Recently, I have noticed that people inside and outside the Legislative Council often associate the Government’s investment in infrastructure projects with the notion of “white elephant” and claim that the Government is wasting public money. They try to sway public opinion on infrastructure investment. I would like to point out solemnly that these thoughts are short-sighted and overly alarmist. The Government’s delivery of public works projects aims to improve people’s quality of life, enhance Hong Kong’s long-term competitiveness and promote its economic development. It definitely is a visionary and committed approach, and I hope that the public will not be misled by the false allegations.
In less than two weeks, Hong Kong will celebrate the 20th anniversary of its return to the motherland. I would like to take this opportunity to look back on the infrastructure development of Hong Kong and its important missions since our return to the motherland, as well as to clarify some misconceptions and set the record straight.
Facts speak louder than words – “white elephant” remarks are misleading
First, I notice that some people mistakenly believe that all large-scale infrastructure projects involving significant amounts of money are “white elephant” projects. In fact, “white elephant” projects broadly refer to those incurring extremely high construction and maintenance costs but without much economic benefit from an economic point of view.
Looking back on Hong Kong’s history, the major infrastructure projects in each era were all aligned with the social development and needs at the time. The $100 billion Airport Core Programme (ACP) completed around the time of Hong Kong’s return to the motherland was criticised in the initial stages as a waste of public money and was asked to be shelved. However, 20 years on, it is proved that the new airport has not only supported Hong Kong’s economic development, but also consolidated Hong Kong’s leading role as the logistics and aviation hub in the region. After relocating the airport away from the urban area, the public no longer suffers from the aircraft noise and the site of the former Kai Tak Airport can be released for other social development uses.
At the turn of the millennium, there was still widespread criticism on infrastructure development. The West Rail was branded a “white elephant” project back then due to insufficient patronage at the initial commissioning. Today, it has become a major means of transport in northwest New Territories, providing convenient services for the public. Many have even commented that its passenger capacity is close to saturation. Also, the well-known Harbour Area Treatment Scheme has survived numerous disputes before its completion. In the end, there is marked improvement in the water quality of the Victoria Harbour, and the cross-harbour race that was suspended for decades has been resumed in recent years. These are all good examples of sowing the seeds of future success.
Benefits that can be expected for cross-boundary infrastructure
Recently, some people have alleged that the cross-boundary infrastructure is “white elephant” projects. The infrastructure projects that they refer to, however, are still at the construction stage at the moment. In the absence of actual data on their cost-effectiveness, the reckless allegations are indeed unfair and lack credibility. In fact, the cross-boundary infrastructure mainly involves transport projects which aim at enhancing the connectivity between Hong Kong and other places. They are fully in line with the principle of enhancing Hong Kong’s long-term competitiveness and promoting its economic development. The conspiracy theory that the projects are initiated for political reasons is therefore completely groundless. In addition, some projects are only at the initial planning stage and their long-term social or economic benefits may not be seen at the moment. As a matter of fact, our infrastructure facilities have been instrumental in serving the community every day. They provide convenience for the people and improve the living standards gradually. According to the findings of a study by the Hong Kong Polytechnic University commissioned by the Development Bureau (DEVB), every $1 million invested in the transportation projects of the then ACP could generate total economic and social benefits worth about $4.6 million in the long run.
Infrastructure and economic competitiveness
Infrastructure development plays an essential role in the economic growth and competitiveness of a place. The Global Competitiveness Report published annually by the World Economic Forum assesses the infrastructure performance of various places. Hong Kong’s infrastructure has been ranked the first for seven consecutive years while the overall competitivess of Hong Kong has all along been rated around the top ten places. In the face of keen global competition among various economies, Hong Kong has to continue to promote infrastructure development in order to maintain its long-term competitiveness. As such, I consider that not attaching importance to infrastructure development and disregard of Hong Kong’s long-term benefits may sacrifice our economic growth and competitiveness.
Moreover, in view of the current keen demand for public facilities, severe land and housing shortages, increasing burden on transport networks, an ageing population as well as the dire need to upgrade and expand our medical facilities, the Government has a duty to satisfy social development needs and meet the public aspirations for a better life. In this connection, the public works projects launched by the Government every year are essential to people’s livelihood. Each of these projects has its urgency as well as social and economic benefits. It is not true that projects are blindly delivered.
Land sale is definitely not for infrastructure
Recently, there have been allegations that the Government’s ongoing “land sale is to finance infrastructure”. I must point out that such claims are completely groundless. The current Government has been adopting a multi-pronged approach to increase “land supply”, and land sale is definitely not intended for the delivery of infrastructure projects. Also, the Government has various financing arrangements to fund the infrastructure projects, and the revenue from land sales is not the only option. In view of this, the allegations that “land sale is to finance infrastructure” are both fallacious and groundless!
I am also aware of the comments that land revenue can only be used for infrastructure investment and cannot be redeployed to cover other government expenditures even if there is a surplus. Such comments are also not true. Under the operation mechanism of the Capital Works Reserve Fund (CWRF), after land revenue is put into CWRF, the Financial Secretary has the authority to allocate the unused balance to the General Revenue Account. I consider that any responsible public comments should be based on prior in-depth studies, so that the public can realise the truth and will not be misled.
Infrastructure investment for a better future
It has been 20 years since Hong Kong’s return to the motherland, people’s quality of life has improved continuously and Hong Kong’s economy has thrived even further after the financial turmoil. Infrastructure projects have certainly played a crucial role. Over the past 30 years, I have had ample opportunities to take part in the planning and implementation of numerous infrastructure development projects in Hong Kong. I have been working hand in hand with colleagues from the DEVB and other departments to promote and implement various policies and initiatives related to infrastructure facilities over the past few years. I am pleased to witness the achievements and progress of Hong Kong’s infrastructure development, but at the same time I am disappointed about the remarks and actions that aim to query or even smear our work in this aspect. I would like to, through this blog post, explain to the community and the public our goals of promoting infrastructure development and the efforts we have made. I believe that the Government will continue to invest in infrastructure development in an orderly manner in the days to come, so as to make Hong Kong an ideal place to live and work and lead the city towards a better future.
18 June, 2017
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