XN000022-1987-03-05 — Page 4

THURSDAY, MARCH 5, 1987

AS FOR SERVICES TO ENHANCE_PRODUCTIVITY, MR JACOBS SAID THESE WERE PROVIDED MAINLY, THOUGH NOT EXCLUSIVELY, BY THE HONG KONG PRODUCTIVITY COUNCIL, IN THE FORM OF MANAGEMENT AND TECHNICAL CONSULTANCY SERVICES AND BUREAU SERVICES.

IN ORDER TO PROMOTE HIGHER QUALITY PRODUCTS, THE INDUSTRY DEPARTMENT WAS PROVIDING SERVICES WHICH INVOLVED THE ATTAINMENT OF INTERNATIONALLY RECOGNISED STANDARDS, CALIBRATION SERVICES AND LABORATORY ACCREDITATION.

EFFORTS WERE ALSO BEING MADE TO ATTRACT MORE INVESTMENT IN INDUSTRY INTO HONG KONG.

+WE ARE IMPROVING OUR MECHANISMS FOR TARGETTING FOREIGN MANUFACTURING FIRMS, DEVELOPING CONTACTS WITH FOREIGN INDUSTRIAL ORGANISATIONS AND REINFORCING OUR INDUSTRIAL PROMOTION OFFICES LOCATED OVERSEAS.+

MR JACOBS EMPHASISED THAT ALTHOUGH GOVERNMENT HAD BEEN DOING MUCH TO ASSIST THE MANUFACTURING SECTOR IN THE PROVISION OF INDUSTRIAL DEVELOPMENT SERVICES AND INFRASTRUCTURAL SUPPORT SERVICES, THERE WAS NO INTENTION TO DISRUPT THE MECHANISM OF THE MARKET FORCE.

+THE BASIC PHILOSOPHY OF THE GOVERNMENT HAS BEEN TO ALLOW MARKET FORCES TO DETERMINE THE DIRECTION TAKEN BY OUR INDUSTRY.

+WE HAVE NEVER ATTEMPTED TO DECIDE FOR BUSINESSMEN WHAT TYPE OF INDUSTRY SHOULD BE ESTABLISHED, WHAT SORT OF BUSINESS INVESTMENT SHOULD BE MADE, OR WHICH MARKETS SHOULD BE OPENED UP.

+WE FIRMLY BELIEVE THAT SUCH BUSINESS DECISIONS ARE BEST TAKEN BY BUSINESSMEN RATHER THAN GOVERNMENT OFFICIALS AND THAT BUSINESSMEN SHOULD BE ALLOWED TO OPERATE IN A FREE MARKET ECONOMY HE SAID.

STRESSING THAT THE MANUFACTURING INDUSTRY WAS THE LINCH-PIN OF HONG KONG'S ECONOMIC PROGRESS - ACCOUNTING FOR SOME 22 PER CENT OF GROSS DOMESTIC PRODUCT AND ABOUT 33 PER CENT OF TOTAL EMPLOYMENT HE SAID IT WAS THE RESPONSIBILITY OF THE GOVERNMENT TO ENSURE THAT A FAVOURABLE ENVIRONMENT EXISTED TO ALLOW INDUSTRY TO FUNCTION EFFICIENTLY AND PROFITABLY.

+THIS HAS BEEN THE BASIC TENET OF OUR INDUSTRIAL DEVELOPMENT

POLICY IN THE PAST THREE DECADES, HE SAID.

OUTLINING THE HISTORY OF SUCH POLICY DEVELOPMENT MR JACOBS SAID A NUMBER OF STATUTORY BODIES HAD BEEN ESTABLISHED IN THE 1960'S TO PROVIDE INSTITUTIONAL SUPPORT FOR INDUSTRY.

THESE INCLUDED