HONG KONG LEGISLATIVE COUNCIL
18 October 1989
香港立法局
一九八九年十月十八日
45
Sir, I move that the debate on this motion be now adjourned.
Question on the adjournment proposed, put and agreed to.
HONG KONG TOURIST ASSOCIATION (AMENDMENT) BILL 1989
THE SECRETARY FOR ECONOMIC SERVICES moved the Second Reading of: "A Bill to amend the Hong Kong Tourist Association Ordinance."
She said: Sir, I move that the Hong Kong Tourist Association (Amendment) Bill 1989 be read a Second time.
The Hong Kong Tourist Association is a statutory body tasked with promoting Hong Kong as a tourist destination. Between 1966 and 1987 the level of subvention provided by the Government to the association was linked to the yield from the Hotel Accommodation Tax, which is a levy of 5% on hotel room rates charged. This meant that the level of subvention was not necessarily related to the actual needs of the association.
When considering the 1986-7 Report of the Director of Audit, the Public Accounts Committee of this Council expressed concern about the hypothecation of Hotel Accommodation Tax in this way. It also recommended that the Hong Kong Tourist Association Ordinance be amended to require the association to submit for the Government's approval its annual budget and programme of activities. Such arrangements would be similar to those for other comparable subvented organizations such as the Trade Development Council.
In early 1988, agreement was reached with the Tourist Association for the link between the level of subvention and the Hotel Accommodation Tax to be severed. Starting in the 1988-89 financial year, administrative arrangements were introduced for the association to submit its budget and programme of activities for approval by Government and for a grant to be made on the basis of the approved budget. Earlier this year, the association also agreed that the new subvention arrangements should be given legislative effect by amending the Ordinance.
This amendment Bill provides for the Legislative Council to vote funds for the subvention of the association, and for the association to submit its budget and programme of activities to the Governor for approval. It also provides for the board of the Tourist Association to observe certain prescribed accounting procedures. These new subvention and budgetary arrangements will not in any