XN000022-1992-10-09 — Page 7

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FRIDAY, OCTOBER 9, 1992

GOVERNOR:

YES. LET ME OFFER YOU ANOTHER PIECE OF AUTOBIOGRAPHY. I PLAYED QUITE A PROMINENT PART AS THE THEN DIRECTOR OF THE CONSERVATIVE PARTY'S RESEARCH DEPARTMENT IN DRAFTING OUR MANIFESTO IN

1979,

IN WHICH WE FIRST TALKED ABOUT PRIVATISATION AND ROLLING BACK THE BOUNDARIES OF THE STATE, AND THAT HAD CONSIDERABLE RELEVANCE IN THE UNITED KINGDOM BECAUSE THE BOUNDARIES OF THE STATE, THE BOUNDARIES OF STATE ACTION, LAY FAR OUT IN THE ECONOMY. AND PRIVATISATION, IN THE UNITED KINGDOM, HAS MOVED FORWARD ON THAT BASIS, HAULING BACK THE BOUNDARIES OF THE STATE. IF THE UNITED KINGDOM KEEPS AT IT FOR A FEW MORE YEARS IT WILL GET THE BOUNDARIES OF THE STATE MORE OR LESS BACK TO WHERE THEY ARE IN HONG KONG. BECAUSE FORTUNATELY, FOR THE SUCCESS OF THE HONG KONG ECONOMY, YOU DIDN'T GO THROUGH THE RASH OF NATIONALISATIONS AND INCREASES IN THE SIZE OF THE PUBLIC SECTOR WHICH AFFLICTED SO MANY EUROPEAN ECONOMIES IN THE 1940'S AND 50'S. SO THE FIRST POINT I MAKE IN RESPONSE TO YOUR QUESTION IS, THERE ISN'T GOING TO BE AS MUCH PRIVATISATION BECAUSE THERE ISN'T AS MUCH TO PRIVATISE.

SO

WHERE THERE IS SCOPE FOR PRIVATISATION, I VERY MUCH HOPE THAT WE CAN PERSUADE THE IN-LAWS THAT IT IS IN THE INTERESTS OF HONG KONG'S LONG TERM ECONOMIC DEVELOPMENT AND DOES NOT CONSIST OF FLOGGING-OFF THE FAMILY SILVER. WE HAVE SHOWN, FOR EXAMPLE, IN THE PARTNERSHIP BETWEEN PUBLIC AND PRIVATE SECTOR, MUCH GREATER IMAGINATION AND FLAIR THAN MOST OTHER COMMUNITIES. LET ME GIVE YOU AN EXAMPLE. I THINK THAT BY AND LARGE BOT PROJECTS HAVE WORKED BETTER IN HONG KONG THAN ANYWHERE ELSE THAT I HAD EXPERIENCE OF WHEN I FOR EXAMPLE, BRITAIN'S DEVELOPMENT MINISTER. SO I THINK THAT WE COULD DO MORE TO PRIVATISE AND I VERY MUCH HOPE THAT WE'LL BE ABLE PERSUADE OUR COLLEAGUES IN PEKING THAT THAT IS A SENSIBLE FOUNDATION FOR POST 1997, BUT I REPEAT, THERE WON'T BE AS MUCH SCOPE AS THERE WAS IN THE UNITED KINGDOM.

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WAS,

ΤΟ

I WAS DELIGHTED I THINK I CAN SEE THE CHAIRMAN OF THE HOUSING AUTHORITY THERE I WAS DELIGHTED TO HEAR THE OTHER DAY

THAT THE HOUSING AUTHORITY ARE LOOKING AT NEW WAYS IN WHICH THEY CAN ENCOURAGE TENANTS TO MOVE TO HOME OWNERSHIP. 1 THINK THAT IS A PERSONAL SORT OF PRIVATISATION WHICH IS VERY WELCOME, WITHOUT IN ANY WAY TAKING AWAY FROM THE DRIVE TO PROVIDE DECENT HOUSING FOR THE WHOLE COMMUNITY.

YOUR FIRST QUESTION IS A QUESTION WHICH I TOUCHED ON IN MY SPEECH WHEN I POINTED OUT THAT IT'S IMPERATIVE IF WE REMAIN COMPETITIVE, BOTH IN PUBLIC AND PRIVATE SECTORS, TO ENSURE THAT WE DON'T PAY OURSELVES MORE THAN WE'VE EARNED THROUGH PRODUCTIVITY, IMPROVEMENTS AND GREATER EFFICIENCY. AND I REPEAT, THAT HAS TO GO I KNOW THERE HAS BEEN

FOR THE PUBLIC AS WELL AS THE PRIVATE SECTORS. SOME DISCUSSION FROM TIME TO TIME BETWEEN GOVERNMENT AND THE CHAMBERS OF COMMERCE FOR INSTANCE, ON THE QUESTION OF PAY-BARGAINING. I HOPE THAT IT WILL BE ONE OF THE ISSUES WHICH THE BUSINESS COUNCIL INTEREST US IN.

I WOULD BE SURPRISED IF IT'S NOT, SINCE I DON'T THINK I'VE YET BEEN TO LUNCH WITH A COMMERCIAL ORGANISATION IN HONG KONG WHERE IT HASN'T FEATURED ON THE MENU LONG BEFORE THE PISTACHIO FLAN,

/QUESTION: SIR