Rents would have to drop by another 40 per cent by 2000 for Hong Kong to regain its competitiveness, a leading businessman claimed yesterday.
Michael Tien Puk-sun, chairman of the G2000 Group and member of the taskforce on employment, said salaries would have to be cut by about 30 per cent, although he thought 20 per cent would be enough for his own salesman.
He said the economy would rebound when Hong Kong regained competitiveness through a reduction in costs.
However, a unionist colleague on the taskforce disagreed, sparking a heated debate during yesterday's meeting.
Ms Tang of the Confederation of Trade Unions, said she opposed the government, academic and employers' representatives at the meeting who said they wanted salaries cut.
'The cost of living has not decreased,' she said.
