Strong governance: last issue we brought you the first part of SAR chief executive Donald Tsang's policy address to the Legislative Council. Following is part 2 of his address.

• Position: Hong Kong Special Administrative Region

Environment and Health

Madam President, the important task of environmental protection is integral to my three main themes of pursuing excellence in governance, fostering a harmonious community, and helping the economy power ahead at full steam. Social harmony includes harmony between humankind and nature. Eliminating environmental pollution has a significant bearing not only on public health and the quality of life, but also on the long-term development of Hong Kong. As Asia's world city, Hong Kong cannot tolerate foul air and a poor environment. Creating a better environment poses a big challenge for the Government. We are determined to deal with environmental pollution. We have the strategy, measures and action plans. In future all new major government policies will be subject to environmental protection scrutiny. It is the whole community's responsibility to protect the environment. The fundamental principle is "polluter pays". We will step up our efforts to raise public awareness of environmental protection, to make Hong Kong a green city and an ideal home loved and cared for by all.

Air

In recent years, the extent of air pollution in Hong Kong has aroused grave concern in the community. We must take vigorous measures to make sustained improvement to air quality. We must first tackle the problem at home. Since 1999, we have introduced measures progressively to control vehicle emissions, and they have started to produce results. Our next step is to introduce in stages Euro IV emission standards for newly registered vehicles from January 2006. The Government will take the lead to reduce power consumption. From January 2006, power consumption in all Government office buildings will be reduced by 1.5% annually, and the Government will take the lead in using ultra-low sulphur diesel in all government projects. The Government will consider using hybrid vehicles that have lower emissions on a wider scale, once more models become available on the market and are judged to be cost-effective. We will encourage the community to do the same. We will issue guidelines to all government drivers, requiring them to switch off engines while waiting. We will appeal to private car drivers to exercise the same self-discipline.

To fully achieve the emissions reduction targets in 2010, we have asked the power companies to accelerate the timing of emissions reduction projects, increase the use of ultra-low sulphur coal and use natural gas for power generation as much as possible. In addition, the Environmental Protection Department will progressively tighten the emissions caps during the renewal of the power companies' specified process licences, to ensure that the 2010 emissions reduction targets are achieved.

The Scheme of Control Agreements between the Government and the two power companies will expire in 2008. The Government is considering the views received in the first stage of public consultation to draw up an outline for the future development of the electricity market. In formulating new schemes of control, we will require the power companies to install effective emissions reduction facilities to achieve emissions reduction targets, as a precondition for licensing. In addition, we will ask for the use of renewable energy to generate electricity and the implementation of demand side management. We will explore options to avoid the costs of installing emissions reduction facilities being passed onto consumers as far as possible. We will proceed with the second stage of public consultation on the outline of future development of the electricity market by the end of the year.

In terms of air quality in the region, Hong Kong and Guangdong reached a consensus in 2002 on improving air quality in the PRD against targets set for 2010 and have pressed ahead with the Regional Air Quality Management Plan. We have now established a PRD Regional Air Quality Monitoring Network. With a total of 16 monitoring stations, the network can provide comprehensive and accurate information on air quality in the PRD region. The two governments have agreed to make arrangements for reporting daily to the public the PRD Regional Air Quality

Index from the fourth quarter this year. Concerted efforts within the community can provide substantial impetus to clean air initiatives. For instance, I know that our business community has taken the initiative to sign a Clean Air Charter. Details of the Pilot Emissions Trading Scheme among power plants in the PRD, jointly undertaken by Hong Kong and Guangdong, are expected to be finalised in 2006. The scheme will allow power plants to look for trading partners and enter into emissions trading contracts. The two sides are working towards the agreed emissions reduction targets in 2010, to significantly improve the air quality in the PRD.

Food Safety

As the Chinese saying goes, "food is people's paramount concern". There is now widespread public concern about food safety. The Mainland supplies Hong Kong with poultry, livestock, marine products and other non-staple food on a daily basis. We have taken the opportunity presented by recent food safety incidents to enhance our notification system with the Central Authorities and the Guangdong provincial authorities. We have agreed the systems and procedures for monitoring the safety of food imported from the Mainland. Recently we have reached a consensus on control at source. Relevant SAR Government departments will send officials to visit the facilities of Mainland suppliers to inspect the safety measures taken during the growing or rearing process. The Government will step up efforts in the sampling and testing of food being sold on the market.

To pool our resources for better food safety control, we have decided to reorganise the government departments and establish a new Food Safety, Inspection and Quarantine Department. The new Department will consolidate functions now performed by the Agriculture, Fisheries and Conservation Department and the Food and Environmental Hygiene Department in this regard, including the monitoring and controlling of imported and local live food and non-food animals, poultry and birds, and the safety of vegetables, meat, seafood and food products. The supervision of food safety involves many statutory functions and is a government responsibility. In carrying out this work, the new Department will liaise closely with relevant experts and academics as well as consumers. It will listen to their views on food safety standards to ensure that our people can eat with peace of mind. We will brief the Legislative Council on the specific arrangements later.

Medical and Health

We attach great importance to public health. We will promote health education and work with the sports sector in this regard. We remain highly vigilant about communicable disease surveillance and control. We endeavour to ensure that the Centre for Health Protection is capable of making an effective response in a crisis. We will also enhance our communicable disease surveillance and notification system with the Mainland.

We must develop a sustainable health care system. The Health and Medical Development Advisory Committee has embarked on a study and analysis of various health care financing options. It will put forward its initial proposals for public discussion early next year. Modern health care has developed into an integrated multi-disciplinary system. In response, the Government continues to work with the whole spectrum of health professionals with a view to delivering quality services. We also recognise the role of Chinese medicine in our health care system. We will assure the sustained development of Chinese medicine and treatment through effective regulation. In the public sector, the Government will open in stages more Chinese medicine out-patient clinics to cover the whole of Hong Kong, and will install computers at these clinics for the collation of Chinese medicine clinical knowledge. The public Chinese medicine out-patient clinics will also provide training to selected graduates of our local full-time Chinese medicine bachelor degree programme.

Treatment of Solid Waste

A total of 3.4 million tonnes of refuse was disposed of at the...