XN000022-1993-03-04 — Page 20

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THURSDAY, MARCH 4, 1993

MAKE

FS:

WELL, THERE IS A BREAK FOR BUSINESS BUT IT DOESN'T COME IN THE FORM OF A CHANGE IN PROFITS TAX. WE ARE, AFTER ALL, SPENDING A LOT OF MONEY ON WHAT YOU MIGHT CALL, HARD AND SOFT INFRASTRUCTURE. THINGS LIKE ROUTE THREE, THE EXPANSION OF THE CONVENTION CENTRE, THOSE THINGS ACTUALLY BENEFIT BUSINESS, THEY BENEFIT THE ECONOMY, THEY US MORE EFFICIENT. I THINK THERE IS ACTUALLY QUITE A LOT IN THIS BUDGET FOR BUSINESS. I HAVE ALSO SUGGESTED THAT IF OUR TALKS WITH THE TRADE DEVELOPMENT COUNCIL GO WELL, THERE MAY BE SOME SCOPE FOR REDEPLOYING FUNDS TO INDUSTRY THROUGH THE RELEVANT COMMITTEE, FOR THINGS LIKE RESEARCH AND DEVELOPMENT.

CUMMINGS:

DID YOU PUT ANY HARD THOUGHT INTO WHETHER YOU MIGHT BE ABLE TO KNOCK A PERCENTAGE POINT OR SOMETHING OFF THE PROFITS TAX?

FS: SOME

I DID GIVE THOUGHT TO THAT AND CERTAINLY THERE WERE REPRESENTATIONS THAT WE SHOULD CUT IT BACK AGAIN, BUT IT WOULD HAVE MEANT I HAD LESS SCOPE FOR OTHER CONCESSIONS AND I DECIDED THAT THERE WASN'T ACTUALLY A GREAT NEED TO REDUCE PROFITS TAX AT THIS TIME. I DID SIGNAL LAST YEAR THAT I DON'T HAVE ANY AGENDA FOR GOING ON AND ON INCREASING PROFITS TAX, I THINK IT IS PROBABLY ABOUT RIGHT AT THE MOMENT, SO I HAVE LEFT IT THERE.

QUESTION:

MY NAME IS PHIL BLACK, MR MACLEOD, MY QUESTION REFERS TO THE FUNDING FOR URBAN RENEWAL IN HONG KONG. OBVIOUSLY, IT IS A VERY COMPLEX PROBLEM HERE, AND THE BOTTOM LINE FOR URBAN RENEWAL IS OBVIOUSLY THAT SOME FORM OF GOVERNMENT SUPPORT IN THE FORM OF FINANCIAL SUBSIDIES, MAINLY THROUGH THE PROVISION OF LAND, IS REQUIRED TO FACILITATE URBAN RENEWAL, THROUGH AGENCIES SUCH AS LDC AND THE HONG KONG HOUSING SOCIETY. I NOTE THAT YOU HAVE MADE SPECIFIC ALLOCATION

TO THE HONG KONG HOUSING SOCIETY TO HELP WITH THE SANDWICH CLASS AND MY QUESTION IS: WAS THERE ANY APPROACH TO YOU IN A MORE GENERAL FORM, TO MAKE SPECIFIC ALLOCATION OF GOVERNMENT FUNDS FOR URBAN RENEWAL?

NO, I DON'T THINK THAT THERE WAS ANY GREAT PRESSURE

ON

FS: THAT. AS FAR AS I KNOW, THE LDC (THE LAND DEVELOPMENT CORPORATION) IS ADEQUATELY FUNDED AT THE MOMENT, I AM NOT AWARE OF ANY PARTICULAR NEED TO PUMP MORE FUNDS INTO IT, SO THAT PARTICULAR SCHEME SEEMS TO BE GOING QUITE WELL.

1

I'M

QUESTION:

I AM ACTUALLY TALKING A LITTLE BIT WIDER THAN LDC, IN THE SAME WAY THAT GOVERNMENT FUNDED THE "NEW TOWNS PROGRAMME SORT OF LOOKING AT WHY, FOR INSTANCE THE FINANCE BRANCH IN PARTICULAR HAVE NOT SET UP A SPECIAL FUND, AN "URBAN RENEWAL FUND" IF YOU LIKE, THAT WILL BE OBVIOUSLY A RECURRENT EXPENDITURE, TO FACILITATE WIDER URBAN RENEWAL THROUGH ANY OF THE CURRENT AGENCIES?

FS:

WELL, OF COURSE OUR PHILOSOPHY WOULD STILL TEND TO BE THAT AS FAR AS POSSIBLE THAT SHOULD BE DONE BY THE PRIVATE SECTOR, AND IN FACT THE MAJORITY OF, FOR INSTANCE NEW HOUSING COMING ON STREAM, PRIVATE HOUSING, IS FROM REDEVELOPMENT RATHER THAN FROM NEW ESTATES OUT IN THE NEW TERRITORIES, SO I THINK THAT IS MAKING A CONTRIBUTION.

QUESTION:

DOES THE

I WOULD LIKE TO ASK A QUESTION ON FUEL TAX. IF FUEL TAX IS REDUCED THEN IT WELL HELP TO CURB INFLATION. FINANCIAL SECRETARY ACCEPT THAT?

/FS

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