Shopper's paradise: The Government has finalised plans to preserve the open-air bazaar in Tai Yuen and Cross Streets in Wan Chai.

A progressive city treasures its own culture and history, Chief Executive Donald Tsang said in his Policy Address, in which he outlines heritage conservation plans for Hong Kong.

"In recent years, Hong Kong people have expressed our passion for our culture and lifestyle. This is something we should cherish. In the next five years, I will press ahead with our work on heritage conservation," he said in the Legislative Council.

All public works projects involving historic and built heritage must undergo a heritage impact assessment so that the conservation of historic sites and buildings will be given due consideration in the project planning stage.

In line with the concept of sustainable conservation, Mr Tsang would like to see revitalisation pursued rather than preservation alone, to maximise the economic and social benefits of historic buildings.

He has called on the Urban Renewal Authority to extend the scope of historic building protection to cover pre-war buildings - and to consider not just preservation but also ways of revitalisation.

To revitalise the large number of historic buildings the Government owns, the Chief Executive will introduce a scheme to allow non-governmental organisations to apply for their adaptive re-use. Initilly, six to eight buildings will be offered, and he hopes they can be transformed creatively into unique cultural landmarks.

To achieve a win-win situation, the buildings will be run as social enterprises under Government management. Mr Tsang has earmarked $1 billion under the Capital Works Reserve Fund for this purpose.

The business community is invited to participate in adaptive re-use of other historic buildings with commercial value. The Policy Address sets out three specific proposals that highlight revitalisation as the guiding principle of heritage conservation. They are:

* the Central Police Station compound at Hollywood Road: The Government has accepted in principle an innovative $1.8 billion revitalisation proposal submitted by the Hong Kong Jockey Club;

* the original site of Central School: The Former Police Married Quarters Site at Aberdeen Street, which is the original site of  Central School, will be removed from the list of sites for sale by application for a year and proposals will be invited on its revitalisation;

* Wan Chai open bazaar: The Government's plan for preserving the open-air bazaar in Tai Yuen Street and Cross Street has been finalised, and is awaiting the endorsement of the Wan Chai District Council. The Development Bureau and the Urban Renewal Authority will adopt a district-based approach in considering the development and revitalisation of Wan Chai.

Promoting the protection of privately-owned historic buildings is a complex issue which involves safeguarding private property rights, the prudent use of public money, and meeting public expectations.

The Government will explore arrangements to provide economic incentives for private owners to encourage heritage protection, Mr Tsang said. It will also offer financial support for maintaining privately-owned graded historic buildings.

In the next five years, the Government will step up its heritage conservation work. A Commissioner for Heritage Office, to be set up in the Development Bureau, will provide a focal point for public participation, the Chief Executive said.