productivity in various industries with particular reference to the Textile and Clothing industries. It was the impression of the delegation that Mr. Newton was endeavouring to implement some sound, reasonable and fair systems in the industrial life of the colony but he was working at a great disadvantage in that the manufacturers as a whole were very poorly organised and they started a factory or product on the single assumption of the profitability of that product. Since all manufacturers in the colony expect a rapid return on the capital invested, in some cases as quick as 24 years, the maximum they are willing to wait for a return on their invested capital is a period of five years. Again, during our discussion at the Productivity Centre we felt, particularly from the Chinese personnel, a certain reluctance to accept the Trade Union movement as being of help and assistance in formulating plans to increase productivity and at the same time, improve the working conditions in the factories.
We raised with Mr. Newton and his colleagues the question of the dichotomy of the Trade Union movement whereby giving no assistance to the "free" Trade Union and allowing an infiltration by those unions governed and controlled from Red China. We could appreciate the view taken by the Pro- ductivity people in that they emphasised they must be and seemed to be impartial to the onlooker but we thought they were in a unique position to assist the growth of the "free" Trade Union movement in the colony. The delegation said they considered the Productivity Committee could be in a very strong position to assist the Trade Union movement since they were entering industry in an advisory capacity and surely encouragement to an employer to help to organise his workpeople may very well be a facet of improving pro- ductivity in the factory.
Hong Kong Statistics
Hong Kong, a Crown colony, has a population of approximately 4 millions, of which according to the last census which was conducted in 1966, showed that 1,454,730 persons were economically active. From statistics which are collected quarterly on a voluntary basis by the Labour Department in the colony, it appears that in March 1969 there were 493,624 persons directly employed in the manufacturing industries. The largest of the major industries are shown in Appendix B. Employment registered in industrial undertakings has grown tenfold, that is a growth from 51,338 to 523,945.
There is no import duty in Hong Kong except on alcohol, tobacco, table waters. All other goods are duty free and there is no purchase tax. This tends to make the price of consumer goods relatively cheaper than in other countries where such duties and tax are levelled. In addition, because salaries and taxes are charged on total income from employment, reduced by allowances over a thousand Hong Kong dollars and a similar allowance for wife and children, a wage earner only pays salaries tax when he earns over 7,000 Hong Kong dollars per year and over 14,000 Hong Kong dollars if he is married with children. From this it will be seen that not many industrial workers will be called upon to pay salaries tax.
A characteristic of the Hong Kong labour force is the marked movement of workers from old established undertakings and industries to new and more modern industries. This movement, of course, is reflected in a very rapid change
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