The other issue we need to address in the context of unemployment is the importation of labour. I know there are strongly held views on this issue, and I understand Members' concerns. I believe that on this issue the Government, this Council and the community share much the same goals. We all want to make sure that we have an adequate supply of the right types of labour to maximise our potential for economic growth. This will benefit the whole community. At the same time, all of us want to give priority to local workers. The Government's proposals for the Supplementary Labour Importation Scheme were designed to get the proper balance between these two important goals. The Secretary for Education and Manpower has been engaged in a dialogue with Members of this Council to build on this common ground. The Governor's Employment Summit will tackle this issue tomorrow. I am sure that with patience and goodwill, we shall get the approach right.
Inflation
Our third economic challenge is inflation. To put it bluntly, our inflation rate is too high. Yes, it has moderated from the peak of 13.9 per cent in the spring of 1991. But at 8.9 per cent it is higher than the rate experienced by many other economies in our own region, as well as in Europe and North America. We must take the greatest possible care to ensure that we do nothing to squander the gains we have made in reducing price pressures in the past few years. I hope Honourable Members will understand me when I say that I am simply not prepared to take any risks with inflation.
* We will hold down government spending to reduce competition from the
public sector for scarce resources.
* We will chase every source of improved efficiency in the public sector,
whether through higher productivity or more modern management systems.
We will continue to tackle the bottlenecks which push up private sector costs, whether through an improved supply of skilled labour, land, a streamlined regulatory environment or a better transport and
communications infrastructure.
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