Jake's View | Keep wages down and we will all pay in the end

Labour and Welfare Secretary Matthew Cheung Kin-chung said the city should explore new ideas to bring in more non-local workers ...

I think the union people are right on this one. Sure, bring in some people with special skills when truly needed but if "explore new ideas" means relieving the wage pressure on employers with cheap migrant labour, then no. All it means is greater income polarity.

Just look at how it works in Macau. They handed out casino licences there to the big gambling operators for free on the reasoning that the benefits would come through a booming economy and jobs for all.

They came that way all right - a booming economy for the gambling lords and jobs for anyone who cared to come to Macau. More than 35 per cent of the workforce is now non-resident. But go for a walk in the old harbour districts or in Coloane village and you get the feeling that some of the long-time residents can barely afford shoes.

The point about being a First World city is that people have to make some wrenching changes in expectations to achieve it. Imagine that instead of dithering over whether we can raise the minimum wage from HK$30 an hour, we make the immediate jump to the Canadian level, HK$77 an hour. Add further costs for unemployment insurance and workers compensation.

Would that be a bit of jolt, do you think? Then try a minimum wage of HK$95 an hour for Belgium at present exchange rates. What about HK$118 an hour for Australia?