XN000022-1995-05-18 — Page 7

6

We've made a number of proposals. First of all, we've said that we intend to extend our job placement scheme right across the community, to all nine of our Local Employment Services so as to make it, we hope, easier for people who lose a job to find a new one. Secondly, we're exceptionally concerned about improving our retraining as well as our training facilities in Hong Kong. And we are looking at ways in which we can tailor our retraining more effectively so that it matches those who are acquiring a new skill, who've been unemployed with the new jobs that may be available for them. Thirdly, we are proposing to bring forward the conclusion of our review of the labour importation scheme. We previously said that we would review the scheme by the end of the year. We're proposing to bring forward the review to October and we have made a categoric pledge to the employees' representatives that there will be no new quota under the labour importation scheme until the review is completed. We're also open minded about monitoring of any scheme in the future and we're entirely prepared to consider associating employers and employees with the monitoring of any labour importation in Hong Kong. But I repeat that we are bringing forward that review and there will be no new quota until the review is complete.

We had an interesting discussion. We haven't seen eye to eye on everything but I think it was constructive and helpful. I intend next week to talk to the employers' representatives about their views on the present situation and following that meeting, I intend to invite both the employers' and the employees' representatives to a joint summit in early June so that we can start to establish a dialogue between both sides, and I hope resolve some of the problems in some of the issues that are outstanding. I think what their community wants to see is the Government working with employers and the employees. I don't think anybody wants to see this issue polarised and I hope we can have as constructive a dialogue with both sides as possible. I wonder if you want to add anything, Michael? Now I'm sure you would like to talk to the employees.

Question: Governor Patten because you have agreed to review the importation of labour scheme, do you agree that it is a source of rising unemployment?

L

Governor: No, I don't. One of the interesting figures which is worth looking at is that while the number of people in Hong Kong since last autumn under the importation scheme has fallen, the number of unemployed has risen. So even though there are perfectly legitimate questions to ask about the importation scheme, you can't make a match between the importation scheme and the rise in unemployment. I think the rise in unemployment has more to do with two things one of which is short term, the other of which is longer term. The short term is the slowdown in consumer spending that we've seen in the last few months which has had an impact on retailing and an impact as well on the restaurant business. Secondly a longer term issue has been the movement of jobs out of manufacturing in Hong Kong into manufacturing it Mainland China or elsewhere in the region. It is a longer term issue and one which we have to address with better training of workers.