7.

Second, the issue of sexual preference is one that remains highly sensitive and controversial in Hong Kong. Does the general public share the liberal values implicit in the provisions of the Bill? Any legislation which does not reflect the local community's values would be difficult, if not impossible, to enforce and provoke a backlash of even worse intolerance of the sort that the legislation aims to combat.

Third, in relation to age discrimination we should not allow ourselves or others to confuse the problem of discrimination with that of unemployment caused by structural changes in the economy. The recent increase in the unemployment rate has understandably given rise to public concern. It has been suggested that age discrimination is severely affecting the employment opportunities of the middle aged, particularly women in their 30's and 40's. This has led to a widespread belief that legislating against discrimination based on age will solve a major part of the unemployment problem. I am afraid this view is far too simplistic. Its advocates ignore the fact that the Hong Kong labour market operates on the basis of supply and demand.

Anti-discrimination legislation will not create new demand for employees. A vacancy with two applicants, one of whom must be disappointed, will not become two vacancies that both applicants can happily fill as a result of such legislation.

We can understand the frustration felt by those facing difficulty in finding jobs but the issue of unemployment calls for specific responses targeted at the real problem. This is what is being done with the thirteen point package of short, medium and long term measures announced by the Governor on 13 June. The package includes measures aimed at bringing about a rapid enhancement of employment opportunities. For example, action has been stepped up to combat illegal employment with 275 operations in June resulting in 312 arrests and 136 prosecutions of both offending employers and employees. The Pilot Job Matching Scheme is being expanded and a large-scale job matching forum took place on 22 June at which personnel managers indicated that they had 1,700 vacancies. The Employees Retraining Scheme has also been expanded to include persons aged 30 and above and with the introduction of an on the job retraining programme for semi-skilled technicians. Only targeted measures such as these will ensure that the unemployment problem is managed effectively. Anti-discrimination legislation will not. To imply that such legislation is a universal panacea for unemployment is to foster a cruel illusion. Those who pin their hopes on it will be harshly disappointed. Hon. Members should also not overlook the cost impact for employers having to seek expertise advice in order to abide by such a rush of numerous anti-discrimination provisions that are plagued with uncertainties. Additional costs of this sort can hardly assist the creation of job vacancies at this time.

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