Consolidation of the economy apart, the focus of Chief Executive Tung Chee-hwa's eighth policy address Wednesday was on the uplift of the poor and promotion of social harmony. The speech, themed "Working Together for Economic Development and Social Harmony", among other things, highlights:

Supporting the vision of "people-based" governance with HK$60 million to be spent over three years on public policy research and a more prominent role for District Councils in solving local problems;

Maintaining social harmony with increased community participation in public affairs;

Assigning Financial Secretary Henry Tang to head a proposed commission to find ways to lift families dependent on government dole out of poverty;

Creating a more favorable business environment for construction, real estate and retail activities;

Promoting the cultural and creative sector and urban renewal as the new anchors for economic growth; and

Helping set up environment-friendly industry and studying legislation on recycling.

Tung said the main reason for the SAR to emerge out of the economic doldrums was the unique advantages of the "One Country, Two Systems" that enabled it to continue to be a highly liberal and diverse society under the rule of law. The central government had backed Hong Kong in difficult times and the increasing pace of modernization and market opportunities on the mainland provided growth impetus.

He conceded, thought, that in the past, officials hadn't been sensitive enough to people's feelings while drafting policies. "Government policies and measures to deal with the bursting of the real estate bubble and the serious fiscal deficit no doubt caused the public pain and unease. In retrospect, our mindset was inadequately prepared for the dual impacts of political change and economic downturn. This was reflected in our failure to establish the vision of 'people-based' governance," he said.

"After much soul searching and a review of the successes and failures of our governance, my colleagues and I have taken stock of the experience gained and lessons learnt. We have taken heed of public criticisms and responded positively to people's aspirations," Tung said.

The government was committed to the vision of "people-based" governance, the chief executive said. "I have asked the principal officials to fully support the district officers to enable them to function more effectively. We will deliver on the 'people-based' service culture, pay attention to public aspirations and respond actively," he pledged.

To keep in touch with the people Tung has identified 11 areas of public concern, ranging from employment, plight of the poor and the needy to sales tax, population policy and the West Kowloon Cultural District. Tung rubbished allegations that the government had been "colluding" with the business community to please it. "If there is evidence as such, you must report to the Independent Commission Against Corruption," he said at a post-address press conference.

Looking ahead, Tung said the SAR's economy would see post-recovery consolidation and growth this year. To promote growth, he said the SAR would continue to build on its four core sectors of finance, production, logistics and tourism. Tung also identified new economic growth areas in the cultural and creative sectors and urban renewal.

On constitutional development, Tung said political reforms would adhere to the Basic Law and the interpretation and decision made by the National People's Congress Standing Committee (NPCSC) in April last year. "We firmly believe as long as we can maintain prosperity, stability and social harmony, our democratic constitutional system can develop at a faster pace and the ultimate aim of universal suffrage as set out in the Basic Law can be achieved at an early date," he said.

The chief executive said he would renew efforts to elevate the people's understanding of the country and their sense of national identity. "We must endeavor to avoid giving our country worries and trouble. We will help those who still have doubts about or feel antagonistic towards the central government to change their minds," he added.

The community and business sector in general welcomed the Policy Address Wednesday. Hong Kong General Chamber of Commerce Chairman Anthony Nightingale said they were "pleased with the directness and comprehensiveness with which the chief executive identified and addressed the many challenges facing us as a community."

Democratic Alliance for Betterment of Hong Kong Chairman Ma Lik said Tung had adopted a more pragmatic and specific approach.

Liberal Party Chairman James Tien called the policy address unadorned and practical, and banker and legislator David Li described it as a "very good" one, giving it 99 out of 100 points.

Address 'prudent and practical'

The central government Wednesday hailed the Policy Address for 2005, delivered by Chief Executive Tung Chee-hwa, as "prudent and practical".

"We believe this is an address that has well taken into account public opinion. It is a prudent and practical address," said a spokesman for the Hong Kong and Macao Affairs Office of the State Council.

The spokesman said in the past year, with the vigorous support of the central government, the HKSAR government, with Tung as the head, had led all communities to bring about economic recovery in Hong Kong and smoothly carry out the election of the third-term Legislative Council.

"We firmly believe that in the new year, the HKSAR government and people of all circles in Hong Kong will be of one heart and mind, be magnanimous to each other and work jointly to maintain the prosperity and stability of Hong Kong and promote the continuous development of Hong Kong's economy and social progress," he said.

(China Daily HK Edition January 13, 2005)