E.Adhering to the Principle of Sustainable Development 122. There are various factors contributing to sustainable development. Today, I will touch on three of them - institutional framework, social commitment and the environmental protection industry. Institutional Framework 123. I intend to set up a Council for Sustainable Development. Its functions will be to provide expert advice to the Government and keep the public regularly informed about its work, so that we can build a better understanding of the concept of sustainable development. It will also encourage the community to put the concept of sustainable development into practice. To further this objective, I propose that a $100 million grant be made to support community initiatives on sustainable development especially on educational programmes for citizens and students to develop a strong awareness of sustainability. The Council will report to me. Its relationship with other consultative bodies will be considered carefully, to ensure integration and the building of partnerships. Within the Administration, all bureaux will in future be required to carry out "sustainability impact assessments" of major new policy proposals. A Sustainable Development Unit will be established to monitor these assessments and provide analysis and support to the Council. Shared Commitment 124. To implement the various programmes that I have outlined, the Government will need to spend over $30 billion in the next ten years. This is without doubt an enormous sum, but as we all know, these infrastructural facilities are vital to the protection of public health. They are as indispensable as well-equipped hospitals, good schools and decent housing to a modern city. If we are reluctant to pay the cost today, we will have to pay more in future when the pollution problem gets worse. There can be no greater folly than this. 125. The key issue of concern is the question of who is to pay for the day-to-day operating and maintenance costs of the anti-pollution facilities whose capital costs have been paid for by the Government. The recurrent costs for handling sewage alone will total $1.1 billion this year and are expected to rise to $3 billion a year in ten years' time. It is everyone's responsibility to prevent and control pollution. In my view, it is only fair for the users and polluters to fully cover these recurrent costs through payment of charges. In future, when seeking approval for capital funding for sewerage programmes or waste disposal facilities, we will be asking Members of this Council to consider the issue of charges at the same time. Environmental Protection Industry 126. Effective environmental protection calls for a well-developed supporting industry. While the cost to the community of environmental protection is considerable, it will bring about many new jobs and business opportunities. Our business sector, researchers and financial institutions should explore more actively opportunities in the environmental protection market. To support this development, the Government will do its best to eliminate hurdles in our institutional and legal frameworks in a bid to make Hong Kong a showcase for a quality environment; and one which is able to offer comprehensive services, such as financial, technical and consultancy advice to support environmental improvements in the Asia-Pacific Region. If Hong Kong can become a pioneer in developing a set of innovative environmental protection technologies which are suitable for the Region, we can help create a green and sustainable environment not only for our own future generations, but also for our neighbours. F.A Quality Living Environment 127. A world-class city must have a pleasant and safe living environment. We must therefore do the following: first, implement urban renewal thoroughly; second, protect the natural environment of our countryside; and third, fully utilise and beautify the Victoria Harbour in an integrated fashion. Urban Renewal and Protection of Our Heritage 128. At present, there are many citizens still living in dilapidated buildings in old, run-down urban areas. Very often, this does not mean just poor living conditions, but risks to their safety and health as well. I have visited some of these old urban areas, and what I have seen has impressed on me the urgency of taking a new and more proactive urban renewal approach to bring real improvements to the living conditions of these residents. Out of the existing 8 500 urban buildings which are over 30 years old, some 2 200 require redevelopment or extensive repairs. Another 3 900 or so also require repairs of varying scale. In 10 years' time, the number of buildings over 30 years old will increase by 50%. This means that the aging problem of buildings is getting worse. The Urban Renewal Authority 129. The Land Development Corporation (LDC), which has been shouldering the arduous task of urban renewal, has completed a number of redevelopment projects, though not without difficulties. The obstacles include a protracted land acquisition process and a shortage of rehousing resources. It would take us at least 30 years to complete all the priority redevelopment projects. At this pace, we would not be able to arrest the overall deterioration of the urban areas. With this in mind, we intend to set up an Urban Renewal Authority (URA) next year to replace the LDC. The URA will be entrusted with powers to assemble land for redevelopment. Our proposals for the establishment of the URA will be set out in a White Bill to be published for public consultation later this month. We aim to introduce a bill into this Council early next year. When the URA is established and the new initiatives are implemented, we believe that all priority projects can be completed within two decades, instead of three as previously estimated. Comprehensive Redevelopment of Old Urban Areas 130. The new approach to urban renewal aims at facilitating comprehensive planning over larger areas, providing additional open space, green belts, and community facilities and improving road networks while preserving the distinctive features of the old districts concerned. Our urban renewal programme will focus on nine old urban areas, namely Ma Tau Kok, Tai Kok Tsui, Sham Shui Po, Yau Ma Tei, Yau Tong, Kwun Tong, Sai Ying Pun, Wan Chai and Tsuen Wan. Under-utilised industrial areas will also be included in our redevelopment programme to allow use for other purposes. 131. Financing arrangements will be put in place for the implementation of urban renewal projects. These include waiver of land premia for urban renewal sites, and packaging redevelopment projects so that financially viable projects can cross-subsidise non-viable projects. Loans will also be provided where necessary, and the residents affected will be properly rehoused. 132. Under this new urban renewal strategy, we will also focus on the proper maintenance of buildings. It should be pointed out that old buildings are not necessarily dilapidated. The main culprit is the absence of regular repairs. Unfortunately, attempts to legislate on building maintenance to ensure owners' compliance have not been well received. I would like to take this opportunity to appeal again to all of you for your support of our work in this area. The Secretary for Planning, Environment and Lands will announce shortly a proposal for a statutory scheme of preventive maintenance of buildings for public consultation. If this proposal is supported, then not only the residents and landlords concerned, but the entire community will benefit. Preserving Our Heritage 133. It is important to rehabilitate and preserve unique buildings as this not only accords with our objective of sustainable development but also facilitates the retention of the inherent characteristics of different districts, and helps promote tourism. The concept of preserving our heritage should be incorporated into all projects for redeveloping old areas. The Government will review the existing heritage policy and related legislation for better protection of historic buildings and archaeological sites. Nature Conservation 134. Amidst the rapid pace of city life in the 21st Century, it is important that we preserve our countryside. Taking advantage of the beautiful natural landscape of Lantau Island and Sai Kung District, we intend to develop these two areas into centres of recreational and leisure activities compatible with the principle of nature conservation. In 2001, we will also substantially extend managed country park areas on Lantau Island, enhance management of countryside areas such as the wetlands in Mai Po, and deploy more artificial reefs. Meanwhile, the afforestation programme in country parks is making good progress. Over the past two years, with the support of various sectors in the community, more than a million trees have been planted. As we continue our efforts in this area, we will also draw up a comprehensive conservation policy and work with different sectors in the community on urban greening and urban greenery protection. Together we will strive to make Hong Kong a green model for Asia. A More Beautiful Harbour 135. Victoria Harbour is an integral part of Hong Kong that we all treasure. It deserves all our efforts to protect it and make it more beautiful. For this reason, we have decided to scale back the reclamation planned for the Harbour. 136. Moreover, we will make land available along the waterfront for promenades and walkways so that our citizens and visitors can stay away from the hubbub of the city, stroll along the promenades and enjoy the beautiful scenery and refreshing sea breeze. On the open space on both sides of the Harbour from Lei Yue Mun in the east to Kennedy Town in the west, we will provide open plazas, landscaped areas, marinas, shops and restaurants with distinct cultural flavours. The arts, recreational and entertainment opportunities offered will enrich Hong Kong's quality of life, and fascinate tourists with Hong Kong's unique culture, a blend of Chinese and Western elements. In particular, we are planning to develop a major performance venue in the West Kowloon Reclamation and a sports complex in Southeast Kowloon to serve the community and attract tourists. Both will be designed to world-class standards and will help put Hong Kong on the map as the events capital of Asia. 137. In the plans for developing Southeast Kowloon, West Kowloon Reclamation, Wan Chai, Central and Western District, the waterfront should be reserved for the above amenities. Traffic corridors should be built as underground or semi-submerged roads to alleviate noise and air pollution as well as to improve the visual aspect. The development of the waterfront of the reclamations in Central and Wan Chai, and East and West Kowloon presents us with the opportunity to give Victoria Harbour a face lift. We will hold an open competition and invite local professionals as well as those from all over the world to help us create a new look for our Harbour in the new millennium. G.Summing Up 138. If we are to completely overhaul our living environment, there are still many other issues that merit our attention. For example, we have on our agenda the prevention and control of noise, as well as energy efficiency in building design. The respective Policy Secretaries will brief you on the details of these later. 139. Our environment is deteriorating, pollution is serious, urban areas have become dilapidated, and the residential environment leaves many people dissatisfied. The problem did not arise overnight. No matter how hard the Government tries, it will not be able to accomplish the task of reversing the decline in one go and get all the problems solved tomorrow. But this underscores why we have to translate our words into action immediately. On the threshold of the 21st Century, we have a choice between increasing degradation of our environment, which will endanger our health and hamper the development of our economy, and a future in which respect for our environment will enhance our prosperity and the quality of our own lives and those of generations to come. The choice is quite obvious. Sustainable development need not be a trade-off between wealth and the environment. 140. I have just talked about the two most urgent tasks before us, that is developing talented people and making Hong Kong an ideal home. To build a world-class city, however, much needs to be done in various areas, namely upgrading our infrastructure, enhancing Hong Kong's competitiveness, improving the business environment, rationalising market operation and encouraging the development of a more open market, creating an environment conducive to innovation and scientific research, pressing on with our plans to improve the public administrative structure and efficiency, promoting cultural and sports activities, and boosting the image of Hong Kong in the international community. All these have a direct bearing on the well-being of our citizens and therefore deserve the concerted efforts of the SAR Government and the community at large. [more ...]