A committee will be formed to investigate the co-ordination of HK Harbour Fest.

Financial Secretary Henry Tang told legislators today that the committee will report to the Chief Executive, and a final report will be made public.

Committee members will be appointed by the Chief Executive and the Government will announce its membership and responsibilities in the near future.

Noting that it was the Economic Relaunch Working Group's decision to sponsor the event, Mr Tang said that as head of the group he will be held responsible.

The Government will study the committee's report before assessing the performance of the officials involved. Appropriate action will be taken, he stressed.

Mr Tang said the Government never thought to ask the Leisure & Cultural Services Department nor invite other organisations to run the event because the project was proposed by the American Chamber of Commerce, which promised to offer all necessary services.

The organiser is also allowed to make its own decision on the appointment of contractors.

According to AmCham's latest estimation, the Government may need to pay $80 million for the event. Mr Tang hopes they will submit an initial financial report to the Government on completion of the event.

On the distribution of free tickets to some organisations, Mr Tang said the agreement signed by the organiser and sponsors had specified that a certain number of free tickets would be reserved for sponsors.

Mr Tang said the distribution of free tickets is a general practice of the trade, adding that the organiser has agreed not to offer free tickets for the remaining concerts.

According to the contract, the organiser is required to submit detailed accounts of the event to the Government by February 28.