XN000022-1990-07-04 — Page 4

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WEDNESDAY, JULY 4, 1990

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DAMAGING

"WE MUST THEREFORE LOOK TO THE LONGER TERM TO SEE HOW THE LABOUR SHORTAGE MIGHT BE FOR THE GROWTH PROSPECTS OF OUR ECONOMY.

HALF

**

THE SECOND MR YEUNG SAID THE GROWTH RATE OF LABOUR SUPPLY IN

NIL IN OF THE 1980'S HAD DECLINED FROM 2.8 PER CENT IN 1986 TO

CONTINUE INTO THE

1989, AND THIS TREND OF DECLINE WAS EXPECTED TO

1990'S AND BEYOND.

RATE IN THE 1996, 0.8 THE FIRST

"OUR FORECAST IS FOR AN ANNUAL AVERAGE GROWTH LABOUR SUPPLY OF ABOUT 1.1 PER CENT IN THE PERIOD 1991 TO PER CENT IN THE SECOND HALF OF 1990S, AND 0.5 PER CENT IN FIVE YEARS OF THE NEXT DECADE.

TENDENCY LABOUR

NOTABLY IMPROVED "THIS IS ATTRIBUTABLE TO A VARIETY OF FACTORS, EDUCATIONAL OPPORTUNITIES, RISING INDIVIDUAL AFFLUENCE AND A ΤΟ RETIRE EARLIER, ALL OF WHICH HAVE THE EFFECT OF DEPRESSING FORCE PARTICIPATION RATES," HE SAID,

LABOUR,

TRAINING,

AND BY

MR YEUNG NOTED THAT SOME MEMBERS HAD ARGUED THAT INVESTORS

RELIANCE ON EMPLOYERS

REDUCING THEIR SHOULD CONSIDER INVESTING IN PRODUCTIVITY GROWTH, MECHANISATION. VOCATIONAL AND SO ON.

MEMBERS HAVE

"WE CERTAINLY SUPPORT SUCH MOVES AND, AS OTHER QUITE RIGHTLY POINTED OUT, A GREAT DEAL OF INVESTMENT HAS ALREADY GONE INTO THESE AREAS OF IMPROVEMENT.

AND

MACHINERY "AT THE END OF 1988 THE LEVEL OF RETAINED IMPORTS OF

THAT IN EQUIPMENT FOR USE IN MANUFACTURING WAS MORE THAN DOUBLE

IN MANUFACTURING 1983,

AND THROUGHOUT THE 1980S LABOUR PRODUCTIVITY

HE SAID. ALONE HAS GROWN BY ABOUT 10 PER CENT A YEAR,

HOWEVER,

MR YEUNG EMPHASISED THAT IN SPITE OF THESE IMPRESSIVE LABOUR RECORDS, THE FACT THAT HONG KONG'S INDUSTRIES WERE RELATIVELY INTENSIVE HAD TO BE RECOGNISED,

SHIFT

FROM MANUFACTURING

ΤΟ

THE

"INDEED, THE CONTINUING SERVICES SECTOR COULD RENDER OUR ECONOMY EVEN MORE DEPENDENT ON LABOUR THAN IS THE CASE AT PRESENT.

FOR THE OUR INDUSTRIES

"IN

ALL THE CIRCUMSTANCES, CONTINUING HEALTHY GROWTH ECONOMY, THE KEY TO PROSPERITY, DEPENDS ON OUR GIVING THE WHEREWITHAL TO INCREASE THEIR PRODUCTIVE CAPACITY.

"THERE ARE LIMITS TO WHICH OUR INDUSTRIES CAN FURTHER INVEST IN NECESSARY ΤΟ NEW PLANT, MACHINERY AND IMPROVED PROCESSES, AND IT IS RECOGNISE THAT FURTHER CAPITAL FORMATION MIGHT NOT TAKE PLACE IT IS ALSO COMPLEMENTED BY AN ADEQUATE SUPPLY OF LABOUR,

UNLESS

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HE SAID.

FULLY INTO ACCOUNT MUST WORK WITH A AND THAT EFFICIENTLY,

MR YEUNG SAID THE GOVERNMENT WOULD TAKE MEMBERS' VIEWS THAT LABOUR IMPORTATION SCHEMES MINIMUM OF BUREAUCRACY, WERE ADMINISTERED

WERE TAKEN TO PREVENT ADEQUATE STEPS EXPLOITING THEIR IMPORTED WORKERS.

EMPLOYERS UNSCRUPULOUS

FROM

/AT PRESENT