TNAG-1609-FCO40-22131-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 91

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Other Financial Matters

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28. S, Before turning to Members' comments on the

economy and other matters raised in this debate, I would

like to respond to two points made by Mr. David Li relating

to financial matters. On taxation of Hong Kong Dollar

capital market instruments, the Commissioner of Inland

Revenue has recently received a formal submission from the

Capital Markets Association. This arose from the

continuous dialogue established recently between the

Association and the Monetary Affairs Branch.

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submission will be examined carefully. There will need to

bé further consultation with the financial community before

we reach any conclusions.

28.

The second point concerns the allegation that

there is a conflict of interest when the Secretary for

Monetary Affairs acts "both as industry regulator and at

the same time as chairman of

commercial banks (under

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Government ownership)" and that this could be resolved by

Government making greater efforts in returning the banks to

profitable operation and disposing of them in the market.

Of course, we would like to return these banks to

profitable operation and disengage the Government from

ownership. That is what our efforts are all about. In the

meantime, there is no conflict or certainly none that

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cannot be easily resolved. I might add, that the banks in

question must comply with the Banking Ordinance just like

any other banks.

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