XN000022-1981-01-22 — Page 12

2

is addressing itself to the method of conducting annual pay reviews.

But its work will not be completed

-

for some months and this year's review will be conducted on the old basis.

Its object is neither to lead nor lag behind trends in the private sector

as they have been, and certainly not as they might be in the future. I

would also make the point that, in so large and complex a community, even so

ingenious a private sector as that of Hong Kong would come unstuck without

an efficient and contented public service; that in Hong Kong you have a

public service which in my professional judgment is better than in any of the six

previously countries in which I have served; and that it is very much in the public

interest that this service should feel that it is fairly treated and for

this reason much effort has been put into the overhaul of pay and conditions

of service since I last spoke to you. And I would like to record my thanks

for the devoted work of members of the Standing Commission, several of whom

are members of this Chamber.

I can also assure you we have no intention of intervening in

supply and demand more than the Government does at present. For of course

it does intervene and on a large scale. Housing, Education,

is

medical services and the various benefits available under our social welfare.

schemes, are all obvious examples, and they greatly contribute to the well- being and stability, let alone the international acceptability, of our society. In carefully defined circumstances, land is another example. But I certainly.. take the point that since Hong Kong is so dependent on economic conditions in its overseas markets which are beyond its control, generally speaking

Hong Kong costs must be left free to adjust to what will win orders in these

markets.

The outcome