Proposed package does not offer realistic way out of the crisis

The Federation of Trade Unions (FTU) has proposed a HK$200 billion package to create 300,000 jobs and boost the economy. About 250,000 jobs would come from [speeding up] the 10 major infrastructure projects. FTU president and executive councillor Cheng Yiu-tong said the package was a 'small investment for a big return' ('Union proposes HK$200 billion stimulus package', November 29).

In the face of the economic downturn, such an enormous scale of job creation by the government looks comforting. But, matching the type of jobs created with what the city most needs in the near-term suggests otherwise. As most of the recent job losses have been in the finance, catering and retail sectors ('Nearly 6,000 people lose jobs in six weeks', December 1), there is not much hope that the infrastructure projects can offer short-term help. I doubt whether those who have lost their jobs would be suitable candidates for construction work.

The government's 2008 Hong Kong in Figures shows just over 300,000 people employed in the construction sector last year. When the 10 infrastructure projects are in full swing in a couple of years, the jobs created will absorb most of our existing workforce in the construction sector, assuming only local workers benefit from the proposed HK$200 billion construction package.

But then only a few workers would be left for the private sector's construction projects, thereby necessitating the import of labour. The government should carefully consider the order and priority of its 10 major projects to ensure steady and continuous employment for the construction sector over a longer time span.

These projects should not impede private developments by competing for labour when the economy is recovering.

Given the financial crisis means that more unemployment is on the way, the government should seriously consider appropriate short-term measures to stimulate the economy by boosting local consumption. Shopping vouchers and tax cuts can be effective catalysts to revitalise local business activities before things get worse.