Hong Kong Special Administrative Region (HKSAR) Chief Executive Tung Chee-hwa pledged on Wednesday to use the remainder of his term to consolidate the economy, help the underprivileged and promote social harmony.

Tung made the statements to the Legislative Council in his 2005 policy address, his eighth since 1997.

He also outlined major tasks for the coming years. Over the next three years HK$60 million (US$7.7 million) will be spent for public policy research. District Councils will play a greater role in resolving local problems.

Tung also called for the maintenance of social harmony with increased community participation in public affairs. He has assigned Financial Secretary Henry Tang to lead a commission detailed to find a solution to poverty.

On the economic front, Tung said Hong Kong would create a more favorable business environment for the construction, real estate and retail sectors while promoting cultural and creative industries and urban renewal as new pillars of growth. The environmental and recycling industries will also be given closer attention.

Tung said the central government had given Hong Kong staunch support during difficult times. The pace of modernization on the mainland and increasing market opportunities there provide strong impetus for Hong Kong's economic growth. He expects the HKSAR's economy will reach a stage of post-recovery consolidation and growth this year.

The chief executive admitted that in the past, officials had not been sensitive enough to the people when making policies. "We have taken heed of public criticisms of our governance and responded positively to people's aspirations," he said.

He emphasized that the government is committed to the vision of "pro-people" governance.

On constitutional development, Tung said political reform would adhere to the Basic Law and the interpretation and decision made by the Standing Committee of the National People's Congress (NPC)?in April last year.

"We firmly believe as long as we can maintain prosperity, stability and social harmony, our democratic constitutional system can develop rapidly and the ultimate aim of universal suffrage as set out in the Basic Law can be achieved at an early date," he said.

At a news conference following his speech Tung categorically rejected criticisms by some political parties that the government had been colluding with the business community to transfer benefits. "If there is evidence as such, you must report (it) to the Independent Commission Against Corruption," he said.

(China Daily January 13, 2005)