Full text of Tung Chee-hwa's speech
Madam President,
Introduction
1. To the Members of this Council, and to all citizens of Hong Kong, I
now deliver the first Policy Address of the Government of the Hong
Kong Special Administrative Region of the People's Republic of China.
2. On 1 July 1997, Hong Kong was reunited with China. We the people of
Hong Kong have begun to write our own history. Each step we take today
will set our course for decades to come. Clearly and constantly
remembering the deep significance of 1 July, we must work to build
Hong Kong for ourselves and for future generations: a Hong Kong that
is civilised, prosperous, stable and democratic, filled with a new
vitality.
3. Taking stock of the situation around us, for more than a century
conditions have not been better or more promising for our country than
they are today. After nearly twenty years of reform, China's
remarkable achievements are recognised all around the world. The 15th
Party Congress under the leadership of President Jiang Zemin has just
set out the goal of building China into a major power by the middle of
the 21st Century. Our country has bright prospects from which Hong
Kong is sure to benefit. Hong Kong has finally broken free from the
psychological constraints brought about by the colonial era. We should
have the courage to set aside past modes of thought and plan Hong
Kong's long term future with new vision.
4. The world economy is undergoing a tremendous transformation. It has
entered an era of increasingly open, free and borderless competition.
Rapid developments in information technology will change the way
mankind works and lives. Hong Kong now faces the challenge of the
information age. We must look to new concepts with which to assess our
competitiveness and set new courses for development.
5. Hong Kong is indeed fortunate. We have incomparable advantages: a
high degree of autonomy under "One Country, Two Systems"; abundant
financial reserves; social and economic systems that work well; a
sound, comprehensive legal system; we are the southern gateway to
China and an international financial, trade and shipping centre. Our
future economy will also be strongly supported by the rapid
development in China.
6. As China's economy, culture and spirit develop and as the world
continues to progress, Hong Kong can either stand by passively,
content with what we have achieved, or ride the wave of opportunity
and go forward, adding new dimensions and vibrancy to our lives. I
believe that the people of Hong Kong will rise to the challenge of
this brave new era.
One Country, Two Systems and Hong Kong
7. Hong Kong's reunification with China under the "One Country, Two
Systems" concept requires us to appreciate and accept one practical
and profound truth: Hong Kong's prosperity and stability are closely
linked with those of the Mainland. Also, Hong Kong and China share the
same fundamental interests. This is the basis for successfully
implementing "One Country, Two Systems`'. It is also the starting
point for the SAR Government when formulating policies for our
relationship with the Mainland, and strategies for Hong Kong's long
term development.
8. "One Country, Two Systems" is a well thought out political
concept. Understanding the relationship between "One Country" and
"Two Systems", and handling that relationship properly, is
fundamental to the successful implementation of the concept. "Two
Systems`' enshrines Hong Kong's practical and long term interests.
Naturally we will do everything to preserve that. At the same time, we
have to realise that "Two Systems`' has been made possible by the
deliberate choice of the Central Government, arising from its
consideration of the fundamental interests of the whole country,
including those of Hong Kong. Simply put, emphasising the "One
Country" concept and implementing "Two Systems" protects the
interests of China and Hong Kong. When we truly recognise the
significance of "One Country" and "Two Systems" we will be able to
find the way forward and will be well able to handle the relationship
between Hong Kong and the Central Government, and between Hong Kong
and the Mainland.
9. The policy of reform and opening up in the Mainland has given new
energy to Hong Kong's economic development. In our daily lives, we
enjoy the benefits of our country's rapid economic development. In
recent decades, Hong Kong and the Mainland have established broader
and closer relationships in many areas. Whereas previously they had
mainly been confined to the non-governmental level, with reunification
and with government support, the relationship between Hong Kong and
the Mainland should flourish comprehensively in all fields such as the
economy, finance, trade, transport, culture, education, science and
technology, tourism and sports.
10. In terms of the overall economic development of the SAR and the
Mainland, prospects are bright. Strengthening economic co-operation
with nearby provinces and cities is of particular importance to the
future development of Hong Kong. Building on past co-operation, the
SAR Government and the relevant mainland authorities have agreed that
the "Hong Kong and Mainland Major Infrastructure Projects
Co-ordinating Committee" be re-established to handle a number of
cross-boundary infrastructure projects between Hong Kong and
Guangdong. It will conduct in-depth studies on specific projects, such
as the Western Corridor, the Zhuhai Lingdingyang Bridge, the Tonggu
Channel, air traffic control co-ordination between the new airport and
the Pearl River Delta, the Lok Ma Chau and Huanggang boundary
crossings and others. Furthermore, in order to strengthen
comprehensively our regional co-operation with Guangdong Province, the
SAR Government and the Guangdong Provincial Government, in conjunction
with relevant Central Government departments, will establish a high
level framework to study and co-ordinate major issues such as
infrastructure, environmental regulation, supply of non-staple foods,
water supply, social welfare, business investment and the speeding up
of the flow of passengers, traffic and freight across the border,
enabling co-operation between Hong Kong and Guangdong to rise to new
heights.
The Basic Law
11. The Basic Law is the constitutional law of the Hong Kong Special
Administrative Region. It gives solemn and inviolable legal protection
for the "One Country, Two Systems" concept. The Basic Law lays down
clearly the rights that the Central People's Government grants to Hong
Kong for the exercise of a high degree of autonomy; stipulates that
Hong Kong shall adopt social, economic and political systems different
from those in the Mainland; safeguards the lifestyle and rights to
which the residents of Hong Kong are accustomed; and defines the
duties of the residents of Hong Kong. We are the freest and most
vibrant economy of our time because Hong Kong has always practised
free enterprise and free trade, insisted on prudent financial
management policies and keeping a low taxation system, upheld the rule
of law, and placed emphasis on an efficient, executive-led government
and a quality oriented civil service. All these factors are
safeguarded in the Basic Law. It is, consequently, very important to
the operation of Hong Kong's society that we understand the Basic Law.
The SAR Government will set up a steering committee under the
chairmanship of the Chief Secretary for Administration to make plans
for education and promotion programmes on the Basic Law, and to
co-ordinate the efforts of government bodies and all sectors of the
community in this work.
Outlook on Development
12. To promote the well being of the people is the most fundamental
task of a responsible government. In the increasingly open and
competitive world market, all governments will have to maintain the
economic vitality of the community as a whole to create rising
prosperity. The law of the market is simple and clear. Whoever
achieves lower costs, higher efficiency and better quality, and
therefore adds higher value to products, will succeed, otherwise they
will be left behind. My Administration therefore has to plan with
specific focus on adding value to our economy, and seriously
considering our ability to compete in the world market.
13. Hong Kong's economic restructuring and the relocation of
industries to the Mainland make us realise that low-wage manufacturing
and services can no longer fit in with Hong Kong's economic
development. Our high standard of living relative to our neighbours
means that we cannot derive competitive advantage from wage costs. It
is impractical to attempt to maintain competitiveness by driving down
incomes. This would not protect our overall interests. The invisible
hand of market forces has already pointed out that the way forward is
to develop high value-added industries and services. Only through
business that adds high value can Hong Kong's people enjoy higher
incomes and better lives. Only by that means can we solve the poverty
problem of the lower income group once and for all.
14. The SAR Government encourages enterprises to develop into higher
value-added activities. Hong Kong's ability to reach this goal depends
mainly on the number of our citizens who have the ability to enter
these fields. We must, therefore, provide every citizen with the
opportunity to receive quality education so that they master the
skills needed to participate in the new economy, to create wealth for
themselves and for Hong Kong. Next we must develop a quality
environment that will help to retain our qualified professionals and
to attract talent from all over the world. This makes the provision of
good and affordable housing and a quality living environment, together
with a variety of cultural and sporting activity, necessary additions
to a sound legal system and free enterprise policies.
15. It will take a long time to train all our citizens to equip them
for careers in high value-added business. For those citizens who have
been displaced in the course of Hong Kong's economic restructuring in
recent years, it is incumbent on the SAR Government to help them. We
also have to consider the question of our population growth, which has
been increasing at 2 per cent annually. We must set the creation of
new jobs as our main goal and continue to develop and provide
employees retraining schemes to help our citizens find employment and
adapt to new jobs.
16. Hong Kong's development strategy will be based on two principles,
a free market economy and a prudent fiscal policy. We are also
committed to maintaining a sound legal system. Together with our
emphasis on adding value, these principles will uphold Hong Kong's
competitiveness, maintain the lifeblood of Hong Kong's economic
development, and protect the interests of every citizen. As this is an
important issue with far reaching consequences, the SAR government
will set up a commission on strategic development. I will be the
chairman, and members of the commission will include government
officials, members from industrial, commercial, financial and grass
roots sectors, and also academics. It will be tasked to conduct
reviews and studies on our economy, human resources, education,
housing, land supply, environmental protection, and relations with the
Mainland, to ensure that our resources are well-used, that we keep up
with world trends in competitive terms, and that we maintain the
vitality of Hong Kong's economic development.
The Programme
A. A Better Business Environment
17. If we are to build better homes, improve transport, improve
education, care for the elderly, or brighten up life in our city, we
must maintain Hong Kong's economic vitality. My Administration will
strive to improve the environment for business in Hong Kong so that
everyone has the opportunity to prosper through their work and so
contribute to the common prosperity. Our efforts will be directed to
increasing our external competitiveness, increasing friendliness to
business within Hong Kong and to promoting a healthy competitive
environment. We will do everything to remove obstacles and constraints
to business development. We will give the private sector freedom to
set its own direction, to explore and to seize opportunities.
18. Hong Kong gains extensive benefit from the experienced and dynamic
international business community that has established itself here. I
welcome their contribution. We will continue to pay close attention to
their requirements and to all the factors that help make Hong Kong an
attractive place for them.
A Business Friendly Environment
19. Hong Kong already has one of the most business friendly tax
regimes in the world. Our intention is to keep the tax regime simple,
predictable and competitive. With these principles in mind, the
Financial Secretary is reviewing the system of profits tax. He will
determine and announce any changes to this, or to other tax
arrangements in the Budget next year.
20. As well as paying attention to the effects of taxes, we will put
under critical scrutiny the costs that Government imposes on business
by the regulatory and licensing framework and the efficiency of its
services. The Business and Services Promotion Unit is working closely
with the private sector to cut red tape, reduce costs of compliance
and improve services. A one stop centre for business licence
information has just been set up. On-line applications for certain
licences through the Internet will be accepted in 1998.
21. To companies operating out of Hong Kong, the negative impact of
rents and inflation on business costs is a concern. Although inflation
is now down to its lowest level for ten years, our competitiveness has
been eroded. Many of the programmes that I am setting out in this
address are drawn up with this in mind. My Administration will do its
best to help reduce business operating costs and maintain Hong Kong's
competitiveness as a business and financial centre.
Small Business
22. 98 per cent of Hong Kong's businesses, employing about two thirds
of the workforce, are small enterprises. We have set up a Small and
Medium Enterprises Committee to address their specific concerns. To
help small enterprises raise capital, we will support the Stock
Exchange's study into establishing a Venture Board. We have set aside
$500 million to establish a pilot Credit Guarantee Scheme to help
small and medium enterprises seek loans from commercial banks to
finance pre-shipment activities. Details of such a scheme are being
worked out and we hope to bring it into operation as soon as possible.
Financial Services
23. The last decade saw extraordinary growth in Hong Kong's financial
services industry. Its contribution to our GDP has increased by over
500 per cent. We are now the world's fifth largest banking centre and
sixth largest securities market. We are one of Asia's leading
insurance and fund management centres. This is an industry that has
very strong prospects for the future, prospects that will be enhanced
by recent decisions taken by the 15th National Congress of the
Communist Party of China on the next stages of financial and economic
reform on the Mainland.
24. We will work to improve Hong Kong's position as a premier
financial centre by maintaining a world class supervisory regime
without over regulation; by providing state-of-the-art financial
infrastructure and a well trained, adaptable workforce; and by
maintaining the rule of law, a low and predictable tax regime, an open
market and a level playing field. We will:
issue guidelines to the banking sector this year to ensure that they
will maintain adequate capital against market risk, so as to comply
with new international standards;
study the impact of electronic banking and its implications for
supervisory policy to ensure that this keeps in step with new
technology;
set up a secure intranet linking regulators and regulated institutions
as a first step towards straight through processing across the
financial system;
examine how to link the securities clearing system to the banking
clearing system, and explore the setting up of a single clearing
corporation for both stocks and futures to reduce risks and increase
efficiency;
encourage the Securities and Futures Commission and the two exchanges
to set up an Investor Resources Centre to improve investors' knowledge
of the market; and
support the industry's study into the need for and feasibility of
setting up a Financial Services Institute to co-ordinate training for
this sector.
Travel and Tourism
25. The travel and tourism industry employs 12 per cent of our
workforce, contributes 8 per cent to our GDP and is Hong Kong's major
earner of foreign exchange, bringing us an income of over $104
billion. The recent downturn in tourism has raised concerns about the
future of this industry. Our rising costs are becoming a deterrent and
competition from neighbouring cities is increasing. To maintain Hong
Kong's attractiveness as a travel destination, all sectors of the
industry need to examine their cost structure and business practices.
We will continue to plan and invest in tourism facilities and
attractions. New projects such as the Hong Kong Exposition, a Film
City, a virtual reality theme park and a new cruise terminal are being
studied by the Hong Kong Tourist Association.
26. To help keep Hong Kong in the world traveller's eye, we will make
a loan of $100 million to the Hong Kong Tourist Association to start
up an International Events Fund, designed to bring together private
sector partnerships to stage 50 major international events here over
the next five years. We will work closely with the tourism promotion
authorities in South China to enhance our position as the gateway to
the many attractions in the region. In addition, a task force has been
set up by the Government, the Tourist Association and all sectors of
the industry, to consider ways to enhance our competitiveness and
continue to promote Hong Kong as a tourist destination.
Film, Music and Broadcasting
27. Hong Kong produces over 100 films and 5 000 hours of original TV
programmes every year. In terms of the number of films exported, Hong
Kong is now number two in the world, second only to Hollywood. Our
recording industry is booming and our artists have a huge following.
We have in Hong Kong a first class infrastructure; a sound legal
framework; and an Administration that upholds intellectual property,
freedom of expression, freedom of publication and privacy of
communication. All these serve to protect creative expression and
encourage the growth of these industries.
28. In 1998, we will carry out a comprehensive review of the
television market, to see how we can promote competition to widen
choice and encourage innovation. We will set up a Film Services Office
to help the industry with production and location shooting issues. To
help the development of this industry, a site designated for film
production use has been included in this year's land disposal
programme. In addition, the Secretary for Broadcasting, Culture and
Sport will establish and chair a Film Services Advisory Committee to
promote dialogue between the industry and Government.
Manufacturing Industry
29. In the course of the economic transformation of the past twenty
years, Hong Kong's manufacturing capacity has spread to South China
and is now extending further afield. Hong Kong's role as the base for
activities that add value to that manufacturing has expanded
significantly. These activities, which include fashion, design,
management, marketing, packaging, financing and research, are now at
the core of our economy.
30. However, we still have some significant traditional manufacturing
industries which make an important contribution to our economy. We
will not neglect their requirements. For example, the textile and
clothing industry, where labour intensive processes are kept here
because of the effect of quotas, faces unique challenges and deserves
our support, given its relationship with our important fashion
industry. To ensure that there is sufficient skilled manpower to take
advantage of the quota allocation to Hong Kong for the next few years,
a joint working group of the textile and clothing manufacturers, the
training institutions, labour representatives and Government has been
set up to assess requirements and training needs.
Stimulating New Technology Industries
31. Innovation, adapting to new technologies and developing new
industries will always be important for Hong Kong. Our universities
are producing talented technologists and trained researchers. Our
business networks are extremely sensitive to customer needs and market
opportunities. We have set up the Industry Support Fund and Applied
Research Fund to encourage innovation and give support to the
development of new industries. We are reviewing their operation to
ensure that they work effectively to stimulate advancement in our
industries. We stand ready to inject up to $500 million into the
Applied Research Fund, specifically to support the commercialisation
of research in information technology and other high technology
fields. We will release the money once it is clear that the Fund
continues to be effective in meeting the objective of upgrading our
industry in terms of value and technology.
32. Improving our existing arrangements alone may be insufficient. My
aim is to make Hong Kong an innovation centre not just for ourselves,
but for South China and the region, adding value to our economic
hinterland, from which in turn we draw benefit. We may need to do more
to stimulate the exchange of ideas between our university researchers,
our businessmen and industrialists, and our customers, so as to drive
forward innovation and turn technological development into commercial
products. We also need to tap the talents and the results of
scientific research in the Mainland. I shall be setting up a high
level committee of academics, industrialists, businessmen and
officials to advise me on what steps Hong Kong should take, and what
institutional arrangements are needed to achieve my aim.
Land for Industry and Business
33. Excellent work is being done by our university research centres to
stimulate new industries, work that we support. For Government's part,
we will ensure that our industries and businesses have the land and
support facilities they need:
we will start to develop a science park at Pak Shek Kok. Land will be
available to commence phase I in 1998;
a site for a second industrial technology centre in Kowloon Tong has
been earmarked. Development will take three years;
a site for a fourth industrial estate has been identified in Tuen Mun.
It will be ready by 2004 when the existing land bank of the Industrial
Estates Corporation will be exhausted; and
to meet the changing operational requirements of local and
international companies, we are commissioning a study into setting up
a business park.
Labour
34. Our community has been served by a tradition of good relations
between labour and management that has brought mutual benefit. We owe
a great deal to the hundreds and thousands who have built Hong Kong's
prosperity through their labour. Even today, over 300 000 still are
engaged in traditional industries, but as our flexible and efficient
businesses continue to adapt to market opportunities, and as labour
intensive industry moves up north, constant restructuring of
employment takes place. We must ensure that opportunity for training
and retraining is open to every member of the workforce to maintain
their prospects for finding work, as well as to improve the quality
and productivity of businesses.
35. This requires us to be sensitive to the needs of those displaced
and to adapt our training and retraining courses to meet the needs of
tomorrow's working environment. We have critically reviewed the role
and future direction of the Vocational Training Council and Employees
Retraining Board. They will be revising courses and developing new
ones so as to respond robustly to market needs and to improve their
flexibility. We will also pay particular attention to helping new
arrivals of working age get into employment quickly.
36. For the construction industry, we are undertaking a special
exercise to meet the demand expected from our plans to boost housing
supply and build supporting infrastructure. A study on the manpower
needs in the various trades will be completed within this year. A
working group comprising employers, employee representatives, training
institutions and relevant government departments has been set up to
study issues such as manpower demands and training. The working group
is now setting out its plan for the expansion of training and
retraining programmes and discussing measures to encourage employment
of trained local workers by contractors. It will advise Government on
any specific measures to ensure an adequate supply of labour in this
industry over the next decade. We will also encourage initiatives to
increase productivity in this industry.
37. The issue of importation of labour has vexed our community for a
number of years. Let me state now that the unalterable policy of my
Administration is to give priority in employment to our own citizens.
But we must be honest with ourselves. Only if we remain competitive as
an economy will we be able to offer the fullest opportunity of
employment to our citizens. We cannot afford to tie our hands when we
cannot meet demand from within our own resources. Imported labour has
contributed to Hong Kong's success. Foreign domestic helpers in many
households open up career opportunities to tens of thousands of Hong
Kong's women. We may need to import labour to help meet our housing
construction targets or to provide staff for new homes for the
elderly. I will not open the doors to unrestricted import of labour.
If necessary, we will consider the need for importing labour to make
up for shortage in specific trades or posts. While we operate under
the principle of giving priority to local workers, we do need to
improve our Supplementary Labour Scheme, to give our economy the
flexibility that it needs to maintain our competitiveness.
Recommendations for amending the Supplementary Labour Scheme are being
studied. I trust that they will strike the right balance between the
concerns of our workers and the needs of our economy. I have no doubt
that enhancing the skills and job opportunities of our local workers
is fundamental to the success of our economy.
38. We are also reviewing the pilot scheme for entry of mainland
professionals into Hong Kong. Our aim is to come up with effective and
appropriate measures to meet the needs of employers in certain trades
to bring in professional staff from the Mainland who have skills,
knowledge and experience of value to Hong Kong but which is not
readily available here. We aim to complete the review within this
year.
39. Finally on the subject of business, there are a number of measures
that we need to take to protect our interests and uphold Hong Kong's
commitments as a responsible member of the world trading community.
Intellectual Property Rights
40. We must provide a robust regime, in full accordance with
international standards, for the protection of patents, trademarks,
registered designs and copyright. This is necessary to complement our
high technology based development and to ensure that Hong Kong remains
a home for creative and innovative works.
41. We will take more effective enforcement actions against all forms
of infringements against intellectual property rights, especially the
sale of pirated and counterfeit goods. We will continue our raids
against retail black spots. We will tackle illicit trading in
copyright-infringing articles. We will not allow the acts of illegal
businessmen to erode the development of creative business and do harm
to the reputation of the Hong Kong SAR.
Trade Controls
42. Advanced technologies help the rapid development of our commerce
and industries as well as promote academic research. As a responsible
trading partner, the Hong Kong SAR will increase resources for control
on trade in strategic commodities, so that our partners will have
confidence to continue to supply high-tech products to Hong Kong. We
will also strengthen our textile export control system against illegal
transhipment of textile products, to ensure that genuine Hong Kong
products have free access to world markets.
Competition Policy
43. Key to our economic efficiency and international competitiveness
is openness and competitiveness within Hong Kong's economy. I am fully
committed to promoting competition, and I welcome the good work that
has been done by the Consumer Council to address practices in our
internal market. I trust that they will continue to take a vigorous,
proactive stance in this field. My Administration has been positively
considering the Council's recommendations on overall competition
policy. These have wide ranging implications that required thorough
examination, but we will be ready to give a full response shortly.
B. Connecting to the Information Age
44. I would like to turn now to the tool that will shape the 21st
Century - information technology (IT). Already our children are
roaming on the internet; our academics are discussing with their
colleagues and even teaching students over a global communications
network. In Government and in many of our companies, e-mail and
intranets are changing the way we work, changing our horizons. But the
uses to which we are putting information technology today in Hong Kong
are only a foretaste of what will be possible. To make Hong Kong a
leader, not a follower in the information world of tomorrow, we need
to bring together four things:
first, the hardware of high capacity communications systems;
second, a common software interface mounted on established
communications networks, through which individuals, business and
Government can interact easily and securely using their own systems;
third, people who know how to use the new technology; and
fourth, a cultural environment that stimulates creativity and welcomes
advances in the use of this technology.
Information Technology Co-ordination
45. To ensure that Government will facilitate this process,
responsibilities now divided between several bureaux will be
regrouped. One Bureau Secretary will lead and co-ordinate the work of
all those throughout the Government organisation involved in
information technology and the related areas of broadcasting and
telecommunications. This Bureau will also be responsible for
co-ordinating overall information technology development in Hong Kong
and will:
first, formulate policies to facilitate the establishment of an open,
common interface information infrastructure, accessible throughout the
SAR;
second, lay down an appropriate regulatory framework to remove
obstacles to interconnection between networks, and enhance Hong Kong's
external info-communications links;
third, develop a policy for accelerating the use of IT applications
using the common interface in the public and private sector; and
fourth, commission pilot projects that make innovative use of the
developing infrastructure.
Information Technology in Education
46. We will launch a five-year IT education strategy to promote the
use of IT to enhance teaching and learning. The main tasks are to
equip our teachers with the necessary IT skills; to apply
computer-assisted teaching and learning across the curriculum; and to
place students in an environment where they can use this technology as
part of their daily activities and grow up to use it creatively.
47. Within five years, we are aiming to have teaching in at least 25
per cent of the curriculum supported through IT. Within ten years, we
aim to see IT being applied comprehensively in school life, and all
our teachers and Secondary 5 graduates being able to work competently
with IT tools. To move firmly in that direction, within the next
school year we will:
increase the number of computers in each primary school from 15 to an
average of 40 and in each secondary school from 20 to an average of
82;
procure and develop new software to support teaching, especially for
languages;
enhance training to over 30,000 teachers in IT use, and set up an IT
Education Resource Centre to support the management of school IT
systems;
introduce pilot schemes in 20 schools to establish best practices for
IT applications in teaching and learning;
connect all schools to the Internet; and
make preparations for an education-specific intranet for
multi-dimensional communication and sharing of information within the
school sector.
The Challenge Ahead
48. My Administration aims to ensure that the private sector has an
open market and a well developed skills base which it can use to build
on our head start in the field of the hardware of information
technology infrastructure. We have opened negotiations to secure
liberalisation of international telecommunications services in Hong
Kong. Looking at the rate of growth in information industries, there
is a huge market out there. The Asian market outside Japan for
info-communications is expected to grow to US$1,000 billion by 2010,
five times the 1995 level. This market, this development, is not
simply a matter of telephones and television; it is about introducing
entirely new ways of doing business and interacting in the community,
from banking and shopping to learning and entertainment. In Hong Kong,
by introducing advanced broadband communications connections over the
next ten years, opportunity would be created to deliver services to
our homes. The scope of those services knows few boundaries other than
the imagination. My Administration will harness the new technology to
improve its efficiency and services. The real challenge is for the
business sector, indeed for the whole community, to experiment, adapt
and develop these new tools to enlarge our vision, conquer new markets
and create new patterns of life for our entire community.
C. Homes for Hong Kong
49. Let me now discuss the question of housing. On 1 July, I set out
my vision for tackling the housing needs of the community. I realise
from the outset that this is a highly complex problem. It involves
some entrenched policies, practices and constraints that have
inhibited the supply of residential land and slowed down flat
production, making the job of meeting public expectations increasingly
hard to reach.
50. Flat supply has been uneven from year to year. This has sent
confusing signals to the market, produced erratic price patterns and
left potential home buyers and developers in the lurch.
51. Having only a one year land sale programme did not enable us to
take a long term view, or have information on long term flat supply.
Furthermore, the rising expectation of the community to be consulted
during the development process, coupled with a statutory procedure for
dealing with objections that is not time-limited, has increased
uncertainty over completion of projects.
52. I set my Administration three main targets:
to build at least 85,000 flats a year in the public and private
sectors;
to achieve a home ownership rate of 70 per cent in ten years; and
to reduce the average waiting time for public rental housing to three
years.
53. Achieving these targets will be a considerable challenge. It is
not just a matter of producing more flats, but of ensuring an even
annual supply and a high degree of predictability that supply will be
sustained. That is the only way to ensure moderate prices. This
requires a well defined, rolling five year land disposal programme
against a longer ten year planning horizon. It also requires a radical
reform of planning and co-ordination functions within the Government.
54. My Administration has responded vigorously to the challenge. The
Financial Secretary has set up a task force to attack the problem,
known as the Steering Committee on Land Supply for Housing, HOUSCOM
for short. It has translated my three targets into well defined tasks.
It has developed a realistic production programme and has revised the
procedures for land and housing development to ensure that absolute
priority is given to housing. Today I want to set out in detail how we
are going to live up to the commitments that have been made.
Land Supply for Housing
55. We have already announced a five year land sales programme that
will provide 120 hectares of land for private housing up to March
1999, and an additional 260 hectares in the following three financial
years. In addition, there will be about 285 hectares of land for
public sector housing over the same period. Together with developments
initiated by private land owners and those associated with railway
developments and public housing redevelopment, this level of supply
will translate into a production pattern rising from around 70,000
flats in 1998 to more than 85,000 flats a year with effect from 1999.
HOUSCOM is finalising a ten year programme, which includes site
specific information for the first five years, with the aim of
sustaining annual production of at least 85,000 flats. The programme
will be rolled forward annually. To provide more land, we will:
within the next ten years develop strategic growth areas in Tseung
Kwan O, Tung Chung and Tai Ho on Lantau Island, the Northwest New
Territories and Southeast Kowloon;
proceed with the Tsuen Wan Bay and Green Island reclamations; and
rezone suitable agricultural and industrial areas for housing
development.
56. To meet the growing demand from more international professionals
operating in Hong Kong, 117 hectares of land, sufficient for at least
9,000 large flats, will be sold before March 2002 in areas such as the
Peak, Hong Kong Island South, Shatin, Tai Po and South Lantau, in
addition to the 64 hectares already included in the sales programme up
to March 1999. To further increase the supply of this category of
flats, in this financial year we are releasing 260 Government quarters
and three sites now used for civil servants quarters.
Infrastructure
57. To ensure that all suitable land can be used for housing, major
improvements to the transport infrastructure will be needed. Our focus
will be on high capacity, environmentally friendly rail systems:
the West Rail passenger system from Tsuen Wan to Yuen Long will be
completed by 2002, and extended to Tuen Mun by 2003;
the Mass Transit Railway (MTR) Tseung Kwan O Extension will be
completed by 2003; and
a decision will be made on a passenger railway between Ma On Shan and
Tai Wai and the Kowloon-Canton Railway extension from Hung Hom to Tsim
Sha Tsui by the end of this year.
We will also develop plans for:
a new MTR North Island Line from Central through Wanchai to Causeway
Bay, with a possible extension to South Hong Kong Island;
a new East Kowloon Line to serve the Kai Tak area;
an extension of the MTR Island Line to Kennedy Town and Green Island;
a second connection from the Ma On Shan railway into Kowloon; and
a fourth cross harbour rail route.
58. Improvements to the road network will also be needed. Over the
next ten years, we will:
widen the Tolo and Fanling Highways;
complete Route 9 between Northwest Tsing Yi and Lai Chi Kok; and
build a link between North Lantau and the Northwest New Territories.
Plans will be developed for:
a new Western Highway to connect the western part of Hong Kong Island
with the Northwest New Territories via Lantau;
a new Eastern Highway from the main urban area through the Eastern New
Territories;
an east-west route to connect the Eastern and Western Highways in the
New Territories; and
a Central Kowloon route to ease traffic flow between West Kowloon and
Southeast Kowloon.
59. To help speed up private housing development, when appropriate we
will entrust related infrastructure works, such as feeder roads and
drainage systems, to the private sector.
Organisation and Procedures
60. Plans for increased land supply must be complemented by efficient
procedures. HOUSCOM has begun to review the organisation and
procedures for housing production. It will complete its review by the
end of 1997, but has already:
drawn up a package of measures to simplify and streamline various
government planning, land and building approval processes for
residential development; and
completed a review of the planning and development procedures of the
Housing Authority and the Housing Society, resulting in significant
reduction of the development lead time for public housing: in the case
of the Housing Authority, from 62 months to 47 months; and in the case
of the Housing Society, from 52 months to 46 months.
61. HOUSCOM has compiled an inventory of all housing developments in
Hong Kong and will monitor progress site by site. A new accountability
system for completing these developments has been devised, redefining
the responsibilities of departments at district and central levels.
The system covers both approval procedures and mechanisms for dispute
settlement. In addition, we are looking at the organisational
structure among bureaux to ensure the effective management of the land
supply and housing programmes.
Home Ownership
62. Speeding up land supply for housing development will help both
private and public sectors contribute towards our second target of
achieving 70 per cent home ownership by 2007. Further measures will be
taken specifically to help meet this target. In the public sector, we
will maximise opportunities for families to buy their own homes:
over the next ten years, we will provide the opportunity for at least
250,000 families living in public rental housing to buy their flats at
reasonable and affordable prices. These prices will take into account
the age and location of the flats as well as other relevant factors.
Flexible mortgage arrangements will be negotiated with financial
institutions; the condition of flats will be checked and essential
renovation works carried out before sale; a structural guarantee
period will be provided; Owners' Corporations will be set up,
maintenance funds will be established, partly with contribution from
sale proceeds, and reasonable resale conditions will be drawn up. We
expect to receive from the Housing Authority details of such a scheme
in time for the Government to take a decision by the end of this year,
so that the first batch of about 25,000 flats can be sold early in
1998;
we will build more subsidised home ownership flats;
we will increase the number of Sandwich Class Housing flats to be
built, raising the total stock to 50,000 units by 2006;
we will give all successful public housing waiting list applicants the
option of buying rather than renting flats;
we will launch a new "Home Starter" loan scheme, over and above the
existing Sandwich Class loan scheme, targeted at first time home
buyers, under which in each of the next five years 6,000 families will
be given a loan of about $600,000 each; and
we will implement a pilot scheme to tender selected sites, subject to
the requirement that the developer will hand over at least 30 per cent
of the flats built to the Government for sale to eligible purchasers
at designated prices.
63. The land disposal programme, the streamlining of procedures, the
rezoning and the infrastructure development that I have outlined will
make it possible for the private sector to produce up to 36,000 flats
a year from the year 2000. We have a mechanism to ensure that flats on
new development land are completed within a fixed period. We will
monitor production in the private sector closely to ensure that
targets are met. I am confident that the private sector will do their
part to help ensure that we meet our housing targets. Land production
in our strategic growth areas will ensure that there is ample supply
of land for stable and sustained private sector development to meet
our target.
64. To promote stability in the market, we have put in place a more
effective system for monitoring the residential property market and
have drawn up a package of measures to introduce at short notice
should signs of excessive speculation emerge at any time. If need
arises, we will use them.
Public Rental Housing for Those in Genuine Need
65. Our targets on flat construction and home ownership may catch the
headlines, but improving the supply of subsidised rental housing to
those in genuine need is no less important a part of our housing
strategy. We will reduce the waiting time for public rental housing
from the present average of six and a half years to under five years
by 2001, to four years by 2003 and to no more than three years on
average by 2005. At present we assign about 14 000 flats a year to
waiting list applicants. To meet our targets, from 2001 we will
provide an average of 20 000 flats each year, and to ensure that they
go to those in genuine need, we will introduce in 1998 a means test of
income and assets for all prospective public housing tenants.
66. We will also take steps to improve housing for those now living in
poor conditions. We will clear all remaining old type temporary
housing areas by 2000 and all remaining cottage areas by 2001. By then
we will also have offered public housing to all those who may be
displaced from bedspace apartments which do not meet the safety
standards for licensing. We have also drawn up a programme to offer
public housing to all squatters affected by development clearance.
Speeding up Urban Redevelopment
67. Added to the challenge of providing enough new housing is the
large stock of old or inadequate housing in the urban area. At current
rates of redevelopment, this stock of housing over 30 years old will
double from 20 per cent to 40 per cent of private housing over the
next ten years. Redevelopment is a complex process but we must address
the challenge more vigorously if we are to ensure that Hong Kong's
inhabitants have good homes in a good environment. This will involve a
number of measures, including the redevelopment of old industrial
areas into housing, a review of plot ratios and set time limits for
handling public objections to residential developments.
68. Ability to resume land for redevelopment is the key. We aim to set
up an Urban Renewal Authority by 1999 to build on the good work that
has been accomplished by the Land Development Corporation. We will
introduce legislation to give the Authority effective powers to carry
out resumption and comprehensive redevelopment. We will also introduce
legislation to assist property owners and developers to assemble land
so as to quicken the process of renewal by the private sector.
A Safer Home
69. A good home is a safe home. We will step up programmes to ensure
the safety of residential buildings. We are working to introduce a
Mandatory Building Safety Inspection Scheme in 1998. We will set up a
$500 million "Urban Rehabilitation Fund" to provide loans to owners
of old buildings in targeted areas for rehabilitation. This will help
maintain the safety and quality of our existing housing stock.
70. Recent tragic accidents have shown the need for much greater
awareness of the danger of fire and for closer co-operation between
Government and the community in the fight against fire. A package of
legislation and administrative measures to improve fire safety will be
introduced by the Secretary for Security.
71. This year's exceptional rains have shown both the benefit of the
work that has been done so far on improving slope safety, and how much
we still have to do to educate private property owners and the
community on maintaining slopes and drainage channels. We will also
extend Government slope maintenance programmes.
72. I have demonstrated to Honourable Members and to the community
that my Administration has a clear programme to tackle the housing
problem comprehensively. The Financial Secretary and his team will
elaborate on this programme in the next few days. There is
determination within my Administration to meet the targets I have set.
We ask for the support of the Legislature and the community at large
in this common enterprise.
D. The Environement
73. To achive all that we hope for our business and industry, we need
to put one thought at the heart of all our planning, the quality of
our environment. Let me put it bluntly, unless Hong Kong provides an
environment that is good to live in, how are we going to attract or
retain the talented and creative people that our businesses and
economy need in order to grow? Improving the quality of the
environment is as vital as economic growth to improving our quality of
life. We will ensure that consideration of how to sustain and enhance
the environment is built into strategic planning and policy making.
The Environmental Impact Assessment Ordinance comes into effect in
1998. We will use it vigorously. We have just commenced a study into
sustainable development. We will seek to involve the whole community
in learning and discussing what that means for us and for the way we
do business. Simply put, waste and environmental degradation represent
inefficiencies that are costly to our health, our businesses and our
community. Sensible planning and action to reduce them is good for our
competitiveness as well as our enjoyment of our city.
74. My Administration will be taking immediate steps to address water
and air quality problems, and to reduce waste.
75. The new Stonecutters Island Sewage Treatment Works is operating
well. Rigorous environmental monitoring is being carried out which
will help with design of future stages of the Strategic Sewage
Disposal Scheme. We will complete phase I of the Strategic Sewage
Disposal Scheme by 2000. Subject to the outcome of further studies, we
aim to complete phases II, III and IV steadily thereafter to extend
the coverage and quality of the treatment system.
76. We will shortly introduce a trial scheme for Liquefied Petroleum
Gas (LPG) powered taxis. Once the technical issues have been settled,
we will implement a plan to replace diesel powered vehicles with LPG
or other cleaner technologies as soon as possible. The effect of
traffic fumes on our air quality and health is obvious to all. We will
not let this problem continue.
77. Keeping Hong Kong clean is everyone's responsibility. It is not
just a matter of keeping our city centre clean. In every corner of the
territory from rural villages and country parks to industrial areas
and our great harbour, we all need to play our part in promoting a
clean and healthy environment, to take pride in making Hong Kong a
clean and beautiful city.
78. In 1998, we will be launching a Waste Reduction Plan. We will
examine all processes to see where we can be more efficient in
handling and reducing waste. I trust that there will be public
participation and political consensus to implement this important
programme.
E. Uncovering Hong Kong's Treasure
Education
79. I said on 1 July that education is the key to the future of Hong
Kong. It provides a level playing field for all and the human
resources for further economic development. Our education system must
be firmly rooted in the needs of Hong Kong; it must enable us to
contribute to the development of our country; it must give us an
international outlook. It should be diverse, drawing on the strengths
of East and West. It must inspire commitment to excellence. I will now
set out our plans to achieve that.
80. Primary and secondary education provides the foundation for all
our children and it is here that the commitment to excellence needs to
start. I am glad that the Education Commission has just published its
seventh report, which provides a basis for promoting quality and
innovation; for upgrading the professionalism of teachers and school
administrators; for developing essential indicators for assessing the
performance of schools and for improving the learning environment. My
Administration will begin to implement the recommendations
immediately. We will press forward with mother tongue teaching, so
that students can learn more effectively. We will also continue to
promote excellence in tertiary education and to improve quality at
kindergarten level and in special education.
Quality and Innovation
81. We will allocate $5 billion to establish a Quality Education
Development Fund. This will be used to encourage innovation,
competition and self-motivated reform in primary and secondary
schools. It will be a more flexible and efficient alternative funding
source than the normal Government mechanism.
82. To promote and strengthen school-based management, we will also
require all schools to draw up plans and achievement targets; publish
annual reports; and conduct fair and open appraisal of teachers. We
will give school principals, whose leadership is key to the success of
our education system, more flexibility in the use of funds to meet
their own plans and priorities.
A Committed Teaching Profession
83. For our substantial investments in education to yield good
returns, a teaching profession of high commitment and quality,
respected and supported by the community, is essential. To enhance the
professional status of teachers and to help them do their job more
effectively, we will:
first, within two years set up a General Teaching Council, a
professional body for teachers;
second, relieve teachers of the burden of clerical work. More than 800
clerical posts will be provided to schools in the coming year;
third, advance the date for graduate posts making up 35 per cent of
all primary teaching posts from 2007 to 2001;
fourth, require all new teachers to be trained graduates. The
University Grants Committee will study the timetable and the means
needed to achieve this target. I expect to be able to announce
decisions next year; and
fifth, declare 10 September each year as "Teachers' Day" as a
reminder to all of the enduring importance of the teaching profession.
Language Skills
84. Confidence and competence in the use of Chinese and English are
essential if we are to maintain our competitive edge in the world. The
Education Commission Report No. 6 has already laid down a framework to
achieve our goal for secondary school graduates to be proficient in
writing English and Chinese and able to communicate confidently in
Cantonese, English and Putonghua. Putonghua will become part of the
curriculum in the next school year starting from Primary 1, Secondary
1 and Secondary 4, and a subject in the Hong Kong Certificate of
Education Examinations by the year 2000.
85. Greater use of mother tongue teaching will help raise the standard
of teaching in non-language subjects. It also allows more time to be
given to specialised teaching of English and Chinese so that all
language standards may be raised.
86. To make an immediate impact on improving the English language
standard of our students, we will implement a new Native-speaking
English Teachers Scheme, providing more than 700 additional
native-speaking English teachers for secondary schools from next year.
87. We will also:
set language benchmarks for all teachers in 1998-99;
require all new teachers to meet the benchmarks before they join the
profession in 2000;
provide training for in-service language teachers, so that within five
years of the benchmarks being set, all will be able to reach them; and
provide more teachers to support school library services and the
Chinese and English Extensive Reading Schemes in primary school.
88. In the longer term, we need to develop a centre of excellence in
language teaching, and we will be looking into establishing a "Centre
of Language Teaching" within the Institute of Education for the
training and retraining of our language teachers.
The Learning Environment - Whole-day Primary Schools and others
89. We need to provide an environment conducive to an all-round
education for our children. At primary level, our goal is whole-day
schooling for all. As a first step, we will raise the percentage of
students in whole-day schools from the previous target of 40 per cent
to 60 per cent by the 2002 school year. To meet this new target in the
face of the perennial shortage in land, we will need to increase
slightly the average class size in primary schools to 34.5 students
per class and temporarily withhold reduction of class size at the
secondary level. In view of the benefits that whole-day schooling
brings to the learning environment for our children, we are determined
to reach our target of the full implementation of whole-day schooling
as soon as possible after 2002. The problem is finding sufficient
sites for new schools, particularly in the old urban area. My
Administration is looking imaginatively at provision of sites. I will
set out a timetable for achieving this target in my next Address.
90. At the secondary level, we are on target to abolish floating
classes up to Secondary 5 by the year 2000. We will also revise the
designs of primary and secondary schools to suit new developments,
such as providing multi-media rooms, language rooms and staff rooms.
In parallel, we will continue to enhance existing schools under the
School Improvement Programme.
Schooling for Newly Arrived Children
91. Children born outside Hong Kong but who have right of abode here
are part of our community. We must provide a good education for them
to help them settle into Hong Kong and contribute to our society. To
meet the demand, we are already scheduled to complete 16 school
projects by September 1999. We will build another six primary and ten
secondary schools before the 2001 school year. We will provide
induction programmes, English language programmes, short term
preparatory courses and school-based support services to help newly
arrived children overcome initial academic difficulties and integrate
into the local school system as soon as possible.
Tertiary Education
92. Tertiary education accounts for about one-third of our total
budget on education. The tertiary sector has now entered a period of
consolidation following its rapid expansion over the past decade. I
have asked the University Grants Committee and the tertiary
institutions to build upon existing strengths and invest in
state-of-the-art facilities so as to provide programmes which will be
recognised internationally for their excellence.
93. The tertiary institutions have a role to play in enhancing the
language proficiency of students. Students whose language skills do
not meet the minimum standards should not enter the institutions. We
will ask the universities to consider exit language tests and we will
provide more resources to them for language training.
94. We will build 11 000 additional hostel places, principally for the
three universities that do not have any at present, to ensure that all
students can spend at least one year in a university hostel.
95. Universities should be places for cross cultural learning and
exchange. From the next academic year, we will double the number of
non-local undergraduates and taught postgraduates from 2 per cent to 4
per cent and increase the ratio of non-local research postgraduates
from 20 per cent to one-third. We have asked the institutions to
recruit outstanding students from the Mainland to enrol in
first-degree courses.
96. We will make a $50 million grant to the Open University to develop
adult distance learning courses in both English and Chinese, to serve
Hong Kong and mainland students. Our goal is to turn the Open
University into a centre of excellence in adult and distance learning.
97. We will enhance the efficiency, transparency and fairness of the
Local Student Finance Scheme to ensure that no students will be denied
access to tertiary education due to a lack of means. We will also
introduce a non-means tested loan scheme open to all full-time
tertiary students to complement the existing means-tested scheme. We
expect this to benefit some 50 000 students.
Special Education
98. To ensure that all our children can fulfil their potential, we
must help children with special educational needs. In the coming year,
we will enhance the quality of special education services through
improved support staffing. We will conduct a two-year pilot exercise
in nine schools to map out a long term policy to help students with
special education needs integrate into ordinary schools.
Kindergarten
99. Turning to kindergarten education, I propose to maintain the
momentum for improvement in standards by ensuring that 60 per cent of
teachers at this level have formal training by 2000; by upgrading the
standards of training for teachers, and by requiring all new
kindergarten principals to be graduates of the Certificate in
Kindergarten Education Course by 2004. Also, we will be introducing
improvements to the Kindergarten Subsidy Scheme to provide incentives
for kindergartens to employ more trained teachers.
Expenditure
100. The measures that I have proposed above will raise recurrent
expenditure on basic education by 7.6 per cent in the coming year. In
addition, capital expenditure will increase to $22.2 billion over the
next five years.
Review of the Education System
101. Such additional expenditure is essential to provide the quality
of education that Hong Kong deserves. However, I am convinced that we
need to take a very careful look at the whole structure of our
education system. We need to decide how it should develop into the
next century. By the end of this year, we will have reviewed the
existing structure of executive and advisory bodies, with the aim of
streamlining the system. In the coming year, we will:
ask the Education Commission to begin a thorough review of the
structure of pre-primary, primary, secondary and tertiary education,
addressing the age at which students should begin each stage of
education; the duration of the various stages; the curriculum and the
interface between stages. It will also consider the matter of four
years of tertiary education;
review our policy on private schools in order to foster a more vibrant
and diverse private school system that encourages innovation and gives
parents greater choice;
review our examination system to take account of students' performance
at schools so that their achievements will not be determined by a
single examination; and
ask the universities to review their admission criteria for
undergraduates to give recognition to excellence in extra-curricula
areas, such as community service, arts and sports.
The Curriculum
102. In the school curriculum, we need to develop teaching about
Chinese history and culture. These are part of the heritage of our
predominantly Chinese community. We also need to be looking afresh at
our curriculum to ensure that our schools are giving proper attention
to science and mathematical knowledge that is essential in the modern
world, and that we seek to promote the all-round development of
children and encourage all their talents.
103. We are examining best practices in other places, and will draw on
expert advice in all the reviews, to ensure that we look critically
and constructively at all we are doing, so as to build on our
strengths and remedy our weaknesses in educating our community for the
next century. I will look to develop our plans in my next Policy
Address.
Our Young People
104. It is important that we educate our young people, so that they
master the knowledge and skills needed to make a living and to
contribute to society. But this is far from being the only aim of
importance. Knowledge and skills can propel economic growth, but our
goal goes beyond this. Our goal is to become a community that is both
rich and warm of heart, both free and united, both sophisticated and
culturally confident. This calls for more than mere knowledge and
skills.
105. Schooling is just a part of our young people's lives. The impact
of family upbringing is immeasurable. I call on all parents of Hong
Kong to work with teachers and to spend more time with your children,
to help them grow. They are at their most sensitive and imaginative
age. They need your guidance, patience and love.
106. Working together to educate and bring up our young people
properly is the responsibility of parents and the Government. But
young people also have their share of responsibilities to others, to
their families, and to the community. I believe that the greatest
respect that can be paid to anyone is let them assume responsibility.
107. The Commission on Youth will carry out a study on how our young
people can take up a more active role in building up the SAR, and in
voluntary work, to make Hong Kong a place abundant not just in
material wealth, but a place that is spiritually enriched for the next
century.
The Arts
108. Young and old alike look to our city to be far more than just a
place of study and business. We look for art to stimulate and sustain
us. Hong Kong has long embraced both eastern and western cultures and
in our artistic life we find contemporary diversity with Chinese
characteristics. Over the years we have injected considerable
resources into developing artistic endeavours. We have many venues for
the arts, and a flourishing Academy for Performing Arts. I welcome the
work done by the Arts Development Council, the Provisional Urban
Council and the Provisional Regional Council. We must aim higher. My
Administration will consider how to make better use of the resources
we now invest in this area, and what more we can do to stimulate the
artistic life of Hong Kong.
Sports
109. In sports, as in the arts, there is great diversity in Hong Kong,
and my Administration will strive to encourage this. We will continue
to support the Sports Development Board's strategic plan to improve
our sporting environment and to promote the health and spirit of Hong
Kong through sport.
Hong Kong's Culture
110. How education and culture will shape our home, how we can each
play our part in creating a community that all can enjoy and draw
strength from, are matters for everyone. For many years, Hong Kong has
been set apart from the Mainland. We have lived in a society and a
cultural environment very different from the Mainland. As we face the
historic change of being reunited with China, for every individual
there is a gradual process of getting to know Chinese history and
culture, so as to achieve a sense of belonging. My Administration
attaches importance to this process. We will provide resources and
will promote educational, recreational and cultural exchange
programmes to involve the community fully in this process.
111. Ours is a cosmopolitan city. Our ability to embrace the cultures
of east and west is one of the secrets of our success, shaping a
unique social culture of our own. While we deepen our understanding of
Chinese history and culture, we will continue to develop our own
diverse cultural characteristics. China's culture, like every other
culture, is growing and changing as we journey forward into the 21st
Century. Hong Kong stands in a unique position in this process, able
to act as the centre of exchange for China to learn about western
cultures and for the world to learn about Chinese culture.
112. To help nurture the growth of a stronger understanding of our own
community and culture, the Home Affairs Bureau will be launching a
programme to strengthen civic education over the coming year, under
the theme "Hong Kong, Our Home".
F. A Compassionate and Caring Society
113. As we work hard together to build our future, caring for those in
need, supporting the elderly and helping the disadvantaged are
fundamental to the quality of our society. My Administration will work
to improve conditions for the elderly and people with disabilities, to
help our new arrivals integrate into the community and to improve
health care.
Care for the Elderly
114. Caring for the elderly is the responsibility of every family: we
need to provide a sense of security, a sense of belonging and a
feeling of health and worthiness.
Security
115. For the elderly to feel secure, they must first be financially
secure. To prevent future generations from facing the uncertainty of
toddies elderly, we will establish the Mandatory Provident Fund
Schemes in 1998 so that in twenty to thirty years all the workforce
will have provision for their retirement. To address today's needs, we
will increase the monthly payment to elderly Comprehensive Social
Security Assistance (CSSA) recipients. The annual Chinese New Year
Grant and the Social and Recreational Activities Grant will also be
merged into the regular monthly payment. Taken together, in the next
financial year the CSSA monthly payment for the elderly will be
increased by $380 before inflationary adjustment.
Belonging
116. More important for the elderly than cash is a place to call home
and the effective delivery of good services. We will respond to this
need and steadily increase investment in services. We need a flexible
and wide-ranging approach that helps families that want to care for
their older members, that helps those elderly who have no family but
want to live in their own homes, and that provides sufficient
institutional care for those in need.
117. It is only right that we reciprocate the love of our parents and
take care of them when they are old. To encourage family support, we
will:
first, establish 12 visiting health teams in 1998-99 to provide
services to the elderly living in the community and give support to
their carers;
second, set up 15 additional home help teams in the next financial
year to assist the elderly living with their families in the
community;
third, set up two Carer's Support and Resource Centres in 1998 to help
families looking after the elderly; and
fourth, review public housing allocation arrangements to encourage
eligible family members to live with older members.
118. We really need to know just how great the need for services is,
particularly for residential care, in order to plan properly. I have
asked the Elderly Commission to carry out a comprehensive assessment
on the longer term demand for elderly housing and residential care
services and draw up a strategy for both the private and public
sectors to meet the needs. They will make recommendations next year,
and I will follow up on what more needs to be done in my next Policy
Address.
119. In the meantime, we will increase the supply of housing for the
elderly by introducing a "Senior Citizen Residence Scheme", under
which flats will be built in the urban area to lease for life to the
elderly. We will also increase subvented residential care places by
2,400 through the Bought Place Scheme over the next three years. A new
Dementia Supplement will be introduced and the Infirmary Care
Supplement will be maintained to enable subvented care homes to
provide continuity of care to the elderly.
Health and Worthiness
120. To promote the health and sense of worthiness of the elderly, we
will improve medical care, social services and opportunities for the
elderly to join in community life. We will set up 12 elderly health
centres in 1998-99 to provide a new integrated elderly health service
comprising preventive, promotive and curative health services. An
extra psychogeriatric team will be set up to reach another 4 600
patients each year.
121. So that the elderly can lead a more active and purposeful life,
the multi-service centres for the elderly will also introduce an
Elderly Volunteer Programme to encourage senior citizens to continue
to contribute to the community. By 2000, 36 integrated teams to
provide dedicated social networking and outreaching services to the
vulnerable single elderly will be set up.
122. The improvements to services for the elderly that I have
announced will lead to total recurrent expenditure on direct services
rising to $5.1 billion in 1998-99. That is on top of the $9.4 billion
we will spend on financial assistance.
CSSA Review
123. There has been much public debate about what is meant by
providing adequate social security to those who do not have the means
to support themselves. I am aware of the concern that some elderly
persons are not eligible for CSSA payments if they have assets above a
certain level. There is consensus in the community that more must be
done for the elderly, particularly the single elderly. We need to be
compassionate and caring. But, we should not remove incentives to
work. To ensure that neither of these considerations are compromised,
I have asked the Secretary for Health and Welfare to conduct a study
on the scope and the administration of the CSSA scheme in 1998.
Services for People with Disabilities
124. We also must ensure that the needs of people with disabilities
are addressed. Our goals remain to provide suitable rehabilitation
services and support and assistance to this group, so that they can
develop their potential and integrate fully into this community,
sharing the same opportunities as their fellow citizens.
125. Recent efforts have significantly improved services. However, the
Health and Welfare Bureau, in consultation with voluntary and
non-governmental organisations (NGOs), will review the demand for
different types of services and support next year. We will plan ahead
for the next five years in the light of the findings to meet the
special needs of this group.
Newly Arrived Citizens
126. Another group to whom we have to respond are the children of Hong
Kong citizens born in the Mainland. All those eligible under the Basic
Law have a right to come here. Ours is a caring society. Our duty is
to ensure that our new citizens quickly feel part of our community and
can rapidly start to contribute to our society. We need to make sure
that we have the proper facilities to receive these children without
affecting existing programmes and services for the community. I have
noted the steps that we are taking to provide education, training and
housing. We are encouraging a wide variety of social services adapted
to the needs of these new citizens. We are working closely with the
authorities on the Mainland to make the necessary arrangements for the
arrival of these children. The Secretary for Home Affairs is
co-ordinating the delivery of services by government departments and
NGOs, to ensure that all new arrivals know the services that are
available and are helped to find work or support where they need it.
Continued Page 6
Full text of Tung Chee-hwa's speech
From Page 5
Women
127. The women of Hong Kong make a most significant contribution to
the prosperity and progress of our community. My Administration will
always give consideration to the interests of women, and to the
promotion of equality of opportunity in our community.
Continued Improvement in Health Care
128. Health is a valuable asset. In Hong Kong today, we already enjoy
a standard of health care that compares well with any developed
country. We will work continuously to improve our health care system
for the benefit of our community.
129. Starting with preventive medicine, we will increase our
co-operation in worldwide efforts to monitor disease patterns and
enhance our ability to respond effectively to outbreaks. At the same
time, we will strongly promote health education programmes. Many
illnesses common to women or to the elderly can be prevented: we must
ensure that they have the knowledge and the support needed to enjoy
healthier lives. Health facilities will also be improved with the new
Kowloon Bay Primary Health Care Centre and Nursing Home opening next
year, providing new general out-patient and specialist treatment
services as well as a radiography support centre. To extend our
hospital services, we will bring into use 754 additional hospital beds
next year.
Health Care Review
130. Our health care professionals in the public and private sectors
provide a service of high quality to the community, which reflects
well on their commitment and training. I fully understand the concerns
that have recently been raised about our hospital services. These are
important issues for us, and the Hospital Authority is addressing
them. There are also questions about out-patient services that we need
to deal with. Beyond these, our health care system faces a number of
challenges in the longer term. We have a growing and ageing
population. The community has ever rising aspirations for quality
care. As a result, health care expenditure will continue to escalate.
To help us draw up suitable long term policies, the Secretary for
Health and Welfare will carry out a comprehensive review of our
existing health care system during 1998.
131. In the review, we will examine how to achieve a better interface
between primary health care, out-patient and hospital in-patient
services. We will review whether the existing split of workload
between the public and private sectors is reasonable. We will also
study how patients and the community can best share our health care
costs. I will address this subject further in my 1998 Policy Address.
Chinese Medicine
132. For the protection of public health, we aim to introduce a bill
in the next legislative session to establish a statutory framework to
recognise the professional status of traditional Chinese medicine
practitioners; to assess their professional qualifications; to monitor
their standards of practice; and, to regulate the use, manufacture and
sale of Chinese medicine. The establishment of a sound regulatory
system will lay a solid foundation for the future development of
traditional Chinese medicine within our overall medical care system. I
strongly believe that Hong Kong has the potential to develop over time
into an international centre for the manufacture and trading of
Chinese medicine, for research, information and training in the use of
Chinese medicine, and for the promotion of this approach to medical
care.
G. Vietnamese Boat People
133. For over twenty years, Hong Kong has played an outstanding part
in coping with the burden of Vietnamese boat people. 143,000 refugees
have been resettled to third countries, 69,000 migrants and illegal
immigrants have been repatriated to Vietnam. Today only 1,300 refugees
and 800 migrants remain in Hong Kong, to which recently have been
added about 1,000 illegal immigrants. We have done our part as
citizens of the world. It is time to bring this issue to a close one
way or another. We are developing strategies to resolve the remaining
aspects of this problem as soon as possible.
134. The recent arrivals are illegal immigrants and we are pursuing
arrangements with the Vietnamese authorities to secure a faster pace
of repatriation. We are also seeking the Vietnamese Government's
assistance in the return of the 800 non-refugees who arrived while the
Comprehensive Plan of Action was still in effect. We are pressing the
United Nations High Commissioner for Refugees (UNHCR) and the
international community to work harder to arrange for the resettlement
of the remaining 1,300 refugees, and to continue to look after them
while they remain here. We will also continue to press the UNHCR to
repay the debt that is owed to Hong Kong. In pursuit of these
objectives, we have the full support of the Central People's
Government. I will also be urging the United Kingdom Government to
discharge its continuing moral responsibility to assist in reaching a
full solution to this problem.
H. The Administration of Justice
The Judiciary
135. The Basic Law provides for the continuation of the rule of law
and the judicial system beyond 1 July with no fundamental changes. The
common law and all the laws previously in force in Hong Kong, except
for any that contravene the Basic Law, are maintained; the judicial
system continues to operate fairly and independently as before.
136. One major change to the judicial system, a change which is
welcomed by all, is that the power of final adjudication is now vested
in the Court of Final Appeal of the Hong Kong Special Administrative
Region. The Court was set up on 1 July 1997. With the appointment of
judges and formulation of court rules, the Court is now fully
functioning. For the first time in our history, we have a fully
integrated system of courts within Hong Kong.
137. Another milestone in our judicial system has been the
establishment of a bilingual court system in which the Chinese
language can be used along with the English language. We take pride in
having a court system capable of dispensing justice in a language
which the vast majority of Hong Kong people can understand. At the
same time, it is important that the common law is maintained and
developed. There are difficulties that can arise when Chinese is used
in the common law setting, so the Judiciary has been implementing the
use of Chinese in courts prudently, so as not to compromise the
operation of the common law in any way.
138. A credible and independent judicial system underpins Hong Kong's
present success. I am confident that the Judiciary will continue to
uphold the rule of law in Hong Kong by dispensing justice without fear
or favour.
Legal Aid
139. Central to the rule of law is the equality of every person before
the law. Our legal aid system ensures that no one is prevented from
seeking justice because of a lack of means. In the coming year, we
will improve the service provided by the Legal Aid Department,
restructure the Department and streamline its work procedures.
140. We will continue with the Legal Aid Policy Review on further
improvements to our legal aid system. Particular consideration will be
given to reviewing the criteria used to assess the financial
eligibility limits and access to the legal aid system. We aim to begin
public consultation before the end of this year.
I. Upholding the Law
A Police Force of the Highest Quality
141. The Hong Kong Police Force is one of the best equipped and
trained in the world. They have made Hong Kong one of the safest
cities in the world.
142. We are not complacent with what we have achieved. We are
determined to maintain the Police Force as one of the finest, and
further improve its effectiveness. We will:
strengthen Police intelligence and detection capabilities;
deploy additional Police officers for front-line operational duties;
strengthen liaison with overseas law enforcement agencies to tackle
international organised crimes, and enhance co-operation with the
Guangdong authorities to tackle serious trans-boundary crimes between
Hong Kong and the Mainland;
upgrade the anti-smuggling and anti-illegal immigration capabilities
of the Marine Police; and
continue to foster a service culture in the Police Force and emphasise
the importance of integrity and honesty.
The ICAC
143. A generation ago, Hong Kong set its face firmly against
corruption. Thanks to resolute action, the Independent Commission
Against Corruption (ICAC) has succeeded in bringing this problem under
control, a vital ingredient in the common prosperity that the
community has created since then. Let me make it clear that the SAR
will not tolerate any form of corruption. The SAR Government is
committed to the fight against corruption in every area of public and
private life. To show that commitment in practice, additional
resources will be provided to enable the ICAC to strengthen its
investigation and prevention capability.
144. In the coming year, the ICAC will continue to enhance ties with
Mainland and international counterparts. Together with the Guangdong
Provincial People's Procuratorate, it will produce a new legal guide
for investors. It will also establish an International Assistance
Section to develop co-operation with other anti-corruption agencies in
investigating corruption-related crimes which transcend international
boundaries. I am confident that with the concerted effort of the ICAC
and the community at large, we will keep corruption at bay.
J. Public Administration
The Political Structure: Hong Kong People Ruling Hong Kong
145. Finally, I turn to our system of Government. The SAR Government,
in accordance with the Basic Law, is developing a political system
under which Hong Kong people are ruling Hong Kong. My Administration
is devoting attention to preparing for the election of the first SAR
Legislature and to the steady development of Hong Kong's democracy.
The elections will take place on 24 May next year. Legislation for the
conduct of the elections has just been passed by this Council. We have
just established the Electoral Affairs Commission to oversee the
elections, to ensure that they are carried out openly and fairly. A
vigorous, territory wide campaign to register voters and update the
electoral roll will be conducted. I urge every eligible resident to
register and to vote. I welcome every person or party who seeks to
represent the community to put themselves forward for election.
146. Next May's elections are the first step in a ten year timetable
laid down by the Basic Law for the elections of the Chief Executive
and the Legislative Council. Annex I of the Basic Law sets out the
method for electing the Chief Executive, while Annex II lays out the
method for forming the first, second and third terms of the
Legislative Council and its voting procedures. The two annexes also
set out the procedures to be followed should the method for electing
the Chief Executive or the Legislative Council after 2007 need to be
amended. While the broad framework has been settled, there are many
details that need to be worked out. We will be working out these
details in accordance with the principles of democracy and openness
required by the Basic Law and expected by the people of Hong Kong.
Together we will work steadily towards our long term objective of
having a Chief Executive and a Legislature elected by universal
suffrage.
147. We should take a fresh look at the regional organisations, the
Municipal Councils and the District Boards, so as to decide for
ourselves whether the present structure of local representative
government will continue to ensure the efficient and responsive
delivery of services to our evolving community. I have asked the
Secretary for Constitutional Affairs to consider how to take forward
public consultation on this issue.
An Efficient and Accountable Executive
148. The Hong Kong SAR has an executive-led government. To lead, we
must listen carefully and explain clearly what we intend to do. In the
programme that I have outlined today, and through the presentations
that each of the Bureau Secretaries will make over the coming week, we
want to assure the community that your Government remains committed to
listening to community views and responding by setting out clearly how
we plan to meet our long term objectives. We remain committed to
debating publicly issues of importance to the community, so that all
have the opportunity to take part in the process. The authority to
enact legislation, and to approve budgets, taxation and public
expenditure, rests with this Council in accordance with the Basic Law.
The executive arm of Government will continue to serve the community
through the proper exercise of its powers and the faithful discharge
of its responsibilities under the monitoring of the Legislature and
the public.
149. For many years, Hong Kong people have been used to learning about
government policy and actions through the news media. There was some
concern that the freedom of the press would be curtailed on the
establishmentof the SAR. I can assure everyone that this Government
will remain an open government, respecting the freedom of the press
and of the media.
The Civil Service
150. We are privileged to have a dedicated, honest and efficient Civil
Service that has gained the deep respect of the local and
international community alike. In the past three months as Chief
Executive, I have been struck by their professionalism and continuous
quest for improvement. The content of this Address and the Policy
Programmes we are publishing this afternoon demonstrates their
commitment.
151. A high quality public service requires an effective management
process. I have tasked the Secretary for the Treasury to lead a
special group to develop and implement a target-based management
process to achieve continuous improvement in public services. The
group will focus its early efforts on the areas of housing and care
for the elderly. We must manage for results, by results.
152. To promote the objective of managing for results, we must expand
the leadership and strategic management capacity of the civil service.
To this end, the Secretary for the Civil Service will organise a
tailor-made high level leadership programme for the senior officials
who lead and manage the change process.
Expenditure
153. The programme that I have set out today will lead to an increase
of $7.7 billion in recurrent spending in the next financial year,
rising to $18.6 billion annually for the financial year beginning in
April 2001. Over the same five year period, capital expenditure of $88
billion will be incurred because of the initiatives in this Address.
This represents public money being reinvested in the community to
carry Hong Kong into the new millennium. We can afford to make these
investments because of the strength of our reserves, to which have
been added the Land Fund assets, and because of our careful management
of public finance. Recent events in Southeast Asia have shown the
importance to Hong Kong of maintaining strong reserves and prudent
fiscal management. But, my Administration will not hoard public funds
unreasonably. We will continue to seek ways to return the benefits of
today's prosperity to the community, and to invest wisely to ensure
future prosperity and the strengthening of Hong Kong's
competitiveness. The Financial Secretary is reviewing our financial
situation carefully, and will discuss the role played by our reserves
in the financial management of the SAR Government in his next Budget.
Conclusion
154. I understood, as I drew up this Policy Address, that what I say
today will affect the future development of Hong Kong and the
interests of each and every citizen. I asked myself some searching
questions: is our outlook broad enough? Is our thinking down to earth?
Has our direction reflected the fundamentals of a free market economy
and the principle of prudence in financial management? Has our
thinking reflected the feelings and aspirations of our citizens? Have
we only delivered the good news and not the bad in our assessment of
the current situation? Are we making promises to our citizens we
cannot realistically achieve? Have we ensured the development of
democracy by proceeding in an orderly fashion and in accordance with
the principle of steady progress? Have we allowed our attention to be
distracted by too many things, and lost focus? All these questions
have been in my mind during the entire process of preparing this
Policy Address, and will, I am sure, guide me in my work during the
coming five years.
155. In finalising the HKSAR Government's first Policy Address, my
colleagues and I share a common feeling: through our efforts, all the
tasks set out in this Address can be accomplished. My confidence is
based on Hong Kong's abundant human resources, our strong financial
position, the unique opportunity before us, and the strong support of
our country. In years gone by, the people of Hong Kong, mostly
Chinese, have created the miracle that is Hong Kong. Now, being our
own masters, I have no doubt we will be able to create an even better
future for our city.
156. Hong Kong has a bright future. I sincerely hope that I will have
the support of all Honourable Members, all my Civil Service colleagues
and all the citizens of Hong Kong. I sincerely hope that each and
every one, with the same sense of responsibility and commitment that
we have towards our own families, will join hands to achieve our goals
as we move steadily forward.
All rights reserved.
END
