XN000022-1995-02-22 — Page 23

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These two labour importation schemes have been carefully devised taking fully into consideration both the labour shortage problem in our economy, and the need to protect the interests of our local labour force. There are a number of basic principles under the present schemes which we seek to enforce. First, the principle of demand. Employers must prove they cannot recruit locally before importing. Second, the principle of parity. Imported workers must be paid at least the medium wage of local workers and subject to similar conditions of service. Third, the principle of relevance. The imported workers must have relevant experience and skill for the jobs they fill. Apart from these fundamental policies devised carefully, we do undertake regular reviews over the years to ensure that these policies are working to the best interests of our economy and the various sectors affected. These administrative schemes have been running smoothly and given a very high degree of transparency. We have kept this Council informed regularly through the Manpower Panel and consulted Members whenever we intended to make any changes to the arrangements under the schemes. Examples of this are the calculation criteria of the quota allocation system. I must stress that we have fully taken into account the views expressed by LegCo Members, employers and employees and practicable proposals have been subsequently incorporated to meet concerns and changing circumstances. The Government's labour importation policy has thus been closely monitored by this Council throughout the past years. There have been no major problems which warrant such a drastic change to the existing system. The Government must be allowed the necessary flexibility to meet changing needs while ensuring that LegCo is kept fully informed and consulted, and remain open always to suggestions for views from LegCo.

These importation schemes are vital to the sustained growth in our economy. They help to relieve the temporary bottlenecks in our labour market and assist in our efforts to contain inflation. It is of vital importance that these be maintained as administrative schemes. Only in this way can we ensure flexibility exists. Mr Ho's Bill which codifies the arrangements under which foreign workers are allowed to enter HK for employment purposes, will effectively constrain our ability to respond rapidly to support our economy's need for manpower to sustain growth. Furthermore, the Bill does not spell out clearly what exactly will be included in the subsidiary legislation. This will give rise to a lot of confusion and controversies in the drafting of the subsidiary legislation. If the Bill were passed, renewal of the quotas under our on- going labour importation schemes will have to come to an abrupt stop until subsidiary legislation acceptable to LegCo has been drawn up and become effective. In the meanwhile, the Hong Kong economy as a whole would thus be seriously affected. In particular those particular industries and companies which need to use the schemes to maintain the operation of their business will be seriously affected. This would not benefit the interest of those whom the supporters of this Bill are trying to safeguard.

Under the General Scheme, which aims to relieve the limiting effects of labour shortage on sustained growth in certain sectors, the lack of imported workers will actually result in unemployment for local workers.