Ning Hanhao: Investing 10 billion into Hong Shui Qiao Industrial Park is worthwhile; the government will not easily inject more funds again.

The national “15th Five-Year Plan” outline clearly supports Hong Kong to accelerate the development of the Northern Metropolis Area. When answering an interview with RTHK, the Secretary for Development, Ning Hanhao, said that having the Northern Metropolis formally written into the national plan has a major promoting effect, and will be even more helpful when making special arrangements for negotiating cross-border people and goods flow, data flow, and capital flow for the Northern Metropolis. She emphasized that the government’s injection of 10 billion yuan into the industrial park company for the Northern Metropolis is a very worthwhile investment; she does not think of it as the government “putting in the chicken and the enterprises putting in the soy sauce,” and she also said she has expectations for the industrial park company, and the government will not easily inject more funds.

The Hong Shui Qiao Industrial Park Company, which is expected to begin operations by mid this year, will be responsible for developing and operating 23 hectares of industrial land. The government will seek an appropriation from the Legislative Council to inject 10 billion yuan into the Hong Shui Qiao Industrial Park Company as initial funding. Ning Hanhao said that the initial funding is only meant to develop 8 hectares of land; the remaining 15 hectares will need to rely on the industrial park company—for example, by identifying and developing with cooperation partners, or by issuing bonds or using proceeds generated from the land to raise funds. Therefore, she does not think this is the government “putting in the chicken,” and stressed that the government’s injection of 10 billion yuan is a launchpad, which, after several years, can bring about nearly 4 billion yuan in annual economic returns, and then increase to 11 billion yuan per year.

The government requires the Hong Shui Qiao Industrial Park Company to achieve financial self-sufficiency. When asked about similar situations for statutory bodies that are partly required to be self-financing, such as the Urban Renewal Authority and Ocean Park, which have also been asked by the government to increase financial support, she was asked whether the Northern Metropolis’s zone companies would face similar circumstances in the future. Ning Hanhao said she has expectations for the industrial park company, and the government will not easily inject more funds, but it will not go to the extreme of stating “don’t ask anymore in the future,” because the economic environment will change. If in the future development goes well and more capital is needed to “grow stronger and bigger,” it will be needed accordingly, and there is no need to close the door. She emphasized that the government will act in response to changing circumstances.

She said that the Hong Shui Qiao Industrial Park Company has five board members who are bureau directors of policy departments. They will set performance targets (KPI) for the park company; the company must submit reports every year, and it is also monitored by the Legislative Council. She added that the industrial park company operates on a market model, needs flexibility, and it would not be appropriate to include it under the Audit Commission’s value-for-money supervision.