|
past events |
|---|
2008/12/18 Navigating into Uncharted Waters: China's New Challenges for 2009 |
Yonghao Pu, Managing Director, Head Wealth Management Research Asia-Pa...
 details>> |
|
2008/12/17 Surviving a Retail Downturn |
KPMG's Fergal Power, Director of Financial Advisory Services, and coll...
details>> |
|
2008/12/11 AIG and The Economy: The Way Forward |
Edward Liddy, Chairman and Chief Executive Officer of AIG, spoke at a ...
details>> |
|
2008/12/08 中國增值稅轉型改革午餐研討會 |
此項新税收措施對本港廠商在內地投資將有何影響？廠商應如何部署以盡量利用新措施帶來的優惠？本會誠邀德勤華永會計師事務所有限公司深...
details>> |
|
2008/12/04 Town Hall Forum with Kenneth Chen, Under Secretary for Education |
Kenneth Chen, Under Secretary for Education, exchanged views with memb...
details>> |
|
|
more >> |
|
|
BUDGET TARGETS ARE WELCOME, BUT CHAMBER HOPES DIFFICULT DECISIONS WILL BE MADE TO
REACH TARGETS
The Hong Kong
General Chamber of Commerce (HKGCC) welcomes the Financial Secretary's recognition of the
need for smaller Government and the targets he set for the size of government. HKGCC also
believes that his intention to cut civil service wages by 4.75 per cent this year, as
outlined in the 2002-03 Budget announced today, is more in keeping with the difficult
economic environment today.
Chamber
Chairman, Mr Christopher Cheng, said the Financial Secretary's targets for reducing
overall public spending to 20 per cent of Gross Domestic Product (GDP) and achieving
Budget balance by 2006-07, in both the operating and consolidated balances, were laudable.
He expressed
concern, however, that the Budget was short on specific measures on how these aims were to
be achieved over the medium term, and that there were no targets for further restructuring
the civil service and further reducing the numbers in the service.
"The one significant specific
measure to be announced, the proposed civil service wages cut, must be followed
through," he said. "It cannot afford to be moderated
or changed when the private sector pay review exercise is completed in May. Furthermore,
it should only be the first step in a series of difficult decisions the government must
make to control expenditures."
Mr Cheng added: "Without other
specific details of how expenditure is to be restrained and/or revenues enhanced in the
period through to 2006-07, it is impossible to say whether the overall aims of smaller
government and Budget balance can be achieved.
Having said that, HKGCC welcomes the
fact that the Financial Secretary has recognized the need for smaller government and for
the Hong Kong SAR to reduce costs overall and enhance value if it is to meet the
challenges and take advantage of the opportunities that lie ahead of us."
Mr Cheng said that the Chamber was
pleased to see the Financial Secretary's emphasis on Hong Kong's key strengths - its geographical location, strong institutions, manpower talent and strong
business base - and the need to focus on its strengths in
financial services, logistics, tourism and professional services.
"It was also good to see the
Financial Secretary focus on the challenges ahead including the need to be cost
competitive, to improve our manpower resources, to enhance our economic links within the
region, especially with the Mainland of China, and also to define the more active
supporting role of the government," he said.
"We particularly welcome his
acknowledgement of the importance of the need for the Closer Economic Partnership
Arrangement (CEPA) with the Mainland, an idea the Chamber has strongly supported and
championed over the past couple of years."
Finally, Mr Cheng said that despite
the need to enhance revenues to balance the Budget, the Chamber welcomed the measures
taken to reduce the burden on business and individuals, which will cost $3 billion in
revenue in 2002-03 and $6.4 billion in a full year. These include such things as further
rate relief for households, the waiving of water and sewage charges and the trade effluent
surcharge, business registration, concessions on low sulphur diesel and the freezing of
most Government fees and charges until March next year.
The
Chamber agreed with the Financial Secretary that now is not the right time to introduce a
broad based consumption tax (a goods and services tax) —believing
that the expenditure question must be tackled first.
However, the Chamber supported the
introduction of the levy on cross-border movements - the $18
Border Facilities Improvement Tax - especially if the $1 billion
raised was used to enhance facilities at the border and improve the efficiency of
cross-border movement.
For further information, contact Dr Eden
Woon on 2823-1211
|
|
|
