XN000022-1985-03-28 — Page 2

THURSDAY, MARCH 28, 1985

BORDER INDUSTRIAL ZONE IDEA OPPOSED

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THE HON K.C. CHAN VOICED HIS OBJECTION IN THE LEGISLATIVE COUNCIL TODAY TO THE SUGGESTION OF SETTING UP A BORDER INDUSTRIAL ZONE USING CHEAP LABOUR FROM CHINA.

SPEAKING AT THE ANNUAL BUDGET DEBATE, MR CHAN SAID THAT SINCE THE POST-WAR YEARS, BOTH THE LABOUR DEPARTMENT, THE LABOUR ADVISORY BOARD AND ITS VARIOUS COMMITTEES AND SUB-COMMITTEES HAD LABOURED UNCEASINGLY TO GET RID OF THE IMAGE OF CHEAP LABOUR AND SWEATSHOP FOR HONG KONG.

+ IF WE NOW ANNOUNCE A CHEAP LABOUR ZONE IN HONG KONG WE SHALL NOT BE POINTING OUR SWORD TOWARDS THE PROTECTIONISTS BUT GIVE THEM THE HANDLE SO THAT THEY CAN FINISH US OFF WITH THE ACCUSATION OF DUMPING AND UNFAIR COMPETITION, HE SAID.

MR CHAN SAID HE WAS ALL FOR RENEWED EFFORTS FOR NEGOTIATION THROUGH THE PROPER CHANNELS TO SOLVE THE PROBLEMS FACED BY OUR EXPORTS TO THE UNITED STATES OF AMERICA, OUR LARGEST CONSUMER.

WE MUST BE SURE THAT OUR PRODUCTS WERE TRULY HONG KONG MADE OR OF AN AGREED PERCENTAGE LIKE JAPANESE CAR PARTS SENT TO FOREIGN COUNTRIES FOR ASSEMBLY BEFORE THEY WERE ACCEPTED AS LOCAL CARS MADE IN THAT COUNTRY, HE ADDED.

HE WAS SURE THAT THE HONG KONG PRODUCTIVITY COUNCIL COULD COME UP WITH SOME LABOUR-SAVING AND COST-REDUCING AUTOMATION METHODS TO HELP THE INDUSTRY IN QUESTION.

TURNING TO THE CIVIL SERVICE, HE SAID THE INCREASE IN ITS SIZE MIGHT BE DUE TO THE INCREASE IN THE TYPES AND VOLUME OF ACTIVITIES.

+HOWEVER, WE SHOULD NOT BE COMPLACENT OR START MAKING EXCUSES BUT WE SHOULD REVIEW ALL THE ACTIVITIES AND CUT OUT THOSE WHICH ARE NOT COST-EFFECTIVE OR OF MARGINAL VALUE, + HE SAID.

HE STRESSED THAT EVERY OPPORTUNITY SHOULD BE TAKEN TO USE NATURAL STAFF WASTAGE, SUCH AS RETIREMENT, RESIGNATION, AND HIVE-OFF TO CUT DOWN GRADUALLY THE ACTUAL STRENGTH TO ONE COMMENSURATE WITH POPULATION GROWTH.

TURNING TO THE PROPOSED TAXATION MEASURES, MR CHAN SAID THAT A HEAVIER TAX ON CIGARETTES MIGHT BE A BLESSING IN DISGUISE FOR THE SMOKERS.

IN ADDITION TO THE HARMFUL HEALTH EFFECTS OF SMOKING WHICH HE HAD PREVIOUSLY SPOKEN OF, MR CHAN SAID, THERE WERE ALSO THE ECONOMIC EFFECTS OF SMOKING ON THE FAMILY AND THE COMMUNITY.

/MR CHAN