XN000022-1991-11-06 — Page 19

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WEDNESDAY, NOVEMBER 6, 1991

ΤΟ

PLAN PUBLIC SECTOR SPENDING FOR THE NEXT FEW YEARS, FINANCIAL SECRETARY SAID THE STARTING POINT WAS LIKELY THE GROWTH THE ECONOMY.

THE OF

NOT

"WE ASSUME THIS WILL BE FIVE PER CENT. HENCE, THE GROWTH RATE IN TOTAL GOVERNMENT SPENDING OVER THE FORECAST PERIOD SHOULD ALSO EXCEED FIVE PER CENT," HE SAID.

OVERALL

OF

CEILING ENSURING

MR MACLEOD SAID THIS GAVE THE GOVERNMENT THE FOR PUBLIC SPENDING AND HE SAID HE HAD EVERY INTENTION THAT IT WOULD BE OBSERVED.

ON MONETARY MEASURES, THE FINANCIAL SECRETARY SAID HE SUPPORTED FOR THE PRESENT LINKED RATE.

SHOULD

"THE LINK TO THE US DOLLAR, SUPPLEMENTED BY THE MONETARY ARRANGEMENTS PUT IN PLACE MORE RECENTLY, HAS SERVED US WELL. I MAKE VERY CLEAR MY FIRM INTENTION THAT IT WILL CONTINUE," HE SAID.

SAID HE

HE BELIEVED THE MONETARY POLICY OVERWHELMING PRIORITY TO ENSURING A STABLE CURRENCY.

ΤΟ HAD

GIVE

HONG KONG HAD IN THE PAST FEW YEARS BEEN SUBJECT TO A NUMBER OF

HAD IT HAD BEEN REMARKABLE HOW WELL THESE SHOCKS, AND

SHOCKS

BEEN ABSORBED, WITH NO DAMAGE TO CONFIDENCE IN HONG KONG CURRENCY. THE EXCHANGE RATE HAD REMAINED STABLE THROUGHOUT.

CONTINUED GOVT COMMITMENTS REAFFIRMED

**

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, TODAY (WEDNESDAY) REAFFIRMED THE GOVERNMENT'S COMMITMENT TO THE MAJOR SOCIAL AND OTHER PROGRAMMES AND TO THE BASIC FREE MARKET APPROACH WHICH HAS SERVED HONG KONG SO WELL.

SPEAKING AT THE

RESUMED DEBATE ON THE GOVERNOR'S POLICY ADDRESS, MR MACLEOD SAID THE GOVERNMENT'S BASIC APPROACH WAS CLEAR.

"WE BELIEVE IN THE MERITS OF A MARKET ECONOMY AND OF COMPETITION; IN LOW TAX AND MINIMUM RED TAPE; IN COMBINING EFFECTIVE PROTECTION OF THE PUBLIC'S INTERESTS WITH MAXIMUM OPPORTUNITY FOR ECONOMIC GROWTH," HE SAID.

THE FINANCIAL SECRETARY SAID THIS APPROACH HAD BROUGHT HONG KONG RISING STANDARDS OF LIVING AND FULL EMPLOYMENT OVER A LONG PERIOD OF TIME.

*

"WE BELIEVE STRONGLY IN ENCOURAGING COMPETITION, HE CONTINUED.

COMPETITION IN THE DELIVERY OF PUBLIC SERVICES PARTICULAR, CONTINUE TO BE ENCOURAGED, HE NOTED.

WOULD, IN

THE BENEFITS, HE SAID, INCLUDED

INNOVATION AND BETTER QUALITY.

INCREASED

PRODUCTIVITY,

/IN PUBLIC