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Following is the question by the Hon Kwong Chi-kin and a written reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (June 15)(translation):

Question:

Regarding whether a statutory minimum wage system should be implemented in Hong Kong, will the Government inform this Council:

(a) of the number of meetings held so far by the Labour Advisory Board to discuss this issue, and whether any preliminary conclusions have been reached;

(b) of the progress of the research on this issue conducted by the Administration, and which countries' experience in implementing a minimum wage system it has referred to, in particular the impact of such a minimum wage system on the economic development and social stability of these countries; and

(c) whether the Administration has drawn up any timetable for formulating and implementing a minimum wage system; if it has, of the details; if not, the reasons for that?

Reply:

Madam President,

(a) The Labour Advisory Board (LAB) first discussed the issue of minimum wage at the end of last year and has held three meetings so far.  During this period, the LAB has analysed and discussed the pros and cons of introducing a minimum wage system, the employment earnings of local employees and the experience of other places in implementing a minimum wage system.  The discussion is still underway and the LAB has yet to reach a preliminary conclusion on the issue.

(b) In studying the issue, the LAB has made reference to the employment earnings of local employees and evaluated the possible impact of the minimum wage system on Hong Kong?s overall economy as well as on employers and employees.  In the course of its deliberation, the LAB has considered the situations in a number of economies, including the Mainland, Japan, South Korea, Singapore, India, Australia, the United States, Canada, the United Kingdom, France, Germany, Finland and Ireland, etc.

Generally speaking, many western economies with statutory minimum wage systems are moving towards greater flexibility in the labour market to increase their competitiveness.  In some places which have adopted the minimum wage system, the governments concerned grant exemptions or make special arrangements, e.g. setting a lower statutory wage level in order to promote employment for, and protect, certain categories of people such as apprentices, trainees, young employees and disabled workers.

(c) Given the complexity of the issue of minimum wage and its far-reaching impact on Hong Kong's socio-economic development and the divergence of views within the community, we consider it inappropriate to set a timetable for discussion and implementation of this important issue.  We should allow sufficient time for the LAB to explore and discuss the issue in depth and try to reach consensus.  Before the implementation of any proposal concerning the minimum wage system, we must secure the consensus among employees, employers and the Government, as well as the support of the Legislative Council.

Thank you.

Ends/Wednesday, June 15, 2005

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