This puts Mr. Tsang's comments above in perspective:
http://www.iht.com/articles/2006/11/.../edbowring.php
Why the inaction by an administration that claims to be decisive? It is partly the inertia of a bureaucracy unwilling to admit its own failings. But more important are the links between the administration and the business interests that resist effective action. These are the businessmen who dominate the political structure and provide the chief executive with much of his political support. Their companies offer highly paid cushy jobs to retiring senior officials.
(...)
The bottom line of Hong Kong's situation is that the chief executive is beholden to Beijing when it comes to politics, and on other matters, to a local elite. There is a direct connection between the lack of representative government and inertia in fighting pollution.