XN000022-1991-04-17 — Page 7

WEDNESDAY, APRIL 17, 1991

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SECONDLY, THIS POINT FOLLOWED ON FROM BALANCE OF EXPENDITURE IN FUTURE WOULD BE TOO FAVOUR OF INFRASTRUCTURAL PROJECTS ΤΟ THE SERVICES.

THE FIRST, THAT THE HEAVILY WEIGHTED IN DETRIMENT OF SOCIAL

"THESE ARE VERY BROAD GENERALISATIONS AND I AM CONCERNED BECAUSE THEY SEEM TO RE ILL FOUNDED, THE CHIEF SECRETARY SAID.

THE HOW

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HE POINTED OUT THAT BEFORE TACKLING THE CRITICISM OF WHETHER GOVERNMENT WAS DOING ENOUGH IT WAS IMPORTANT TO ASK THE QUESTION MUCH SHOULD THE GOVERNMENT DO.

**IN CONTRAST TO MOST OTHERS THE HONG KONG GOVERNMENT IS DEDICATED TO RESTRICTING THE SIZE OF THE PUBLIC SECTOR. THIS IS FUNDAMENTAL TO OUR PHILOSOPHY.

"AND THE RECORD SHOWS THAT WE HAVE BEEN SUCCESSFUL IN LIMITING PUBLIC EXPENDITURE TO WELL WITHIN 20 PER CENT OF GDP. THIS PRINCIPLE SEEMS TO BE WELL ACCEPTED BY EVERYONE, EVEN BY THOSE WHO SEEM TO HAVE NO PROBLEM WITH SQUARING THE CONCEPT OF A SMALLER PUBLIC SERVICE DEMAND FOR MORE PUBLIC SERVICES, HE SAID.

"I

WITH

PHILOSOPHY

THE SECOND POINT TO MAKE WAS THAT THIS RESTRICTIVE HAD INEVITABLE CONSEQUENCES IN THAT THE GOVERNMENT HAD ΤΟ TARGET EXPENDITURE WITH EXTREME CARE AND IT COULD NOT DO EVERYTHING THAT PEOPLE WOULD LIKE THE GOVERNMENT TO DO.

"THAT MAY SEEM ΤΟ BE AN OBVIOUS POINT BUT IF SENSIBLE SUGGESTIONS ARB TO BE MADE AS TO HOW GOVERNMENT IS TO DO BETTER THEY

TO BE COUPLED WITH IDEAS AS TO HOW THAT CAN BE ACHIEVED.

NEED

**THAT SAID, WE ARE FORTUNATE IN HONG KONG IN HAVING A BROAD CONSENSUS OVER THE WAY HONG KONG MANAGES ITS AFFAIRS. THERE ARE NO POLITICAL PARTIES CLAMOURING FOR HIGHER TAXES AND A WESTERN STYLE WELFARE STATE, THE CHIEF SECRETARY SAID,

HE POINTED OUT THAT THE GOVERNMENT BELIEVED IN A BROADLY LAISSEZ-FAIRE POLICY TOWARDS THE DEVELOPMENT OF THE ECONOMY, BUT THAT WAS NOT ITS ATTITUDE TOWARDS SOCIAL SERVICES.

"THE REMARKABLE GROWTH IN OUR ECONOMY OVER THE LAST TWO DECADES ENABLED US TO BUILD UP HEAVILY SUBSIDISED AND SUPPORTIVE SOCIAL PROGRAMMES WHILST MAINTAINING A LOW TAX BASE.

HAS

H

"AN INTEGRAL PART OF THESE PROGRAMMES HAS BEEN A MASSIVE CAPITAL WORKS PROGRAMME OF HOUSING, SCHOOLS AND HOSPITALS, HE SAID.

SINCE THE HUGE INFLUX IN HONG KONG IN THE 1950S AND 19605, THE CHIEF SECRETARY SAID THE GOVERNMENT'S PRIORITY HAD BEEN TO MEET ESSENTIAL NEEDS IN THE CRITICAL AREAS OF HOUSING, HEALTH, EDUCATION AND WELFARE.

IN ALL OF THESE AREAS WE HAVE WORKED FIRST TO PROVIDE BASIC SERVICES AVAILABLE TO ALL AND THEN GONE ON TO IMPROVE STANDARDS AS THE ABILITY OF THE COMMUNITY AS A WHOLE TO CONTRIBUTE MORE TOWARDS THEM HAS INCREASED, HE SAID.

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/THE COMBINATION