TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 152

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in the general context of our financial and economic situation

complex as it is, though exciting too, provided we keep our

nerve.

I thought I had made it abundantly clear that additional revenue is required in 1974-75 and that, in order to raise what was required painlessly in terms of the economy, I had to look to road users for at least two-fifths of the extra $206 million required and a miscellany of other direct and indirect taxpayers and users of services for the other three- fifths. I thought I had also made it abundantly clear in paragraphs 156 157 of my budget speech that it was not my

If, by intention to pre-empt the debate on transport policy. engaging in a degree of reform of the present rather antiquated system of taxes levied on road users, I have given the impression that I was doing so, I can only apologise: I thought that, even if honourable Members did not appreciate my distinction between reform as such and restructuring in the pursuit of a policy objective, they would have accepted that revenue proposals, whose success depended on patterns of transport remaining largely unchanged, could not

I was have any possible bearing on transport policy.

obviously wrong.

48.

As an earnest of my good faith, I would be happy to eschew reform and raise the additional revenue required by applying an appropriate factor to existing platform rates.

I am only I do not wish to be in an ambiguous position. concerned to raise extra revenue in a way which makes fiscal sense and which is neutral in economic terms.

As regards car

licences, I chose the dividing line of 1,500 c.c. simply because it produced the maximum amount of revenue consistent with the object of distinguishing sensibly between large and small cars. I was not interested in dampening down the

number of cars on the roads. without the revenue if honourable Members pass the Appropriation Bill for there can be no question of our budgetting for a deficit, given our somewhat uncertain economic prospects.

49.

But we simply cannot do

In these circumstances, to defer the raising of additional revenue until after the debate on transport policy would be too dangerous and quite illogical too, for my road taxation proposals have nothing to do with transport policy /and...