The shelving of the Link Reit listing is regrettable, but under the circumstances it was the only sensible course to take. To have pressed ahead despite a potential court challenge would have been reckless and irresponsible.
Now the government has an opportunity to pause for breath. Time should be taken to reflect on the failings that led to the derailment of the world's biggest real estate investment trust. The priority must be to ensure that when the privatisation finally goes ahead, it does so without the slightest hint of a hitch.
But there are worrying signs that the officials responsible for this fiasco have not learned from their mistakes.
Housing chief Michael Suen Ming-yeung set alarm bells ringing when he compared the collapse of the $21 billion listing to the September 11 terrorist attacks on the US. This was an extraordinarily insensitive comment. It also suggests that the government has failed to face up to the root of the problems that beset the Link listing.
Mr Suen claimed the legal difficulties that scuppered the privatisation were impossible to foresee. Therefore, he concluded, no one is to blame. This is a convenient conclusion for the government to reach. But this is precisely the sort of complacent approach that led the listing into trouble in the first place.
The government must take responsibility for failing to ensure the listing was built on sound legislative foundations. There should have been no legal ambiguities capable of being exploited in the courts.
There is no justification for saying that the legal action was unexpected. The listing has not been politicised - it is inherently political. We are dealing with the disposal of public assets that serve the poorer members of our community. There is every chance that the sale of the shopping malls and car parks will adversely affect the interests of Housing Authority tenants.