-
22-
"I do not share this pessimism. ... Similarly, I do not see how anyone who has read the party manifestos and listened to the political debates in last month's elections could possibly reach such a conclusion.
"Nevertheless, it is only fair to say that there is a perception in some circles that you might introduce radical changes which would lead inexorably in later years to higher taxes and would expand the Government's role in the economy.
"Let me repeat. I do not believe that there is any inclination in this Council to do so. Nevertheless, I believe this Council could make its own positive contribution to business confidence and provide a significant incentive to new investment by removing all uncertainty about your own convictions that economic success must remain our first priority.
"You could provide both Hong Kong and our trade and investment partners around the world with a clear guarantee that this Council will do nothing to undermine our financial stability or our commitment to an open economy.
"The most convincing way to do so would be for this Council to endorse the economic policies which have been the foundation of Hong Kong's success over the last four decades.
"These policies can be summed up in a simple rule. Government expenditure should increase over time only in line with the trend rate of economic growth, what I have called the 'living within your means' principle of public expenditure.
"As a result of this rule, public expenditure has not exceeded 20 per cent of GDP, and the Government has confined its role to supporting, not to dominating, the
economy.
"Such an endorsement would, of course, be purely a matter for this Council. But a statement of this sort would demonstrate to the doubters that our first fully- elected Legislative Council intends to operate on the same broad consensus as its predecessors."
End/Wednesday, October 11, 1995
Page 30Page 31
No comments yet.
Private notes are available after approval.