XN000022-1992-03-05 — Page 4

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THURSDAY, MARCH 5, 1992

BUT, AS I SAY, GOING BACK TO THE OTHER POINT, IT IS REALLY NOT TRUE THAT SALARIES-TAX ALLOWANCES HAVE FALLEN BEHIND CPIA, THEY HAVEN'T - UNLESS YOU CHOOSE, PERHAPS, ONE OR TWO RECENT YEARS, BUT IF YOU LOOK AT A LONGER PERIOD, IT IS NOT CORRECT.

FINALLY, RATES.

WE

FOR

I THINK, AGAIN, I WOULD URGE COMMENTATORS TO LOOK VERY CAREFULLY AT RATES. HAVE BEEN ENCOURAGED BY MANY COMMENTATORS TO CONTINUE OUR SEARCH LESS VOLATILE SOURCES OF REVENUE. AT THE SAME TIME WE HAVE BEEN STRONGLY DISCOURAGED BY MOST OF THE PUBLIC COMMENT, TO CONSIDER SALES- TAX, AND ONE OF THE ADVANTAGES OF RATES IS THAT IT IS A VERY RELIABLE, BROAD-BASED, ACTUALLY RATHER FAIR TAX. AND IT SEEMED QUITE A REASONABLE TIME TO PUT THE RATES UP BECAUSE HISTORICALLY THEY ARE VERY LOW, THAT IS SIMPLY A FACT. AND I BAVE ALSO BEEN VERY CONSCIOUS OF THE FACT THAT IN THE LONG TERM, LETTING RATES GET LOWER AND LOWER ACTUALLY DOESN'T BENEFIT THE TENANTS, IT BENEFITS THE LANDLORDS. THE MARKET PRICE RELATES TO RENT PLUS RATES, IT DOESN'T RELATE TO RENT AND RATES SEPARATELY. SO THAT IF THERE IS SUCH A THING AS MARKET PRICE, AND EVEN IN PROPERTY I THINK THERE PROBABLY IS IN THE LONG RUN, THEN MY ARGUMENT, I THINK, IS TRUE.

SO I WILL STOP

THERE, HAVING CHOSEN A FEW OF THE HOT-POTATOES. THERE MAY BE ONE OR TWO OTHERS WHICH YOU WANT TO RAISE.

QUESTION:

IT SEEMS MR LU PENG OBJECTED TO SOME PARTS OF YOUR BUDGET, SPECIFICALLY, I THINK WE ARE RUNNING A STORY NOW SAYING THAT HE POINTED OUT THAT UNDER ARTICLE 107 OF THE BASIC LAW THAT THERE ARE PROBLEMS WITH THE BUDGET. CAN YOU RESPOND TO THOSE COMMENTS?

I WOULD HAVE TO SAY

-

I'M SORRY

―

"NO COMMENT".

FINANCIAL SECRETARY: TO DISAPPOINT YOU

QUESTION:

THAT

HIGH YOUR

MR MACLEOD, YOU'RE SAYING THE SANDWICH-CLASS IS IN A PARTICULARLY BAD WAY BECAUSE OF PROPERTY PRICES, WHY DIDN'T YOU ADDRESS PROPERTY SPECULATION IN SPEECH MORE YESTERDAY? YOU KNOW, YOU MENTIONED YOU'LL TRY то DISCOURAGE PEOPLE FROM BREAKING LAWS, BUT WHY DIDN'T YOU INSTITUTE ANY NEW MEASURES, PARTICULARLY BECAUSE THE MARKET SEEMS TO BE HEATING UP IN THE LAST THREE OR FOUR SALES? DO YOU THINK THAT YOU'VE DONE A GOOD JOB WITH YOUR MEASURES LAST YEAR AND THERE IS NOTHING ELSE YOU CAN DO? WHY AREN'T YOU MAKING ANYTHING NEW?

-

FINANCIAL SECRETARY:

NO, I WOULDN'T CLAIM THAT THE PROBLEM IS SOLVED. THE STAMP-DUTY MEASURE, OF COURSE, IS ONLY RATHER RECENTLY IMPLEMENTED

IT TOOK A WHILE TO GET THAT THROUGH AND IMPLEMENT IT, SO WE MUST LET THAT HAVE SOME CHANCE TO WORK. BUT I AM CERTAINLY FOLLOWING WITH SOME INTEREST WHAT IS HAPPENING IN THE PROPERTY MARKET AND I MAY HAVE FURTHER COMMENTS ON THAT, BUT I THINK AT THE MOMENT THE MARKET IS NEITHER UP NOR DOWN, IT'S AT A LEVEL STAGE. SO AT THE MOMENT 1 DON'T HAVE ANY NEW MEASURE ON THAT BUT I AM NOT AT ALL RESTRICTED TO THE BUDGET. IN FACT THE BUDGET ISN'T REALLY THE APPROPRIATE PLACE TO DEAL WITH THAT SORT OF PROBLEM. SO WE HAVE TO SEE HOW IT DEVELOPS.

WILL

/QUESTION