Offer mainlanders incentive to buy property, Leung told
hongkong.scmp.com
Saturday, November 2, 2002
NG KANG-CHUNG
Mainlanders should be granted residency in Hong Kong if they agree to buy flats, the financial secretary was told yesterday.
Antony Leung Kam-chung was also asked to scrap the 70 per cent mortgage ceiling, allowing banks a free hand to liaise with clients on mortgage terms.
The proposals were part of a package put forward to ease the budget deficit by the Breakfast Group of independent legislators as the first round of consultation on next year's Budget kicked off.
Abraham Razack, who represents the construction industry in the legislature, said he told Mr Leung it was important to have a stable property market.
"We should encourage the government to discuss with the mainland authorities to give residency for mainland investors who buy flats of say, $3 million or $5 million in Hong Kong," Mr Razack said.
"The mortgage ceiling for second-hand flats should be dropped. With the secondary market becoming lively, it could help revive the entire property market.
"The 1.5 million landlords can also benefit. It is not only in the interest of developers."
The Breakfast Group's convenor, Eric Li Ka-cheung, said the government should make more use of the private sector to reduce the deficit.
Mr Leung forecast in March that the full-year deficit would be $45.2 billion, but the deficit has grown to more than $70 billion for the first half of the financial year.
On the civil service, Mr Li said they agreed it should be reduced in size but warned against "drastic action".
"A voluntary departure scheme may be one way. There should be comprehensive and thorough consultation with staff. Measures should not be pushed through," Mr Li said.
Another independent legislator, Raymond Ho Chun-tai, urged Mr Leung to speed up infrastructure projects in a bid to stimulate the economy.
Mr Leung reportedly did not make any comment during the 90-minute meeting.
Separately, Executive Councillor and the pro-business Liberal Party chairman James Tien Pei-chun said increasing profit taxes would not be very useful because they accounted for only 25 per cent of government revenue.
Mr Tien cited football gambling and land departure taxes as ways to increase revenue. He also supported cutting civil servants' pay.
The cross-party coalition of seven political parties in the legislature also met yesterday to discuss the fiscal deficit. No consensus was reached, however.
Convenor Ip Kwok-him, of Democratic Alliance for Betterment of Hong Kong, said: "As the consultation has just started, it seems too early to talk about a joint stance."
The parties will discuss the issue again later this month. |
