-
32.
-
67
194.
There is no reason why the works to be; considered should be carried out directly by a government department. It may well be desirable in the public interest for the Government to grant subsidies or loans to bodies or individuals with a view to increasing the volume of work to be made available in times of depression.
195.
There is no doubt that advance planning of works of the kind described can be a useful method of counteracting in some measure, the worst effects of economic fluctuations. An identical scheme was introduced in the Federation of Malaya, at my instigation, in 1948 and this had the full support of the Federal Labour Advisory Board and of the Government.
196.
X
FAIR WAGES CLAUSES IN PUBLIC CONTRACTS
Section 1(2)(a) of the Colonial Development and Wefare Act 1940 reads as follows:-
"Before making any scheme under this section as respects any colony the Secretary of State: -
197.
(a) Shall satisfy himself, in a case where the scheme provides for the payment of the whole or part of the cost of the execution of any works, that the law of the colony provides for the establishment and activities of trade unions, and that fair conditions of labour will be observed in the execution of the work"
These conditions have been met, in part, by the enactment of the Trade Unions and Trade Disputes Ordinance 1946 but no action has yet been taken to ensure "fair conditions of labour" on work financed either wholly or in part from Colonial Development and Welfare funds or in respect cf public contracts generallly.
198.
It is well known that H.M. Government in the United Kingdom has ratified I.L.0. Convention No. 94 concerning Labour Clauses in Public Contracts although this convention is not yet in force.
199.
The Public Works Department, the General Manager of the Railways and the Controller of Stores have all been consulted on the question of "labour clauses in public contracts" and have put forward the usual objections. Not one of the difficulties envisaged is incapable of solution. The criticism that insistence on such a clause may result in some increase in costs may be truc but any slight increase in this respect would be more than outweighed by the added protection afforded to the workers, particularly those least able to help themselves.
200.
The usual way of implementing the policy of "Fair Wages Clauses in Public Contracts" is by way of a suitable resolution of the Legislative Council.
201.
I have not suggested the wording of a suitable resolution as the Government of Hong Kong is already in possession of model rules provided by the Colonial Office,