XN000022-1995-04-27 — Page 14

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Governor: The Honourable Member is right to say that the figures in Hong Kong even at the level of just under three per cent which he mentioned, are low by international standards. He is equally right to say that the figures recently look high by recent Hong Kong standards. I think the Honourable Member knows that it is only in the last two or three months that the figures have suddenly jumped and I think the first thing we have to do and the first thing that we are doing is looking at the figures and the background to the figures as searchingly as possible to see whether what we have got is the beginning of a trend or whether it is merely a blip on the screen. I think when we have got a clearer idea of that in the next month or two, we will have a clearer idea of what we should do in response. Overall, if you look at the likely growth projections for Hong Kong and the consensus of those who make these predictions about our economic outlook over the next year or two, there shouldn't be too much reason for worrying about growing slackness in the labour market and growing unemployment. For example, we will be reaching the peak in some of our construction activity in Hong Kong with implications for employment. But nevertheless, we do need to have a pretty searching look at the figures and if, in the Financial Secretary's judgment and my judgment we need to take action in a few months time, then we won't hesitate to do so.

Mr Steven Poon: Thank you Mr President. Governor, you touched upon one of the possible suggestions I am going to put forward to you, that is the very fact that Hong Kong is going to spend tens of billions of dollars in various projects, in particular infrastructure projects, I suggest that maybe some of the effort ought to be channelled into whether some of this money ought to be spent I won't say in the areas but the areas of spending has already been identified - but ought to be spent in a way where the local labour force could be best utilised. I don't quite honestly know what I am talking about but if contracts can be written, for example, that a certain amount of local labour ought to be employed in a construction contract, then maybe it is one way that the Government ought to think of.

Governor: The Honourable Member has just made the sort of confession that more of- us should make more of the time. We'd certainly earn an honesty award were we to do so. I think that it is quite difficult to envisage circumstances in which we could either so change our tendering procedures or so focus our capital spending as to have a direct impact on local employment without risking a reputation which we've won internationally which I think is good for Hong Kong and gives us from time to time the best prices in the international market for having the most open and competitive public procurement policy anywhere.

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