2 April 2005
URGENT
Dear Fellow Engineers,
The Financial Secretary Mr Henry Tang, delivered his 2005-06 Budget on 16 March 2005 . Following are highlights of areas pertinent to the interests of the engineering professionals. For details, please visit government website: http://www.budget.gov.hk .
The government will continue to invest an average of $29 billion per annum in infrastructure projects. According to the latest figures provided, original estimates on infrastructure projects are $30 billion for 2004-5 and $ 25.8 billion for 2005-6. The latter falls short of the $29 billion as committed. At the LegCo briefing meeting, I told him I was not happy with it at all but the Financial Secretary failed to explain to me the reason for this although he promised to provide me with further details.
60% of 169 projects of the two defunct municipal councils still on hold
According to the information provided by the government, 139 projects are within the remit of the Leisure and Cultural Services Department while 30 are environmental hygiene facilities. (i) Among the 139 projects, 33 projects have been completed or have a completion date. Two are undertaken as the Private Sector Finance projects. Eleven were cancelled following consultation with the District Councils. For the remaining 93 projects, 21 are recommended to commence after the review of the Leisure and Cultural Services Department. (ii)With regard to the other 30, funding has been approved for 8 of them. 12 were deemed unnecessary. The remaining 10 projects will be reviewed by the Food and Environmental Hygiene Department in respect of the need of the services and the scope of the projects. Resources permit, they will be carried out according to the priority in need. I am not satisfied that after chasing the government for over 4 years for the commencement of these 169 projects after the abolition of the Urban Council and the Regional Council and despite the former Chief Executive Mr C H Tung replied to me at LegCo that he had tasked the Secretary for Home Affairs to look at the projects and to give a report to LegCo within 3 months, we still have no firm decision for 82 of them!
The construction sector is still hard hit by the reduction in public housing production and the sluggish private sector. Despite the recent improvement in economy, its unemployment rate still stays at a relatively high 15%, almost 2.5 times the overall unemployment. Time and again I have been calling for the urgent attention of Mr Tung and Mr Tang to this serious unemployment problem affecting the industry consisting of over 300,000 people and about one million people if their families are also counted. However, no concrete measure has so far been taken. The government's determination of drastically cutting public expenditure to resolve budget deficit and to protect the Hong Kong Dollar is understandable but its stubborn attitude of blatantly ignoring the serious situation of the construction industry is most disappointing! Lack of funding will also hinder the maintenance and retrofit of existing infrastructure, let alone start of new projects. How can we maintain our position as a first class international metropolitan city? Although the government has earmarked $830 million for Buildings Department for removal of unauthorized building works, little impact on our employment situation is expected as it will be undertaken over a span of 5 years. In other words, it involves only a meagre $160 million a year.
Not recognising hardship of the middle class and no relief measures
As the economy has yet to fully recover, many engineers are still suffering from economic hardship, particularly those who are still victims of the negative equity. The increase in allowances for children and the dependent parents or grandparents brings little help to them. I strongly support that the government should have reduced the salary tax or have at least put the second phase of the salary tax increase on hold. However, the Financial Secretary does not choose to do so!
The Financial Secretary happily claims that ˇ§the government's cost containment efforts are starting to bear fruitˇ¨ and ˇ§the budget balance will be achieved in 2007/08, one year earlier than the original targetˇ¨, but I do not think this is anything to be proud of! It is time for the government to pay heed to our concern.
Vote against the Budget?
We will soon be debating the budget at LegCo and, government officials responding to our 2-day debate, we will put it to the vote. I am seriously considering voting against it but am open to comments from Fellow Engineers. Please let me have your views as soon as possible.
Regards,
Yours
Dr Raymond Ho