WEDNESDAY, OCTOBER 1, 1980
SECOND, THOUGH IN THE SHORT-TERM IT MIGHT BE BENEFICIAL TO SOME EMPLOYERS, IT WAS EXTREMELY BAD IN THE LONG TERM BECAUSE IT REMOVED THE INCENTIVE FOR HIGHER PRODUCTIVITY AND MOVEMENT INTO MORE SOPHISTICATED AND CAPITAL INTENSIVE PRODUCTION.
+ IT IS SURELY ON THE LATTER THAT WE HOPE TO BUILD HONG KONG'S FUTURE AND THE STANDARD OF LIVING OF OUR PEOPLE, AND NOT ON A RELAPSE INTO CHEAP-LABOUR ENTERPRISES WHOSE PRODUCTS ARE MORE AND MORE SUBJECT TO RESTRICTION IN OVERSEAS MARKETS,+ SIR MURRAY SAID.
ON HONG KONG'S ECONOMY, SIR MURRAY SAID ITS GROWTH HAD CONTINUED TO BE EXPORT-LED AND IT WAS SATISFACTORY THAT EXPORTS HAD DONE SO WELL DESPITE THE RECESSIONARY STATE OF THE ECONOMIES OF HONG KONG'S MAJOR MARKET. THE INCREASE IN DOMESTIC EXPORTS IN THE FIRST EIGHT MONTHS OF THIS YEAR OVER THE SAME PERIOD OF LAST YEAR OF 28 PER CENT IN MONEY TERMS, WAS REMARKABLE. THE GROWTH RATE OF DOMESTIC DEMAND APPEARED TO BE PICKING UP BUT PROBABLY STILL LAGGED BEHIND THAT OF DOMESTIC EXPORTS.
RE-EXPORTS HAD GROWN RAPIDLY IN 1980 AS HONG KONG'S RE-EMERGENCE AS A MAJOR ENTREPOT PORT CONTINUED, WITH MUCH OF THE GROWTH ATTRIBUTABLE TO CHINA'S TRADE.
THE GROWTH RATE OF THE VALUE OF IMPORTS IN 1980 HAD ALMOST CAUGHT UP WITH THAT OF TOTAL EXPORTS, PRESUMABLY AS A RESULT OF INCREASED DOMESTIC DEMAND. BUT THE VISIBLE TRADE GAP FOR THE FIRST EIGHT MONTHS OF THIS YEAR WAS STILL SLIGHTLY NARROWER THAN FOR THE SAME PERIOD LAST YEAR.
SIR MURRAY ALSO NOTED THAT THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE INCREASED FROM 2.8 PER CENT IN SEPTEMBER 1979 TO 3.2 PER CENT IN MARCH THIS YEAR, AND HE HAD NO DOUBT THE SEPTEMBER FIGURES, WHEN AVAILABLE, WOULD SHOW A CONTINUATION OF THIS TREND.
+THESE PERCENTAGES BY CURRENT WORLD STANDARDS ARE VERY LOW BUT THE TREND REFLECTS AN ASPECT OF ADJUSTMENT THAT PRESSES HARD ON SOME INDIVIDUALS, AND OF COURSE THE IMPACT IS MADE WORSE BY THE EFFECTS OF IMMIGRATION, THE GOVERNOR SAID.
REVIEWING THE PUBLIC FINANCES, SIR MURRAY SAID WHILE IT WAS STILL TOO EARLY TO REACH A CONCLUSION ON THE FINAL OUTTURN, PRESENT INDICATIONS WERE THAT THE BUDGETED SURPLUS WOULD BE EXCEEDED, DUE LARGELY TO THE ESTIMATED INCREASE IN REVENUE FROM LAND SALES.
BUT HE SAID THAT THE EXCESS THAT MIGHT RESULT WOULD BE MORE THAN OFFSET BY THE ESTIMATED INCREASE IN RECURRENT EXPENDITURE, DUE LARGELY TO THE SUBSTANTIAL INCREASES IN SALARIES OF THE CIVIL SERVICE.
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