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SLW's transcript on Lump Sum Grant Subvention System and bar benders' strike
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    Following is a transcript of the remarks by the Secretary for Labour and Welfare (SLW), Mr Matthew Cheung Kin-chung, at a stand-up media session today (September 5) on the Lump Sum Grant Subvention System and bar bendersˇ¦strike:

Reporter: I have a couple of questions. The first regards the social workersˇ¦ call for a review of the lump sum grant system and request for a pay rise.

SLW: First of all, I do appreciate the sentiment of the welfare sector, particularly the frontline workers. In the last two months since I assumed office, I have been in very close touch with the frontline workers as well as the management of the NGOs. I have also met officials of the Hong Kong Council of Social Service. So we are in close dialogue. What we have done now is actually to address their concern and to analyse their problems and challenges. We have decided to reconvene the Steering Committee on Lump Sum Grant chaired by the Director of Social Welfare. The committee met already last week and will be meeting again shortly this month. The objective of this exercise is really to delineate the problems that they face, particularly now that the lump sum grant system has been in operation for almost seven years. We recognise that it is time for us to take a look at the system itself and identify any room for improvement and any room to enable the system to run more effectively.

Reporter: Not the system itself ˇK  

SLW: On the basis that the system will remain, we are looking for room for improvement. This is a very important thing. No body wants to scrap the system. When we talk with the NGOs, over 90 per cent of the NGOs are in favour of retaining the system because it provides flexibility, it provides room for manoeuvre and also enables them to respond robustly to demand for social service. So the beauty of the whole system is that it is flexible and it is also responsive and robust. I think no one in the right mind would say let's do away with it. What they really want is to improve upon it, particularly from the resource angle. This is in fact what I am doing now. The Director of Social Welfare has reactivated the Steering Committee with the objective of finding room for improvement. This is the way we are moving now.

Reporter: Is there any room to find more money to give them a pay increase ......?

SLW: In the wake of the recent civil service pay rise, we will be allocating the same percentage in terms of civil service pay rise equivalent to the subvention of the organisation concerned. In other words, they will also benefit from the latest round of civil service pay rise.

Reporter: Would you say a few words about the bar benders?

SLW: Yes, I would like to say a few words about the bar benders. In the last few weeks, together with my colleagues in the Labour Department, I have been leaving no stone unturned in trying to mediate, to bring both sides back to the negotiating table. We have been doing a lot behind the scene. This is the normal role played by the Government and also the Labour Department in mediating labour disputes in the private sector. What we are doing now is actually to try our very best to persuade both sides to get back to the negotiating table as soon as possible to reach a consensus and put an end to this long-running saga. I appeal to both sides to remain rational, calm and also show mutual understanding so that they can really get round the table and continue the dialogue. This is very important.

Reporter: ˇK

SLW: At the moment we reckon that every day about a few thousand workers are in fact going back to work. That's why my appeal is actually to put an end to this dispute as soon as possible in everybody's interests.

Reporter: about labour disputeˇK

SLW: Hong Kong used to enjoy excellent labour relations, this is something we will have to treasure.  The long running strike of the bar-benders is quite unusual. I appeal to everyone, employers, workers and everybody concerned to put this to an end.  

Reporter:ˇK

SLW: It is still an isolated case, it's complex because it involves a large number of contractors, in fact, the association involved is made up of 39 different contractors of various sites. It is important for us to show our understanding. Despite the economic recovery, the contractors are facing difficulties in many ways, in terms of volumn of work and employment. I urged people to really show understanding.

(Please also refer to the Chinese transcripts.)

Ends/Wednesday, September 5, 2007
Issued at HKT 22:25

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