TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 91

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DRAFT SPEECH BY HON F K HU, OBE, JP LEGISLATIVE COUNCIL 27.3.85

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Budget Debate 1985

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Sir,

It is a great relief to Hong Kong that we are now out of the confidence crisis since the signing of the Sino-British Agreement on the future of Hong Kong. The Financial Secretary pointed out in his budget speech that the general increase in economic activity and the return of confidence helped to stimulate a recovery in private investment in plant and machinery throughout the year and there has been effective full employment. The Administration should be congratulated on its decision to remain steadily and visibly on course towards a return to balanced budget without resort to stop and go tactics and we have to learn to live with the reality of the drastic fall in land revenue to about $1.7 billion in net terms, which in the Financial Secretary's opinion may establish a trend for

future years.

On

I share the Financial Secretary's view that enterprise and hard work are stimulated by low direct taxation and by confidence that it will remain low. It is such belief and encouragement that have enabled Hong Kong to establish itself as one of the leading industrial, commercial and financial centres and that have brought in more wealth and revenue. the other hand, we have to look for ways and means to reduce expenditure without affecting our long term goal of stability and prosperity. We must continue to take care of those who are least able to care for themselves. I see no reason to carry on policies which allow for across-the-board subsidy including subsidizing those who can afford to pay the full cost.

This is

an area where the Administration should pay more attention to as considerable saving can be achieved without sacrificing the principle of caring for those who cannot care for themselves.

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