TNAG-1728-FCO40-2441-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 159

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[In

In the

economic growth by increased trading opportunities with China. coming year, that is, 1988, despite a slowing down in forward order books for the first couple of months, business outlook has recently

improved beyond most expectations. If the present trend continues for

GOP

another six months; we may well see a reasonably healthy performance

5.5 of economic growth this year. Forecast ema

人 growth at per cent

could well then be conservative and it would not be beyond the realms of possibility to achieve a minimum growth of 8 per cent this year. All seems well so far, yet we must not and cannot afford to ignore

dark the black clouds that lie on the horizon beyond 1988.

Most world

renowned economists have predicted a slow-down in the US economy 12 beginning in 1989. Corporate decision makers have displayed extreme

ownturn. This # caution in their preparations to meet this predicted downt will certainly affect our export and other related services sector, thereby adversely affecting our ability to grow in 1989.

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What is even

more worrying is the possibility that such a slow down will not be 17 just confined to the year 1989. We may well be faced with a similar

thirdly situation for another two to three years. Hence, firstly, I support the Financial Secretary's steady approach in his management of our public finances. We should spend wisely on areas that need improvements. Social welfare services receive a much welcomed boost this year and I support it. Generally, it is my belief that our people accept that this Government has been, and I am sure that it will be in future,

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I am also sure

a responsible, responsive and compassionate Government. that in future there will be firm commitment in recurrent expenditure designed to help improve the quality of life of our citizens and those expenditures will be committed as long as we have the ability to earn

P28 what we can spend. To

To ensure that we will be able to afford such

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services for a long time in spite of the cyclical nature of our economy, we need to spend cost effèctively as well as to concentrate on helping those who really need help. The concept of means-testing should be an acceptable guideline to adopt in the design of most welfare services and I strongly urge the Government to bear this important concept in mind in future when new programmes are to be designed or when old programmes are to be reviewed. Drawing on the experiences of some developed nations, it is the scuttling of the concept of applying means-testing to welfare