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WEDNESDAY, JULY 7, 1993
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SPEECH OF SECRETARY FOR FINANCIAL SERVICES, MR MICHAEL CARTLAND
IN MOTION DEBATE ON POLICY ON SERVICE INDUSTRY IN LEGCO
MR PRESIDENT
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THE PROPOSER OF THIS MOTION HAS PRESENTED US WITH A VERY BROAD PROPOSITION WHICH HE USED IN HIS OPENING SPEECH VERY MUCH IN THE MANNER OF A CHRISTMAS TREE ON WHICH HE AND OTHERS HAVE HUNG AN ENORMOUS ARRAY OF ORNAMENTS. IT WOULD TAKE ME FROM NOW UNTIL THE CHRISTMAS AFTER NEXT TO ATTEMPT TO ADDRESS THEM ALL IN ANY DEGREE OF DEPTH. I SHOULD THEREFORE CONFINE MYSELF LARGELY TO ADDRESSING THE WORDING OF THE MOTION ITSELF, NOT BECAUSE MANY OF THE USEFUL AND INTERESTING POINTS THAT HAVE BEEN MADE BY SOME SPEAKERS IN THIS DEBATE ARE NOT WORTHY OF CONSIDERATION, BUT SIMPLY BECAUSE IT IS NOT POSSIBLE TO DO THEM ALL JUSTICE IN THE CONTEXT OF A DEBATE THAT IS AS BROAD AS THIS WHERE ALMOST ANYTHING CAN BE RAISED AND HAS BEEN. MEMBERS MAY BE ASSURED THAT THEIR POINTS HAVE BEEN CAREFULLY NOTED.
MR PRESIDENT, THE STRUCTURAL TRANSFORMATION OF THE HONG KONG ECONOMY, TO WHICH THIS MOTION REFERS, HAS BEEN PROCEEDING FOR MANY YEARS AS AN AUTONOMOUS PROCESS DRIVEN BY MARKET FORCES. IT IS NOT A MANAGED PROCESS AND CERTAINLY DOES NOT CALL FOR A MANAGED RESPONSE. A RELATIVE DECLINE IN THE SIGNIFICANCE OF LOCAL MANUFACTURING HAS TAKEN PLACE, WHILE THE SERVICE SECTORS HAVE CONTINUOUSLY GROWN IN IMPORTANCE. BETWEEN 1981 AND 1991 THE SHARE OF THE MANUFACTURING SECTOR IN THE GDP FELL FROM 23% TO 16%, WHILE THAT OF THE SERVICE SECTORS AS A WHOLE ROSE FROM 64% TO 73%. THE CHANGES IN THE SHARES IN TOTAL EMPLOYMENT WERE EVEN MORE DRAMATIC. IN 1981, MANUFACTURING PROVIDED JORS TO 39% OF OUR TOTAL WORKFORCE; IN 1992 IT WAS ONLY 24%. BY CONTRAST, THE SERVICE SECTORS AS A WHOLE EMPLOYED 66% OF OUR WORKFORCE IN 1992, UP FROM 50% IN 1981. BY ANY RECKONING HONG KONG NOW CLEARLY HAS THE PROFILE OF A PREDOMINANTLY SERVICE-ORIENTED ECONOMY.
THE
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AND AND
PROMPTED BY THE ECONOMIC OPPORTUNITIES EMERGING FROM THE OPEN DOOR POLICY OF CHINA, TO WHICH MANY SPEAKERS HAVE REFERRED. THE STRUCTURAL TRANSFORMATION OF OUR ECONOMY HAS BEEN PROCEEDING AT A PHENOMENAL PACE. RESOURCES HAVE BEEN MOVING QUICKLY ACROSS FROM MANUFACTURING SECTOR TO SUCH ACTIVITIES AS WHOLESALE/RETAIL IMPORT/EXPORT TRADE; RESTAURANTS AND HOTELS; TRANSPORT, STORAGE COMMUNICATIONS; AND FINANCIAL, INSURANCE AND OTHER PROFESSIONAL SUPPORTING BUSINESS SERVICES.
IT IS REMARKABLE THAT WE HAVE EXPERIENCED LITTLE STRUCTURAL UNEMPLOYMENT IN THE PROCESS. EMPLOYMENT HAS BEEN DECLINING VERY RAPIDLY IN MANUFACTURING WHILST CONCURRENTLY IT HAS BEEN RISING EQUALLY QUICKLY IN THE MAIN SERVICE SECTORS, WITH THE NET RESULT THAT THE OVERALL UNEMPLOYMENT RATE HAS REMAINED PERSISTENTLY LOW. THE HIGH DEGREE OF ADAPTABILITY AND VERSATILITY OF OUR WORKFORCE, WHICH THUS FAR HAS CONTRIBUTED MUCH
ΤΟ EASING THE PROCESS OF STRUCTURAL CHANGE, WOULD BE HARD TO MATCH ELSEWHERE IN WORLD.
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