XN000022-1983-06-24 — Page 4

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FRIDAY, JUNE 24, 1983

DEVELOPMENT STRATEGY GOING BEYOND 1997

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THE CURRENT SLACKNESS IN THE CONSTRUCTION INDUSTRY HAD RESULTED IN GREATER COMPETITION BY CONTRACTORS FOR GOVERNMENT PROJECTS AND IN A LOWERING OF THE TENDER PRICE INDEX DESPITE THE HIGH COST OF LABOUR, THE SECRETARY FOR LANDS AND WORKS, HR DAVID MCDONALD, SAID THIS (FRIDAY) EVENING.

SPEAKING AT A FAREWELL DINNER GIVEN BY THE BUILDING CONTRACTORS' ASSOCIATION TO MARK HIS RETIREMENT NEXT WEEK FROM GOVERNMENT SERVICES, MR_MCDONALD SAID THE TENDER PRICE INDEX HAD BEEN FALLING OVER THE PAST YEAR, PARTLY BECAUSE THE PRICE OF BASIC CONSTRUCTION MATERIALS HAD STABILISED.

ON THE DECLINE IN THE PROPERTY MARKET, MR MCDONALD

SAID THAT WHILE MANY PRIVATE DEVELOPERS WERE RELUCTANT TO COMMIT THEMSELVES TO CONSTRUCTION, THE GOVERNMENT CONSTRUCTION PROGRAMME HAD NOT BEEN AXED.

+THIS YEAR WE ARE TO SPEND MORE THAN EVER BEFORE ON CONSTRUCTION AND THIS WILL CONTINUE IN THE YEARS AHEAD, HE SAID.

+1 MUST STRESS THE GOVERNMENT'S CONTINUING COMMITMENT TO DEVELOPMENT, PARTICULARLY IN THE NEW TERRITORIES. OUR LONG-TERM DEVELOPMENT STRATEGY IS BASED ON FORECAST, DERIVED FROM REGIONAL DEVELOPMENT STUDIES, OF POPULATION NEEDS BEYOND THE BEGINNING OF THE NEXT CENTURY, AND THE YEAR 1997 HAS NO SIGNIFICANCE IN OUR FUTURE PLANNING,+ MR MCDONALD SAID.

+I BELIEVE THAT WITH AN IMPROVEMENT OF THE GENERAL WORLD ECONOMY, AND A RECOGNITION BY ALL OF THE BASIC WORTH OF HONG KONG AND ITS PEOPLE, THE PROSPECTS FOR THE FUTURE OF ITS CONSTRUCTION INDUSTRY ARE BRIGHT, HE ADDED.

IN HIS SPEECH MR MCDONALD ALSO REFLECTED ON HIS CONTACT WITH HONG KONG CONTRACTORS DURING HIS 28 YEARS OF SERVICE WITH THE GOVERNMENT.

HE RECALLED THAT HIS FIRST CONTACT CAME WHEN HE WAS APPOINTED AN ARCHITECT IN THE ARCHITECTURAL OFFICE OF THE FORMER PUBLIC WORKS DEPARTMENT IN 1955.

SINCE THEN HE HAD BEEN IN REGULAR CONTACT WITH THEM AS A PROJECT ARCHITECT, AT THE QUARTERLY MEETINGS BETWEEN THE BUILDING CONTRACTORS' ASSOCIATION AND THE PWD, AS THE BUILDING AUTHORITY AND DIRECTOR OF PUBLIC WORKS, AND MOŘE RECENTLY AS THE SECRETARY FOR LANDS AND WORKS AND CHAIRMAN OF THE BUILDING DEVELOPMENT ADVISORY COMMITTEE.

+AS A RESULT OF THAT CONTACT, I HAVE OVER THE YEARS DEVELOPED A VERY HIGH REGARD FOR HONG KONG'S CONTRACTORS IN GENERAL, AND FOR THE BUILDING CONTRACTORS' ASSOCIATION, WITH PARTICULAR REGARD BOTH TO THE SKILLS OF MANAGEMENT DISPLAYED BY THE DIRECTORS, PRINCIPALS AND SENIOR STAFF OF CONTRACTING FIRMS ON THE ONE HAND AND THE PRODUCTIVITY OF A HARD-WORKING LABOUR FORCE ON THE OTHER, HE SAID.

MR MCDONALD SAID HE WAS AWARE OF THE HIGH COST OF LABOUR, WHOSE WAGES HAVE INCREASED STEAD.... OVER RECE YEARS. AND OF THE NECESSITY OF FINDING A HAPPY BALANCE RETWEET ONTINUED DEPENDENCE ON LABOUR AND THE INTRODUCTION OF A GREATER DEGREE OF MECHANISATIC INTO CONSTRUCTION PROCESSES.

/MECHANISATE ON