ing provision of first degree places by 1995 among other things. Our third University is near com- pletion. Our efforts to improve our physical environment by implement- ing the wide-ranging and detailed proposals in the White Paper on Pollution will continue to bear fruit in the coming decade. And we published in September this year a draft White Paper on Social Wel- fare into the 1990s and beyond.
17. Indeed as far as the vast majority of our planning decisions are concerned, which cover such areas as social services, environ- mental protection and industrial development, 1997 is not a signifi- cant date. There is not one policy secretary who does not have a comprehensive long-term plan for the future stretching well beyond the end of this century. And they are enthusiastically determined to see them through.
18.
This consistency and deter- mination is important for Hong Kong because in planning for the future we must not allow ourselves to be distracted by immediate or short- term worries, such as those associ- ated with 1997.
19. In particular it is vital that we do not create crisis where none exists by losing faith in our own well established ability not only to sur- vive but to prosper. As several members have pointed out this community has a proven track rec- ord of being able to overcome any problem which confronts it. Those of us who lived throuh the dark days of 1967, and the oil crisis of the 1970's can testify to Hong Kong's ability to bounce back.
20. It is a sad reflection of the times that the international view of Hong Kong's future is sometimes more optimistic than that of our people here. There are consider- able dangers in that, because the confidence of international inves- tors will be affected by our own view of Hong Kong's future prospects. And indeed Hong Kong needs local and overseas investment if it is to
continue to flourish as an interna- tional business and manufacturing
centre.
21.
Hong Kong has set down far sighted physical and social develop- ment plans which will dramatically improve the quality of life in the next century. The people of Hong Kong now have a vision of the fu- ture based on a confident but realis- tic assessment of what is possible in the years ahead. But to make that vision a reality we must carry through the plans with determination and enthusiasm. We have no doubt that we can, in the time honoured Hong Kong way, deliver the goods on time and within budget.
***
Financial Secretary, Sir Piers Jacobs
Clearly the construction of the replacement airport and the related transport infrastructure does involve a very substantial financial commitment. But I wish to under- line the fact that investment in the airport programme is investment in Hong Kong's future. When com- pleted, the airport and related fa- cilities will bring to Hong Kong long term economic and financial bene- fits far greater than the cost of the investment, and these benefits will be enjoyed well into the next cen- tury.
2.
Turning to the past, the key factor enabling us to decide to pro- ceed with the airport programme was and is Hong Kong's financial strength. I have in mind, first, the very substantial reserves of over $70 billion which we have built up in recent years through prudent man- agement. This compares with re- serves of only $24 billion five years
ago. Secondly, I have in mind the Special Administrative Region Government Land Fund. While the SAR Government Land Fund will not be part of the reserves until July 1997, it consists of income from land sale premia which previously would have gone into the reserves.. The Land Fund is clearly of relevance when assessing the long term strength of Hong Kong's finances, and par- ticularly the strength of the finan- cial situation which the SAR Gov- ernment will inherit on its estab- lishment in 1997.
3. The balance transferred to the SAR Government Land Fund already stands at over $17 billion at the end of fiscal year 1989-90. Even on fairly conservative assumptions about future land sales and interest, the Land Fund should be well over $70 billion by March 1997 - that is to say, more than our existing reserves. Our financial planning assumes that the Hong Kong Government does not draw at all on the Land Fund under the provisions of the relevant section of the Sino British Joint Declaration. Thus, when the SAR Government comes into being, it should have an airport which will produce revenue, a greatly improved infrastructure, much of which will also be revenue-producing, and somewhat larger reserves than we presently enjoy.
4.
We would not have proceeded with this package of projects if we did not believe that doing so was clearly within our financial capac- ity. I hope the figures I have just referred to, that is, our reserves, the SAR Government Land Fund to- gether with the potential land sales revenue of $40 billion at present day prices, will demonstrate the strength of our position.
5. But there are other impor- tant aspects of our financial strat- egy for the airport programme. The first is the need to control the over- all cost of the programme effec- tively.
6. The second relates to the need to keep public sector costs to the
No comments yet.
Private notes are available after approval.