XN000022-1978-03-30 — Page 5

THURSDAY, MARCH 30, 1978

+ INDEED CURRENT TRADE FIGURES SHOW THAT GARMENT EXPORTS IN 1977 ACCOUNTED FOR 84 PER CENT OF OUR TOTAL TEXTILE EXPORTS AS COMPARED WITH 77 PER CENT IN 1970. GARMENT EXPORTS REPRESENTED 39 PER CENT OF OUR TOTAL DOMESTIC EXPORTS IN 1977, AS COMPARED WITH 35 PER CENT IN 1970, + HE ADDED.

ON THE QUESTION OF LABOUR, MR. TIEN SAID HONG KONG WAS EXPERIENCING AN +ACUTE SHORTAGE OF SKILLED LABOUR DUE TO THE RAPID EXPANSION OF OUR INDUSTRIES OVER THE PAST DECADE.

THIS WOULD BE FURTHER AGGRAVATED BY GOVERNMENT'S INTENTION OF PROVIDING FREE AND SUBSIDISED EDUCATION AS ENVISAGED IN THE GREEN PAPER ON SENIOR SECONDARY AND TERTIARY EDUCATION, MR. TIEN SAID.

+THERE IS A DANGER THAT MORE YOUNG PEOPLE THAN EVER BEFORE WILL CHOOSE TO CONTINUE FULL-TIME EDUCATION RATHER THAN EMPLOYMENT IF THEY HAD THE CHOICE,+ HE ADDED.

+A SITUATION MAY THEREFORE ARISE WHERE FEW FORM 111 LEAVERS WILL CHOOSE TO ENTER EMPLOYMENT AS CRAFT APPRENTICES OR SEMI-SKILLED WORKERS TO THE DETRIMENT OF INDUSTRY GENERALLY. +

MR. TIEN SAID ANOTHER FACTOR WHICH WOULD AGGRAVATE THE SUPPLY OF LABOUR IN THE MID-1980S WAS THE SLOWDOWN IN THE GROWTH RATE OF THE POPULATION OF WORKING AGE FROM THE PRESENT THREE PER CENT PER ANNUM TO JUST OVER ONE PER CENT AS MENTIONED BY THE FINANCIAL SECRETARY IN HIS BUDGET SPEECH.

TO MEET THE DEMANDS OF INDUSTRY IN HONG KONG, PARTICULARLY THAT OF THE TEXTILE AND CLOTHING SECTOR WHICH EMPLOYS THE LARGEST NUMBER OF WORKERS, MR. TIEN ASKED IF ANY ACTION HAD BEEN TAKEN BY THE GOVERNMENT TO RELAX THE IMMIGRATION LAWS TO ALLOW ENTRY INTO HONG KONG OF PERSONS FROM NEIGHBOURING TERRITORIES TO ALLEVIATE THIS SHORTAGE.

COMMENTING ON THE WORK OF THE TRADE DEVELOPMENT COUNCIL, MR. TIEN PRAISED ITS EFFORTS IN KEEPING HONG KONG'S NAME IN THE FOREFRONT OF THE MINDS OF OUR OVERSEAS CUSTOMERS.

HOWEVER, HE SAID WHILE THE COUNCIL WAS PURSUING THESE COMMENDABLE EFFORTS, IT SEEMED TO LACK REAL EXPERTISE ON THE GARMENT INDUSTRY.

MR. TIEN POINTED OUT THAT THERE IS NOT A SINGLE GARMENT MANUFACTURER ON THE COUNCIL WHICH HAD A BUDGET OF $38.33 MILLION FOR 1976/77, 40 PER CENT OF WHICH CAME FROM GARMENT EXPORTS.

+THIS IS A MOST UNSATISFACTORY STATE OF AFFAIRS IN VIEW OF THE IMPORTANCE OF THE CLOTHING INDUSTRY TO HONG KONG'S ECONOMIC WELL-BEING.+

MR. TIEN ALSO NOTED THAT THERE HAD NOT BEEN AN INCREASE IN THE COUNCIL'S MEMBERSHIP SINCE ITS ESTABLISHMENT BY STATUTE IN 1966 WHILE ITS BUDGET HAD INCREASED NEARLY THREEFOLD FROM $18.14 MILLION IN 1970/71 TO $49.72 MILLION' IN THE COMING FINANCIAL YEAR.

/HE URGED