XN000022-1991-03-06 — Page 2

WEDNESDAY, MARCH 6, 1991

1

FS STRESSES IMPORTANCE OF MAINTAINING FINANCIAL STRENGTH

THE

STRENGTH

FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, TODAY (WEDNESDAY) SAID THAT IN FRAMING HIS BUDGETARY PROPOSALS, HE HAS BEEN ACUTELY AWARE OF THE NEED TO MAINTAIN HONG KONG'S FINANCIAL SO AS TO ENABLE THE TERRITORY TO MEET ITS COMMITMENTS IN THE YEARS AHEAD WITHOUT UNDUE STRAIN.

"NO BUDGET SHOULD BE JUDGED EXCLUSIVELY BY REFERENCE то ITS SHORT-TERM IMPACT. THE

OF LONGER TERM IS GENERALLY

MUCH GREATER SAID SIR PIERS IN PRESENTING HIS BUDGET FOR 1991-92 ΤΟ IMPORTANCE, THE LEGISLATIVE COUNCIL.

WAS

SIR PIERS RECALLED THAT WHEN HE PRESENTED HIS BUDGET LAST YEAR HE DREW

THE

SCENE ATTENTION TO THE FACT THAT

INTERNATIONAL CHANGING SWIFTLY AND DRAMATICALLY.

"SINCE THAT TIME, EVENTS ACROSS THE WORLD HAVE INTRODUCED BVEN HIGHER DEGREE OF UNCERTAINTY.

AN

"WHILST THERE IS OFTEN LITTLE WE CAN DO TO ALTER THE COURSE EXTERNAL EVENTS, 1 WOULD NOT FOR ONE MOMENT WISH TO SUGGEST THAT ARE TOTALLY UNABLE TO GUIDE OUR OWN DESTINY," HE SAID.

SIR

OF

WB

AND STRONG PIERS POINTED OUT THAT HONG KONG REMAINED ITS

BUT IN AN UNCERTAIN WORLD IT SELF, RESILIENT

WAS VITAL THAT THE TERRITORY MAINTAINED THE STRENGTH OF ITS FINANCIAL POSITION SO THAT IT COULD FACE THE FUTURE WITH CONFIDENCE.

"I HAVE REPEATEDLY STRESSED THE IMPORTANCE THAT WE PLACE UPON CONTROLLING THE GROWTH OF PUBLIC EXPENDITURE.

"WE

PRUDENCE

AND

CONTINUE TO MANAGE OUR RESOURCES WITH MUST REALISM. NOT ONLY MUST WE KEEP OUR PUBLIC EXPENDITURE UNDER CONTROL; WE MUST ALSO OBTAIN VALUE FOR MONEY.

IN

"THE CONTROL OF PUBLIC EXPENDITURE IS, FURTHERMORE, ONE WAY WHICH THE GOVERNMENT CAN PLAY ITS PART IN THE FIGHT AGAINST INFLATION," SIR PIERS SAID.

IN THE LIGHT OF THIS, THE FINANCIAL SECRETARY SAID

ALTERED THEREFORE

THE STRUCTURE OF HIS SPEECH THIS YEAR AND WOULD DEVOTE THE FIRST PART TO THE CONTROL OF PUBLIC EXPENDITURE, EXPLAINING HOW

DISCIPLINE WAS IMPOSED ON THE FINANCIAL

PUBLIC SECTOR

AND

THAT DESCRIBING THE MECHANISMS BUDGETARY GUIDELINES ADOPTED, WITH SOME CONSIDERABLE SUCCESS.

HE

HAD

THROUGH

HAD BEEN

-

"GIVEN THE LEVEL OF OUR RECURRENT COMMITMENTS AND THE AMBITIOUS PLAN CAPITAL PROGRAMME WE HAVE SET OURSELVES, IT IS ESSENTIAL THAT WE WE CAREFULLY SO THAT THE REQUISITE RESOURCES ARE AVAILABLE AS THEM," HE SAID.

NEED

/SIR PIERS