THURSDAY, NOVEMBER 10, 1988

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HONG KONG FACING 'LABOUR FAMINE'

HONG KONG IS FACING NOT A LABOUR SHORTAGE BUT RATHER A LABOUR FAMINE, THE HON JAMES TIEN SAID IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY).

SPEAKING IN THE POLICY DEBATE, MR TIEN STRONGLY URGED THE GOVERNMENT TO CHANGE ITS POLICY OF NOT ALLOWING LABOUR TO BE IMPORTED.

IN THE CASE OF THE GARMENT INDUSTRY, LABOUR PUSHED WAGE LEVELS UP TO SUCH AN EXTENT THAT HONG MANUFACTURERS WERE NO LONGER COMPETITIVE, HE SAID.

SHORTAGE HAD RONG GARMENT

AUTOMATION WAS NO SOLUTION TO EASING THE TIGHT LABOUR SUPPLY SITUATION BECAUSE THE GARMENT TRADE WAS ALREADY BIGHLY AUTOMATED. MOREOVER, THERE WERE LIMITS TO AUTOMATION.

"THERE ARE CHANGES IN FASHION AND DESIGN WHICH VARY ALMOST ON A WEEKLY BASIS. AUTOMATION IS JUST NOT FLEXIBLE ENOUGH FOR OUR NEEDS, HE ARGUED.

RULES UNDER

THE

MULTI-FIBRE

THE "COUNTRY-OF-ORIGIN" ARRANGEMENT (MFA) POSED ANOTHER DILEMMA FOR THE LOCAL GARMENT INDUSTRY, ACCORDING TO MR TIEN.

"THE MFA RECOGNISES A TERRITORY FOR THE PURPOSES OF DEFINING THE COUNTRY-OF-ORIGIN RULE. THE MFA IS ABOUT GEOGRAPHY, NOT ABOUT CITIZENSHIP. IT DOES NOT TAKE INTO ACCOUNT THE NATIONALITY OF THE WORKERS, HE SAID.

H

"HENCE, GARMENT MANUFACTURERS CANNOT SIMPLY MOVE INTO SHENZHEN, AS PERHAPS THE MANUFACTURERS OF, SAY, PLASTICS OR ELECTRICAL GOODS, CAN.

"HOWEVER, IF FOREIGN LABOUR WERE TO COME TO HONG KONG IT WOULD NOT CONTRAVENE THE RULES OF THE MFA.'

RAPIDLY DECLINING INTO A SHORTAGE, НЕ WARNED THAT

STATING THAT THE GARMENT TRADE WAS SUNSET INDUSTRY AS A RESULT OF THE LABOUR THE TRADE WOULD BE UNABLE TO HELP RE-ABSORB LABOUR FROM THE SERVICE INDUSTRIES IN THE EVENT OF A RECESSION BECAUSE BY THEN THE MANUFACTURING WOULD HAVE CEASED TO EXIST.

GARMENT

WHILE EXPRESSING SUPPORT FOR THE INTRODUCTION OF A CENTRAL POLICY UNIT, MR TIEN STRESSED THAT THE PROPOSED "THINK-TANK" SHOULD BE SEEN AS HAVING A STRONG RESEARCH ELEMENT, FREE OF EXTERNAL PRESSURES.

HE HOPED THE CENTRAL PARTICULAR PRESSURE GROUPS NEUTRALITY AND CREDIBILITY.

POLICY UNIT WOULD STEER CLEAR OF OR SOCIAL CAUSES LEST IT LOSE

ITS

UNHAPPY THAT

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