XN000022-1983-03-24 — Page 4

THURSDAY, MARCH 24, 1983

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+ON THE OTHER HAND, THE TECHNICAL EDUCATION AND INDUSTRIAL TRAINING DEPARTMENT WAS SET UP IN APRIL, 1982 TO ASSIST THE VOCATIONAL TRAINING COUNCIL IN THE IMPLEMENTATION OF ITS POLICY.

+MEANWHILE, THE PLANNING COMMITTEE FOR THE SECOND POLYTECHNIC WAS ESTABLISHED" IN JUNE, 1982, AND THE RESPONSIBILITIES FOR THE FORMULATION OF EDUCATION AND MANPOWER DEVELOPMENT POLICIES WERE MERGED IN FEBRUARY, THIS YEAR, MR WONG SAID.

HE SAID THAT THE FULL IMPACT OF ALL THESE ORGANISATIONS WERE

YET TO BE FELT AND THEIR EFFECTIVENESS TO BE GAUGED.

MR WONG STRESSED THE NEED TO ENSURE A CONSTRUCTIVE AND PARTICIPATIVE DIALOGUE BETWEEN THE INDUSTRIES AND THE INSTITUTIONS IN COURSE DESIGN AND TO ACHIEVE A PROPER BALANCE BETWEEN THESE ENTITIES.

+ THE NEED TO ALLOCATE SENSIBLY RESOURCES AMONG THESE MANY SECTIONS AND DEPARTMENTS CAN THUS NEVER BE OVER EMPHASISED.

+MOREOVER, STAFF MEMBERS OF THESE INSTITUTIONS SHOULD BE ENCOURAGED AND GIVEN THE NECESSARY SUPPORT TO ENABLE THEM TO ANTICIPATE AND RESPOND TO THE NEEDS OF TRADE AND INDUSTRY AND TO INITIATE RESEARCH PROGRAMMES BASED ON LOCAL CONDITIONS AND PARTICULARITIES,+ HE SAID.

MR WONG WAS SADDENED THAT THE GROWTH RATE OF LABOUR PRODUCTIVITY SHOULD HAVE DECLINED FROM 9 PER CENT IN 1977 TO 2 - 3 PER CENT IN 1980, WITH A SLIGHT IMPROVEMENT TO 3.5 PER CENT IN 1981, BUT ONLY TO DECLINE TO A DISAPPOINTING 2 PER CENT IN 1982.

PRODUCTIVITY RELATES DIRECTLY TO THE PLANT AND MACHINERY USED, THE TIME DEVOTED TO PRODUCTIVE WORK AND THE SKILLS OF THE WORKERS.

+LAST YEAR, I SPOKE OF THE INCREASED DEPRECIATION ALLOWANCE FOR NEW CAPITAL EQUIPMENT AND PLANT AND INDUSTRIAL BUILDINGS AS BUT SMALL STEPS IN THE RIGHT DIRECTION.

+ IT TURNED OUT THAT PRIVATE EXPENDITURE ON PLANT AND MACHINERY, IN FACT, REGISTERED A DECREASE OF 6 PER CENT IN 1982-83. GRANTED THAT IT COULD BE ARGUED THAT WITHOUT THESE CONCESSIONS, THE ACTUAL PERCENTAGE COULD HAVE BEEN EVEN MORE DISCOURAGING, HE SAID.

MR WONG QUERIED THE EFFECTIVENESS OF THE PROPOSED EXEMPTION OF PATENT RIGHTS PAYMENTS FROM PROFITS TAX ASSESSMENTS IN UPGRADING EXISTING TECHNOLOGY.

+WHILE IT IS CERTAINLY TRUE THAT SUCH MEASURES WOULD PROVIDE THE INCENTIVE AND ENCOURAGEMENT FOR TECHNOLOGICAL PROGRESS, THEY ARE UNLIKELY TO BE OF ANY PRACTICAL INDUCEMENT TO THE SMALL AND MEDIUM SIZED INDUSTRIAL UNDERTAKINGS WHICH MUST HAVE ACCOUNTED FOR A SIGNIFICANT PROPORTION OF OUR MANUFACTURING SECTOR.

+THIS IS BECAUSE THESE 'SMALL MEN' HAVE LITTLE OR NO CAPACITY, NOR RESOURCES, FOR PRODUCT RESEARCH AND DEVELOPMENT, + HE SAID.

/EE CONSIDERED