Chief Executive Donald Tsang has ordered banks involved in the sale of Lehman Brothers minibonds to give a clear response to the Government's buyback proposal within this week.

Speaking at a press conference this afternoon Mr Tsang said he attaches great importance to the misselling allegation, adding the Monetary Authority will complete its investigations of the first batch of complaints by week's end.

If evidence substantiates the complaints, the concerned banks must discuss resolving arrangements with customers. The authority will appoint independent people to form a group to offer mediation assistance.

The Consumer Council is also investigating the cases and will table complaints with substantial evidence to the Consumer Legal Action Fund which will consider helping customers who fail to reach a deal with banks. If necessary the Government will inject more money in the fund.

People policy: Chief Executive Donald Tsang explains his policy blueprint at a press conference and at a televised forum.

Social needs addressed

Commenting on his 2008-09 Policy Address today, Mr Tsang said the blueprint has been devised in accordance with people's needs and demands, adding all measures and policies to be introduced are prudent, practical and reasonable.

Noting the Government will continue to uphold the principle of "big market, small Government", he said it will need to intervene in a timely and decisive manner when the market fails.

When asked why there are no concrete measures to address the recent financial crisis, Mr Tsang said it is not a time for innovation but for consolidation.

"A task force will be formed to assess the crisis' impact. We should make careful and objective assessment to devise the best counter-strategies and at the same time explore opportunities to strengthen Hong Kong's position as an international financial centre. I believe this is the right strategy to adopt at this time.

Challenges to be tackled

"In the face of global financial volatility, Hong Kong needs to look at its own strengths and weaknesses to improve its system and competitiveness. The task force will look for opportunity amidst the financial tsunami to consolidate our financial sector as an important economic pillar."

Noting Hong Kong has a solid financial monetary foundation and good regulatory system, he said he is confident the community will rise above all challenges.

Although the Government has prepared various proposals for different situations, it will not introduce them at the same time to avoid causing unnecessary confusion.

Urging people to stay clam and adopt a practical approach, Mr Tsang said overreacting political actions cannot help the city overcome the difficulties.

Strategy well-planned

Speaking at a televised forum this evening Mr Tsang said as the recent global financial turmoil's impact is much stronger and more widespread than the Asian financial crisis in 1997, he expects a longer and more difficult recovery.

However, he hopes the damage caused to the community will be smaller than that in 1997 because the city's financial infrastructure and monetary supervisory framework are more robust.

On Hong Kong's long-term development, Mr Tsang said enhancing the city's status as a global financial centre is a well-considered strategy. Noting the city should continue to move in this direction, he said Hong Kong has much to offer in supporting the country's rapid development.

Elderly support assured

On the Old Age Allowance the Chief Executive said the proposed level of $1,000 is reasonable but the Government needs to consider introducing a means test mechanism to ensure resources are allocated to seniors in genuine need.

Noting resources dedicated to elderly welfare will increase annually, Mr Tsang said there must be a limit to ensure a fair distribution of resources.