The economy had performed better and our GDP is back on a growth track. The Government was still cautious though and senior officials remained low key in breaking the news to the world. In any case, it is still not worth blowing any trumpet when compared with the faster recovery rates of many other Asian economies. Also quietly but surely, the Government speeded up plans to list the Mass Transit Railway Corporation and its own brand of unit trust in a Trackers Fund. These moves will bring billions to the Government's coffer which would help to balance the budget this year and possibly the next.

Short of good stories, the media made a big fuss of the Inland Revenue Commissioner's case. Accountants were given a short break though while the media's own self regulation and ethics had been put on the firing line. It showed that negative public sentiments now spare no profession from intense scrutiny. All the more reason for us to stay objective and very sensitive to public demands when tackling the controversial Securities and Futures Bill.

The Committee drew many practical conclusions to help the Administration focus on the monitoring of public works, introducing good work practices and internal control, highlighting areas which are particularly vulnerable to possible corruption opportunities and the pursuit of privatisation and outsourcing. The Committee was particularly critical of the Administration for (1) allowing more than 20 years to elapse, while none of the five Central District footbridges, planned since the 1970s had been built; and (2) the laxed attitude in enforcing the law against obscene and indecent articles.

The widely publicised hearing of the China Light and Power case is continuing and preparatory works have already begun for PAC Report No. 33.

The second meeting was a special joint meeting with the Panel on Transport on the 4 October 1999 to receive a briefing on the legislative proposal to privatise the Mass Transit Railway Corporation.

A proposed list of future agenda items is attached as Appendix II for reference.

The Panel also focused on the CSSA issue, such as the Active Employment Assistance Programme, CSSA - review of requirements of disregarded earnings and the follow-up discussion on effect of tightening of CSSA on the elderly as well as the disabled and single parent families.

A Joint meeting with Home Affairs was held to discuss the effect of the proposal of "one school social worker in each secondary school" on youth services.

TD of HKSA was kept informed of progress on all bills on a weekly basis. The 1998/99 legislative programme dated 13 July is attached as Appendix III.

It was passed without controversy on 7 July 1999.

I proposed an amendment to alter the electorates of the Social Welfare Functional Constituency, which was narrowly defeated. However, the particular amendment had raised hot constitutional issues which was widely reported and there were much debates amongst political analyst of its Basic Law (Article 74) implications. In the meantime, the Secretary for Constitutional Affairs had already indicated to me that the Government will be moving the Bill for me again in October as a Government Bill.

This Bill is very controversial but represent a significant step of the Government in liberalising the telecommunications market. HKSA had made a submission which is being followed up.

A series of 4 meetings were held and I had forcefully put the case of HKSA's very lengthy submission. I sensed an uphill battle with the major political parties all indicating support of the broad principles of the draft bill. However, the Subcommittee was persuaded to give HKSA some time to sort out the matter with the Administration and we should now be back on the negotiation table. There is no more time to loose and I have suggested a few lines to take to Mr. Nick Etches, our Task Force Chairman.

The District Board election to be held on 28 November 1999 is heating up. The popularity of different political parties will again be tested. The Administration is likely to face a harder time than usual as political parties will be even more picky in order to attract publicity.

With some of the energy of political parties channelled to the District Board elections, the rest of us will need to concentrate on the scrutiny of the many important Bills coming on stream.