Is Hong Kong's Construction Sector being shoved up the creek without a paddle?

With the rapid approach of 2005 less than a month away, we thought it would be worth dipping-into the ‘pool of hope’ for what might behold the construction industry next year. Or better still, we could take a look at the 2005 "Action Lists" for the Secretary of Environment, Transport & Works (SETW) - Dr Sarah Liao, and the Secretary of Housing, Planning and Lands (SHPL) - Mr Michael Suen.

At a recent construction industry event, the Lighthouse Club Annual Dinner 2004, guest speaker Ms Christine Loh gave a PowerPoint Briefing (allegedly from the CE himself) where she was noted as saying, “Don’t all disappear to Macau – you provide the vision and expertise, we’ll provide the funding and approvals for such projects…”, or words to that effect. Well we’re not sure whether Ms Loh, Dr Liao or Mr Suen know anybody in our industry, but could one of our loyal readers please inform them of the near 20% unemployment within the industry, which is largely a result of the “do nothing culture” within the government departments, and the resulting seemingly endless “consultation” status of most large-scale projects currently proposed in Hong Kong.

Whilst the senior staff of these government bureau’s and departments remain in full employment procrastinating over such vital projects, the rest of the Construction Sector are supposed to hang around sharpening their vision, and certainly not disappearing to Macau to earn a decent salary. How many of our readers over the past few years have heard phrases to this effect, ”The project has dragged on too long….”, “We’re awaiting a decision from Government….”, “The Tender is delayed / amended…” or “The Project has been postponed / suspended….”??

How can the current government of Hong Kong carry on in this manner, and slowly decimate a world-class industry? Hong Kong was previously famed around the world for doing what most other countries seem to fail to do; simply getting on and building a project and cutting through the potential years of public debate. We know that as a result, inevitably the best solution was not always the final one tendered out, and that public consultation could have been longer, but global respect was gained for a decision being made and something getting done.

This cannot be said of our current government, and we appear to be heading into a deep dark hole of ‘consultation’ that results in a full-circle of opinions, which only serves to entice a government not to make a decision or continually delay development of a project – e.g. West Kowloon Cultural Development (WKCD) appears doomed before the concept stage has even been completed, as occurred with the Government Offices at Tamar on which millions of dollars were spent by contractors / consultants.

Shurley shum mishtake? [use your best Sean Connery accent]. We’d like to think so, but following a brief look back over a few Skyline e-Newsletters in the last year or so, we offer our readers a sad picture of projects that seem doomed to be labelled ‘under consultation’ for ever and ever, amen:

- Kai Tak Planning Review Stage 1
- Central / Wanchai By-pass
- Wanchai Development Phase 2 (WDII)
- Harbour Front Enhancement Committee / Our Harbour Front
- Tamar Site Government Offices
- West Kowloon Cultural Development Hub Project (WKCD)
- Area Improvement Plan for Tsim Sha Tsui
- HK2030 – Stage 3 Public Consultation: Planning Vision & Strategy
- Demolition of HOS flats at Hung Hom (watch this space)
- Possible Merger of KCRC & MTRCL Railway Corporations
- Reprovisioning of Sha Tin Water Treatment Works
- Study on Planning for Pedestrians / Pedestrian Plan for Causeway Bay
- Urban Design Study for Planning & Development of South East Kowloon Development
- Comprehensive Planning and Engineering Review of South East Kowloon Development
- Extension to HKCEC
- The Study on Rural Planning and Land Management Phase 2
- KCRC’s Trade Hub in Hung Hom
- Concept for Lantau Island
- Shatin to Central Link Railway Project
- Kowloon Southern Loop Railway Project
- Northern Link Railway Project
- South Island Line (SIL) / West Island Line (WIL) Railway Project
- Regional Express Line (REL) / Express Rail Link (ERL)
- HK-Zuhau-Macau Bridge Project (recently progressed to the ‘Y’ stage)
- Feasibility Study on Introducing Trolleybus System to Hong Kong
- Northwest New Territories Traffic and Infrastructure Review
- Harbour Area Treatment Scheme (HATS) Stage 2 Consultation
- Water Treatment Drainage Project
- Property Development Projects of both KCRC & MTRCL
- Central Police Station Historical Compound & Victoria Prison / Former Central Magistracy

The list is not exhaustive or in any order. We would welcome any more major projects, from our readers, that could be added to this list. At a guess, this list of works could be valued in the hundreds of Billions, yes hundreds of Billions of dollars!! So how much procrastinating or prevaricating can the industry players continue to tolerate, before they all are forced to leave Hong Kong? For the sake of the tens of thousands of livelihoods in HK, within the construction industry, it is time their voices are heard. If ‘Long Hair’ can get elected into LEGCO with 60,000 votes, it is small evidence that the impossible is at times quite possible.

Now, can any of our 10,000 readers please find a way of e-mailing this web-link to both Dr Sarah Liao or Mr Michael Suen. They really ought to have this list on their desks by Monday morning. Or, take some personal action today, and forward this link to as many LEGCO members as possible, and members of the various industry government panels. There may even be a response....

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News Headlines

Sale of historical home on hold
PEGGY SITO, SCMP 1 December 2004
The public sale of King Yin Lei Mansion on Stubbs Road has been put on hold, according to its owner Stephen Yow Mok-shing.

Minister opposes estate demolition
AMBROSE LEUNG and ELAINE WU, SCMP 1 December 2004
The heat was turned up yesterday in the row over the demolition of the Hunghom Peninsula development, with a government minister and an executive councillor blasting the plan.

Quality of staff key to success, poll finds
WINNIE YEUNG, SCMP 1 December 2004
Hong Kong companies regard the quality of their staff as the key to success, according to a survey that indicates a shift in business sentiment.

Wage rises in HK forecast to be lowest in region in 2005
NICK GENTLE, SCMP 1 December2004
Hong Kong workers can look forward to average wage growth of just 2.7 per cent next year, the lowest in the Asia-Pacific region, according to forecasts issued yesterday by human resources consultants Hewitt Associates.

Lessons to be learned from Hunghom saga
SCMP Editorial, SCMP 1 December 2004
It ought to come as no surprise that the private owners of the Hunghom Peninsula have chosen to demolish and rebuild the housing project. The redevelopment option, after all, will bring the most profit, and we are talking about companies with shareholders to please.

Cartoon
SCMP 1 December 2004

Greens blast flat demolition
Raymond Wang and Sylvia Hui, The Standard 30 November 2004
The decision to tear down a seven-tower housing project that was completed just two years ago and never occupied has outraged environmentalists, who consider it a classic example of developers' greed at work.

Developers to flatten Hunghom Peninsula
GARY CHEUNG, SCMP 30 November 2004
They've never been occupied and now they never will be. The fate of seven new blocks in a harbour-front Hunghom housing estate has been decided - they will be torn down for redevelopment into luxury flats that are likely to bring a windfall of nearly $6 billion for the developers.

Greens to protest against demolition
WINNIE YEUNG, SCMP 30 November 2004
Enraged environmentalists say they will complain to the ombudsman over the government's "serious error" in allowing the demolition of the Hunghom Peninsula estate.

Rubble and Strife
SCMP, 30 November 2004

Dust cloud feared by students at primary school
WINNIE YEUNG, SCMP 30 November 2004
About 30 students at a nearby school were honing their track-and-field skills when plans to demolish the Hunghom Peninsula housing development were announced yesterday.

100 million to die of bird flu in worst-case scenario
MARY ANN BENITEZ, SCMP 30 November 2004
The bird flu virus will be more lethal than Sars, killing up to 100 million people in the worst-case scenario of a flu pandemic, a visiting World Health Organisation official said yesterday.

Heart starter
ELLA LEE, SCMP 30 November 2004
Great Eagle Holdings deputy chairman Lo Ka-shui says his $11 billion Langham Place complex has transformed a seedy part of Mongkok into a thriving business area. Photo Dickson Lee.

Mainland craze for the biggest and best outstrips demand
SCMP, 30 November 2004
The largest mall in the world has been built in Beijing but shoppers are in short supply, writes Robert Marquand.

Government statement on the demolition of Hunghom Peninsula
Hong Kong Government, 29 November 2004
"The Government fully understands the public concerns about the possible environmental impact brought about by the demolition of the Hunghom Peninsula. As the developers hold the legal title of the land and own the property, it is the developers' commercial decision to carry out the demolition of the subject property," a Government spokesman said today (November 29).

Rail line for the delta bridge is too costly, says minister
JIMMY CHEUNG, SCMP 29 November 2004
The proposed bridge linking Hong Kong with Macau and Zhuhai will not incorporate a rail line after studies found it would cost too much, the central government minister responsible for the project has revealed.

Kowloon Hotel bids breach $2b
Staff reporter, The Standard 26 November 2004
Hotel and property investor Magnificent Estates is a leading contender to acquire Kowloon Hotel after entering a more than HK$2 billion bid for the Tsim Sha Tsui property, market sources said.

SHPL's speech on town planning and urban design
Hong Kong Government, 24 November 2004
Following is the speech by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the motion debate on "Developing town planning and urban designs featuring local characteristics for the 18 districts" moved by Hon Patrick Lau at the Legislative Council today (November 24).

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