TNAG-1727-FCO40-2440-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 19

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reduce direct taxes or possibly keep rates more steady.

And when the Financial Secretary is ready to announce

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the details, then we should make our observations, not

now indulge in contratarguments based on hypothetical assumptions derived from wrong premises. Why worry about the rice tax now, when the tax could be on wholesale energy sales? And I incidentally disagree also with those who say that we should wait for the introduction of an indirect tax until there is again

a significant economic downturn: With respect, by then it will already be too late and the Financial Secretary of the day will be in terrible trouble!

When discussing new taxes or new tax formats, Government should be aware that acceptance is more easily achieved in an environment of credibility about government spending. Tough negotiations on the Defence Costs Cop 18 Agreement is an example of a government seen working

Highly-publicised reports about the perks of government civil servants, on retirement or otherwise, on the other hand do not help. Nor normally do excessive pay increments for the Civil Service. I believe, however, that Government should do

more to educate the public about the background which

hard in the interest of the taxpayers.

Le

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creates the need for an increase in fivil Service strength in Hong Kong

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just now: It is not merely the new medical facilities

and the Police Tactical Unit which the Financial Secretary has mentioned that means new posts, but the additional demands made on the community and on the Administration overall by the reality of the transition period, the implementation of the Joint Declaration, the 'patriation' of legislation, the negotiation and administration of separate international agreements, the increased planning, supervisory and

34 regulatory work necessitated by our economic success

itself, and by novel economic activities over a broad

spectrum. I am gratified that the Financial Secretary has

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