Face to face: Chief Executive Donald Tsang explains his policy initiatives to the Legislative Council.

People-based policies are the foundation for strong governance, Chief Executive Donald Tsang says, adding the Policy Address' pragmatic and proactive initiatives have taken into account the public's needs.

Taking questions in the Legislative Council today, Mr Tsang said the Policy Address focused on priority areas, proposed short-term solutions to problems and outlined long-term challenges for Hong Kong. He said he is prepared to listen to opinions and make modifications according to the majority's views.

Noting the proposed sales tax is an issue the Government has been studying for about six years, Mr Tsang said it is time for the community to have a rational discussion on it to prepare for any economic downturn.

He said whether the proposed sales tax should go ahead lies in the hands of lawmakers, as they must face the reality that Hong Kong's tax base is narrow and its population is aging. While 70% of people object the proposed tax, Mr Tsang said discussion should continue to find a solution.

Minimum wage

On minimum wage, Mr Tsang reiterated the Government's determination to form ways to help the labour sector, adding that the voluntary wage protection movement, monitored by the public, can prevent employers from exploiting workers. If there are breaches, enforcement will be taken.

Mr Tsang admitted the pace of public investment in infrastructural projects is slower than expected. Noting consensus has to be reached with green groups and other parties before these projects can proceed, he hoped some - such as the Tamar project, new cruise terminal and sports complex, and the East Kowloon Development - can be launched soon with lawmakers' support, creating several thousand jobs.

He said discussions with the Central Government on how Hong Kong films can be distributed on the Mainland under CEPA are ongoing, adding that the Government will identify the film industry's needs and help through the proposed Film Development Council.

Improving welfare

On welfare, Mr Tsang said works on health and recreation facilities in North District and Tin Shui Wai will be conducted as soon as possible, and job counselling and placement services will be offered to help job seekers. The issue of healthcare financing will also be pursued.

When asked whether the concept of a medical services voucher can be adopted to help the poor and the aged, Mr Tsang said this idea can be explored when devising the healthcare financing package, though it may need a large amount of resources due to Hong Kong's demographic structure.

On constitutional development, Mr Tsang said universal suffrage is a common aspiration and is guaranteed by the Basic Law. The Commission on Strategic Development is working on the issue in a transparent manner. He urged political parties to come up with more proposals. If there is a proposal agreed by all parties, he said the Government can come up with a road map and a pragmatic model.