***********************************************************
Following is the transcript of remarks (English portion) by the Chief Executive, Mr Donald Tsang, at a media session after the fourth meeting of the Task Force on Economic Challenges at Conference Hall, Central Government Offices New Annexe, Central, today (April 3):
Chief Executive: The Task Force on Economic Challenges (TFEC) has just held its fourth meeting. Apart from reviewing the latest international and local economic situation, members had an in-depth discussion on the medium and long-term opportunities for Hong Kong's economic growth.
Members identified six economic areas where Hong Kong enjoys clear advantages and we agreed to explore how they can be further developed. They are:
(1) Testing and certification;
(2) Medical services;
(3) Innovation and technology;
(4) Cultural and creative industries;
(5) Environmental industry; and
(6) Educational services.
I hasten to say that these are not "new" economic areas. We have practitioners working in these sectors for quite some time. But what we should think hard, as we ponder the economic future of Hong Kong, is whether the potential of these economic areas has been fully realised, and if not, what we should do to make it happen. We also need to ascertain if the increased integration with the Mainland would give new opportunities for these sectors to develop. We will study what the best role of the Government should be in helping these sectors take off. We should identify what the possible improvements should be in terms of policy, legislation, resources, land, etc.
To take the matter forward, the Central Policy Unit will arrange a series of focus group discussions with the participation of relevant stakeholders, and report the outcome to TFEC at its next meeting.
Reporter: Another theme that emerged at the G20 overnight was tax havens. Is Hong Kong a tax haven as the President of France seems to believe it? If not, why not?
Chief Executive: We have a very simple tax system. We have a low tax rate. We have a very transparent and very competent and well-respected banking and financial services. Indeed, our tax rate is low, but that does not mean that we harbour irregularities in our system. There has been some concern about disclosure of personal information for tax purposes by other authorities. But this is a matter we have already agreed to ensure that our policy will become compatible with international practices. In fact, our Financial Secretary, in his Budget speech, already explained the policy is being changed and we are going to put the appropriate legislation, appropriate bill to the legislature in the current session. So, I have to say with all honesty, I can say with great confidence that Hong Kong is a low tax rate - something we are very proud of; a very simple tax system of which I am equally proud - but if there are any worries in people's minds about the transparency of our system we will certainly dispel those misconceptions, dispel those suspicions by further elaboration of our legislative system.
(Please also refer to the Chinese portion of the transcript.)
Ends/Friday, April 3, 2009
Issued at HKT 18:01
NNNN
