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The SAR government should cut profits tax and salaries tax to enhance Hong Kong's competitiveness, the Liberal Party suggested yesterday.

The party also asked the government to introduce a group relief tax, and take steps to improve the air quality and the standard of English in Hong Kong.

The Liberal Party made the suggestions to Chief Executive Donald Tsang, who has begun the consultation exercise for the coming policy address in October.

After an hour-long meeting with Tsang, Liberal Party chairman James Tien said they had a number of suggestions to enhance Hong Kong's competitiveness.

To attract professionals and graduates to Hong Kong, the procedures of reciprocal recognition of qualifications should be simplified.

At the same time, the government should take steps to improve the air quality and build more international schools to lure expatriates working in Hong Kong, Tien said.

"Mr Tsang had pledged during his election campaign to reduce profits tax from 17.5 percent to 15 percent, if the government's fiscal position permits.

"We also hope that the government should bring back the salaries tax rate to the 2002-03 level as soon as possible," he told the media.

The party also hoped the government would introduce a group relief tax, an initiative that the Hong Kong General Chamber of Commerce has proposed for some years.

At the meeting, the party also stressed the need to strike a balance between development and conservation, and urged the government to help settle the metal workers' wage dispute.

If a project is deferred for several years after it is first proposed, the government should consult the public again in the light of changing public opinions.

"As to the metal workers, the government should actively mediate with the business associations (employers) and the workers.

"If the strike continues, it will implicate other job natures of the construction industry and jeopardize social harmony," he pointed out.

(HK Edition 08/21/2007 page6)