XN000022-1991-04-17 — Page 13

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WEDNESDAY, APRIL 17, 1991

HE NOTED THAT MEMBERS IDENTIFIED VARIOUS LIKELY CANDIDATES REFORN OR FOR SOME FORM OF PRIVATISATION INCLUDING THE WATER SUPPLY, LEGAL AID AND PARKING METERS.

FOR

POST OFFICE,

SIR PIERS SAID THE GOVERNMENT RECOGNISED THE LIKELY ADVANTAGES IN TERMS OF OPERATIONAL EFFICIENCY OF LIFTING SOME OF THESE ENTERPRISES OUT OF THE CENTRAL GOVERNMENT SYSTEM, BUT THERE WERE PRACTICAL DIFFICULTIES TO BE CONSIDERED, NOT LEAST THE PROBLEM AND COST OF STAFF REDUNDANCIES. "AND THERE MAY BE POLITICAL CONSIDERATIONS," HE ADDED.

APART FROM THE BENEFITS OF IMPROVED OPERATIONAL PERFORMANCE, SIR PIERS SAID SOME MEMBERS PROPOUNDED THE FINANCIAL BENEFITS TO BE OBTAINED FROM THE DISPOSAL OF PUBLIC ENTERPRISES ΤΟ THE PRIVATE SECTOR.

"THERE WOULD INDEED BE BENEFITS IN TERMS OF CASH RECEIPTS FROM SALES, BUT THERE ARE OTHER FACTORS TO CONSIDER," HE SAID.

THE DISPOSAL OF A REVENUE-EARNING ORGANISATION SUCH AS THE POST OFFICE WOULD BRING A ONE-OFF CASH RETURN BUT THIS WOULD NEED ΤΟ BE MEASURED AGAINST THE LOSS OF FUTURE REVENUE.

THE TWO RAILWAY CORPORATIONS HAD BEEN IDENTIFIED AS SALEABLE UNDERTAKINGS. BUT THE KOWLOON-CANTON RAILWAY CORPORATION WAS PAYING THE GOVERNMENT A DIVIDEND WHICH WOULD BE LOST IF CORPORATION WERE SOLD.

NOW

THE

OF

THE MASS TRANSIT RAILWAY CORPORATION COULD NOT BE DISPOSED UNTIL ITS ACCUMULATED OPERATING LOSSES WERE WRITTEN OFF AND THIS WAS NOT YET THE CASE. THEREAFTER, THE CORPORATION WAS LIKELY TO BECOME A VERITABLE 'CASH COW AND WE WOULD NEED TO THINK VERY CAREFULLY BEFORE FORGOING THE BENEFITS TO THE PUBLIC REVENUE, THE FINANCIAL SECRETARY SAID.

HE REITERATED THAT THE GOVERNMENT WOULD CONTINUE TO SEEK WAYS OF IMPROVING THE DELIVERY OF SERVICES TO THE PUBLIC INCLUDING PRIVATIZATION AND OTHER REFORMS. "BUT THE MATTER IS NOT ALWAYS AS SIMPLE AS IT MIGHT APPEAR,' HE SAID.

FS CLEARS CLOUDS OVER TAX BASE BROADENING

* * * *

MORE

THE AND

PURPOSE OF BROADENING THE TAX BASE IS NOT SIMPLY TO RAISE MORE TAX.

SO BUT ALSO TO SPREAD THE

HELP LOAD AND

IN STABILISING THE GOVERNMENT'S REVENUE, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS SAID IN THE LEGISLATIVE COUNCIL. TODAY (WEDNESDAY).

SPEAKING AT THE CONCLUSION OF THE DEBATE ON THE FINANCIAL SECRETARY SAID HE HAD SENSED IN THE DEBATE SOME CONFUSION AS TO WHAT THE GOVERNMENT MEANT BY BROADENING THE TAX BASE.

BUDGET,

THE

/"IN CONNECTION