XN000022-1991-04-17 — Page 19

17

WEDNESDAY, APRIL 17, 1991

TO

"BUT BECAUSE RATES AFFECT MOST PEOPLE, INCLUDING THE LESS WELL MEMBERS OF OUR COMMUNITY, I REDUCED THE RATES PERCENTAGE AND

DO PLACED A 25 PER CENT CAP ON THE INCREASE PAYABLE.'

ON FEES AND CHARGES, THE FINANCIAL SECRETARY SAID HE HAD AIMED GENERALLY TO ADJUST THEM IN LINE WITH INFLATION, ALTHOUGH CERTAIN FEES HAD BEEN INCREASED FURTHER IN ORDER TO RECOVER COSTS.

HE SAID THE EFFECT ON THE COST OF LIVING WAS MINIMAL.

0

BUDGET NOT INFLATIONARY: FS

* * *

TODAY

THE

TAKEN

THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID (WEDNESDAY) IN THE LEGISLATIVE COUNCIL THAT TOBACCO DUTY APART, IMPACT ON THE CPI OF ALL OTHER INCREASES IN INDIRECT TAXES

OF ONE PERCENTAGE TOGETHER SHOULD BE MODERATE, LESS THAN ONE HALF POINT.

HE WAS SPEAKING AT THE CONCLUSION OF THE RESUMED BUDGET DEBATE. BUDGET ITSELF IN

RESPONSE TO SOME MEMBERS' CONCERNS THAT THE MUST BE INFLATIONARY, SIR PIERS SAID THIS VIEW NEEDED TO BE CONTEXT.

PUT IN

THE

OF

THE

FIRST, IN NATIONAL ACCOUNTS OR RESOURCE CONSUMPTION TERMS, PUBLIC SECTOR AS A WHOLE REPRESENTED ONLY ABOUT 12 PER CENT GDP.

GOVERNMENT THE SECONDLY, FOR A NUMBER OF YEARS BUDGETING FOR, AND ACHIEVING, A SURPLUS EACH YEAR.

HAD

BEEN

AS

"ALTHOUGH THE SURPLUS BUDGETED FOR 1991-92 IS NOT AS LARGE IN SOME YEARS IT STILL REPRESENTS A NET WITHDRAWAL OF PURCHASING POWER FROM THE ECONOMY, AND IN THAT SENSE THE EFFECT OF THE BUDGET THIS YEAR IS NOT INFLATIONARY, HE SAID.

TO

INDIRECT CPI; ABOUT

"I

AM AWARE THAT, AMONGST ALL THE ITEMS OF INCREASED TAXES, TOBACCO DUTY WILL HAVE THE GREATEST IMPACT ON THE ONE AND A HALF PERCENTAGE POINTS.

"BUT IT

SMOKERS, WHO REPRESENT WILL HAVE AN EFFECT ONLY ON

WOULD MERELY ONE-SIXTH OF THE ADULT POPULATION, AND EVEN THEIR BURDEN

MATTER OF PERSONAL BE REDUCED IF THEY SMOKED LESS. IT REMAINS A CHOICE," SIR PIERS SAID.

WAGES FOR. 12

"[ SHOULD MENTION THAT, IN THE CALENDAR YEAR 1990, MANUFACTURING WORKERS, FOR EXAMPLE, WENT UP BY AN AVERAGE OF ABOUT PER CENT. INFLATION RAN AT 9.8 PER CENT,

HE SAID,

CONTINUED

TO

REVIVE,

UP

LOCAL IN MUCH OF THE

COULD RESOURCES LOCAL INFLATIONARY

BE EXPECTED.

PRESSURE

WOULD

SOME THUS, BE

HE SAID AS ECONOMIC ACTIVITY

TIGHTENING

REGRETTABLY,

SUSTAINED.

/ON THE