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OFFICIAL REPORT OF PROCEEDINGS
Thursday, 31st October 1974
The Council met at half past two o'clock
PRESENT
HIS EXCELLENCY THE GOVERNOR (PRESIDENT)
SIR CRAWFORD MURRAY MACLEHOSE, KCMG, MBE
THE HONOURABLE THE COLONIAL SECRETARY
MR DENYS TUDOR EMIL ROBERTS, CBE, QC, JP
THE HONOURABLE THE FINANCIAL SECRETARY
MR CHARLES PHILIP HADDON-CAVE, CMG, JP
THE HONOURABLE THE ATTORNEY GENERAL
MR JOHN WILLIAM DIXON HOBLEY, QC, JP
THE HONOURABLE THE SECRETARY FOR HOME AFFAIRS
MR DENIS CAMPBELL BRAY, JP
THE HONOURABLE JAMES JEAVONS ROBSON, CBE, JP
SECRETARY FOR THE ENVIRONMENT
DR THE HONOURABLE GERALD HUGH CHOA, CBE, JP
DIRECT OF MEDICAL AND HEALTH SERVICES
THE HONOURABLE IAN MACDONALD LIGHTBODY, CMG, JP
SECRETARY FOR HOUSING
THE HONOURABLE DAVID HAROLD JORDAN, MBE, JP
DIRECTOR OF COMMERCE AND INDUSTRY
THE HONOURABLE LI FOOK-KOW, JP
SECRETARY FOR SOCIAL SERVICES
THE HONOURABLE DAVID AKERS-JONES, JP
SECRETARY FOR THE NEW TERRITORIES
THE HONOURABLE LEWIS MERVYN DAVIES, CMG, OBE, JP
SECRETARY FOR SECURITY
THE HONOURABLE KENNETH WALLIS JOSEPH TOPLEY, JP
DIRECTOR OF EDUCATION
THE HONOURABLE IAN ROBERT PRICE, TD, JP
COMMISSIONER FOR LABOUR
THE HONOURABLE WILLIAM COLLINS BELL, JP
DIRECTOR OF PUBLIC WORKS (Acting)
DR THE HONOURABLE CHUNG SZE-YUEN, OBE, JP
THE HONOURABLE WILSON WANG TZE-SAM, OBE, JP
THE HONOURABLE LEE QUO-WEI, OBE, JP
THE HONOURABLE OSWALD, VICTOR CHEUNG, OBE, QC, JP
THE HONOURABLE ROGERIO HYNDMAN LOBO, ORE, JP
THE HONOURABLE MRS CATHERINE JOYCE SYMONS, OBE, JP
THE HONOURABLE PETER GORDON WILLIAMS, JP
THE HONOURABLE JAMES WU MAN-HON, OBE, JP
THE HONOURABLE HILTON CHEONG-LEEN, OBE, JP
THE HONOURABLE LI FOOK-WO, OBE, JP
THE HONOURABLE JOHN HENRY BREMRIDGE, JP
DR THE HONOURABLE HARRY FANG SIN-YANG, OBE, JP
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THE HONOURABLE MRS KWAN KO SIU-WAH, MBE, JP
THE HONOURABLE LO TAK-SHING, JP
THE HONOURABLE FRANCIS YUAN-HAO TIEN, OBE, JP
IN ATTENDANCE
THE CLERK TO THE LEGISLATIVE COUNCIL
MR KENNETH HARRY WHEELER
Motion
Address of thanks to His Excellency the Governor
Resumption of debate on motion (30th October 1974)
MR WU: —Sir, I believe I am the happiest man with your address in this Council two weeks ago. I had during the past two years spoken in this Council advocating the setting up of industrial parks for land-intensive high technology industries, and the elimination of undue bureaucratic hindrance to private land development. I am therefore most gratified that you, Sir, have taken a personal interest in the persuance of these two vital moves at this present stage of our economy. I hope that industrialists, financiers, developers in Hong Kong and from abroad alike will be encouraged to come forth to participate and to capitalize on the opportunities offered for the benefit of all concerned. I would like now to elaborate further on these two issues.
Industrial Land
Investments no doubt are affected by business climate but it has been proven time and again, and is on record in many books on management, that projects well planned and undertaken during recession periods invariably turn out to be the most profitable. A casual observation of the big fortunes made in Hong Kong in the last ten years and the many failures that resulted in "riding the crest" will serve to prove my point. For business cycles being what they are, booms and busts occur, and speculation in the short term by the uninitiated is likely to bring lamentable results, as many are still licking their wounds.
I fully realize the perils of economic forecasting at these uncertain times. I tend however to accept the optimistic view of well-informed economists and industrialists of world fame that the world-wide recession would begin to turn round by the latter part of 1975. The nations
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of the world today are more interdependent and the oil producing countries are not likely to hold out for too long as they have to rely on developed nations for advanced technology, industrial out-put and agricultural abundance to supply their needs. Hong Kong exports over 70% of its products to these industrialised nations, and indications are that with their highly inflated wages and depleting inventories, the demand for our goods would resume and grow even greater. I am so glad to hear that Government is to take immediate action to implement the industrial estate scheme, and venture to give some suggestions from the user's point of view for consideration.
I am agreeable to the setting up of a corporation to handle the details but feel that this corporation should mainly be concerned in the decision of lease conditions and the subsequent enforcement of same, the processing of applications, the general layout of the estates, the road and sewage systems, and provision for installation of utilities. The actual site formation and construction work to the corporation's specifications should be undertaken by the user in the usual manner. Approval for applications should be soonest possible so that the users can get on with their detail planning, and this should be possible even prior to the physical possession of the site being delivered. In this manner very valuable lead time can be saved.
I would also suggest that an area should be allocated in industrial estates particularly those in remote locations for housing workers. A realistic premium or rental for this land can be charged so that the factories can be encouraged to provide quarters for its workers at a specified rate of return for their additional investment which would augment Government's housing programmes.
I understand that the construction cost of such quarters would be about $50 per square foot of floor area, making it very attractive to workers and industrialists alike.
I fully support my honourable Friend Mr LEE's proposal for setting up an industrial development bank. It will be remembered that this was urged by industrial bodies such as the CMA, and now that it comes from a prominent banker, it should be worth a closer study. Indeed I believe we are entering our second era of industrialization, and more resources at home and from abroad should be channelled for long term finance which is now almost non-existent.
Building and Housing
Sir, the public particularly welcome your direction to streamline procedures to ensure swifter transaction in land exchanges, lease modification
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and building permits. This is long overdue as at present it takes two to three years to obtain such approval. Also, the land use pattern of an area should be publicized at the earliest possible moment to stop speculation. All these will help to reduce the chances for corruption.
My respected colleague, Dr CHUNG, has blamed the high cost of construction in Hong Kong as being due to the lack of competition which our industrial exports face in the open world market. I have said that the problem could more likely be that the contracting and piece-work systems practised here are not conducive to innovations in methods, not to mention the division of work between architects, engineers and builders, although this latter practice is highly desirable in more respects than one, and any difficulty could have been resolved by consultation and close co-operation. With projects getting larger and repetitive in the housing field, the need for rationalization and mechanization is more apparent. In the manufacturing sense, an individual building can be compared to an expensive hand-made prototype. Subsequent mass-production that justifies the tooling and uses it would greatly reduce the building cost and the time of completion. Our public housing projects and large scale private housing development should benefit most from such a concept. With the increasing rents for new public housing flats as a direct result of increased building costs, and with reports of brisk sales of private flats newly completed by improved methods at competitive prices, it should capture the attention of those concerned in the public and private sector in their business of providing acceptable housing conditions at minimum costs and simultaneously providing job opportunities. Elsewhere as in the United States, increased housing starts seldom fail to trigger booms, and you, Sir, have wisely given the right direction to stimulate the re-growth of this important industry that has been stifled.
Education
Much wisdom has been shed on the recent White Paper and, in an issue of such importance to every Hong Kong family, it is difficult to maintain an objective, impassive and balanced view of the many implications which can best be assessed in such manner. Having participated in the UMELCO group studying the Green Paper and later this White Paper and the avalanche of public comments, I wish to lend support to the paper and would like to speak on some of the controversial issues.
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The Prevocational and Technical Schools
Dr CHUNG has very ably presented the views independently arrive at by the industrial members of the ad hoc group and they have set higher sights then just calling for "factory fodder". Rather, we are more concerned with the quality and suitability of the training. It is obviously unsafe and unthinkable that children at the tender age of 12 to 14 should be exposed to and trained on tools and machines of increasing complexity and sophistication as are used in industry and business today, not to say that it would be grossly unfair to destine a child's future to manual tasks with little hope of advanced training due to an inadequate general education. A junior secondary school education is at least a vast improvement that could enable the brighter youths to proceed to a junior technician course in the technical institutes. I understand that instructors and teachers are now being trained for these institutes, and I cannot over-emphasize the importance of these trainees being brought to constant contact with modern factories of plants in, Hong Kong, in addition to technical journals and literature so as to expose them to the latest trends and development. In my opinion lecturers in special courses who have not come near a modern factory in the trade for 5 or 10 years ought to be re-trained, and only up-to-date text and machines should be used for teaching, with more courses related to manufacturing.
Examinations
It has to be accepted that these as now practised are necessary evils, and I am glad to hear that the Education Department is setting up special studies to determine the extent and scope of examinations to bring about fuller education. We must also not forget that straight promotions are known to cause deteriorating standards, and that places in our universities and Polytechnic awarded strictly on individual merits by examination have given opportunities to deserving youths from poorer families. These places at moderate fees or with loan or remission now cost the tax-payers $25,000 a year at the universities and $15,000 a year at the Polytechnic. These places were once the confines of students from better to-do families, many of them now having to go overseas.
Language of Teaching
I confirm UMELCO's unanimous support for the proposed approach regarding language of teaching as outlined in the White Paper. Whilst there is general agreement in the desirability of teaching with the mother tongue, we accept the Education Department's expedient and
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the interim measure of leaving it to the schools to choose. In the case that English be chosen and as practically all the teachers are Chinese, I do not see any harm for them to explain the English text and lessons to the students in Chinese so as to help comprehension and perhaps indeed get the good of both worlds. Even a reading knowledge of English will prove to be of tremendous value in self-development by the less fortunate having to leave school early. Impeccable English or Chinese are of course desirable but I maintain that such can only be achieved by constant daily use and exposure without which even fluency is a problem. In recent years, I see the vast improvements already in the Chinese documents and communications from Government offices and large foreign firms. Of greater importance is that -the English and Chinese taught as such in schools should bear more relevence to every day use to develop the students' power of communication, leaving the literary pursuits to talented students at higher forms. We know that to be perfectly bilingual is difficult if not impossible.
Perhaps it is a consolation to know that many Japanese companies and manufacturers get by and do big business with less than acceptable English.
Crime
Crime in Hong Kong is inseparable from corruption and recent exposures in court cases seem to confirm this belief. The excellent work of the ICAC under Mr CATER, Mr PRENDERGAST and their able lieutenants has brought new hopes to a rapidly demoralized and insecure community and helps to restore justice, decency and confidence. I therefore like to think that performance objectives can take on another broader meaning in public service if, for instance the ICAC, the Royal Hong Kong Police Force and the other security agencies could succeed in clamping down on illegal gambling and off-course bookies that exploit the human weakness of the working man and reduce them to constant poverty, on sex-peddlers and hoodlums who destroy the futures and lives of innocent teenage girls, on triads and toughs who make our streets unsafe to walk and on drug trafficking to eliminate the bad image of Hong Kong as the only large Chinese community (as compared with China, Taiwan and Singapore) where drug peddling is not eliminated or effectively controlled.
Let us therefore say that if illegal gambling, drug and sex-peddling, extortion and robberies frequently occur in particular places and are not put an end to, we shall know that either corruption, laxity or incompetence
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exists. That, I suppose, reflects to some extent the performance required of our police superintendents and CID chiefs, and the measure of their men.
If I am, over-simplifying matters, it has to be remembered that the tax paying public would demand no less than such performance if they are to enjoy the quality of life promised to them.
I am also deeply concerned that the present salaries and fringes offered particularly in regard to housing cannot attract qualified Chinese to serve as magistrates. I am sure this difficulty can be resolved, as it should be, with minimum delay. I have every respect for our expatriate magistrates but in a case where Chinese is a part of the evidence, they could be at a serious disadvantage with any barrier in language and a less than correct insight of the native background and social conditions. Judgment and indeed sentences could have been compromised to the detriment of the deterrent power of the law.
Central Provident Fund
I fully support the proposal for the establishment of a central provident fund for the working people who have been contributing so much to our growth and prosperity. I had mentioned the idea as practised elsewhere to our former Financial Secretary. I like to see as well provisions for contribution by our workers to encourage thrift and savings, a traditional Chinese virtue so much eroded yet so essential for capital formation and to help fight inflationary pressures, as I suggested in this Council last year.
With these remarks, Sir, I have pleasure to second the motion before council.
MR CHEONG-LEEN: —Sir, may I congratulate you on a speech that is both lucid and statesman-like. It is not an over-optimistic speech that seeks to raise false hopes or to gloss over major community problems. Instead, it is the speech of the wise leader, urging the community not to overlook their past endeavours, but to face the future with patience, strength and cautious hope.
It is timely therefore to take stock of where we stand, to consolidate the progress we have achieved so far, and not to venture out yet into too many new or extensive programmes.
The Government of Hong Kong can no longer be labelled a “laissez faire" Government. It is a Government which consistently
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subscribes to the principle of allowing its citizens to carry on their daily affairs with minimum interference and red tape.
It is a principle which fits in well into the philosophy of Hong Kong people, who are independent minded, hard-working, and willing to take the right kind of risks that can in the long run improve our social and economic foundation. I would go so far as to say that we in Hong Kong portray the progressive society, in continued search for a community identity of our own, and appealing to all our citizens, both young and old, to participate in this challenging endeavour.
What has assisted in the fostering of a community identity has been the various long-term programmes on housing, education, medical and health services, social welfare, crime prevention and transport that Government is now or will soon be embarking upon.
As a firm believer in community-building through sound long-term social and economic programmes, I shall make reference today to some of these programmes mentioned in Your Excellency's address on October 16th.
Crime
As is now well-recognized by Government, violent crime is still one of the most worrisome aspects affecting the daily lives of Hong Kong people. Progress has been achieved in recruiting more policemen, improving their image with the public, and in arousing active cooperation between police and the public in stamping out crime.
Since the public is in a more receptive mood than ever before to co-operate with Government in fighting crime, it would be timely now for a three-year programme to be prepared to set up mutual aid committees in the approximate 5,000 large multi-storey buildings which do not yet have any management committees. This would require the recruitment and training of more community organizers and other senior staff in the Home Affairs Department as soon as possible. I would regard this three-year programme as one of the highest priority which should not be allowed to drag because of financial constraints imposed upon the programme.
If necessary, the Royal Hong Kong Jockey Club could be asked to lend its support in financing the recruitment and training of community organizers so that the programme can be completed in three years. Within such a time-scale, it should be possible for the Home Affairs Department to have the necessary supervisory personnel to support, guide and control the enlarged mutual aid committee movement.
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The mutual aid committees can be used not only to fight violent crime. They are most useful in the "Keep Hong Kong Clean" campaign, in improving public health and sanitation, and in planning recreational activities for the, residents, both young and old, of multi-storey buildings. They could be equally useful in Government's efforts to eliminate corruption, narcotics peddling, and other non-social activities that are now rampant in a great number of multi-storey buildings. In addition, they would generate a firmer civic spirit at the grass roots level of our community and act as bridges of understanding and co operation between Government and the people. The end result would be a more visible sense of community belonging and responsibility among our citizens.
As Your Excellency has correctly pointed out in your speech, a new social process is being forged through more direct consultation and participation between Government departments and the public, which must of necessity soon expand to subjects other than cleanliness and crime. Let us move on ahead while the going is good.
Public Housing
In the fight against crime and the improvement of social conditions, the development of our Ten Year Public Housing Programme has a vital role to play. Crime breeds in overcrowded and poor housing conditions. The top priority that is being given to building new housing estates and new towns in the New Territories has therefore the support of the community. In this regard, I would urge Government to set up a programme to sell on the instalment plan some of its existing or preferably future housing units to those who qualify for public housing and can afford to pay.
There is an imperative need to provide a larger cash flow on the Housing Authority's building programme so that Government can live up to the community's expectation in providing decent homes for another 1.8 million persons in the next 10 years. Furthermore, it cannot be repeated too often that the process of home-ownership is an integral part of creating a more permanent and deep-rooted community identity. Government should envisage a home ownership scheme of about 10% down payment, with instalment terms spread over a period of between 15 to 20 years. As more and more money is invested in the New Towns expansion programme by private enterprise, both local and overseas, the Government's development planning period may have to be extended to 15 years and beyond. This will be a positive sign of our faith in the future of Hong Kong.
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[MR CHEONG-LEEN] Motion
Another aspect of housing which deserves to be looked into by Government with a fresh and critical eye has to do with "housing black-spots" or slum districts in the urban areas where Hong Kong born or long-term residents have been living for too long in overcrowded conditions in old slum buildings. There are quite a number of such "black-spots" which are to be found in the Western District, in Yau Ma Tei, in Mong Kok and perhaps in one or two other districts. Since it will take many years before urban renewal plans can be put into effect in such districts, it would seem to be a practical approach if such "black-spots" could be pinpointed and the Housing Authority be empowered to buy over such areas at market values current for the whole district. A scheme could then be worked out whereby the Housing Authority would resettle the residents from the "black-spots", while the acquired land could either be sold outright or developed jointly with private developers to put up domestic housing and commercial complexes on reasonable standards to be agreed upon in advance. Such an approach if organized along practical lines should help to provide more domestic accommodation of an acceptable standard in areas where they are needed most, as well as to give an opportunity to private enterprise to show what it can do to promote the community interest and earn a fair and just profit margin in the process.
The time for speculative housing development and get-rich-quick overnight schemes is now over, and Government will have to take the lead in guiding and co-operating with private enterprise in clearing up the worst of the housing "black-spots" within the urban areas in a shorter time than hitherto envisaged. The clearing up of these housing "black-spots" ought to be a scheme requiring quick attention and should proceed with maximum speed irrespective of whether or not Urban Improvement Schemes have been prepared or approved for any of the districts in question.
Related to the expansion of public housing in the New Territories is the question of finding more land for industrial growth. It has recently been mooted in the press that Tai Po, Yuen Long and Junk Day be investigated as potential sites for industrial estates, and that an Industrial Estates Corporation be formed to expedite the process of building such estates. I am pleased to see that Government has at last woken up to the realization that we must act more quickly in offering land to medium-sized and large-sized companies, provided higher technology is introduced and new industries are brought in which are more capital intensive, thus using fewer but more qualified production personnel.
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The future points to Hong Kong becoming increasingly a capital-intensive industrial city where in a few more years our labour force will be required to have a stronger technological background which would enable them to obtain higher wages but giving at the same time a better level of productivity. This is already the case in the more economically stable western countries such as West Germany, the United States, Japan and Australia. This fact should not be forgotten if and when an Industrial Estates Corporation is set up, and I hope that the administrative machinery will be streamlined to
(a) provide industrial land for new capital intensive industries on terms that are special but fair and reasonable by Hong Kong standards; and
(b) build new industrial estates in the New Territories in order to attract factories to move out from congested urban areas and from multi storey buildings which were designed only for domestic and commercial use, but not industrial use.
The vital thing about the setting up of an Industrial Estates Corporation is that it could stimulate and assist in the provision of land and factory space for new types of industry, particularly capital-intensive industry, in the quickest time possible, and the time factor is of the essence today.
Education
The introduction of new industries will undoubtedly require more trained personnel with new skills and a higher general standard of education. For this and other reasons, all members of the community should support the general aim of the White Paper on Education, which is to provide a 3-year secondary course for all in the shortest time possible. As stated in the White Paper, this could quite likely take place in 1979. I realize that there will be differing views on how this aim can be achieved. There will be arguments on how much of the curriculum should be practical/technical subjects, about expanding teacher training to ensure that quality does not suffer, about the language of instruction, (whether it be Chinese or English), about the date when the SSEE should be abolished, and so on.
The Education Green Paper which was tabled in this Council on 31st October last year proposed subsidized education by 1981 for only 80% of the 12- 14 age group and for 36% of the 12-16 age group. Since then many comments and criticisms were received by Government, and now one year later we have before us this new Education White Paper which calls for nine years of subsidized general education
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for all children, and places for 100% of the 12-14 age group plus 40% of the 15- 16 age group by September 1979. It is furthermore proposed that after May 1978 there will be no more SSEE. I suppose that some members of the community will feel that these proposals do not go far enough, since educational developments in other parts of the world are far ahead of Hong Kong. For example, in the city of Adelaide, Australia, where I recently spent a few days, education is completely free right up to the university level. Also, with a population of 850,000, Adelaide has more university students than the combined enrolment of our two local universities.
I would think the time for discussion and argument has now reached the cut off point, and it is time for all of us to focus our minds on the ultimate aim of the White Paper, and set ourselves to the task. The proposals in the White Paper while not perfect are related in a pragmatic way to the social and economic needs and future development of Hong Kong.
In expressing general support for the White Paper, I would suggest that the Board of Education consider changing the name of the Junior Certificate Examination to General Secondary Certificate Examination. The present Form Ⅴ Examination would then become the Senior Secondary Certificate Examination. When at a later date we are in a position to provide five years of secondary education for all children, the Junior Secondary Certificate Examination would then be abolished and the examination at Form Ⅴ level would simply become known as the Secondary Certificate Examination. In making this suggestion I am thinking more than anything else of the psychological attrition or mental anguish which a child will suffer when he or she finds that he has been weeded out from having a subsidized secondary education after Form Ⅲ. We hope to abolish by 1978 the SSEE, to be replaced by a school leaving certificate for those completing 9 years of general education. Let us make sure that the Form Ⅲ examination, which will be a general examination for all students, will implant the minimum possible inhibitions or complexes in the minds of those who cannot continue on into Forms Ⅳ and Ⅴ. Within the next few years we should be hopefully reviewing the White Paper and planning for five years of secondary education, appropriate to the economic and social requirements of Hong Kong, for all our students.
One of the suggestion I wish to put forward for consideration by the Board of Education has to do with those students who fail the Form Ⅲ examination after 9 years of general education. Provision
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should be made for such students to repeat the examination even up to the age of 15 or 16.
A final point I would like to make concerns educational television. I think Government ought to start drafting a ten year development programme for television education not only in primary education but also in secondary and tertiary education. Perhaps a paper on this subject could be prepared for public discussion within the next 12 to 18 months.
The Economy
With regard to our economic prospects, let me say that I subscribe to the view that while the chances for a quick upturn in Hong Kong's economy do not look too bright, yet the long-term future is sound and most favourable. As Your Excellency had said in London not too long ago, Hong Kong people are known for their courage and energy, imagination and humour, realism and patience, and above all the will to survive. I am confident that these indomitable qualities of the Hong Kong people will enable them not only to survive, but to come out of the current world economic crisis with their feet firmly on the ground, ready to meet whatever challenges and new opportunities may come their way.
I hope that we have seen the worst of the inflation spiral and that from now on the rate of inflation will become progressively slower. The Consumer Council under the chairmanship of Sir Y. K. KAN has done a commendable job to stabilize internal inflation on essential commodities affecting the daily lives of the community; what the Council lacked in its "bite" by way of legal powers, it effectively made up in its "bark" through the press, radio and television, and where appropriate through negotiation behind the scenes. At the same time, I would urge that we do not let down our guard but instead still maintain a posture of "preparing for the worst and hoping for the best". In this connection, I might remind Government that it has an obligation to the public to keep internal inflation at its lowest possible level and not to allow continued increases in charges by any of the essential services without the fullest possible justification.
At this juncture, I have in mind telephone charges, which have gone up once this year, and it is now rumoured that a second increase for this year is being contemplated. This is a matter which deserves the widest possible hearing by the public, as it involves many questions such as the extent to which Government should participate in the management of the telephone company to ensure that it operates at a
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level of peak efficiency consistent with the public good and the reasonable interests of its shareholders.
We must be seriously concerned with rising prices internally, as there has been erosion in the past year in the real income of our industrial workers and white-collar workers. Now that we have the Commissioner for Labour on this Council, perhaps he or someone else on this Council could let us know Government's views on the possibility of setting up a central provident fund for blue-collar and white-collar workers in Hong Kong with Government participation and covering all those working in establishments registered under the Business Registration Ordinance and who are not protected by company provident or pension funds. If such a scheme were to be introduced, it would, I think, require a residential qualification of not less than three years.
As living costs continue going up, it would seem to be a good idea for Government to embark upon a well-co-ordinated campaign to encourage and explain in simple terms how the public can increase productivity and reduce waste and inefficiency in certain areas of community life.
Although I am pleased to see that the Civil Service as a whole is becoming more efficiency conscious, I would hasten to add that much more can still be accomplished by way of setting up higher standards of performance and effectiveness. As a whole, the Hong Kong Civil Service is by far the highest paid in Asia, and it is up to Government and this Council to ensure that like any large corporation the performance justifies the expenditure. The objectives should be more efficiency, more dedication, and less recruitment.
Some of the savings which could be pared off from Civil Service expenditure as a result of increased efficiency might well be applied to providing a justifiable measure of tax relief to our badly-hit middle class salary earners by way of more allowances for the children and their education.
As to whether or not there should be any increase in the standard rate of taxation beyond the existing 15%, I do not wish to pre-judge the issue, and would prefer to wait for the Financial Secretary's report early next year on the state of the economy, and whether or not we will end up with a deficit (and the extent of the deficit), and to what extent we may have to draw upon our reserves if at all.
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Sir, it is a mark of confidence which we have in the future of Hong Kong that we are planning in some areas well towards the end of the century. This is especially so in our long-range plans for the building of new towns in the New Territories. If we can continue to preserve an open and flexible attitude, perhaps it could be a useful exercise if our economic planners would prepare for public information and comment a ten-year outline of the various economic and industrial possibilities along which Hong Kong could develop. I suggest this having in mind that the trend in many developed countries is for an increasing percentage of the working population to be absorbed in the service and higher technological capital-intensive industries, with a correspondingly slower increase in the number of persons engaged in manufacturing industries.
We shall of course have to carefully monitor our population growth over the next ten years, both from natural increase and from immigration. Government can only adopt a realistic approach to stabilize our population by family planning measures as well as by negotiations to reduce the continued large influx of immigrants, both legal and illegal, to more acceptable proportions.
We shall have to maintain a pragmatic population policy so as to enable Hong Kong people to arrive at a happy and humane level of existence, and our children to have the chance to enjoy the fruits of our long-term plans, our persistent efforts and sacrifices.
Sir, I have much pleasure in supporting the motion.
MR F. W. LI: —Your Excellency, I fully support Government's stand, as expressed by you, Sir, to take stock, define priorities, and consolidate and maintain progress in the existing fields of endeavour rather than to embark on new ventures.
In view of the prevailing situation we face, I heartily agree with your cautious and prudent approach to the implementation of the long term plans to which we are committed for the welfare of the people of Hong Kong.
The Economy
It is true that our economy has been confronted with difficulties which are quite unexpected, and undesirable effects are beginning to surface in recent months. We are indeed entering into a period of adjustment as seen in the levelling off of our exports, some reduction
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in employment, continued though slower price rises, high interest rates, and a sluggish property market.
It is inevitable as our major export markets are all facing economic problems of their own, and so much is shrouded in an atmosphere of uncertainty. Despite this situation, Hong Kong has stood fast and fared well. It once more demonstrates the remarkable resilience of our economy embodied in the ingenuity of our entrepreneurs and the industry of our working people.
While we are proud of this, to be realistic, however we must keep a close watch and be prepared for any adverse eventuality. I would agree that it is a difficult task to predict what lies in store for us in the days to come as so many external factors are beyond our control. Nor is it easy to say how long this process of adjustment will be.
But it is on the basis of preparedness that we can firmly address ourselves to the task of the future. Government's determination to force ahead with its long range programmes for housing, social welfare, education, medical and health services and transport is indeed reassuring. This is no time to retreat. Our social commitments must be met, not only because they are the basic objectives and necessities of our society but also because they are the foundation of the confidence in our continuing progress.
I fully realize that our achievements would be dependent upon resources available to us. Without wishing to sound unduly pessimistic, and whilst I am not alarmed by the prospect of a possible budget deficit for the current year, I feel that measures should be taken to improve our revenue on the one hand, and to tighten or reduce our recurrent expenditure on the other. In the latter case, I share your concern, Sir, with the excessive rate of 20% annual increase, which I suspect involves a good deal of wastage. I therefore strongly urge that necessary steps be taken by Government to avoid all unnecessary spending.
What is more vital is to improve our revenue as much as possible within our existing tax structure. This in effect suggests that we should take stock on the revenue side of the ledger. Surely, work can be done along these lines as the estimation of expenditures. Projections must be made on the basis of our current fiscal structure. We must also investigate what other feasible avenues are open to us, their revenue-generating capacity, and their costs. It is by laying down these alternatives
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and itemizing their financial implications that we can have a more accurate estimation of our financial ability.
Population Policy
At the Inaugural Ceremony of the World Population Year Programme held in Hong Kong in April this year, Your Excellency said, "We have our plans for making good in this decade some of the deficiencies of life and the rapid increase in our population has produced, whether in education, housing, social security, health or even in public order. But these plans could be utterly frustrated by a new excessive growth in population, whether by immigration or by natural increase."
With regard to the natural increase, it is most gratifying to note the excellent progress in Government's extensive integration of family planning services into the Maternal and Child Health Programmes. As to immigration, however, the net gain of over 60,000 last year is cause for serious concern. It is most essential that this situation should be watched carefully and controlled if possible.
You have also mentioned, Sir, in your address in this Council two weeks ago that Government is very conscious of the social and financial implications of excessive population growth. And quite rightly so. All these are inter-related to the complexity of your overall planning. But is it not time to look beyond just population growth? It will not be enough merely to provide adequate family planning facilities.
To my mind, I strongly feel that it is necessary for Hong Kong to formulate and evolve a population policy as soon as possible. At the same time, a Commission should be appointed to ensure that realistic targets are set and met. Only then, could the wider issue of development of all Government objectives to improve the quality of life of our community be really considered.
ICAC
One of the most outstanding events during the last year was the setting up of the Independent Commission Against Corruption. With only the Operations Department fully functioning it is a little too early to assess results. But the favourable response from the general public alone more than justifies its existence. I heartily congratulate you, Sir, on your determination and full commitment to combat corruption. I am sure that as soon as the special Corruption Prevention and the Community Relations Departments commence their work, the effectiveness of the whole Commission will increase tremendously.
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The functions of these two departments are of the utmost importance in publicity, public education and public involvement. The misconception that corruption has always been a way of life in Hong Kong must be changed. In particular, the attitude of the younger people in our community towards the evils of corrupt practices must be corrected with the view of reducing the crime rate.
I sense however that the total cost of the operation of the Commission will far exceed the original estimates for the current year. Furthermore, there has been an apparent drain on the personnel from the Civil Service. I am perturbed by these two factors. The Commission is an independent statutory body and its officers are exempted from the purview of the Public Services Commission. Nevertheless, its expenditure is charged to the general revenue. However, I fully appreciate that this is a sound investment from which we can anticipate handsome dividends in the form of outstanding results.
I look forward to seeing, at a later stage, the Commission's report for its first year's operation and its estimates of expenditure for the next financial year. I am sure that as corruption is gradually eradicated through the work of this Commission, the costs involved would begin their downward trend in the ensuing years.
With these remarks, Sir, I support the motion.
DR FANG: —Your Excellency, may I join my senior Unofficial colleagues in thanking you for the reassuring opening address. Your realistic assessment of Hong Kong's situation and the long-term programmes for its future ease whatever apprehension may have been in Hong Kong people's minds, and generate faith in our Government and renewed vitality in our own endeavours.
You, Sir, rightly pointed out that the downturn in our economy will be temporary, and that our Government will strive to go ahead with many of its long-term plans. It is within this context that I shall speak today on education, transport and employment for the handicapped, and medical services.
Education
Before commenting on the Education White Paper, I would like to commend Government and the Education Department for having
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achieved within six years after the declaration of the goal, universal free primary education in Hong Kong. Measured against a school-age population just above the million mark, this realization is a mammoth accomplishment, and is ample proof of what can be achieved when we all put our minds to an issue. Now that we have the facilities, I would urge Government to go further—to enforce the Director of Education's right to see that every primary-school-age child is in school. Sir, I support the honourable Wilson WANG in his proposal that Government should now consider seriously the implementation of compulsory primary education.
I welcome the White Paper on Education as a statement of Government's broad objectives in the field of secondary education, especially on its proposals for the abolition of the Secondary School Entrance Examination and the provision of nine years' subsidized education. I am obliged, however, to say that whilst the White Paper indicates a step forward in the right direction, it has not gone far enough in coping with our present needs and solving the basic educational problem.
I am particularly concerned with the proposed Junior Certificate Examination, which, as it is made out to be in the White Paper, is another examination of selection because of limited numbers in the places in Forms 4 and 5. It is most regrettable that instead of relieving the anxiety created by the Secondary School Entrance Examination felt by students and parents alike, the Junior Certificate Examination is, in a way, only postponing the ill-effects, and, therefore, prolongs the period of pressure for those involved.
I am not against all examinations as such, but would strongly suggest that the nature of the examination should be so tailored that it would not be a means of selection for places but an assessment of a child's ability. While conscious of the physical and financial constraints for the moment, I should like to see the abolition of such an examination and a declared aim of universal secondary education, up to school leaving level, for all in Hong Kong.
The White Paper made no reference whatsoever to the educational needs of the handicapped children. It is estimated that, in our community, there are 120,000 physically and mentally handicapped children, who, being handicapped, need to be more educationally equipped to fend for themselves. Yet existing facilities can cope with less than 5,000. This gap must be considered to be a serious blot on our otherwise fine record of achievement and, unless we can fill it, we cannot in all honesty and good conscience, claim that we have achieved
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free primary education for all. I urge that these less fortunate members of our community, should, at the very least, be included in our programme of universal free primary education and that secondary education should be made more available to them at the earliest possible time. I would welcome a statement from Government on its policy and plans for the education of this particular group.
Transport and Employment for the Handicapped
It is not only in education that the handicapped tend to be forgotten. The handicapped, just as any able-bodied person, is an integral part of the society and should enjoy just as much privilege. Yet little provision is made for them in public transport and there is still much discrimination against their employment.
On the first score, I most strongly recommend that some provision be made for them in the major, if not in all the stations, of the mass transit system. It has been argued that installation of lifts to enable the handicapped to have access to the underground railway will be costly, and therefore, impractical. I contend that this money will be well spent, as it will enable the handicapped people to travel independently, rather than turning them into a social burden to society. We have been talking a lot about solving transport problem but little have we considered the transportation needs of some 300,000 people with restricted mobility, and this number is increasing every year. It must be remembered that the majority of this number come from the poorer sector of the community who can hardly afford private transport. It is unrealistic to expect them to fend for themselves on means of surface public transport, and to deny them access to the mass transit is to deprive them of the means of mobility. In future years when people take stock of our mass transit system, the planners today will have to answer for the sins of deliberate omission.
Being handicapped is not shameful, not taking the handicapped into account in our social planning is. In our society, there remains much prejudice against the employment of the disabled despite the fact that they have been trained and are able to perform the specific duties the job requires. In the United Kingdom and the Scandinavian countries, the law stipulates a 3% employment rate for the handicapped in industries. Our Government, the biggest employer in Hong Kong, and engaging the largest number of handicapped, has no more than 0.3% on its payroll; this is certainly not a record to be proud of.
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It will be unrealistic for me to press for compulsory employment for the handicapped in the present economic climate, but I should like to see it accepted as a matter of principle that the trained handicapped have as much right as the able-bodied in gainful employment. I appeal both to Government and the private sector to give these people an opportunity to help themselves, and I trust that Government will continue to take the lead in this direction.
Medical Services
My final point concerns medical services in Hong Kong. My Unofficial colleagues and I are unanimous in urging that the plans for expansion and improvement of medical services as outlined in the recent Medical White Paper be implemented with all possible speed.
I am specifically concerned over the provision of doctors to man the existing and proposed services. In view of the high cost of living and the present economic situation, we would expect more of our citizens to turn to public medical service. Even as far back as 1964 the White Paper on the Development on Medical Services in Hong Kong then mentioned that some 80% of the population were not able to afford un-subsidized medical treatment. At present, Hong Kong has 2,533 doctors on the register, of which only 797 are in Government service as stated in the Medical White Paper published in July this year.
It is true that we have more than 100 medical graduates annually; but the mere number of medical students by itself is deceptive. When we compare the numbers for recruitment and the numbers for wastage, which include retirement and resignations, the figures are far from encouraging. Recruitment statistics in the Medical and Health Department as from 1970 showed that there was a total intake of 595 doctors, whereas wastage amounted to 414 so that the actual gain was a mere 181 over the past five years. What is more alarming is that the annual wastage figures due to resignations only over this period of time have been steadily increasing, from 63 in 1970 to 102 in 1973. Quoting the Medical While Paper again, by 1982, wastage and recruitment will be more or less in balance in that the net recruitment might be in the order of only 10 doctors a year.
It is evident therefore, that unless the intake of doctors is stepped up considerably and Government succeeds in seeking a way to keep more doctors in Government service, we would either put a tremendous workload on the existing doctors in Government service, or we would jeopardize our quality of public medical services—or do both.
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We live in a time when the world population outgrows its resources. The theme of a conscientious government and society, therefore, would be to strike a balance, or near-balance, where there is a fair, if not equal distribution of resources. It is based on this conviction of maximum service for all that I have made the above proposals for consideration.
Sir, I have much pleasure in supporting the motion.
MR BREMRIDGE: —Your Excellency, in common with those living in Hong Kong who travel by air, with the 2.7 million incoming and outgoing visitors who use our airport each year, and with all the transit passengers and with those who ship or receive air cargo, I was delighted to hear that top priority has now at last been allotted to development work at Kai Tak. Due to financial parsimony the airport facilities in recent years have not kept pace with either the number of passengers to be handled, or with the growing amount of cargo that moves in and out of Hong Kong by air. The forward estimates prepared by the Civil Aviation Department for passenger and cargo movements have over the years been accurate. The development of airport facilities and services has not kept in step, and in so far as planning is concerned we are now more than three years behind what was long ago recommended—itself far from the ideal. The passenger terminal extension itself will not be ready until end-1976—four years later than recommended.
There are many priorities in Hong Kong, and I must acknowledge the exceptional difficulty in choosing between them. Indeed I fully accept that the highest of all priorities, argued in general terms, is the need to house better the less well off members of our population. But Hong Kong possesses two prime physical assets. Firstly our harbour, and secondly our airport. If operation of either became blocked, the situation would indeed be fraught with peril. Fortunately, and as a result of sensible Government policy, the development of the harbour has been left mainly to private enterprise. (Laughter). We can see the fruits of this in new developments of the container terminals at Kwai Chung. There has rarely been any suggestion that harbour facilities would not keep pace with the need to handle our import and export cargo movements—and in particular the rapid change to containerization; though I must add in parenthesis that concern is now growing about the provision of sufficient typhoon shelters.
Unfortunately the same cannot be said of Kai Tak Airport, which I believe has risked a total breakdown. One would be foolish indeed
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to under-estimate the problem of allocating sufficient funds for all the staggering needs of the community. Moreover solutions to this sort of problem are never black or white, but varying shades of grey; while it would be irresponsible to decry the best efforts of conscientious, able, and over-worked senior Government servants attempting to serve the balanced interests of Hong Kong. But I believe that the airport has been unreasonably, indeed dangerously, starved in recent years, as a simple result of unwillingness by Government to set against the very considerable gross cash flow available from the airport on the one hand the inevitable commitment to spend money on the other. There has also been Secretariat interference with the planning proposals of sensible experts. While anxious to accept the revenue (and indeed to increase it), the Secretariat has been unwilling until very recently to spend sufficient on keeping up with growth. But the money is there, and long has been. Even if the huge contributions to general taxation are set aside, I estimate that the gross annual revenue from the airport is now about HK$200 million, with direct recurrent costs of only about HK$57 million.
My Friend Mr Oswald CHEUNG, has already spoken about Government's cash flow in general terms and has drawn on the distortions that are thus produced when capital improvements are required. I fully agree with him. This seems to me to be an issue of major importance.
There are those who now advocate that the best solution in difficult circumstances would be to set up an independent airport authority, as has been necessary in similar circumstances in the United Kingdom, and many other countries. I used strongly to support this proposition. I may do so again. I do not do so at this immediate juncture for three reasons. Firstly because I am persuaded that when so many problems are besetting Hong Kong it would be wasteful at this particular moment to devote too much senior Government time and attention to this major innovation. Secondly because I think that the large sums of money at last very reluctantly released will provide enough work to, keep all busy at Kai Tak for the next two or three years. Thirdly because I think that private enterprise is bound anyway to be invited to build more new major undertakings at Kai Tak. It is already involved in the new Hong Kong Air Cargo Terminals Ltd. The latter is a major project, costing about HK$114 million, the construction of which has already started. It is perhaps symptomatic of Government's dilatoriness that they have even now after two years not yet received either a franchise or a land grant.
If in later years there arise similar problems of failure to cope with growth, an independent airport authority may be the final solution. We,
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by we, I mean the community, cannot muddle on with too little too late. This incidentally in my opinion, in an analagous area, has been the fate for years of the Kowloon-Canton Railway, where there must exist a similar argument in favour of an independent authority. Such authorities would of course need to pay an agreed profit margin to Government.
I believe sadly that for the airport little more can be done at this immediate juncture, though it is improvident that -this situation has arisen. It is also idle to suppose that conditions will be easy during this next 3 years, either for those who use the airport or for those who work there (whose problems tend to be disregarded), or indeed that they could not have been ameliorated if greater wisdom had been shown earlier. Only the present relative downturn in passenger movements has saved us and this certainly was not foreseen by Government. The cargo situation—invisible to the general public—is far worse.
No one in his senses would advocate marble palaces for Government airports. It would be equally extreme to provide cowsheds, and to treat those who must use them as cattle-and moreover as paying cattle. (Laughter). I am not anyway so much concerned with the quality of provision as the quantity, though indeed the airport is our shopfront. It does not seem to me unreasonable to expect sufficient space, facilities, and services continuously to be provided for the needs of passengers and cargo. There is a happy mean, and I hope that Government will at last decide always to keep pace with essential requirements as indeed they have done with all safety measures alone. The airport presently is no credit to Hong Kong—to put it mildly. Those who disbelieve me have only to make a visit on any Sunday afternoon in particular.
Of course the burden should not fall on the taxpayer. I do not myself consider that the majority of airlines and other users of Kai Tak will object to paying fair or even increased charges, provided that these result in the continuous improvement of facilities. There must, however, surely be an end to Government's short-sighted treatment of income and expenditure at the airport (and elsewhere) as being totally unrelated to each other; though of course the precise degree of relationship must allow a reasonable profit to Government. It certainly does so in so far as the airport is presently concerned.
There have been recent press reports about the possibility of building a new airport, to be ready in 1985 at the earliest. No doubt
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Government will consider the position, and announce their decision as soon as possible; but I for one consider this to be an exercise in cloud-cuckoo land. It might be said to be one for the birds. (Laughter).
The situation at Kai Tak leads me on to my next point, which is the importance of the Hong Kong Tourist Association in our economy. Their task is to sell Hong Kong to tourists. Tourism is our third major industry, ranking only after textiles and electronics, and there are some who would rank it second. The gross annual revenue generated as a result of tourist business in Hong Kong is in excess of HK$2.8 billion. It is an open question how much of this money stays in Hong Kong, but about HK$1.7 billion seems to me to be a reasonable estimate. Moreover the tourist industry employs at least 100,000 of our people, who would not find it easy now to secure other employment. The Hong Kong Tourist Association is also a prime purveyor of the overall image of Hong Kong to the world, which is of major importance to us all.
It is not easy to promote the attractions of Hong Kong in the present day and age when tourism everywhere is declining as a result of smaller disposable incomes, rapidly rising airline fares, and other sharply increased tourist costs, e.g. shops, hotels, and restaurants. I acknowledge the support that the Hong Kong Government has given to the Hong Kong Tourist Association, without which it would not exist. The Association have, however, in the past been able to go about their business only on a year-to-year basis as a result of their prima facie dependence on the hotel tax, to which Government has generously added. With steadily increasing tourism this was just acceptable, but now it appears to me as though Hong Kong will be lucky in 1974, and possibly in 1975 also, to experience any significant tourist growth. In this we are actually fortunate because in most other countries there has been a very considerable drop. Moreover we hope to persuade tourists to spend longer in Hong Kong. If we have the same number of tourists who spend longer here, it has the same effect in pursuading more tourists to spend shorter time here. I need hardly add that it is not so attractive to the airlines. But the costs of the Tourist Association are inexorably rising. I hope therefore that discussions which have taken place with a helpful Secretariat will result in an agreement which will provide the Association with more money on a three-year basis, so that they may plan ahead appropriately. It is no longer possible to cut back on expenditure on a see-saw arrangement, subject to the vagaries of year-to-year revenue. Nor is it fair to their staff both in Hong Kong and overseas. They cannot hire and
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fire on an annual basis, though in the long term they must still fit expenditure to income.
Sir, I am not complaining about Government's lack of support. I only extend the hope that it may be increased on a basis which will enable the Tourist Association to prepare three-year budgets, and thus be able to face the future in a balanced manner.
With these words, Sir, I have pleasure in supporting the motion.
MISS KO: —Your Excellency, although financial recession has become a world-wide phenomenon, yet, in your address you still emphasize that we will go ahead with our original plans in the field of social services, such as housing, social welfare, education, medical and health services, and transport. Sir, I would like to congratulate you on such a far-sighted and wise decision and also on the other remarkable plans in your address. Many developing countries are suffering from the lack of adequate social welfare programmes when resources and emphasis in national planning are primarily directed toward economic development. It appears often ten times more expensive to provide remedial measures in tackling the social problems resulting from one-sided economic development. So, let us hope that even if more difficult situations arise, there will be no cutting back in the plans for social services which are, for the most part, yet to be implemented. Let us also hope that long term plans to improve the quality of life of the entire community will still be the goal of our work and our plans.
In the field of social welfare, as you have mentioned, Sir, the first annual review of the Five Year Plan has been now completed and the joint planning and consultative machinery between the Government and the voluntary sector continues to work satisfactorily; and it is now supplemented by procedures to evaluate the effectiveness of the services provided by subvented organizations. Sir, this is surely a very pleasant picture which ensures a brighter future in this field.
Self evaluation and assessment of the existing programmes and the ways in which the programmes are being run in social welfare organizations are very important as the results may serve as a guideline to decide what forms of services are valuable, which are out-dated, what should be cut or changed in order to be more effective. Self examination of the existing administration and management of the organizations is also needed in order to simplify the machinery, avoid overlapping
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and ensure more efficient and economical programmes. I agree that voluntary agencies in similar fields can group together with the aim of strengthening each other, or perhaps mergers should take place in some situations in order to ensure that the resources are being used properly. Consultation service sometimes seems necessary in order to streamline and restructure the organizations, especially for voluntary agencies which need guidance.
Sir, again on the subject of evaluation, every year a great amount of money has been spent on summer youth programmes. This year an approximate sum of $3 million was spent during the summer months. I am sure no one would have any doubt of the value of recreation, especially recreational activities for the young people. But in order to ensure that there is no overlapping, the money is properly and wisely spent, manpower and facilities are fully utilized and the programmes planned are really able to meet the needs in the various districts as well as to ensure better planning and more suitable programmes for the future, an overall evaluation system with adequate depth is needed. Some departments and organizations are at present working on their own evaluation procedures, but these seem somewhat fragmented.
Sir, the preparation of legislation to control and regulate the operation of child care centres was also mentioned in your address. I would congratulate you again, Sir, as this is necessary and timely. My honourable Friend Mrs SYMONS has expressed her concern on this matter before. It has been for some time that some small, badly-run child care centres operating on a purely commercial basis, have proliferated. Instances of neglect or abuse have occurred in some of these centres in recent years, and the conditions in others are detrimental to the children's health and safety. The lack of legislative control has become one of our concerns. On the other hand, there is a great demand for properly-run nurseries—1,000 places yearly as stated in the Five Year Plan—and proper guidance in this field is considered urgently needed, especially regarding safety and care.
It would be desirable too, in the not too far distant future, to consider legislation for other social welfare institutions, such as old people's homes, children's homes and homes for the disabled, in order to cope with the rapid development of social welfare programmes in Hong Kong.
It is gratifying to know that Community and Youth Officers have been appointed to all districts in the urban areas. The Community and Youth Officers scheme is certainly a significant service which can help in coping with the many changes in our society. In Hong Kong's many
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new public housing estates, the sense of an integrated community life is most essential. The Community and Youth Officers can help the residents of these public housing estates create the spirit of community which is sometimes so sadly lacking. It is hoped that in the near future the manpower of the CYO scheme can be gradually strengthened so that residents in more districts will be encouraged to participate in this community-building programme.
Judging from some of the points mentioned above in the field of social welfare, Government has placed more attention on preventive and developmental aspects, which is the right direction of a mature government.
May I now briefly mention four particular points relating to the White Paper on Education.
From the White Paper on Education it is encouraging to know that nine years of subsidized general education will be provided for all children and that places for 100% of the 12-14 age group and 40% of the 15-16 age group will be available by September 1979, five years ahead of the target date originally suggested in the Green Paper recommendation. This shows Government's determination to push ahead with the provision of secondary education for children in this age group.
First of all, I would like to say a few words on examinations. Ideally, it would be best to eliminate the proposed Hong Kong Junior Certificate of Education Examination and to replace it with an aptitude test or ability test. These tests, together with the initiation of system record-keeping of school programmes and career interest of each child, would serve as guidance for student counselling and the direction of the child's future. It is obvious that the establishment of these new assessment systems are complex and will require time to develop.
It has been a prevailing comment that the contents and quality of education of Hong Kong have been primarily influenced by the forms of examinations. As the White Paper indicates, the first Junior Certificate of Education Examination would probably take place in 1982. Therefore, I hope that with this ample time to make plans, the design and contents of the examinations will be prepared in such a way as to influence effectively the methods of teaching and school curriculum and eventually better the whole quality of the nine-year education.
A possible way forward would be to broaden the scope of the Hong Kong Junior Certificate of Education Examination by including
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a portion of teacher-assessment and standardized test results over three or four years into the final result of the examination. This new assessment programme should be worked out by an appointed group of experienced educators.
Secondly, I would like to emphasize the importance of school social work. Generally speaking, school social work is a part of an "inter-professional approach" in the school system. Its aims are the understanding and providing of help to the school children who are unable to use their learning capacities to the full or whose problems require a kind of special service to enable them to make maximum use of their educational opportunities. An important feature of this service is the emphasis on prevention. It is proposed that teaching staff and social workers should work in teams and discuss any difficulties or problems that may arise. In the present situation in Hong Kong, many teachers are far too busy with the teaching aspect and have therefore no time to deal with the students' problems, be they social, environmental, emotional or psychological. Since social workers are trained especially to deal with problems in human relationships and to assist people in their struggles in problem-solving, they have a role within the educational system that supplements the work of the teachers. With special skills and knowledge in dealing with human problems, the social workers are able to assist in the handling of social, emotional and family problems of the students which affect their learning in school. In this sense, the roles of the teacher and the social worker are not of a competitive nature, but they should complement each other. With the availability of school social work, it is hoped that the rapid growth of juvenile delinquency, especially in some congested public housing estates, could be prevented and reduced more easily.
Under the present economic situation in Hong Kong and because of the lack of trained social workers, it may be impossible for each school to employ a social worker. Thus, it seems practical, as a temporary measure, for schools and social welfare agencies to work more closely together, with the latter providing social workers, each of them working with a number of schools in the same district.
It is hoped that the Social Welfare Department and the Education Department will co-operate more closely regarding allocation of funds in providing school social work as well as in the sharing of premises, facilities and manpower regarding the entire problem of children and youth development.
A third point I want to mention here is extra-curricular activities. It is foreseeable that before reaching the targets mentioned in the
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White Paper, the flotation/extended day system, or even the bisessional operation or rotation system in a few private schools will still exist for some time. All these are only temporary measures. During this interim period it is desirable that the schools will open after classes, even in the evening, for extra curricular activities and that the schools, especially those in the public housing estates, and the youth centres and community centres nearby will co-operate more closely. According to the Social Welfare Five Year Plan, about 100 more children and youth centres would be completed in the next five years. It is hoped that these centres will provide space, facilities, or even manpower to see that the school children will have extra-curricular activities such as supervised or organized recreational, cultural and group activities and interest groups and sports. It would be practical and beneficial if teachers would take turns supervising these activities.
It is a brutal fact that some schools have been infiltrated by triad societies and some students are threatened and forced to be involved in illegal activities. With more extra-curricular activities as mentioned above, it is hoped that these social evils could be reduced among students.
My fourth concern is the special programme for children of 12-13 years old. I think some interim measures should be considered as a matter of urgency before subsidized nine-year education is provided in Hong Kong. Based on the 1971 census, it is now roughly estimated that those children between 12-13, who are now not studying in school and who are not old enough to work, amount to approximately 20,900. It is for this group of children that special programmes are much needed. For this category of children, it is desirable to establish a special programme, as a temporary measure, covering craft training, informal training, group activities, individual guidance or counselling services. Youth organizations or other welfare agencies should be encouraged to place emphasis on programmes for this special group as some are more or less equipped for this type of work.
Lastly, may I say a few words on comic books on sale now in Hong Kong. I understand that my honourable Friend Mr LOBO discussed the topic on pornography in last year's debate. According to the recent report "Violence and Sex in Children's Comic Books" prepared jointly by the Rotary Joint Interact Council and the Hong Kong Social Worker's Association, the drawings of these comic books were indecent, cruel, threatening, obsessed with fighting and the dialogue was found vulgar, aggressive, seductive, obscene, foul and sex was
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often distorted with shame, guilt, fear and lust. The portrayal of violence as a means for solving problems would lead children and young people to look upon violence as the best solution to a problem, or at least, an acceptable solution. Estimates indicate that there are one million to one and a half million of these books sold each month on the majority of news stands in Hong Kong and nearly all of the purchasers are children and teenagers. More than one-third of them are 10 years old or younger with another one-third in the 11-14 age bracket. Of these buyers, about two-thirds are male and one-third female; a great majority of these children are primary or secondary school students. It is quite obvious that these books attract the curious mind and appear to meet the psychological need of young people for action, aggression and heroic models. As these books could lead children and youngsters to imitative behaviour when they are still unable to judge what is good and what is bad, these books are very unhealthy, damaging and dangerous. My colleagues and I all feel that stronger measures should be taken to suppress these comic books for children.
I think, Sir, it is very urgent now to strengthen the present Indecent Exhibitions Ordinance in the following ways:
Firstly, increasing the present penalties as stated in section 4 from a fine of five thousand dollars to a more substantial amount to make these publications not only unprofitable but also a great financial loss; or extending the imprisonment from six months to such an extent as to inhibit the publication of these comic books.
Secondly, an order to enforce the above, more and regular investigation and prosecution by the Police Force and the authorities concerned are necessary.
Thirdly, enforcing sections 7 and 8 of the ordinance on search warrants and forfeiture.
At present, the Government and the community of Hong Kong are wholeheartedly in favour of and involved in the Fight Crime Campaign. Unless we are able to tackle some of the social and psychological causes of crime, the campaign will not be successful. To strengthen the above said ordinance and have it more strictly enforced are some of the urgent and practical ways to tackle some of the roots of social evil.
Sir, with these words I support the motion.
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MR LO: —Sir, it has often been said that one of the principal assets of Hong Kong is our people. We should not forget that coupled with people is another great asset which is our heritage. Although there are many ways whereby the blend of Chinese and western culture can be fostered and developed here, there is one area where science is making great strides and in which we can make a unique contribution: I speak of the field of medical science. The Government has always adopted a posture of non-interference with regard to the practice of traditional Chinese medicine in Hong Kong—to the extent, for instance, that the laws regulating the sale, manufacture and distribution of poisons are expressly excluded from the traditional Chinese herbs listed in the Chinese Herbal Materia Medica. I do not doubt the wisdom of this attitude at a time when the Government and its advisers had little knowledge of the subject-fragrance should be tolerant: but over recent years there has been much research and intellectual curiosity on the part of those scientifically trained in the whole subject of acupuncture, the stimulation of meridians, and Chinese herbal medicine, The so called "east-west detente" has expressed itself in many ways, and perhaps one of the most fruitful is the rapprochement between western and Chinese traditional medicine. I believe that it is becoming to be recognized in western medical science that the curative effects of Chinese traditional medicines and techniques can be interpreted in strictly scientific terms. In Hong Kong large family fortunes have been founded by the sale of Chinese herbal medicine. Over 4,000 people are practising Chinese traditional cures and the vast majority of us have taken Chinese traditional cures some time or other in one form or another in our lives. I must also mention that it is not uncommon for Government hospitals to have to treat those who have taken Chinese medicine which disagreed with them. So far however it has not been possible to establish any standard so as to differentiate between the genuine able Chinese herbalist from one less able or indeed from the out and out charlatan.
That being the situation today, my Unofficial colleagues unanimously join me in asking Government to look into the position perhaps to turn ignorance into better understanding and to consider what can fruitfully be done such as the establishment of a Government unit to collate information and of research fellowships in our universities. Whilst at this stage it may be over ambitious for us to do large scale original research into Chinese herbs it would be indefensible not to begin to build a reservoir of scientific knowledge.
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I should now like to turn to the question of gambling. Gambling is one of the four principal vices which Chinese parents have been teaching their children to avoid ever since gambling started and according to one view gambling started when Adam gambled that he would not be found out for eating the apple. Whilst the instinct to gamble is part of human nature its effects in serious cases can be disastrous. Because of this it is no doubt the bounden duty of Government to protect the people from its worst effects. Our present protection is the Gambling Ordinance which was first introduced in 1891, the last century, by Sir William des VOEUX the Governor at that time. Whilst considerable amendments have been made to it since, the basic principles of the ordinance remain unchanged. Accordingly, I think it would be illuminating to go back in history and see what Sir William's views were. At the outset he indicated that he had considerable doubts about the wisdom of the ordinance. He said that the experience he had in various parts of the world made him very sceptical about the practical effect for good of any gambling law and that I quote his own words "no legislation has been of much benefit anywhere against gambling." He also said it would lead to bribery; I quote him again: "it is scarcely possible to conceive, considering the penalties to gambling and the profit that must be made, and when you also consider what are the wages of a large portion of the Police Force, I say it is almost impossible to conceive there must not be a large amount of corruption. It is scarcely in human nature to believe otherwise." Further, the then Governor said he felt it would lead to general disrespect for the law and he put the matter thus: "Before I do something I want to be convinced that that something is going to be of some use for I believe that laws which are in their nature likely to be broken do much more harm than good; they simply demoralise the whole community. Where the community know there is a law which is broken all round they are the less likely to refrain from breaking laws which are of more serious character, the boundaries between right and wrong are more and more obliterated, and to that extent harm is done." He scoffed at the hypocritical attitude of those in England who undoubtedly pressured at that time for the passage of the bill. He said, "Take any evening paper published in England, not only in London but in every considerable town and in some of the smaller towns, I believe with the exception, that of the Times, they all publish the starting prices. What does this mean? It means that a large number of their readers are interested in the starting prices of every race that takes place ... what else do you see? You see a form of gambling that is even worse. You see columns of advertisements of touting brokers . . . who have passed millions of stocks every year." Despite these and other doubts which he had on
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the bill Sir William des VOEUX did eventually decide to pass the Gambling Ordinance. His reasons for doing so, however, were extremely negative. They were that firstly the law as it then stood was utterly useless and the bill in his words "cannot make matters worse than they were and may make them better." The other reason for his decision was scarcely less negative, it was this-you may find the words familiar, Sir: "This law will enable us to be certain about whether there is corruption if the gambling in particular places is not put to an end to we shall know that corruption exists. We do not know that at present. For these reasons I propose to go on with the bill." 83 years have gone by. We can now evaluate whether the doubts expressed by Sir William des VOEUX on the Gambling Ordinance were justified. He said that the laws would be ineffective and would lead to bribery. I think we can hardly deny that he has been proved right beyond all reasonable doubt. For 83 years no one has ever found any difficulty in placing a bet in any form of gambling. Indeed, the illegal casinos, illegal gambling syndicates which flourish in Hong Kong are far worse than any legally controlled ones. To enforce payment of gamblers' debts they employ hoodlums and resort to force. To increase their earnings they deal in drugs and prostitution. To ensure that customers lose they fix the odds, load the dice and tilt the tables. Finally, to keep in business they rely on bribery and corruption. Sir William des VOEUX was also concerned about the general demoralizing effect of having laws on the statute books which are likely to be broken. To a person who telephones his bookie for an off-course bet on horses or dogs the boundaries between right and wrong, in my view, are entirely obliterated. The criminal law has become what the police choose to enforce; not what the legislature enacts. Sir William des VOEUX had said that, quoting again "If the gambling in particular places is not put an end to we shall know that corruption exists, and either it win have to be corrected or the law will have to be given up altogether." Corruption may now abate temporarily in the face of the new ICAC with the operation arm under Mr PRENDERGAST whom you referred to, Sir, as one of the most successful policemen in the Commonwealth. However, will it be equally successful under a lesser man? The Director of the Prevention Department of the ICAC, Mr P. T. WARR is reported to have expressed the view that he favoured any steps that could be taken to reduce the existing opportunities for corruption in this area and that the legalisation of off-course betting is a step in the right direction. I would agree with him.
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Sir, the 1891 experiment was not expected to work, did not work, has never worked, and will never work. Let us devise a more practical and less doctrinaire approach. Let us accept that it is human instinct to gamble. Let us not try to change nature. Let us above all use our ingenuity and our practical sense to devise practical legal machinery to control gambling and practical ways to protect our people from the worst effects of this instinct. Whilst my Unofficial colleagues not surprisingly have differing views on what might be done about this admittedly difficult situation we are unanimous on one point, Sir, and that is to ask you to have the matter gone into thoroughly as soon as possible.
Finally, I would like to say a few words about Government policy and the community.
In the past year there have been instances in which the Government has announced a decision to take a certain course of action. Then, after encountering opposition in the form of processions, demonstrations and the like, the Government has, without providing the public with any explanation, reversed its decisions. The most recent example was the trouble over the form of shop tenancy agreements of the Housing Authority.
Now, I cannot imagine that Government decisions are taken hastily or without careful consideration of the consequences. We have a huge, elaborate structure of Government machinery staffed by civil servants whose annual pay amounts to almost HK$2,000 million. There is an abundance of highly trained and highly paid civil servants available to study the effect of proposed Government decisions on each section of the community, to sound out public opinion at all levels, and to evaluate gathered facts and opinions. Every decision taken should, therefore, benefit the community at large and at the same time, if hardship or suffering to some cannot be avoided, be reasonably fair to that section of the community.
Nevertheless, opposition to Government decisions cannot be prevented from arising from time to time. It may be that a decision was wrong, for civil servants I understand are not infallible. It may be that, while the decision was basically right at the time the problem was first studied, circumstances have materially changed by the time the decision is announced to the public. Finally, even though a decision may be right, even though it may be in the best interests of the community as a whole and reasonably fair to those on whom it inflicts hardship or suffering, a small group of activists with an axe to grind
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may throw up heated resistance in the form of organized demonstrations and the like.
I am strongly of the view, Sir, that these different situations need to be dealt with in different ways. If it is a case of a wrong decision, or of a decision which, though right in the first instance, is no longer appropriate because of changed circumstances, the Government should not hesitate to reverse its earlier view and chart a new course-but it should give the public a clear and adequate explanation of why it is doing so. On the other hand, if the decision is a correct one, then no amount of axe-grinding resistance from the ignorant or self-seeking should cause the Government to go back on what it has resolved to do. The reason is plain. For the Government to knuckle under, merely because it meets opposition, is to give the impression not of being democratic, but of being weak. It can only encourage the unscrupulous and self-interested to foment opposition and to stir up trouble whenever they can make capital out of it.
It is one thing for the Government to change its policy because it has made a mistake or because circumstances have changed—and to explain to the public why it is doing so. It is an entirely different thing to delay, or to abandon a perfectly sound measure without explanation merely because there is heated opposition. To do this, in my view, is to fail in the prime function of a government-that of governing.
I do support the motion before Council.
MR TIEN: —Sir, in joining my colleagues in their support of your address, I wish to add my views on trade and industry which are the keys to our economy.
Perhaps it is a mark of the delicate balance which you struck in your speech on the economy that led one of the English newspapers to come out with a headline: "Sir Murray lifts gloom over economy”, and on the same day, the other to say "A gloomy year ahead". The marked contrast of these two headlines is not, I would venture to suggest, a reflection of equivocation on your part. Rather, it reflects the mood of the time, and the uncertainties hanging over our heads.
I am a businessman, not an economist. Inevitably I tend to look at the economy from the point of view of trade. Are we, as the
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prophets of doom would have it, going down the drain? Are we getting into a deep recession? Is our business, as my friends in the processing sector of the textile trade would say, shrinking, dy(e)ing and finishing? (Laughter). Perhaps I am too optimistic, but in my experience as a trader I would say that the answer to all these questions is a resounding “no”.
Granted, we are not doing quite as well as we were in the past couple of years, particularly when we make comparisons with 1973, which must be regarded as an unusual year. But as you, Sir, quite rightly pointed out, we cannot expect boom conditions to last forever. The downturn in trade, including textile trade, is the result of a number of factors. The main ones are first, the oil crisis which has resulted in a shortage of liquidity in most developed markets; and secondly, the consequential need to run down inventories in order to reduce costs.
The oil crisis is beginning to ease, and oil prices are likely to stabilize as you, Sir, would predict. Our customers cannot deplete their inventories without replacement. They must hold some stocks in order to carry on their business. There is evidence that our customers are now beginning to re-stock. The noticeable increase in the number of buyers arriving in Hong Kong in the last month or so is a good indication.
If my somewhat optimistic predictions are borne out by events in the next few months, all three sectors of the textile trade, the spinners, the weavers and the garment manufacturers, will see improvements in their order books when the textile cycle completes its turn.
We are not going to be out of the woods in the next few months. We will have to continue tightening our belts for a while yet. But, hopefully, this would not be a long while. When the economic conditions in our traditional markets improve, Hong Kong will be well placed to take advantage of any upturn in business. With serious problems of inflation facing many of our neighbours and competitors, we will see some improvement in our competitive position in our overseas markets.
Sir, while I would caution against any undue optimism, I would keep my fingers crossed, and hope that things will get somewhat better, and that things will not have to get worse before they get better.
I would now turn to some aspects of industrial development which underpins our economy. First, the proposed oil refinery and petrochemical complex which will cost at least HK$6,000 million. The first
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application for land for an oil refinery was made in 1971. Three years have gone by but we have yet to see any visible sign of progress. I realize that a great many factors must be carefully weighed before the Government can give approval to the construction of this very large project. Quite apart from its economic viability, environmental factors must also be taken into account. However, there is a limit to which economic and social benefits can be sacrificed for environmental purity. Thousands of jobs will be provided during the construction period alone and several thousands on a more permanent basis. Many additional downstream industries could be created to use the raw materials produced by the petro-chemical complex. It is not too much to say that this one project could change substantially the structure and direction of our industrial development.
We can live in a safe, though not entirely pure, atmosphere. Let us therefore content ourselves with environmental controls that are good enough, though not the best. In some cases, the best can be the enemy of the good. And this, I would suggest, may well be one such case. Sir, I would urge that the Government should aim to reach a decision on this project before the end of this year, and well before our prospective customers go elsewhere.
Secondly, the question of industrial estates on which my colleagues have already commented.
I was very glad to see some reference by Your Excellency to this important matter in your speech at the opening session of this Council. I would like to enlarge on this, if I may, particularly on the question of timing which is also important.
At the present stage of our industrial development, it seems clear that the lack of formed land for those industries which cannot be located in high rise buildings and which are land and capital intensive, is inhibiting diversification of our industry. It is also restricting the growth, and even threatening the existence of supporting industries.
My fellow industrialists therefore welcome the new land policy of direct sales of sites to large and economically desirable industrial undertakings. I hope that this policy will continue and be pressed with greater vigour to attract suitable foreign enterprises into Hong Kong. But this in itself is not sufficient to provide the kind of balance and diversification which we must seek in industry if we are going to reduce our economic dependence on too few industries.
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But how does the Government propose to deal with this highly important subject? The Secretariat has a Working Party on Industrial Land Policy which, as far as I can determine, is an ad hoc committee of Government officials. The Trade and Industry Advisory Board has an Industrial Land Committee which is not by any means privy to full information on Government thinking on either the industrial policy or the land policy, and cannot therefore play a positive role in the sort of comprehensive planning which I believe may now be necessary. The Public Works Department and the New Territories Administration have their own land committees and there is an overall land development planning committee which supposedly draws the threads together. This committee, like all the other land committees, has no unofficial members and it is difficult to see how it can properly take account of the views of commerce and industry without the advice of experienced unofficials.
As I said earlier, Sir, I believe that we have reached a point in time where we cannot any longer simply rely on industrialists to provide the sort of industrial mix which will prove best for the future development of the Hong Kong economy.
I am not advocating Government control over the industrialization process. I do suggest however that the Government apparatus for determining the progress and state of industry should be improved and, in particular, the private sector should be brought directly into the system by which industrial land policy and industrial promotion policy is formulated and administered. We will become more promotional in nature instead of being simply responsive to enquiries.
With the advent of the new land policy, the Government has made a start. But much more in this direction is required. The development of industrial estates would certainly be a further step in the right direction. It will permit the Commerce and Industry Department and the Trade Development Council to aim their industrial promotion efforts at the kind of new industries we need, by offering lots which are already formed and serviced. Most other countries in Asia are ahead of Hong Kong in this particular aspect of their industrial development.
What we need is a proper organization for dealing with industrial land problems. I would suggest that Government should give consideration to forming an industrial land development corporation with the function of co-ordinating, directing and rationalizing the policies relating to development of industrial estates. These steps are but the first stages of development. After we have set up these facilities, efforts
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should then be directed at attracting to Hong Kong those industries which will provide us with new technology and which could assist in widening our industrial base, and of course, such projects will have to be profitable for Hong Kong.
I now turn to a problem that is related to what I have been saying, the vital problem of industrial training.
In August 1970, the Industrial Training Advisory Committee, after an in depth study of the training problems by its Industrial Committees and in accordance with Government's declared policy, submitted to Government two proposed contributory training schemes. The schemes had the strong support of the Director of Commerce and Industry and the Commissioner for Labour.
In March 1974, both schemes were approved by the Governor in Council and soon afterwards, Your Excellency appointed the Provisional Training Authorities, whose main task is to pave the way for the establishment of the Statutory Training Authorities.
Sir, the industries in question need these schemes if they are to get the necessary manpower, in the numbers and of the quality required, to successfully meet future challenges. I want to stress most emphatically that the fact the industry is going through a period of difficulties does not diminish one jot the importance of these schemes. On the contrary, now is the time to plan and to build so that the schemes will be operational when business picks up again.
I would like assurance, Sir, that Government will give the utmost priority to the drafting of the necessary legislation to bring the schemes into being, that is, to set up the Statutory Training Authorities. These industries ask no more than for Government departments concerned to share their sense of urgency, and to help them not only help themselves, but also the economy and the community of Hong Kong. The fact is that the schemes will provide training to large numbers of young people, they will also have a social and educational importance.
I would like to make a brief reference to industrial accidents. Statistics on industrial accidents are released by my honourable Friend the Commissioner for Labour from time to time. These serve as a warning to employers to ensure safe working condition, and to employees not to neglect safety measures.
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Employers and employees alike are not always moved by these figures, even when they show alarming increases. Industrial accidents not only cause injuries to persons, they also cut down the productivity. They are in fact avoidable.
The apparent lack of response to cold statistics leads me to suggest that the Labour Department might consider introducing a system of more comprehensive accident statistics, which will reflect more accurately the efficiency, or lack of it, in each of our main industries in terms of safety measures at, say, 3-month intervals.
Such statistics will first serve as a better warning, pinpointing the particular industry which needs to be looked at. Secondly, it will enable the Labour Department and the private organizations concerned to devise more effective means of safeguards for their workers.
Before I resume my seat, Sir, I would seek your indulgence to allow me to revert briefly to one aspect of our external trade. I refer to the discrimination maintained by the European Economic Community against Hong Kong in its Generalized Scheme of Preferences. Our textile and footwear exports to the Community are still denied such preferences, although our neighbours and close competitors are given these benefits. We are now in an hitherto unheard of, and probably unique, situation: Britain, our metropolitan power is now herself discriminating against Hong Kong in favour of our competitors with whom she has neither historical nor economic ties.
I am fully aware of the vigorous way in which you, Sir, and your staff have been representing Hong Kong's case. Indeed my honourable Friend the Director of Commerce and Industry should be congratulated for his heroic efforts to get Hong Kong a better deal. He has just returned from London where he held discussions with Whitehall officials on this subject. I am sure my honourable Friend will tell us in due course what transpired at these talks. We shall all be interested to know in what way Her Majesty's Government proposes to help Hong Kong in removing these discriminations. If the Hong Kong Government has done everything it can, and I believe it has, it is now up to Her Majesty's Government to protect our interests.
Finally, while I am on the subject of the Generalized Scheme of Preference, I should mention that Title V of the US Trade Bill, which is now before the Congress and is expected to be passed before the end of this current session, contains provision for an American Generalized Scheme of Preferences. If such a scheme should come into effect in Hong Kong's largest market, it is vital that Hong Kong is
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included and I am sure that my honourable Friend the Director of Commerce and Industry will be watching closely these developments.
I have pleasure, Sir, in supporting the motion before Council.
Motion made. That the debate on this motion be adjourned—THE ATTORNEY GENERAL.
Question put and agreed to.
Adjournment and next sitting
HIS EXCELLENCY THE PRESIDENT: —In accordance with Standing Orders I now adjourn the Council until 2.30 p.m. on Wednesday the 13th of November.
Adjourned accordingly at fifteen minutes to five o'clock.
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