Bad air spoils Hong Kong's prospects

HONG KONG - Todd Prado blames Hong Kong's air pollution for his decision to move to Singapore at the end of this year.

He keeps his job as head of Asian trading for Janus Capital Management and his children, aged three and nine months, keep their health.

"I like Hong Kong - it's a great city, very dynamic," said Prado, 38, who was recruited from Fidelity Investments in Tokyo six years ago.

"But the fact that my kids and I have to strap on a gas mask every time we go outside is appalling."

Hong Kong's Government is facing mounting public criticism over the air quality because of emissions from power plants and factories inside its territory and across the border in mainland China.

The University of Hong Kong calculates that foul air cost Hong Kong US$300 million ($488 million) in medical bills and lost productivity last year, a 3.8 per cent increase from 1995. With more than one day in four now marred by poor visibility, the city soon may be counting the cost of lost talent and investment, says Jack Maisano, president of the American Chamber of Commerce in Hong Kong.

"We're close to a tipping point where the negative investment impact is going to be measurable," said Maisano, 58. "Everybody knows someone who is leaving or has left, or is intending to leave."

Harry O'Neill, managing director in Hong Kong of Whitney Group (Asia), which specialises in recruiting financial services executives, says residents are not the only people affected by air quality. Potential employees are turning down job offers in Hong Kong because of health fears.

"We've brought in quite a few people this year but it's definitely a major consideration and we certainly have rejections," said O'Neill, 48, a resident of Hong Kong for 13 years.

The university has found Hong Kong's air contains almost three times more particles of soot and other pollutants than air in New York and Paris, and more than double the amount in London. In Los Angeles, the most polluted US city, people breathe in 29 per cent fewer such particles.

Anthony Hedley, a doctor and professor of community medicine at the university, said living in Hong Kong was worse than living at a Formula One race track.

"We have the worst pollution of all the socio-economic developed cities of our type in the world," said Hedley, 65.

Rob Morrison, chief executive officer of CLSA, said the situation might be even worse because Hong Kong's Government did not make public some of the most dangerous emissions.

The Environmental Protection Department reports the amount of large, so-called respirable suspended particulates in the air rather than fine ones. In general, the smaller the particulates, the deeper they penetrate into the lungs.

Health effects range from respiratory irritation to lung-tissue damage that may lead to heart attacks, strokes and cancer.

Some progress is being made. The city's 18,000 taxis completed a switch to cleaner liquefied petroleum gas from diesel fuel in 2003. Unleaded petrol has lightened the haze to white from brown.

Still, the number of hours when it was not possible to see further than 8km increased last year to 2438, the equivalent of 102 days, from 960 hours in 1997. The meteorological office said the count excluded hours when fog, mist or rain were present.

Dirtiest city

* Hong Kong's air contains almost three times more particles of soot and other pollutants than air in New York and Paris.

* It is more than double the amount in London.

- BLOOMBERG