Legislators last night endorsed a controversial $2 billion rail-link to the Disney theme park, a plan they previously criticised as 'illegal' because of an $800 million government subsidy for the project. The contract was signed a couple of hours later. In a mildly worded motion, a Legco transport subcommittee expressed reservations about the subsidy and demanded progress reports from officials. Lawmakers have criticised the government for bypassing Legco by unilaterally waiving $798 million in dividends from its MTRC shares as a subsidy. They challenged the legality of the waiver as major public spending needs Legco approval. The subcommittee had twice demanded the deal be deferred for further discussion. A go-ahead was given last night after members from the Democratic Alliance for Betterment of Hong Kong, the Liberal Party and some non-affiliated lawmakers supported the motion. It came after officials and the MTRC provided confidential information predicting the revenue and fares of the 3.5km rail link to Penny's Bay, to be completed when the theme park opens in 2005. Speaking before the vote, Margaret Ng Ngoi-yee, representing the legal sector, warned against endorsing the government move to bypass Legco. 'We are selling out Legco's role and power,' she said. Independent Audrey Eu Yuet-mee said: 'Supporting the project means forfeiting our responsibility as lawmakers.' Acting Secretary for the Environment, Transport and Works Stephen Lam Sui-lung said after the meeting he understood legislators' concerns but the project was pressing. Democrat Albert Chan Wai-yip said he was arranging a plaintiff to seek legal aid to apply for a judicial review of the government's decision to waive the subsidy.