XN000022-1988-05-04 — Page 9

7

WEDNESDAY, MAY 4, 1988

"AS REGARDS PRODUCTIVITY, THE HONG KONG PRODUCTIVITY COUNCIL IS ALREADY PROVIDING CONSULTANCY SERVICES ON AUTOMATION SYSTEMS, AND WILL SOON BE OPENING UP LABORATORY SERVICES ON THE AUTOMATION OF PRINTED CIRCUIT BOARD PRODUCTION, MR JACOBS SAID.

"

"RESEARCH IS BEING UNDERTAKEN BY THE TWO UNIVERSITIES IN THE AUTOMATION OF THE DESIGN OF MOULDS AND DIES," HE ADDED.

MR JACOBS NOTED THAT THE COUNCIL WAS HELPING TO SPREAD THE USE OF COMPUTER AIDED DESIGN AND MANUFACTURING TECHNIQUES MORE WIDELY.

RESPONDING TO A SUGGESTION THAT ADDITIONAL SUPPORT SHOULD BE PROVIDED TO LOCAL INDUSTRY THROUGH AN INCREASE IN CAPITAL ALLOWANCES FOR EXPENDITURE ON THE PROVISION OF PLANT AND MACHINERY, THE FINANCIAL SECRETARY NOTED THAT IN 1987 THERE WAS NO RELUCTANCE ON THE PART OF MANUFACTURERS TO INVEST.

"I DO NOT BELIEVE THAT THE SELECTIVE INDUCEMENT OF AN INCREASE IN CAPITAL ALLOWANCES IS WHAT IS NEEDED AT THIS TIME, HE SAID.

"T CONSIDER THAT THE REDUCTION PROPOSED IN THE RATE OF TAX ON CORPORATE PROFITS WILL PROVIDE APPROPRIATE AND PROPER ENCOURAGEMENT TO ALL THOSE IN BUSINESS.'

ON THE QUESTION OF FUNDS FOR IMPLEMENTING THE RECOMMENDATIONS OF THE COMMITTEE ON SCIENCE AND TECHNOLOGY, MR JACOBS SAID THAT WHEN PROJECTS AND POLICIES WERE IDENTIFIED AND MERITED IMPLEMENTATION, THE RELEVANT DEPARTMENTS WOULD SEEK FUNDS IN THE NORMAL WAY.

THE FINANCIAL SECRETARY SAID THE IDB HAD RECENTLY ENDORSED RECOMMENDATIONS THAT AN URBAN MULTI-STOREY TECHNOLOGY CENTRE SHOULD BE ESTABLISHED.

"HOWEVER, IT 15 ESSENTIAL THAT THIS INITIATIVE IS WELL THOUGHT THROUGH, THAT THE FACILITY IS TAILORED TO HONG KONG'S NEEDS, AND THAT THE LONG-TERM COMMITMENT REQUIRED TO SUPPORT IT IS FULLY AND RECOGNISED," HE SAID.

MR JACOBS AGREED THAT THERE WAS A NEED TO DO INVESTMENT IN HONG KONG, PARTICULARLY ΤΟ ACHIEVE TECHNOLOGY.

IT WAS DIFFICULT BEING DEVOTED TO THIS.

ΤΟ SAY WHETHER SUFFICIENT

UNDERSTOOD

MORE ΤΟ PROMOTE THE TRANSFER OF

RESOURCES WERE

"I

"BUT WE ARE STRENGTHENING OUR EFFORTS IN THIS FIELD, HE SAID.

"IN 1988-89, THE BUDGET FOR THESE ACTIVITIES IS ABOUT 15 PER CENT UP, AND PROVIDES FOR THE IMPLEMENTATION OF A NUMBER OF PROPOSALS FOR IMPROVING AND EXPANDING OUR INWARD INVESTMENT PROMOTION PROGRAMME.

"1 FULLY ACCEPT THAT WE NEED TO CONTINUE TO IMPROVE THE QUALITY OF OUR INVESTMENT PROMOTION ACTIVITIES IN THE FACE OF INCREASING WORLDWIDE COMPETITION."

/8