XN000022-1993-03-04 — Page 6

5

THURSDAY, MARCH 4, 1993

FS:

I LIKE THE WORD BENEVOLENT, THANK YOU VERY MUCH. IT'S NOT OFTEN USED ΤΟ FINANCIAL SECRETARY'S. WELL, OF COURSE, WE'RE BEING BENEVOLENT BUT WE'RE BEING SELECTIVELY BENEVOLENT. THAT IS TO SAY, WE'VE CHANNELLED THE INCREASE IN RECURRENT EXPENDITURE VERY DELIBERATELY INTO THE SOCIAL SERVICES, GIVEN THEM PRIORITY. APART FROM, OF COURSE, THE ENVIRONMENT WHICH IS A RATHER SPECIAL CASE BUT BASICALLY YOU SEE THE MAIN THRUST OF THE INCREASE IN SOCIAL SERVICES AND BY BEING SELECTIVE ABOUT IT AND NOT JUST INCREASING EXPENDITURE ACROSS THE BOARD IN ALL DEPARTMENTS, WE'VE BEEN ABLE TO KEEP THE INCREASE IN RECURRENT WITHIN OUR GUIDELINES.

80,

THAT'S A

IS

ARE ECONOMIC

POINT I WANT TO EMPHASISE BECAUSE IT'S RECURRENT EXPENDITURE WHICH DIFFICULT TO WIND BACK AGAIN IF YOU GET INTO A LOWER GROWTH SITUATION. SO WHY THEN THE QUESTION BECOMES DID WE SPEND MORE ON THESE OTHER ONE- OFF ITEMS THAN WE NORMALLY WOULD, AND THE ANSWER THERE IS PARTLY THE EXTRA SURPLUS THAT WE HAD THIS YEAR WHICH WAS PRODUCING RESERVES OF 120 BILLION OR SO, AND PARTLY OUR VERY GOOD PROSPECTS AS EVIDENCED BY THE GDP GROWTH FORECASTS. THE COMBINATION OF THOSE TWO LET US LOOSEN THE REINS A BIT BUT I'VE BEEN VERY CAREFUL THAT WHAT WE'RE LOOSENING THE REINS ON IN THE MAJORITY OF CASES ARE ITEMS WHICH INCREASE OUR, AS IT WERE, OUR BARNING POWER IN FUTURE. THAT'S TO SAY INCREASE OUR ECONOMIC GROWTH AND INCREASE OUR EFFICIENCY. ROUTE 3. TUEN MUN HIGHWAY, CONVENTION CENTRE EXTENSION, ITEMS LIKE THAT INVESTMENTS WHICH PRODUCE ECONOMIC RETURNS. WE'RE NOT SIMPLY PUTTING MONEY AS IT WERE INTO A HOLE IN THE GROUND, EXCEPT PERHAPS IN THE CASE OF THE SEWAGE PROGRAMME, ALTHOUGH I'M TOLD THERE, THERE ARE ALSO ECONOMIC RETURNS BECAUSE IF YOU DON'T DO IT WE'RE GOING ΤΟ SEE A FALLING OFF, FOR INSTANCE IN TOURISM. BUT GENERALLY SPEAKING ECONOMIC RETURNS OF INFRASTRUCTURE ARE ACTUALLY RATHER GOOD AND THAT'S WHAT'S HELPED TO KEEP HONG KONG AHEAD. SO, YES WE'RE BEING BENEVOLENT BUT WE'RE ALSO BEING VERY SELECTIVE AND WE'VE OF COURSE DELIBERATELY PAID A LOT OF ATTENTION TO WHAT THE PRIORITIES ARE AS EXPRESSED то US, EITHER THROUGH LEGCO MEMBERS OR MORE DIRECTLY FROM THE COMMUNITY. THAT SENSE I'M BEING MORE POLITICAL, I'M BEING MORE RESPONSIVE. THINK THAT'S THE JOB OF A GOVERNMENT 80 I DON'T MIND THAT DESCRIPTION AT ALL.

IN

I

QUESTION:

THIS

MR MACLEOD, YOU SAID

MORNING THAT YOUR FORECAST, YOUR CURRENT FORECASTS ARE BASED ON THE CURRENT, THE ORIGINAL FUNDING PROPOSALS FOR THE AIRPORT AND AS WE ALL KNOW YOUR SECOND PROPOSAL ASK FOR, SUGGEST ABOUT AN EXTRA 20 BILLION DOLLARS INJECTION INTO THE AIRPORT AND THE AIRPORT RAILWAY. DOES THAT MEAN THAT IF EVENTUALLY YOU SECURE AN AGREEMENT WITH THE CHINESE GOVERNMENT WITHIN THIS YEAR THAT THE LEVEL OF DEFICIT WILL BE EVEN HIGHER AND THAT YOUR EXPECTATION THAT BY 97/98 WE CAN COME BACK TO A SURPLUS OR BALANCED BUDGET THE HOPE WOULD BE FADING AWAY?

/WELL YOU'RE