1983 — Page 138

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HONG KONG URBAN COUNCIL

The Housing Department has decided to convert the Y-shape public housing blocks into H.O.S. flats for sale, as a result of which public housing flats are being built at an even slower speed.

During 1983 government granted approval for over 15 public utilities to increase their charges on the pretext of so-called 'reasonable profit', ignoring the hardship of the public. These in turn boost the prices of other commodities and drain the people of their income.

Now on government's attitude towards democracy. A number of government officials have flaunted the openness of Hong Kong's political system, claiming that the various consultative bodies under the government are able to collect public opinions properly. As a matter of fact, these various consultative bodies can only offer suggestions and are not in a position to make decisions. The officials concerned can simply ignore the public opinions. For example, in the cases of the resettlement of singletons, anti-price-increase signature campaign supported by over 500,000 people etc., the government departments do not give a damn about public opinions. This is indicative of government's attitude towards democracy. Indeed, is there democracy? Recently, about the tax operators requesting for higher fares and also the E.R.P. system, these indicate the Government's attitude towards democracy.

(2) The causes

The political structure in Hong Kong is one of collaboration between the authorities and the business tycoons in the 18th century semi-colonial fashion. The Executive and Legislative Council members are all appointed by the Governor. Most of them represent the major moneyed groups or the upper classes and manipulate government policies. The different classes in Hong Kong are very unevenly represented on both Councils. Under such a political system, which is not very democratic, public utility companies run by the major moneyed groups are allowed to increase charges again and again because their representatives dominate both the Execo and the Legco. Financially, government does not benefit much from such increases, which, however, have the effect of greatly lowering the people's living standard. For instance, government's budget is not geared to narrowing the gap between the rich and the poor.

Hong Kong's corporate profit tax, whose rates range from 15% to 17%, is the lowest in South-East Asia. I wonder why the government does not slightly increase the profit tax imposed on major moneyed groups, say by 1%, at this time of economic recession and declination of living standard, but resorts to increases in indirect taxation, which, according to economic theories, would only further widen the gap between the rich and the poor. It places the burden of public expenditure on the shoulders of the general public at a time of economic depression. These are the results of manipulation of government policies by major moneyed groups and collaboration between government officials and the business tycoons. The ordinary people are completely at their mercy.

HONG KONG URBAN COUNCIL

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Government economic policy is unsound. For a long time, the Hong Kong Government keeps to the policy of laissez-faire, believing that market forces will effectively regulate the supply and demand of resources. Government gives little support to those industrial exports which lack competitiveness in the international market; nor has it made any long-term planning for the economic development of the whole society.

However, I firmly believe that the manufacturing industry is the most important pillar of Hong Kong's economy. The ups and downs of our manufacturing industry, which employs most of the working force, have great effects on the development and stability of our society.

I, therefore, am of the opinion that government should now make real efforts to support industrial growth so as to make our industries more capable of facing their competitors and challenges. It should be realized that industries make it possible for our economy to progress steadily and, unlike the transactions in a financial centre, they are not disturbed by speculators or hot money. If government still does not provide a climate suitable for industrial investment, our industries will not be able to overcome the bottle-neck situation that may crop up when the international economy upsurges again since we are now already short of fixed investments. Our export trade, foreign exchange, employment and economic stability too will suffer as a result.

(3) My suggestions to the government

Opportunities should be provided for public participation in government by taking gradual steps to replace the present consultative democratic system with that of democratic election. Government should empower the District Boards to decide on policies in regard to the administration of their districts and introduce the system of direct election for the Executive and Legislative Councils to ensure that the government works under the supervision of the public. Only in this way will the people's rights and interests be respected.

Modification of economic policy

(i) An economic policy of limited regulation should be adopted in place of the current laissez-faire and efforts should be made to implement the recommendations contained in the report on industrial diversification. At the same time, active steps should be taken to promote industrial development.

(ii) With regard to the allocation of financial resources, the rates of corporate profit tax should be raised after due consideration of the circumstances in order to boost government's revenues so that it will be able to balance its budget. Thus, the people's living will be improved and the gap between the rich and the poor narrowed.

Improvement of the people's livelihood

(i) Housing should be improved. Government should grant more money to speed up the building programme so as to build over 50,000 units for rent

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