FRIDAY, OCTOBER 26, 1984

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IDB'S DECISIONS ON ELECTRONICS REPORT

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ON THE ADVICE OF THE INDUSTRY DEVELOPMENT BOARD GIVEN AT ITS MEETING TODAY (FRIDAY), IT HAS BEEN DECIDED THAT TWO OF THE SPECIFIC RECOMMENDATIONS CONTAINED IN THE REPORT BY THE HONG KONG PRODUCTIVITY CENTRE ON THE HONG KONG ELECTRONICS INDUSTRY FOR THE ESTABLISHMENT OF AN ELECTRONICS TECHNOLOGY DEVELOPMENT CENTRE AND THE PRECISION METAL-WORKING INSTITUTE SHOULD NOT BE PURSUED, AT LEAST NOT AT THIS TIME.

THE BOARD FELT THAT ALL EXISTING ORGANISATIONS AND INSTITUTIONS, SUCH AS THE HONG KONG PRODUCTIVITY CENTRE AND THE TERTIARY EDUCATION BODIES WHICH CURRENTLY PROVIDE SEPARATE SERVICES IN SUPPORT OF THE ELECTRONICS INDUSTRY INCLUDING RESEARCH AND DEVELOPMENT SHOULD BE STRONGLY ENCOURAGED TO CO-ORDINATE THEIR ACTIVITIES IN FUTURE.

ANNOUNCING THIS, A SPOKESMAN FOR THE INDUSTRY DEPARTMENT SAID THAT THE HONG KONG PRODUCTIVITY CENTRE WILL NOW BE ASKED TO EXAMINE HOW ITS EXISTING SERVICES COULD BE AUGMENTED IN ORDER TO PROVIDE IN WHOLE OR IN PART THE LEVEL OF SUPPORT SERVICE90 WHICH THE CENTRE HAD ENVISAGED WOULD HAVE BEEN PROVIDED BY 0382 THE ELECTRONICS TECHNOLOGY DEVELOPMENT CENTRE AND THE PRECISION

10c METAL-WORKING INSTITUTE.

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+A UNIFIED APPROACH CONCEPT. IN RESPECT OF NOT ONLY THE ELECTRONICS PROPOSALS BUT ALSO IN THE FIELDS OF IMPROVEMENTS TO THE METAL-WORKING INDUSTRY AND TECHNOLOGY TRANSFER ARE CURRENTLY BEING CONSIDERED BY THE HONG KONG PRODUCTIVITY CENTRE,+ HE SAID. IMPLEMENTATION DETAILS WILL TAKE INTO ACCOUNT THE ROLÉ WHICH CAN BE PLAYED BY THE TERTIARY EDUCATION INSTITUTIONS.

AS IT HAS BEEN AGREED THAT THE ESTABLISHMENT OF SEPARATE INSTITUTIONS SHOULD NOT BE PURSUED AT THIS TIME, THE PROPOSAL IN RESPECT OF THE FUNDING OF THESE INSTITUTIONS, I.E. A LEVY ON THE ELECTRONICS INDUSTRY OF 0.03 PER CENT ON EXPORTS, IS NOT BEING CONSIDERED. IT WAS IN ANY CASE QUITE CLEAR THAT THE ELECTRONICS INDUSTRY WAS GENERALLY OPPOSED TO THIS METHOD OF FUNDING WHICH WOULD ONLY HAVE RAISED ABOUT $7 MILLION AGAINST-A REQUIREMENT OF ABOUT $40 MILLION.

THE BOARD'S ADVICE FOLLOWED CONSULTATIONS WITH THE MAJOR TRADE AND INDUSTRY ORGANISATIONS ON THE RECOMMENDATIONS OF THE HONG KONG PRODUCTIVITY CENTRE'S REPORT ON THE HONG KONG ELECTRONICS INDUSTRY AND ON THE REPORT OF THE AD HOC WORKING GROUP WHICH WAS SET UP TO EXAMINE THE CENTRE'S REPORT.

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