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Following is the speech by the Chief Secretary for Administration, Mrs Anson Chan, on the "Motion of Thanks" at the Legislative Council today (Wednesday):

Madame President, Honourable Members,

I am grateful, as ever, for the opportunity to wind up this annual debate on behalf of the Administration, and to urge Honourable Members to offer us their support. I know that this may not be the intention of some members in this Chamber. But I also believe that an objective analysis of the debate so far would indicate that, on the whole, no great exception has been taken to, and there has been a good deal of support for the Chief Executive's third Policy Address delivered here on 6 October. I believe this is reflected in the community as a whole.

This debate, as usual, has been a wide-ranging one. We have heard a variety of views, suggestions, ideas, comments and criticisms. That is hardly surprising for a fully elected legislature which represents a cross-section of the community and its many special interests.

The debate has also been driven to some extent by issues outside of the Policy Address, matters on which I intend to touch over the next 15 minutes.

All of this is well and good in a healthy, plural society. But one of the consequences is that the central message of the Chief Executive's Policy Address has tended to be obscured in a clutter of not always relevant side issues.

And what is that central message? It is that Hong Kong has a bright and inviting future as the premier international city of Asia, the world city of our region. Now that is a big vision, but given that we already possess many of the attributes required to achieve that goal, it is eminently attainable.

I refer, in particular, to the software that is required of a truly international city : the rule of law; a deeply-rooted and trusted legal system; a robustly-independent judiciary; a clean, cosmopolitan Administration; the free and unfettered flow of information. Above all, a dynamic and resilient population used to dealing in the international market place, and speaking its language. What better way to illustrate the notion - and the reality - of One Country, Two Systems.

But we need more than that if we are to match words with deeds. The initiatives the Chief Executive announced to clean up our environment, to focus our education system on the human resources needs of a knowledge-based society are the real building blocks we must put in place to secure the future underpinnings of the economy and the future prospects of our Millennium generation.

Madame President, I would like at this point to address a criticism around which some Honourable Members and commentators have sought to decry this turn-of-the-century Policy Address. In a nutshell, it seems to be this : that the Chief Executive has dwelt too much on "far-sighted" policies at the expense of present day problems; that he has not introduced any new measures to stimulate the economy and reduce unemployment.

This criticism seems to me to be both untrue and extremely short-sighted. It also completely ignores the economic realities of the Asian financial crisis and its impact on Hong Kong over the last two and a quarter years. The fact is that the government has done a great deal within our means and proven economic philosophy to relieve the pain imposed by an externally-induced recession. The various measures contained in the last two Budgets and in two other special packages are now taking effect. They have been a significant factor in the economy turning the corner.

These short-term measures, allied to strategic initiatives in innovation and technology, telecommunications liberalisation, major reforms in the banking and financial services sector, tourism, education, the environment, culture and sport are designed to ensure that the SAR catches the wave of the future. They represent an investment which should reap rich dividends not just for us, but for our children and grandchildren.

In saying this, I do not wish to downplay or underestimate the real hardships and burdens imposed by the recession on many members of the community. Their pain is real. The way in which they have coped with the downturn is a tribute to their pragmatism and patience. It has enabled Hong Kong to keep its composure and equilibrium during the worst economic downturn in our recorded history.

The measures we have taken to ameliorate the worst effects of unemployment, to boost job creation and provide retraining opportunities are only one measure of our concern. We will continue to do all we can to soften the blow. I would, however, make a general point. One of the lessons we have learned from the Asian financial crisis is this : a community that concerns itself only with the short-term will not have much of a long-term future.

Madame President, I would like to emphasise that we have listened to the speeches of Honourable Members with close attention. There was much for us to digest. I hope that in the preceding speeches my colleagues in the Administration have gone some way towards addressing the many issues raised during these proceedings. No doubt we will continue to discuss many of them in this forum. There are two or three issues I would like to address in particular.

One is the relationship between the Executive and the Legislature, a matter I know which troubles many Honourable Members. Let me repeat : we in the Administration are keenly aware of the importance of a constructive partnership with the legislature. This is not simply a matter of constitutional obligation. It is a matter of political common sense.

Honourable Members may recall that I dwelt on this subject at some length in this debate last year. I hope that they will be aware of the efforts we have since put into further improving the relationship. In particular the recent appointment in the Secretary for Justice's Office of a former Legislative Council Legal Adviser to offer impartial, objective advice on legislative affairs shows the Government's genuine desire to work in depth with Legislative Council on these important matters. This does not mean that we always see eye to eye on all issues. But differences of view, some strongly held, should not mask the fact that in many areas, we have worked hard together and achieved much in the public interest. These efforts will continue. But any relationship, as the word implies, involves more than one party. In our case, it is a two-way street. I look forward to us continuing to work together in the best interests of Hong Kong.

A number of Honourable Members have raised concern about rule of law issues. I have made it plain in the past that there can be no higher priority than the preservation of the rule of law. Our legal system is the cornerstone of Hong Kong's past success and future prosperity. It provides comfort and security for our citizens and reassurance for our foreign investors. A key aspect of the rule of law is that no one, including the Government, is above the law. Can there be any doubt that this is the case in Hong Kong? On an almost daily basis in the courts, Government is constantly and willingly explaining and justifying its actions. Judicial review of Government's administrative actions has a long and important history in the common law world and it continues to be a major feature of our legal system, itself administered by a fearless and strongly independent judiciary.

I acknowledge that some rule of law issues we have faced since the Handover have caused genuine concern here and overseas. But I think it is important to see these matters in context.

For the first time, the Hong Kong Special Administrative Region has a mini constitution in the form of the Basic Law. The implementation of the Basic Law has brought about a major development in our legal system - the creation of constitutional litigation. The interfacing of it with our legal system will also take some time. This, however, is a healthy development : a common law system such as ours is capable of dealing with constitutional change without losing its commitment to the fundamentals we all hold dear.

Before leaving this subject, I would like to focus for a moment on the question of legal aid.

Some Members have expressed concern that our decision not to transfer the administration of legal aid from the government to a separate and independent entity means that access to justice will be jeopardised. This will definitely not be the case.

We decided against an independent legal aid authority because we consider it to be an unnecessary move. Our objective, first and foremost, is to ensure that our target clients receive the assistance they need. As there is no evidence to prove that the Legal Aid Department is not meeting this objective, we do not see any over-riding need to dis-establish the Department which in itself is bound to be deeply unsettling to the staff concerned.

Any entity separate from the government might help create a semblance of independence in administering legal aid. But the consultants commissioned by the Legal Aid Services Council have pointed out that there is neither wide nor deep concern about the independent operation of the Legal Aid Department among its stakeholders. Our view is that the existing arrangement, with an open-ended budget administered by a government department accountable to the legislature, is the best way of achieving our policy objective with regard to legal aid.

We have decided that further improvements and a better use of resources currently devoted to legal aid services should be the priority. We are in the process of implementing various improvements arising from our recently concluded legal aid policy review.

Madame President, as head of the civil service, I should also like to touch on the matter of civil service reform. Some Honourable Members called upon us to proceed with care, to involve the staff side in close consultation, and to have due regard to the stability of the civil service. On the other hand, others have called upon us to get on with our reform pledges so as to achieve greater efficiency. This breadth of views replicates what the community has said to us during the consultation period. And as difficult as it may sound, we are trying to achieve both.

We are wholly committed to a policy to pursue change on the basis of stability; to implement measures gradually; and to consult widely and with an open mind. We shall continue to involve the staff side in future consultations, and confine fundamental changes to recruits, with our contractual commitments on terms and conditions of service for incumbents left intact. This is precisely what we are doing now in this second stage of in-depth consultation. Four joint working groups have been set up for this purpose.

Let me stress this : reform to the civil service management system is essential to enhance the flexibility and efficiency of our civil service. The civil service cannot afford to stand still if we are to meet the rising expectations of our community and the challenges arising from a rapidly-evolving social and economic environment. Honourable Members may rest assured that we shall pursue vigorously our reform targets, yet at a pace which will be acceptable to and sustainable within the civil service.

We expect to introduce changes gradually over the next 12 months. Our intention is first to implement proposals which have received broad support. We will also move ahead expeditiously with proposals which are subject to more urgent timeframes, mainly the new entry terms for recruits.

This brings me to a civil service-related subject which occupied a considerable proportion of this debate - the appointment of our Director of Broadcasting to head the Hong Kong Economic and Trade Office in Tokyo. Firstly, so there can be no room for doubt, I emphasise that at every level of the Administration, we know that freedom of speech, freedom of the press and freedom of information is at the core of Hong Kong's way of life.

Secondly, I would want to acknowledge the part that Miss Cheung Man-yee - among others in this government - has played in the protection of those freedoms. The Director of Broadcasting, while a civil servant, has a unique role also as a public broadcaster and is, therefore, an important part of the media establishment. We all know that she has contributed to the full in this.

But I also think we need to acknowledge, as indeed Miss Cheung herself has done, that as a civil servant, she is part of a team, albeit the head of that team. Over the years, RTHK has developed a solid corps of professional editors, journalists and producers. They work within the framework of RTHK's editorial independence spelled out in its charter. This charter is a reflection of a key principle of the government's own policy towards RTHK, i.e. that it should have editorial independence. This has been reaffirmed in unmistakable terms both by the Chief Executive and myself.

More recently, a set of editorial guidelines based on those used in the BBC have been introduced. I think we would all agree that the BBC is an excellent role model.

It therefore disappoints and pains me to see the unnecessary alarm that has been raised over Miss Cheung's posting to Japan. Let me repeat : this is a perfectly proper posting in our long-established policy of recognising ability and allowing all officers to realize their potential to the full. The Administration must have the freedom to post its officers to suit the exigencies of the service, free from political interference.

I understand of course the sensitivity in the community to any moves that might appear to undermine freedoms and liberties. I am very sensitive to these myself. But in this case, I feel absolutely confident in being able to reassure the community that the editorial independence of RTHK will not be affected by this move nor, by extension, press freedom as a whole.

The very fact that this posting has resulted in such a lively public debate is itself evidence that press freedom and freedom of speech is alive and well in Hong Kong. Long may it continue.

I think all fair minded members of the community will want to give the RTHK team and its new leadership every chance to prove itself as the worthy guardians of its own traditions. The proof of the pudding will be in the eating. I am pleased to announce that a promotion board has already been held to identify a successor to Miss Cheung and we expect to be able to make an announcement next week once the necessary procedures are completed.

Madame President, I hope that this afternoon my colleagues and I have been able to demonstrate that this year's Policy Address is one of great vision and considerable substance. It has built on the strategies outlined in the Chief Executive's first two addresses. He has charted the way forward for Hong Kong into the next century and is steadily putting the building blocks in place. We have not ignored or neglected the immediate interests and concerns of the community, and will continue to pursue policies which will enable our entrepreneurial and innovative business men and women to re-ignite the economy in a way that will provide secure and sustainable employment and opportunities for our hard working people. That is the essence of the 1999 Policy Address and I urge Honourable Members to support it.

End/Wednesday, October 27, 1999

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