERATION OF THE RATE GROWTH OF PUBLIC EXPENDITURE THAT HAD TAKEN PLACE SINCE 1988-89.

"AS

GOVERNMENTS

I HAVE INDICATED, THIS WILL TAKE TIME BECAUSE CANNOT CHANGE COURSE ABRUPTLY.

"AN

NEW HOSPITALS OBVIOUS EXAMPLE RELATES TO THE BUILDING OF

THIS AREA DECISIONS MADE IN AND EXTENSIONS TO EXISTING HOSPITALS. SOME YEARS AGO ARE NOW BEARING FRUIT.

"ALMOST ONE QUARTER OF THE ADDITIONAL POSTS PROVIDED FOR IN THE

HE SAID. DRAFT ESTIMATES ARE FOR HOSPITAL SERVICES ALONE,

TO

STRESSING THAT THE GROWTH RATE OF PUBLIC SECTOR EXPENDITURE NOW RATE HAD то BE REDUCED, SIR PIERS SAID HE AIMED TO IMPROVE ON THE WHICH HIS MEDIUM RANGE FORECAST HAD SUGGESTED THAT WOULD CONTINUE EXCEED

GUIDELINE} THE TREND GROWTH RATE OF GDP (THE BUDGETARY 1992-93.

SIR PIERS NOTED

UNTIL

IN

FOR

IT WAS SPEECH, THAT IN LAST YEAR'S BUDGET STATED THAT THE GOVERNMENT WOULD HAVE TO BE INCREASINGLY VIGOROUS ITS ATTACK ON BASELINE EXPENDITURE IN ORDER TO PROVIDE RESOURCES NEW OR IMPROVED SERVICES.

THE GOVERNMENT THEREFORE EMBARKED ON THE PROCESS THE GROWTH RATE OF EXPENDITURE WELL BEFORE THE YEAR.

BUDGET

OF REDUCING DEBATE THIS

FOR EXAMPLE,

GROWTH, TO REDUCE THE POTENTIAL FOR FUTURE FINANCE BRANCH CARRIED OUT AN EXERCISE TO DELETE THE EXCESSIVE OF VACANT POSTS.

THE NUMBER

"THE ESTABLISHMENT CEILINGS IN THE 1989-90 ESTIMATES WOULD HAVE OF PERMITTED A TOTAL ESTABLISHMENT OF ABOUT 166,000 POSTS BY THE END MARCH 1990.

ABOUT CENT.

ΤΟ "AS A RESULT OF FINANCE BRANCH'S EXERCISE, THIS FIGURE FELL

ABOUT FIVE PER 157,000 POSTS; A REDUCTION OF 9,000 POSTS OR

THE REFERRING TO THE SERIES OF "STAR CHAMBER MEETINGS" HE AND

REVIEW BASELINE CHIEF SECRETARY HAD HELD WITH POLICY SECRETARIES TO EXPENDITURE, THE FINANCIAL SECRETARY SAID OVER 200 DIFFERENT AREAS HAD BEEN IDENTIFIED FOR FURTHER EXAMINATION.

/"IN ADDITION.