21 September 2004

The Honourable Tung Chee Hwa
Chief Executive
Chief Executive's Office
Central Government Offices
Lower Albert Road
Hong Kong

Dear Mr. Tung,

I refer to the meeting that you had with me and five other independent LegCo members of the 3 rd term on 17 September 2004 . At the meeting, I raised a number of points with you. Following is a recapitulation of these points for your early actions.

Implementation of paragraph 38 of the Policy Address

While your commitment to spend more in infrastructure development is highly commendable, the slow progress in implementing the initiatives embodied in the paragraph 38 of your 2004 Policy Address is nevertheless particularly worrying.

As you appreciate, all infrastructure projects start with preliminary feasibility studies, design and planning work prior to construction. The number of Category B and Category C projects is therefore a good indication of the volume of the capital work projects being undertaken in the future. The dwindling number of Category B and Category C projects being dished out by the government has cast doubt on its commitment to spend $29 billion per year for capital works projects for the next five years. The fact that the Works Group departments are not provided with the recurrent funding/consequences as promised naturally adds fuel to our suspicion. Indeed, the growing divergence between your original initiatives and their implementation warrants your urgent attention.

I strongly urge you to commence as soon as possible the 160 projects worth $20 billion previously undertaken by the two abolished municipal councils as these projects are related to the quality of life of the people in Hong Kong and can create many employment opportunities.

Proceeds from bond sales to finance additional infrastructure development

In order to make a meaningful impact on the local economy, the $6 billion proceeds from the securitisation of 5 government-owned tunnels and the Tsing Ma Bridge and another $20 billion bond issuance successfully launched recently must be used for infrastructure projects other than or in addition to those totaling $29 billion already earmarked. Starting infrastructure projects will spur our economy and create employment. Under no circumstance should the government use these monies to finance the current deficit.

Government-led initiatives to help local construction and engineering sectors to tap into the Mainland market

HKSAR Government's inability to assume a leading role in helping local construction and engineering sectors tap into the Beijing market arising from the 2008 Olympic Games has disappointingly put local firms and companies in a very disadvantaged position. It is widely known that many foreign companies winning contracts in Beijing were given a head start with the assistance of their governments including high-level delegations led by their prime ministers.

Learning from the lesson, the government should take the lead in helping Hong Kong companies to win construction and engineering contracts from Guangzhou for its 2012 Asian Games. It has been announced that there would be $200 billion infrastructure projects and building works put out to tender. If necessary, a high-level delegation led by your goodself should be arranged without delay. We must not let another chance slip by.

Meanwhile, the government should also help local construction and engineering companies to take full advantage of the Mainland market opportunities created under the Pan-Pearl Rive Delta Regional Co-operation and Development Framework Agreement, involving 9 provinces, HKSAR and Macau SAR

Civil service's concerns about Public Private Partnership (PPP)

Civil service is one of the pillars of Hong Kong . Their morale has therefore an important bearing on the well-being of our society. Government's push for PPP arrangement for existing projects and facilities has caused anxiety among civil service as their implementation might cost them jobs affecting their livelihood. Their fears have escalated when some candidates tried to capitalise on this during the recent LegCo Election. Their morale will definitely be adversely affected if the government fails to address their concerns about PPP, particularly when the government fails to provide any dialogue and lacks transparency resulting in loss of trust and confidence of the civil servants concerned.

Recognition of railway experience

There have been some unfortunate grievances from our Resident Site Staff due to no recognition of their experience gained with the two railway corporations MTRC and KCRC when they apply to take up supervisory employment for government projects. This is very unreasonable as railway experience is very substantial engineering experience. I suggest that this anomaly be rectified immediately.

Visit of LegCo Members to Beijing

Last September in Beijing , I suggested to state leaders that you should head a delegation consisting all 60 LegCo members, regardless their political orientation, to visit Beijing in order to strengthen the communication between the Central Government and the local legislature. Indeed, the same suggestion has been made by a senior NPC delegate not so long ago. I believe that it is time for you to re-visit my suggestion as all 60 members have been duly elected to the third Legislative Council in accordance with the Basic Law.

Implementation of Article 23 of the Basic Law

I share with your view that you are putting emphasis on economic development and therefore suggested at the meeting that maybe you would not process the legislation of Basic Law Article 23 during the remaining of your term.

I look forward to receiving your favourable response.

(signed)
Ir Dr Raymond Ho Chung-tai