******************************************************
Following is a question by the Hon Tanya Chan and a written reply by the Financial Secretary, Mr John C Tsang, in the Legislative Council today (April 22):
Question:
At its fourth meeting held on April 3 this year, the Task Force on Economic Challenges ("TFEC") agreed to study how to further develop the following six economic areas where Hong Kong has enjoyed clear advantages, namely, testing and certification, medical services, innovation and technology, cultural and creative industries, environmental industry, and educational services. In this connection, will the Government inform this Council:
(a) whether TFEC has conducted any relevant research before identifying the above economic areas; if it has, of the research methodology, outcome of the research analyses and the criteria adopted for identifying these economic areas; if it has not, the criteria used by TFEC to identify these areas;
(b) of the following details about the development plans for each economic area according to the current conception of the Government and TFEC:
(i) types of industries to be involved;
(ii) specific development directions and effectiveness indicators;
(iii) the industries and projects to be focused for development, as well as the specific reasons and justifications for selecting them;
(iv) whether it will adjust the relevant existing policies and the size and structure of the government departments concerned to dovetail with the development needs of the economic areas; if it will, of the details of the adjustment;
(v) details of the resource input intended for the policies on developing economic areas;
(vi) details, including the timetable, of the plans to attract and nurture talents; and
(vii) whether it will launch concessionary initiatives to promote the development of the economic areas, if it will, of the details of such initiatives;
if details of one or more of the above items are not available, when the authorities will provide the relevant information; and
(c) whether the Government has set a plan to review the development of those economic areas on a regular basis, to adjust the relevant policies and resource input in response to the prevailing situation, and to consider whether to continue to promote the development of the economic areas concerned; if it has set such a plan, of the details; if not, the reasons for that?
Reply:
President,
The Chief Executive established the Task Force on Economic Challenges (TFEC) in October last year to monitor and assess the impact of the financial tsunami on local and global markets, and provide timely evaluation of its impact on the local economy and our major industries.
The strategy of "stabilising the financial system, supporting enterprises and preserving employment" adhered firmly by the Government coincides with the theme of "Stability, Growth and Jobs" of the G20 Summit held in early April this year. This shows that our policy is in line with the mainstream approach adopted by the rest of the world to combat the financial tsunami.
Another major objective of the TFEC is to propose specific options for the Government and business community to address the challenges, and help us turn crisis into new business opportunities and enhance our competitiveness. This will lay a more solid foundation for the sustained development of our economy in future. The financial tsunami has led us to examine closely what other new economic areas Hong Kong should continue to support and develop in addition to the traditional ones.
Against this background, the Chief Executive announced after the fourth meeting of the TFEC on April 3, 2009 that the TFEC will study how to further develop the six economic areas where Hong Kong enjoys clear advantages, namely testing and certification; medical services; innovation and technology; cultural and creative industries; environmental industry; and educational services.
In examining and discussing which economic areas have greater development potential and comparative advantages, the TFEC has made reference to the findings of various studies conducted by the Government and non-government organisations (including study reports and opinions of the Central Policy Unit (CPU), relevant bureaux, think tanks and research institutes), papers of the Commission on Strategic Development (CSD), academic literature, statistical data, and the views of the public and the industries. These economic areas with comparative advantages have also been discussed thoroughly in the forums and meetings held by the CPU and the CSD.
Besides referring to past research studies, the TFEC has also considered a number of factors including: (1) the economic area concerned should be able to benefit Hong Kong's economy in the medium to long term, be built on the existing economic pillars and related industries, and filling or creating niche markets best served by Hong Kong given our competitive advantages; (2) the economic area should be able to develop sustainably in a free and open market without relying solely on government input on resources and continued support; and (3) the potential of the economic area should be assessed by its viability and readiness for development. Lastly, we have to assess whether the development of the economic areas can capitalise on the opportunities for co-operation with the Mainland and the Pearl River Delta region, including those arising from the Outline of the Plan for the Reform and Development of the Pearl River Delta and the National Twelfth Five-Year Plan (2011-2015).
Taking into account the above factors, the TFEC has identified six economic areas that Hong Kong enjoys clear advantages as the priority areas for focused study. We should contemplate whether the change in the global economic environment and our increased integration with the Mainland will present new opportunities and what the Government can do to make best use of the advantages enjoyed by these industries to facilitate their development, for instance, through policy, legislation and provision of land and other resources, etc.
Before determining whether Hong Kong should focus on the development of these economic areas, the TFEC considers it necessary to further explore the room for their development and related implementation issues. The Chief Executive has asked the CPU to arrange a series of focus group discussions with participation of trade representatives, academia, researchers, TFEC members and government officials. Outcome of the discussions will be reported to the TFEC at its next meeting for further consideration. The Government will carefully study and consider the views of the community and the TFEC before making a decision on the order of priority, and specific policies and measures for the development of these industries.
Ends/Wednesday, April 22, 2009
Issued at HKT 13:06
NNNN
