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Following is a speech by the Secretary for Trade & Industry, Mr CHAU Tak Hay, in the debate on the "Motion of Thanks" in the Legislative Council today (Wedn esday):
Madam President,
Introduction
I am very grateful to all the Members for putting forward a lot of comments and recommendations on our industrial, technological and trade policies as set out in the Policy Address.
Innovation and Technology
We are especially encouraged by Members' general support to the Government's vision of promoting innovation and technology. In fact, Hong Kong has already become a knowledge-based economy. To enhance our competitiveness in the international market, we must always strive for innovation and technology to improve our productivity. Apart from Government efforts, support and co-operation of the business sector and the community as a whole are also of vital importance to the promotion of innovation and technology. Therefore, Members' approval and support to the development targets and new measures in this area as outlined in the Policy Address will contribute positively to the development of high value-added activities and enhancement of productivity in Hong Kong.
Now, I would like to respond to Members' advice and comments on how to realise this ambitious vision. First of all, "technology" is not as vague and remote as some people might think. The type of technology we advocate is one which can be used in our daily life and in improving the quality of our products and services. It will benefit both the consumers and the business sector by providing the former with services of higher quality on one hand and enhancing the latter's efficiency on the other. We have no wish to pursue high technology indiscriminately. Instead, our focus is on how to promote economic development through proper technological application. It is also worth mentioning that innovation is not confined to technological development. In fact, it covers many areas of business activities, as well as activities undertaken by individuals or organizations. At present, many local businesses have gradually started to increase their added value through innovation and technology, constantly bringing us new or improved products and services. Our vision of promoting innovation and technology, therefore, is a pragmatic and far-sighted development strategy for Hong Kong.
Secondly, the promotion of innovation and technology is not restricted to new industries or areas applying state-of-the-art technologies. Through the development of new products and the adoption of new production technologies and marketing strategies, some so-called "traditional" industries, such as garment, toy and plastics industries, can also greatly enhance their productivity and competitiveness and create opportunities for business development. Therefore, we believe that innovation and technology can provide various trades and sectors with a strong and broad base for development.
The new initiatives announced by the Chief Executive in his Policy Address this year aim at building a more solid foundation for the future technological development of Hong Kong, in a way that the business sector can operate and develop business in a better environment which caters for the future development of our economy. The Trade and Industry Bureau and all relevant departments are looking into ways for the effective implementation of these initiatives. For instance, the Industry Department will shortly set up a planning group to prepare an outline plan for the establishment of the Applied Science and Technology Research Institute. We are also working on the details of the Innovation and Technology Fund and we intend to apply for funding from the Finance Committee of the Legislative Council in a few months' time. In addition, we will launch our work in promoting technological collaboration and exchanges with research institutions in the Mainland. The support of Members and various sectors in the community to these initiatives is very important.
Many Members are of the view that building up necessary human resources is an important element in the promotion of innovation and technology. The Government shares this view. In the next few months, the Commission on Innovation and Technology will focus its attention on how to encourage local young people to pursue a career in technological research and development and industrial application. It will also examine how to attract technological talents from the Mainland and other places to work in Hong Kong.
A robust regime to protect intellectual property rights is indispensable for making Hong Kong a centre of innovation and technology. The Government will continue to do its utmost to fight against piracy and strengthen public education on intellectual property rights.
Small and Medium Enterprises (SMEs)
Many Members are particularly concerned about the implementation of the Special Finance Scheme for Small and Medium Enterprises and have made a lot of recommendations on its improvement. The Government fully understands the concerns and expectations of the community on the Scheme. So, before we mapped out the details of the Scheme, we had widely consulted Members, political parties, the banking and business sectors and SME organizations to make sure that under the principle of prudent use of public funds, the Scheme could serve to ease the credit crunch faced by SMEs.
Since the introduction of the Scheme on August 24, the Government has been closely monitoring its performance and progress as well as soliciting the views of various sectors on its operation. Thus, it can be said that the review of the Scheme is already in the pipeline. Since the introduction of the Scheme, the number of applications has been growing and there are many financial institutions participating in the Scheme. However, in view of the fact that the Scheme has come into being for just a while, we deem it more appropriate for the Scheme to operate for a longer period of time so as to allow time for the relevant Government departments as well as financial institutions and SMEs participating in the Scheme to acquire adequate experience before we start considering ways to improve the overall Scheme. Therefore, we intend to conduct a more comprehensive review in early 1999. During the review, we will certainly take into consideration all views expressed by Members and other interested parties on the implementation of the Scheme.
Moreover, the Industry Department is actively preparing for the establishment of Small and Medium Enterprise Office, which aims at helping SMEs make good use of various services specifically provided for them.
Promoting Trade and Investment Liberalisation
Hong Kong has been an active supporter of trade liberalisation. We understand that a multilateral trading system which is stable, rule-based, open and non-discriminatory is very important to Hong Kong, a small economy relying heavily on external trade. For this reason, we have been playing an active and constructive role in the World Trade Organization (WTO) to secure the best market access opportunities for our traders. In this regard, we have not only made constructive contribution to the discussions of various committees under the WTO, but also played a leading role in multilateral negotiations on areas such as basic telecommunications and financial services.
In addition, we have participated actively in the two WTO Ministerial Conferences. Our contribution to the two Conferences has won praises from other WTO Members. The Third Ministerial Conference will be held in the U.S. in late 1999. We aim to get WTO Members to agree at the Conference to launch a new round of comprehensive and balanced multilateral trade negotiations so as to further the liberalisation of trade and investment. We are of the view that further tariff cuts should be one of the issues for negotiations.
For this purpose, Hong Kong and a group of like-minded WTO Members who has been actively pursuing the idea of launching of broad-based multilateral trade negotiations agree to meet periodically in order to strengthen co-ordination. Ministers of Trade or Economic Affairs of these WTO Members agree to hold an informal ministerial meeting in Hong Kong, China on November 20, 1998. As the host of the meeting, Hong Kong, China will work closely with other Ministers to discuss how to liaise with other WTO Members supporting a new round of multilateral trade negotiations and how to prepare for a new round of negotiations. We expect the meeting would provide positive contribution to pursuing the launching of a new round.
Competition Policy
On competition policy, some Members voiced their opinions on the work and membership of the Competition Policy Advisory Group (COMPAG). Having been established for less than a year, COMPAG has accomplished an important task in the formulation and promulgation of a "Statement on Competition Policy" in May this year. The Statement clearly sets out the objectives of the Government policy on competition and establishes a comprehensive, transparent and broad policy framework on competition. In conjunction with Policy Bureaux, COMPAG is reviewing Government practices from a competition policy standpoint to ascertain the extent to which competition can be enhanced. If necessary, relevant experts will be invited to join the discussions of COMPAG.
Consumer Protection
Finally, I would like to turn to consumer protection. The Government has always attached great importance to consumer protection. It has also introduced a package of legislation to enhance consumer protection. Consumers are now well protected in general dealings. Next year, we will start the drafting work of a law which will enable consumers to claim compensation from producers, retailers etc. for loss arising from the use of unsafe products. As to the concerns expressed by some Members on prepayment, we have recommended that this subject be referred to the Law Reform Commission for its full study.
Thank you.
End/Wednesday, November 4, 1998
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