TNAG-0177-FCO40-213-Proposed-Polytechnic-1969 — Page 72

FAR LASTERN

ECONOMIC REVIEW

practicable to operate modern apprenticeship schemes. The minimum size is felt by industrialists to be about 300 em ployees, the figure being equivalent, it is claimed, to an indus- A trial esta hment of 100-150 personnel in advanced Western countries. Because of this, only the large dockyards, aircraft engineering companies, public utilities (all of which already have apprenticeships in operation) and some others are judged suitable and capable of running modern apprenticeship train-" ing. There is, however, no real validity in this viewpoint., Medium-sized, even small, industrial concerns could organise" proper apprenticeship schemes if the willingness was there.

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Instead industry, and commercial enterprises too, want the Government to establish institutional training centres for" the complete training of craftsmen. The post of Senior Train- ing Officer (Apprenticeship) has been created within the Labour Department and was filled after some recruitment difficulties in June. A long-delayed Bill on apprenticeship training is being prepared by the Labour Department: a sub- committee on apprenticeship under the aegis of the ITAC (Industrial Training Advisory Committee) submitted a draft bill on apprenticeship early last year. It is understood the.it Bill set out to rationalise all aspects of apprenticeship training and proposed a scheme by which industrialists would be en- couraged to introduce approved apprenticeships with govern- ment backing.

Industry, however reluctant, is going to be called on to play its part. There is no reason why the Government should not furnish subsidised places in pre-vocational training schools. But industry must provide the follow-up training and the jobs for graduates of these and other schools. The Government too should be galvanised into more positive action.

.The Labour Department has not been pursuing the matter

AUGUST 21, 1969

Trainees learn skills on-the-job; generally industrialists have remained unconvinced of the need to start proper apprenticeship schemes and give practical training.

of an Apprenticeship Bill with much vigour. The task of popularising the need for proper training schemes and con- verting industrialists is an issue of great concern for Hong- kong's future industrial welfare. Earlier this year the Com- missioner of Labour announced that only one firm, a medium- sized engineering concern, had organised a modern appren ticeship scheme in the last year. Since then, another 20. industrialists have indicated their interest hardly encourag ing in view of Hongkong's near-13,000 industrial undertakings:

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LOANS FOR INDUSTRY: A further survey has been undertaken to investigate industrial financing among small firms. While the need for a small loans, institution has not been established, powerful arguments, exist for providing an additional source of loans, not least for Hongkong industry's long-term needs...

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A Case for Credit

By Peter Cook

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"HE controversy for and against an institution to provide loans to the small industrialist has entered its second round with completion of a further survey on industrial on financing. The survey looked at the situation of factories em- ploying 100 to 200 workers, but no decisive outcome one way! or the other has emerged. The new and confidential con.' clusions the survey was conducted in March with 40 fac-' tories from nine industries participating supplement those of an earlier investigation by the Industrial Development' branch of the Department of Commerce and Industry which looked into the dilemma of the small fry (under 100-worker. factories) in search of working capital.

They confirm the ingenuity of local manufacturers in obtaining finance whether they have recourse to moneylenders, banks or hire-purchase financiers, and their comparative success in obtaining loans whether for purchasing premises, expand- ing capacity or diversifying production. They also point to the considerable growth potential of small factories and the strength of their contribution to industrial development. But

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the findings do not rule out the usefulness of a small loans' institution.

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The survey set out to secure information on industrial · ·· financing in a sector of industry and was able to do so with telling references to the results of the preceding survey on smaller factories. In the matter of ownership, the under-100- employee factory was found to be mostly organised into pro- prietorships or partnerships while the most common form of ownership in the larger concerns was limited liability. Fac- tories in the 100-200-employee class were generally more highly capitalised. In both cases the bulk of capital invest- ment was found to be in machinery (74% in the first survey' and 72% in the second). Similarities were apparent in the credit facilities obtained by the two groups. However, the larger firms were less reluctant to approach commercial banks for loans. In the first survey 47% of factories reported they had not applied for bank finance; in the second survey the percentage of those which had not approached the banks was down to 25% with no praeda di min tonì sais vy habang p

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