XN000022-1979-01-24 — Page 14

WEDNESDAY, JANUARY 24, 1979

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FOR THOSE IN THE GARMENT INDUSTRY, UNPREDICTABLE QUOTA PRICES AND AVAILABILITY, AGGRAVATED BY FERVENT SPECULATION, COULD MEAN NON-SHIPMENT OF FINISHED GOODS AND IRREPARABLE LOSSES.

OTHER SMALL INDUSTRIES WERE ALSO MAINLY OF LOW TECHNOLOGY AND HIGH LABOUR INTENSITY AND WHAT LITTLE LEAD HONG KONG ENJOYED IN MANUAL SKILLS WAS BEING RAPIDLY ERODED BY KEEN COMPETITORS WHO, WITH THEIR GOVERNMENTS' ASSISTANCE AND CO-OPERATION, HAD BEEN ABLE TO ADVANCE FARTHER IN TECHNOLOGY AND LARGER IN SCALE.

MR. S.L. CHEN, CHAIRMAN OF THE HONG KONG PRODUCTIVITY COUNCIL, SUPPORTED MR. CHEONG-LEEN'S CALL FOR FURTHER FINANCIAL ASSISTANCE TO SUBVENTED BODIES TO PROVIDE SUPPORT SERVICES TO SMALL-SCALE INDUSTRIES.

HE POINTED OUT THAT WITH THE INCREASING SOPHISTICATION OF HONG KONG INDUSTRIES AND BEARING IN MIND THAT SMALL-SCALE INDUSTRIES HAD NEITHER THE TECHNICAL CAPABILITY NOR THE FINANCIAL RESOURCES TO DEVELOP THEIR OWN SERVICE FACILITIES, THE NEED OF GOVERNMENT ASSISTANCE DIRECTLY OR INDIRECTLY BUT WITHOUT NECESSARILY INCREASING GOVERNMENT INTERFERENCE, IS MORE IMPORTANT THEN EVER.+

HE RECALLED THAT IN THE BUDGET DEBATE LAST YEAR HE HAD SUGGESTED SETTING UP A +FACTORY OWNERSHIP SCHEME TO HELP SMALL INDUSTRIAL OPERATIONS.

THE FINANCIAL SECRETARY HAD AT THAT TIME SAID HE WAS +SORELY TEMPTED TO RESPOND IN GREAT DETAIL TO THESE IMPORTANT QUESTIONS AND PROPOSALS+, OF WHICH THE SCHEME WAS ONE, BUT DID NOT DO SO BECAUSE HE FELT IT WOULD BE PREMATURE AND DISCOURTEOUS TO THE ADVISORY COMMITTEE ON DIVERSIFICATION,

MR. CHEN SAID HE WAS THEREFORE VERY GLAD TO HAVE THE OPPORTUNITY TO BRING THE MATTER BACK TO THE FORE.

REPLYING TO POINTS RAISED BY THE UNOFFICIAL MEMBERS, THE DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS, THE HON. DAVID JORDAN SAID A GREAT DEAL OF EFFORT HAS RECENTLY BEEN MADE TO ALLEVIATE THE SHORTAGE OF SUITABLE ACCOMMODATION FOR SMALL SCALE INDUSTRIES.

HE STRESSED THAT FOR THESE INDUSTRIES WHICH REPRESENT THE MAJORITY AND ARE SUITABLE FOR LOCATION IN ORDINARY FLATTED FACTORIES. THERE WILL BE NO SHORTAGE OF SPACE IN THE NEAR TO MEDIUM TERM,

BY THE END OF THIS YEAR, AN ADDITIONAL 13 MILLION SQ. FT. OF FLATTED FACTORY SPACE WILL BECOME AVAILABLE -- ABOUT 3 MILLION SQ. FT. MORE THAN IN 1978 AND OVER 4 MILLION MORE THAN IN 1977.

MR. JORDAN ALSO ADMITTED THAT AT PRESENT THERE WAS A SHORTAGE OF GOVERNMENT-FINANCED FLATTED FACTORY ACCOMMODATION FOR RESETTLING SQUATTER FACTORIES OWING TO AN ACCELERATION IN THE

NUMBER OF FACTORIES BEING CLEARED.

HOWEVER, HE SAID, A LARGE CONSTRUCTION PROGRAMME WAS NOW

IN HAND.

/+IN THE MEANTIME,

F