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Following is the statement by the Chief Executive, Mr Tung Chee Hwa, today (Friday) on the Report of the Commission of Inquiry on the New Airport :

"On 20 January 1999, Justice Woo submitted to me the Report of the Commission of Inquiry on the New Airport. We are making the Report public today. I wish to take this opportunity to make a statement.

"First of all, I wish to thank Justice Woo and Dr. Edgar Cheng for accepting the challenge and completing the Inquiry within a tight timeframe. The Report is of a very high standard reflecting dedication and hard work of all those involved. In appointing the Commission, I had wanted to establish the problems associated with the airport opening, their causes and the responsibility of the concerned parties. I also wanted to provide the community with a clear understanding. These purposes have been achieved. In taking things forward, we should recognise that Hong Kong is now served by a world class airport.

"The Report sets out in detail the Commission's findings and views. I accept these findings. I also appreciate the Commission's valuable views on the lessons to be learned. The Commission's Report will help us prevent a recurrence of such problems in conducting major projects in future.

"I wish to highlight two observations. Firstly, we have learned from the process the importance of clear delineation of functions so that each party knows precisely its responsibility. This is particularly important to the coordination between Government departments and public bodies charged with specific functions. Also, within an organisation, interaction of the personalities of senior executives should be carefully considered. In addition, effective communication between the parties involved and close review of progress are very important.

"Secondly, I also agree with the Commission's view that there should always be a global risk assessment and comprehensive contingency planning. Throughout the construction of the airport, all the parties involved worked very hard and we all had high expectations. In such circumstances and backed by Hong Kong's ability to deliver against the odds over the years, all the parties concerned may have underestimated the difficulties and possible risks. The Report also points out that the effects of small problems snowballed to an extent that nobody could have reasonably anticipated. For future projects, we must ensure that there are adequate risk assessments and contingency plans.

"The Commission's Report concludes that the decision by the Airport Development Steering Committee (ADSCOM) on the airport opening date was proper and wise. On the other hand, it points out two errors committed by NAPCO and ADSCOM's ultimate responsibility over NAPCO. We accept these points. In hindsight, more could have been done to monitor the closing stages of the project. But we should also recognise that the officials concerned have acted in good faith and have done what they could based on the information available at that time. I believe that they should not assume personal blame. ADSCOM has worked very hard over the years to steer through the development of the Airport Core Programme. The delivery of ten major infrastructural projects within a compressed timeframe of nine years is a major achievement. This deserves recognition.

"I note the Report's conclusion about the ultimate responsibility of the AA Board because of the duty imposed on it under the Ordinance. I believe the Board and its senior management have the courage to learn from the experience of the airport opening. They have done well in putting passenger services back on track just a few days after opening. The community looks to them to work with the same dedication to bring the new airport to its full maturity.

"I have no doubt that the AA and their management will study the findings of the Report carefully. I believe AA will do everything in its power to ensure that their statutory duties are fulfilled and that similar problems will not recur in the commissioning of future projects. I have no doubt that the Board will continue to work hard to steer the future development of the new airport.

"The breakdown of the cargo handling system at Hong Kong Air Cargo Terminals Ltd (HACTL) was a major problem in the initial operation of the airport. The Report has dealt with this problem and its causes in full. It is important to Hong Kong's economy that HACTL should continue to deliver services efficiently. I believe AA will monitor HACTL's performance and work closely with it to achieve this.

"Notwithstanding the initial problems with the airport, all the parties involved moved swiftly to rectify the problems. Whilst air cargo handling took longer to rectify, passenger services were brought to a high standard in a remarkably short time.

"As pointed out in the Commission's Report, Hong Kong can now be proud of its new airport. This is also borne out by the results of several opinion surveys, which showed that the vast majority of users are satisfied with the airport's services and facilities. This result certainly accords with my observations when I visited the airport earlier this month.

"The airport has also received top ratings internationally. These include rating by a top travel magazine in the US as one of the world's premier airports. Its overall security was rated by the US Federal Aviation Administration as "excellent". Such independent third party endorsements augur extremely well for Hong Kong's ability to overcome problems and provide world class service.

"In closing, I wish to emphasise that we should be positive and forward looking. We were all disappointed by the problems in the initial operation of the airport. These problems are now behind us. All the parties involved should now continue to work together to further improve the services and facilities so that the airport will play a bigger role in Hong Kong's economic development."

End/Friday, January 22, 1999

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