XN000022-1990-04-26 — Page 8

THURSDAY, APRIL 26, 1990

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IMPORTED LABOUR CAN HELP CURB INFLATION

THE ONLY WAY то CURB INFLATION IN HONG KONG IS ΤΟ CURB EXCESSIVE WAGE INCREASE, WHICH CAN BE ACHIEVED THROUGH A WELL-PLANNED LABOUR IMPORTATION PROGRAMME, THE HON JAMES TIEN, SAID IN THE LEGISLATIVE COUNCIL TODAY (THURSDAY).

SPEAKING IN THE BUDGET DEBATE, MR TIEN SAID THE LABOUR SHORTAGE SCENARIO HAD NOT CHANGED SINCE THE GOVERNMENT'S SCHEME TO IMPORT WORKERS WAS IMPLEMENTED.

THE ALLOTED QUOTA OF 3,000 IMPORTED WORKERS WAS NOT TAKEN UP AND ONLY 1,600 WERE ACTUALLY WORKING IN HONG KONG, HE SAID.

MUST

"A MUCH LARGER NUMBER THAN THIS IS NEEDED. THE GOVERNMENT

ATTEMPT TO TACKLE THIS VERY

BE MORE SINCERE AND DEDICATED IN ITS

申

SERIOUS PROBLEM, HE ADDED.

MR TIEN SAID THE GOVERNMENT

LABOUR IMPORT PROGRAMME INTENDED TO PROTECT.

DID NOT

IN FACT HURT THE

REALISE THAT A STINGY SAME WORKERS WHICH IT

MANUFACTURERS, FRUSTRATED BY THE GOVERNMENT'S INABILITY TO SOLVE THIS PROBLEM, HAD SIMPLY MOVED THEIR FACTORIES OUT OF HONG KONG,

"ONCE A MANUFACTURER'S FIRST MOVE MEETS SUCCESS, THE TREND BECOMES IRREVERSIBLE. THE MANUFACTURER NO LONGER FEELS THE NEED ΤΟ PAY TOP DOLLARS TO KEEP HIS WORKERS. HE WILL MERELY CONTINUE TO SHIFT HIS PRODUCTION ELSEWHERE, HE NOTED.

MR TIEN SUGGESTED THAT THE GOVERNMENT LOOK TO SINGAPORE FOR INSPIRATION, AND NOTED THAT IT HAD RECENTLY TAKEN STEPS TO COUNTER ITS UNEMPLOYMENT RATE OF 2.2 PER CENT BY ALLOWING A HEFTY 10 PER CENT IMPORT LABOUR QUOTA PER SECTOR.

IN ORDER TO MAINTAIN OUR COMPETITIVENESS IN INDUSTRY AGAINST THE OTHER LITTLE DRAGONS, HE SAID THE GOVERNMENT SHOULD SERIOUSLY CONSIDER IMPLEMENTING A SIMILAR SCHEME WITH SOME DEGREE OF URGENCY.

MR TIEN WAS IN SUPPORT OF WIDENING THE TAX BASE.

HOLDING THAT INDIRECT TAXATION MUST BE IN EFFECT INCREASED IN FAIR AND DUE PROPORTION, HE SAID THE 30 PER CENT INCREASE IN FUEL TAX AND THE 25 PER CENT INCREASE IN PROPERTY RATES WAS THE FIRST STEP IN THE RIGHT DIRECTION TOWARDS THE WIDENING OF OUR NARROW TAX BASE.

++

I HOPE THAT THIS WILL LEAD TO THE GRADUAL WHOLESALE SALES TAX, HE ADDED.

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