Chief Executive Tung Chee-hwa yesterday called on society to shift its attention back to the economy and away from political debate.

Recent disputes over Hong Kong's political reform have slowed down development in other areas such as the economy and people's livelihoods, he told a special question-and-answer session in the Legislative Council (LegCo) yesterday.

It was the first such session since the country's top legislature ruled out universal suffrage in Hong Kong in 2007/2008.

"We have been focusing our attention on political development and as a result other things have been delayed. We should focus on the economy, finding new opportunities for growth," Tung said.

"I firmly believe that the economic issue remains the prime priority for most citizens. The biggest expectation of our people on the government is to improve Hong Kong's economy."

In response to a question by Ambrose Lau on how the government would allay worries of credit-rating agencies on Hong Kong's political situation, Tung admitted that recent remarks by Standard & Poor's had given Hong Kong a "yellow light" warning. The government would handle the issue very cautiously, he said.

Standard & Poor's said on Wednesday that the city's current political climate could restrict the government's efforts to introduce discretionary measures, especially on tax reform.

To allay worries and shore up international investors' confidence, Tung said the government would stick to prudent management of public finances.

"We will firmly adhere to the principle of fiscal prudence. We believe we will ultimately attain the goal of eliminating the deficit in 2008-09," he said.

He added that Financial Secretary Henry Tang would strengthen communication with credit-ratings agencies to ease their concerns.

On the ruling by the National People's Congress Standing Committee on Hong Kong's electoral arrangements, Tung said it safeguarded the collective interests of Hong Kong and the country as a whole, and laid a new foundation for the former's constitutional development.

Out of the 17 legislators who asked Tung questions during the 75-minute session, eight focused on how the government would propel constitutional development.

Albert Ho of the Democratic Party questioned whether Tung had sold out the interests of Hong Kong people in this regard.

"I don't understand what you mean," Tung said. "What the SAR government is doing is all for the long-term interests of Hong Kong."

(HK Edition 05/07/2004 page1)