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WEDNESDAY, MARCH 6, 1991 ·
WHILE CONCEDING THAT THE RECENT WEAKNESS OF THE
U.S. DOLLAR CARRIED WITH IT, UNDER THE LINKED EXCHANGE RATE SYSTEM, THE LIKELIHOOD OF AN INCREASE IN IMPORTED INFLATION, SIR PIERS MAINTAINED THAT THE BENEFITS DERIVED FROM THE SYSTEM FAR OUTWEIGHED ANY DISBENEFITS.
"THE LINKED EXCHANGE RATE SYSTEM CONTINUES TO PROVIDE US WITH A HIGH DEGREE OF MONETARY STABILITY AGAINST THE UNCERTAINTIES AND EXTERNAL SHOCKS WHICH HONG KONG HAS SO OFTEN HAD TO FACE.
"I DO NOT INTEND TO TAMPER WITH IT," HE SAID.
IN IDENTIFYING THE LABOUR SHORTAGE AS A FACTOR CONTRIBUTING INFLATIONARY PRESSURES, SIR PIERS SAID HE ACCEPTED THE VALIDITY OF THE ARGUMENT BY THOSE WHO HAD SUGGESTED THAT BRINGING IN MORE FOREIGN WORKERS COULD PROVIDE RELIEF.
HOWEVER, SIR PIERS SAID IT WAS IMPORTANT THAT WE ALSO LOOKED AFTER THE INTERESTS OF THE LOCAL LABOUR FORCE.
"LET ME 'SAY THEREFORE THAT WE ARE NOT SEEKING A MASSIVE, INDISCRIMINATE IMPORTATION OF LABOUR.
**WE DO WISH, HOWEVER, TO REMOVE THE CONSTRAINTS THAT A SEVERE SHORTAGE OF LABOUR IN CRUCIAL AREAS IS IMPOSING ON THE PRODUCTIVE CAPACITY OF THE ECONOMY. THUS OUR SCHEMES CONCENTRATE ON IMPORTING LABOUR IN THOSE JOB CATEGORIES WHERE LABOUR SHORTAGES ARE CAUSING BOTTLENECKS TO GROWTH.
"THE HIGHER ECONOMIC GROWTH THEREBY OBTAINED WILL BE OF BENEFIT TO ALL, HE SAID.
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OVER THE LONGER TERM, THE KEY DETERMINANT OF OUR GROWTH POTENTIAL WOULD STILL BE HIGHER LABOUR PRODUCTIVITY, FOR WHICH IMPORTATION OF LABOUR WAS NOT AN ADEQUATE SUBSTITUTE.
"OUR EFFORTS TO IMPROVE THE QUALITY OF THE LOCAL WORKFORCE THROUGH EDUCATION AND TRAINING ARE VERY MUCH DIRECTED TOWARDS THAT OBJECTIVE, HE SAID.
++
FASTER ECONOMIC GROWTH RATE ENVISAGED
THE HONG KONG ECONOMY THIS YEAR WILL GROW AT A FASTER RATE THAN IN 1990 FOLLOWING THE PICK-UP IN ECONOMIC ACTIVITY IN THE LATTER PART OF LAST YEAR, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID TODAY (WEDNESDAY).
PRESENTING HIS BUDGET FOR 1991-92, SIR PIERS SAID THE FORECAST OF THE GDP GROWTH RATE FOR THIS YEAR WAS 3.5 PER CENT.
/WITH SUCH