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Following is the speech by the Financial Secretary, Mr John C Tsang, at the Business Awards of HK Australia Business Association
South Australia Chapter in Adelaide, Australia today (August 1):
Distinguished Guests, Ladies and Gentlemen,
Good evening.
I am delighted to be here in Adelaide, the capital of South Australia, and the heart of Australia¡¦s wine country.
We are here to celebrate the Business Awards of the Hong Kong-Australia Business Association in South Australia, as well as the Beijing Olympics, which is just one week away.
How time flies. It doesn¡¦t seem that long ago when Cathy Freeman lit the Olympic flame in Sydney.
Allow me to introduce a third element tonight and make this a triple celebration. Earlier this year, Hong Kong eliminated duties on wine. Completely. Yes, zero, and I think you will agree that that is worth celebrating.
Given the entrepreneurial theme and the venue for tonight¡¦s Gala Dinner, it is appropriate that my first topic is the business of wine.
In my Budget in February this year, I lifted duties from wine and beer. As you can imagine, the decision has gone down fairly well in most sectors of Hong Kong, not least in our vibrant Australian community. And I do encourage South Australian wine companies to take full advantage of this decision.
Reducing wine duties to zero was not about popularity ratings. It was the first major step in establishing Hong Kong as a wine hub in Asia, and more specifically as a trading and distribution centre for fine wine in the region.
Increased spending power, changing tastes of consumers and economic progress are some of the reasons for Asia emerging as a growth market for wine, and, in particular, for fine wine in recent years.
Hong Kong ¡V with a prime geographical location, modern society and deep connections to the Mainland ¡V has a pivotal role to play.
Allow me to give you an idea of the potential for the wine business in our neck of the woods. The industry predicts that the total consumption value of wine in Asia ¡V excluding Japan ¡V will double to US$17 billion (~A$ 17.8 billion) by 2012, and increase further to US$27 billion (~A$ 28 billion) by 2017.
So what are the main opportunities for South Australian wine companies?
Hong Kong is already a vibrant entrepot for trade with the Mainland. We have world-class infrastructure including port, air cargo and customs clearance facilities in place for international trade and for cross-boundary trade.
Just a fortnight ago (July 14), Hong Kong International Airport was declared the world¡¦s best airport for the seventh time in eight years in the annual Skytrax survey, which polled more than 8.2 million travellers from more than 97 nationalities.
We provide a fast, efficient and reliable stepping stone for companies expanding their business in China and throughout Asia.
Since the Budget, auction houses have renewed their interest in Hong Kong for wine sales. The renowned auction houses Bonhams as well as Acker Merrall & Condit have held successful auctions in the city in recent months, and more sales are planned this year.
Acker Merrall & Condit¡¦s auction in May fetched HK$64 million or nearly A$8.5 million, which was an Asian record, and some lots drew world-record prices. That would have been even higher if the Aussie dollar had not been so strong.
A 12-bottle case of Domaine de la Romanee-Conti 1990 went to a Singaporean buyer for US$242,000 (~A$ 253,000), and set a new world auction record for that particular wine. Three magnums of Dom Perignon champagne, vintages 1966, 1973 and 1976, also set a record. They went under the hammer for US$93,000 (~A$ 97,000), the highest price ever paid for a champagne lot.
If anyone fancies setting a record for, say, Penfold¡¦s Grange or Henschke¡¦s (pronounced : Hen-shkee) Hill of Grace, the next auction will be in November.
Since the abolition of wine duties in February, wine imports to our city have jumped more than 120 per cent, year-on-year, rising more than 200 per cent in value. So we are improving on the quality of our wine intake ¡V and no doubt, raising our intake of wine as well.
Storage facilities are increasing also to meet demand, and we are taking steps to ensure that these facilities are up to international standards.
With the help of experts from overseas, we are developing a certification system to speed up the migration to international fine wine storage benchmarks.
Other wine-related activities appear set to take off, including wine appreciation. Wine schools talk of a strong demand for places on their courses. We are also discussing ways to expand wine training with local training institutions. This would cover programmes for sommeliers and frontline staff as well as those involved in logistics and storage.
We are identifying heritage sites that may be suitable for wine-related activities, such as a wine school, museum and venues for wine appreciation events.
In a couple of weeks, our Trade Development Council will hold its inaugural Hong Kong International Wine Fair. This follows the success of the biennial French Vinexpo Asia-Pacific, which was held in Hong Kong in May.
Although these are relatively early days, I am confident that Hong Kong can emerge as Asia¡¦s wine hub. We will be counting on support from our regional partners, including our friends here in South Australia, to make the most of these opportunities.
Now, I will switch from one gold standard to another that also allows people to make the most of their opportunities. Of course, I¡¦m referring to the Olympics.
I mentioned at the start of my talk that the Beijing Games are just a week away and will open on the eighth. In fact, I shall be going to Beijing for the Opening Ceremony following my attendance at the meeting of APEC Ministers in Melbourne early next week.
The Beijing Olympics will be an opportunity for Australia to further cement its reputation as a powerhouse of sports. Swimming rivalry between Australia, China and the USA will undoubtedly be one of the highlights of the Olympics.
Bringing the Games to China for the first time is a proud achievement for Chinese people all over the world, including those residing here in Australia.
In Hong Kong, we will be hosting the Equestrian Events of the Beijing Games. This is a great honour for us. It is also a clear sign of Hong Kong¡¦s closer integration within our nation.
We have spent more than HK$1.2 billion, or roughly AU$160 million, on new facilities for the Olympic Equestrian Events.
These include the first ¡§six star¡¨ air-conditioned stables, the first air-conditioned training area, the first mobile cooling units for horses, and the first on-site testing lab for equine samples.
This highlights the importance we place on the care of the horses and our efforts to ensure a high quality competition.
In keeping with the ¡§Green Olympics¡¨ theme, stable waste is 100 per cent recyclable.
Long-term benefits to the city will include world-class sports facilities and a deeper level of expertise and experience, which will serve us well as we gear up to host the 2009 East Asian Games and other large-scale events in the future.
We will also have a permanent horse museum, and a new bridle path to develop the city¡¦s heightened interest in equestrian sports.
We are looking forward to seeing the Australian riders in action, and they will definitely be able to count on some enthusiastic support from our expatriate Australian community in Hong Kong.
As you know, Hong Kong has built a lasting and productive equestrian relationship with Australia over the past century and a half of horse racing. Many of the experts who helped create our Olympic equestrian venues come from this country, and they have done a great job.
I hope some of you will be able to join us to appreciate that performance, to experience the thrill of the Games, and to help us celebrate the Olympic spirit.
Finally, it is my great pleasure to applaud some fresh medal winners among us right now ¡V the recipients of tonight¡¦s Awards.
Congratulations to you all, and I wish you every success in the future. And on that note, have a great evening.
Thank you.
Ends/Friday, August 1, 2008
Issued at HKT 19:20
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