- 13 -
Unemployment
There is of course a less welcome side to any slackening of the labour market. I am well aware of the impact of increased unemployment on those who lose their jobs and on their families. We regard the rise in the unemployment rate as a matter for serious concern. The Governor held a summit in June to discuss unemployment with union and business representatives. That led to immediate measures to tackle the problems which had aggravated the situation: illegal employment and skills training and matching. The Governor has organised a second summit for next Thursday. I am sure its deliberations will make a further valuable contribution to tackling this issue.
The Secretary for Education and Manpower will have more to say on the steps being taken. I would simply like to point out that from the perspective of Government, the private sector and the employee, it is clearly in the best economic interests of Hong Kong to have a work force that is stable, well-trained and fully employed, and one that enjoys a good working relationship with its employer. Industrial harmony has been a notable feature and important contributor to Hong Kong's economic success over the past years. It is essential for the maintenance of our future growth.
Income Gap
Members have also drawn attention to the problem of the growing gap between the rich and poor. This is a long-term social issue rather than one related to short-term fluctuations in the economy. Over the past ten years or so, those at the higher end of the income spectrum have enjoyed faster rises in income than those at the lower end. The lower income groups, nevertheless, have recorded considerable income increases over the period. This means that their well-being has also been improving in real terms, although at a slower rate.
In a free market economy such as ours, we do not set ourselves the objective of a completely even distribution of income. Instead, we set ourselves the objective of trying to ensure that everyone benefits from economic success. That is why we have gradually refined our tax system to assist the less well-off. That is why our public housing programme provides highly-subsidised accommodation for nearly half of all our households. That is why we have adopted substantial welfare measures and have increased welfare spending within our overall spending guidelines. And that is why in the past three years, we have increased the average monthly CSSA payment by 60%. Provided we can afford them, we will continue to make improvements to the scope and level of social welfare assistance in our community.