WEDNESDAY, NOVEMBER 11, 1981
16
GOVERNMENT'S ROLE IN INDUSTRY
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THE LATEST YEAR ON YEAR TRADE FIGURES SHOWED THAT HONG KONG ENJOYED ACTUAL GROWTH IN ALL MAJOR MARKETS OTHER THAN THE FEDERAL REPUBLIC OF GERMANY, THE HON BILL DORWARD, DIRECTOR OF TRADE INDUSTRY AND CUSTOMS, TOLD THE LEGISLATIVE COUNCIL TODAY.
+ELECTRICITY CONSUMPTION FOR THE YEAR ENDING SEPTEMBER SHOWS INCREASES OVER THE PREVIOUS YEAR IN ALL INDUSTRIAL SECTORS EXCEPT SPINNING AND WEAVING AND THE LATEST 1981 FIGURES FOR IMPORTS OF MACHINERY AND TRANSPORT EQUIPMENT SHOW ROUGHLY A 30 PER CENT INCREASE IN VALUE OVER THE SAME PERIOD IN 1980, + HE SAID.
MR DORWARD SAID HE DID NOT DISCOUNT THE DOMESTIC AND FOREIGN DIFFICULTIES FACING HONG KONG INDUSTRY. THE REAL GROWTH RATE IN EXPORTS DID NOT SHOW THE EXTENT TO WHICH PROFIT MARGINS HAD BEEN SQUEEZED, ALTHOUGH IN SOME MARKETS THIS HAD BEEN PARTLY COMPENSATED BY THE DEVALUATION OF THE HONG KONG DOLLAR.
+CURRENCY FLUCTUATIONS, PERHAPS MORE THAN THE ACTUAL EXTENT OF THE DEPRECIATION OF THE HONG KONG DOLLAR, HAVE MADE TRADING CONDITIONS HAZARDOUS. AND IT WOULD BE UNREALISTIC FOR ANYONE TO EXPECT HONG KONG TO HAVE BEEN IMMUNE TO THE ECONOMIC RECESSION IN OUR MAJOR MARKETS, HE SAID.
ON SUGGESTIONS THAT THERE SHOULD BE A LOCAL BUY HONG KONG+ CAMPAIGN AND THAT GOVERNMENT SHOULD GIVE A FIVE PER CENT MARG IN OF PREFERENCE TO HONG KONG GOODS IN ITS OWN PURCHASING, MR DORWARD SAID: +AS FAR AS THE PUBLIC IS CONCERNED, THE FIRST ESSENTIAL FOR ANY SUCH CAMPAIGN IS THAT MORE LOCAL MANUFACTURERS SHOULD BE PREPARED TO SELL IN HONG KONG. IT IS NO USE EXHORTING CONSUMERS TO BUY PRODUCTS WHICH ARE NOT IN THE MARKET.
MANY SUCH PRODUCTS WERE ALREADY ON SALE HERE AND SEEMED TO BE WELL RECEIVED, BUT ONE INHIBITION ON DEVELOPMENT OF LOCAL SALES WAS THE EXTENT TO WHICH HONG KONG INDUSTRY STILL SOLD PRODUCTIVE CAPACITY RATHER THAN PRODUCTS, HE SAID.
+BEFORE ANY NEW CAMPAIGN COULD BE LAUNCHED, IT WOULD BE NECESSARY IN MY VIEW FOR THE MAJOR TRADE AND INDUSTRIAL ORGANISATIONS TO GET A COMMITMENT FROM THE IR MEMBERS THAT THEY WOULD SUPPORT IT. WITHOUT SUCH AN ASSURANCE, A BUY HONG KONG' CAMPAIGN WOULD, I FEAR, MAKE LITTLE HEADWAY, HE SAID.
AS REGARDS GOVERNMENT PROCUREMENT. MR DORWARD SAID THAT APART FROM THE VERY REAL CONSIDERATIONS OF VALUE FOR THE TAXPAYERS' MONEY AND THE CONFLICT WITH OUR BASIC PHILOSOPHY, THERE WAS A LEGAL OBSTACLE.
+ IN ORDER TO OBTAIN RECIPROCAL ACCESS TO SIMILAR PURCHASING IN A NUMBER OF OTHER COUNTRIES, HONG KONG HAS ACCEDED TO A GATT AGREEMENT ON GOVERNMENT PROCUREMENT WHICH PROHIBITS DISCRIMINATION BETWEEN OVERSEAS AND DOMESTIC SUPPLIERS, HE SAID.
/KOFER-NG TO THE