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Following is the speech by the Financial Secretary, Mr John C Tsang, at the Seminar on Latest Product Safety Directives of Toys Industry and Good Practice in Achieving Safety Standard at Hong Kong Convention and Exhibition Centre this morning (January 9):
Jeffrey (Lam), Lawrence (Chan), distinguished guests, ladies and gentlemen,
Good morning.
I am delighted to have an opportunity to speak with you today. This conference is an important part of the 34th Hong Kong Toys and Games Fair, the largest event of its kind in the region. I am pleased to see so many friends coming from overseas. A warm welcome to you all. Let me start by wishing you all a happy and prosperous New Year.
Toys industry in Hong Kong
I have always admired the toy makers. They are some of the most creative and innovative people around. They always have fun on their minds and toys on their hands. And they are always coming up with great ideas that will translate into hours of enjoyment for us. It is a tribute to our local entrepreneurs that kids around the world have grown up with an appreciation of the "Made in Hong Kong" brand. Now, their children are doing the same. Our toys are known for their design, affordability and quality. Today, we are the world's second largest exporter of toys, including re-exports, just behind the Mainland of China.
This reputation has been hard earned. It is the fruit of more than four decades of dedication and sensitivity to changes in the marketplace. An adventurous spirit in adopting new designs and, of course, a commitment to quality are part and parcel of our industry. In the first 11 months of last year our toy exports were worth some HK$90 billion. That's a 25% rise year on year.
Challenges Ahead
Far from playing around, today, more is being asked of the toy sector than ever before. It is not good enough to produce affordable, imaginative and technologically advanced playthings. They also have to be totally safe, and rightly so. The protection of the consumer is paramount, especially when that consumer is a child ¡V often a very young child.
We are all aware of the recent recalls of some toys manufactured in the Mainland. The issue is of particular concern to Hong Kong manufacturers, 80% of whom are based across the boundary in the Pearl River Delta. Vice-Premier Wu Yi last month called for tighter monitoring of toy exports as the Christmas season reached its peak. But she also saw an opportunity to reinforce the positive image of toys made in this part of the world. Many of our manufacturers are already grasping this opportunity.
A growing number of firms have recruited their own in-house testing teams and are developing their own testing facilities. They are also using independent performance monitors to ensure that their products are safe. And all companies are subjected to heightened inspection and supervision procedures in the Mainland. Only products that meet the required safety standards are cleared for export. No doubt this will all add to the production costs, but it will be a relatively small price to pay for protecting the consumer, as well as the reputation of the industry.
On a broader scale, our toy makers are actively involved in the International Council of Toy Industries (ICTI). They have been helping to promote the "ICTI CARE Process" in this region by adopting good manufacturing practices and labour standards. In today¡¦s environment of "borderless manufacturing", an international approach is needed to strengthen confidence in the industry.
Toy safety is just one of the aspects adding to the manufacturing costs. Labour costs are also going up in the Pearl River Delta where there is a shortage of skilled workers. Rising oil prices, which may hit US$100-a-barrel again, are adding to the price of raw materials. And changes to the Mainland's tax regime and processing trade policy are adding to the concerns of low-cost toy producers in this region.
Yet another issue is the environment. Consumers not only want assurance the products they buy are safe, they also want to know how the production process has impacted on the air that we breathe. So more environmentally-friendly production techniques are required.
Government-Industry Collaboration
Here's how the Hong Kong Government is getting behind our toy industry's march towards developing high technology and high value-added products that are also safe and "clean". We have the Innovation and Technology Fund and the Small & Medium Enterprises Development Fund, which help companies upgrade their skills base and boost competitiveness.
Similarly, our industry support bodies, such as the Hong Kong Productivity Council, Trade Development Council, Vocational Training Council and Hong Kong Design Centre, have all been charged with the mission to support our manufacturers. In his Policy Address last October, the Chief Executive announced a five-year programme with funding of HK$93 million to encourage Hong Kong manufacturers operating in the Mainland to use cleaner production techniques. The Productivity Council is responsible for assisting these factories in adopting cleaner and more efficient production techniques.
New Opportunities
It is often the case that challenges and opportunities go hand in hand. Companies are spending more on R&D, prototyping, branding and customer awareness. The result is that our children have more interesting and stimulating games to play with and parents are prepared to pay a little more for peace of mind.
Ladies and gentlemen, we have an expert panel of speakers today. I am interested to know their thoughts about toy safety and the future direction for the toy industry.
I am confident that, with governments, international bodies such as the ICTI, and manufacturers working together, we can look forward to a bright future for this industry.
Thank you.
Ends/Wednesday, January 9, 2008
Issued at HKT 11:37
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