Billed as the annual dialogue between Chief Executive Tung Chee-hwa and the business community, there was one thing absent from the post-policy-address luncheon on Monday - any reference to the notion of 'collusion between government and business' and 'transfer of benefits'. Mr Tung did not wade into the political quagmire during his speech, and the matter was not raised during questions afterwards. The only marginal reference was Mr Tung's pledge to maintain a 'business-friendly environment' and to promote a level playing field. This was despite the strong remarks made by Mr Tung on the sensitive issue of relations between government, business and the people in his policy address. Still, it was surely the unspoken topic of the day. Highlighting the importance of social harmony and stability, Mr Tung put fairness in governance at the top of a set of five principles which his administration would adhere to. 'While ensuring the efficiency of our free market and its capacity to create wealth, we also seek to properly balance the interests of different social strata and sectors,' he said. 'We are resolutely against 'collusion between business and the government' and ... will enforce our monitoring systems to eliminate any 'transfer of benefits'.' Mr Tung's surprise initiative to address the issue caused a stir both in political and business circles. Grilled by legislators, the chief executive insisted there was 'no collusion between government and business'. Property tycoon Ronnie Chan Chi-chung said that the single-tender approach for the West Kowloon cultural district project would give rise to fears about such collusion. The cultural hub is one of a string of recent controversies that have touched a sensitive nerve over the alleged clandestine mix between politics and business. Among the notable cases are the Cyberport project, the Hunghom Peninsula estate and the Link Reit listing sagas. The government's refusal to enact an all-encompassing competition law has also been seen as favouritism towards some sectors. Last week, the administration's telecoms watchdog was criticised over its decision to allow PCCW freedom to set its own prices without prior approval, at a time when the company is close to finalising a deal over the sale of shares. While it is hard to prove or disprove theories of collusion, most, if not all, of these cases seem to indicate signs of subtle changes in the business environment and the political power game. Speculation has been rife that the government will back down from its single-developer approach for the West Kowloon cultural district development. Analysts claim that the row has caused concern in Beijing about the far-reaching political and economic implications. One argument is that granting the rights to one consortium risks giving it too much influence, both politically and economically. At a time when stability and harmony are of paramount concern, and faith in the administration's credibility is weakening, Mr Tung's pledge to oppose government-business collusion does not sound like mere rhetoric. Instead, it looks set to have significant implications on policies involving business interests, as well as playing a part in the power game over the formation of the next administration. To pacify public discontent, Mr Tung is anxious to clear the name of his administration after accusations of favouritism to business tycoons. That he did this with a bang reflects the turbulent waters in the political and business environment. Chris Yeung is the Post's editor-at-large
