TNAG-2077-FCO40-2957-Hong-Kong-culture-1990 — Page 213

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used successfully abroad, the training will be provided by way

of overseas working attachments, in respect of which the Hong Kong Productivity Council and the Industry Department will endeavour to provide a placement assistance service.

6.

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The Vocational Training Council has indicated that it is capable of administering the scheme. It will invite, vet and approve training proposals from manufacturers. Successful applications would be provided with financial assistance from a fund in the form of a loan.

New Technologies Training Fund

It

7.

is proposed that a fund called the New Technologies Training Fund should be established. It will be made up of contributions from the Government in the form of an interest-free loan from the Development Loan Fund, trust funds, and possibly private sector sources. The Government loan will be repaid in ten years or when the Training Fund is dissolved, whichever is the earlier.

8.

The working Party has examined a number of cash flow models to determine the minimum size of the initial fund which would generate sufficient earnings to cover administrative expenses and to allow the granting of loans of, on average, $50,000 per overseas attachment and $20,000 per local course for an average of 100 trainees per year in each category, with businesses repaying the loan over one or two years following the trainees' completion of training at a low interest rate. A scheme of the scope envisaged providing grants, rather than loans with interest, would give rise to unacceptably high recurrent expenditure and would probably require the Government to impose investment conditions on businesses.

9.

The Working

Party has estimated that a fund of $34 million should be able to finance 200 traineeships a year, assuming a planning horizon of ten years and repayment of loans within one year after completion of training at an initial interest rate of 5.5%. This figure is calculated having regara to current deposit rates and current inflation rate, The Working Party envisaged that the private sector would contribute $20 million and the Government $14 million.

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