XN000022-1994-10-26 — Page 25

WEDNESDAY, OCTOBER 26, 1994

LAND AND PROPERTY IS THE OTHER RESOURCE AREA WHERE WE CURRENTLY FACE CONSTRAINTS. MEASURES DEVISED BY OUR TASK FORCE, AS EXPLAINED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, HAVE SUCCEEDED FAR IN STABILISING THE RESIDENTIAL PROPERTY MARKET. WE ARE NOT COMPLACENT. WE RECOGNISE THAT PRICES ARE STILL HIGH AGAINST AFFORDABILITY. WE WILL CONTINUE OUR EFFORTS TO ENSURE A GREATER SUPPLY OF FLATS IN THE MEDIUM AND LONGER TERM. WE ARE ALSO THE COMMERCIAL PROPERTY MARKET CLOSELY, TO SEE THE EXTENT PROBLEM, AND WHAT MEASURES MAY BE NEEDED.

STUDYING OF ANY

IT HAS

SO FAR AS THE CONSUMER PRICE INDEX (A) IS CONCERNED, THANKFULLY MODERATED TO 8.6% IN SEPTEMBER, AND IT SEEMS WE ARE ON TARGET THIS YEAR FOR OUR FORECAST OF 8.5%.

PROMOTION OF THE SERVICE SECTOR

OF

I AM GRATEFUL TO SOME MEMBERS FOR HIGHLIGHTING THE QUESTION COORDINATING OUR EFFORTS IN THE PROMOTION DEVELOPMENT OF THE SERVICE SECTOR. WE HAVE COME TO THE SAME CONCLUSION THAT THIS MERITS SERIOUS THOUGHT. THE DIVERSITY AMONGST THE DIFFERENT SERVICE INDUSTRIES PROBABLY MILITATES AGAINST ANY SIMPLE ACROSS-THE-BOARD APPROACH. NEVERTHELESS, WE SHALL CONTINUE TO EXPLORE WAYS IN WHICH WE CAN ENHANCE HONGKONG'S ESTABLISHED POSITION AS A REGIONAL SERVICE CENTRE. TO THIS END, THE SECRETARY FOR TRADE AND INDUSTRY WILL CHAIR A COMMITTEE TO STEER A RAPID STUDY ON WHAT PROMOTIONAL SUPPORT THE SERVICE SECTOR NEEDS, HOW WE CAN HELP, AND WHAT OUR PRIORITIES SHOULD BE. THE COMMITTEE WILL DRAW ON THE EXPERTISE FROM BOTH THE TRADE DEVELOPMENT COUNCIL AND THE PRIVATE SECTOR, AS WELL AS RELEVANT GOVERNMENT DEPARTMENTS. WE BELIEVE THAT THERE MAY WELL BE SCOPE FOR SOME COORDINATED EFFORTS IN THE PROMOTION OF THE SERVICE SECTOR. WE ARE CONDUCTING USEFUL DISCUSSIONS WITH INTERESTED ORGANISATIONS AND I EXPECT TO SAY SOMETHING MORE DEFINITE ON THE SUBJECT EARLY NEXT YEAR. I AM GRATEFUL TO MEMBERS FOR RAISING THIS TOPIC.

MANAGEMENT OF PUBLIC FINANCES

MY SPEECH WOULD NOT BE COMPLETE WITHOUT MENTION OP THE MANAGEMENT OF PUBLIC FINANCES. ON THIS TOPIC, SOME RATHER SURPRISING

BUT WERE SAID, THOUGH REASSURINGLY ONLY BY A FEW MEMBERS. THINGS IS IMPORTANT TO CORRECT ANY MISAPPREHENSIONS WHICH EXIST.

IT

FIRST, THEN,

ONE MEMBER CLAIMED WE DID NOT HAVE A LONG TERM HE POLICY ON PUBLIC FINANCE. I THINK WHAT HE ACTUALLY MEANT WAS THAT DID NOT AGREE WITH OUR POLICY, FOR POLICY WE CERTAINLY HAVE - IT IS

BUDGET SET OUT (IN SOME WOULD SAY TEDIOUS DETAIL) IN EVERY

SPEECH.

A

AND I BELIEVE IT IS SO WELL KNOWN THAT IF I NUDGED A DROWSY MEMBER, OR RULE DROWSY CIVIL SERVICE COLLEAGUE, AND MUTTERED THE WORDS "FIRST OF PUBLIC FINANCE?" INTO HIS EARS, HE WOULD RESPOND IMMEDIATELY, IN CONDITIONED REFLEX, WITH THE PHRASE "KEEP GOVERNMENTPUBLIC EXPENDITURE WITHIN THE TREND GROWTH RATE OF THE ECONOMY".

/SECONDLY, IN