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Peggy Sito

A proposal to import cheap labour from the mainland for work in a special zone close to the border is still being studied, according to the SAR's industry chief.

Secretary for Commerce, Industry and Technology Henry Tang Ying-yen said the government would have to take into account 'many considerations', such as opinion from Hong Kong labour groups, before deciding on the special zone.

Mr Tang said some business groups had raised the proposal of creating a special industrial-processing area near the Shenzhen River and the border, where cheap mainland labourers could be employed.

The scheme was among proposals raised by representatives of 31 industry and commerce bodies in a meeting on Monday with Mr Tang on ideas to revive the economy.

Included in the proposal was a suggestion that some mainland labourers might be allowed to work in Hong Kong but be able to return home on the same day. Their pay would be comparable to mainland levels.

But Chan Wing-kee, chairman of the Chinese Manufacturers' Association, questioned the benefit of importing inexpensive mainland labour.

'Many Hong Kong industries have already shifted to the mainland and it is not easy to attract them back.' Mr Chan said.

No matter how cheap labour was, operating costs of some industries such as toy manufacturing would remain higher in Hong Kong than on the mainland, Mr Chan said.

'We can study the feasibility of the proposal but it is still unknown what benefits Hong Kong would get from it,' Mr Chan said.

Mr Tang and Mr Chan were among speakers at yesterday's economic co-operation forum.

Speakers told the forum Hong Kong was playing an important role as a trade hub for the Pearl River Delta and Taiwan, especially following the accession of the mainland and Taiwan to the World Trade Organisation last year.

Andrew Kuo, senior officer for Taiwan and Hong Kong at JP Morgan Chase Bank, said Hong Kong was becoming a more popular listing destination for Taiwan and mainland enterprises to raise funds for business development in the light of the SAR's market capitalisation and free flow of capital.

Liu Shufeng, general manager of Guangdong Shengyi Science Technology, said Hong Kong was fast becoming the logistics centre for the Pearl River delta region.

Overseas enterprises preferred to arrange shipment of goods in Hong Kong as government departments on the mainland lacked co-ordination, creating uncertainties over goods delivery, Mr Liu said.



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