project is expected to be self-financing from the third year of its operations, but would need capital of $4.62 million for the first two years.
Private sector support
20
Private sector support is
support is clearly important for the success of the project. As a result of its investigations, the Institute hopes to obtain about $1 million of funding support in terms of contributions for membership on the Board of Directors or donations.
21
The Institute has set aside $250,000 to cover the first year cost of operations, and if
if required it would
would be prepared to provide a further $500,000 to cover the cost of operations in the second and third years of the project. Together with the $1 million which it hopes to secure from the private sector, a total of about $1.75 million would be available. To meet expected shortfalls during the first two years, IPM has sought a contribution of $3 million from Government.
Establishment of a Joint Venture Company
22
IPM's proposal has been discussed between its senior officers and a Government team made up of representatives of the Chief Secretary's Office, Education and Manpower Branch, Finance Branch, Trade and Industry Branch, Civil Service Branch and Labour Department. The consensus is that it has a good chance of working well and, should this happen, of being extended to Australia, the USA and the UK. Nevertheless, while the overseas operational unit should be good at matching potential job seekers with employers once the database is set up, it would initially need a fair amount of advice and support from our overseas offices, the Hong
the Hong Kong Trade Development Council and Hong Kong Tourist Association, particularly in making contacts with Hong Kong residents and business associations and alumni, in placing advertisements, and in providing general information about Hong Kong. The Institute will also require the support of Labour Department in providing additional information about job vacancies and labour market conditions. This support has been assured.
23
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Instead of making an outright grant to the Institute, we propose to set up a joint venture company with them and with other private sector interests
Hong Kong IPM Manpower International Limited to provide the promotional and job matching services described in paragraph 12. A joint venture company is a means of ensuring that Government and the private sector's participation in the project will be subject to the usual commercial discipline. This model has been used by
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