Remarks on
“Motion of Thanks”
(Session 5: Environmentally Responsible Development)
(Policy Areas: Housing; Planning, Lands and Works;
Environmental Affairs and Transport)
at the Legislative Council
on 28 January 2005

Madam Deputy to the President,

Generosity is obviously one of the virtues of our Chief Executive. Even in his annual Policy Address, Mr Tung always tries to give or promises to give LegCo members at least one or two items on their wish lists in the past 8 years, hoping to keep them quiet.

As for me, he promised in his policy address of last year to provide government departments with recurrent consequences for their capital works projects. In his 2005 Policy Address just delivered, he gave a green light to resume 25 of the 169 projects left over by the two defunct Municipal Councils. In fact, I have been asking for the resumption of all these projects since the dissolution of the two Municipal Councils in late 1999.

As an extra bonus, he promised last year to increase the annual spending on capital works projects from $27 billion to $29 billion for the following five years. And he reiterated his commitment to the annual allocation of $29 billion for capital works in his latest Policy Address.

More public works to spur the economy

But my experience tells me that the delivery of Mr Tung's promises will take “some time”. His “some time” could mean several years, or even NEVER! With my persistent pursuit and follow-up, it still took almost a year for the recurrent consequences to reach various government departments. Worse still, as told to me by the Financial Secretary the departments only receive at the most 75% of the recurrent consequences they ask for. We must, however, realise that the effect on employment of the construction industry cannot be overstated as long as the recurrent consequences in full amount are still not available to government departments. Numerous projects just cannot commence because the departments concerned simply cannot find enough resources to meet the recurrent expenditure.

Meanwhile, talking about annual spending of $29 billion for capital works means nothing if the implementation of these projects fails to catch up. When the projects are packaged too large in scale, only a very small number of companies are capable or qualified to tender, leaving most of the industry still in a serious hungry state! It is true that some improvements have been made to expedite the implementation of infrastructure and public works projects in the past few years. But there is still too much red tape and many in the government have no sense of urgency or prefer not to make any decision. The planning and implementation cycles of government's infrastructure projects and building works are very excessive and must be further shortened drastically. The existing bureaucratic practices of our government are simply not compatible with its aspiration to become a world-class city. In many areas, people will still have to go to many departments for individual approvals. We must go for overall and efficient coordination and “one stop shop” approach should be adopted as far as possible.

Expediting the implementation of public works projects will help boost employment and speed up the economic recovery. In fact, the unemployment of the construction sector remains relatively high at 15%, more than double the overall unemployment of 6.5%. This is an urgent issue that must be addressed by the government.

For years, I have been calling for the Chief Executive's urgent attention to this serious unemployment problem affecting an industry consisting of over 300,000 people and about one million people if their families are also counted.

Unfortunately, to the utmost disappointment of the construction industry, Mr Tung, even today, thinks that he has done enough to solve the problem and I can say that he has even lost his interest in listening. This is clearly reflected in my meeting with him on Tuesday this week! It is just like an ostrich putting his head in the sand.

Members of the construction industry have more or less given up hope in the Administration but they are still so kind and considerate to the government and will not immediately go to the street despite our call. Nevertheless, what do they get in return? The government thinks that this is an issue of the past! Mr Tung should really pause at this point in time and see if he has discovered all his shortcomings and all the Administration's inadequacies.

To prove this, I used only mention three points.

First, the issue of recurrent consequences as I have already referred to.

Second, I prompted the government to issue bonds to raise funds capitalising on private sector's huge resources of some $3,500 billion. The government last year raised $6 billion in its securitisation exercise of 5 tunnels and 1 bridge and $20 billion in the first bond issue. We all suggested and hoped that these additional resources would only be utilised for infrastructure implementation and NOT to solve the financial deficit problem. But look what happens! All of this $26 billion will be used to constitute part of the $29 billion annual expenditure for infrastructure rather than a further fund to augment the latter.

Third, after more than four years' efforts pressing the government to resume the 169 municipal projects, the government now brings out 25 of them worth $4.4 billion but the construction of this small number of projects will not commence until after 2008 and some even after 2010!

Ways to finance infrastructure projects

While using the monies raised from bond issuance in financing current fiscal deficits is a very tempting expediency, investing the proceeds in infrastructure development will increase the competitiveness of our economy which is the key for future growth. Although the government is paying lip service to the latter, its annual expenditure earmarked for infrastructure projects remains at $29 billion despite the $26 billion bond proceeds. In order to create the required impact on our economy, the government ought to consider increasing the volume of bond issuance for financing more public works projects.

Apart from issuing bonds, the government should also adopt the Private Finance Initiative (PFI) to encourage private companies to initiate more new public works projects, which have not been included in the existing facilities or may not be built by the government on its own. To ensure quality delivery of these projects, it is important that sufficient manpower should be deployed from the works or related departments to monitor the works being undertaken by private companies/contractors.

Developing cross-boundary infrastructure to meet growing needs

We have to beef up our cross-boundary infrastructure facilities to meet the growing needs arising from the Pan-Pearl River Delta Regional Co-operation and Development Framework Agreement, involving 9 provinces, HKSAR and Macau SAR.. The construction of Hong Kong-Zhuhai-Macau Bridge should not be delayed further following years of discussion. Meanwhile, development of related facilities and infrastructure to the Bridge in Hong Kong worth about $20 billion will also need early planning, consultation and approval so that their implementation can proceed in phase with the construction of the Bridge.

With the completion of the Shenzhen Western Corridor at the end of this year, the government should seriously consider building an eastern corridor in Sha Tau Kok to improve the growing cross-boundary traffic. Moreover, it is imperative for the government to expedite the planning work of the Guangzhou-Shenzhen-Hong Kong Express Rail Link.

Environmental Protection

In combating the worsening air quality in Hong Kong , I totally agree on the need to strengthen our liaison with the Mainland authorities at all levels with a view to broadening both the scope and the depth of the cooperation.

Following years of my call for the development of renewable energy and the environmental industry, I am glad that the government has finally given a clearer indication of its position on the subjects. Of course, it matters only if they are backed up by concrete actions.

Railway and Road Development

As an effective strategy to reduce the emissions from vehicles and help improve our air quality, it is time for the government to expand our railway network to include the Shatin-Central Link which is long overdue. Meanwhile, the long-expected West and South Island Lines proposed for Hong Kong Island should also be given priority. Back to last decade, the Transport Advisory Committee, of which I was the Chairman from 1995-1997, agreed that there should be a railway line serving the need of the Island South. With regard to road development, the Central-Wanchai Bypass has been dragging on for years while the traffic situation in Central keeps worsening. Its construction should commence without delay.

As a conclusion, I hope that the government will put its words into actions and will be more open to many of the constructive suggestions made by members of this Council. Madam Deputy to the President, with these remarks, I so submit.