XN000022-1995-10-11 — Page 21

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I believe there is a solid consensus, both in the community and the new Legislative Council, on this issue. But to remove any doubts which may persist on this point, I have suggested that the new Legislative Council should restate its support for this cardinal principle of our economic policy. I know this would send a comforting and confident signal to the community at home and to investors and trading partners abroad.

Despite our successes, many people today are worried about problems like inflation and unemployment. I announced today a series of measures to make us more competitive, particularly in the fields of research and development. They will strengthen our armoury in the fight against inflation, which we have pulled back from its peak of 13.9% in April 1991 to 8.3% last August. Still too high, but several steps in the right direction.

Rising unemployment in recent months has been a source of understandable concern in the community. I announced in my speech today that the General Importation of Labour Scheme will be phased out. With our economy growing more slowly and with more people coming into our labour force we no longer need this Scheme. But we'll still require some workers from overseas from time to time.. so we'll be replacing the present scheme with a much smaller and more targeted one. The maximum number allowed in will be slashed from 25,000 to just 5,000, and the new scheme will carry much more stringent conditions for importing foreign workers.

It is important that these new proposals enjoy the support of the community. So I will be hosting a summit on employment next month to consult legislators and representatives of both employers and employees. I want to forge a consensus on how we should tackle this issue. The Scheme will be monitored by the Labour Advisory Board to ensure that the interests of all sides are represented and protected.

Our present rate of unemployment of 3.5% is low by international standards. but not in Hong Kong where the community regards full employment as the Government's single most important welfare objective. We share that view. That is why we readily accept the responsibility to do everything in our power to ensure that the men and women of this community have the opportunities to earn a decent living to support their families.

I believe that the measures we introduced earlier this year on retraining and job matching; the crackdown on illegal employment; the freezing of the General Labour Importation Scheme in the summer; together with our new proposals today to scrap the scheme underline our continuing commitment to that responsibility.