Construction boom: Chief Executive Donald Tsang says a consistent infrastructure-development agenda will enhance Hong Kong's competitiveness and economic vitality.

Chief Executive Donald Tsang says a consistent infrastructure-development agenda is essential to Hong Kong's long-term development, adding it will help the city enhance its competitiveness and economic vitality.

Speaking at a press conference this afternoon, Mr Tsang said the 10 infrastructure projects outlined in his Policy Address will cost about $250 billion - but they will generate great economic benefits.

Although more infrastructure projects may have some impact on inflation, the effect will be mild, the Chief Executive said, adding the Government will closely monitor the situation.

On the proposed salaries and profits taxes cuts, he said the decision was made after considering the city's recent strong economic performance. The Financial Secretary will announce more detailed measures in his Budget next year.

Comprehensive protection

He stressed the Government does not favour any individual person or enterprise with the tax-reduction measures, adding the proposals have covered the whole community's needs.

Responding to comments that the Government's help for the needy elderly is insufficient, Mr Tsang said a series of new initiatives have been introduced including the healthcare vouchers, provision of more day-care places and plans to improve their homes and identify suitable locations for elderly housing.

These measures provide comprehensive protection, he noted, adding the Government has adopted a multi-angled approach to tackle poverty.

On the Wage Protection Movement, Mr Tsang said the current situation was unsatisfactory as only one-third of the employees in the concerned sectors enjoy market-level salary. If no improvement is seen by next October, legislation on a statutory minimum wage for security guards and cleaning workers will be prepared.

Universal suffrage important

When asked why he did not mention much about constitutional development in his Policy Address, Mr Tsang said the number of paragraphs dedicated to a topic did not necessarily reflect the issue's importance.

He reiterated that achieving the ultimate goal of universal suffrage has always been his priority, adding the Government will continue to pay great importance to the issue.