Expectations for the next Chief Executive (2017/01/12)

President, the political ecology of Hong Kong has undergone drastic changes over the past 20 years. Before the reunification, the Governor was directly appointed by Britain. He stood entirely for the interests of the sovereign power and imposed many restrictions on Hong Kong people's democratization and freedoms. Since the reunification, the Central Authorities have vested Hong Kong with "a high degree of autonomy" under the framework of "one country, two systems" and "Hong Kong people ruling Hong Kong". Except for defence and foreign affairs, Hong Kong can enjoy autonomy with its separate political, economic and judicial systems. It also has the power to use its public financial resources and does not need to pay any taxes to the Central Authorities.

Returned by election, the Chief Executive of this Special Administrative Region of the country is better able to stand for the interests of Hong Kong people. The autonomy which the Central Authorities vest with the Chief Executive is far greater than the power of the Governor in the past and even greater than the authority of the provincial governors in the Mainland. At the same time, in order to accelerate the progress of democratization in Hong Kong, the Central Authorities have increased the proportions of directly elected seats in the Legislative Council and District Councils. This has created the greatest room ever for the political participation of people with dissenting political opinions. Regrettably, some in the opposition camp have made use of such room to stir up trouble over and over again, in a bid to debase the Chief Executive, undermine the prestige of the SAR Government and make its governance a difficult task. Owing to politicians' challenges and the many aspirations in society, the Chief Executive must be a person with exceptional political wisdom and governing philosophy.

Considering the complicated political ecology in Hong Kong, WANG Guangya, Director of the Hong Kong and Macao Affairs Office of the State Council, has recently set out the four major prerequisites of the Chief Executive: love for the country and Hong Kong, governance ability, the Central Authorities' trust and Hong Kong people's support. To begin with, I think love for the country and Hong Kong and also the trust of the Central Authorities must be the basic requirements for the Chief Executive. Since Hong Kong is an inalienable part of the People's Republic of China, basic political ethics must require the Chief Executive to love the Motherland and Hong Kong and to command the Central Authorities' trust. Is there any country in the world that opens its central executive machinery to a person who rejects his or her own country and opposes the ruling regime? And, the post of Chief Executive is such an extremely important one, I must add.

The reason why the 31 August Decision clearly sets out the procedures of nominating candidates in the Chief Executive Election is precisely to ensure that all persons succeeding in getting nominations can meet the basic requirement of "loving the country and Hong Kong". The opposition camp wants to enlarge the nomination base and get more nominations. But will those nominated by the opposition camp genuinely love the country and Hong Kong? Can such nominees really steer clear of foreign intervention? Will they bear true allegiance to the People's Republic of China? Owing to the radicalism of the opposition camp in the past, I do not think that it will ever be possible for the Central Authorities to yield on these bottom lines. The recent oath-taking trouble in the Legislative Council stirred by YAU Wai-ching and Sixtus LEUNG to propagate "independence" can prove that the worry of the Central Authorities is not without any reasons. Democratic elections should not be deprived of a bottom line of defence, and ideas aiming to subvert the political regime of our country should not be allowed to get inside this Chamber.

Second, the next Chief Executive must have exceptional governance ability. Given the complicated political ecology in Hong Kong and people's economic and livelihood aspirations, the Chief Executive must have the ability to resolve crises. In order to tackle problems, apart from knowing Hong Kong well and capitalizing on our advantages, the Chief Executive must also have a global vision and a good understanding of the Mainland, serve as a bridge between the Mainland and Hong Kong, and persuade the Central Authorities to roll out more policies for the benefit of Hong Kong people. The Chief Executive must have the enterprise and skill to lead the civil service team of 160 000 people, so as to provide the public with the infrastructure facilities and services they need. In regard to people holding dissenting political opinions, the Chief Executive must know how to balance the interests of all sides, so as to clear the way for the SAR Government, create a better environment for governance and resolve the deep-rooted conflicts in our society step by step. As the SAR Government possesses some $800 billion of fiscal reserves, the next Chief Executive should also have the ability to make good use of the fiscal reserves to resolve livelihood problems and improve the economy.

Hong Kong is now beginning to face the problems of population ageing and a dwindling workforce. The risk of running into fiscal deficits in the long run is getting bigger. But unlike many developed countries which must depend on borrowing as means of maintaining their public services, Hong Kong still possesses sufficient financial resources to improve people's livelihood and welfare benefits. I hope that while the next Chief Executive adheres to the principle of prudent fiscal management, he or she can at the same time release part of the fiscal reserves for the purpose of tackling certain urgent livelihood problems. The new Chief Executive can win the support of Hong Kong people only when they can receive direct benefits.

Finally, I hope that the next Chief Executive can pay more attention to the industrial and commercial sector, especially the conflicting interests of small and medium enterprises ("SMEs") and the labour sector. Hong Kong is a free and open economy in which SMEs account for 98% of all local enterprises. But the difficulties faced by SMEs in their operation are no less serious than those faced by ordinary employees. Owing to the inadequacy of welfare benefits and retirement protection, the Government has recently been driven by pressure from various sides to commence studies on standard working hours and put forward ideas on abolishing the offsetting arrangement under the Mandatory Provident Fund System. All such measures will have direct impact on SMEs, adding to their costs and affecting their liquidity. If the Government fails to handle these issues properly, the decline of SMEs will result, thus fostering the further dominance of big corporations. I hope that while the next Chief Executive seeks to improve employee benefits, he or she can also fully consider the capacity of SMEs. A balance must be struck between the interests of both sides, and no one side should be looked after at the expense of the other.

President, I so submit.