XN000022-1997-04-01 — Page 2

Lack of balance in Budget debate disconcerting: Acting FS

The acting Financial Secretary, Mr K C Kwong, today (Tuesday) said there were several disconcerting trends in the debate and public discussions so far on the 1997-98 Budget presented to the Legislative Council on March 12.

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He said: "I believe it would be fair to say that anywhere else in the world, such a Budget - higher spending, lower taxes, healthy surplus would be the cause for celebration and congratulation. And I am certain that our Budget will have been well received by international business communities and by such authoritative bodies as the International Monetary Fund (IMF) and the World Bank.

"Yet here at home, there has been a chorus of criticism on one single issue comprehensive social security assistance (CSSA) payments for the elderly - and little debate on all the rest of the Budget. This lack of balance in the domestic debate is disconcerting."

Mr Kwong was addressing the luncheon of the French Business Association in place of Mr Donald Tsang who could not attend the function for family reasons.

He explained that, last May, as had been the practice for a number of years, the Financial Secretary and his team began a comprehensive programme of consultation on spending priorities for the coming year,

"We made a special point of making ourselves available to each and every Legislative Councillor. When that round of consultation had been completed, we sat down to finalise the Resources Allocation Exercise," Mr Kwong said.

"It was not easy but together we were able to satisfy a very high percentage of the various bids. By one count, we met some 80 percent of the requests put forward by the political parties."

The acting Financial Secretary found disappointing the largely negative reaction to the Budget focusing on one and one issue only, almost at the expense of everything else.

"We do not expect bouquets. Civil servants never do. But we do hope that our genuine consultation, careful thought and sincere efforts to meet requests could have been recognised. Not simply dismissed or ignored," he said.