WEDNESDAY, JUNE 9, 1993
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I SAID THAT I WOULD FIRST EXPLAIN WHY MR TANG'S MOTION PRESENTS DIFFICULTIES. I HAVE THREE POINTS TO MAKE. FIRST, THE SUGGESTION THAT THE ITDC SHOULD BE AN EXECUTIVE BODY LIKE THE HONG KONG TRADE DEVELOPMENT COUNCIL, OR EVEN AS SOME, BOTH WITHIN AND OUTSIDE THIS COUNCIL, HAVE SUGGESTED, LIKE SINGAPORE'S ECONOMIC DEVELOPMENT
BOARD, IS NOT A NEW IDEA. IT WAS AN IDEA WHICH WAS DEBATED IN THE OLD INDUSTRY DEVELOPMENT BOARD AND THE FORMER COMMITTEE ON SCIENCE AND TECHNOLOGY BEFORE THEY WERE MERGED IN 1991 TO FORM THE ITDC. IT WAS AN IDEA REJECTED THEN WITH GOOD REASON. INDUSTRY IS NOT A DISCRETE ECONOMIC ACTIVITY. IT AFFECTS, AND IS AFFECTED, BY A VAST RANGE OF ECONOMIC AND POLICY FACTORS: EDUCATION, TRAINING, TOWN PLANNING AND LAND USE, ENVIRONMENTAL STANDARDS, MANPOWER SUPPLY. TRADE PROMOTION, BY ITS NATURE, IS A MUCH SIMPLER, MORE EASILY FOCUSED ACTIVITY. EXECUTIVE BODY PROMOTING TRADE CAN TAKE DECISIONS QUICKLY AND EASILY BECAUSE THERE IS LITTLE RISK OF DISTORTION OR DISRUPTION то OTHER ECONOMIC ACTIVITIES OR COMMUNAL PROGRAMMES. INDUSTRY DOES NOT ENJOY THAT SIMPLICITY. AN EXECUTIVE BODY TASKED то PROMOTE INDUSTRIAL DEVELOPMENT WOULD AFFECT MANY POLICY AND PROGRAMME AREAS. WHATEVER THE IMPACT SUCH A BODY MAY HAVE ON INDUSTRY, IT WOULD INEVITABLY TEND ΤΟ ADD A LAYER OF BUREAUCRACY TO THE ASSESSMENT AND DECISION MAKING PROCESS. AN ADVISORY COMMITTEE, WHERE INDUSTRIALISTS CAN BRING THEIR NEEDS AND CONCERNS DIRECTLY TO POLICY MAKERS, AND WHERE ACADEMIC RESEARCH HEADS AND TECHNOLOGY DEVELOPMENT LEADERS ARE ABLE TO POINT OUT NEW OPPORTUNITIES, BACKED UP BY DEBATE IN THIS COUNCIL, SEEMS то ME TO BE AN INHERENTLY MORE EFFICIENT AND ADAPTABLE MECHANISM FOR THE REVIEW AND DEVELOPMENT OF OUR INDUSTRIAL PROGRAMMES.
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SECOND IS A POINT OF PRINCIPLE. THIS GOVERNMENT BELIEVES CONSULTING AND CONSIDERING THE VIEWS OF THE BODIES THAT HAVE BEEN SET UP TO ASSIST IN POLICY MAKING. THE ITDC ITSELF IS THE PRODUCT OF CONSULTATION WITH THE FORMER INDUSTRY DEVELOPMENT BOARD AND COMMITTEE ON SCIENCE AND TECHNOLOGY. IT WOULD NOT BE APPROPRIATE FOR GOVERNMENT ΤΟ ACCEPT A CHANGE IN THE ITDC'S ROLE WITHOUT SEEKING THE ITDC'S ADVICE ON THE MATTER. INDEED, THE ROLE OF THE ITDC IS A MATTER THAT THAT COUNCIL HAS ALREADY BEGUN TO ADDRESS. THIS YEAR HAS SEEN THE ITDC CHAIRMANSHIP BEING HANDED OVER BY THE FINANCIAL SECRETARY то A NON-OFFICIAL MEMBER. FURTHER DEVELOPMENT OF THE ITDC'S ROLE WILL BE NEEDED IN RELATION TO THE FUNDING OF INDUSTRY SUPPORT PROGRAMMES. REGULAR REVIEW OF THE ITDC'S FUNCTIONS AND OF INDUSTRIAL POLICIES IS A NECESSARY AND IMPORTANT PART OF ITS ROLE.
THIRD IS A QUESTION. HAS HONG KONG'S INDUSTRIAL DEVELOPMENT REALLY BEEN SO BAD THAT WE NEED TO HAND OVER RESPONSIBLILITY то AN EXECUTIVE BODY IN ORDER TO BREATHE NEW LIFE INTO IT? I SUGGEST NOT. OUR INDUSTRY HAS BEEN CHANGING AND CHANGING TO OUR ADVANTAGE. WE HAVE LOST LABOUR INTENSIVE, LOW VALUE ADDED PRODUCTION PROCESSES, BUT HAVE GAINED SOPHISTICATED BUSINESSES THAT CAN COMPETE WITH THE WORLD ON THE BASIS OF QUALITY AND PRODUCTIVITY. LABOUR PRODUCTIVITY INCREASED IN HONG KONG BY AN AVERAGE OF 9.6% PER ANNUM BETWEEN 1986 AND 1990. THIS WAS SECOND ONLY TO SOUTH KOREA IN THIS REGION. IT WAS SIGNIFICANTLY BETTER THAN JAPAN OR TAIWAN. IT WAS ALMOST THREE TIMES THE LEVEL OF SINGAPORE WHOSE INDUSTRIAL POLICIES SOME MEMBERS HAVE IMPLIED WE SHOULD FOLLOW. THIS GROWTH HAS BEEN ACHEIVED BY SUSTAINED INVESTMENT IN AUTOMATION AND NEW TECHNOLOGY. THIS INVESTMENT HAS CONTINUED VERY STRONGLY SINCE 1990 AND HAS BEEN REFLECTED IN FURTHER SIGNIFICANT INCREASES IN PRODUCTIVITY.
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