XN000022-1991-05-29 — Page 2

WEDNESDAY, MAY 29, 1991

GOVT LOOKS TO PRIVATE SECTOR TO FOLLOW LEAD TO FIGHT INFLATION

THE CHIEF SECRETARY, THE HON SIR DAVID FORD, THIS { WEDNESDAY} EVENING SAID THAT THE GOVERNMENT LOOKS TO THE PRIVATE SECTOR TO FOLLOW ITS LEAD IN TACKLING INFLATION.

SPEAKING AT A MOTION DEBATE ON INFLATION IN THE LEGISLATIVE COUNCIL, THE CHIEF SECRETARY OUTLINED WHAT THE GOVERNMENT HAD DONE то ATTACK THE PROBLEM THROUGH INTRODUCING THE IMPORTATION OF LABOUR SCHEME, BY RESTRICTING GOVERNMENT PAY AWARD AND RESTRAINING THE GROWTH OF THE CIVIL SERVICE,

SIR DAVID NOTED THAT MANY OBSERVERS HAD POINTED TO THE SHORTAGE OF LABOUR IN HONG KONG AS THE CHIEF CULPRIT FOR THE CONTINUING HIGH LEVEL OF INFLATION.

HE SAID THE LIMITED SCHEME FOR THE IMPORTATION OF LABOUR INTRODUCED BY THE GOVERNMENT LAST YEAR WAS AIMED AT RELIEVING PROVEN SHORTAGES.

HE SAID THE CURRENT SCHEME, ALSO AIMED AT RELIEVING CLEARLY IDENTIFIED SECTORAL SHORTAGES, WAS FOUND BY THE EMPLOYERS ΤΟ BE USEFUL, PARTICULARLY IN HELPING TO INCREASE THE LEVEL OF PRODUCTION AND PRODUCTIVITY.

THE GOVERNMENT WAS CURRENTLY REVIEWING THE SCHEME AND HAD YET TO DECIDE WHETHER THERE WAS A CASE FOR PROVIDING A FURTHER QUOTA THIS YEAR, SIR DAVID SAID.

"IF WE DO EXTEND THE SCHEME, WE WILL ENSURE THAT IT REMAINS TARGETTED AT AREAS OF PROVEN SHORTAGE.

"SO THE TWO MAIN FACTORS WE WILL FACTOR INTO THE REVIEW ARE THE IDENTIFICATION OF SHORTAGES IN SPECIFIC AREAS AND THE EVIDENCE NOW EMERGING OF SOME SOFTENING IN THE LABOUR MARKET AS A WHOLE," HE SAID.

THE CHIEF SECRETARY POINTED OUT THAT OVER 82 PER CENT OF THE HAD BEEN TAKEN UP AND THE REMAINING QUOTA HAD BERN RR- DISTRIBUTED.

QUOTA

"THE INCIDENCE OF ABUSE SO FAR HAS BEEN LOW. TRADE UNIONS HAVE POINTED OUT CERTAIN DIFFICULTIES IN POLICING THE SCHEME. WE WILL TAKE THESE FACTORS INTO ACCOUNT AND LOOK FOR WAYS TO IMPROVE THE WAY TAR SCHEME OPERATES, HE SAID.

DESPITE RECENT SIGNS OF EASING IN THE LABOUR MARKET, SIR DAVID SAID SERIOUS SHORTAGES STILL PERSISTED IN SOME AREAS.

THE

"WHILE THE UNEMPLOYMENT RATE HAS INCREASED FROM 1.4 PER CENT AT END OF LAST YEAR TO 1.8 PER CENT IN THE FIRST QUARTER OF THIS YEAR, VACANCIES STILL ABOUND, PARTICULARLY IN THE SERVICE INDUSTRIES AND SPECIFIC CATEGORIES OF SKILLED AND SEMI-SKILLED MANUFACTURING WORKERS, " HE SAID.

/TURNING TO