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2005-06 Policy Address by Chief Executive (5)
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Protecting Labour Rights

52. Despite the economic recovery, some employees have yet to see any improvement in their livelihood. The Legislative Councillors representing the labour sector have persistently reflected the frustration of the lowest paid workers. They have put forward a number of constructive suggestions, which we highly value. We deeply appreciate the difficulties faced by the working man and woman. Protecting labour rights and promoting good labour relations are essential in building a harmonious society.

53. The Labour Advisory Board is now conducting an in-depth study on the question of a minimum wage and standard working hours. As different sectors in the community have diverse views on the subject, we should give the Board sufficient time to consider it. Concurrently, the SAR Government has taken the initiative to require its service contractors to ensure that the wages of their non-skilled workers are not lower than the average market level. We have promoted this arrangement to all public organisations, and they have responded positively. About 25 000 workers at lower levels will benefit from these arrangements. We will further promote this practice to subvented organisations and subvented schools. I appeal to the business community, in the spirit of corporate social responsibility, to follow the level of average monthly market wages announced by the Government in paying their non-skilled workers. We firmly believe that these pragmatic measures will protect more workers at lower levels.

54. On another front, the Government is determined to crack down on the employment of illegal workers. We will target employers who hire them. The number of joint operations against illegal employment by law enforcement agencies in the first eight months this year was 30% higher year-on-year. A total of 145 employers were convicted for hiring illegal workers and sentenced to immediate imprisonment. We are also determined to combat wage default offences. Employers who wilfully use improper means to evade their obligations will receive severe punishment. The number of successful prosecutions for wage default offences in the first eight months this year increased by 13% over the same period in 2004, and some company directors were sentenced to jail. The Labour Department will strengthen enforcement action against wage defaulters, and will propose increasing the maximum penalty for wage default offences.

55. Job creation is always an important consideration in policy formulation. In the next two years, the Government will embark on a number of community facility projects, continue to expedite urban renewal and promote active building maintenance. These will improve our living environment and create more job opportunities for the construction industry.

56. Between now and the end of 2006, the Government will invest about $190 million to carry out over 120 Rural Public Works and Urban Minor Works projects. This will create 480 jobs for the construction industry. Accelerating the building programme of the municipal works projects will create another 2 200 jobs. Advancing maintenance works to 30 community halls and centres will add around 200 jobs for the construction industry. The Hong Kong Housing Society and the Urban Renewal Authority are also expected to provide some 3 000 jobs each year by helping property owners to undertake proper building maintenance. We are considering the expansion of this effort with the Hong Kong Housing Society and the Urban Renewal Authority. Under the Tourist District Enhancement Programme, we will study the need for new tourism works projects in Aberdeen to support the redevelopment plan for Ocean Park. We will also enhance the waterfront facilities at Lei Yue Mun, and develop a piazza at Tsim Sha Tsui.

57. Projects associated with preparations for the 2008 Olympic Equestrian Events in Hong Kong will create about 450 construction industry jobs. As the Hong Kong Sports Institute has to temporarily vacate its present site to make way for the equestrian events, the Government will provide training grounds for local athletes over the transitional period, and will build new facilities.

58. In order to encourage property owners to undertake small scale construction projects including building maintenance, we will introduce legislation in the 2005-06 legislative year to put in place a minor works supervision system to streamline related procedures and assure the safety of these projects.

Environment and Health

59. Madam President, the important task of environmental protection is integral to my three main themes of pursuing excellence in governance, fostering a harmonious community, and helping the economy power ahead at full steam. Social harmony includes harmony between humankind and nature. Eliminating environmental pollution has a significant bearing not only on public health and the quality of life, but also on the long-term development of Hong Kong. As Asia's world city, Hong Kong cannot tolerate foul air and a poor environment. Creating a better environment poses a big challenge for the Government. We are determined to deal with environmental pollution. We have the strategy, measures and action plans. In future all new major government policies will be subject to environmental protection scrutiny. It is the whole community's responsibility to protect the environment. The fundamental principle is "polluter pays". We will step up our efforts to raise public awareness of environmental protection, to make Hong Kong a green city and an ideal home loved and cared for by all.

Air

60. In recent years, the extent of air pollution in Hong Kong has aroused grave concern in the community. We must take vigorous measures to make sustained improvement to air quality. We must first tackle the problem at home. Since 1999, we have introduced measures progressively to control vehicle emissions, and they have started to produce results. Our next step is to introduce in stages Euro IV emission standards for newly registered vehicles from January 2006. The Government will take the lead to reduce power consumption. From January 2006, power consumption in all Government office buildings will be reduced by 1.5% annually, and the Government will take the lead in using ultra-low sulphur diesel in all government projects. The Government will consider using hybrid vehicles that have lower emissions on a wider scale, once more models become available on the market and are judged to be cost-effective. We will encourage the community to do the same. We will issue guidelines to all government drivers, requiring them to switch off engines while waiting. We will appeal to private car drivers to exercise the same self-discipline.

61. To fully achieve the emissions reduction targets in 2010, we have asked the power companies to accelerate the timing of emissions reduction projects, increase the use of ultra-low sulphur coal and use natural gas for power generation as much as possible. In addition, the Environmental Protection Department will progressively tighten the emissions caps during the renewal of the power companies' specified process licences, to ensure that the 2010 emissions reduction targets are achieved.

62. The Scheme of Control Agreements between the Government and the two power companies will expire in 2008. The Government is considering the views received in the first stage of public consultation to draw up an outline for the future development of the electricity market. In formulating new schemes of control, we will require the power companies to install effective emissions reduction facilities to achieve emissions reduction targets, as a precondition for licensing. In addition, we will ask for the use of renewable energy to generate electricity and the implementation of demand side management. We will explore options to avoid the costs of installing emissions reduction facilities being passed onto consumers as far as possible. We will proceed with the second stage of public consultation on the outline of future development of the electricity market by the end of the year.

63. In terms of air quality in the region, Hong Kong and Guangdong reached a consensus in 2002 on improving air quality in the PRD against targets set for 2010 and have pressed ahead with the Regional Air Quality Management Plan. We have now established a PRD Regional Air Quality Monitoring Network. With a total of 16 monitoring stations, the network can provide comprehensive and accurate information on air quality in the PRD region. The two governments have agreed to make arrangements for reporting daily to the public the PRD Regional Air Quality Index from the fourth quarter this year. Concerted efforts within the community can provide substantial impetus to clean air initiatives. For instance, I know that our business community has taken the initiative to sign a Clean Air Charter. Details of the Pilot Emissions Trading Scheme among power plants in the PRD, jointly undertaken by Hong Kong and Guangdong, are expected to be finalised in 2006. The scheme will allow power plants to look for trading partners and enter into emissions trading contracts. The two sides are working towards the agreed emissions reduction targets in 2010, to significantly improve the air quality in the PRD.

Food Safety

64. As the Chinese saying goes, "food is people's paramount concern". There is now widespread public concern about food safety. The Mainland supplies Hong Kong with poultry, livestock, marine products and other non-staple food on a daily basis. We have taken the opportunity presented by recent food safety incidents to enhance our notification system with the Central Authorities and the Guangdong provincial authorities. We have agreed the systems and procedures for monitoring the safety of food imported from the Mainland. Recently we have reached a consensus on control at source. Relevant SAR Government departments will send officials to visit the facilities of Mainland suppliers to inspect the safety measures taken during the growing or rearing process. The Government will step up efforts in the sampling and testing of food being sold on the market.

65. To pool our resources for better food safety control, we have decided to reorganise the government departments and establish a new Food Safety, Inspection and Quarantine Department. The new Department will consolidate functions now performed by the Agriculture, Fisheries and Conservation Department and the Food and Environmental Hygiene Department in this regard, including the monitoring and controlling of imported and local live food and non-food animals, poultry and birds, and the safety of vegetables, meat, seafood and food products. The supervision of food safety involves many statutory functions and is a government responsibility. In carrying out this work, the new Department will liaise closely with relevant experts and academics as well as consumers. It will listen to their views on food safety standards to ensure that our people can eat with peace of mind. We will brief the Legislative Council on the specific arrangements later.

(To be continued)

Ends/Wednesday, October 12, 2005
Issued at HKT 11:55

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