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Following is the speech (English only) by the Financial Secretary, Mr Henry Tang, at the Opening Ceremony of the 41st Conference of Directors General of Civil Aviation, Asia and Pacific Regions this (November 1) morning:

Dr Cherif, distinguished guests, ladies and gentlemen,

I am very glad to join you this morning and to welcome you all to Hong Kong for the 41st Conference of the Directors General of Civil Aviation of the Asia and Pacific Regions. May I begin by offering my warmest compliments to the International Civil Aviation Organisation (ICAO) and our Civil Aviation Department for their sterling efforts in organizing this important event.

Air transport facilitates trade and investment, promotes tourism, and brings people together. Apart from serving a vital support function, the aviation industry is, in its own rights, an important component of the global economy. Hong Kong is located at the heart of Asia and sits at the gateway of the Mainland of China. Within a five-hour flight, we can reach half of the world's population. Blessed with this unique geographical advantage, our Government and our aviation community have worked in a close partnership for the past decades to make Hong Kong a major aviation hub.

We, in the Government, are committed to strengthening Hong Kong's aviation hub status. We work unceasingly to expand and up-grade our airport facilities to meet the increasing traffic demand of passengers and shippers. We proactively negotiate liberal air services agreements with our bilateral partners that enable our aviation network to continue to expand. We also maintain a robust regulatory regime in line with international standards to support an efficient, safe and secure air transport system.

Indeed, our regulatory efforts have been guided by the ICAO. Through local legislation and enforcement action, ICAO standards and practices are implemented in Hong Kong in an effective and timely manner. Hong Kong participates actively in ICAO activities as a member of the People's Republic of China delegation. In recent years, we have also stepped up our co-operation with other aviation authorities, particularly in areas such as rationalizing airspace, streamlining air routes, and mutual recognition of certification. We devote these worthwhile efforts with an overall objective in mind: that is, to maintain the highest safety standards for air services whilst creating a facilitating environment for commercial operators.

Looking to the future, we should expect to see the continuation of a rapidly changing aviation scene, which will bring with it ever more challenging tasks for regulators. There are at least three areas of challenges. First, the global trend towards greater liberalization is allowing more new airlines to enter the market. New airports are being built, and existing ones expanded. These developments substantially increase the workload and complexity of the regulatory authorities. Secondly, traditional network carriers and low-cost carriers alike are introducing cost-saving measures to improve their competitiveness and indeed to improve their profits. Regulators need to ensure that safety is in no way compromised. And thirdly, increasing air traffic also calls for new navigation technologies, timely training of human resources, more cost-effective air routes, and better co-ordination amongst regulators.

These tasks are challenging for the industry, as well as, for the regulators. As such, the importance of closer co-operation within the aviation sector cannot be over-stressed. This Conference provides a valuable platform for regulators to share experience and to strengthen the partnership required to support the long-term development of air services.

On this note, I wish you all a successful and rewarding Conference and a most pleasant stay in Hong Kong.

Thank you.

Ends/Monday, November 1, 2004

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