XN000022-1990-10-16 — Page 8

TUESDAY, OCTOBER 16, 1990

MIDDLE

"BUT EVEN SO, AND PARTICULARLY IF THE SITUATION IN THE EAST DETERIORATES, A DOUBLE-DIGIT INFLATION RATE FOR CERTAIN MONTHS IN THE REST THE YEAR IS NOT UNLIKELY," MR TANG SAID.

SETTING,

DIRECT

NOT

HE STRESSED THAT IN HONG KONG'S FREE MARKET REGULATION OF THE LEVEL OF DEMAND IN THE PRIVATE SECTOR IS SIMPLY FEASIBLE.

"

'IMPOSITION OF ARTIFICIAL CONTROLS ON PRICES, WAGES AND IS UNREALISTIC BECAUSE THE EXCESS DEMAND WOULD ONLY BE SUBMERGED, ELIMINATED.

RENTAL

NOT

OF MARKET "MORE SERIOUSLY, BY INTERFERING WITH THE FREE PLAY

ECONOMIC SYSTEM, HE FORCES, IT COULD CAUSE LASTING DAMAGE TO OUR SAID.

*

HE POINTED OUT THAT SUPPRESSING LOCAL OIL PRICES BELOW THOSE IN SITUATION, THE INTERNATIONAL MARKET WILL NOT HELP HONG KONG'S SUPPLY AS THE OIL SUPPLIES COULD BE DIVERTED ELSEWHERE.

MARGIN

TURNING TO GOVERNMENT'S SPENDING, MR TANG NOTED THAT A

то

INCREASES ALLOW FOR

IN OF RELAXATION AT THIS POINT IN TIME

WHICH ARE GOVERNMENT EXPENDITURE ON THOSE INFRASTRUCTURAL PROJECTS CRUCIAL TO CONTINUED GROWTH OF OUR ECONOMY IS JUSTIFIED.

"EVEN

So,

PROJECT PRIORITIES

ARE

CAREFULLY

PROGRAMME CONTROLS TIGHTENED TO AVOID CREATING AN EXCESSIVE BURDEN AND CONSTRUCTION WORKLOAD.

REVIEWED AND BUDGETARY

THE THE

OF STATE "FURTHERMORE, AND EVEN MORE IMPORTANT TO THE GOVERNMENT'S FINANCES, WE MUST ALWAYS KEEP A STRICT CONTROL OVER

HE STRESSED. LEVEL OF RECURRENT EXPENDITURE,

++

THIS MEANS THAT DFMANDS FOR NEW SERVICES WILL BE PUT UNDER EVEN STRIVE CLOSER SCRUTINY, AND THAT GOVERNMENT DEPARTMENTS WILL HAVE TO

SERVICES, MR FOR AN EVEN BETTER VALUE FOR MONEY FOR THEIR EXISTING TANG SAID.

SAID THAT SOLUTION TO

REGARDING THE SUPPLY OF LABOUR RESOURCES, MR TANG MOST PEOPLE WOULD AGREE THAT A MORE EFFECTIVE LONG-TERM THE LABOUR SHORTAGE PROBLEM IS TO INCREASE THE PRODUCTIVE CAPACITY THE ECONOMY THROUGH RAISING OVERALL LABOUR PRODUCTIVITY.

OF

"OUR PLANS FOR EXPANDING EDUCATION AND TRAINING AT THE TERTIARY

MR TANG SAID. AND TECHNICAL LEVELS CARRY THIS IMPORTANT OBJECTIVE,

"

INFRASTRUCTURAL

THEY SECTOR,

WITH THE NEED TO MAKE PROVISIONS FOR THE MAJOR PROJECTS IN THE PIPELINE, WE ARE ACUTELY AWARE OF THE PRESSURES WILL IMPOSE ON THE CAPACITY OF THE BUILDING AND CONSTRUCTION PARTICULARLY AS REGARDS THE SUPPLY OF LABOUR, HE SAID.

THE

"ANY DRASTIC UPSURGE IN CONSTRUCTION WAGES OR UNIT CONSTRUCTION PROJECT COST SHOULD BEST BE AVOIDED, IN THE INTEREST OF KEEPING COSTS WITHIN BUDGET.

/"THUS CONSTANT