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The following is the translation of the speech by the Acting Chief Executive, Mr Donald Tsang, at the Labour Day reception held at Government House this (April 29) afternoon.

Ladies and gentlemen,

Welcome to our Labour Day reception today.

Our economic recovery has seen gradual improvement in the employment situation, an issue of prime concern to us all. The unemployment rate has steadily eased to the current 6.1%, down by almost 30% from its peak of 8.6% in 2003. But there is no room for complacency.  Employment is a long-term challenge. "Promoting employment" remains a priority policy objective of the SAR Government. We will, as always, build a conducive business environment, create more jobs and spare no effort in taking forward various employment and training schemes for the middle-aged, youth and people with disabilities. We will continue to enhance job placement services and provide more support for job-seekers living in remote districts. Meanwhile, the Labour Department is to launch the "Work Trial Scheme" in June to assist those having special difficulties in securing employment.

Apart from employment, the Government is also very concerned about employees' rights and benefits. Last year on Labour Day, we announced a mandatory requirement that government service contractors should pay their non-skilled workers wages not less than the market levels. To further protect the interests of employees, all future government service contracts to be tendered will require the use of a standard employment contract for non-skilled workers which specifies the monthly wage, working hours, working place and method of wage payment. To tie in with the adoption of the new standard contract, the Labour Department and all procuring departments will step up inspections and monitoring efforts to protect non-skilled workers from exploitation.

We will also keep up our rigorous enforcement action against those who default on wage payments, with zero-tolerance for unscrupulous employers. The Labour Department will not hesitate to prosecute law-breakers once there is sufficient evidence. Recently, two employers were given suspended jail sentences for offences relating to wage arrears. I hope we do not see a repeat of these offences.

Human capital is Hong Kong's most precious asset. Our 3.5 million-strong workforce will continue to make tremendous contributions to the economic development and prosperity of Hong Kong. Labour Day is a day to pay tribute to all employees for their tireless efforts in promoting social and economic progress. I take this opportunity to show my deep respect for the labour sector, and look forward to further co-operation between the labour and business sectors and the Government. Together we can optimise our advantages to speed up economic restructuring and achieve greater prosperity.

Thank you.

Ends/Friday, April 29, 2005

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