Secretary for Commerce & Economic Development Rita Lau has pledged the Government will help Hong Kong manufacturers deal with Mainland policy adjustments.

Speaking after the seventh meeting of the Task Force to Support the Processing Trade today Mrs Lau said the Government is aware Hong Kong-owned enterprises are facing tough challenges arising from policy adjustments and new measures on the Mainland as well as other economic factors.

 "Since the task force was established last year a lot of work has been done through meetings or other channels. We have provided the trade with the latest information on the policies and measures at both central and provincial government levels, and reflected to the relevant authorities the views and suggestions collected from the trade," she said.

Mainland authorities now have a better understanding of the difficulties faced by the trade and relief measures are being prepared. These included allowing enterprises to fulfil the standing book deposit requirement by bank guarantees to alleviate their cash flow pressure; permitting enterprises to carry over their original imported equipment to new companies; Guangdong province's issuing of guidelines to implement "restructuring without halting production"; and, adjusting the export tax rebate of products like textiles and garments from 11% to 13%.

 "To encourage Hong Kong factories to relocate their operations, the Government and related organisations have arranged visits to a number of reception sites for the processing trade designated by the Ministry of Commerce, including Chenzhou in Hunan, Ganzhou in Jiangxi, Wuhan in Hubei and Nanning in Guangxi. This enabled entrepreneurs to reflect directly their needs and concerns to the local government," she added.

Mrs Lau also briefed members on other issues, such as her visit to Beijing last week where she met officials to exchange views on the Central Government's latest policy direction on processing trade.