XN000022-1991-05-16 — Page 5

THURSDAY, MAY 16, 1991

"ADD TO THIS THAT SUCH TAXES TEND TO PUSH UP THE CPI(A) PERCEIVED MEASURE OF INFLATION AND THAT THEY TEND TO BE

AND THE POTENTIAL

——

ΤΟ

TO BOTH RICH AND POOR APPLY BECOME CLEAR, MR MACLEOD SAID.

"I

HE CONCLUDED THAT THERE WERE NO EASY OPTIONS IN THE REVENUE AND TAXES AND THE BASIC DILEMMA WOULD REMAIN.

W

THE

REGRESSIVE DRAWBACKS

FIELD OF

ΤΟ

EARLIER, MR MACLEOD SAID THE GOVERNMENT'S FIRM AIM WAS NOT LET THE GOVERNMENT GET TOO BIG A RECOGNITION THAT THE LION'S SHARE THE OF SCARCE RESOURCES NEEDS TO BE KEPT FOR THE PRODUCERS OF WEALTH, PRIVATE SECTOR.

PUBLIC

"HENCE OUR GUIDELINE THAT WE SHOULD KEEP THE GROWTH IN EXPENDITURE IN LINE WITH THE TREND GROWTH IN THE ECONOMY (OR GDP).

"THUS FOR EXAMPLE IF YOU COMPARE THE APPROVED ESTIMATES OF FIND A EXPENDITURE IN 1991-92 WITH THOSE FOR THE PREVIOUS YEAR YOU

RATE GROWTH RATE OF UNDER FIVE PER CENT, COMPARED WITH A TREND GROWTH OF 5.5 PER CENT," HE SAID.

НЕ

IN

REVENUE

RESULTED POINTED OUT THAT SOMETIMES THIS CONTROL ALONE EXPENDITURE BEING COVERED BY REVENUE, AND NO NET INCREASE IN WAS THEREFORE NEEDED.

PERIODS

"AT OTHER TIMES

JLL JI

TO

WR

IN

MR

AND UNFORTUNATELY WE ARE NOW IN ONE OF THOSE WE CAN SEE FROM OUR FORWARD PROJECTIONS THAT IF WE ARE PRODUCE A REASONABLE CASH FLOW, EVEN AFTER DRAWING ON RESERVES, NEED SOME INCREASE IN REVENUE IF WE ARE TO MAKE THE INVESTMENTS OUR FUTURE

WITHIN ARE BOTH NEEDED, AND

OUR MEANS,

MACLEOD SAID.

WE

THINK

0

HK TO BE ADMITTED TO PECC AS FULL MEMBER

FULL MEMBER OF THE

PACIFIC MEETING

HONG KONG WILL BE ADMITTED AS A ECONOMIC CO-OPERATION CONFERENCE (PECC) AT ITS EIGHTH GENERAL IN SINGAPORE ON MAY 20

22.

A 14-MEMBER DELEGATION FROM OFFICIALS, ACADEMICS AND BUSINESS PECC VIII MEETING.

HONG KONG COMPRISING GOVERNMENT LEADERS WILL PARTICIPATE IN THE

DEPUTY SECRETARY

HONG KONG COMMITTEE FOR

HEADING IT WILL BR MR JOSEPH WONG WING-PING, FOR TRADE AND INDUSTRY AND CHAIRMAN OF THE PACIFIC ECONOMIC CO-OPERATION (HKCPEC).

SINGAPORE

A

WILL MARK MEETING

FORMALLY ADMITTED ON

"HONG KONG'S PRESENCE AT THE IGNIFICANT MILESTONE IN THE TERRITORY'S PARTICIPATION IN ECONOMIC CO- *PERATION IN ASIA PACIFIC AS HONG KONG WILL BE THAT OCCASION AS A FULL MEMBER OF THE PECC,

TT

MR WONG SAID.

/"AS AN