XN000022-1990-01-10 — Page 24

WEDNESDAY, JANUARY 10, 1990

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MORE FUNDS URGED FOR PRODUCTIVITY COUNCIL

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THE HON JAMES TIEN TODAY (WEDNESDAY) URGED THE GOVERNMENT ΤΟ INCREASE THE FUNDINGS FOR THE HONG KONG PRODUCTIVITY COUNCIL, WHICH WOULD HELP DIRECTLY AND INDIRECTLY TO DEMONSTRATE CONFIDENCE IN THE

INDUSTRY OF HONG KONG.

TABLING THE ANNUAL REPORT OF THE HONG KONG PRODUCTIVITY COUNCIL IN THE LEGISLATIVE COUNCIL, MR TIEN SAID THERE WAS AN URGENT NEED FOR THE HRPC TO UPGRADE ITS CAPACITY то SUPPORT INDUSTRY, IN PRODUCTIVITY ENHANCEMENT, TECHNOLOGY TRANSFER AND VALUE ADDED PRODUCTION.

"WHAT INDUSTRY NEEDS IS A STRONGER HUMAN RESOURCES AND TECHNOLOGY BASE THAT WILL ENABLE HONG KONG TO BUILD A NEW COMPARATIVE ADVANTAGE IN TECHNOLOGY AND MANAGEMENT INTENSIVE MANUFACTURING, HE SAID.

MR TIEN POINTED OUT THAT THE SO-CALLED NON-INTERVENTIONISM IN THE '70S AND '80S WAS OUTDATED AND THE TENDENCY OF GOVERNMENTS IN THE OTHER "LITTLE DRAGONS" WAS TO GIVE ACTIVE SUPPORT TO THEIR INDUSTRIES.

HE SAID HONG KONG INDUSTRY HAD BEEN THREATENED BY SOUTHEAST ASIAN COUNTRIES WHICH HAD TRIED TO ATTRACT LOCAL INVESTORS WITH THEIR CHEAP LABOUR COSTS, WHICH WOULD MEAN HIGHER PROFITS.

COUPLED WITH POLITICAL UNCERTAINTY FOLLOWING THE JUNE 4 EVENTS IN CHINA, THESE COUNTRIES HAD BECOME INCREASINGLY POPULAR FOR HONG KONG INDUSTRIAL INVESTMENT AND THE IMPACT OF RELOCATION OF INDUSTRIAL INVESTMENT WOULD OBVIOUSLY BE FELT SHOULD INDUSTRIALISTS CHOOSE TO DIVERSIFY THEIR CAPITALS, HE ADDED.

BUT, FROM THE CURRENT

ALLOCATION OF RESOURCES, IT APPEARED THAT THE GOVERNMENT FAILED TO GIVE RECOGNITION TO THE CHALLENGES WERE NOW CONFRONTING HRPC. HE SAID.

THAT

MR TIEN NOTED THAT THE TOTAL PROVISION FOR 1989-90 OF $96 MILLION WAS AN INCREASE OF A MERE $5 MILLION FROM PREVIOUS YEAR. BUT IT WAS ACTUALLY A "DECREASE" OF $3.5 MILLION IN REAL TERMS.

HE SAID WITH HKPC TAKING ON AN EXPANDED ROLE TO HELP INDUSTRY TO MEET FUTURE CHALLENGE FROM NEIGHBOURING COUNTRIES, HELP FIGHT POLLUTION AND MAINTAIN ITS EXPERIENCED STAFF FROM BEING ATTRACTED TO OTHER INSTITUTIONS WHICH COULD OFFER BETTER REMUNERATION PACKAGE, IT WOULD BE NECESSARY FOR THE GOVERNMENT TO ALLOCATE MORE RESOURCES ΤΟ THE COUNCIL.

IN REVIEWING THE ACHIEVEMENTS OF THE HKPC IN THE PAST YEAR, MR TIEN SAID IT WAS A YEAR OF CONTINUED PROGRESS WITH SUSTAINED GROWTH IN DEMAND FOR SERVICES.

FEE INCOME DERIVED FROM SERVICES DURING THE YEAR INCREASED BY 28 PER CENT OVER 1987-88. HE NOTED.

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