3
WEDNESDAY, OCTOBER 10, 1990
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"NOR CAN WE EXPECT AN EASY CURE FOR INFLATION, HE ADDED.
SIR DAVID SAID DRASTIC MEASURES AIMED AT SUPPRESSING PRICE INCREASES WOULD BE COUNTER-PRODUCTIVE AND THEY WOULD FRUSTRATE THE FREE PLAY OF MARKET FORCES AND DO LASTING DAMAGE TO THE ECONOMY.
"THIS SORT OF INTERFERENCE WITH THE MARKET WOULD NOT CHARACTER FOR HONG KONG. BUT WE CAN, AS WELL AS BEING SENSIBLE WAGES, TRY ΤΟ LIMIT THE DAMAGING EFFECTS OF RISING PRICES, GOVERNOR SAID.
BB IN ABOUT THE
HE SAID THAT OUR FIRST PRIORITY MUST BE TO ENSURE THAT WE DID NOT CREATE UNDUE PRESSURE ON SCARCE RESOURCES AND, IN THIS WAY, FUEL INFLATION.
"WE RATE,
-
AT
WILL ALL HAVE TO ACCEPT THAT, FOR THE IMMEDIATE FUTURE WE WILL NOT HAVE THE SURPLUS REVENUE TO MEET ALL THE COMPETING CLAIMS FOR ADDITIONAL PUBLIC SPENDING.
ANY
"THERE
DEMANDS FOR
CURRENT
CHOICES.
WILL BE DIFFICULT CHOICES TO MAKE BETWEEN NEW SERVICES. THERE CAN BE NO DUCKING THESE HARD ECONOMIC CONDITIONS DICTATE THAT PUBLIC EXPENDITURE MUST BE KEPT UNDER TIGHT CONTROL, HE SAID.
**
то
SIR DAVID SAID THE GOVERNMENT, AS THE TERRITORY'S BIGGEST EMPLOYER, WAS DETERMINED TO MAKE SURE THAT IT DID NOT ADD THE PRESSURES ON AN ALREADY STRAINED LABOUR MARKET.
GROWTH.
"ACCORDINGLY, NEXT YEAR, MANY DEPARTMENTS WILL FACE ZERO
11
AND
"IF STANDARDS ARE TO BE MAINTAINED, INDIVIDUAL BRANCHES
WILL DEPARTMENTS
HAVE TO STRIVE FOR PRODUCTIVITY GAINS THROUGH THE BETTER USE OF THE STAFF AND OTHER RESOURCES UNDER THEIR CONTROL. WILL BE A REAL CHALLENGE. IT WILL BE A TEST OF MANAGEMENT LEADERSHIP, THE GOVERNOR SAID.
11
THIS AND
NOTING THAT THE BULK OF THE LABOUR FORCE WORKED IN THE PRIVATE HEAVILY SECTOR, THE GOVERNOR SAID THE SUCCESS OF THE ECONOMY DEPENDED ON THE ABILITY OF PRIVATE EMPLOYERS TO MAXIMISE PRODUCTIVITY.
"IN PRACTICE, THERE ARE LIMITS TO HOW FAR EMPLOYERS CAN REPLACE WORKERS WITH NEW PLANT AND EQUIPMENT.
"THE
GOVERNMENT ACCEPTS THAT MANY FIRMS HAVE THESE LIMITS: IN SOME CASES THEY CANNOT EXPAND THEIR FURTHER BECAUSE THEY CANNOT FIND ENOUGH WORKERS LOCALLY.
ALREADY
BUSINESSES
REACHED ANY
MAY
"THERE IS A GENUINE DANGER THAT THE ACUTE SHORTAGE OF LABOUR
THAT WHEN
HAPPENS, AS A BRAKE ON FUTURE ECONOMIC GROWTH. ACT EVERYBODY SUFFERS. OUR POLICY HAS BEEN, AND WILL REMAIN, TO ENCOURAGE GROWTH.
"THAT IS WHY WE HAVE RELAXED THE CONTROLS ON THE IMPORTATION OF LABOUR IN CERTAIN CRUCIAL AREAS OF THE ECONOMY, SIR DAVID EXPLAINED.
/THE GOVERNOR