XN000022-1992-04-01 — Page 12

10

WEDNESDAY, APRIL 1, 1992

HE SAID THE RESULT WAS A CAREFULLY BALANCED PACKAGE OF PROPOSALS WHICH TOOK ACCOUNT OF THE COMPETING NEEDS AND INTERESTS OF THE COMMUNITY, AS WELL AS OF THE GOVERNMENT'S ABILITY TO PAY, LOOKING NOT ONLY AT THE YEAR AHEAD BUT AT THE WHOLE PLANNING PERIOD.

FROM THE TIMESCALE OF THE BUDGET PROCESS, MR MACLEOD SAID IT WAS CLEAR THAT THE KEY TO A FRUITFUL EXCHANGE BETWEEN THE LEGISLATIVE COUNCIL AND THE GOVERNMENT WAS AN EARLY DISCUSSION OF PRIORITIES OBJECTIVES.

AND

"THE VERY NATURE OF THIS PROCESS MEANS THAT HARD CHOICES HAVE TO BE MADE, BUT I HAVE NO DOUBT THAT, THROUGH CO-OPERATION, WE CAN MAKE THE PROCESS WORK," HE SAID.

MR MACLEOD SAID HE MUST MAKE IT CLEAR THAT HE HAD GREAT DIFFICULTY WITH THE IDEA THAT THE BUDGET PACKAGE COULD BE UNSCRAMBLED AND RENEGOTIATED ONCE IT HAD BEEN ANNOUNCED.

"THIS IS NOT TO TREAT THIS COUNCIL AS A RUBBER STAMP; IT IS SIMPLY TO ACKNOWLEDGE THAT THE BUDGET IS TOO COMPLEX AND TOO IMPORTANT TO BE RENEGOTIATED AT THE FINAL STAGE," HE SAID.

HE NOTED THAT SOME MEMBERS HAD MADE THE POINT THAT THEY SAW THE REDUCTION IN TOBACCO TAX LAST YEAR AS A PRECEDENT FOR REVISING THIS YEAR'S PACKAGE.

"I DO NOT AGREE. LAST YEAR'S INCREASE WAS A HEALTH MEASURE, NOT A REVENUE MEASURE, AND WOULD NORMALLY HAVE BEEN DEALT WITH OUTSIDE THE BUDGET FRAMEWORK, HE SAID.

"

"IT IS ONE THING TO ENSURE THAT THE VIEWS OF THIS COUNCIL AND THE COMMUNITY ARE TAKEN INTO ACCOUNT AS WE PREPARE OUR PROPOSALS. IT IS QUITE ANOTHER MATTER TO ACCEPT THE NOTION THAT THE PROCESS SHOULD BE OPEN-ENDED.

"DECISIONS MUST BE REACHED ON THE PROPOSALS PRESENTED ΤΟ THE LEGISLATIVE COUNCIL, AND WE CANNOT BECOME EMBROILED IN A PROTRACTED SERIES OF NEGOTIATIONS AFTER THE BUDGET SPEECH.

"SUCH A DEVELOPMENT WOULD BE A RECIPE FOR UNCERTAINTY AND INSTABILITY, AND IT COULD SERIOUSLY UNDERMINE CONFIDENCE IN HONG KONG AND ITS GOVERNMENT," HE SAID.

MR MACLEOD POINTED OUT THAT SUCH A DEVELOPMENT

PARTICULARLY UNACCEPTABLE THIS YEAR.

WOULD BE

"THIS BUDGET HAS BEEN CAREFULLY STRUCTURED TO DEAL WITH OUR EXPENDITURE AND REVENUE REQUIREMENTS, NOT ONLY FOR NEXT YEAR BUT FOR THE YEARS LEADING UP TO 1997.

"IT IS DESIGNED TO PROVIDE CERTAINTY TO THE BUSINESS COMMUNITY AND TO LENDERS TO OUR MAJOR INFRASTRUCTURE PROJECTS," HE SAID.

/HE SAID