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Mr Wong pointed out that ERB's retraining fund would continue to sustain a deficit in 1996-97 and the balance of the fund was expected to be further reduced.
"It is because the Board's primary income from levy is decreasing as a result of the freeze of the General Labour Importation Scheme since April 1995 and the retraining expenditures have gone up significantly following the expansion of training programmes in recent years." he said.
In the 1993-94 financial year, retraining expenses was at $106.3 million which was readily met by the levy income of $130.5 million.
However, in 1994-95, the levy income dropped to $97.6 million while the retraining expenses had gone up to $245.8 million. During the period, the balance of the Fund dropped from $437.1 million to $310.6 million.
As at January 1996, the levy income was $60 million whereas the retraining expenditure amounted to $190 million, further bringing down the balance of the Fund to $186 million.
Mr Wong underlined the importance of injecting the necessary fund into the Board which had assumed a greater role in tackling unemployment by providing retraining to displaced workers to help them re-enter the workforce.
The consultancy study will set the direction and map out a strategy for the provision of retraining for the next few years, he added.
"In 1992, the Finance Committee approved a capital injection of $300 million, which is equivalent to two and a half years' levy income.
"Calculating with this principle and using the estimated levy income in 1996- 97, we recommend that another $300 million should be injected into the ERB," Mr Wong said.
On the New Technology Training Scheme providing matching grants to companies which intend to help their staff acquire skills in new technologies. Mr Wong said it was the right time to review the parameters of the Scheme because having properly trained workers in the latest advanced technological skills was of great importance to Hong Kong's economy.
End