The Chief Executive did not intervene, interfere or have any influence whatsoever in the commercial negotiations between Television Broadcasts Limited and Hong Kong Industrial Estates Corporation regarding TVB's acquisition of a site in Tseung Kwan O Industrial Estate, Permanent Secretary for Commerce, Industry & Technology Francis Ho told reporters today.

Speaking at a press conference this afternoon, Mr Ho stressed that Tung Chee Hwa did not influence any official or any government department in the handling of TVB's application.

"The whole application was handled by the executives of the Hong Kong Industrial Estates Corporation at the time. When they concluded the negotiations with TVB, they submitted their recommendations to the board of the corporation for approval. This is entirely in accordance with the established procedures for processing, handling and also approving applications," he said.

"So, this is nothing unusual and I stress that the Chief Executive did not have any role to play in this entire process."

Admission criteria reviewed in response to economic restructuring

Mr Ho also responded to concerns about whether the government had deliberately altered the Industrial Estates admission criteria in 1998 to facilitate TVB's admission into Tseung Kwan O Industrial Estate. 

"I want to stress that the whole review was taken in 1997 and 1998 in response to the economic restructuring of Hong Kong at the time. Because at that time Hong Kong was facing a very major economic restructuring with the relocation of many of the manufacturing processes into the Pearl River Delta, resulting in a very very low demand on the industrial land at Tseung Kwan O Industrial Estate," he said.

"At the same time service industry was picking up a very significant proportion in the Hong Kong economy. As a matter of fact, we did receive quite a number of enquiries from the service sector, notably from sectors such as logistics, such as data centres and other service areas about the feasibility of such companies as being admitted into the Industrial Estate."

The review, he said, was mainly a response to this situation. It began by consulting  boards and committees, notably the Industry & Technology Development Council and the Commerce & Industry Panel of legislature at the time.

"We did obtain the approval of the Executive Council to change the admission criteria of the Industrial Estate. We publicised and promulgated the new admission criteria in a very transparent and also very responsible way."

Industrial Estates Corporation handled TVB negotiations

The negotiation on the admission of TVB into the Industrial Estate was handled by the executives of the Industrial Estates Corporation, on a commercial basis, Mr Ho reiterated.

"It was a very tough negotiation at that time but I think we must take into account the fact that actually the demand for land at the Hong Kong Industrial Estates Corporation was very low at that time."

At a time when the economy was weak, TVB was prepared to invest more in the estate in terms of their land requirement and their investment into building, new equipment and other new services.

"Therefore, the whole negotiation was conducted on a commercial basis, having regard to this special situation with regard to the applicant," Mr Ho said.