Mega projects, housing for the young and more

Authorities are mulling public financing to fund mega development projects for the Northern Metropolis and Kau Yi Chau artificial islands, Chief Executive John Lee said.

In his first interactive question and answer session, lawmakers expressed concerns about the financial burden to the government from large-scale infrastructure projects.

Finance sector lawmaker Ronick Chan Chun-ying asked Lee how authorities can relieve the public's doubts about the pressure on the government's finances when the two mega land projects are to be constructed at the same time.

"I hope that the chief executive can consider to promise that a large part of funds for the Northern Metropolis - and other large-scale infrastructure projects like the railways and major roads - will be raised in the market instead of solely relying on the government," Chan said.

Lee responded that authorities will consider relieving the government's financial pressure through market financing.

Lee then asked Chan how public financing can be conducted properly and whether securitization is feasible.

Chan replied that an essential criteria for securitization is to have a stable income. He suggested that when such securities are being launched, that the infrastructure projects must also have a stable revenue such as at tunnels or the MTR.

He also said the securities will generate a cash flow when the revenues from the infrastructure projects of the Northern Metropolis are stabilized.

For some development projects in the Northern Metropolis, such as the innovation and technology park, Chan said it will take a while for it to generate income, so he suggested that the government collect revenue from the land there through issuing land bonds. Bondholders can buy government properties or bid for land.

Federation of Trade Unions legislator Bill Tang Ka-piu asked Lee to allocate a certain amount of residential units to youngsters in new development areas in the future.

"Some housing units can be allocated for Hong Kong youngsters aged between 20 and 35, as currently they are paying about HK$4,000 to participate in some housing schemes," Tang said.

"Allocating some housing units can give young people hope and unite them in supporting the reclamation projects of the SAR government," he added.

Lee said he appreciated the "creative idea" raised by Tang and will consider it.

And New People's Party lawmaker Eunice Yung Hoi-yan asked Lee about how the labor shortage could be solved.

"I think the government has to provide a good population policy and must enhance technological developments," Yung added.

Lee said it is necessary to import labor, including hiring overseas staff to work at care homes.

"For the construction industry, some assessments have showed that the sector requires almost 10,000 workers in various aspects," he said. "We also realize that there's a manpower shortage in the public transport sector. I think we have to deal with shortage in these areas first."