V.Making Hong Kong an Ideal Home 86. As we set out to build Hong Kong into a world-class city, we should first endeavour to make Hong Kong a clean, comfortable and pleasant home of which we are proud. A real change in the quality of Hong Kong's environment needs more than just cleaning up litter and enforcing environmental laws, it requires a fundamental change of mindset. Every citizen, every business, every government department and bureau needs to start working in partnership to achieve what is known as "sustainable development". Putting it in simple terms, sustainable development for Hong Kong means: finding ways to increase prosperity and improve the quality of life while reducing overall pollution and waste; meeting our own needs and aspirations without doing damage to the prospects of future generations; and reducing the environmental burden we put on our neighbours and helping to preserve common resources. 87. Hong Kong is richly endowed by nature. Past efforts at building our city have contributed to the beauty of our landscape. Hong Kong, the "Pearl of the Orient", is indeed worthy of its name. However, our environment has been deteriorating due to rapid population growth and economic development, the community's lack of environmental awareness, and the fact that our commitment and long-term planning for environmental protection have not kept pace with changing circumstances. Pollution has not only tarnished Hong Kong's image as an international city, but also greatly affected our health. It is high time we faced up to the problem, and do all we can to improve our living environment. 88. Here I would like to talk about three major environmental problems and three major tasks in building a quality living environment for our citizens. I shall also outline the Government's current objectives, strategies and measures. A.Air Pollution 89. The Government's air quality objectives spell out the maximum safe levels of major air pollutants in the ambient air. Such standards are similar to those adopted in the United States. Of all the pollutants, respirable particulates pose the greatest threat to our health. The average level of respirable particulates in Hong Kong, as recorded at most of the air quality monitoring stations is nearly 50% greater than New York, and consistently approaches or exceeds the maximum level laid down in our objectives. As regards the other major pollutants, nitrogen oxide levels are on the rise and often approach or exceed the maximum levels. Ozone levels, which were relatively low in the past, have increased significantly in recent years. This problem, which is affecting our health, is already serious and may get worse. Hence we should no longer delay in taking action against air pollution. 90. The SAR Government is keenly aware of the severity of the problem. After careful deliberation, we have drawn up a series of new measures. The objectives are to reduce the total emissions of respirable particulates emitted from vehicles by 60% by end 2003, and 80% by end 2005, by which time nitrogen oxide emissions should also be reduced by 30%. When we meet these initial targets, our air quality will compare favourably with that of major cities in developed countries such as New York and London, and the respiratory health of our citizens will substantially improve. 91. To achieve these goals, we need the right solutions for tackling air pollution. The deteriorating air quality in Hong Kong is mainly due to pollution at street level caused by vehicle emissions and regional air pollution caused by economic activities throughout the Pearl River Delta region including Hong Kong. The latter problem needs to be solved on a regional level and I shall return to it later. 92. In Hong Kong, vehicle emissions are often trapped by high-rise buildings and hilly surroundings. Although we have an efficient public transport system which has kept car ownership at a relatively low level, the average road utilisation rate is about four or five times higher than that in Japan or the UK. Moreover, 135 000 or nearly 30% of our existing fleet of half a million vehicles are diesel-powered, compared with only 17% in Singapore and 10% in the UK. Diesel vehicles account for nearly 70% of the total distance travelled on our roads. 93. As a result, diesel vehicles account for 98% of the respirable particulates and 85% of the nitrogen oxide emitted by vehicles. Overall, they are responsible for 52% of the respirable particulates in the air throughout the urban area, and for 60% of ambient nitrogen oxide. Therefore, the key to prevent and abate air pollution at street level is to control the use of, improve and replace diesel vehicles. Comprehensive Control on Diesel Vehicles 94. More stringent standards for new diesel vehicles, known as Euro standards, were introduced as early as 1994. However, piecemeal measures cannot solve the problem completely. We have thus drawn up a comprehensive set of policies to be implemented now to combat pollution caused by diesel vehicles, including taxis and light buses as well as light, medium and heavy diesel vehicles. 95. At present, there are 18 000 diesel taxis in Hong Kong. We have decided to stop importing diesel taxis after next year. To encourage early replacement of the existing taxis, we will be providing grants at an appropriate level to assist owners to switch to LPG vehicles. We are proposing to the taxi trade that all diesel taxis over seven years old be taken off the road by 2003 and that no diesel taxis will be allowed after 2006. 96. There are at present 6 000-odd diesel light buses in Hong Kong. Starting in April next year, we will launch a six month trial scheme for LPG light buses. If the results are satisfactory, we intend to provide financial assistance similar to that for the taxi trade to encourage operators to switch over to LPG light buses from 2001. 97. It is also important that we provide adequate infrastructure for the operation of LPG taxis and light buses. The Government is offering LPG suppliers incentives to construct a network of LPG filling stations and is organising training courses for LPG vehicle mechanics. 98. Apart from diesel light buses, Hong Kong has another 70 000 diesel light vehicles, 50 000 of which are of pre-Euro standard. On a trial basis, particulate traps will be installed in these pre-Euro-standard vehicles to reduce pollution. If the results are satisfactory, we intend to provide grants to owners in 2001 for the installation of these devices. In the longer term, we will consider the need to replace all diesel light vehicles. 99. There are 12 000 diesel buses and almost 40 000 other medium and heavy diesel vehicles in Hong Kong. Half of these buses and over 60% of the medium and heavy diesel vehicles, totalling some 30 000, are pre-Euro standard vehicles. Installing catalytic converters is the best way to reduce emissions from these old diesel vehicles. The franchised bus companies have started to install these devices in their older vehicles. We will be conducting trials to identify catalytic converters that are suitable for other types of medium and heavy diesel vehicles, and we hope to draw up specifications by 2001. Grants will be provided for owners of these old diesel vehicles to install a suitable catalytic converter. 100. A total of $1.4 billion has been set aside as grants to owners of taxis, light buses and other pre-Euro standard diesel vehicles for the purpose of switching over to LPG, installation of particulate traps and the fitting of catalytic converters. These grants will be made available after consultation and Legco approval. I am sure this major expenditure will be worthwhile. It also serves to underline our commitment to improve air quality. 101. Upon implementation of the scheme, the installation of particulate traps or catalytic converters will be required for the registration renewal of all pre-Euro standard diesel vehicles. In addition, like most European countries, we will be adopting the more stringent Euro III emission standard as from 2001. From that year, no new diesel vehicle will be imported unless it complies with this standard. We will also tighten our control over the sulphur content of diesel fuel. Stronger Actions against Smoky Vehicles 102. The Environmental Protection Department is expanding its smoky vehicle spotter programme and has been using more sophisticated testing equipment for smoky vehicles since last month. Starting from next year, all commercial vehicles will be required to have their emission control equipment tested every year. Meanwhile, the Police have stepped up enforcement action against smoky vehicles. Later this month, we will put before this Council legislation to increase the fixed penalty for smoky vehicles to $1,000. When more facilities, technicians and equipment are available for maintenance, the Government will consider whether to further increase the fine. In addition, the Customs and Excise Department is stepping up action against the illegal importation of diesel fuel with higher levels of pollutants. We will also consult the public shortly on the control of idling engines. Pedestrianisation 103. We are planning for pedestrian precincts on both sides of the Harbour and in a number of new development areas. We also intend to expand the pedestrian zones in crowded and more polluted parts of our city so as to reduce pollution caused by vehicle emissions. The Transport Department has commissioned consultants to carry out relevant studies in various districts, including Causeway Bay, Tsim Sha Tsui and Mong Kok. Our tentative plan is to designate certain streets with heavy pedestrian flow as pedestrian priority zones, for example, in the vicinity of Times Square in Causeway Bay, Peking Road in Tsim Sha Tsui and Nelson Street in Mong Kok. We hope to start consulting the public in the next few months, and to implement these plans from the middle of next year. New Comprehensive Transport Strategy 104. Nevertheless, in the long run, if the number of vehicles on our roads continues to increase, and if they still run on fossil fuels, the improvements in air quality brought about by our efforts will not be lasting, no matter how hard we try. Findings in the recently completed Third Comprehensive Transport Study have made that very clear. The Study also highlights the need to revise our comprehensive transport strategy. The Secretary for Transport will soon be presenting a package of recommendations based on the findings of the Study. In fact, we have already adjusted our strategy to encourage the use of less polluting modes of transport, for example, by improving railway services and pedestrian facilities in newly developed areas. To develop environment-friendly modes of transport, how much they cost, how to share infrastructural investment and how to determine the charges to be borne by users, are all questions that will need to be solved in ways different from traditional thinking. New strategic plans for investment in transportation and land will also be drawn up. 105. Other measures to prevent and abate air pollution will be taken by the bureaux concerned. For example, apart from the introduction of new emission standards for motorcycles earlier this month, we will impose more stringent control over pollutants contained in petrol next year. Proposals for phasing in age limits for different categories of vehicles will be presented for consultation next year. We will need to explore longer term measures, such as conducting feasibility studies on an electric trolley bus system and other electrically powered vehicles, and examining the possibility of increasing the use of natural gas to partly replace other fuels for vehicles and power-generating. Furthermore, we will soon put forward a proposal on an indoor air quality certification scheme for public consultation. Government buildings will take the lead in implementing the scheme. B.Water Pollution 106. Next, I will talk about the prevention and control of water pollution. This issue covers two areas, first, clean drinking water and second, sewage treatment. Drinking Water 107. As Dongjiang is a major source of Hong Kong's drinking water, some people have raised questions as to whether the pollution in the river has affected the quality of our fresh water supply. First of all, I would like to emphasise that Hong Kong's drinking water is absolutely clean and safe. The quality of water from Dongjiang meets the Mainland standards. In addition, the treatment procedures here in Hong Kong are very stringent. The quality of treated water meets World Health Organisation standards for water suitable for immediate consumption and is comparable to the US national standards for drinking water. 108. Maintaining the quality of Dongjiang water supplied to Hong Kong is a long-term priority for us and for the Guangdong authorities. Undeniably, the economic developments along Dongjiang have caused pollution of the river. To tackle the problem, the Guangdong authorities joined forces with the SAR Government and moved the Dongjiang intake upstream to avoid taking in the more contaminated water from the tributaries. The Guangdong authorities also plan to construct, within four years, a closed aqueduct to replace the existing open channel from the Dongjiang intake to the Shenzhen Reservoir. To effectively prevent and control the pollution of Dongjiang, measures including the provision of sewage treatment facilities along the river, better land use and stronger enforcement actions against pollution at source are also being taken. 109. We believe that all existing projects and plans for improving the quality of the Dongjiang water supplied to Hong Kong are moves in the right direction. The SAR Government is actively co-operating with the Guangdong authorities in this important task. We will examine carefully the valuable input from all sectors of the community and monitor the progress and outcome of the works to make sure that we are on top of any problems that may arise. Sewage Treatment 110. Clean harbours and rivers are more than a pleasure to look at. They provide favourable conditions for sports and recreation and are beneficial to our health. To tie in with the overall sustainable development of Hong Kong, major infrastructural projects have been put in place to improve the sewage collection and treatment systems. As water pollution problems vary from place to place, different solutions need to be found. 111. The waterways in the New Territories used to be heavily polluted by livestock waste. As a result of the Government's efforts over the past decade, the rivers now generally flow smoothly and have good water quality. However, there is still pollution of rivers and streams by disposal of untreated wastes from scattered villages not covered by the sewerage network and from other sources. We are working on the solutions which include, for example, removing 80% of the remaining pollution load in the Shing Mun River. The situation in the new towns is better as most of them are served by advanced sewage treatment facilities. Water pollution arising from the older urban areas on Hong Kong Island and in Kowloon is much more serious. 75% of the sewage produced by the some 5 million urban residents is discharged into the Harbour after coarse screening only. Strategic Sewage Disposal Scheme 112. As part of our efforts to tackle the sewage problem that I have just described, the Strategic Sewage Disposal Scheme (SSDS) is being implemented as quickly as possible. We are building a massive network of tunnels 150 metres below the surface of the Kowloon peninsula. This is part of Stage I of SSDS. Other projects include a sewage treatment works on Stonecutters Island and a submarine pipeline to carry treated sewage to the western seabed of the Victoria Harbour for discharge. Both projects have been completed and the sewage treatment works has come into operation. Over half of the tunnel network, which will be 23 km in length, has also been completed. On completion, the network will collect all the sewage from Chai Wan, Tseung Kwan O, Kowloon, Tsuen Wan, Kwai Chung and Tsing Yi, which will then be carried to Stonecutters Island for treatment. At present, of the effluents discharged into our inner harbour, 70% comes from these districts. We should therefore lose no time in completing the network. However, the construction of these tunnels has been very difficult and is taking longer than we all had hoped. The latest estimates from the engineers are that the projects may not now be finished until well into 2001. 113. We are also actively making preparations for Stages II, III and IV of the SSDS. This part of the plan calls for building collection tunnels on Hong Kong Island, construction of a tunnel from Hong Kong Island to the treatment plant on Stonecutters Island, upgrading of the treatment system to include disinfection, and building a longer tunnel that will discharge treated sewage outside the harbour area. All these projects were originally scheduled to be completed by 2008. 114. While the general strategy for collecting and treating sewage from the main urban area remains sound, experience with Stage I suggests that we need to re-schedule the completion dates and re-assess the costs of the projects in the later stages in a more conservative manner. To this end, we will set up an independent expert group within the next few months to examine whether these projects can really provide the most cost-effective and environmentally friendly means for handling the sewage from Hong Kong Island. This will help avoid further changes and consequent delays to the projects needed to protect the water quality of the harbour. Increasing Expenditure on Sewerage Works 115. The SSDS is a huge project. Stage I alone will cost a total of $8.2 billion and the total costs for the remaining works will reach an estimated $18 billion. Even so, Hong Kong's entire sewerage improvement programme is so massive that the SSDS only accounts for less than half of the overall expenditure. Our plans call for us to invest heavily in sewerage systems and treatment works in other areas including the new towns and small villages in the New Territories, as well as protecting the Mai Po Nature Reserve. Such spending will increase by 50% to $9 billion in the next five years. C.Solid Waste 116. An excessive output of solid waste is a headache for affluent societies. Hong Kong is not immune from it. Last year, despite the economic downturn, we still produced about 45 000 tonnes of solid waste every day, of which 10 000 tonnes were municipal waste and over 32 000 tonnes were construction and demolition materials, enough to fill up a medium-sized ocean-going freighter. After recycling, there were still over 8 000 tonnes of municipal waste and 7 000 tonnes of construction and demolition materials dumped at the landfills each day, filling them up much faster than expected. To prevent waste accumulation from becoming a serious long term problem and hampering the development of Hong Kong, we must seek to reduce waste, increase the recycling rate, and find proper ways of disposal. Waste Reduction 117. The Waste Reduction Committee was established earlier this year. Its target is to double the overall rate of municipal waste reduction and recycling by 2007. Measures are already being taken to this end. Waste separation facilities are now available in all public housing estates and many private residential developments. In addition, the Government has provided land to facilitate the operation of the waste collection and recycling industry. In general, waste reduction can be encouraged by levying a suitable charge on waste collection and disposal as well as improving all commercial packaging. But given that our consumer goods are mainly imported, controlling their packaging is by no means easy. As for collecting a waste disposal fee, the Government will put forward a proposal for a landfill charging scheme shortly. Recycling 118. On the waste recycling front, we have achieved some results. In Hong Kong last year, 78% of the construction and demolition materials were recycled. As for municipal waste, 80% of metals, 35% of plastics and 53% of paper products were recovered for recycling. While these figures are not low by world standards, they do not reflect the fact that only 8% of recoverable domestic waste was recycled in Hong Kong. We must step up our efforts in this area. With this in mind, we will seek funding in the coming year to construct new waste separation facilities. We will also encourage the new District Councils to explore ways to increase the recovery rate of reusable materials in collaboration with the business sector and local communities. Waste to Energy 119. Regardless of what efforts we may make in reducing waste at source and increasing reuse and recycling rates, we will still be left with large volumes of waste that need to be disposed of in an environmentally responsible manner. We are restoring old landfill sites at a cost of $2.3 billion and are seeking to turn the combustible gases into energy. We will be consulting the community in the coming year on proposals for new waste management facilities, including waste-to-energy incinerators that meet the highest environmental and health standards. We will have to invest over $10 billion on such facilities in the next decade. D.Co-operation with the Mainland 120. Hong Kong cannot possibly solve all of its environmental problems single-handedly. We need to work closely with the Mainland authorities. We have recently reached an agreement with the State Environmental Protection Agency to the effect that any movement of waste between Hong Kong and the Mainland should conform with the Basel Convention. We also need the co-operation of our neighbours, for example to protect our air and water quality. They in turn need our support since some of their pollution problems originate from our economic activities. 121. Along with rapid economic development in recent years, the Guangdong Province has done much in environmental protection and with significant results. At the very same time as the Governor of Guangdong Province, Mr. Lu Ruihua, is making an announcement, I am glad to announce here that Hong Kong and Guangdong will co-operate in six areas of environmental protection. First, to complete a joint study on regional air quality by early 2001 and to formulate long-term preventive measures as soon as possible. Second, to study the feasibility of adopting common standards for diesel fuels in both Guangdong and Hong Kong, and to draw up an implementation plan. Third, to co-operate in forestry conservation by exchanging relevant information and technical knowledge. Fourth, to reinforce co-operation on controlling pollution of Dongjiang as well as improving its water quality. Fifth, to enhance the exchange of data on the water quality in the Pearl River Delta Region, so as to formulate a management plan to improve the water quality around the Pearl River estuary. Sixth, to pay close attention to the environmental impact of town planning and development, and to strengthen our co-operation and liaison in these two aspects. We have also agreed to set up a "Joint Working Group on Sustainable Development and Environmental Protection" under the Hong Kong/Guangdong Co-operation Joint Conference to co-ordinate our efforts in these areas. I sincerely hope that our collaboration will be a fruitful and useful one. [more ...]