Yet the affair raises two other key issues. First, there is the proposition that a certain portion, say one per cent, of the windfall be set aside for a charity trust. The money could be used to subsidise charities and voluntary agencies.

The remaining profits could be used to establish a second fund to finance the retirement and welfare entitlements of civil servants. The latter proposal, in particular, will have a stabilising effect on the civil service and thus on the SAR. Civil service retirement entitlements are already a heavy burden on the Treasury. The amount involved is astronomical.

The former British Hong Kong administration failed to set aside any reserves for this purpose and the Government had to resort to tax hikes to meet such needs. Fortunately, the creation of TraHK (Tracker Fund of Hong Kong), the vehicle for releasing to the public stocks held by the Government, will result in substantial income, enabling the authority to address this problem.

I have criticised some legislators over arrangements for listing the Mass Transit Railway Corporation (MTRC). Councillors' ignorance on the subject has been manifest. It has also highlighted a lack of general understanding of the merits of 'minimal government' and those of privatisation of public utilities. As a result, any privatisation or listing plan is hastily dismissed as a government attempt to shed its responsibility and to enrich contractors or private investors. The lawmakers often ignore the fact that this so-called conspiracy between government and business is a global trend.

It is inevitable the SAR administration will consider hiving off more government departments and public utilities to boost efficiency, reduce costs and raise revenue. This will be a win-win solution for all parties so long as there is adequate public monitoring to ensure quality of service.

The affected civil servants and the Legislative Council are the two key obstacles for such privatisation schemes. In his latest Policy Address, Chief Executive Tung Chee-hwa devotes seven paragraphs to the thorny topic of 'Introducing Reforms while maintaining Stability'. 'At present,' he stresses, 'we will concentrate on the scheme for private sector involvement in the estate management work of the Housing Department.' He left an impression that he was poised to put on hold similar reform programmes in the Housing Department. 'These reforms,' he concedes in a roundabout way, 'are being implemented gradually after full consultation and careful deliberation.' Mr Tung is obviously back-pedalling from his earlier ambitious reform commitments, even though he is reluctant to admit it in so many words. Only a few months ago, the authorities were eager to create a media environment favourable for privatising the Water Supplies Department, Post Office and several other branches. Nevertheless, opposition from the civil service and legislature has been formidable. Officials need to at least untie one of these two knots of resistance to keep the reform schemes afloat.

Now that Mr Tung has made a U-turn, some legislators have lashed out at him for not persisting. For one reason or another, the inadequacies of the civil service have prevailed.

While there is much to be desired in the personal integrity of individual employees, this civil service opposition has shaken public confidence in the Government. Mr Tung pledged to push ahead with his reform initiatives early this year, but now, only months later, he has declared such programmes will be decelerated.

In the past, officials have been admonished for being unresponsive to public opinion. The climate has now changed. The omnipresent news media has rendered it impossible for officials to stonewall questions of public concern. Even some senior officials have panicked under pressure.

There are also signs of internal politics at work. It cannot be ruled out that some people deliberately heightened public expectation or even resorted to smear tactics in an attempt to pave the way for drastic reform.

I accept the need for privatisation in principle. However, I do not support any hasty decision to push ahead with reforms at this stage. How long it is before we can achieve the goal depends upon the Government's political wisdom and determination.

The strategy of Mr Tung's think-tank is apparently to tackle the problems one at a time. The estate management team of the Housing Department is the first to bear the brunt. This may set a precedent on the tricky issues of procedure, timing and compensation for other cases. All eyes among the 200,000-strong civil service will be watching.

If an amicable settlement can be reached for the housing management staff, it might well be duplicated for other affected civil service units.

The privatisation plan has presented a rare opportunity for the affected Housing Department employees. They can not only cash in their retirement benefits, but will also be given a separate severance package. More importantly, the new management firm is likely to take on board the vast majority of those made redundant. There will simply not be enough experienced hands in the market.

Now is the most appropriate opportunity to use the profits of the Tracker Fund to set up a retirement and provident fund for the civil servants.

I am confident the public will not have any qualms about the provision of a generous scheme like this for government employees.

To ensure the privatisation is carried out properly, the Government should draw lessons from foreign experience. Canada's postal service, for instance, was successfully privatised in an orderly manner. The Canadian labour unions, which are much stronger and more radical than their local counterparts, still found the privatisation palatable. There are bound to be lessons we can learn.

Armed with such knowledge, it should not be too difficult for Secretary for Civil Service Lam Woon-kwong to win over the civil service unions and councillors.

The Hong Kong public needs to be further educated on the benefits of the listing of public utilities. Residents should welcome the opportunity to have a bigger say in the running of these companies. A successful floating of the MTRC on the Stock Exchange will set a shining example for others to follow. I am confident that in the near future the public will embrace the trend of privatisation with open arms.

Albert Cheng King-hon is a broadcaster and businessman