THURSDAY, APRIL 13, 1978
19
REPLYING TO POINTS RAISED BY THE UNOFFICIALS ON THE GOVERNMENT'S POLICY TOWARDS INDUSTRY, MR. HADDON-CAVE SAID THE GOVERNMENT IS ALREADY INVOLVED, DIRECTLY AND INDIRECTLY, IN ACTIVITIES WHICH FACILITATE INDUSTRIAL DEVELOPMENT.
HE ALSO POINTED OUT THAT THE VARIOUS PROPOSALS PUT FORWARD BY THE UNOFFICIALS FOR THE GOVERNMENT'S FURTHER INVOLVEMENT WILL BE CONSIDERED BY THE ADVISORY COMMITTEE ON DIVERSIFICATION UNDER ITS TERMS OF REFERENCE.
REPLYING TO REMARKS BY THE HON. JAMES WU THAT SPECULATION IN PROPERTY, +FUELLED BY IDLE CASH+, IS PREVENTING THE UNDERLYING MARKET FORCES FROM OPERATING CORRECTLY, MR. HADDCH-CAVE SAID:
+ IT IS TRUE THAT SUCH SPECULATION, IF IT EXISTS, COULD TEMPORARILY AND, EMPHASISE, TEMPORARILY PUSH UP LAND PRICES.+
I
+ IF IT CAN BE PROVED THAT THIS IS HAVING DAMAGING EFFECT ON THE ECONOMY AND IS LIKELY TO CONTINUE, THE GOVERNMENT WOULD CERTAINLY INTERVENE,+ HE ADDED.
REFERRING TO THE HON. S.L. CHEN'S SUGGESTION THAT THE GOVERNMENT SHOULD, IN THE INTERESTS OF INDUSTRIAL DEVELOPMENT, MAKE LAND AVAILABLE AT BELOW CURRENT MARKET PRICES TO CERTAIN LAND-INTENSIVE, HIGH TECHNOLOGY INDUSTRIES, HE SAID THE GOVERNMENT ALREADY PROVIDES LAND ON THIS BASIS TO A LIMITED EXTENT, BUT. GREATER THE PROPORTION OF LAND FOR SUCH USE, THE HIGHER WILL BE THE OPEN MARKET PRICE OF THE REMAINING INDUSTRIAL LAND.
IN REPLY TO UNOFFICIALS' REMARKS ON ECONCHIC IMPLICATIONS OF LABOUR SUPPLY, MR. HADDON-CAVE SAID HE EXPECTED THE GROWTH RATE OF EMPLOYMENT IN THE BUILDING AND CONSTRUCTION INDUSTRY TO SLOW DOWN SUBSTANTIALLY THIS YEAR COMPARED WITH LAST YEAR SO THAT THE PRESSURE EXERTED BY THIS INDUSTRY ON THE MANUFACTURING SECTOR SHOULD ALREADY BE MODERATING.
HE POINTED OUT THAT ALTHOUGH 15,000 WORKERS JOINED THE BUILDING AND CONSTRUCTION INDUSTRY BETWEEN SEPTEMBER 1976 AND SEPTEMBER 1977, AND 20,000 WORKERS LEFT MANUFACTURING SECTOR, THE TOTAL NUMBER OF WORKERS EMPLOYED IN THE ECONOMY GREW BY 41,000 IN THE SAME PERIOD.
MR. HADDON-CAVE ALSO NOTED THAT IN THE CONTEXT CF AN OVERALL GROWTH IN OUTPUT OF THE ECONOMY IN REAL TERMS EQUIVALENT TO ABOUT NINE PER CENT PER WORKER LAST YEAR, IT DOES NOT SEEM EXCESSIVE FOR REAL WAGES RATES IN MANUFACTURING TO HAVE GROWN AT JUST OVER SIX PER CENT.
BEFORE CONCLUDING HIS SPEECH, MR. HADDON-CAVE THANKED MEMBERS OF THE COUNCIL FOR THE +OBVIOUS CARE WITH WHICH THEY HAVE STUDIED THE VARIOUS BUDGET DOCUMENTS LAID DEFORE THEM+ AND THE UNOFFICIALS FOR THE IR KIND REM 13 C. THE BUDGET SPEECH.
THE APPROPRIATION BILL 1978 WAS PASSED 1:7C LAW TODAY.
/20
Page 20Page 21