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Stadium. Overseas and local hirers' markets are also being explored with a view to decentralizing the markets. Where necessary, consideration will be given to encourage the hiring of the venues for other various purposes.

Outdoor Activities

The Council has always been sparing no effort in promoting district entertainment events. It is estimated that not less than 600 entertainment programmes would be held during the year, among which, over 200 were organized in collaboration with local organizations, representing a 100 per cent as against that in 85/86. It is thus clear that participation has been enthusiastic and collaboration achieved. Here are some examples:-

(A) A concert held in conjunction with the U.K. Royal Corps Transport Bank at the Council's Centenary Garden.

(B) A concert jointly presented with the Philippines Consulate in H.K. in association with the H.K. Musician Union at Kowloon Park.

(C) The International Dragon Boat Festival held in conjunction with the Hong Kong Tourist Association.

(D) The annual Summer Youth Programmes sponsored by a number of local commercial firms.

(E) The territory-wide Mid-Autumn Festival Lantern Carnivals, outdoor presentations of the Asian Arts Festival, Children's Christmas Carnivals and Spring Lantern Festivals were among the programmes staged by the Council, attracting a total attendance of nearly a million.

Work will continue in the coming year to upgrade the standard of the performances and to identify better venues for indoor and outdoor presentations as well as to promote district collaboration, via managers (entertainment) of the districts, to foster closer relationship with district committees and estate committees.

Review on system of government

A review on the system of government will take place next year. Members of the Council have already put forward their views on it. On the whole, it is considered that the three-tier political system has been functioning well. The Urban Council and the Regional Council are especially important in the provision of municipal services. For elected and appointed members alike, we have tried our very best to serve the people of Hong Kong. If we talk about direct election or indirect election, I think this is a bit backward because as you can see elected and appointed members have worked side by side very cordially. While the district boards, which play a significant role in the political structure, are efficient in advising the government on policy formulation and monitoring the implementation of district policies, thus urging government employees at middle-level to improve their service and efficiency. It is now time to review whether the situation should continue to develop.

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Without question, the Legislative Council, being the first tier of the political system, is important in its role. The tide of democracy is rising. If democracy is blindly pursued on self-imposed schedule without a popular understanding of democracy and before civic education is universally introduced, the consequences will be disastrous. There is a precedent of direct election in H.K. For the Council has had elected Councillors for a history of several decades since the post-war year. The achievement of the Council and the Urban Services Department is obvious to all which can be used for reference. Direct elections should not be implemented rashly. The introduction of direct elections for the Legislative Council in 1988 is too radical. I do not intend to mention politics and economics in the same breath. First of all, everyone should understand that the economic development of Hong Kong is delicate, and prosperity and stability hinge upon political confidence. Why are the policy-makers so eager to take the risk of carrying out political reform? I believe that many people of the industrial and commercial sectors, or foreign investors will also doubt it. Just now, Mr. Peter CHAN has actually supported my opinion.

As the existing government structure does not get prepared to face with political pressure, the hasty introduction of direct elections will bring the political administration into confusion.

The effects the setting up of Central Provident Funds has in Hong Kong

The consultative document has set out in detail the 6 reasons for and 11 reasons against the setting up of Central Provident Funds.

Welfare policies of the government of Hong Kong have all along followed a principle of non-contribution of funds. These policies are now changing with changing circumstances. First the reasons for change have to be fully debated.

Should the government stick to the principle of non-contribution of funds and stipulate the setting up of Central Provident Funds, employers should be able to contribute their shares from their annual profit tax.

In such a free economy as ours, where middle- and small-sized enterprises do not receive safeguards of any sorts, how can the government force employers to provide social welfare which is not in the least contributory to economic development?

From the point of view of a small-sized enterprise, I have the following observations to make-

(1) Most small-sized factories employ unskilled or semi-skilled workers. Demands for their products are mostly short-term and seasonal. In other words, these factories may not be operating regularly and the overtime pay is relatively high. Workers are employed by contract.

(2) The circulating capital of these factories being small, the stipulation for contribution to Central Provident Funds will increase their burdens further.

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