THURSDAY, NOVEMBER 6, 1986

17

UNFAIR DEAL FOR LOCAL CONTRACTORS ECHOED

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THE LOCAL CONSTRUCTION INDUSTRY WHICH EXISTS ON ITS FAITH IN HONG KONG IS NOT GETTING A FAIR DEAL IN THE PRIVATE AND PUBLIC DEVELOPMENT OF THE TERRITORY, THE HON CHENG HON-KWAN SAID TODAY (THURSDAY).

SPEAKING DURING THE DEBATE ON THE GOVERNOR'S ADDRESS,

MR CHENG SAID HONG KONG'S CONSTRUCTION INDUSTRY HAD BEEN INVADED AND SWAMPED BY OVERSEAS CONTRACTORS OPERATING WITH SO MANY ADVANTAGES WHICH WAS UNFAIR TO LOCAL CONTRACTORS WHO WERE BEING PUSHED OUT OF BUSINESS.

HE ADDED THAT SOME OF THESE ADVANTAGES WERE OF HONG KONG'S OWN MAKING BECAUSE THE SAME STRINGENT TENDERING CONDITIONS AND RESTRICTIONS IMPOSED ON LOCAL CONTRACTORS WERE NOT APPLIED TO OVERSEAS COMPANIES.

MR CHENG NOTED THAT OVERSEAS CONTRACTORS WERE ORIGINALLY WELCOMED TO HANDLE SPECIFIC PROJECTS WHICH CALLED FOR NEW TECHNOLOGY BUT THINGS HAD SINCE GONE OUT OF HAND.

QUOTING AS EXAMPLE. HE POINTED OUT THAT MORE THAN 50 PER CENT OF HOUSING AUTHORITY CONTRACTS HAD GONE TO OVERSEAS FIRMS IN THE FIRST QUARTER OF THIS YEAR.

+WHILE APPRECIATING THE NECESSITY TO ACCEPT THE LOWEST SUITABLE TENDER, I FEEL WE CANNOT AFFORD TO LET OUR LOCAL CONSTRUCTION INDUSTRY RUN DOWN IN THIS WAY, HE SAID.

MR CHENG SAID HE AGREED IT MIGHT NOT BE POSSIBLE TO DO ANYTHING ABOUT THE OVERSEAS FACTORS CONTRIBUTING TO THE SITUATION, BUT FELT THAT SOMETHING SHOULD BE DONE ABOUT THE INEQUALITIES IN REGISTRATION AND CONTRACTING.

+ALL THAT THE LOCAL CONTRACTORS ARE ASKING FOR IS THAT THEY SHALL BE TREATED FAIRLY AND ON EQUAL TERMS WITH THE OVERSEAS CONTRACTORS AND THAT THE SAME CONDITIONS AND RESTRICTIONS SHALL APPLY TO ALL,+ HE SAID.

MR CHENG ALSO SUGGESTED THAT JOINT VENTURES SHOULD BE ENCOURAGED SO THAT NEW TECHNOLOGY WAS SHARED AND PASSED ON AS WAS INTENDED WHEN FOREIGN CONTRACTORS WERE FIRST BROUGHT IN.

+UNLESS ACTION IS TAKEN, I FEAR THAT WE MAY FIND OURSELVES WITH LITTLE OR NO CONSTRUCTION INDUSTRY LEFT IF AND WHEN THE OVERSEAS CONTRACTORS FIND IT MORE PROFITABLE TO RETURN HOME OR TO WORK ELSEWHERE,+ HE SAID.

ON THE PROVISION OF PUBLIC HOUSING, MR CHENG CONGRATULATED THE HOUSING AUTHORITY ON ITS IMPRESSIVE ACHIEVEMENT THIS YEAR.

/HE ALSO

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