XN000022-1995-06-14 — Page 77

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Answer:

(a)

(b)

(c)

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The Government's economic policy is to allow market forces to determine the pace and direction of economic development, while providing an environment that is as friendly and as supportive to business as possible. This policy has enabled rapid and large-scale restructuring of the economy to take place with remarkably little impact upon employment. During restructuring, some impact upon employment is inevitable, given the mismatch between the skills demanded by employers, and those offered by employees. Since the scale and speed of the process depends upon market forces, it is not possible to predict in advance precisely what the impact will be. To mitigate the effects of unemployment upon those displaced from their jobs, the Government operates the Employees Retraining Scheme, to enable displaced workers to retrain for other jobs.

The primary objective of the Employees Retraining Scheme is to provide retraining courses to help those displaced by the economic restructuring process to re-enter the workforce. To this end, the Employees Retraining Board (ERB) provides training in both job-related technical skills and general techniques for adapting to new job requirements. On the other hand, the adult education programme, which is coordinated by the Education Department, provides general educational opportunities for adults who may have missed the opportunity to receive formal education.

The ERB is funded by a specific levy imposed on employers of imported workers, which is solely designated to finance the Scheme set up in accordance with the Employees Retraining Ordinance. It is not appropriate to expand the role of the ERB and the ambit of this levy to cover adult education and other purposes which are already provided and funded separately.

The Government already operates a number of schemes which are intended to encourage manufacturers to upgrade the skills of their workforce. These include the New Technology Training Scheme, which offers matching grants to employers training staff in new technologies, the Engineering Graduate Training Scheme which subsidise employers who provide graduate engineers with the training needed to meet the requirements of the Hong Kong Institute of Engineers or similar professional bodies, and the Employees Retraining Programme, under which employers are offered subsidies to retrain people in skills for which there is unfulfilled demand.

End/Wednesday, June 14, 1995

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