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The Chief Executive, Mr Donald Tsang, today (January 22) announced a series of measures to cope with the expected wave of staff layoffs and company closures after the Lunar New Year, and to assist school-leavers who will be entering the labour market in the middle of this year.
Speaking after the third meeting of the Task Force on Economic Challenges (TFEC), the Chief Executive said the Government would adhere firmly to the strategy of "stabilising the financial system, supporting enterprises and preserving employment".
To ease the pressure of the employment market, the Chief Executive called for full co-operation between the public and private sectors to promote employment. He introduced a number of new measures with the following key elements:
- To tackle the serious unemployment situation in the decoration and maintenance sector, the Buildings Department will receive extra funding of $18 million to carry out a one-year special operation to remove 5,000 abandoned advertising signboards. Apart from creating about 170 jobs, this will improve public safety and beautify our city.
- The Internship Programme under the Innovation and Technology Fund will be further expanded, providing 600 internship places this year.
- The Employees Retraining Board will provide at least 143,000 training places this year, representing an increase of 20,000 training places over the last financial year.
- Tertiary institutions will strengthen their career services and endeavour to increase places for tutors, research fellows and postgraduate students. They will roll out more courses, particularly for professionals as well as senior and middle executives to provide them with continuing education opportunities between jobs.
- Over 20 statutory bodies will recruit some 6,000 workers and create about 2,000 temporary jobs or internship opportunities this year.
- The Government has discussed the employment situation of graduates with the Hong Kong General Chamber of Commerce and other local and international Chambers of Commerce. Some of them have agreed to introduce internship programmes and will encourage their members to provide internship places. Some are planning to offer more than 800 temporary jobs.
- The Government has explored with the Hong Kong Chinese Enterprises Association the possibility to provide internship and training opportunities on the Mainland for university graduates.
"Preserving employment" aside, another major task of the Government is to stimulate the economy. To promote tourism and retail businesses, the Government will organise a series of major and international events this year, as well as add colour to the existing ones, to enhance Hong Kong﷿s reputation as the "events capital". The East Asian Games and celebration of the 60th anniversary of the founding of the People's Republic of China will be the highlights this year.
At the district level, the Lands Department has compiled a list of vacant government sites throughout the territory which may be made available for short-term use by NGOs. If used for community purposes and supported by the District Council and relevant departments, the site will only be charged a nominal rent.
"With the State Council's endorsement of the Pearl River Delta Development Plan Outline, we will follow up immediately with the Mainland authorities to explore further opportunities for co-operation," Mr Tsang said.
"The Chief Secretary for Administration agreed with Guangdong yesterday to set up a new co-ordinating committee to strengthen our co-operation platform to steer our work in this aspect. We will draw up a plan that will best benefit the long-term development of Hong Kong," he added.
In view of the expected increase in business closures and bankruptcies, the Government has decided to adopt the recommendation of the TFEC to re-consider the introduction of a corporate rescue procedure, to provide an opportunity for companies in short-term financial difficulties but with viable long-term business prospects to turn around or restructure.
The Chief Executive noted that the proposal was debated in the business community and the Legislative Council several years ago but no consensus could be reached.
"The financial tsunami presents an opportunity for all parties concerned to strike a compromise and resume the necessary legislative work so as to minimise business closures and job losses," the Chief Executive said.
Ends/Thursday, January 22, 2009
Issued at HKT 19:09
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