XN000022-1997-03-12 — Page 32

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Mr Donald Tsang (in English): You asked again very involved questions. As far as our social programme is concerned, in estimating our elderly facilities - and not only elderly facilities for educational facilities for the young, various other things, and hospital facilities for the sick, all these plans are based on population forecasts. And obviously, what we have now provided and what we propose to provide under the Budget for additional facilities, reflected those figures.

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Then the question of whether the increasing what you are saying is whether the longevity of Hong Kong --

Reporter (in English): No, my question is really this Mr Tsang, I'm sorry I'm not making it very clear. On one hand you are making proposals that respond to social situations. What I am suggesting by my question is that these proposals themselves have an effect on people's decision-making and that you would be encouraging a different pattern of housing, a different demand of housing and perhaps even a different family size, just by the encouragements that are built-in by the various tax concessions, etc, that are in this. And whether you have considered that or whether demographers have looked at that in the course of preparing the Budget?

Mr Donald Tsang (in English); I do not think our Budget is that powerful, Francis. I do not think, for instance, that allowing incentives in terms of tax allowance for children will encourage people to make more babies. That certainly will not be the consequence of it. But what I am trying to do is to face the reality of the community and the population make-up at the moment and to what extent whatever concession I make is likely to make the greatest impact in the targeted group which I have in mind, i.e. the sandwich-class, and I think I have done that. Whether it is going to change societal demands on major economic activities, I don't think it will happen that way at all.

Reporter (in English): A very simple two-part question please. First, you have mentioned in your speech, sir, that when Hong Kong becomes a SAR it will have reserves of $330 billion, including the Land Fund. Could you break that down please?

And as a second question, you also mentioned your initiative as sort of the Business and Service Promotion Unit. Could you talk a bit more about that please?

Mr Donald Tsang (in English): I would love to. I mean I don't have to answer either two questions. First of all the breakdown of the $300-odd billion, Mr Kwong will answer that. The second question about Business Promotion and Service Industry, Mr Rowse will answer that.