Many of you will have heard of the expression "From shirtsleeves to shirtsleeves in three generations". What is true of businesses can be true of cities also.

Hong Kong is in a race with competitors near and far. We have many advantages: rule of law; a free and open economy; a free and open society; an honest and efficient bureaucracy; social harmony and safe streets; good infrastructure; hardworking, decent citizens; a beautiful natural environment.

With so many advantages, the race is "ours to lose". We must use every effort to protect the advantages we already have, and ensure that they are not diminished or diluted in any way.

But we cannot rest on our past success. Cities, like societies and individuals, must grow and innovate, or they will stagnate.

The model of development which we pursued in the last 50 years, driven by dramatic population and economic growth, brought us to where we are today. Today, our population is stable and our economy has reached a greater stage of maturity. We no longer have to compete on the same terms as our neighbours, many of whom are facing the same pressures that we faced in the past. We have been through the 20th Century model of growth. Now we must create a 21st Century city.

New policies are needed in the areas (in no particular order of priority) of town planning, energy, transportation, education, immigration, healthcare, taxation, and conservation (both of our built heritage and our natural environment), amongst others.

But beyond the role of setting the framework for sustainability and providing municipal and social services and legal infrastructure, government should step aside and allow individuals and businesses the freedom to create and the freedom to compete. It is not the role of government to "encourage" any industry or business sector. The market is the best planner; it is the best arbiter of what will work and what will not.

Perhaps the most urgent issue of all is political reform. We must proceed towards a system that not only satisfies the aspirations of citizens for a greater say in the political process, but also one which gives government the legitimacy it needs to implement policy in an efficient and effective manner.

As your representative in LegCo, I will seek to bring a new voice to the debate about our future direction as a city. Naturally, I will be very mindful of the needs of the business community, but following the line that "what is good for business is good for Hong Kong" is not going to get us far enough. My views will be determined by the philosophy that what is good for Hong Kong is good for business: a thriving city is a city that is good for business.

My voice will be independent. I will not be tied to any party platform. Nor will I be bound by the narrow sectoral interests of any functional or business sector: I am free to propound policies that are good for Hong Kong and its economy as a whole.

The advantages that we already have are the basis of our confidence in the future. Let us use that spirit of confidence to take a leading role amongst the cities of the world which are forging a sustainable path in the 21st century.






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