Budget Speech

Investing in Infrastructure

55.      We will continue to invest heavily in infrastructure to promote economic development, create employment opportunities and enhance the long-term competitiveness of Hong Kong. In 2009-10, capital works expenditure reached $45.1 billion. Construction works for the Hong Kong-Zhuhai-Macao Main Bridge, site formation works for the new cruise terminal, and the Central-Wan Chai Bypass project all began at end-2009. The works for the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link project also started in January this year.

56.      The estimated capital works expenditure for 2010-11 will increase to $49.6 billion. Major works projects expected to start include the Kai Tak Cruise Terminal Building and ancillary facilities, Hong Kong-Zhuhai-Macao Bridge Hong Kong boundary crossing facilities, Harbour Area Treatment Scheme Stage 2A, and Town Park, Indoor Velodrome-cum-Sports Centre in Area 45 of Tseung Kwan O. With many projects entering their construction peaks, I estimate that the capital works expenditure for each of the next few years will be at an all-time high of over $50 billion.

57.      With the implementation of various projects including "Operation Building Bright", the employment situation in the construction sector has improved significantly. The unemployment rate of the sector has dropped continuously from its peak of 12.7 per cent last year to 7.4 per cent recently. On the other hand, we will closely monitor the construction industry’s delivery capacity to avoid the bunching of projects that may result in an upsurge in wages and construction costs, or calls from the market for the importation of labour.

58.      We are also mindful of the ageing problem and possible skills mismatch in the construction workforce. Currently, the Construction Industry Council (CIC) strives to attract more people, especially young people, to join the construction industry through training and trade testing. Furthermore, the CIC aims to enhance the skills and competitiveness of in-service construction workers and to uplift the image of the industry through promotion and public education. Together with the industry, we will take the lead to introduce best practices in public works projects to further improve the safety, working environment and conditions in construction sites. I will also earmark $100 million to support the CIC to strengthen the relevant work, and I expect that the CIC will increase its investment in tandem with this funding to provide the necessary incentives to attract more young people to join the construction industry and to improve the practice of the industry. We believe that these measures can help attract fresh blood to the industry and meet the manpower needs of future construction projects.

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