XN000022-1993-04-22 — Page 10

MR PRESIDENT : ANY SUPPLEMENTARY'S, MR CHENG,

THURSDAY, APRIL 22, 1993

MR

CHENG + THANK YOU MR PRESIDENT. BESIDES USING THE USUAL PERSUASIVE POWER, WHAT OTHER EFFECTIVE STEPS WITHIN THE CONTROL OF THE GOVERNMENT CAN BE APPLIED TO ENSURE THAT WHAT WE, OR WHAT THE PEOPLE OF HONG KONG FEEL IS A GOOD POLICY CAN BE MORE EFFECTIVELY ACTIVELY PURSUED BY THE HOUSING AUTHORITY?

OR MORE

A

GOVERNOR ! I THINK IT WOULD BE PERHAPS UNWISE OF ME TO GET INTO A DIALOGUE BEFORE THERE IS A NEW, I'LL GET IT RIGHT THIS TIME, CHAIRPERSON. I'M GLAD THAT THE HONOURABLE LADY NODS. BEFORE THERE'S NEW CHAIRPERSON OF THE HOUSING AUTHORITY BUT IT OBVIOUSLY AFFECTS BOTH THE BALANCE IN CONSTRUCTION, IT AFFECTS THE ROLE OF THE HOUSING SOCIETY, IT AFFECTS THE AMOUNT OF CHEAPER ACCOMMODATION FOR HOME OWNERSHIP, FOR FIRST TIME OWNERS WHICH IS PROVIDED. THOSE ARE SOME OF THE MATTERS THAT WE HAVE TO LOOK AT. IF AS SEEMS ALAS LIKELY WE CAN'T GET THE PROGRESS WE WOULD LIKE BY SELLING EXISTING FLATS WITHIN BLOCKS TO THE PEOPLE WHO LIVE IN THEM.

MR PRESIDENT : ANY FURTHER SUPPLEMENTARY'S? NEXT QUESTION THEN. MR NGAI SHIU-KIT.

MR NGAI SHIU-KIT : SIR, WHAT SPECIFIC MEASURES WILL BE ADOPTED BY THE GOVERNMENT ΤΟ COMBAT INFLATION? WILL THERE BE A STRATEGY ΤΟ ВЕ IMPLEMENTED IN THE PUBLIC SECTOR SO THAT GOVERNMENT WILL TAKE THE LEAD IN THIS MOST NEEDED COURSE OF ACTION AND WHAT DOES GOVERNMENT PROPOSE TO DO TO ENSURE THAT MEASURE ADOPTED WILL BE EFFECTIVE?

GOVERNOR

INFLATION AS THE HONOURABLE MEMBER WILL KNOW, IS VERY OFTEN A STRUCTURAL CONSEQUENCE OF HIGH LEVELS OF ECONOMIC GROWTH. I'M SURE THAT OUR COLLEAGUES ELSEWHERE IN THE REGION WHERE THEY SUFFER FROM HIGHER LEVELS OF INFLATION WOULD MAKE THAT POINT IF PRESSED. BUT NO LEVEL OF INFLATION CAN BE EASILY OR HAPPILY TOLERATED AS THE FINANCIAL SECRETARY HAS MADE CLEAR ON A NUMBER OF OCCASIONS. THERE ARE SOME SPECIFIC FEATURES OF OUR INFLATION IN HONG KONG WHICH ARE PARTLY A CONSEQUENCE OF OUR CIRCUMSTANCES. I THINK ONE CAUSE OF INFLATION IS THE SHORTAGE OF LAND WHICH I HOPE THAT INCREASED RECLAMATION OVER THE NEXT FEW YEARS WILL HELP AT LEAST TO ALLEVIATE. ANOTHER FACTOR IN OUR INFLATION IS THE PROBLEMS OF LABOUR SUPPLY WHICH RAISES AN ISSUE OF SOME CONTROVERSY, NOT ONLY IN THIS CHAMBER BUT OUTSIDE IT AS WELL. IT RAISES THE QUESTION OF THE IMPORTATION SCHEME, IT RAISES THE QUESTION OF TRAINING AND RE-TRAINING. THOSE ARE MATTERS THAT WE HAVE TO ADDRESS. WHEN THE HONOURABLE MEMBER REFERS TO THE PUBLIC SECTOR, I THINK THE MOST IMPORTANT THING FOR THE PUBLIC SECTOR TO DO IS то INCREASE THE EFFICIENCY WITH WHICH IT USES RESOURCES AND TO ENSURE THAT CURRENT EXPENDITURE IN THE PUBLIC DOES NOT IN ITS GROWTH YEAR ON YEAR EXCEED THE GROWTH IN THE GNP OF THE ECONOMY AS A WHOLE. NOW THOSE MAY NOT BE NECESSARILY ISSUES ON WHICH THE EXECUTIVE AND THIS COUNCIL ARE ALWAYS IN AGREEMENT BECAUSE VERY OFTEN THIS COUNCIL, FOR UNDERSTANDABLE REASONS, WANTS US TO SPEND MORE MONEY THAN THE RATE OF INCREASE IN GNP WOULD JUSTIFY. AND VERY OFTEN THIS COUNCIL WANTS US TO TAKE DECISIONS ON FEES AND CHARGES WHICH WOULD NOT LEAD TO US MAXIMISING THE EFFICIENCY WITH WHICH RESOURCES ARE USED. WE HAVE TO DO ALL WE CAN ΤΟ MAKE SURE THAT RESOURCES ARE USED EFFICIENTLY WHICH DOESN'T, PARADOXICAL AS IT MAY SEEM TO CUSTOMERS, ALWAYS MEAN HOLDING DOWN CHARGES OR FEES.

PUBLIC SECTOR

/MR PRESIDENT

Page 10Page 11