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About 440 applications from the catering industry have been approved under the $3.5 billion Government Low-interest Loan Guarantee Scheme for industries worst affected by SARS, said the Permanent Secretary for Economic Development and Labour (Labour), Mr Matthew Cheung Kin-chung.

He said the loans approved totaled more than $250 million and would benefit some 10,000 employees.

Speaking at the 33rd Anniversary and Inauguration Ceremony of the Eating Establishment Employees General Union today (August 12), Mr Cheung said that the outbreak of SARS earlier this year had had an unprecedented impact on the catering industry. Fortunately, trade unions, employers' associations and the Government had responded swiftly, meeting in April to address the problems.

The Government also introduced the low-interest loan guarantee scheme to preserve thousands of jobs.

"The concerted efforts of employers, employees and the Government helped tide the catering industry over its most difficult period in the last 30 years," he said.

Mr Cheung said that the Government had earmarked $210 million to implement the Skills Enhancement Project to help workers employed in sectors that were hit hard by SARS.

The scheme provides 15,000 training places and is designed for unemployed workers in the catering, retail, tourism, hotel, decoration, land transportation real estate sectors who are temporarily suspended from employment without pay. It provides training opportunities to enhance their skills.

"The scheme is well received by the catering industry. More than 3,500 training places have been allocated for employees in the industry. Over 1,200 employees have completed training and the remaining 2,300 are currently receiving training," Mr Cheung said.

Mr Cheung pointed out that in the face of high unemployment, the Government had introduced a number of training and job creation initiatives to help people of different age groups and academic qualifications secure employment. These include the Re-employment Training Programme for the Middle-aged, the District Employment Programme for the Middle-aged and the Graduate Employment Training Scheme. About 15,500 people are expected to benefit from these programmes.

"The answer to unemployment in Hong Kong lies in the overall revival of the economy. The Government has launched various measures to stimulate economic development, improve the business environment and promote Hong Kong to attract investors and tourists," he said.

Mr Cheung added that the Mainland/Hong Kong Closer Economic Partnership Arrangement would bring numerous business opportunities to Hong Kong. The "free individual visit" arrangements for residents from the Mainland would also benefit the catering, tourism and the consumer industries.

End/Tuesday, August 12, 2003

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