CONFIDENTIAL
XCC(91) 62
19
At this
the stage,
DOWNGRADED
7
be
to project is expected self-financing from the third year of its operations, but would need capital of $4.62 million for the first two years.
Private sector support
20
Private sector support is clearly important for the success of the project. As a result of its investigations, the Institute hopes to obtain about $1 million of funding support in terms of contributions for membership on the Board Directors or donations.
of
21
set The Institute has
first year cost of operations,
in
cover
aside $250,000 to
the and if required it would be prepared to provide a further $500,000 to cover the cost of operations
the second
third and
years of the project. Together with the $1 million. which it. hopes to secure from the private sector, a
about
would be $1.75 million available. - To meet expected shortfalls during the first two
of a contribution IPM has sought years, Government.
total
of
$3
million
from
Establishment of a∙ Joint Venture Company
22
IPM's proposal has been discussed between its senior officers and a Government team made up of representatives of the Chief Secretary's Office, Education and Manpower Branch, Finance Branch, Trade and Industry Branch, Civil Service Branch and Labour Department. The consensus is that it has a good chance of working well and, should this happen, of being extended to Australia, the USA and the UK. Nevertheless, while the overseas operational unit should be good at matching potential job seekers with employers once the database is set up, it would initially need a fair amount of advice and support from our overseas offices, the Hong Kong Trade Development Council and Hong Kong Tourist Association, particularly in
contacts with Hong making
Kong residents and business associations and alumni, in placing advertisements, and in The Institute providing general information about Hong Kong.
will also require the support of Labour Department in providing additional information about job vacancies and labour market conditions. This support has been assured.
23
Instead of making an outright grant to the Institute, we propose to set up a joint venture company with them and with other private sector interests
Hong Kong IPM Manpower International Limited to provide the promotional and job matching services described in paragraph 12. A joint venture company is a means of ensuring that Government and the private sector's participation in the project will be
will be subject to the been has
used by
usual
commercial discipline.
This
model
INGRADED
CONENDENTIAL
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