8 March 2004

Mr Frederick Ma Si-hang
Secretary for Financial Services and Treasury
Financial Services and the Treasury Bureau
8/F., West Wing
Central Government Offices
Hong Kong


Dear Fred,

Implementation of paragraph 38 of the 2004 Policy Address

I write to inquire the progress in executing the initiatives regarding public works as stated in the paragraph 38 of the Chief Executive¡¦s 2004 Policy Address.

The paragraph 38 of the 2004 Policy Address reads, ¡§the government plans to earmark an average of $29 billion per year for capital works projects for the next five years¡K. Apart from providing funding for the preliminary feasibility studies of these projects, we have also secured recurrent funding for their operation.¡¨ According to my understanding, the Chief Executive¡¦s initiative is to reverse the policy as laid down in a circular issued in August 2002 by yourself calling for suspension and cancellation of some infrastructure projects and maintenance works and requiring all Works Group departments to find their own funding for the recurrent expenditure of any project they intend to undertake. However, no new directive has so far been issued by your office or the Administration to the Works Group departments to put the new policy into effect.

Apart from this, I see no signs that the government is going to put up more Category B (design) and Category C (planning) items to the Public Works Subcommittee and the Finance Committee. All these indications give me the impression that the government is not going to live up to its promises made in paragraph 38 of the Policy Address.

As stated in the paragraph 38, on average 4,200 professional and technical employment opportunities per annum are at stake. I believe that your office owe us an explanation as to what has happened to the delivery of the initiatives as suggested in paragraph 38.

I look forward to receiving your prompt response.



(signed)
Ir Dr Raymond Ho Chung-tai


cc: Ir Charlton Wong ¡V Chairman, The Association of Consulting Engineers of
Hong Kong
Ir Billy Wong ¡V President, The Hong Kong Construction Association Ltd
Ir James Chiu ¡V President, The Hong Kong Federation of E & M
Contractors Ltd



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