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SCMP Reporter

Secretary for Security Peter Lai Hing-ling has become the first principal official to quit the post-handover government.

 Mr Lai, 47, who cited personal reasons for his resignation which takes effect on Saturday, is to be replaced by Director of Immigration Regina Ip Lau Suk-yee.

 The appointment, which Mrs Ip will take up when she returns from vacation on August 31, was made by the central Government.

 Although Mr Lai became first local Secretary for Security, it was his earlier role as deputy secretary for constitutional affairs, playing a key role in the failed 17 rounds of talks with Beijing over the Patten political reforms, that led to speculation he would not join the through-train.

 Mr Lai said of his role yesterday: 'Political reform is already history.

 'Personally, I absolutely didn't feel that my SAR colleagues or my friends with the central Government mind about this or any other of my work.'  Mr Lai said the timing of his resignation was 'something which is impossible to explain'. He had given three months' notice.

 He revealed he was asked by Tung Chee-hwa to stay. He believed his departure would not affect confidence of other officials in the SAR.

 Mr Lai said: 'Let me make it absolutely clear that the decision to resign from the civil service is entirely my own. It has nothing to do with my work.

 'I wish to spend more time with my family who, as some of you may know, reside in Australia.'  He added: 'I believe, as a civil servant, when we go, we go quietly. I am not saying other people who do so is wrong. It's simply my own personal belief.'  Mr Lai will not receive a pension until he is 55 when he will be entitled to a one-off payment of $6.7 million plus a monthly pension of more than $40,000. He earns $181,050 basic salary, excluding a housing allowance.

 His wife, Alice Lai Siu Po-chun, was also an ex-civil servant. She quit the Government before the handover and has stayed in Australia, where their son is studying.

 Mr Tung said he regretted Mr Lai's departure but respected his personal decision.

 He praised Mr Lai for his significant contributions to the SAR.

 Chief Secretary for Administration Anson Chan Fang On-sang said Mr Tung and she were sad to see him go. 'He will be dearly missed,' she said.

 Financial Secretary Donald Tsang Yam-kuen said: 'As a colleague, I support and respect his decision. Our civil service system is sound. There are ways to replace anyone who leaves his post either in the short or long term.

 'I'm convinced it won't affect morale.'  Mrs Ip, 47, felt sad about Mr Lai's departure but was honoured to succeed him.

 She said she learned about her new post only on Sunday. She came in from holiday at home to address a press conference.

 Mrs Ip said she was not surprised at returning to the Security Bureau. She denied she had been offered the job of head of the SAR office in Beijing.

 Raymond Wong Hung-chiu, Deputy Secretary for Security, will act up before Mrs Ip takes up the post. Deputy Director Lee Siu-kwong will act as immigration chief.



Security chief Peter Lai puts family first in resignation