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THE ECONOMY
Business registration fees, which form part of the revenue from fees and charges, are also collected by the Inland Revenue Department. Business registration is compulsory for companies incorporated in Hong Kong, overseas companies with a place of business in Hong Kong, and businesses operating in Hong Kong, except those run by charitable institutions and licensed hawkers. The annual registration fee is $550, but exemption from payment is granted where the business is small. Every branch of a business is required to obtain a branch registration certificate and pay an annual registration fee of $15. In addition, a levy of $100, payable to the Protection of Wages on Insolvency Fund, is imposed on each business registration certificate issued to a business or its branch.
Audit of Public Accounts
The Director of Audit, supported by the Audit Department, audits all the government's accounts. He also audits the accounts of the Urban Council, the Regional Council, the Vocational Training Council and the Housing Authority, and of more than 50 statutory and non-statutory funds and other public bodies. In addition he is responsible for reviewing the finances of the operations of government-subvented organisations in Hong Kong to ensure that the subventions are put to proper and effective use. The Audit Department's work includes value-for-money audits, which are essentially examinations of the economy, efficiency and effectiveness with which any party under audit has been discharging its functions. The director's appointment, tenure of office, duties and powers are set out in the Audit Ordinance, and in guidelines tabled in the Legislative Council by the Chairman of the Public Accounts Committee on November 19, 1986. The Audit Ordinance provides that the director shall not be subject to the direction or control of any other person or authority.
Under the terms of the Audit Ordinance the Director of Audit's report on the annual accounts of the government is submitted to the Governor as President of the Legislative Council for tabling. It is then referred to the Public Accounts Committee, comprising a chairman and six members, all of whom are members of the Legislative Council. The committee may call any public officer or other person concerned to give information and explanations on any relevant matter and to produce any documents and records it may require. The committee holds its meetings in public except where the committee is of the opinion that the public interest requires confidentiality. The report by the Public Accounts Committee on the Director of Audit's report is also tabled in the Legislative Council. Both are copied to the Secretary of State. Since 1988, in response to a recommendation made by the committee itself, the annual cycle of the Public Accounts Committee has been split into two phases, each involving the examination of a report by the Director of Audit and a subsequent response by the committee. The Director of Audit's first report is on the annual accounts of the government and the results of value for money audits whilst the second report is on the results of value for money audits only.
Science and Technology
As Hong Kong's industry, economy and society become more complex and sophisticated, there is a need to pay more attention to the part that modern science and technology can play in furthering development. The government believes that the ability to adopt technological advances and new applications is critical to the prosperity of an international trading city such as Hong Kong.
To ensure that Hong Kong keeps abreast of the rapid technological changes and that the best advice is obtained in this area, the Governor appointed a Committee on Science and
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