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WEDNESDAY, NOVEMBER 6, 1991
DESCRIBING THE RESULTS AS ENCOURAGING, MR NENDICK SAID THE MEASURES TAKEN VARIED FROM BANK TO BANK BUT INCLUDED REDUCING THE LOAN-TO-VALUATION AND THE LOAN-TO-INCOME RATIOS, MORE CONSERVATIVE PROPERTY VALUATIONS AND A REDUCTION IN THE MAXIMUM TERM FOR WHICH LOANS WOULD BE GRANTED.
WHILST THESE MEASURES MIGHT ALREADY BE HAVING A POSITIVE EFFECT IN RESTRAINING RISES IN PROPERTY PRICES, HE SAID THE SEPTEMBER MONETARY STATISTICS ON BANK LENDING REVEALED THAT LOANS TO PURCHASE RESIDENTIAL PROPERTY WERE STILL GROWING AT A SIGNIFICANT PACE.
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"IT IS IMPORTANT THEREFORE THAT BANKS REMAIN VIGILANT IN REGARD AND THE COMMISSIONER WILL BE WRITING TO AUTHORISED INSTITUTIONS SHORTLY ASKING FOR A CRITICAL REVIEW OF LENDING CRITERIA, HE SAID.
ON LABOUR SUPPLY, THE FINANCIAL SECRETARY POINTED OUT THAT ECONOMISTS HAD GENERALLY ARGUED THAT THE SEVERE SHORTAGE OF LABOUR AT A TIME OF HIGH DEMAND HAD BEEN A MAJOR CAUSE OF INFLATION, THOUGH BY NO MEANS THE ONLY CAUSE.
IN VIEW OF THIS, AND OF THE NEED TO REMOVE A REAL CONSTRAINT ON ECONOMIC GROWTH, IT WAS IMPORTANT THAT HONG KONG FURTHER AUGMENTED MANPOWER SUPPLY FROM OUTSIDE SOURCES, ON A SELECTIVE BASIS.
THESE INITIATIVES TO IMPORT MANPOWER WERE AIMED LARGELY AT PEOPLE AT MANAGERIAL AND PROFESSIONAL LEVEL.
HOWEVER,
HE SAID HONG KONG ALSO HAD SEVERE MANPOWER SHORTAGES AT OTHER LEVELS WHICH, IF NOT ALLEVIATED, WOULD HINDER THE TERRITORY'S ECONOMIC GROWTH.
ON THE SEVERE SHORTAGE OF LABOUR WHICH MIGHT BE A MAJOR CAUSE OF INFLATION, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN + SAID THESE MANPOWER SHORTAGES AT CERTAIN LEVELS WHICH IF ALLEVIATED WOULD HINDER HONG KONG'S ECONOMIC GROWTH.
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THE GOVERNMENT HAD DECIDED AN INCREASE IN MANPOWER SUPPLY OUTSIDE WAS REQUIRED, BUT WOULD CONSULT CAREFULLY BEFORE DECIDING ON A FINAL FIGURE.
"OUR APPROACH WILL REMAIN HIGHLY SELECTIVE AND WILL BE TARGETTED AT AREAS WHERE SHORTAGES ARE PARTICULARLY SEVERE, AS REFLECTED BY, FOR EXAMPLE, HIGH VACANCY RATES, MR CHAN SAID.
"
IN ORDER TO FORM A PERMANENT FORUM IN WHICH HONG KONG'S BEST ECONOMIC MINDS WERE POOLED TOGETHER TO DISCUSS KEY ECONOMIC ISSUES INCLUDING INFLATION AND THE IMPLICATIONS OF STRUCTURAL CHANGE, MR MACLEOD SAID A NEW ECONOMIC ADVISORY COMMITTEE WOULD BE ESTABLISHED, WITH HIM AS THE CHAIRMAN.
ITS MEMBERSHIP WOULD INCLUDE PROMINENT HONG KONG ECONOMISTS AND ITS TERMS OF REFERENCE WOULD BE BROAD ENOUGH ΤΟ ENABLE STRATEGIC ISSUES CONFRONTING THE ECONOMY TO BE DISCUSSED.
/TO PLAN