Governance

Governance in a modern society involves three main elements: equality for all before the law, judicial independence and the rule of law. respect for individual's rights, dignity, and freedoms. transparent and accountable government with community participation. These are protected by the Basic Law, and have become a reality. We have implemented "Hong Kong people running Hong Kong" as set out in the Basic Law. The political system stipulated in the Basic Law has functioned effectively. The Basic Law provides the SAR with 10 years during which we can strengthen the foundation of our political structure and accumulate experience through the process of implementation before taking the next steps. The composition of the Executive Council to be reviewed at the appropriate time according to changing circumstances and demands of Government's work. We should examine how we can enhance the accountability of principal officials at Secretaries and Directors of Bureaux rank. We will examine ways to strengthen the existing mechanism of communication with the Legislative Council. Consideration will be given to enhancing the roles of the District Councils in district affairs. We will enlist an even wider range of talent to ensure that in formulating policies, we can better reflect the ideas and proposals of both the public and experts.

Reforms and Initiatives

Embracing the knowledge-based New Economy: Introduced legal framework to promote electronic transactions. Phase One of Science Park will be completed by the end of next year. Preparation for the Applied Science and Technology Research Institute has commenced. Construction of Cyberport underway; will open in 2002. Further liberalised telecommunications and broadcasting markets. Improving the environment: Air pollution control measures on track. We will revisit electronic road pricing to reduce vehicle emissions and congestion. To formulate policies on promotion of waste recycling. Launch a new Clean Hong Kong Campaign by year-end. Improve co-ordination of greening. Financial reforms: Demutualisation, merger and listing of the securities and futures exchanges completed. Linked to NASDAQ. Growth Enterprise Market set up. Securities and Futures Bill to be published soon. Public housing: more flexible initiatives introduced. Over 3 years, more than 150,000 families have bought their own homes under various housing assistance schemes; 117,000 households have been allocated public rental units. Average waiting time for public rental housing to cut to three years by 2003. Welfare for the elderly: Waiting time for public rental flats for single elderly cut further. Next year, $100 million for 1,600 more subsidised residential care places. $70 million more next year for frail elderly to receive care at home. Reorganisation of Municipal Services completed. Most Civil Service reforms launched. Our annual recurrent expenditure will be $5.8 billion less than it was before the Enhanced Productivity Programme. All savings are to be used to provide better services.

Opportunities Abound

China's WTO membership and development of Western China and the Pearl River Delta will provide many opportunities. Keep local professionals informed of the opening up of the China market. Review policy on approving visa applications from professionals and make proactive but prudent efforts to admit those not readily available locally. Enhance our role as a passenger service hub, expand air services network and consider long-term links with the Pearl River Delta.