B.        Work Review

4.         Last year, I raised the concept of “Strong Governance for the People” in my Policy Address. In the past year, I diligently put this concept into practice.

5.         On various occasions, I have explained what I mean by “strong governance”. At the Question and Answer Session of the Legislative Council last March, I explained that “the concept of ‘strong governance’ does not mean that the Government is omnipotent. Instead, it is our faith in a small, but strong and effective government that can rise up to challenges, operate with transparency and provide effective response at crucial times”. The purpose of strong governance is to serve the people. Strong governance means building up a culture of decisiveness as well as effective policy execution in responding to the demands of the people.

6.         Our country continues to provide strong support to Hong Kong. CEPA has continued to grow, with new measures introduced this year in the areas of trade and commerce, professional services and facilitation of investment. The Individual Visit Scheme has gradually expanded to cover all provincial capital cities in Pan-Pearl River Delta. We have recently received further approval from the Central Authorities to extend the Scheme to cover Shijiazhuang in Hebei, Zhengzhou in Henan, Changchun in Jilin, Hefei in Anhui and Wuhan in Hubei.

7.         The Hong Kong economy grew steadily last year. The Government has accelerated the pace of public investment to create more development and employment opportunities. With the support of the Legislative Council, we have started the tendering process for the Tamar Development Project, which covers the Central Government Complex, the Legislative Council Complex and public open space. The extension of the Hong Kong Convention and Exhibition Centre has also commenced. The merger of the Kowloon-Canton Railway and Mass Transit Railway systems will facilitate the rational expansion of our rail network. The Stage 3 consultation on Kai Tak Planning Review ended in August. The public generally supports the development of a cruise terminal at the tip of the former runway.

8.         During the past year, fiscal balance was restored. Total government spending in the 2005-06 financial year was reduced to 16.4% of our Gross Domestic Product (GDP). The main reason was the successful reduction of the size of the civil service as well as civil service salaries. The civil service establishment now stands at about 160 000, with salaries brought back to 1997 levels. Government departments have implemented effective cost-saving measures whilst maintaining high quality services. This bears witness to the fact that the Hong Kong civil service is amongst the finest you will find: a deep-rooted service culture, corruption-free, efficient and well disciplined. I am sincerely grateful to all civil servants for their devotion to duty.

9.         In the past year, I could see that what people treasured most was maintaining their quality of life, and to be free from threats such as avian influenza, food safety scares, and air pollution. We have now strengthened our infectious disease notification system with the Mainland. The Centre for Food Safety has been established. At the same time, the Government has launched the Action Blue Sky Campaign to join hands with the public to fight air pollution. In the face of economic changes, and on the premise of building a harmonious community with less conflict, I proposed that the Labour Advisory Board (LAB) thoroughly discuss the issue of a minimum wage and standard working hours. I am most grateful for the LAB’s in-depth discussions during the past year. In addition, the report on the review of the fair competition policy has been completed. Further consultation will start shortly.

10.       For the West Kowloon Cultural District (WKCD) project, in response to public views and requests from the cultural and arts sector, the Government has undertaken to reassess and plan again. The results are expected to be ready early next year. Separately, to tie in with the 11th Five-Year Plan for National Economic and Social Development, the Government convened an Economic Summit. In collaboration with the business community, the labour sector and the professional sector, we are continuing our deliberations with a view to reaching a consensus, after which we will draft a practical and feasible action agenda by the end of the year or early next year. These comprise the important work that I strived to undertake in the past year.

11.       The biggest challenge in the past year was the discussion on constitutional development. I made specific proposals for the election of the Chief Executive in 2007 and the formation of the Legislative Council in 2008. Although the proposals were backed by public opinion, they failed to secure the necessary support of a two-thirds majority of all Members of this Council. As a result, the status quo remains for the electoral arrangements for 2007-08. As Chief Executive, I feel that I was responsible for not securing the necessary support from the Legislative Council for constitutional development. Immediately after that episode, I started new discussions in the Commission on Strategic Development with a view to developing a roadmap towards universal suffrage. At the same time, I also suggested enhancing the function of District Councils by improving district administration and strengthening the role of District Officers. In this way, the spirit of strong governance may be extended to the district level.

12.       To prepare for democratic development, Hong Kong needs to encourage quality people to pursue a political career. The Government will continue to promote national and civic education. I have proposed creating new positions of Deputy Director of Bureau and Assistant to Director of Bureau to provide more channels for those who aspire to a political career in the Administration. These proposals are currently under consultation. A decision will be made in the first half of next year.