DSR 11C
prosperous future for Hong Kong. And it gives me a chance
to share with you, the commercial and industrial leaders of
the Territory, some thoughts on the state of British
industry and commerce and their prospects.
Like others', our industry and commerce have had to work
against the background of a recession in our major trading
partners. Even such strong economies as the United States
and the German Federal Republic have suffered.
grapple with
To be frank we also have to do some problems of our Own
creation. No economy exporting almost a third of its
output can afford to neglect competitiveness.
But for too
long that is what we did. Our unit labour costs rose too
high. The reason was the all too familiar one of wage
rises not backed by productivity gains.
Progra
1 bal. Iis mannapasha Lichnology
That poor productivity record has varied roots.
Restrictive labour practices have prevented the efficient
use of investment. Incentives for innovation and
technological change have been inadequate. We have failed
to apply changes in production techniques.
recovery
1.2
All that is changing now. We are firmly on the way to
Productivity and competitiveness are improving.
The annual rate of inflation is now in single figures and
still falling fast. So are interest rates.
1
3