XN000022-1983-04-14 — Page 15

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THURSDAY, APRIL 14, 1983

HE STRESSED THAT THE GOVERNMENT MUST NOT INDULGE IN WHAT COULD BE INTERPRETED AS EXPORT SUBSIDIES.

+I NEED HARDLY SAY THAT ANY INFRINGEMENT BY US OF THE GATT CODE ON SUBSIDIES AND COUNTERVAILING DUTIES WILL NOT ONLY UNDERMINE OUR MORAL AS WELL AS LEGAL STANDING IN THE GATT, WE MIGHT ALSO INVITE COUNTERVAILING ACTION AGAINST OUR PRODUCTS IN OUR OVERSEAS MARKETS IN FUTURE, MR HO SAID.

ON MAINTAINING INDUSTRY'S COMPETITIVE POSITION, MR HO TOLD THE COUNCIL THAT THE GOVERNMENT'S ROLE WAS THUS IN PROVIDING THE BASIC INDUSTRIAL INFRASTRUCTURE AND VARIOUS SUPPORT SERVICES, INCLUDING INDUSTRIAL INVESTMENT PROMOTION EFFORTS AND OTHER ACTIVITIES, BUT THE REAL RESPONSIBILITY LIES IN OUR INDUSTRIALISTS' INNOVATION, RESOURCEFULNESS AND WILLINGNESS TO PARTAKE IN THE CONTINUAL DEVELOPMENT OF HONG KONG.+

COMMENTING ON THE HON WONG PO YAN'S REMARKS THAT THE GROWTH OF LABOUR PRODUCTIVITY WAS ON THE DECLINE, MR HO EXPLAINED THAT LABOUR PRODUCTIVITY WAS RELATED TO INVESTMENT IN PLANT AND MACHINERY AND SKILLS OF WORKERS, AND A DECLINE IN THE GROWTH RATE IN THE LAST COUPLE OF YEARS WAS NOT UNEXPECTED.

+THERE HAS BEEN AN INCREASE IN RECENT YEARS OF UNSKILLED LABOUR THROUGH IMMIGRATION AND A DECLINE IN INVESTMENT OF PLANT AND MACHINERY AS A RESULT OF CHANGING ECONOMIC CIRCUMSTANCES, INCLUDING DIVERSION OF INVESTMENT INTO THE FINANCIAL AND REAL ESTATE SECTORS, TOGETHER WITH A DOWNTURN IN WORLD MARKET DEMANDS.+

MR HO AGREED THAT THERE WAS A NEED TO INCREASE LABOUR PRODUCTIVITY THROUGH GREATER AUTOMATION AND INCREASED MANPOWER TRAINING. INDUSTRIAL INVESTMENT PROMOTION, INDUSTRIAL DEVELOPMENT BOARD PROJECTS, AND THE HONG KONG PRODUCTIVITY CENTRE'S EFFORTS ALL HELP TO ENCOURAGE AND ASSIST INDUSTRY TO INVEST FURTHER IN PLANT AND MACHINERY AND ADOPT IMPROVED PROCESSES OF PRODUCTION,+ HE ADDED.

ON THE EXHIBITION CENTRE, MR HO DISCLOSED THAT THE STAGE II CONSULTANTS HAD SUBMITTED THEIR REPORT TO THE NON-STATUTORY BOARD IN FEBRUARY 1983. AT THE BOARD'S REQUEST, THE CONSULTANTS MADE

IT IS CERTAIN AMPLIFICATIONS TO THEIR FINANCIAL ESTIMATES. ENVISAGED THAT THE NON-STATUTORY BOARD WILL SUBMIT VERY SHORTLY ITS RECOMMENDATIONS ON THIS REPORT TO THE GOVERNOR-IN-COUNCIL FOR A DECISION ON THE FUTURE OF THE PROJECT.

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