XN000022-1979-11-15 — Page 3

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THURSDAY, NOVEMBER 15, 1979

ON THE DEMAND FOR, AND SUPPLY OF LABOUR, MR. HADDON-CAVE SAID A BETTER BALANCE APPEARS TO BE DEVELOPING IN THE LABOUR MARKET AS A WHOLE, INASMUCH AS THE UNEMPLOYMENT RATE FOR SEPTEMBER, ADJUSTED FOR SCHOOL LEAVERS, WAS AROUND THREE PER CENT COMPARED WITH 2.3 PER CENT IN MARCH.

+BUT THE DEMAND FOR LABOUR IN THE BUILDING AND CONSTRUCTION INDUSTRY IS STILL SUCH THAT WAGE RATES ARE STILL INCREASING AT A FAST PACE AND FASTER THAN IN THE MANUFACTURING SECTOR.

TURNING TO PRICES, THE FINANCIAL SECRETARY SAID REAL INCOMES GENERALLY HAVE" INCREASED RAPIDLY IN THE PAST FOUR YEARS AND ARE CONTINUING TO DO SO.

HE POINTED OUT THAT REAL G.D.P. PER CAPITA HAS INCREASED BY 44 PER CENT IN THE FOUR POST-RECESSION YEARS AND REAL WAGE RATES IN THAT SECTOR OF THE ECONOMY WHICH EMPLOYS TWO-FIFTHS OF THE LABOUR FORCE HAVE INCREASED BY 45 PER CENT OVER THE SAME PERIOD.

+SO LET US NOT ALLOW THE MANY IRRITATIONS AND FRUSTRATIONS CAUSED BY 'INFLATION' TO OBSCURE THE UNDENIABLE FACT THAT THIS COMMUNITY AS A WHOLE IS PROSPERING, ONE MANIFESTATION OF THIS BEING, AS THE SECRETARY FOR HOUSING SAID YESTERDAY, A PENT-UP DEMAND FOR HOUSING.+

IN REPLY TO A CALL BY DR. THE HON. RAYSON HUANG FOR MORE PUBLIC DEBATE ON ECONOMIC POLICY, THE FINANCIAL SECRETARY SAID BESIDES THE READILY AVAILABLE OPPORTUNITIES FOR FORMAL AND INFORMAL CONTACT BETWEEN OFFICIALS AND UNOFFICIALS AND INTERESTED MEMBERS OF THE PUBLIC, IT IS THE PRACTICE OF THE GOVERNMENT TO EXPOSE ITS THINKING IN BUDGETARY, FISCAL, ECONOMIC AND MONETARY FIELDS AT SOME LENGTH IN BOTH THE "WRITTEN AND SPOKEN WORD'.

HE SAID: +WE DO THIS NOT JUST BECAUSE WE HAVE AN OBLIGATION TO EXPLAIN OUR THINKING IN THESE ALL IMPORTANT FIELDS.. BUT ALSO WITH A VIEW TO PROVOKING COMMENTARY.

+SUCH COMMENTARY, NO MATTER HOW IT IS PUBLICISED IS ALWAYS STUDIED BY MY COLLEAGUES AND ME WITH INTEREST ALBEIT, SOMETIMES, INTEREST MIXED WITH IRRITATION.+

HE NOTED THAT COMMENTARY IS NEVER IGNORED AND OCCASIONALLY LEADS TO A VISIBLE RESPONSE.

TURNING TO THE CALL BY THE HON. LYDIA DUNN FOR AN IN-DEPTH STUDY OF GOVERNMENT'S TOP MANAGEMENT STRUCTURE, MR. HADDON-CAVE THOUGHT THAT +OUR MANAGEMENT OVERHEADS NEED STRENGTHENING RATHER THAN RE-ORGANISING SUCH HAS BEEN THE PACE OF GROWTH AND CHANGE IN RECENT YEARS.

THE FINANCIAL SECRETARY ALSO DEFENDED THE INLAND REVENUE DEPARTMENT FOR TAXING THE CREDIT UNIONS. THE COMMISSIONER OF INLAND REVENUE MUST ADMINISTER THE LAW AS IT STANDS. THERE HAS BEEN NO HOUNDING OR HARASSMENT.+

/BUT HE