XN000022-1996-12-03 — Page 8

"As regards the proposed placement-tied and performance-based payment system for the training bodies, all training bodies will be required to attain a reasonable percentage of placements for their trainees those capable of over-

-

achieving the target will receive a higher than normal reimbursement from ERB, wilst those which under-achieve will receive less. In this context, a successful placement for funding purposes is defined as one where the retrainee is employed on the job for at least two to three months. We nevertheless need to consider and draw up the detailed rules and conditions in conjunction with the ERB first," Mr Wong explained.

"We plan to implement the recommendations in phases, starting with the inclusion of new immigrants in the Scheme upon the enactment of the Employees Retraining (Amendment) Bill, if approved by LegCo, early next year. As for the other recommendations of the review, we will, subject to the outcome of the consultation exercise, work closely with the ERB to ensure that the ERS will move gradually from its present mode to one which is tightly focused on the target unemployed over a period of about one year," Mr Wong said.

Turning to the Employees Retraining (Amendment) Bill 1996, Mr Wong said that the bill seeks to give legal effect to the proposal to extend the ambit of the ERS to cover new immigrants.

"On account of their working experience and educational background, many new immigrants who wish to seek jobs may not possess the skills and expertise required by the local labour market and may experience difficulties in finding and securing employment in Hong Kong.

"Under the existing Employees Retraining Ordinance, they are not eligible to apply for retraining since only 'local employees' defined as Hong Kong permanent residents who have been ordinarily resident in Hong Kong for a continuous period of not less than seven years are eligible.'

||

Under the Bill, the term "local employee" under the Employees Retraining Ordinance will be replaced by 'eligible employee', this proposal will in effect mean that all persons, who are legally remaining and free to take up any employment with any employer in Hong Kong, will be eligible to apply to attend a retraining course or programme funded by the ERB.

"Apart from new immigrants from the PRC, the other categories of persons who may qualify as "eligible employees" are unlikely to draw on the resources of the ERB in a significant way, given their educational standing, economic status and background.