My Constituency welcomes the Administration's pledge to form a "co-operative partnership" with this Council. We look forward to working with the Administration for the greater good of Hong Kong.
Today, inflation is the most pressing issue demanding Government attention and action. This is not just my view. This is not just the view of my Constituents. This is the view of every person, every business in Hong Kong.
This Adminstration - this Government will be judged, in large measure, on how it confronts inflation. Inflation has been too high for too long. Persistent double-digit inflation is eroding our standard of living and our commercial competitiveness. It threatens to turn Hong Kong from an economic "miracle" into an economic "basket case".
My Constituency welcomes the Administration's proposal to expand the controlled scheme to import overseas workers. But much more must be done if we are to bring inflation down to an acceptable level.
Supply-side, labour-market initiatives must also include measures to ensure that local resources are put to the most productive use. In Hong Kong, we have one of the most dedicated, diligent and skilled work forces in the world. To waste local talent for want of proper training is a social as well as an economic - crime.
Hong Kong's labour shortage comprises both quantitative and qualitative components. Importing more "warm bodies" will not be enough. Means must be found to solve the Territory's skills shortages, preferably from within.
Expanding local tertiary education is a good start. But enhancing local professional, managerial and technical training as well as worker re-training would have a more immediate - and significant impact.
If the Administration is serious about fighting inflation, it must also keep indirect taxes in check. While the rest of Hong Kong continues to suffer, the Administration cannot again justify "taking more rice from the beggar's bowl" to fill its own "iron rice bowl".
As a first step, freezing indirect taxes at current levels would have a substantial effect on inflation. Failing that, the Administration must be ready to
be ready to accept only negative "real" increases in indirect taxes.
—
Policy Debate 1991