Transcript of remarks by CE at the press conference after the meeting of the Task Force on Economic Challenges (1)(With video)

Transcript of remarks by CE at the press conference after the meeting of the Task Force on Economic Challenges (1)(With video)
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     Following is the transcript of remarks (English portion) by the Chief Executive, Mr Donald Tsang, at the press conference after the meeting of the Task Force on Economic Challenges at Conference Hall, Central Government Offices New Annexe, Central, today (December 8):

     I will now summarise in English what I have just said in Chinese.

     The Task Force on Economic Challenges just held its second meeting.  It reviewed the impact of the financial  turmoil on Hong Kong. It discussed a list of proposals to tackle the challenges and to boost the economy.

     The financial turmoil that started in the US has evolved into a crisis of global economic recession. It has inevitably impacted on Hong Kong’s economy.  We expect a tough time ahead.  Negative growth for Hong Kong in 2009 now seems inevitable.

     As we consider ways to tackle the economic slowdown, there is a recurring theme, and that theme is to preserve employment.  To keep people gainfully employed.

     The first thing we have to do is to stabilise our currency and financial system. This has already been achieved.

     Small and medium enterprises are the lifeline of our economy. To help them in this difficult time is the key to preventing job loss. In view of their continued difficulty in securing loans from banks, we propose to substantially expand the special credit guarantee scheme that we have recently announced.  The maximum loan amount for each enterprise will be increased from $1 million to $6 million, with $3 million being revolving credit. The loan could be used for a wider range of purposes.  All firms, except listed companies, will be allowed to apply. We will increase our overall commitment for this scheme to $100 billion. We will seek LegCo’s approval for the enhanced measures as soon as possible and we hope to have them implemented before Christmas.

     Within the Government, we hope to provide more than 60,000 employment opportunities next year. We will do it through expediting infrastructure projects, advancing the recruitment of civil servants and creating temporary posts.

     We will also make the best use of Government Funds to create jobs while achieving other policy objectives, such as promoting environmental awareness and innovation and technology development, and encouraging people to upgrade their competence and skills.

     We will also do what we can to complement the efforts of certain NGOs in the works projects they have been planning for some time.

     We will expedite licensing and approval for private sector projects to better meet the needs of the market and to facilitate job creation during this critical period.

     The Development Bureau is planning for a dedicated unit to provide enquiry and co-ordination services to the private sector to promote private investment and generate employment.

     We are working closely also with the Central Government and Guangdong authorities on a number of fronts, including measures to help Hong Kong-owned enterprises operating in the Pearl River Delta, expanding the scope of RMB business in Hong Kong, and increasing the number of Mainland residents visiting Hong Kong.

     TFEC has made a number of recommendations for creating employment and stimulating the economy. The Government has agreed to implement some of them. We are carefully studying the rest and will take them forward as soon as their feasibility is confirmed.

     The Financial Secretary is consulting the public on next year’s Budget, with a view to formulating additional measures to create employment, boost the economy and alleviate difficulties faced by our citizens. I believe the measures I have just mentioned, together with the 2009 Budget, will help to effectively address the challenges before us.

     To weather the current crisis would take more than what I have just said the Government will do. It requires every one of us to work together. Despite all the difficulties ahead, we must not lose heart. I am confident that once the external environment improves, Hong Kong will be among the first to rebound.

     Thank you very much.

(To be continued.)

(Please also refer to the Chinese portion of the transcript.)

Ends/Monday, December 8, 2008
Issued at HKT 18:56

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