XN000022-1987-01-14 — Page 23

WEDNESDAY, JANUARY 14, 1987

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GOVERNMENT MUST MAINTAIN INDUSTRIAL VITALITY

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REVENUES FROM INDUSTRIES WILL REMAIN HONG KONG'S MAJOR SOURCE OF INCOME AND IT IS THE GOVERNMENT'S RESPONSIBILITY TO MAINTAIN THE VITALITY OF THESE INDUSTRIES, THE HON HO SAI-CHU SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING DURING THE ADJOURNMENT DEBATE ON THE DEVELOPMENT OF INDUSTRY, MR HO SAID THAT ACCORDING TO THE FINDINGS OF A SURVEY PRODUCTION COSTS IN HONG KONG HAD INCREASED BY 4.4 PER CENT DURING 1977-83 DUE TO THE INTRODUCTION OF VARIOUS ITEMS OF LABOUR LEGISLATION.

HE ENVISAGED THAT FURTHER INCREASES IN PRODUCTION COSTS WERE LIKELY FOLLOWING THE FORMULATION AND IMPLEMENTATION OF ENVIRONMENTAL PROTECTION LEGISLATION.

MR HO SAID HE DID NOT OBJECT TO THE PROVISION OF ADEQUATE MEASURES TO SAFEGUARD WORKERS' INTERESTS AND ALSO AGREED THAT THERE WAS A NEED TO PAY FOR THE PROTECTION OF THE NATURAL AND ECOLOGICAL ENVIRONMENT.

HOWEVER, HE FEARED THAT THESE WOULD INEVITABLY INCREASE THE BURDEN BORNE BY THE INDUSTRIAL SECTOR.

+ IF THE GOVERNMENT IMPOSED ALL SORTS OF RESTRICTIONS WITHOUT CONCURRENTLY GIVING ACTIVE SUPPORT, HONG KONG'S INDUSTRIES, ESPECIALLY THE SMALL AND MEDIUM-SIZED FACTORIES, WILL FACE MORE DIFFICULTIES, + HE SAID.

HE SAID IT WOULD BE DIFFICULT TO URGE ENTREPRENEURS TO MAKE FURTHER INVESTMENTS IF THEY FELT THAT THEIR PROFITS WERE AT STAKE.

+WHEN THE DESIRE OF ENTREPRENEURS FOR INVESTMENT SUBSIDES AND PEOPLE ARE UNDEREMPLOYED, OUR PROSPERITY WILL BE HARD HIT AND ALL WELL-INTENTIONED IDEAS WILL TURN OUT TO BE DETRIMENTAL TO HONG KONG'S OVERALL INTEREST, HE SAID.

MR HO SAID HE DISAGREED WITH SOME VIEWS THAT THE GOVERNMENT WAS INDIFFERENT TO THE NEEDS OF THE INDUSTRIAL SECTOR, SAYING THAT THE GOVERNMENT HAD IN FACT PROVIDED VARIOUS BACK-UP SERVICES THROUGH THE INDUSTRY DEPARTMENT, THE HONG KONG PRODUCTIVITY COUNCIL AND TERTIARY EDUCATION INSTITUTIONS.

HOWEVER, HE QUESTIONED WHETHER THESE EFFORTS WERE SUFFICIENT AND WHETHER THE OTHER MEASURES TAKEN WERE EFFECTIVE ENOUGH.

MR HO SAID THAT CURRENT RESEARCH STUDIES AND EXISTING SUPPORT FACILITIES RELATED MAINLY TO ESTABLISHED INDUSTRIES.

HE FELT THE GOVERNMENT WAS NOT TAKING POSITIVE MEASURES TO INTRODUCE NEW INDUSTRIAL ITEMS AND TO EXPAND THE INDUSTRIAL BASE SO AS TO DEVELOP INDUSTRY.

/HE POINTED