XN000022-1987-03-22 — Page 2

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SUNDAY, MARCH 22, 1987

PRODUCTIVITY GROWTH OF FOOTWEAR INDUSTRY HIGHLIGHTED

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THE DIRECTOR OF INDUSTRY, MR K.Y. YEUNG, SAID HONG KONG'S FOOTWEAR INDUSTRY HAS SEEN CONSIDERABLE GROWTH IN PRODUCTIVITY OVER THE PAST 10 YEARS.

SPEAKING AT THE SWEARING-IN CEREMONY OF THE NEW BOARD OF DIRECTORS OF THE HONGKONG RUBBER AND FOOTWEAR MANUFACTURERS' ASSOCIATION LIMITED, MR YEUNG SAID THE GROWTH RATE IN REAL OR CONSTANT PRICE TERMS OF DOMESTIC EXPORT OF FOOTWEAR OVER THE 10 YEARS FROM 1977 TO 1986 HAS BEEN NEARLY 104 PER CENT.

+THIS, TAKEN TOGETHER WITH THE FACT THAT THE NUMBER OF FACTORIES AND WORKERS IN 1986 HAS REMAINED MORE OR LESS AT THE SAME LEVEL AS IN 1977, MUST MEAN THAT THE FOOTWEAR INDUSTRY HAS UNDERGONE SUBSTANTIAL GROWTH IN PRODUCTIVITY, AND IT WOULD BE FAIR TO SAY THAT EACH WORKER IN THE INDUSTRY HAS MORE THAN DOUBLED HIS OUTPUT OVER THE PAST 10 YEARS, HE SAID.

THE DIRECTOR SAID THE GROWTH COULD BE ATTRIBUTED TO TWO FACTORS.

+ CLEARLY, THE INDUSTRY IS INDEBTED TO A MORE EDUCATED AND BETTER TRAINED WORK-FORCE, THANKS TO THE GOVERNMENT'S SUBSTANTIAL INVESTMENT IN THE EXPANSION OF EDUCATION AND MANPOWER TRAINING OVER THE PAST 10 YEARS.

+ BUT, SECONDLY, THE GROWTH OF PRODUCTIVITY IN YOUR INDUSTRY ALSO OWES ITSELF TO SUBSTANTIAL INVESTMENT AND RE-INVESTMENT IN PRODUCTION MACHINERY, PARTICULARLY THE KIND OF MACHINERY WHICH ENABLES YOU TO AUTOMATE YOUR PRODUCTION, TO BROADEN THE RANGE OF YOUR OUTPUT IN RESPONSE TO DEMAND, AND TO ATTAIN HIGH LEVELS OF QUALITY,+ HE SAID.

THE FOOTWEAR INDUSTRY, ONE OF THE OLDEST INDUSTRIES IN

HONG KONG, DATES BACK TO THE 1940'S.

IN 1967 THERE WERE 280 FOOTWEAR FACTORIES IN HONG KONG, EMPLOYING 11 700 WORKERS AND EXPORTING $219 MILLION WORTH OF GOODS IN THAT YEAR. TEN YEARS LATER, THE NUMBER OF FACTORIES HAS INCREASED TO 620, EMPLOYING IN 1977 SOME 8 900 WORKERS AND EXPORTING GOODS WORTH $365 MILLION. WHILE THE NUMBER OF FACTORIES DECREASED SLIGHTLY TO 557 IN 1986 AND EMPLOYMENT REMAINED MORE OR LESS AT THE SAME LEVEL AS 10 YEARS AGO (8 186), EXPORTS HAD RISEN TO $1 200 MILLION LAST YEAR.

THE DIRECTOR WARNED THE INDUSTRY HOWEVER TO GUARD ITSELF

AGAINST COMPLACENCY.

HE SAID THAT ALTHOUGH THE INDUSTRY WAS NOT IMMEDIATELY THREATENED BY PROTECTIONISM, IT WAS OPERATING IN A HIGHLY COMPETITIVE ENVIRONMENT AND THERE WAS SCOPE FOR FURTHER GROWTH IN PRODUCTIVITY AND FURTHER IMPROVEMENT IN QUALITY.

AR YEUNG