Soliciting views: Financial Secretary Antony Leung welcomes constructive suggestions from the public.

The Chief Executive will establish a task force to study how the Government can further cut red tape, outsource services and develop public-private sector partnership projects, the Financial Secretary says.

Speaking at the Joint Business Community Luncheon hosted by the Hong Kong General Chamber of Commerce, Antony Leung also appealed for ideas on how the Government can achieve more with less, or better stimulate the economy. 

"We are always open to constructive suggestions," he said.

Mr Leung said he understood that the Budget has precipitated a wide-ranging community debate on the Government's management of public finances.

The changes to the salaries tax rates, allowances and progressive bands have generated a fairly robust reaction from members of the public, he said. Some also criticised the Government for not being aggressive enough with its spending cuts. 

Mr Leung explained that unlike the private sector, the Government does not have as much flexibility to trim costs quickly.

"And if we do have to make cuts we have to ensure they have a minimal impact on the public we serve."

The Government, he added, is trying to maintain service levels while saving costs through reorganisation, reprioritisation and re-engineering of work practices, and by making better use of the market.

Mr Leung stressed that he tried to "strike the right balance" in the Budget. "Whatever we do, some people will feel aggrieved by certain measures, and others may think we have not gone far enough." 

He went on to say that Hong Kong will still have "one of the most liberal and simple tax regimes in the world" even if the legislature approves all his Budget proposals.

He hoped people will accept the proposals as "fair, reasonable and affordable". Everyone who lives and works in Hong Kong, he said, is "sharing the responsibility of balancing the books".

As Financial Secretary, he said, he has a duty to ensure the viability of Hong Kong's fiscal system. 

If Hong Kong continues to run such a huge deficit, its fiscal system will not be viable at all, and the consequences would be far worse than the tax proposals put forward, he said. 

As the International Monetary Fund and Moody's recently noted, the currency could come under pressure, pushing up interest rates and affecting "any nascent recovery" Hong Kong may be experiencing, Mr Leung said. 

It is necessary to "act decisively now" to tackle the problem. "Status quo is not an option," he said.

Mr Leung pointed out that the Government's number one priority is to revive the economy and to achieve that through close partnership with the private sector.

He said all the Budget proposals for reviving the economy will show how the partnership can bring imaginative and beneficial ideas to life.