The decision to scrap duties on wine and beer was not about making them cheaper, but about creating business opportunities, the financial secretary of the Hong Kong Special Administrative Region government said Monday.
Asking the guests to "enjoy a sip of duty-free wine or beer" at a joint luncheon of the business community, John Tsang said he was trying to ensure that the policies and actions support economic growth when drawing up the government budget recently.
"The complicated part of the job (as financial secretary) is trying to carve up the fiscal pie appropriately. But I believe that if we frame our decision making with certain well-defined goals in mind -- in this case supporting economic growth -- then focusing on what needs to be done becomes that much easier," Tsang said.
The budget surplus of Hong Kong was expected to hit a record 115.6 billion HK dollars (14.82 billion U.S. dollars) by the end of the current fiscal year, or March 31, and Tsang had outlined spending plans in a budget speech on Feb. 27.
Tsang said the fiscal policies should demonstrate the Hong Kong Special Administrative Region government's commitment to society, be sustainable and pragmatic, adding that all of the three principles were also about preparing for the future.
There would be uncertainties for a highly economy like Hong Kong's and the HKSAR government was hoping to make the economic ups and downs feel like a gentle see-saw rather than a scary roller coaster ride, Tsang said.
He said the wine and beer duty scrap, as popular a decision as it was, was "not about making it cheaper for you all to enjoy your favorite tipple. It's about creating business opportunities in the storage, transport, selling and marketing of wine."
The volume of wine trading business in Hong Kong could increase by up to 4 billion HK dollars (0.51 billion U.S. dollars) after the duty scrap as "consumers across Asia are enjoying higher living standards, and becoming more discerning too," he said.
Obviously it will help create jobs and attract more wine traders to Hong Kong to do business in the region, adding to the active economy of Hong Kong.
The billions of dollars earmarked respectively for the West Kowloon Cultural District, for funding research and development and for infrastructure development in the next fiscal year will all help spur economic growth in Hong Kong, he said.
(Xinhua News Agency, March 11, 2008)