15 August 2006

The Honourable Henry TANG Ying Yen, GBS, JP
Financial Secretary
The Government of the HKSAR
12/F, West Wing, Central Government Offices,
Lower Albert Road, Central,
Hong Kong.

Government expenditure on works projects

 In response to my letter to you of June 2006, the Secretary for Financial Services and the Treasury has provided me with the information on the government’s total expenditure on the Capital Works Programme for the 2005-06 financial year in his letter of 4 July 2006. I am disappointed to note that the government’s spending for last year was only $26.5 billion, a significant shortfall of 15.6%.

Despite the government’s expressed determination and repeated announcements of earmarking $29 billion a year on average for infrastructure projects and create more construction employment opportunities, this substantial shortfall suggests otherwise. Government’s failure in meeting its earlier commitment has evidently worsened the unemployment situation of the construction sector which has relapsed to 13.6%, more than twice the general unemployment rate of the whole of Hong Kong. I raised the same concern to the Chief Executive when we met yesterday to discuss his forthcoming Policy Address.

I would therefore very much like to seek your enlightenment on the latest government’s position on public works expenditure and ways to deal with the unemployment in the construction sector.

Ir Dr the Hon Raymond Ho Chung-tai