1982 — Page 118

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of production as a result of the raised electricity charges which also leads to our weakening competitiveness with Taiwan and South Korea in the world markets. All these factors will affect the prosperity of Hong Kong.

These of course cannot possibly be solved by the Chinese, British or Hong Kong government. Although the three governments keep on trumpetting how to maintain the stability and prosperity of Hong Kong, it will not bring us prosperity, at least not in the year 1983.

Since the problem of Hong Kong's prosperity is not an isolated one but an involved and intricate issue closely connected with the economic conditions of the world's advanced countries, let us lay it aside for the time being. As for the question of stability resulting from economic recession, some discussion is called for here.

Much praise is due to Government for its untiring efforts and achievement in maintaining the stability of Hong Kong,

Unfortunately, Hong Kong is at present facing great difficulties. With an unclear future, a recessionary economy, a shaken public confidence and hesitation by investors, if Government desires to preserve the stability of Hong Kong, it cannot now follow the old, worn-out policy of laissez faire to cope with today's new situation.

To maintain the stability of Hong Kong, we should focus our attention on the following three aspects: (a) employment, (b) social welfare and (c) law and order.

(a) Government has all along adopted a laissez faire policy in respect of employment of the work force. Apart from the setting up of Local Employment Service in recent years in the Labour Department to help people find jobs, Government has never lent a hand to those who are out of their jobs in maintaining a living, nor make any attempts to solve the problems of unemployment and inadequate employment (Those who have work for only ten days or so in a month.). In the past, the laissez faire policy did not draw much criticism. However, with increasing number of people without a job now, (although the Government has recently announced that we only have a 4% unemployment rate and that it's very small when compared to other countries, according to a lot of surveys, there is a high percentage of inadequate employment. It's as much as 25%) the unemployed together with the inadequate employed have become a large force. They do not have any unemployment allowance, and if they are deprived of even the bare necessities of life, there will be dreadful social consequences. It is doubtful whether our laissez faire policy can solve such terrible social problem.

As dreadful social problems are slowly taking shape, Government should plan well in advance for a solution. It should abandon the laissez faire policy and not to insist on conservative budgetary practice to achieve

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a surplus and increase the reserve funds. It should tackle the new situation with new concepts. For instance, notwithstanding deficits occurring in the budget, Government should continue to invest heavily in public projects such as construction of roads, flyovers and the cross-harbour bridge, and building more public housing estates and home ownership scheme estates. In doing so, more jobs will be created to solve or alleviate the pressure of unemployment on the one hand, while on the other, it also helps solving the transport and housing problems. This kind of expedient measures were taken by President Roosevelt of U.S.A. during his country's economic depression then prevailing and proved effective. Our Government may therefore ponder over such a solution.

The day before yesterday, our Vice-Chairman says that we are faced with economic recession and this affect our construction industry. They cut down the prices to bid for contracts. Therefore, the Urban Council should put into effect more projects because afterall, the meat despair to the bone and the bone has been despaired as well. I agree with the Vice-Chairman in this respect.

(b) Social welfare measures play a more important part at times of economic recession since poor people have greater needs for welfare assistance. In recent years, apart from setting up social welfare institutions directly under its wings, Government has also given massive aids to voluntary agencies in the provision of various social welfare services, particular emphasis should be laid on recreational services for young people. Regrettably, the provision of services for the aged still leaves much to be desired over which there is some public dissatisfaction. Government should therefore step up its efforts to rectify the situation so as not to depress public morale.

(c) Law and order in Hong Kong is fast deteriorating in the last two years, with robberies occurring almost everyday, and murders becoming virtually daily routine. To maintain Hong Kong's stability, this state of affairs cannot be ignored.

At present, there are large numbers of people in Hong Kong holding 'green-scaled' identity cards. According to unofficial statistics, they total well over 400 000. Most of them are immigrants from China Mainland who have experienced the Cultural Revolution and whose education and philosophy as well as style of living are greatly different from those of the Hong Kong residents in general. It is doubtful if they are able to adapt to our social environment. Hence, Government should set up adult education institutes as far as possible to help those newly-arrived to adapt themselves to the way of living in Hong Kong and bring them on the right track within a short time so that they will become genuine members of our community. In this way, law and order in Hong Kong will be much improved. Otherwise the 'green-sealed' identity card holders will continue to be a great threat to Hong Kong.

Mr. Chairman, with these remarks, I support the motion.