functions to establish priorities
in development, to provide inducements
for new industries and to discourage
over-expansion of existing ones.
(b) the Government should offer backing to
commercial banks to enable them to
extend long-term, fixed-period and
fixed-interest loans to industry, not
only for the modernisation of plant and
equipment but also for credit facilities
in boosting the export of capital goods.
Such backing is necessary because existing
labour-intensive industries are
standing on a knife-edge due to
competition from lower labour-cost
countries. More technologically
advanced industries requiring greater
capital investment are therefore
needed. Also, because of competition
in consumer goods from nearby countries,
it is necessary to change over to the
production of capital goods for the
purchase of which customers must be
offered long-term credit. (In the
Officials' reply to the Budget Debate
the Director of Commerce and Industry
said that the Government would be
studying the possibility of establishing
a loan institution specialising in
helping small-scale industry with
medium-term finance at fixed rates for
re-equipment).
(c) free primary education should be
in the Colony
introduced over a period of three to
five years.
/(a)
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