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administration. Originally I wished to move a motion in March this year to have two layers of the Ombudsman System. The first layer should be the combined offices of the Ward members and C.D.Os. with the former as titulary head of the office and the latter being responsible for day-to-day administration.

The second layer should be a full-time Ombudsman appointed by and responsible to the Governor. The functions of the Ombudsman should not only be limited to dealing with investigations. It should offer advice, mediate where necessary, explain Government ordinances and policies, and offer other assistance to people who seek it. In my experience from serving in the Ward, about 90% of the cases can satisfactorily be solved at the first level, i.e., by the combined efforts of Ward members and C.D.Os. The remaining 10%, because of the seriousness of their nature, should be referred to the appropriate Ombudsman for a solution. I am convinced that in Hong Kong such a system could work satisfactorily. The Umelco office could also refer their cases to the Ombudsman for a suitable solution if they think the matter needs investigation and redress.

I must conclude my speech now, Mr. Chairman, because I think I have already used more than 20 minutes. However, I should be grateful, Mr. Chairman, if the points raised by me could be answered by my official colleagues when their turn comes.

With these remarks, Mr. Chairman, I have great pleasure in supporting the Motion before the Council. (Applause).

MR. JAMES M. H. WU:- Mr. Chairman, I must first thank my Senior Colleague, Mr. Kenneth Lo, who has kindly agreed to defer his speech in my favour, as I have to be at the opening of the CMA Exhibition tomorrow afternoon. From the speeches we have heard, opinion seems to be divided as to whether we are in a boom or swing of a bank. I think it would be much safer for me just to state some facts.

Our bank deposits are at a new high and stock prices rocket. Tourists come in ever-increasing numbers, and getting a hotel room even at the Hong Kong Hotel is no easy task. For two consecutive months, our exports passed the HK$1,000 Million mark for the first time. It took us 6 years in 1960-66 to double our exports, but this time it took only 3 years to do so in 1966-69.

In the absence of a healthy and effective trade union movement, which condition is likely to continue in the foreseeable future, the demand for (and not by) labour has driven wage increases at as high a rate as 20% per annum (as it is at present), so that our wages today are about 250% of 1958, with our living costs barely 130%. This has brought about a measure of affluence and rising standard of living enjoyed by all. Indeed, our workers who laboured with dedication and perseverance are entitled to a fair share of the fruit of our industrial development, and it is good to see that this is being realized.

However, it is not my intention to paint this rosy picture to show you that all is well and will continue to be well. Indeed, the task of building and maintaining a viable economy, imperative as it must be in a community like Hong Kong, is going to be increasingly challenging in view of fast-changing circumstances within and without that are already seriously taxing my fellow industrialists during recent months. I would beg leave to use this occasion to bring to light the difficulties already experienced but can only be solved by joint endeavour by every sector of our community.

Rapid expansion of industry calls for the use of more space, and the lull in development of industrial estates and buildings during the aftermath of 1965 and 1967 has compounded the acute shortage. Prices and rental more than tripled during the past twelve months, so that comparing with, say, a Japanese industrial city like Osaka, our industrial lands cost about 10 times as much. My learned colleague, Mr. Hilton Cheong-Leen, will testify to that. He and I have the same target. Expensive sites absorb large capital otherwise available for modern plants, and crowded and high-rise premises increase material handling costs and hinder production layouts and flow, and cause higher accident rates. Without protection, manufacturers who rent premises are at the mercy of unscrupulous landlords, and small firms are likely to be forced to close down. Indeed, the present situation is getting more serious than before 1964, and the only solution, in my opinion, lies with the government in initiating crash programs, such as:

(1) to open up more industrial estates and, in particular, expedite the development and auction of those underway,

(2) to speed up the process of approving building plans and, if necessary, resort to workable expedients.

Whilst increasing the supply of industrial buildings is a basic solution, a temporary rent control on existing premises will save a number of smaller firms which are supporting industries to our larger manufacturers.

In my opinion, the severe shortage in labour I referred to earlier is to some measure due to an underemployment of our manpower resources and could have been, and must be alleviated, particularly in planning for our future growth.

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