Opening remarks by SDEV on works policy areas at LegCo Finance Committee special meeting
Following are the opening remarks (English translation) by the Secretary for Development, Ms Bernadette Linn, on works policy areas at the special meeting of the Legislative Council (LegCo) Finance Committee today (April 16):
Chairman and Honourable Members,
In 2026-27, the total estimated expenditure of the Works Branch of the Development Bureau (DEVB) and its departments is about $24.47 billion, comparable to the revised estimate for the previous year. There is a decrease of 397 civil service posts, representing a reduction of about 2.5 per cent. Next, I will highlight the work of the DEVB in the works portfolio, particularly several initiatives involving additional funding in the Budget.
New quality productive forces in the construction industry: Leveraging innovative technologies to seize development opportunities
The first part concerns how to enhance the construction industry as new quality productive forces. Infrastructure projects are a crucial investment for Hong Kong's long-term and sustainable development. Our capital works expenditure is estimated to be about $128 billion for this financial year, which will remain at a similarly high level annually until 2030-31. While continuously investing resources in land and infrastructure development, the Government is committed to reducing construction costs. We are driving reforms on four fronts on construction costs, including optimising the project procurement model; applying advanced technologies; streamlining the approval process; and reviewing the design standards and requirements. All these initiatives will be implemented once they are ready.
In addition, the Government has been supporting innovation, and injected $2.2 billion into the Construction Innovation and Technology Fund (CITF) in 2018 and 2022. The Budget this year has proposed earmarking $1 billion for further injection into the CITF, together with the Construction Industry Council's contribution of $400 million, bringing a new allocation of $1.4 billion to promote wider adoption of innovative technologies, including promoting the application of new technologies such as robots, artificial intelligence and digital construction technologies in the industry and organising relevant training programmes. Furthermore, it is mentioned in the Budget that $100 million will be earmarked for commissioning the Building Technology Research Institute, a wholly Government-owned entity, to conduct various studies, including reviewing construction standards and exploring AI applications, so as to promote applied research and development and strengthen control over construction costs. The commitments and annual cash flows for the above two allocations have been included in the annual estimates of the Works Branch.
In addition to benefitting from integration into the overall national development, the construction industry must actively contribute to the development of our motherland. To this end, we will maintain close communication with relevant ministries of the Chinese Mainland to further deepen the alignment of construction standards and regulations between the two places, and bring the strengths of Hong Kong's construction industry into the Guangdong-Hong Kong-Macao Greater Bay Area.
The Construction Industry Council last week released the Construction Expenditure Forecast and the Manpower Forecast for Hong Kong Construction Industry for the next five years. With the gradual commencement of the Northern Metropolis and various development projects, the forecasts indicate a progressive resurgence in the private sector construction volume, and the manpower demand of the construction industry will remain keen in the next five years. The Budget has proposed an allocation of $65 million to increase the number of training places under the Government's Graduate Training Scheme to 260 this year, so as to support more construction graduates in gaining relevant work experience in order to obtain professional qualifications, thereby helping the industry to retain talent.
Built heritage conservation
Another part concerns built heritage conservation. We have long attached importance to this area of work, and established for such purpose, the Built Heritage Conservation Fund (BHCF) has received injections of $3.6 billion in the past years. To date, projects involving a total funding of over $3.4 billion have been approved under the BHCF, and the remaining balance is close to depletion. The Budget this year proposes an additional allocation of $1 billion to the BHCF to continue taking forward the initiatives related to revitalisation of historic buildings, of which $700 million will be used to continue to implement the Revitalising Historic Buildings Through Partnership Scheme. We will invite non-profit-making organisations to submit revitalisation proposals for individual historical projects in accordance with the established mechanism, and seek funding approval from the Finance Committee of the LegCo for the revitalisation works required on a project-by-project basis. The remaining $300 million will be used to continue the implementation of the other three schemes under the BHCF, and most of that amount will be earmarked for the Financial Assistance for Maintenance Scheme on Built Heritage to subsidise owners or users of graded historic buildings to carry out basic maintenance works for the relevant buildings. We will set aside the necessary funds in the annual head expenditure estimates according to actual needs.
Utilising technologies proactively to address extreme weather
The last part concerns how we will make proactive use of technology to address extreme weather. To meet the challenges posed by extreme weather, various works departments under the DEVB have set up emergency response and monitoring mechanisms. We endeavour to continuously enhance the effectiveness of the mechanisms with proactive use of technologies. Through promoting digital intelligence management, we will leverage AI technology to strengthen the alert systems, allowing us to respond early to flooding and landslides and to alert the public to take shelter in a timely manner. Moreover, to prevent disruptions to fresh water supply caused by water mains bursts, we are currently expanding and upgrading the Water Intelligent Network to strengthen the detection of leakage in the water distribution network, and planning to adjust water pressure with AI to reduce the risk of water mains bursts.
Conclusion
Chairman, the details of other tasks of the works portfolio have been provided in the Controlling Officer's Reports. My team and I shall be happy to respond to further questions from Members.
Source: AI-found images
Opening remarks by SDEV on planning and lands policy areas at LegCo Finance Committee special meeting
Following are the opening remarks (English translation) by the Secretary for Development, Ms Bernadette Linn, on planning and lands policy areas at the special meeting of the Legislative Council (LegCo) Finance Committee today (April 16):
Chairman and Honourable Members,
In 2026-27, the total estimated expenditure of the Planning and Lands Branch of the Development Bureau (DEVB) and the departments under its purview is approximately $7.761 billion comparable to the revised estimate for the previous year. The number of civil service posts has decreased by 307, i.e. about 4 per cent, compared with last year. The Planning and Lands Branch of the DEVB will continue to optimise the use of resources and take forward the following priority tasks under the principle of enhancing quantity, speed, efficiency and quality.
Accelerating the development of the Northern Metropolis
The first task is accelerating the development of the Northern Metropolis (NM). Fully advancing the development of the NM will remain the top priority of our work in the coming year. Of the nine planned New Development Areas in the NM, site formation and infrastructure works for four are in full swing. Subject to funding approval of the LegCo, we will commence this year the works for the University Town in Ngau Tam Mei, Phase 1 Stage 2 of San Tin Technopole, and the government joint-user complex in Kwu Tung North. We also plan to commence the statutory plan rezoning procedures in Lau Fau Shan and the Priority Development Area of the New Territories North New Town within this financial year.
Meanwhile, we will introduce dedicated legislation to accelerate the development of the NM, with a view to further removing barriers and easing restrictions for the NM development and facilitating industry operation. We have commenced public consultation on the proposals for the dedicated legislation, with the target of introducing the bill into the LegCo in the middle of this year, and striving to have the legislation exercise completed within this year. Besides, the NM Projects Supervision Office has been established to remove barriers and expedite the approval of the private projects.
The wholly government-owned Hung Shui Kiu Industry Park Limited (the Park Company) was established early this year. This enables the Government to take a leading role, better integrate market forces and adopt public-private partnership in developing and operating the around 23-hectare sites of the Hung Shui Kiu Industry Park, with a view to driving a diverse range of industries including high valueadded or smart production and advanced construction. We will complete the remaining preparatory work in the second quarter, including seeking approval from the LegCo to inject capital of $10 billion into the Park Company, enabling it to commence operation in the middle of this year.
Also in Hung Shui Kiu is the first project under large-scale land disposal for which the tender invitation is under way. After the tender close in July, we will complete the tender evaluation process as soon as possible. Also, we will continue to incentivise investments from the market by implementing other innovative land administration measures, such as "Pay for What you Build", which has been introduced to Members earlier; allowing land owners to voluntarily surrender land planned to be resumed by the Government to offset the amount payable for land premium; and extending the tenancy term of the short-term tenancies.
While pursuing development, we remain committed to promoting urbanrural integration. We will brief the Panel on Development in the middle of this year on the ideas for "urban-rural integration", including the details of setting up the $200 million "NM Urban-rural Integration Fund" proposed in the Budget. We will introduce the operation details of the fund to the Panel at that time. Subject to funding approval from the LegCo, we will establish this new fund within this year.
Stable land supply to support diversified development
Secondly, besides the NM, stabling land supply to support diversified development is also our priority task. In respect of overall land supply, the Government's Land Sale List for this financial year includes nine residential sites. Together with supply from other sources, the potential land supply for the whole year is expected to have a capacity for providing some 22000 units. In view of the vacancy rate and the supply and demand situation in the nonresidential property market, the Government will continue not to put up general commercial sites for sale in the new financial year.
We definitely wish to make good use of the commercial sites on hand. Following the considerably positive response to the Hostels in the City Scheme launched last year, the DEVB has earlier invited the market to submit expressions of interest for post-secondary student hostel development on three sites planned for commercial uses. We received very positive responses and are currently consolidating and analysing the feedback received. It is expected that one or more of the relevant sites for post-secondary student hostel purposes can be rolled out for sale starting from this financial year the earliest.
To take forward the comprehensive yacht development project for the Aberdeen Typhoon Shelter under large-scale land disposal, we will seek funding approval from the LegCo in the second quarter for the expansion of Aberdeen Typhoon Shelter, and commence the rezoning procedures for this comprehensive yacht development project and onshore development in mid-year. We expect to launch a tender for the yacht development project under large-scale land disposal in the first half of next year.
Enhancing building maintenance
Our third key task is enhancing building maintenance. The DEVB, together with the Urban Renewal Authority (URA), will strive to launch an enhanced version of "Smart Tender" in the second half of this year. It will include establishing a more rigorous "pre-qualified list" of consultants and contractors, and the URA conducting the tendering and tender evaluation processes for owners to engage consultants and contractors. We propose in the Budget to inject a total of $300 million to the URA for this purpose, with $100 million as start-up capital for the URA to establish a subsidiary company dedicated to providing the enhanced “Smart Tender” services; and the remaining $200 million to provide fee concession subsidies for owners using "Smart Tender". We will make a report on the proposed implementation details of the enhanced "Smart Tender" to the Panel on Development in due course.
We will also allocate an additional $1 billion to the Lift Modernisation Subsidy Scheme to handle the remaining applications for some 1 200 lifts received. In addition, we are reviewing the practical experience gained from Operation Building Bright 2.0, and have earmarked $3 billion in this regard. We pln to consult the LegCo and seek funding for launching the new subsidy scheme for building maintenance after completing the review early next year.
By the end of this year, we will introduce a bill to the LegCo to amend the Buildings Ordinance, including the proposals for making further legislative amendments in light of the fire incident at Wang Fuk Court, e.g. upgrading large-scale maintenance works to Class I minor works for enhanced regulatory oversight; and strengthening safety measures for regulating large-scale maintenance works.
Enhancing the harbourfront
Lastly, on leveraging harbourfront resources, the event and public space at the former Hung Hom Railway Freight Yard Pier has been opened progressively from the end of last month for public enjoyment. We are currently exploring how to better connect the East Kowloon harbourfront, and will release for consultation in the second quarter of this year possible connectivity options at the New Praya, Kennedy Town.
The above is a brief report. I and my team from the DEVB will be happy to respond to any further questions that Members may wish to raise.
Source: AI-found images
