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"This is simply unrealistic, especially considering there is no guarantee it would work and no guarantee that the money released would not go straight into savings instead of into spending.

"We do better- far, far better - in the long run to stick with our tried and tested formula of living within our means and keeping taxes low and predictable. We do best of all by maintaining our commitment to free markets and minimal government interference," he said.

End

Fees and charges policy simple and nice

The government policy on fees and charges is simple, practical and fair, the Financial Secretary, Mr Donald Tsang, said in the Legislative Council today (Wednesday),

In his first Budget speech, he said where there were overwhelming social considerations, the Government subsidised heavily, providing services free or at a tiny fraction of their cost.

This is the basis on which the Government provides hospital services, education and public housing.

But for other services which the Government provides, where there is no overriding social need, the Government must maintain the principle of user pays and full cost recovery.

Those who use these services, often for commercial purposes, should pay the

full cost.

"I can see no case for taxpayers subsidising such services. The user-pays principle is an integral part of our system of public finances.

"It is part of the balance we have to strike if we are to go on providing heavily- subsidised services while, at the same time, keeping taxes low," he said.

Short-term gestures made at the taxpayers' expense would only jeopardise the fundamentals of the public finances, Mr Tsang added.

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