XN000022-1991-12-20 — Page 5

FRIDAY, DECEMBER 20, 1991

HE ALSO SAID AN ADEQUATE LEVEL OF RESERVES WOULD BE NECESSARY IN THE PERIOD UP TO 1997 AS COVER AGAINST THE POSSIBILITY OF TEMPORARY ADVERSE ECONOMIC DEVELOPMENTS.

MR MACLEOD DECLINED TO COMMENT ON WHAT REVENUE MEASURES MIGHT BE ADDED IN THE NEXT BUDGET, BUT ASSURED MEMBERS THAT IN CONSIDERING ANY CHAMNGES TO EXISTING TAX RATES, HE WOULD SEEK AS FAR AS POSSIBLE TO MINIMISE THE EFFECTS SUCH CHANGES WOULD HAVE ON INFLATION,

GOVERNMENT AIMS TO PROVIDE STABLE ENVIRONMENT FOR BUSINESS

THE

AND

AND

GOVERNMENT AIMS TO CONTINUE TO PROVIDE A STABLE PREDICTABLE ENVIRONMENT FOR BUSINESS AND IS CONFIDENT THAT IT CAN WILL DELIVER ON THIS AIM, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID TODAY (FRIDAY).

SPEAKING AT A LUNCHEON MEETING OF THE FRENCH BUSINESS ASSOCIATION, MR MACLEOD STRESSED THAT THE ADMINISTRATION BELIEVES AS FIRMLY AS EVER IN THE MERITS OF A MARKET ECONOMY AND OF COMPETITION; IN LOW TAX AND MINIMUM RED TAPE; IN COMBINING EFFECTIVE PROTECTION OF THE INTERESTS OF THE PUBLIC WITH MAXIMUM OPPORTUNITY FOR ECONOMIC AND BUSINESS GROWTH.

"WE VALUE THE BUSINESSMAN AND THE CONTRIBUTION HE AND HIS INVESTMENTS MAKE TO THE COMMUNITY.

"THIS MARKET ECONOMY APPROACH IS AMONG THE KEY INGREDIENTS THAT MADE HONG KONG WHAT IT IS TODAY.

"THIS APPROACH HAS BROUGHT US RISING STANDARDS OF LIVING AND FULL EMPLOYMENT OVER A LONG PERIOD OF TIME ACHIEVEMENTS WHICH WE SHOULD NOT TAKE FOR GRANTED, OR PUT AT RISK, HE SAID.

—

MR MACLEOD NOTED THAT SOME HAVE EXPRESSED CONCERN OVER

OF VIEWS IN THE NEW-STYLE LEGISLATIVE COUNCIL, DIVERSITY

AND PROSPECT THAT THIS MAY LEAD TO MUSHROOMING PUBLIC EXPENDITURE, HENCE TAXES.

THE

AT

THE

AND

"IN

THE DEVELOPMENT OF REPRESENTATIVE GOVERNMENT, A RANGE VIEWS ON THE COUNCIL IS ONLY TO BE EXPECTED, HE SAID.

OF

"DEBATE AND HONEST DISAGREEMENT IN THE LEGISLATIVE COUNCIL HEALTHY AND WE MUST BE CAREFUL NOT TO EXAGGERATE SUCH DIFFERENCES OPINION AS EXIST.

ARE OF

AND A DETERMINATION ON EXPENDITURE AND TAXES

"THE

FACT IS THAT THERE IS STILL A BROAD CONSENSUS WITHIN THE COUNCIL ON WHAT HAS MADE HONG KONG SUCCESSFUL, THE PART OF THE ADMINISTRATION TO KEEP BOTH UNDER CONTROLS, HE SAID.

"

/TURNING TO