Traditional Chinese Simplified Chinese Email this article news.gov.hk
LCQ5: Measures to tackle problems brought by the financial tsunami
***********************************************************

     Following is a question by the Hon Wong Yuk-man and a reply by the Financial Secretary, Mr John C Tsang, at the Legislative Council meeting today (November 12):

Question:

     In a United States (US) Congress hearing on the 23rd of last month, the former Chairman of the US Federal Reserve Board conceded that the market-driven ideology did not work any more. Thereafter, in response to the financial tsunami, the Government has set up the Task Force on Economic Challenges (Task Force), and its members are almost exclusively elites of the business sector with no representative from the grass-roots and the small and medium enterprises (SMEs). In this connection, will the Government inform this Council:

(a) whether it will review the use, since many years ago, of "big market, small government" as its principle of governance, so as to avoid the situation of its policy being tilted in favour of tycoons;
 
(b) what "opportunities" it has identified in this financial tsunami, whether they include massive transformation of industries, integration of the Pearl River Delta Region and return of industrial operations, and of the details of these "opportunities"; and

(c) why representatives with popular support from the grass-roots and SMEs are excluded from the Task Force; and in the face of extensive business closures and surges in bankruptcies and unemployment to be brought about by the financial tsunami, whether the Government will provide specific estimates on the numbers of businesses closing down and bankruptcy cases in this year for reference of the Task Force, thereby assisting it in formulating concrete proposals to help SMEs and the grass-roots tide over the difficult times, such as converting the existing Support for Self-reliance Scheme to an unemployment assistance scheme without any conditions; if it will, of the specific figures and details of the proposals?  

Reply:

President,

     First of all, I would like to thank the Hon Wong Yuk-man for his question.

     Free market is the bedrock of Hong Kong's success. Our entrepreneurs, small business operators and highly productive labour have been the major driving force in improving the living standards and increasing the gross domestic product (GDP) of Hong Kong. Our per capita GDP has increased from $28,000 in the early 1980s to more than $233,000 today. This is the result of the continuous efforts of Hong Kong people.

     The SAR Government has been adhering to the principle of "Big Market, Small Government" because in a "Big Market", the private sector can increase its share in the economy, and the limited social resources can be allocated and utilised in the most efficient manner through market forces, enabling the community to enjoy the greatest benefit.

     The Government's role is to create a stable, predictable and business-friendly environment to meet the needs of the market, and to provide assistance where necessary, especially when the market operation is out of balance. The Government will provide a safety net for the underprivileged and those in need to assist them in tiding over the present difficulties.

     "Big Market, Small Government" is a flexible concept. We will take a pragmatic approach in introducing measures tailored to specific circumstances and adopting different policies to meet the needs of the community and promote economic development.

     The second and third questions raised by the Hon Wong Yuk-man are related to the Task Force on Economic Challenges. The Task Force set up by the Chief Executive aims to continuously monitor and assess the global major markets and the local market at this critical time, to gauge the impact of the financial tsunami on the Hong Kong economy and major industries in a timely manner and, more importantly, to identify ways to turn the crisis into business opportunities for consideration by the Government and the industries concerned.

     At its first meeting on last Monday, the Task Force had an in-depth discussion on both the global and local economic situations. As the effects of the global financial tsunami on our various economic sectors are gradually emerging, the Task Force has agreed to focus its work on four sectors relating to financial services, trade and logistics, tourism and consumption-related services, and real estate and construction.

     At present, we are stepping up our efforts to explore ways to enhance the competitiveness of and identify new opportunities in these four sectors. Our aim is to make a timely assessment of the impact of the financial tsunami on Hong Kong's economy and major industries, and put forward specific proposals to address the challenges for consideration by the Government and the industries. In this connection, we are open to suggestions from the industries and the public. Our work, of course, includes studying any feasible proposals, such as transformation and upgrade of industries, integration of the Pearl River Delta Region and return of industrial operations mentioned by the Hon Wong Yuk-man, with a view to tapping new business opportunities and increasing Hong Kong's competitiveness. The Government will provide in due course relevant information for assessing the specific proposals made by the Task Force. We will also make use of the existing consultation channels to seek the views of the public and the industries, including SMEs.

     I believe that with the personal experience of the Task Force members and collective wisdom of the community, we can soon formulate suitable overall strategies for Hong Kong to tap new opportunities in different sectors.

     Thank you, President.

Ends/Wednesday, November 12, 2008
Issued at HKT 14:40

NNNN

Print this page