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CONFIDENTIAL
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Comparison of Hong Kong's Labour Standards with those of Neighbouring Countries (paras. 56 - 57)
20
The Regional Office of the International Labour Organisation in Bangkok had already been approached prior to the suggestion in paragraph 56. We are, however, inclined to agree with the Labour Adviser's point and indeed doubt the value of such comparisons without the whole range of social, political and economic conditions being taken into account. The Executive Council is rightly concerned about our competitive position, but it cannot be assumed that their concern would necessarily inhibit advances in labour legislation beyond our competitors in appropriate cases.
Department of Labour (paras. 58-60)
21.
The proposal to increase the number of places available on United Kingdom training courses is most welcome.
22.
The experienced officer seconded from Her Majesty's Factory Inspectorate is now well established in his job and his advice is already proving of great value.
Future Priorities
23.
The list of future priorities given in paragraph 62 is generally agreed, and we are pursuing most of them, as indicated in the comments above. There is, however, one exception: minimum wages, which is dealt with below.
24.
Minimum Wages (para. 62(b)) Section 26.7. of the report of the inter-departmental Working Party on Social Security, which suggested that a minimum wage should be established, made clear that the suggestion was based on the assumption that the introduction of a public assistance scheme would disclose that certain fields of employment would, by virtue of their wage rates being below subsistence level, be subsidised by such public assistance. Since the introduction of the Public Assistance Scheme this assumption has not been shown to be valid (except in a few cases where the wage-earner had a large number of dependants to support). The level of real wages which until very recently has risen by about 5% per annum has kept the lowest full-time wages well above the subsistence level. Therefore quite apart from the economic arguments against the introduction of a general minimum wage, at the present time it is not considered that there is social justification for introducing a minimum wage level.
25.
It is accepted that the rather out-dated Trade Boards Ordinance (Cap. 63) would probably not be a suitable vehicle for the introduction of a general minimum wage since it is designed to adjust inequities in the level of wages between industries, in particular where some industries are being depressed. The
CONFIDENTIAL
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