TNAG-0259-FCO40-295-Legislation-for-prevention-of-bribery-in-Hong-Kong-1970 — Page 109

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HONG KONG LEGISLATIVE COUNCIL — 2nd October 1969.

[MR WONG] Motion

In some respects, however, government has exercised its new functions in the financing, construction and management of low cost housing, the establishment and management of fish and vegetable co- operative and marketing organizations, and the introduction of the rent increase control bill in 1963* for domestic premises which was abolished in 1966†.

Although the theme of economic policy is classical, general opinion is toward government seeing to it that private enterprises continue to maintain a steady level of high employment and rising productivity.

Under the heading of economics, I would like to draw attention to the following points:-

(a) Direction of labour

Hong Kong is going through a phenomenal period where there is, generally speaking, no unemployment. There is actually a shortage of labour in certain industries and this leads to the question whether labour should be redirected from such trades as hawking which while individually lucrative, does not contribute to production. Under this heading considera- tion could be given for a labour exchange where statistics could be kept and could also serve as an index to guard against unemployment, or undesirable development in employ-

ment structure.

(b) Financial facilities for small industries

Because of the emphasis which the large banks place on physical assets and capital goods, smaller industries are still facing difficulties in arranging finance at a reasonable rate of interest. It is generally felt that some measures could be devised to assist small industries which have good manage- ment and organization. Increase in bank loans to small industries are certainly lagging behind the growth rate in other aspects of finance.

(c) Rental increase rationalization for domestic premises

While it is fully appreciated that rent control in general will deter investment and, therefore, affect adversely the supply of domestic flats, recent rent increases for some workmen and clerical staff are assuming proportions which will unsettle their cost of living. The rise in rent generally far exceeds the

* 1963 Hansard, page 51.

† 1969 Hansard, page 12.