XN000022-1995-11-02 — Page 82

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We are not apologetic at all about our policy of minimum intervention and maximum support. It is our firm conviction that the Government's role should be confined basically to maintaining macro-economic stability, creating an environment that is the most business-friendly in the world, providing education and training for our workforce and building up the physical infrastructure required to support economic activities. We believe, wholeheartedly, that the Government. should not attempt to direct or manage the economy at the macro level or to second guess markets and entrepreneurs at the micro level. This is because our entrepreneurs make better business decisions than civil servants. Indeed the very success of our economic way of life is to trust the markets and to let competition take command. In short, Adam Smith's "invisible hand" of the market is much to be preferred to the dead hand of government interference.

In addition to maintaining a favourable climate for business and economic development, the Government has invested in projects which are specifically targeted at supporting industrial upgrading.

We have three industrial estates catering to companies which are able to bring new or better technologies or products to Hong Kong and which cannot operate in multi-storey buildings. We are looking into the need for a fourth industrial estate.

* The Hong Kong Productivity Council with its network of subsidiary companies provides a wide range of services to help manufacturers upgrade their productivity and technology.

* The Industrial Technology Centre was opened this year providing accommodation, support and services to new technology-based businesses. We will look into the possibility of setting up a second industrial technology

centre.

* A fund of $200 million has been allocated for applied research and

development.

On top of that, we have also set up an industrial support fund for the purpose of providing financial assistance for projects seeking to upgrade the technological skills of and to facilitate technology transfer to the manufacturing industry. In its first two years, $180 million was injected into the Fund in 1994-95 and $210 million in 1995-96; and subject to the approval of the Finance Committee, $250 million will be made available in 1996-97.