Wednesday, May 10, 1972
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"With the slowdown in exports and keen overseas competition,
as a direct result of economic depression in our main markets, it is
unlikely that they will be able to pass on this increased cost to their
customers," he added.
On the other hand, in view of the average small margin of profit
of 4.73 per cent in terms of sales turnover, a figure arrived at for the
year 1969/1970, it was unrealistic to assume that industry could absorb
such an immensely increased burden.
"Chopping 2.4 per cent from 4.73 per cent is in reality amounting
to a cut in the profit to the extent of more than 50 per cent, not to
speak of the effect that continuously rising labour costs will have on
profit margin," Mr. Ann said.
"Appropriate steps should be taken to alleviate the heavy and
sudden burden on those manufacturers who are, unfortunately, caught in this
dilemma, and thus ensure our economic stability, " he suggested.
It had been stated publicly by a government official that the
high cost of land had been deterring many foreign companies from setting
up promising new industries in Hong Kong because they could not bear the
high land costs.
"Now our existing industries are being threatened by the Crown
rents policy.
"Industry must not be allowed to be stifled inadvertently; it
must be allowed to continue its growth so that it will continue to provide
employment, especially for the large numbers of young people emerging
from our schools," Mr. Ann stressed.
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