47. Hong Kong people are increasingly concerned about environmental protection. Building a quality living environment has become the key to attracting talent from all over the world and realising sustainable development. Over the past few years, we have made good progress in reducing the pollution caused by motor vehicles and implementing effective measures to treat urban sewage. On the treatment of solid waste, the Government has legislated to require those disposing of construction waste to meet the cost of disposal, marking an important first step in implementing the "polluter pays" principle. We will also strengthen various reuse and recycling measures to effectively contain the rate of increase in solid waste.

48. We will formulate a policy to provide concessions to assist the development of the environmental industry. At present, high-technology, capital-intensive and land-demanding recycling operations can already be conducted in our industrial estates. We plan to build a Recovery Park in Tuen Mun for exclusive use by recycling industries. The first phase of the Recovery Park will be commissioned in late 2006. Government departments will adopt a green procurement policy to help create a market for environmentally friendly products. We will also make it a policy to implement mandatory product responsibility schemes to ensure the recovery and recycling of the products concerned. In the long term, we need to consider the enactment of legislation on recycling to build a circular economy.

49. To control air pollution, the Government will impose caps on the total emissions of the power companies. We will also make it a policy to require them to maximise the use of natural gas in power generation and develop renewable energy. At the regional level, we will further strengthen co-operation with Guangdong Province to implement various emission reduction schemes and pollution control measures. Our specific target is for both sides to reduce by 2010 the emissions of four major pollutants to prescribed standards. That is, we will reduce the emission of sulphur dioxide, nitrogen oxides, respirable suspended particulates and volatile organic compounds by 40%, 20%, 55% and 55% respectively, using 1997 as the base year. Hong Kong and Guangdong authorities have strengthened liaison and carried out emission reduction measures. We are confident of achieving the target on schedule.

50. Water is an important and irreplaceable resource. We will therefore implement a Total Water Management policy. The Government has started to conduct research using the latest technologies to desalinate sea water and reuse domestic effluent, with a view to increasing local water resources as a long term goal. We will extensively promote water conservation within the community. Heavy users of water will continue to pay higher charges.

51. In respect of urban sewage treatment, we should adhere to the "user pays" principle. The Harbour Area Treatment Scheme Stage 1 has clearly proved effective. Stage 2 of the Scheme will proceed in phases shortly with a view to treating 2.8 million tonnes of sewage from both sides of Victoria Harbour in 2013. With the implementation of Stage 2, our harbour ecology is expected to gradually improve, bringing back a good harbour environment.

52. To improve the urban environment, we have set up an inter-departmental Greening Master Plan Committee. It has taken up overall planning on the greening of commercial districts such as Central and Tsim Sha Tsui. The plans for these two districts will be implemented in phases from the middle of this year for completion next year. In parallel, we will also start planning for other districts.

53. Some nullahs in urban areas have long been a source of nuisance to nearby residents. After an initial study, the Government has identified 16 sections of nullahs that can be improved and formulated a long-term plan to deck over them in phases. Of the 16 projects, eight will be completed in three years, four in six years and the remaining four in 10 years.

54. The Dragon's Back Trail has recently been named "Asia's Best". We will continue to protect our 44 000 hectares of country and marine parks to maintain Hong Kong's natural habitats for the enjoyment of all. We will conserve valuable ecological resources on private land through the voluntary participation of land owners in management and partnership programmes to achieve a "win-win" situation for the community and the land owners.