XN000022-1987-05-06 — Page 4

WEDNESDAY, MAY 6, 1987

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ROLE OF PRIMARY INDUSTRIES IN HK AFFIRMED

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THE GOVERNMENT'S POLICY OF SUPPORTING HONG KONG'S PRIMARY INDUSTRIES WITHOUT DIRECT SUBSIDY HAS SERVED THE INDUSTRIES VERY WELL, THE ACTING FINANCIAL SECRETARY, THE HON JOHN YAXLEY, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THE GOVERNMENT FULLY INTENDED THAT PRIMARY INDUSTRIES SHOULD CONTINUE TO PLAY AN ACTIVE ROLE IN THE ECONOMY, MR YAXLEY ADDED.

WINDING UP THE ADJOURNMENT DEBATE ON PRIMARY INDUSTRIES. MR YAXLEY SAID THE GOVERNMENT FULLY RECOGNISED THE CONTRIBUTION THAT FARMERS AND FISHERMEN MADE TO THE LOCAL ECONOMY.

MR YAXLEY SAID: THE GOVERNMENT DOES NOT GIVE DIRECT SUBSIDIES TO THE PRIMARY INDUSTRIES, NOR DOES IT SEEK TO PROTECT THEM FROM THE FREE OPERATION OF MARKET FORCES.

+ INSTEAD, THE GOVERNMENT PROVIDES INFRASTRUCTURAL AND TECHNICAL SUPPORT NECESSARY FOR THE DEVELOPMENT OF FARMING AND FISHERIES AND LEAVES THEM TO ADJUST TO MARKET FORCES.+

AS POINTED OUT, THE HON LAU WONG-FAT, MR YAXLEY SAID THE INDUSTRIES WERE MOVING TOWARDS HIGH QUALITY PRODUCTION WHILE MAINTAINING A SIGNIFICANT SHARE OF LOCAL FOOD SUPPLY.

THE INCOME GENERATED BY AGRICULTURE AND FISHERIES IN 1985 WAS $1.25 BILLION, MR YAXLEY SAID, ADDING THAT +THIS IS NO SMALL ACHIEVEMENT GIVEN THE RELATIVE SIZE OF THE PRIMARY SECTOR+.

THIS SECTOR CONTRIBUTED ABOUT ONE PER CENT TO THE GDP WHICH WAS NOT OUT OF LINE WITH OTHER COUNTRIES, DEVELOPED OR DEVELOPING, HE SAID.

ON A SUGGESTION BY THE HON WONG PO-YAN THAT FAMILY OPERATIONS SHOULD BE TURNED INTO ENTERPRISING CORPORATIONS TO PRODUCE HIGH VALUE PRODUCTS, MR YAXLEY REPLIED THAT THE AGRICULTURE INDUSTRY WAS INDEED MOVING IN THIS DIRECTION.

IN 1986, THE FARM POPULATION WAS 26 000, AND ARABLE LAND AMOUNTED TO 9 450 HECTARES, WHICH RESPECTIVELY REPRESENTED A DECREASE OF 23 PER CENT AND 29 PER CENT OVER 1971, HE SAID.

+YET, THE VALUE OF LOCAL AGRICULTURAL PRODUCTION HAS INCREASED BY 31 PER CENT BETWEEN 1971 AND 1986, AND THE LOCAL SUPPLIES OF AGRICULTURAL PRODUCTS CONTINUE TO REPRESENT A SIGNIFICANT SHARE OF THE MARKET. THE MARKET SHARES BY LOCALLY PRODUCED VEGETABLES, POULTRY AND PIGS ARE RESPECTIVELY 34 PER CENT, 40 PER CENT AND 17 PER CENT.+

A RANGE OF TECHNICAL ADVICE AND FIELD SERVICES WAS BEING OFFERED TO THE FARMING INDUSTRY WHICH FOCUSED ON AREAS SUCH AS FARM MANAGEMENT, USE OF SPRINKLER IRRIGATION SYSTEM, ROTARY CULTIVATORS, DRAINAGE IMPROVEMENTS, ANIMAL HEALTH CARE AND EFFECTIVE USE OF PEST CONTROL DEVICES, MR YAXLEY SAID.

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