In the light of the competition from imported local workers from other sectors would be less to join to join the construction trades. Further, unless the condition regarding lay-off of imported workers is vigorously enforced, threats on the job security of workers could arise under adverse circumstances.

Financial and Staffing Implications

increase

would lead

The first alternative would

Hong Kong's population.

permanent

While this would insofar

DK2214

obviously have financial implications,

it would result in an increase in the demand for government services, it is not possible to estimate the order of costs involved.

30

The second alternative would give rise to a requirement for additional resources to meet the increased workload envisaged for the Police, Immigration and Labour Departments. However, until such time as detailed procedures for the operation of the scheme are determined, it is not possible to quantify what the requirement is likely to be. The costs involved could be off-set by any levy imposed on contractors participating in the scheme.

Public Reaction

31

The firm stand of the Government in disallowing importation of foreign workers has been widely reported. However, there has been speculation recently in the

press that the Government is preparing to make an about-turn.

32

Sectors that are suffering from labour shortage, the construction industry in particular, and

and those affected by the current delays in the completion of public housing projects are likely to welcome the move by Government to actively consider ways. to alleviate the problems. However, there may be renewed

pressure from sectors other than the construction industry to be accorded similar treatment. Public discussion over the issue of importation of Chinese domestic helpers may also be revived.

33

The objections to a changed policy as noted in paragraphs 17 - 19 above are likely to be voiced strongly in the media.

Publicity

no

34

As further work will still have to be done to devise a scheme (if it is approved in principle by Members), publicity will be given at this stage and no Legislative Council brief will be prepared. If asked what the Government

CONFIDENTIAL

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