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Jimmy Cheung

Preschools, pollution targeted in address critics say lacks vision

Donald Tsang Yam-kuen yesterday delivered a HK$13.8 billion  package, mainly targeting the environment and preschool education, in his last policy address before his expected campaign for a second term.

The chief executive delayed legislating on the controversial subject of a minimum wage by offering a 'wage protection movement' to encourage employers to  pay cleaners and security guards no less than the average market rate - a move that immediately drew criticism from unionists.

He also offered a HK$3.2 billion scheme to subsidise the replacement of old diesel-fuelled commercial vehicles and a reduction in first-registration tax for buyers of low-emission and fuel-efficient vehicles as part of a package that failed to please the city's  environmentalists.

And in a move seen as paving the way for his second term, Mr Tsang  laid down three key challenges the next chief executive must address - sustaining economic development, furthering the development of a democratic political system and building a harmonious society.

With just eight months to go of his current term, Mr Tsang said he had decided to focus on what he could achieve in a pragmatic way.

'If I focused  on a long-term vision, I would be criticised for lacking substance. If  I focused on  substance, they [legislators] would attack me for lacking vision,' he told a post-policy address press conference.

'I have set out what I can achieve and what I can't over the next eight months ... I have done my job. But nothing is perfect and I accept all criticisms.'

Running at just 76 paragraphs, the speech, titled 'Proactive, Pragmatic, Always People First', is the shortest since the handover. But it carried key spending initiatives.

To improve kindergarten education, a subsidy will be paid of up to $13,000 per child per year, costing about HK$10 billion over the next five years.

Other additional spending will go to  the Hong Kong Design Centre for its brand-building efforts for Hong Kong products, the Arts and Sport Development Fund in support of cultural development and efforts to train elite athletes.

Mr Tsang denied that his spending pledges were jumping the budget in February and aimed at paving the way for his re-election.

'This is a collective decision of the government ... I believe these [initiatives] are the right thing to do.'

Rejecting claims that the wage protection campaign was a delaying tactic to avoid the introduction of minimum wage legislation, Mr Tsang said it would bring quick protection for workers.

He said the government would proceed with legislation if the campaign, targeting cleaners and security guards, proved ineffective when it was reviewed after two years.

Wrapping up the 75-minute speech at Legco, which was interrupted twice by protesters calling for a minimum wage, Mr Tsang added a surprise  reflection on his rise to power and Hong Kong's journey from a refugee city to an international financial centre.

'I never for one minute thought that one day I would become chief executive. But I am now in this position and I will certainly rise to the challenge ... Act when you should act, and stop when you should not press on,' he said.

While academics said Mr Tsang had deliberately steered clear of political controversy, the Democratic and Civic parties criticised the blueprint for lacking vision. The Democratic Alliance for the Betterment and Progress of Hong Kong said it was not progressive enough.

The Federation of Hong Kong Industries welcomed what it called a pragmatic approach to the minimum wage issue, while the Hong Kong General Chamber of Commerce warned against micro-managing labour relations. The American Chamber of Commerce called for more specifics on the environment.

KEY POINTS AT A GLANCE

POLLUTION HK$3.2 billion subsidies for replacement of heavily polluting commercial vehicles; first-registration tax on fuel-efficient, low-emission cars cut by 30 per cent

MINIMUM WAGE No legislation; instead a voluntary 'wage protection movement' to help cleaners and security guards, to be reviewed after two years

EDUCATION HK$2 billion annual kindergarten subsidy from next school year, giving up to HK$13,000 per child, divided into HK$10,000 to parents towards fees and HK$3,000 to school for teacher training; academy for gifted secondary school students to be set up

SPORT HK$40 million support for elite athletes and $30 million for grass-roots sports development

ARTS HK$40 million for Arts and Sports Development Fund to support the cultural sector; a film development council to be set up



'Pragmatic' Tsang delivers HK$13.8b package