Local designers require more aid from government

By Florence Wong & Cherry Cheung

The government has invested high hopes in the development of the
creative industries to rescue Hong Kong from the present economic slowdown. However, it has been criticized for providing insufficient financial assistance to the industries.

Prof. Mark Green of the School of Creative Media at City University of Hong Kong said, “It is difficult for new small scale companies to obtain capital.

“The government provides very little subsidies to support creative industries.”

According to Chris Luk, the founder of Plastrons Ltd., the government tends to prefer granting subsidies to companies that engage in scientific research.

“These companies have collateral such as plants and equipment, so the government think it’s less risky to grant them subsidies.

“But most entrepreneurs in creative industries do not have fixed assets.

“What we sell are creative ideas. So it is very difficult for us to compete for funds with them,” he said.

The government stated in its Central Policy Report that its role in promoting the industries lies not in the provision of direct financial assistance.

Financial assistance from the government would only be in form of matching funds to encourage investment in the industry. An example of matching funds from the government is the Film Guarantee Fund, set up in November last year. The fund would be used to provide guarantees for loans approved by participating lending institutions for local film productions.

However, only film companies which produced at least three films between 1992 and 2001 for local commercial theatrical release can apply for the loan. New companies are not eligible, unless there are producers or directors working in the companies with the same experience.

Since the fund’s launch in April, only two film companies have successfully obtained funds. The total amount of funds obtained amounted to $7.18 million.

Despite the government’s efforts to promote the film industry, Petula Wong, project coordinator for Central Digital Pictures, said the aid from the government is still inadequate.

Ms. Wong said, “It seems that the government has spent a lot (of money) on holding functions to promote the industries.

“But I think it’s more practical for them to give us direct financial assistance.”

According to her, one practical way for the government to give help to the industry is to purchase facilities and rent them to entrepreneurs at reasonable prices.

Ms. Wong criticized the government for investing large sum of money in education.

“These colleges and educational institutions are not running businesses. Many investments in equipment in these institutions are wasted,” she said.

Alan Yip, chairman of the Hong Kong Designers Association, also thinks that the government’s support for the industries is not enough.

“In other countries, there are incubation centers, where rents are lower, for ambitious designers to develop their careers. But there are no such centers in Hong Kong,” said he.

Management is another problem faced by creative personnel who do not have managerial experience.

To assist them, the Hong Kong Productivity Council and the Hong Kong Trade Development Council provide the industries with business advice, consultations and 24-hour online information services.

The Trade Development Council also organizes seminars to invite successful businessmen in industry to share their successful marketing strategies with other industrialists.

Local support is essential for creative industries.

Yet, Mr. Yip said, “Hong Kong people are not willing to invest in local designs.”

He criticized the government for not making good use of local design talents.

Though the government realizes the importance of cultivating a sense of appreciation in society through education, the effort is not much appreciated.

Koon Wai Yee is an artist who makes 3-dimensional decoupage.
She said, “Schools usually teach only physical skills like drawing, cutting and pasting.

“Students lack intellectual training in how to appreciate art, which involves the process of creative thinking.”

In addition to business assistance, the protection of intellectual property is also important for the creative industries to flourish in Hong Kong.

According to a speech at the Creative Cities Conference by Patrick Ho, secretary of the Home Affairs Bureau, the Hong Kong government is very good at protecting intellectual property.

The copyright ordinance of Hong Kong states that protection is not subject to registration for trademarks or patents. Protection is granted once a creative idea is recorded in any form.

Yet, Mr. Luk is disappointed by the government’s efforts in protecting intellectual property.

“I found that my design was copied by somebody. I sought help from the Intellectual Property Department, but I was told to seek legal advice myself,” he said.

The government has revealed its plan for future development of the industries in the Central Policy Unit Report.

The report states that the industries should first extend to the Mainland,with the Pearl River Delta as a stepping-stone.

The Closer Economic Partnership Arrangement, signed with the central government in September, allows for local products to enter the Mainland market without being tariffed.

Ms. Wong said that the government should not only concentrate on developing the industries in the Mainland, but should also help to promote the industries in foreign countries.

She said, “We should show foreign investors that there are a lot of creative talents in Hong Kong.”

Agreeing with her, Mr. Yip said, “The government should promote successful designers overseas by putting them onto the world platform.

“This also would help to promote the image of Hong Kong.”

Hong Kong Designers Association head Alan Yip says
government should do more to promote local designers.
(Cherry Cheung)

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