XN000022-1990-05-09 — Page 7

WEDNESDAY, MAY 9, 1990

GOVT REVIEWING POLICY ON IMPORTATION OF LABOUR

THE GOVERNMENT IS REVIEWING ITS POLICY ON THE IMPORTATION OF LABOUR, WHICH IS A DIFFICULT AND CONTROVERSIAL AREA, AND RECOMMENDATIONS ARE EXPECTED TO BE PUT TO THE EXECUTIVE COUNCIL SHORTLY, THE CHIEF SECRETARY, THE HON SIR DAVID FORD, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING IN THE RESUMED DEBATE ON THE BUDGET, SIR DAVID SAID NO FEWER THAN EIGHT MEMBERS HAD ASKED THE ADMINISTRATION ΤΟ TAKE A FRESH LOOK AT THE POLICY ON THE IMPORTATION OF LABOUR.

"ALL HAVE ARGUED THAT SINCE INFLATION IS CAUSED MAINLY BY WAGE INCREASES AS A RESULT OF AN EXCESS OF DEMAND OVER SUPPLY IN THE LABOUR MARKET, WE MUST IMPORT LABOUR SO THAT WAGES WILL NOT CONTINUE TO

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RISE, HE SAID.

GOVERNMENT'S

OUTLINING SOME OF THE FACTORS UPON WHICH THE REVIEW OF THE POLICY WAS BASED, THE CHIEF SECRETARY SAID: UNDER EXISTING POLICY THE IMPORTATION OF LABOUR IS LIMITED TO AREAS WHERE THERE ARE SHORTAGES, AND IS LARGELY CONFINED TO THE PROFESSIONAL AND MANAGERIAL LEVEL AND, TO A LIMITED EXTENT, TO TECHNICIAN, SUPERVISORY LEVELS.'

CRAFT AND

SOME

"THE FUNDAMENTAL PRINCIPLE OF THIS POLICY IS THAT PRESSURES OF DEMAND FOR LABOUR WILL BOTH ENCOURAGE EMPLOYERS TO RAISE LABOUR PRODUCTIVITY THROUGH CAPITAL INVESTMENT AND TRAINING, AND ALSO ENABLE OUR WORKERS TO UPGRADE THEMSELVES AND SHARE IN THE FRUITS OF BCONOMIC GROWTH.

"THESE OBJECTIVES ARE BEING MET TO SOME DEGREE. CLEARLY, IN THE OF OUR POLICY FOR IMPORTING LABOUR, THEY MUST NOT BE UNDULY COMPROMISED," SIR DAVID SAID.

REVIEW

NEVERTHELESS, HE SAID, THERE WAS NOW GROWING EVIDENCE THAT THE SLOW GROWTH RATE OF THE LABOUR FORCE OVER THE LONG TERM MIGHT BE POSING A SERIOUS CONSTRAINT UPON THE ABILITY OF THE ECONOMY TO GROW.

ΤΟ

"IT HAS BEEN ARGUED FORCEFULLY, MOREOVER, THAT THERE ARE LIMITS THE ADVANTAGES OF MECHANISATION, THAT IN MANY INDUSTRIES MECHANISATION AND AUTOMATION CANNOT PROVIDE AN ADEQUATE SUBSTITUTE FOR LABOUR, AND THAT IN OTHER INDUSTRIES ADDITIONAL INVESTMENT WOULD HAVE TO BE COMPLEMENTED BY AN ADEQUATE SUPPLY OF SUITABLE MANPOWER, HE ADDED.

"I

IN OUR REVIEW OF POLICY THEREFORE WE ARE ADDRESSING THE QUESTION OF HOW THESE CONSTRAINTS UPON THE GROWTH OF THE ECONOMY MIGHT BE REMOVED," SIR DAVID SAID.

THE CHIEF SECRETARY SAID THE APPROACH WOULD BE SELECTIVE. 'ASSUMING THAT A CASE CAN BE MADE FOR IMPORTING ADDITIONAL LABOUR, THE QUALITY OF ANY WORKERS BROUGHT IN MUST BE SUCH THAT IT STIMULATES INVESTMENT IN PLANT, MACHINERY AND PRODUCTIVITY."

"ΤΗΑΙ

GESTS