Justice Secretary Paul Lam on Sunday said the government's plan to launch a community mediation pilot scheme will resolve conflicts between neighbours, saving both time and money.

The idea was unveiled in the Policy Address to promote a culture of mediation through the training of community workers.

Speaking on a TVB programme, Lam said the pilot scheme can help settle disputes in people's daily lives, such as noise and water leaks.

"In court, there's only one winner, it's like a life-or-death situation, which sometimes isn't the best solution. Both sides might have some valid points, and it's rarely a case of one side being entirely right and the other entirely wrong," he said.

"Mediation saves time while court proceedings are a lengthy process, with significant psychological pressures."

As part of efforts to promote mediation to resolve conflicts, the justice chief said last week the government will incorporate mediation clauses in all future government contracts, saying it would save time and reduce costs for all parties involved.