XN000022-1983-10-27 — Page 7

THOROS.

27, 1983

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CONCERN FELT OVER LABOUR LEGISLATION GROWTH

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THE PROSPECT OF MORE LABOUR LEGISLATION WHICH MAY HAVE THE EFFECT OF INCREASING PRODUCTION COSTS, CONTINUED TO BE A MAJOR CONCERN TO MANUFACTURERS, THE HON STEPHEN CHEONG SAID TODAY (THURSDAY).

ANOTHER MATTER OF CONCERN WAS THE NEVER-ENDING UPWARD REVISION OF ENERGY BASIC TARIFFS,+ HE SAID,

SPEAKING ON THE MOTION OF THANKS FOR THE GOVERNOR'S ANNUAL ADDRESS. MR CHEONG SAID THAT NO RESPONSIBLE MANUFACTURER WOULD COMPLAIN ABOUT THE EFFECT ON PRODUCTION COSTS OF INDUSTRIAL SAFETY LEGISLATION.

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HOWEVER, HE ADDED, BUT THE GROWING BODY OF LABOUR LEGISLATION, INVOLVING AS IT DOES A VARIETY OF CASH PAYMENTS AND NON-CASH BENEFITS, HAS THE EFFECT OF REDUCING INFLOW AND SUPPLY OF LABOUR, AND THE CUMULATIVE EFFECT OF THE LEGISLATION LEADS ONLY ONE WAY TOWARDS INCREASING PRODUCTION COSTS.+

HE ALSO QUESTIONED THE NOTION OF EXPANDING THE SCOPE AND INCREASING THE RATES OF SEVERANCE PAY IN A PERIOD OF UNCERTAIN AND AS YET UNSUSTAINED RECOVERY.+

+ SAY THIS BECAUSE ANY INCREASE IN LABOUR OVERHEADS REQUIRED BY LAW WOULD RESULT NOT ONLY IN PROFIT MARGINS BEING SQUEEZED, BUT MORE IMPORTANTLY IN MANUFACTURERS HAVING TO TAKE A MUCH MORE AUSTERE VIEW ABOUT EMPLOYING MORE WORKERS AND ABOUT GRANTING INCREASES IN REAL WAGES.

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+ULTIMATELY, IT IS THE WORKERS WHO MIGHT LOSE OUT, + HE SAID.

+I HOPE THAT BEFORE THE ADMINISTRATION INTRODUCES INTO THIS COUNCIL ITS PROPOSALS FOR EXPANDING THE SCOPE AND INCREASING THE RATE OF SEVERANCE PAY, VERY CAREFUL CONSIDERATION WILL HAVE BEEN GIVEN, FIRST, TO THE CUMULATIVE EFFECT ON PRODUCTION COSTS OF LABOUR LEGISLATION ALREADY IN FORCE AND THE EXTENT TO WHICH THIS PARTICULAR MEASURE ADDS TO SUCH COSTS- SECOND, TO THE TIMING OF THE INTRODUCTION OF THIS MEASURE IN RELATION TO THE FORESEEABLE GROWTH PATH OF THE ECONOMY AND. THIRD, TO WHETHER THIS MEASURE WOULD NOT ULTIMATELY REDOUND TO THE DISADVANTAGE OF EMPLOYEES,+ HE ADDED.

HE SAID HE HOPED THAT THE ADMINISTRATION WOULD UNDERTAKE VERY FULL CONSULTATIONS ON THE PRINCIPLES INVOLVED IN THE PROPOSED LEGISLATION AND ITS DETAILED PROVISIONS.

IN CONTRAST TO LABOUR LEGISLATION, MR CHEONG SAID GOVERNMENT'S MONITORING OF THE ACTIVITIES OF THE TWO POWER COMPANIES WAS +PRIMA FACIE LIGHT-WEIGHT+,

+GIVEN THE DEEP DISSATISFACTION THAT HAS BEEN EXPRESSED OVER TARIFF INCREASES DESPITE THE POWER COMPANIES' RECORD PROFIT YEAR AFTER YEAR, AND THE EVEN DEEPER RESENTMENT WITH THE NOTION THAT CONSUMERS SHOULD PAY WELL IN ADVANCE FOR ADDITIONAL GENERATING CAPACITY. PUBLIC OPINION APPEARS TO BE HIGHLY CRITICAL OF THE COMPLACENT RELATIONSHIP BETWEEN THE GOVERNMENT AND THE POWER COMPANIES, WHILE DISCOUNTING THE FACT THAT THEY MAY BE EFFICIENT ENTERPRISES.