XN000022-1996-02-01 — Page 6

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However, under the new legislature formed by, Governor, you, the balance seems to have tilted a little bit in favour of the labour side, together with the Democrats in this Council. Will the Governor shed some light, how should the business community tackle this problem? Shall we just decide to give our hands up, let the union leaders do whatever they want or (does) the Governor have some bright ideas for us? Thank you.

Governor: The Honourable gentleman raises an important question and perhaps I can respond at reasonable length.

First of all, it seems to me that when one look at Hong Kong's success in the area of labour relations, it's due less to the lead given by Government than by the co- operation that there's been, institutionalised through the LAB, between employers and employees. The Government has been there to hold the ring but by and large we've had exceptionally successful labour relations in Hong Kong because we've had a consensual approach to labour matters and because, as in so many other areas of Hong Kong's life, people have looked for co-operation rather than confrontation.

I happen to believe myself that there is no reason at all why the development of democracy in Hong Kong should threaten that and after all, we're only part of the way along the road. The Basic Law promises us, if that's what Hong Kong wants, a completely directly elected Legislative Council. It also suggests, in due course, the election by universal suffrage of the Chief Executive. So the process of democratisation which has begun in Hong Kong isn't suddenly going to end, it's going to continue and we have to learn to live with it and make it work in the best possible ways to underpin Hong Kong's strengths rather than to corrode them.

I think that the whole community would be very surprised indeed if any actions taken by this Legislative Council put at risk the consensual approach to labour matters and in particular, put at risk the LAB and its work. What are those who give their time and energy and commitment to the LAB to make of it, if after having reached a deal they find that deal chucked out by others. I quite understand the arguments about trying to ensure that the LAB has a better and closer working relationship with this Council. That's not in dispute. Our excellent Secretary for Education and Manpower is talking, I think to the honourable member among others, about how we can best achieve that. But I don't myself see how it's in anybody's interest to overturn a system of trying to deal with labour market problems which has worked extremely well and I don't think people in the community would understand that.