Supplementary information
Proposed Measures in the 2010-11 Budget
for Increasing the Construction Manpower Resources
“58.We are also mindful of the ageing problem and possible skills mismatch in the construction workforce. Currently, the Construction Industry Council (CIC) strives to attract more people, especially young people, to join the construction industry through training and trade testing. Furthermore, the CIC aims to enhance the skills and competitiveness of in-service construction workers and to uplift the image of the industry through promotion and public education. Together with the industry, we will take the lead to introduce best practices in public works projects to further improve the safety, working environment and conditions in construction sites. I will also earmark $100 million to support the CIC to strengthen the relevant work, and I expect that the CIC will increase its investment in tandem with this funding to provide the necessary incentives to attract more young people to join the construction industry and to improve the practice of the industry. We believe that these measures can help attract fresh blood to the industry and meet the manpower needs of future construction projects.”
(1)Comparison of proposed measures with existing situation
(2)Capital works expenditure
(3)Unemployment situation
(4)Registration of construction workers
(5)Photos of construction workers wearing uniform
(1) Comparison of proposed measures with existing situation
In paragraph 58 of the 2010-11 Budget, the Financial Secretary proposed a series of one-off measures to attract more people to join the construction industry in order to meet the need for public infrastructure development in the near future. The new measures cover two main aspects -
-Provide incentives to attract more people to participate in construction training and retraining - This will help resolve the ageing and skill mismatch problem of the industry. It can also help advance the skill level of industry practitioners and enhance their competitiveness.
-Improve the practice of the construction industry – including requiring public works contractors to provide uniform for their workers and to proactively improve the working environment of public works construction sites. Furthermore, publicity will be conducted on various fronts to raise people’s awareness of the construction industry and to encourage them to join the industry.
Comparison between the proposed measures and present situation is shown in the table below:
Present situation / Proposed Measures / Objectives of MeasuresTo enhance the training and retraining of construction personnel
1.Enhanced “Adult Short Course”
- Trainees of full-time adult short courses ofthe Construction Industry Council (CIC) are entitled to a daily training allowance of $90, equivalent to about $2,000 per month, during the 2to 13 week training period
- Increase the training allowance to an average of $5,000/monthfor trainee of selected trades.
- Employers will be encouraged to employ graduates at a monthly salary of not less than $8,000, which will further be raised to not less than $10,000 after 6 months
- Offer more non-weekday courses to facilitate more in-service construction personnel to have the opportunity to attend the courses.
- To be more flexible in the entry requirements (such as language requirement) of these courses
- Trainees can have adequate income to support their family during the training period which can encourage more people to come forward for training.
- Trainees will know well their expected salary after graduation
2.Provide advancement training course for senior construction workers
- Not available
- To provide free language and basic management training courses to senior construction workers to increase their advancement opportunities
- Provide appropriate training to senior construction workers to assist them to advance to frontline management level, which can in turn increase the attractiveness of the construction industry
3.Raise the training allowance of Construction Supervisor / Technician Programme
- Trainees receive a training allowance of $2,315/month (equivalent to about $105/day) during the training period
- Increase training allowance to $150/day (equivalent to about $3,300/month) during the training period
4.Provide subsidy for fees of trade tests and specified training courses
- Applicants for CIC’s trade test have to pay a test fee. Most of trade tests are charged at $500/test
- Applicants for Specified Training Courses under the Contraction Workers Registration Ordinance need to pay the course fee. Most of the courses are charged at $500/class.
- Applicants of selected trade tests will be subsidised with not more than $500/test
- Applicants for selected Specified Training Courses will be subsidised with not more than $500/class
- To attract more people to take the trade tests and to enable the industry to clearly know the manpower supply of relevant trades
- To attract more people to attend the Specified Training Courses so as to enable them to qualify for registration as skilled workers
Improve the Culture of Construction Industry
5.Improve the safety, working environment and conditions in public works construction sites
- Provisions are stipulated in existing public works contracts requiring contractors to safeguard construction site safety and working environment
- Include provisions in public works contracts requiring contractors to improve site working environment for workers
- Enhance measures for safeguarding site safety
- Improve existing measures for security of payment
- Measures can further enhance safety, working environment and conditions of public works construction sites which in turn can attract more people to join the construction industry
6.Require public works contractors to provide uniform for site personnel
- The Government has already conducted trials in some public works projects requiring contractors to provide uniform for their site personnel with positive response from contractors and workers
- We shall gradually extend the measures to other public works projects.
- Wearing uniform can create a tidy, systematic and professionalimage, and can help uplift staff morale and team spirit
- A clear identity can make it easierto differentiate different roles of staff, thereby facilitating industrial safety and security management
(2)Capital works expenditure
The Government strives to promote economic development through pushing ahead public infrastructure development. As a result, more employment opportunities are createdfor the construction industry. We are pushing ahead with public works projects of small, medium and large scale. In the past year or so, the progress of the Ten Major Infrastructure Projects has been satisfactory. Projects including the Kai Tak Development, the Hong Kong-Zhuhai-Macao Main Bridge andthe Hong Kong section of theGuangzhou-Shenzhen-Hong Kong Express Rail Link have already entered into construction stage. Large scale projects which are expected to commence in 2010-11 financial year include the Kai Tak Cruise Terminal Building,Harbour Area Treatment Scheme Stage 2A remaining works (Upgrading of Stonecutters Island sewage treatment works and preliminary treatment works), Indoor Velodrome-cum-Sports Centre in Area 45 of Tseung Kwan O and Expansion of Tai Po Water Treatment Works.
Government’s works expenditure in the annual budget is a common indicator for measuring infrastructure development. The increase in this aspect is very remarkable: increase from $20.5 billion in 2007-08 to $23.4 billion in 2008-09; the revised estimate for 2009-10 will further increase to $45.1 billion, 14% above the original estimate of $39.3 billion. The capital works expenditure estimates in 2010-11 will be as high as $49.6 billion, which can create about 62,500 job opportunities, comprising 6,600 professional and technical posts, and 55,900 worker positions. This is 15,400 more than in the 2009-10.
The capital works expenditure of $49.6 billion has included expenses for minor works. In 2009-10, the total estimated expenditure for minor work is $8.61 billion. In 2010-11, the overall allocation will maintain at a high level, reaching $8.53 billion.
The chart below indicates Government expenditure on the capital works programme for the past 10 years.
(3)Unemployment situation
The continuous improvement to the unemployment situation of the construction industry bears testimony to the achievement of our public infrastructure development. The overall unemployment rate of the construction sector has dropped from its peak of 12.7% (February to April 2009) since the financial tsunami to the latest released figure of 7.4% (November 2009 to January 2010). The unemployment rate of the foundation and superstructure sector has dropped from its peak of 10.2% (February to April 2009) since the financial tsunami to the latest released figure of 6.7% (November 2009 to January 2010). On the other hand, the unemployment rate of the repair and maintenance sector has dropped from its peak of 21.6% (February to April 2009) since the financial tsunami to the latest released figure of 9.6% (November 2009 to January 2010).
The total number of persons employed by the construction sector has increased from its lowest point (February to April 2009) of 257.300 since the financial tsunami to the latest quarter (November 2009 to January 2010) of 278,100, an increase of 20,800 people (increment 8.1%). For the foundation and superstructure sector, the number of employed persons has risen from 206,600 (February to April 2009) to the latest quarter (November 2009 to January 2010) of 212,500, an increase of 5,900 people (increment 2.8%). As for the repair and maintenance sector, the number of employed persons has risen from 50,700 (February to April 2009) to the latest quarter (November 2009 to January 2010) of 65,700, an increase of 15,000 people (increment 29.6%).
The chart below shows the change in unemployment rates of the construction sector and all sectors since the financial tsunami in 2008.
(4) Status of construction workers registration (up to 31.1.2010)
According to the Construction Workers Registration Ordinance, registered construction workers are divided into five types viz. skilled workers, provisional skilled workers, semi-skilled workers, provisional semi-skilled workers and general workers. Starting form 29 December 2005, the Construction Workers Registration Authority started to process registration applications for construction workers. Up to end January 2010, the number of valid registered workers is about 269,100. The table below provides a breakdown of the registration status of workers-
Registration Status / No. registered / PercentageRegistered Skilled Worker / 86,300 / 32%
Registered Skilled Worker (Provisional) / 6,600 / 2%
Registered semi-skilled Worker / 13,400 / 5%
Registered semi-skilled Worker (Provisional) / 1,200 / 1%
Sub-total for skillful workers / 107,500 / 40%
Registered General Workers / 161,600 / 60%
Total / 269,100 / 100%
(Source : Construction Workers Registration Authority)
(5)Photos of construction workers wearing uniform