1. We welcome the opportunity to be consulted on the subject of unemployment, and we appreciate the government's initiative to explore ways and means of creating jobs. The following views are the result of consultation among members of the HKCSI.

2. Whilst we are sympathetic to those who have lost their jobs, we have to emphasise that government should not be tempted into interfering with market forces. Projects must not be started simply to provide employment – they must have economic value and purpose.

3. It has to be recognized that when economic difficulties lead to a downturn in business and therefore in revenues, many employers take a short term view and may terminate staff in order to save costs. However, the current downturn, although likely to be extended in some sectors such as retail and tourism, might be more moderate in others. Employers in these sectors should be encouraged to retain staff during the period, albeit on a short term or part-time basis, so as to ensure that they are ready to take advantage of improved conditions. Companies should also be encouraged to use part time staff more in place of overtime. As to how employers should be encouraged, we remain convinced that the best means would be through moral suasion rather than government pressure.

4. Part of the reason why jobs are cut is to lower cost and improve efficiency. In this regard government could take a lead this year in foregoing pay rises to send a clear signal to the private sector. This action could alleviate some of the pressure on cost for the private sector.

5. Training and re-training has been an area of some debate since the last economic downturn. We believe the only sustainable approach is to provide appropriate training for viable jobs in sectors able to support increased employment; training for the sake of training is simply a waste of time and public money. The opportunities and specific areas of training should be the subject of immediate research. The level and type of training required should be agreed with employers prior to commencement of training and new trainees should also be aware of their job opportunities (and their likely pay levels) in advance.

Infrastructure

6. In general, jobs could be created in connection with essential infrastructure projects and other viable developments (such as an accelerated programme to build schools).

7. In addition, there are particular areas where jobs are being lost due to a lack of trained staff. A particular skill that is in short supply is that of draughtsmen. In the past the Hong Kong Polytechnic ran courses for draughtsmen, but these ceased when it became a University. The available people are now little more than computer operators with little understanding of how to put a drawing together. As a result many consulting firms are resorting to having work done outside of the SAR (in mainland China, Manila, etc). Although this is done partly because costs can be reduced it is also a necessity because resources are not available in Hong Kong. Reintroduction of a suitable training course would help provide the necessary technicians and hence contribute to job creation.

Environmental sector

8. There is a perception among the community that environment quality of Hong Kong such as water and air quality has deteriorated significantly over the last 10 years. It would therefore pay to train more engineers, mechanics and others to work on improvement in air and water quality, such as improving the efficiency of engines of buses, taxis, lorries and other vehicles that use diesel engines. At the same time, phasing out diesel for liquefied petroleum would create work for a short time, so its introduction should be speeded up.

Health Services

9. In the past few years the quality of service provided in Hong Kong hospitals has deteriorated greatly, frequently due to a reduction in staff numbers. Not only have doctors left the public hospitals, so also have nursing staff. Often this has been due to the significant increase in their non-medical workload. Hong Kong has the resources to provide the best medical facilities in Asia. It can do this through improving its staffing, clinics and other services, either through more resources to the Hospital Authority or through liberalisation so as to bring more market forces into the medical services sector.

Financial and investment services