XN000022-1997-03-12 — Page 29

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Mr Donald Tsang (in English): First of all, Mr Vines, you know that we are already spending to, what I say, to the limit in that the 5% guideline has been fully met. As far as internal arrangement of expenditure is concerned, this is a matter almost entirely for Hong Kong Government, decided by the Star Chamber. But on this matter of veto, perhaps Mr Kwong who has been dealing with the Chinese side will answer that question.

Mr K C Kwong (in English): In fact in the whole preparatory process the initiatives have been taken by the departments and branches within the Hong Kong Government and the Financial Secretary consulted widely, including the legislature, professional bodies and through the District Offices the community at large. At the end of the day a consensus was reached in the Budget Expert Group and I think this is a Budget which represents what we would have done with or without Chinese participation.

Mr Donald Tsang (in English): We have abided by our budgetary guidelines and principles throughout the process. We have not made any sacrifices at all on matters of principle during our consultation process.

Reporter (in Chinese): Mr Tsang, for this Budget, okay, you submit it to LegCo for vetting but the provisional legislature said that they will also scrutinise this Budget. Do you think it is appropriate, whether before or after July? If they want you to answer questions will you go to the provisional legislature to answer questions?

Mr Donald Tsang (in English): I am an official, I will take things as they come. As I said last year my primary task is to get the blessing of this Legislative Council, this is my prime task. I will put in all my efforts here. I don't consider other issues for the time being.

Reporter (in Chinese): Mr Tsang, your speech says that to cope with the expenditure in the next five years regarding the medium range forecast you have to have certain surpluses and you say that after the SAR is set up there will be robust programmes. Now what will be the money for? I think you have some ideas. Okay, you have a lot of surplus. How can you justify the surplus so that the public will not see you as a miser?

Mr Donald Tsang (in Chinese): Now please understand this. About this concept of a miser, if you look at the expenditure, as I said, we followed the trend growth rate. It is 5%. It is to the full. We haven't spend less, so we are not miserly. Even if we have more money we can't spend more, otherwise we will have unacceptable inflation. But this year we are conservative and I have explained that in my speech. We considered the expenditure in the next few years and we considered the setting-up of the SAR. There may be extra pressures because of that and so we have to have healthy finances. As for future plans, we don't have specifics yet. Mr Tung and Exco will have to decide on the future path.