XN000022-1995-11-08 — Page 31

1.

Hong Kong's economy

Following is the speech by the Financial Secretary, the Hon Donald Tsang, in the motion debate on Hong Kong's economy in the Legislative Council today (Wednesday):

Mr President, Honourable Members,

Introduction

I welcome today's debate on the economy because it gives us an opportunity to examine together the essential ingredients of our economic policy. Indeed I agree to many points made by Honourable members this evening. I shall certainly consider them very carefully. I look forward to continuing these discussions with Members as I prepare the ground for my Budget next March.

I want to make it clear at the outset today that I hope we can proceed on the basis of consensus. I want to identify the real concerns of the community and I want to address them. But I am also determined to preserve the market-based economic philosophy and policies which have served us so well during more than three decades of economic expansion. I believe that there is a solid consensus on economic policy in this Council, and in the community as a whole. This should be our starting point for today's debate.

I have noted that Mr Allen Lee has worded his motion very carefully. He does not talk about a recession. He does not talk about a crisis. He talks, instead, about a slow-down in economic growth and an increase in unemployment. He also talks about identifying the root causes of these problems and addressing them. This is exactly how we should approach the issues and that is why I have no serious difficulty with his motion. I welcome it as a valuable opportunity to develop an important dialogue between this Council and the Government.

To identify the root causes of our economic problems and to develop an appropriate response, we need to clear the ground a little. Let us start with the facts, facts which I think provide common ground for the debate.