XN000022-1996-03-06 — Page 39

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"Feel-bad" factors cannot be ignored: FS

Although the immediate economic prospects remain good, the so-called "feel bad" factor: the concerns about unemployment and persistent inflation and the cautious attitude on consumption, even though the situation has improved somewhat, cannot be ignored, the Financial Secretary, Mr Donald Tsang, said.

The economic statistics of higher GDP. lower inflation, stabilised unemployment rate, rising exports and increased investment are of little comfort to those who have lost their jobs or to businesses under pressure as consumers hold back spending.

In his Policy Address last October, the Governor announced a series of measures aimed at tackling directly the problems of unemployment and low incomes.

"Let me assure Members of this Council and the community that this Budget makes provision for funding all the measures announced by the Governor. Where possible, I shall be proposing that we go even further in improving and expanding these programmes," Mr Tsang said.

The first priority is to get the unemployed back to work. A major challenge is matching skills to jobs.

In 1992, the Government set up an Employees Retraining Scheme to provide retraining for displaced workers.

To date, the Employees Retraining Board has provided over 100,000 places on its courses, teaching workers new skills or helping them to upgrade their existing skills.

In 1992. a grant of $300 million was made to the Board as its reserve. But its primary source of income is the levy imposed on employers of imported workers admitted under the various importation of labour schemes.

The freeze since April 1995 on the allocation of quotas under the General Importation of Labour Scheme has reduced the income of the Board from its levy.

Consequently, the Board has begun to draw down the $300 million reserve, which now stands at $186 million. The General Scheme has been replaced by the Supplementary Labour Scheme.