XN000022-1993-10-27 — Page 12

WEDNESDAY, OCTOBER 27, 1993

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ON MEMBERS' CALL TO INTRODUCE CAPITAL GAINS TAX то TACKLE PROPERTY SPECULATION, MR MACLEOD SAID HONG KONG HAD TO REMAIN COMMITTED ΤΟ A SIMPLE AND LOW TAX SYSTEM WHICH HAD PROVED VERY SUCCESSFUL OVER A VERY LONG PERIOD OF TIME IN CREATING A FAVOURABLE CLIMATE FOR BUSINESS GROWTH.

"IT IS MORE IMPORTANT TO MAINTAIN THIS WELL-TRIED SYSTEM THAN TO EMBARK ON NEW TAXES WHICH MAY RISK SENDING QUITE THE WRONG MESSAGE TO LOCAL AND OVERSEAS INVESTORS.

ON PRIVATISATION, MR MACLEOD SAID HE TOOK A POSITIVE VIEW OF THE MERITS OF PUTTING APPROPRIATE PARTS OF GOVERNMENT ONTO A MORE COMMERCIAL BASIS.

"THE FACT THAT THE MOST VISIBLE MOVES RECENTLY HAVE BEEN IN THE NEW AREA OF ESTABLISHING TRADING FUNDS DOES NOT MEAN THAT WE HAVE FORGOTTEN THE NEED TO REVIEW FROM TIME TO TIME OTHER POSSIBLE CANDIDATES FOR MORE AMBITIOUS CHANGES.

"BUT WE NEED ΤΟ CHOOSE THE TIMING AND THE CANDIDATES

CAREFULLY."

AS FOR CALLS TO REDUCE THE GOVERNMENT'S SHARE OF LOTTERY PROCEEDS IN FAVOUR OF THE LOTTERIES FUND, MR MACLEOD SAID INITIATIVES IN THE GOVERNOR'S POLICY ADDRESS TO IMPROVE SERVICES MIGHT RESULT IN ADDITIONAL DEMANDS ON THE RESOURCES LOTTERIES FUND MAKING IT A GOOD CASE FOR THE ADMINISTRATION TO ITS POSITION ON THE ISSUE.

HE ADDED THAT HE WOULD ANNOUNCE THE REVIEW IN NEXT BUDGET SPEECH.

THE NEW WELFARE OF THE REVIEW

YEAR'S

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AGREEMENT URGENTLY NEEDED IF AIRPORT IS TO STAY ON COURSE

MAKE

HONG KONG CANNOT PERFORM MIRACLES AND CONTINUES TO PROGRESS ON THE AIRPORT IN PARTICULAR IN THE ABSENCE OF AN AGREEMENT WITH THE CHINESE SIDE, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY) IN THE LEGISLATIVE COUNCIL.

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IN RESPONSE TO COMMENTS BY MEMBERS ON THE POLICY ADDRESS MR MACLEOD SAID GOOD PROGRESS HAD BEEN MADE IN THE NEW AIRPORT PROJECT.

BUT HE NOTED THAT THE GOVERNOR MADE THE POINT IN HIS POLICY SPEECH THAT "THE DATE IS NOT FAR OFF WHEN THE START OF SOME KEY AIRPORT CONTRACTS WILL BE HELD UP IF WE CANNOT SECURE THE CHINESE GOVERNMENT'S AGREEMENT ON FINANCING"

MR MACLEOD SAID: "WE SHOULD NOT BE IN ANY DOUBT ABOUT THAT. IT IS NOT A THREAT; IT IS A STATEMENT OF FACT.

"OUR INGENUITY IS NOW BEING TESTED BECAUSE KEY FRANCHISES AND CONTRACTS NEED ΤΟ BE LET VERY SOON BY THE PROVISIONAL AIRPORT AUTHORITY.

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*I MUST MAKE IT CLEAR THAT TIME IS NOT ON OUR SIDE IF WE ARE TO STAY ON COURSE."

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