XN000022-1992-04-01 — Page 9

WEDNESDAY, APRIL 1, 1992

"IT

HAS SERVED ITS PURPOSE. IF IT WERE EXTENDED FOR AN ADDITIONAL YEAR, LESS THAN SIX PER CENT OF DOMESTIC PROPERTY RATEPAYERS WOULD BENEFIT, AND THE COST TO THE REVENUE WOULD BE VERY HIGH: NEARLY $900 MILLION FOR 1992-93," HE SAID.

HE SAID HE MENTIONED EARLIER THE NEED TO REDUCE THE DEPENDENCE ON RELATIVELY VOLATILE SOURCES OF REVENUE AND ONE OBVIOUS WAY OF DOING THIS WAS TO INTRODUCE A GENERAL SALES TAX.

*

"I SHOULD PREFER NOT TO INTRODUCE A NEW TAX OF THIS NATURE I BELIEVE THAT MY PROPOSED MODERATE INCREASE IN. GENERAL RATES OFFERS A STABLE AND PREDICTABLE ALTERNATIVE WHICH WOULD CONTRIBUTE NEARLY $6 BILLION IN THE PERIOD TO 1996-97."

IN

ADDITION TO AVOIDING THE NEED FOR A SALES TAX, MR MACLEOD SAID THE INCREASE IN RATES HAD HELPED HIM TO KEEP THE INCREASES INDIRECT TAXES PROPOSED IN HIS BUDGET TO VERY MODEST LEVELS.

IN

"I HAVE BEEN ABLE TO AVOID ANY REAL INCREASE IN DUTIES.

"CHARGES FOR WATER, POSTAGE AND OTHER GOVERNMENT UTILITIES, WHICH ARE USUALLY INCREASED IN THE BUDGET PACKAGE, WILL INSTEAD BE ADJUSTED DURING THE YEAR TO MINIMISE THEIR IMPACT ON ORDINARY HOUSEHOLDS.

DEPARTMENTAL FEES AND CHARGES, WHICH WERE SUBJECT то A MORATORIUM FOR NEARLY A YEAR, WOULD SIMILARLY BE PHASED IN CAREFULLY, HE SAID.

HE

SUGGESTED

AS

ADDED THAT THE GOVERNMENT COULD NOT AFFORD A CONCESSION BY SOME MEMBERS THAT FEES AND CHARGES ON FEES AND CHARGES SHOULD NOT INCREASE AT ALL.

HE EXPLAINED THAT A COMPLETE FREEZE ON FEES AND CHARGES WOULD COST $24 BILLION IN REVENUE FOREGONE IN THE PERIOD TO 1996-97.

GOVT ACHIEVES TIGHT FINANCIAL CONTROL OF AIRPORT PROGRAMME

OF CONTROL

THE THE

IS ACHIEVING TIGHT FINANCIAL GOVERNMENT

AND COST AIRPORT CORE PROGRAMME (ACP) WITH THE INTRODUCED PLANNING MANAGEMENT PROCEDURES.

THIS

THE HON HAMISH COUNCIL

STATED BY THE FINANCIAL SECRETARY, WAS MACLEOD, WHEN CONCLUDING THE BUDGET DEBATE AT THE LEGISLATIVE TODAY (WEDNESDAY).

OF ACP CONTRACTS MOREOVER, MR MACLEOD SAID, THREE QUARTERS WOULD BE ON A FIXED PRICE LUMP-SUM BASIS, SO THE RISK OF COST OVERRUNS COULD BE MINIMISED.

/HE SAID