XN000022-1976-10-27 — Page 9

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WEDNESDAY, OCTOBER 27, 1976

HONG KONG'S WAGE RATES NEXT ONLY TO

HIGHLY DEVELOPED COUNTRIES

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ANY FURTHER RESTRICTIVE MEASURES AFFECTING THE USE OF LABOUR, OR ANYTHING THAT WOULD UNDULY INCREASE THE BURDEN OR OVERHEADS OF INDUSTRY SHOULD BE EXAMINED WITH THE UTMOST CARE AND CONSIDERATION, THE HON, JAMES WU TOLD THE LEGISLATIVE COUNCIL TODAY.

SPEAKING ON A MOTION OF THANKS FOR THE GOVERNOR'S OPENING ADDRESS, HE SAID THAT THE CONSEQUENCES OF SUCH MEASURES COULD BE FAR-REACHING AT OUR PRESENT STAGE OF DEVELOPMENT AND COULD GREATLY HARM OUR FLEXIBILITY AND COST US MANY ORDERS AND JOBS.

HE STRESSED THAT HE WAS NOT SUGGESTING TO TURN THE CLOCK BACKWARDS AND THAT HONG KONG INDUSTRIALISTS WERE PROUD TO BE ABLE TO OFFER BETTER CONDITIONS OF EMPLOYMENT WHERE THEY COULD AFFORD.

+ IN ANY CASE IT IS THE HARD FACT OF LIFE THAT DEVELOPING COUNTRIES WOULD HAVE TO WORK HARDER TO CATCH UP WITH THE HIGHLY INDUSTRIALISED COUNTRIES WHICH POSSESS BETTER RESOURCES AND HIGHER PRODUCTIVITY, HE SAID.

MR. WU POINTED OUT THAT WE HAVE MADE SUBSTANTIAL PROGRESS IN IMPROVING LABOUR CONDITIONS IN THE LAST SIX OR SEVEN YEARS, NOTING THAT A TOTAL OF 135 PIECES OF LABOUR LEGISLATION HAD BEEN PASSED FROM 1968 TO DATE.

IT IS FAIR TO SAY THAT THESE HAVE BEEN PASSED WITHOUT MUCH OF A MURMUR, WITH INDUSTRY GENERALLY AGREEABLE AND BEING ABLE TO AFFORD THE IMPROVEMENT, + HE SAID.

HE FELT THAT THE PROPOSED ONE WEEK'S HOLIDAY WITH PAY WAS NOT LIKELY TO AROUSE MUCH OBJECTION +BEARING IN MIND THAT WORKERS DO TAKE LEAVE AS AND WHEN THEY LIKE, WITH OR WITHOUT PAY, AND SO AT WORSE THIS AMOUNTS TO A TWO PER CENT INCREASE IN PAY+.

HOWEVER, HE POINTED OUT THAT IF THE HOLIDAYS MUST BE TAKEN IN ONE CONSECUTIVE PERIOD AND NO PAYMENT IN LIEU WAS ALLOWED, THEN THE QUESTION OF COSTS WOULD BE GREATLY MAGNIFIED AND THE PROBLEMS OF PRACTICAL APPLICATION SO GREAT THAT INDUSTRY AT THIS STAGE WOULD FIND IT DIFFICULT TO BEAR IT BY AS SOON AS 1978.

+ONE INDUSTRIALIST ESTIMATES THAT IT WOULD CAUSE A LOSS IN OUR INDUSTRIAL PRODUCTION BY $500 TO $1,000 MILLION PER YEAR, WHICH IS EQUIVALENT TO THE COST OF HOUSING 100,000 PEOPLE, HE SAID.

/HE ADDED: