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OFFICIAL RECORD of PROCEEDINGS Thursday, 29 LEGISLATIVE COUNCIL ─ 29 March 2001 4355 OFFICIAL RECORD OF PROCEEDINGS Thursday, 29 March 2001 The Council met at half-past Two o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.S., J.P. THE HONOURABLE KENNETH TING WOO-SHOU, J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, J.P. THE HONOURABLE DAVID CHU YU-LIN THE HONOURABLE CYD HO SAU-LAN THE HONOURABLE ALBERT HO CHUN-YAN IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, J.P. THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. THE HONOURABLE ERIC LI KA-CHEUNG, J.P. DR THE HONOURABLE DAVID LI KWOK-PO, J.P. THE HONOURABLE FRED LI WAH-MING, J.P. THE HONOURABLE NG LEUNG-SING 4356 LEGISLATIVE COUNCIL ─ 29 March 2001 PROF THE HONOURABLE NG CHING-FAI THE HONOURABLE MARGARET NG THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE HUI CHEUNG-CHING THE HONOURABLE CHAN KWOK-KEUNG THE HONOURABLE CHAN YUEN-HAN THE HONOURABLE CHAN KAM-LAM THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE SIN CHUNG-KAI THE HONOURABLE ANDREW WONG WANG-FAT, J.P. DR THE HONOURABLE PHILIP WONG YU-HONG THE HONOURABLE WONG YUNG-KAN THE HONOURABLE JASPER TSANG YOK-SING, J.P. THE HONOURABLE HOWARD YOUNG, J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE YEUNG YIU-CHUNG THE HONOURABLE LAU CHIN-SHEK, J.P. LEGISLATIVE COUNCIL ─ 29 March 2001 4357 THE HONOURABLE LAU KONG-WAH THE HONOURABLE LAU WONG-FAT, G.B.S., J.P. THE HONOURABLE MRS MIRIAM LAU KIN-YEE, J.P. THE HONOURABLE AMBROSE LAU HON-CHUEN, J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE CHOY SO-YUK THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE SZETO WAH THE HONOURABLE LAW CHI-KWONG, J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, J.P. THE HONOURABLE LI FUNG-YING, J.P. THE HONOURABLE HENRY WU KING-CHEONG, B.B.S. THE HONOURABLE TOMMY CHEUNG YU-YAN, J.P. THE HONOURABLE MICHAEL MAK KWOK-FUNG THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE LEUNG FU-WAH, M.H., J.P. DR THE HONOURABLE LO WING-LOK 4358 LEGISLATIVE COUNCIL ─ 29 March 2001 THE HONOURABLE WONG SING-CHI THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE IP KWOK-HIM, J.P. THE HONOURABLE LAU PING-CHEUNG THE HONOURABLE AUDREY EU YUET-MEE, S.C., J.P. MEMBERS ABSENT: DR THE HONOURABLE LUI MING-WAH, J.P. THE HONOURABLE BERNARD CHAN THE HONOURABLE TIMOTHY FOK TSUN-TING, S.B.S., J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE MRS ANSON CHAN, G.B.M., J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE DONALD TSANG YAM-KUEN, J.P. THE FINANCIAL SECRETARY MR MICHAEL SUEN MING-YEUNG, G.B.S., J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS MR CHAU TAK-HAY, J.P. SECRETARY FOR COMMERCE AND INDUSTRY MR GORDON SIU KWING-CHUE, J.P. SECRETARY FOR PLANNING AND LANDS LEGISLATIVE COUNCIL ─ 29 March 2001 4359 MR DOMINIC WONG SHING-WAH, G.B.S., J.P. SECRETARY FOR HOUSING MISS DENISE YUE CHUNG-YEE, J.P. SECRETARY FOR THE TREASURY MR LAM WOON-KWONG, G.B.S., J.P. SECRETARY FOR HOME AFFAIRS MR STEPHEN IP SHU-KWAN, J.P. SECRETARY FOR FINANCIAL SERVICES MRS LILY YAM KWAN PUI-YING, J.P. SECRETARY FOR THE ENVIRONMENT AND FOOD DR YEOH ENG-KIONG, J.P. SECRETARY FOR HEALTH AND WELFARE MRS REGINA IP LAU SUK-YEE, J.P. SECRETARY FOR SECURITY MR LEE SHING-SEE, J.P. SECRETARY FOR WORKS MRS CARRIE YAU TSANG KA-LAI, J.P. SECRETARY FOR INFORMATION TECHNOLOGY AND BROADCASTING MRS FANNY LAW FAN CHIU-FUN, J.P. SECRETARY FOR EDUCATION AND MANPOWER MS SANDRA LEE SUK-YEE, J.P. SECRETARY FOR ECONOMIC SERVICES MS ANISSA WONG SEAN-YEE, J.P. SECRETARY FOR THE CIVIL SERVICE 4360 LEGISLATIVE COUNCIL ─ 29 March 2001 DR EDGAR CHENG WAI-KIN, J.P. HEAD, CENTRAL POLICY UNIT CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MR LAW KAM-SANG, J.P., DEPUTY SECRETARY GENERAL LEGISLATIVE COUNCIL ─ 29 March 2001 4361 BILL Second Reading of Bill Resumption of Second Reading Debate on Bill PRESIDENT (in Cantonese): Council will now continue with the debate on the Second Reading of the Appropriation Bill 2001 PRESIDENT (in Cantonese): Will those Members who wish to speak please press the "Request-to-speak" buttons? APPROPRIATION BILL 2001 Resumption of debate on Second Reading which was moved on 7 March 2001 MR ERIC LI (in Cantonese): Madam President, before going to the subject matter, I would like to express my heartfelt thanks to the Financial Secretary for his laborious work over these years, bearing in mind that this is his last Budget in office. In particular, I have to thank him because in his past Budgets, he accepted readily many suggestions made by the accounting sector in relation to the development of the tax regime and the handling of public accounts. In his An Exhortation to Learning, Xunzi said that "if there is no dark obscurity in purpose, there will be no reputation for brilliance; if there is no hidden secretiveness in the performance of duties, there will be no awe-inspiring majesty in achievements."1 What the people of Hong Kong need badly now is political leadership — leadership endowed with absolute sincerity and concentration, thorough wisdom, insight into world circumstances and reasons, coupled with the approach of "Honing Our Strengths" in handling things. It is with these qualities that the leadership is able to pursue awe-inspiring majesty in achievements for the people instead of for an individual. 1 《荀子》Xunzi, 湖南人民出版社 1999 4362 LEGISLATIVE COUNCIL ─ 29 March 2001 I have remarked openly that this Budget is like a "stocktaking of fiscal policies" rather than one dealing with fiscal balance. I did not mean to belittle anyone or anything when I made this remark. In particular, before the release of the Budget, I wrote some articles requesting the Financial Secretary not to take actions that are too drastic. Instead, he should proceed step by step, and wait till the tax review commission has come up with a conclusion before introducing a reorganization of the taxation arrangements of a longer-term and fundamental nature. We do not have to "resort to gimmicks" each and every year in order to "run the country"; "prudent planning before action" is also great management wisdom. The economic environment in the beginning of the 21st century is wrapped in uncertainties. The main reason for this is rapid globalization of world economy. Moreover, nowadays, international funds are highly concentrated in the hands of the executives belonging to a few major professional fund houses and multinational enterprises. These professional lords of the financial market are extremely decisive and swift in their reactions to changes in market information. Furthermore, with the continuous emergence of powerful advanced investment tools, the "contingency time gap" for the modern international financial market to respond to new signs and re-position itself is becoming increasingly narrow. Thus, we are invariably caught unprepared, and this makes it all the more difficult to come up with precise middle- and long-term forecasts. In my speech during the debate held last year, I pointed out the main role of the government: "What I am asking for is a government capable of identifying a principal course of development and making use of a more higher level and clearer world view to boost and enhance both the competitiveness and the momentum of the market." The business sector and the people should be allowed to make preparations beforehand and have their planning in place. This year, the Budget has delivered in terms of its analysis of the circumstances. However, I feel sorry to note that there are many reservations about the uncertainties in the conclusion, just like "an auditor's report with substantial reservations". This may in fact be the case, but the Government must have certain commitment in its analysis of prospects. It cannot simply put the blame on technical inadequacies when estimates turn out to be wrong. LEGISLATIVE COUNCIL ─ 29 March 2001 4363 A more positive approach is: (1) to increase as far as possible the transparency of the whole procedure of forecasting and that of the data used as the basis, so as to make it easier for the public to understand; (2) to adopt an appropriate accounting system as the medium, and conduct sustained comparisons of actual results and past forecasts; and (3) to attach full explanations to the forecasts and assumptions made, so that anyone will be able to perceive the criteria for the assumptions and make his own judgement. Even if discrepancies arise in the forecasts, the Government will be able to analyse precisely the causes and quantify the effects brought about by the changes in different factors. It can then explain to the public, learn the lesson, and keep on improving. It is only with this approach that the public, who are the users, will find it more useful, and this is also the administrative approach that can most effectively build up their confidence in the Budget. Let us simply take the tax review as an example. All along, the Government has stayed away from stating its position as to whether a structural deficit exists. It only expresses that more data will be needed before a conclusion can be drawn.
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