1 HONG KONG LEGISLATIVE COUNCIL -- 15 July 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 15 July 1992 HONG KONG LEGISLATIVE COUNCIL -- 15 July 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 15 July 1992 1
OFFICIAL RECORD OF PROCEEDINGS
Wednesday, 15 July 1992
The Council met at half-past Two o'clock
PRESENT
THE DEPUTY PRESIDENT
THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., Q.C., J.P.
THE CHIEF SECRETARY
THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P.
THE FINANCIAL SECRETARY
THE HONOURABLE NATHANIEL WILLIAM HAMISH MACLEOD, C.B.E., J.P.
THE ATTORNEY GENERAL
THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE MRS RITA FAN HSU LAI-TAI, C.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P.
THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. THE HONOURABLE DAVID LI KWOK-PO, O.B.E., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E.
THE HONOURABLE SZETO WAH
THE HONOURABLE TAM YIU-CHUNG
THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P.
THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, J.P.
THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, M.B.E., J.P.
THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P.
DR THE HONOURABLE LEONG CHE-HUNG, O.B.E.
THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E.
THE HONOURABLE PETER WONG HONG-YUEN, J.P.
THE HONOURABLE ALBERT CHAN WAI-YIP
PROF THE HONOURABLE EDWARD CHEN KWAN-YIU THE HONOURABLE VINCENT CHENG HOI-CHUEN THE HONOURABLE MOSES CHENG MO-CHI
THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P. THE HONOURABLE CHEUNG MAN-KWONG
THE HONOURABLE CHIM PUI-CHUNG
REV THE HONOURABLE FUNG CHI-WOOD
THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA
DR THE HONOURABLE HUANG CHEN-YA
DR THE HONOURABLE LAM KUI-CHUN
DR THE HONOURABLE CONRAD LAM KUI-SHING THE HONOURABLE LAU CHIN-SHEK
THE HONOURABLE MISS EMILY LAU WAI-HING
THE HONOURABLE LEE WING-TAT
THE HONOURABLE GILBERT LEUNG KAM-HO
THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING
PROF THE HONOURABLE FELICE LIEH MAK, O.B.E., J.P.
THE HONOURALBE MAN SAI-CHEONG
THE HONOURABLE STEVEN POON KWOK-LIM
THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN
THE HONOURABLE JAMES TO KUN-SUN
DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG
DR THE HONOURABLE YEUNG SUM
THE HONOURABLE HOWARD YOUNG, J.P.
THE HONOURABLE ZACHARY WONG WAI-YIN
ABSENT
THE HONOURABLE SIMON IP SIK-ON, J.P.
IN ATTENDANCE
MR DAVID ALAN CHALLONER NENDICK, C.B.E., J.P. SECRETARY FOR MONETARY AFFAIRS
THE HONOURABLE EDWARD BARRIE WIGGHAM, C.B.E., J.P. SECRETARY FOR THE CIVIL SERVICE
MR YEUNG KAI-YIN, J.P.
SECRETARY FOR THE TREASURY
MR JOHN CHAN CHO-CHAK, L.V.O., O.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER
MR MICHAEL SUEN MING-YEUNG, J.P.
SECRETARY FOR HOME AFFAIRS
MR ALISTAIR PETER ASPREY, O.B.E., A.E., J.P. SECRETARY FOR SECURITY
MRS ELIZABETH WONG CHIEN CHI-LIEN, I.S.O., J.P. SECRETARY FOR HEALTH AND WELFARE
MR CHAU TAK-HAY, J.P.
SECRETARY FOR TRADE AND INDUSTRY
MR JAMES SO YIU-CHO, O.B.E., J.P.
SECRETARY FOR RECREATION AND CULTURE
MR MICHAEL SZE CHO-CHEUNG, I.S.O., J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS
MR ROBERT CHARLES WILSON
SECRETARY FOR ECONOMIC SERVICES
THE CLERK TO THE LEGISLATIVE COUNCIL MR LAW KAM-SANG
Papers
The following papers were laid on the table pursuant to Standing Order 14(2): Subject
Subsidiary Legislation L.N. No. Subsidiary Legislation L.N. No.
Film Censorship (Amendment) Regulation 1992.................... 217/92 Film Censorship (Amendment) Regulation 1992.................... 217/92
Administrative Instructions for Regulating
Admittance and Conduct of Persons............................... 227/92
Hong Kong Royal Instructions 1917 to 1991
Standing Orders of the Legislative Council
of Hong Kong
Ending of 1991/92 Session............................................ Ending of 1991/92 Session............................................ 228/92
Public Health and Municipal Services (Public
Pleasure Grounds) (Amendment of Fourth
Schedule) (No. 5) Order 1992.......................................
229/92
Rectification of Errors (No. 3) Order 1992........................... Rectification of Errors (No. 3) Order 1992........................... 230/92
Bathing Beach (Regional Council) (Amendment)
Bylaw
1992................................................................. 231/92 1992................................................................. 231/92
Pleasure Grounds (Regional Council) (Amendment)
Bylaw
1992................................................................. 232/92 1992................................................................. 232/92
Pleasure Grounds (Regional Council) (Amendment)
(No. 2) Bylaw 1992..................................................... 233/92
Public Swimming Pools (Regional Council)
(Amendment) (No. 2) Bylaw 1992................................ (Amendment) (No. 2) Bylaw 1992................................ ylaw 1992................................ 234/92
Stadia (Regional Council) (Amendment)
Bylaw
1992................................................................. 235/92 1992................................................................. 235/92
Sessional Papers 1991-92
No. 93 -- No. 93 -- 1991 Annual Report by the Commissioner of 1991 Annual Report by the Commissioner of
the Independent Commission Against Corruption
No. 94 -- No. 94 -- Sir Robert Black Trust Fund Annual Report for Sir Robert Black Trust Fund Annual Report for
the Year 1 April 1991 to 31 March 1992
No. 95 -- No. 95 -- Hong Kong Provisional Airport Authority Hong Kong Provisional Airport Authority
Annual Report 1991-1992
No. 96 -- No. 96 -- Report of the Public Accounts Committee on eport of the Public Accounts Committee on
Report No. 18 of the Director of Audit on
the Results of Value for Money Audits June 1992
PAC Report No. 18
No. 97 -- No. 97 -- Sir David Trench Fund for Recreation Trustee's Sir David Trench Fund for Recreation Trustee's
Report 1991-92
No. 98 -- No. 98 -- Report on the Administration of the Immigration Service on the Administration of the Immigration Service Welfare Fund from 1 April 1991 to
31 March 1992 prepared by the Director of Immigration
No. 99 -- No. 99 -- Hong Kong Trade Development Council Hong Kong Trade Development Council
Annual Report and Accounts 91-92
No. 100 -- No. 100 -- J.E. Joseph Trust Fund Report for the period oseph Trust Fund Report for the period
1 April 1991 to 31 March 1992
No. 101 -- No. 101 -- Kadoorie Agricultural Aid Loan Fund Report for Kadoorie Agricultural Aid Loan Fund Report for
the period 1 April 1991 to 31 March 1992
No. 102 -- No. 102 -- The Fourth Annual Report of The Commissioner for The Fourth Annual Report of The Commissioner for
Administrative Complaints Hong Kong June 1992 Administrative Complaints Hong Kong June 1992
No. 103 -- No. 103 -- The Statement of Accounts for the Customs The Statement of Accounts for the Customs
and Excise Service Welfare Fund for the year 1991-92
Addresses by Members
Annual Report by the Commissioner of the Independent Commission Against Corruption
MR RONALD ARCULLI: Mr Deputy President, as a member of the Advisory Committee on Corruption, I am pleased to introduce the 1991 Annual Report by the Commissioner of the Independent Commission Against Corruption, which is tabled in this Council today.
Mr Peter ALLAN, the present Commissioner, took over from Mr David JEAFFRESON only Mr Peter ALLAN, the present Commissioner, took over from Mr David JEAFFRESON only at the end of 1991. I feel it is appropriate to repeat Mr ALLAN's tribute in this report to Mr JEAFFRESON's leadership of the Commission over the years from 1989 to 1991. Mr JEAFFRESON was, and is, held in high regard by those who work in the
Commission and it came as no surprise to Mr ALLAN to find that the organization which he took over is highly professional, efficient and effective. Mr ALLAN has referred to just how much the Commission depends on the trust, Mr ALLAN has referred to just how much the Commission depends on the trust, confidence and goodwill of the community. That such exists and in very high measure is reflected in many ways: the willingness with which busy and highly respected members of the community accept invitations to take on yet more and participate in the Commission's advisory committees; the large number of those who participate in educational functions which in turn are designed and implemented with the voluntary assistance of community groups; and in the provision of reports of activities which are perceived by those reporting as being appropriately the subject of investigation by the Commission.
The Operations Department of the Commission meets its obligations by investigating, regardless of their origin, all allegations of corruption where such investigation is practicable. The number of reports in 1991 which were capable of classification as pursuable was 1 759, the highest recorded in the Commission's history. This figure reflects the fact that members of the public, in a display of confidence in the Commission, are increasingly willing to identify themselves and assist to the extent possible in the pursuit of those engaging in corrupt activity. The number of pursuable reports received also led to the Operations Department having a case load of 930 at the end of the year. Of the 1 759 pursuable reports received in 1991, 224 related to election offences under the Corrupt and Illegal Practices Ordinance. Overall, private sector reports accounted for 57% of all reports received by the Commission but, excluding alleged election offences, this showed a small decrease compared with the 1990 figures for the private sector.
The number of persons prosecuted in 1991 was 334. The conviction rate, at around 80%, remained most satisfactory. In addition a further 86 persons were formally cautioned.
In addition to the normal assignment and monitoring studies, the Corruption Prevention Department, through its Advisory Services Group, continued to provide a confidential and free internal audit service, on request, to private sector organizations in relation to the prevention of corruption and fraud. During the year, 205 enquiries were received and assistance was given to 193 organizations. The clients included industrial, commercial, welfare and educational organizations, with manufacturing and trading forming the largest categories. The advice given to these organizations typically dealt with purchasing, inventory control, cash collection,
sales and accounting controls.
The Community Relations Department conducted an intensive education programme The Community Relations Department conducted an intensive education programme during the year directed both generally and at selected sectors of the community. The commercial and industrial sectors were given particular emphasis in view of the fact that the private sector corruption reports represented half of all reports in recent years. Through visits, meetings, workshops, seminars and direct mail the Department focussed on the role of the chief executives of companies in taking the lead for corruption prevention within their working environment. Another special programme during the year was a multi-media campaign and a series of briefing sessions to advise candidates, their agents, and voters against election malpractices. In addition, a telephone hotline was set up to handle public enquiries in the election period.
Mr Deputy President, in his Review Chapter the Commissioner has paid a warm tribute to the staff of the Commission who by their plain old-fashioned industry, loyalty and application, achieved so much during the year. On behalf of the members of this community who assist the ICAC in so many ways I wish to join Mr ALLAN in this tribute.
Hong Kong Provisional Airport Authority Annual Report 1991-1992
FINANCIAL SECRETARY: Mr Deputy President, in accordance with section 10 of the Provisional Airport Authority Ordinance, the annual report and accounts of the Provisional Airport Authority for the year ending 31 March 1992 are tabled today.
The Authority has had an extremely active and successful year which has seen the The Authority has had an extremely active and successful year which has seen the airport plan progress from concept to detailed design and, in some cases, to implementation on site. In particular:
- The Airport Master Plan was completed in January this year; - The Airport Master Plan was completed in January this year;
- The original scope of the advance works at Ch - The original scope of the advance works at Ch The original scope of the advance works at Chek Lap Kok was completed and the ek Lap Kok was completed and the scope of works extended so that any gap between these advance works and the main site preparation works is kept as small as possible;
- The contract for the detailed design of the passenger terminal complex was aw - The contract for the detailed design of the passenger terminal complex was awarded.
The consultants concerned have just completed a comprehensive review which confirmed the acceptability of the principles adopted in the Master Plan and set, with the Board's agreement, a control budget for construction which is within the budget originally set by the Board;
- Tenders for the main site preparation contract are being evaluated. The majo - Tenders for the main site preparation contract are being evaluated. The majority of the bids are now within budget as a result of revisions to the original tender approach. This reflects the determination of the Authority to keep its costs within budget; and
- Pre-qualification has started of those interested in the private sector in - Pre-qualification has started of those interested in the private sector in developing the aircraft maintenance and engineering and air cargo facilities.
All of this has been achieved by a young but growing organization which had All of this has been achieved by a young but growing organization which had approximately 200 full-time staff by the end of March this year. All this could not have been achieved in so short a timeframe were it not for the enthusiasm with which both the management and Board have approached the challenges such a major project presents.
This report should be the last issued by this provisional body since we aim to introduce the Airport Authority Bill into this Council in the next legislative Session. The Airport Authority will inherit an experienced management team and a project already well under way.
Report of the Public Accounts Committee on Report No. 18 of the Director of Audit on the Results of Value for Money Audits June 1992
PAC Report No. 18
MR STEPHEN CHEONG: Mr Deputy President, on behalf of the Public Accounts Committee, I would like to put it on record that the Committee was very sorry to have lost one of its members -- the late Mr NG Ming-yum. Although he was not involved when we deliberated the issues in this Report, he did make contribution to the work of the Committee in the past.
The 18th Report of the Committee, tabled today, covers the conclusions reached by the Committee in considering the Director of Audit's Report on the results of value for money studies completed between October 1991 and February 1992.
Mr Deputy President, I wish to re-emphasize that our function as a Committee is not vindictive or punitive, but to examine with the Administration issues raised in the Director of Audit's Report, to draw lessons from the past and to arrive at recommendations for the more efficient use of public funds in future. In this connection, I wish to highlight the following issues which are of particular concern to the Committee.
First, the Committee noted that the Administration has experienced great difficulty in implementing the policy of suspension of pensions for pensioners on the Old Pension Scheme and re-employed by public service organizations because, under the law, these pensioners could refuse to give consent to the suspension of pension. However, those on the New Pension Scheme or re-employed in the Civil Service were not given such right. We consider that the present disparity of treatment should be removed as soon as possible, and would like to urge the Administration to liaise with the subvented organizations concerned with a view to introducing effective measures to fully implement the current policy of suspension of pension.
We would also like to express our concern over the Labour Department's failure to realize the manpower savings originally envisaged through computerization of the daily routines of its Employees' Compensation Unit. The Committee considers that during the planning and design stage of computerization projects, the Information Technology Services Department should work closely with the user departments to
provide adequate expert advice to them so that appropriate projects which are able to achieve maximum manpower savings can be worked out. On the other hand, the Finance Branch has to take full account of the user departments' requirement, and should not trim, unilaterally, the scope of the projects just for short-term objectives. After all, in the end, whatever money saved in any current financial year may create more spending in the future financial year. Before accepting the proposal for the
computerization, the user departments should also first satisfy themselves that the estimated manpower savings are realistic and achievable. Once the projects are approved for implementation, all parties concerned should be fully committed to achieving the expected manpower savings.
Notwithstanding the above, Mr Deputy President, having served over 10 years as a member of the Public Accounts Committee, it is my considered view that the Administration, compared with the previous years, has steadily improved a lot in its drive for more efficiency and better administration. Whilst no one can ever claim
that any administration anywhere else in this world does not need further improvements, we can be reasonably proud of the standard we have achieved so far. We just hope that the Committee, the Audit Department, and the Administration will work closely together in the quest for continued improvements in cost-effectiveness and efficiency of the Government. I trust that the recommendations in our Report No. 18 will be accepted. Thank you.
Oral answers to questions
PADS projects
1. MR MARTIN LEE asked: Will the Government inform this Council whether every piece 1. MR MARTIN LEE asked: Will the Government inform this Council whether every piece of financial and technical information relating to the Port and Airport Development Strategy (PADS) projects that has been released to the Chinese Government has been released to Members of this Council?
SECRETARY FOR THE TREASURY: Mr Deputy President, it has been our aim during the formulation of financing plans for the Airport Core Programme to share with Honourable Members all essential information we share with the Chinese Government. The same information is also shared with the Airport Consultative Committee. The Chinese and British sides of the Airport Committee have supported this practice.
Accordingly, I can confirm that all financial and technical information relating to the Airport Core Programme that has been released to the Chinese Government following the announcement of the Memorandum of Understanding on 4 July last year has also been released to Members of this Council.
MR MARTIN LEE: Mr Deputy President, in relation to the first sentence in the reply of the Secretary for the Treasury, namely, "it has been our aim during the formulation of financing plans for the Airport Core Programme to share with Honourable Members all essential information we share with the Chinese Government", does it mean that the Chinese Government has been supplied with more information than Members of this Council? And if so, will the Administration inform this Council what constitutes the non-essential information which has been supplied to the Chinese Government but which has not been supplied to Members of this Council?
SECRETARY FOR THE TREASURY: Mr Deputy President, I can say that all essential information of a financial and technical nature that has been shared with or put to the Chinese Government has in one form or another been shared with Honourable Members.
MR CHIM PUI-CHUNG (in Cantonese): Mr Deputy President, in relation to the reply given by the Secretary just now, I understand that Sir John COLES, Personal Emissary of the British Prime Minister, recently disclosed after the Sino-British talks on 6 July that a new proposal on the contingent liabilities of the airport had been presented to the Chinese side. Can the Administration inform us whether Members of this Council have been advised of the contents of the said proposal?
SECRETARY FOR THE TREASURY: Mr Deputy President, the negotiating position of the British and Chinese sides during the talks must, I am afraid, remain confidential.
MR ERIC LI: Mr Deputy President, the original question refers to the Port and Airport Development Strategy, but in the reply only information relating to the Airport Core Programme is given. Can the Government confirm that only information relating to the ACP is passed to the Chinese Government and hence the answer will still be the same if the term ACP is replaced by the term PADS?
SECRETARY FOR THE TREASURY: Mr Deputy President, unlike the Airport Core Programme, we have not established formal contacts with the Chinese Government on port development matters. But I can say that the Economic Services Branch has briefed the Legislative Council Economic Services Panel on port development matters, and Members have been consulted on these matters, including for example, the development of Container Terminal No. 9.
MR ALBERT CHAN (in Cantonese): Mr Deputy President, the Chinese Government has been repeatedly complaining in public about the inadequacy of information on the financing
of the Airport Core Programme projects, contrary to the Administration's explanation that all essential information has been passed to the Chinese side. Can the Administration advise this Council whether such complaints by the Chinese Government are justified and how the Government would help the Chinese side to understand better things that they feel unclear?
SECRETARY FOR THE TREASURY: Mr Deputy President, I really cannot comment on comments made by the Chinese side on the adequacy or inadequacy of our discussions which must remain confidential. All I can say in response to this question is that the Airport Committee will be meeting tomorrow.
MR RONALD ARCULLI: Mr Deputy President, would the Secretary for the Treasury inform us whether commercially sensitive and, perhaps, confidential information has been given to the Chinese Government and not to the Members of this Council?
SECRETARY FOR THE TREASURY: Mr Deputy President, I can say that some information of a confidential nature has been given to the Chinese side; it belongs to the categories Mr ARCULLI described. But to the extent that negotiations remain secret, this sensitive information remains confidential.
MR STEPHEN CHEONG: Mr Deputy President, given that the Secretary for the Treasury has repeatedly stressed that negotiations between the Government and the Chinese Government remain secret or confidential, can the Secretary inform this Council whether it is the considered view of the Administration that the Legislative Council as such has no place in these negotiations?
SECRETARY FOR THE TREASURY: Mr Deputy President, certainly not. The Legislative Council will in due course be consulted once negotiations have been completed and the outcome has been satisfactorily resolved on both sides. The Administration will come forward with proposals to the Finance Committee of this Council for the appropriation of the necessary funds, and it is in the process of these submissions that the outcome of the negotiations will be revealed.
MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy President, in reply to Mr Martin LEE just now, the Secretary said, "all information has been passed to the Council, including the Finance Committee." However in reply to MR CHIM Pui-chung, he said, "some confidential information can only be shared between the Chinese and British sides but cannot be given to the Council." Then in response to Mr Stephen CHEONG, he said, "the Council will only be advised when negotiations have been completed." What exactly is the position of this Council in the Sino-British talks on the new airport? Does the Administration not trust even this Council, hence documents would only be passed to the Council for deliberation and for rubber-stamping after both sides have struck a deal?
SECRETARY FOR THE TREASURY: Mr Deputy President, I believe I have already answered that question. It is in the nature of negotiations, particularly rather sensitive negotiations, that negotiations be conducted on a confidential basis. Failure by one or the other party to do so would lead not to workmanlike negotiations but to debates in public about the respective positions. That is why negotiations have to remain confidential, but as I mentioned earlier, that does not mean that the
Administration has anything to hide from this Council or from its Finance Committee. Once the outcome of a settlement or a deal is known, there is no choice for the Administration but to come forward for the appropriation of the necessary funds.
MR LEE WING-TAT (in Cantonese): Mr Deputy President, I wish to follow up Mr CHEUNG Man-kwong's question. If different and varied proposals were presented by the British Government to the Chinese side during the negotiations, would Members of this Council be advised of the different options and information submitted to the Chinese side for their consideration and deliberation, after a settlement has been reached with the Chinese Government?
SECRETARY FOR THE TREASURY: Mr Deputy President, I imagine that it would be up to Members of this Council to satisfy themselves that the outcome of the negotiations lead to a satisfactory deal. It is in the context of looking at our submission to the Finance Committee of this Council that such questions could be asked.
Air traffic
2. PROF FELICE LIEH MAK asked: In view of the heavy air traffic in and out of Kai 2. PROF FELICE LIEH MAK asked: In view of the heavy air traffic in and out of Kai Tak airport, and the difficulties experienced by pilots in landing and take-off especially in adverse weather conditions, will the Administration inform this Council of:
(a) the number of near misses in the past three years; (a) the number of near misses in the past three years;
(b) the number of times in the past three years that aircraft experienced engine (b) the number of times in the past three years that aircraft experienced engine trouble before landing or after taking-off; and
(c) the emergency facilities available (c) the emergency facilities available the emergency facilities available to cope with the eventuality of an aircraft to cope with the eventuality of an aircraft crashing into a densely populated area?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, technically speaking, a "near miss" in aviation terms occurs when two aircraft in flight pass closer to each other than is considered safe in any particular given circumstance. During the past three years, there was one such incident involving two helicopters not in the immediate vicinity of the airport.
More relevant to the issue of the safety of landing at Kai Tak are statistics More relevant to the issue of the safety of landing at Kai Tak are statistics relating to "missed approaches" which occur when pilots have to abort a landing and make a second approach. These occur usually as a result of bad weather, incorrect positioning of the aircraft, mechanical problems, or, occasionally, at the request of air traffic controllers for traffic control reasons. It should be noted that the "missed approach" procedure is a standard operational manoeuvre executed to meet high safety standards; it should not, in itself, be regarded as a hazardous or dangerous event.
Statistics in relation to missed approaches are that in 1989 there were 192; in 1990, 175; and in 1991, 213. There has been no particular trend in the number of missed approaches over the years; the single most significant cause is the weather which can vary considerably from year to year.
As regards aircraft which experienced some form of engine trouble approaching or during landing at Kai Tak over the past three years, the statistics are 14 in 1989, 22 in 1990 and 18 in 1991. Our records relevant to aircraft experiencing engine trouble on take-off from Kai Tak relate only to those aircraft which were obliged
to turn back to Kai Tak as a result; statistics show 18 in 1989, 16 in 1990 and 17 in 1991.
These statistics need to be seen in the context of the fact that over this These statistics need to be seen in the context of the fact that over this three-year period the total number of annual aircraft movements grew from approximately 94 000 to 110 000.
Procedures have been drawn up to ensure that adequate emergency facilities will be provided to deal with an aircraft crash anywhere in Hong Kong. These, together with the details of how and where equipment and facilities can be requisitioned and deployed during such an emergency situation are contained in a comprehensive
contingency plan. This plan has recently been reviewed and a revised version of it was issued in March this year.
The plan sets out the functions and responsibilities of government departments and other bodies which may be required to deal with such an emergency; these are, primarily, the medical services, the Fire Services, and the police. It also includes a detailed list of the resources available. These include land transport and recovery vehicles, air and marine transport, divers and diving equipment, lifting and cutting equipment, floodlighting, bedding and stretchers and so on. Exercises are held
periodically to ensure all are familiar with their roles and the procedures concerned.
PROF FELICE LIEH MAK: Mr Deputy President, in holding such exercises can the Secretary for Economic Services inform this Council what the ideal response time is between the reporting of an accident and the arrival of all these services at the scene of the accident, in other words, what the time being aimed at is?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I think that the Secretary for Security would be best placed to respond to that question.
SECRETARY FOR SECURITY: Mr Deputy President, that would of course depend upon the circumstances and where the accident occurred. But certainly we would expect the emergency services -- by which I would mean the initial response by the police and the Fire Services -- to be very quick indeed, that is to say, within a matter of minutes.
Clearly, to mobilize some of the other resources and some of the other equipment might
take more time.
MR MARTIN BARROW: Mr Deputy President, could the Secretary inform this Council what steps the Civil Aviation Department can and does take to ensure that non-Hong Kong registered aircraft flying into Hong Kong are properly maintained so as to minimize the risk of any incidents within Hong Kong's jurisdiction?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, if a foreign-registered aircraft were to be involved in an accident at Kai Tak relating to poor maintenance, for example, of that aircraft, a report would have to be filed with the Director of Civil Aviation who would then require the airline and the aircraft manufacturer to explain the situation. If, as in a recent event, a part of the aircraft were to actually fall off, there would be a major investigation and the Director of Civil Aviation would make a recommendation to the manufacturers regarding the issue of a technical notice that all such aircraft should be checked for that feature.
MR HOWARD YOUNG: Mr Deputy President, can the Government confirm that the Civil Aid Services are also one of the primary services that have responsibility for dealing with emergencies so described, and if so, whether they are also drilled and kept up to date on their roles in this regard?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I can confirm that the Civil Aid Services are one of the services which would be involved in the contingency plan and they are indeed drilled regularly, as well as the other emergency services involved.
MR CHIM PUI-CHUNG (in Cantonese): Mr Deputy President, according to records Kai Tak Airport was one of three civil aviation black spots in the world. Will the Administration inform us whether this situation has improved or not?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I would not like to be associated with the phrase that the Kai Tak Airport was a blackspot in terms of world civil aviation. Our safety record at Kai Tak is remarkably good in view of the
difficult approach involved.
MR PETER WONG: Mr Deputy President, will the Secretary please inform this Council which airlines train their pilots on simulators to practise landing in Hong Kong before they actually attempt to do so?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I am afraid I could not confirm, with regard to all world airlines serving Hong Kong, which of those airlines perform that particular sort of training. Cathay Pacific, of course, do that sort of training locally. All pilots who are coming in to land at Kai Tak will have read the detailed information required and issued by the Director of Civil Aviation with regard to the safe approach patterns and the procedures to be followed.
MR HENRY TANG: Mr Deputy President, in his main reply the Secretary said that there has been only one "near miss" in the last three years, between two helicopters. Will the Secretary confirm that that was the only "near miss" incident in the entire Hong Kong air traffic control area and not just at Kai Tak?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I can confirm that that is indeed what I meant. There was only one such incident in the Hong Kong controlled airspace.
DR CONRAD LAM (in Cantonese): Mr Deputy President, the Secretary said in the last paragraph of her reply that joint action would be taken with medical services in case of emergency. Could the Administration inform this Council of the level of manpower resources available for use by the Hospital Authority or other medical services under such circumstances?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, the contingency plan has been revised recently, certainly to take into account all the resources of the Hospital Authority and procedures now applying to the Hospital Authority as well as to the auxiliary medical services and other medical resources that can be called upon. I
could not, myself, estimate how many hospital beds or staff that might involve but it is a very considerable resource.
Flashing neon lights
3. MR HOWARD YOUNG asked: W 3. MR HOWARD YOUNG asked: W MR HOWARD YOUNG asked: Will the Government inform this Council: ill the Government inform this Council:
(a) what the reasons for the prohibition of flashing neon lights in Hong Kong are; (a) what the reasons for the prohibition of flashing neon lights in Hong Kong are; and
(b) whether there are plans to review the law to account for any changing (b) whether there are plans to review the law to account for any changing circumstances since it was made?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, flashing lights over a certain intensity are specifically prohibited in accordance with the provisions of the Hong Kong Airport (Control of Obstructions) Ordinance. The reasons for this are that aircraft landing at Kai Tak are guided in their approach by airport-related flashing beacons and lights. The existence of any other powerful flashing lights in the same vicinity could cause confusion to pilots approaching the airport and thus adversely affect the safety of aircraft.
For similar safety-related reasons, the Shipping and Port Control Ordinance provides that the Director of Marine may direct the removal of a light or illuminated sign, whether flashing or not, if such light or sign obscures, restricts or interferes with any navigation lights or might adversely affect safe navigation.
If the circumstances justifying the need for these provisions were to change significantly, then the law in this respect will be reviewed. For example, the closure of Kai Tak upon the opening of the new airport at Chek Lap Kok would, no doubt, prompt such a review.
MR HOWARD YOUNG (in Cantonese): Mr Deputy President, the reply given a while ago has stated the reasons for the prohibition of flashing neon lights in the vicinity of the airport. Since flashing neon lights help promote the image of Hong Kong as a prosperous city and a more attractive tourist resort, will the Administration, having
regard to the presentday advanced navigation technologies, relax the control in this respect in certain areas like New Territories North, southern Lantau and even the southern part of Hong Kong Island, instead of having to defer the decision until the opening of the new airport?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, the prohibition relating to the safety of air navigation relates primarily to the Kowloon and New Kowloon area. Outside of that specific area, there is another provision under the Public Health and Municipal Services Ordinance which provides, under its Advertisement Bylaws, that no such flashing signs should be placed on any premises anywhere in Hong Kong. That particular provision was also reviewed recently in 1988 when a decision was taken that the provision should be retained because of the danger created by such lights potentially to marine, air and road traffic. The law could indeed be looked at again in respect of the attractiveness or otherwise of flashing neon lights for our tourism industry.
MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy President, as we all know, Hong Kong is densely populated with extremely heavy road traffic. Will the Administration inform this Council whether regard will be given to the road users, most of whom are not tourists but require a safe environment in which to drive or cross roads, in relaxing the control of flashing neon lights? Will this factor be considered before the Administration decides to relax the control of flashing neon lights?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, in the last review that was indeed the overriding factor which swayed the Administration in favour of retaining this provision. So it will indeed be taken into account in future.
MR MAN SAI-CHEONG (in Cantonese): Mr Deputy President, in view of the rising number of complaints on "light nuisance" by members of the public, that is, the glaring light from large advertisement signboards, particularly cigarette advertisements, on the external wall of a building preventing people from having a good sleep until late at night and even the small hours of the morning, are there any government departments
or suitable measures to control or manage this nuisance? If not, will the Administration at once examine or introduce legislation to improve this situation?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I believe that this Administration would consider any sensible proposal and that we could indeed look at perhaps a tighter control or introduce some form of tighter control over very bright lights if they are a cause of concern. As it stands, certainly with regard to flashing lights, the law is clear and they are prohibited.
Smuggling activities
4. MRS SELINA CHOW asked: In view of the continuance of rampant smuggling activi 4. MRS SELINA CHOW asked: In view of the continuance of rampant smuggling activities, will the Government inform this Council how effective the Anti-Smuggling Task Force has been to date, and what additional measures, operational and legislative, are required to assist police initiatives?
SECRETARY FOR SECURITY: Mr Deputy President, there has been a considerable decline in smuggling activities between Hong Kong and China in recent months. At the peak of smuggling activities in February and March 1991, there were over 1 400 speedboat sightings a month. This compares with an average of 130 sightings in each of the past two months.
The Anti-Smuggling Task Force was established in February 1991. Since then, it The Anti-Smuggling Task Force was established in February 1991. Since then, it has achieved the arrest of 176 persons, and the seizure of 100 vessels and goods worth $42.3 million. It has acted to obtain, collate and disseminate information on the changing activities of smugglers to all the agencies involved in anti-smuggling. I believe that it has been effective in reducing the extent of smuggling activities which I have described.
Nevertheless, we are not complacent about the recent decline in smuggling activities; a similar reduction last year between May and July was not sustained. The Anti-Smuggling Task Force will therefore continue to explore new operational
initiatives against the smugglers, such as the recent destruction of a loading ramp used by smugglers near Sai Kung and the setting up of a boom in Tolo Harbour which has effectively eliminated smuggling activities there. Additional legislative measures are also under consideration to keep up the momentum of our efforts to tackle the problem. These include making major smuggling offences indictable in addition to being summary offences, increasing the penalties for the operators of unlicensed sampans who often act as lookout boats in smuggling, and the possibility of additional control on "chung-feis", the medium-sized speedboats normally powered by two 300 hp engines. We shall also maintain close liaison with China. Sustained action against the smugglers both in Hong Kong and in China is likely to be the most effective means of curtailing smuggling.
MRS SELINA CHOW: Mr Deputy President, given that so much is at stake for the smuggling industry which must have suffered loss of profits following the success of the Anti-Smuggling Task Force to curb smuggling by sea, will the Secretary please inform this Council whether smuggling by land has shown any sign of increasing and whether efforts are being made to prevent the proliferation of smuggling by this alternative route?
SECRETARY FOR SECURITY: Mr Deputy President, certainly, we believe that the activities we have taken against boats at sea have led to some additional smuggling, particularly of vehicles, by containers and by land. This is something that the police and the Customs and Excise Department are endeavouring also to tackle. They are devoting resources to obtaining intelligence and to dealing with this form of smuggling as well.
MR MARVIN CHEUNG: Mr Deputy President, other than the number of sightings, does the Administration have any concrete evidence to substantiate the contention that smuggling activities have declined in recent months?
SECRETARY FOR SECURITY: Mr Deputy President, there are limitations in conclusions based purely on speedboat sightings. Clearly, there is the possibility of double
counting and there is the possibility that some speedboats will not be sighted. Nevertheless, as an indication of the trend, I believe that the figures I have quoted, in terms of a reduction in smuggling since 1991, show very clearly that there has been such a reduction.
DEPUTY PRESIDENT: Does that answer your question, Mr CHEUNG?
MR MARVIN CHEUNG: Mr Deputy President, I take the answer to mean that, other than the number of sightings, the Government has no concrete evidence to substantiate that statement.
SECRETARY FOR SECURITY: No, I do not think I did mean that, Mr Deputy President. Clearly, both the police and the Anti-Smuggling Task Force have a number of means of keeping tabs on this. Part of their efforts are devoted to obtaining intelligence on smuggling activities as a whole. What I meant to say was that I think the number of speedboat sightings is probably the easiest indicator of the reduction.
MR CHIM PUI-CHUNG (in Cantonese): Mr Deputy President, the Secretary said that the Anti-Smuggling Task Force had intercepted 32 stolen vehicles during the first five months of the year, while 1 640 private cars were reported lost during the same period and among which 963 had been recovered. The said 32 intercepted vehicles account for a very small proportion of the total number of vehicles reported lost. Will the Administration inform this Council if it is satisfied with the performance and how more stolen vehicles may be intercepted in order to reduce the loss suffered by the public?
SECRETARY FOR SECURITY: Mr Deputy President, I think perhaps we are confusing two things, and I will try to separate them. Most vehicles which are stolen are recovered in Hong Kong and the figure has, over the years, remained fairly constant. The proportion of vehicles recovered has remained fairly constant. What we have seen in recent years, though, is that a number of vehicles which are not recovered in Hong Kong are clearly being smuggled out and we believe that they are being smuggled out predominantly, but not exclusively, to China. We have so far had returned from China
only 32 of these vehicles. We are continuing to make representations to the Chinese authorities and to discuss with them additional measures that they can take to identify these vehicles and to return them to Hong Kong. And as I said in answer to a question in this Council, I think, two weeks ago, we hope that the new computerization of the licensing system which I believe they are introducing in China will enable them to identify these vehicles more easily in future.
MRS RITA FAN: Mr Deputy President, taking action to counteract smuggling is an integral part of the work of the Customs and Excise Department and there are members of this department working side by side with police officers in the Anti-Smuggling Task Force. I have recently received letters from Customs and Excise officers complaining about the lack of facilities and equipment for the department to fight smuggling. Is the Secretary for Security aware of this? If yes, what is being done about it? If not, can the Secretary kindly look into it?
SECRETARY FOR SECURITY: Mr Deputy President, yes, there are several departments who make up the Anti-Smuggling Task Force -- the police force primarily, but also the Customs and Excise Department, and indeed several others. I am certainly aware that the Customs and Excise Department do have a requirement for additional launches and other boats, and that is something that I hope can be provided in the future.
Public assistance for single persons aged 60 or over
5. MR GILBERT LEUNG asked (in Cantonese): Will the Government inform this Council: GILBERT LEUNG asked (in Cantonese): Will the Government inform this Council:
(a) how many people aged 60 or over in Hong Kong are single persons; how many of t (a) how many people aged 60 or over in Hong Kong are single persons; how many of these single persons are public assistance recipients;
(b) what the average amount of monthly a (b) what the average amount of monthly a what the average amount of monthly allowance received by this group of single llowance received by this group of single persons under the Public Assistance Scheme is; how it compares with the present median wage; and
(c) whether the Administration considers the above rates of assistance adequate g (c) whether the Administration considers the above rates of assistance adequate given that the elderly need more money for medical and other expenses than young people and that single persons have to fend for themselves as they have no family members
to look after them; and whether the existing mechanism for revising the rates of allowance under the Public Assistance Scheme is satisfactory?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I shall answer the three part question seriatim:
(a) Of the estimated 766 000 people aged 60 or over in Hong Kong, 74 000 are si (a) Of the estimated 766 000 people aged 60 or over in Hong Kong, 74 000 are single persons living alone, of which 33 000 are on public assistance and another 12 000 are in residential homes or infirmaries.
(b) The Public Assistance Scheme is intended to ensure that recipients' basic needs (b) The Public Assistance Scheme is intended to ensure that recipients' basic needs in daily life are met according to their personal circumstances. The components of the scheme include a basic rate, a rent allowance, a long-term supplement, an old age supplement, a disability supplement and other special supplements and grants, for example, an allowance for special diet, reimbursement for dentures, spectacles and walking aids. Additionally, all medical care in public hospitals and clinics are free. There is little valid basis for comparing public assistance payments with the median wage. The latter relates to remuneration for work and the former is
needs-oriented. However, although the public assistance payment is not linked specifically to wages, public assistance clients have progressively been getting higher allowances over the years, in addition to adjustment for inflation, to enable them to benefit from social and economic changes in Hong Kong. For example, a single elderly person aged 60 and above in 1976 would have got a maximum cash allowance of $390 when the then median monthly household income for a single elderly person was $710. The same person today would get a maximum monthly cash assistance of $3,680, when compared with the median household income for a single elderly person of $5,340 per month (an increase from 54.9% to 68.9%).
(c) The Public Assistance Scheme has been developed and refined significantly ov (c) The Public Assistance Scheme has been developed and refined significantly ov The Public Assistance Scheme has been developed and refined significantly over the years. It has evolved from a scheme which provided for basic sustenance to one which is capable of meeting the basic and special needs of recipients.
The scheme is so designed that individual components can be reviewed and new components introduced. Indeed, in the context of the White Paper on Social Welfare into the 1990s and Beyond, it was re-examined as recently as last year, followed by an immediate introduction of the child supplement for public assistance recipients. We believe that the Public Assistance Scheme should be looked at again in relation
to the forthcoming review of the policy on care for the elderly and in the context also of any proposal emerging from the Government's study on compulsory retirement protection schemes.
MR GILBERT LEUNG (in Cantonese): Mr Deputy President, the Secretary stressed in the last paragraph of her reply that the Public Assistance Scheme would be included in the comprehensive review of the policy on care for the elderly. A motion was passed by this Council in November last year, urging the Government to revise as soon as possible its overall policy for the elderly so as to secure the quality of living of the aged citizens now and in the future. Will the Administration inform this Council of the present progress of the comprehensive review on the policy for the elderly and when the findings will be publicized?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the Administration is currently studying the various implications of change and will announce the findings of the study group at the appropriate time, but in any case as soon as possible.
DR LAM KUI-CHUN: Mr Deputy President, has the Administration objectively assessed, from the recipient's angle, the adequacy of Public Assistance to single elderly people, and if yes, what are the results, or if no, why not?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, as I said in my main reply, the foundation and the principle behind the Public Assistance Scheme was very recently reviewed. It was recently reviewed in the context of the White Paper and the concept of need was re-established and confirmed after extensive consultation with the people of Hong Kong.
MR TAM YIU-CHUNG (in Cantonese): Mr Deputy President, will the Government consider borrowing the experience of foreign countries of setting the Public Assistance payments at 25% of the median wage, that is, $1,500 per month for singletons, so as to meet the needs of such recipients?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I did say in the main reply that the concept of our Public Assistance Scheme is based on need; it is not pegged to any wage or the median wage. The concept of need, alongside with other concepts, was established after extensive consultation at the time when the White Paper was the subject of consultation.
MR FREDERICK FUNG (in Cantonese): Mr Deputy President, when the Public Assistance Scheme was introduced in 1976, the Public Assistance payment was at 24.3% of the median monthly income of a single person. In August 1991, this percentage dropped to 12.4%. In the context of the general living standards of Hong Kong people, the percentage of the median income at which the recipients may get as Public Assistance payment has dropped by almost 100%. The Secretary replied just now that the Public Assistance payment is pegged not to wages but "need". Would the Secretary enlighten me as to whether "need" refers to subsistence or the basic standards of living accepted by society? Why did the percentage drop by 100%?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the objective of the Public Assistance Scheme is to ensure that the basic and special needs of the recipients are met. The present system of basic rates, supplements, allowances and special grants would meet this very objective of need. Pegging the public assistance rates to the median wage might mean that the needs of the recipients might not be fully taken account of, particularly when there is a downturn in the economy.
MR FRED LI (in Cantonese): Mr Deputy President, I would like the Secretary to answer a very simple question. If we divide the basic rate of $825 by the number of days, the average is $27.50 a day. How can an elderly person make use of these $27.50 if he is to meet his expenses of three meals a day, transport and social activities in Hong Kong today?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the basic rate is only one of the many component parts which make up the Public Assistance Scheme. The basic rate is to cover essential needs such as food, fuel and clothing, currently at $825 per person per month. Additional to that, there are other supplements to cover
personal rate arising out of that particular person's individual circumstances. For
example, an elderly person would be getting an old age supplement additional to the basic rate. If on top of that he needs special care, he gets a higher disability allowance; if he needs dentures, that is fully reimbursed; and if he needs medical care, that also is fully reimbursed. Looking at the components of the scheme, which include the basic rate of $825 per month, a rent allowance of $743 per month, a
long-term supplement of $1,050 per annum, an old age supplement ranging from $413 per month to $470 per month based on individual circumstances, a disability supplement ranging $820 to $1,650 per month, and other special grants and supplements including an allowance for special diets, such as an additional $270 per month or a higher diet allowance of $525 per month if the recipient has diabetes or requires a special diet, one will see that the whole package of the Public Assistance Scheme is tuned, and indeed fine-tuned, to be responsive to the particular circumstances of the recipient who is falling within the network of the Public Assistance Scheme.
Subscription television and television broadcasting
6. MR FRED LI asked (in Cantonese): Regarding the policies on subscription TV and 6. MR FRED LI asked (in Cantonese): Regarding the policies on subscription TV and TV broadcasting recently endorsed by the Government, will the Government inform this Council:
(a) of the reasons for removing the stipulation that the operator of a mass medium (a) of the reasons for removing the stipulation that the operator of a mass medium shall not own more than 15% of the share capital of another medium;
(b) whether the measure of allowing the STAR TV to provide subscription TV services (b) whether the measure of allowing the STAR TV to provide subscription TV services and some Cantonese broadcasting as from October 1993 will have negative effects on the "exclusive right" to be granted to the first subscription TV operator for three years; and on what basis the terms of operation of subscription TV are set; and
(c) whether all re (c) whether all re whether all recommendations of the consultants commissioned to conduct a deta commendations of the consultants commissioned to conduct a detailed study on the policy regarding subscription TV have been accepted by the Government; and if not, which recommendations have not been accepted?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, Mr LI's question raises three distinctly different elements in the recently announced policy on Hong Kong's television industry. I shall deal with them one by one.
First, on cross-media ownership, I think Mr LI has misunderstood the policy. The First, on cross-media ownership, I think Mr LI has misunderstood the policy. The policy is not to remove the existing restriction on cross-media ownership entirely.
What the policy aims to do is to waive the existing cross-media ownership restriction only in respect of the local television licence and not (I emphasize not) to remove the restriction completely as it applies to the industry as a whole. This means that the present restriction still applies to the existing broadcasters.
The reasons for doing this are threefold:
(a) Firstly, Hong Kong's existing broadcasting ind (a) Firstly, Hong Kong's existing broadcasting ind Firstly, Hong Kong's existing broadcasting industry is sufficiently varied, ustry is sufficiently varied, mature and wide-ranging to have any risk of a monopolistic situation developing. At present Hong Kong has two terrestrial wireless television stations, two commercial radio stations, one satellite television station, and one public broadcasters. Between them they provide a wide range of information and programmes.
(b) Secondly, it is in the public interest to encourage as many companies as poss (b) Secondly, it is in the public interest to encourage as many companies as possible to come forward to bid for the future pay TV licence.
(c) Thirdly, by allowi (c) Thirdly, by allowi Thirdly, by allowing existing broadcasting companies to bid for the pay TV li ng existing broadcasting companies to bid for the pay TV licence, the future pay TV station will benefit from drawing on available experience and expertise in the industry.
As regards the second question, the recently announced policy stipulates that only one local pay TV licence would be issued initially, and the licensee would be granted exclusivity for a period of three years from the date of issue of the licence. At the same time, STAR TV would be permitted to provide a satellite-based subscription TV service on a regional basis. But this permission is given subject to the following conditions:
(1) the subscription service would have to be in addition to STAR TV's existing (1) the subscription service would have to be in addition to STAR TV's existing free-to-air service;
(2) this service would not be permitted to be introduce (2) this service would not be permitted to be introduce this service would not be permitted to be introduced into Hong Kong before Oc d into Hong Kong before October 1993;
(3) no Cantonese programmes would be allowed on this service during the three- (3) no Cantonese programmes would be allowed on this service during the three-year exclusivity period of the local pay TV licensee; and finally
(4) this service would be subject to the same regulatory framework as wo (4) this service would be subject to the same regulatory framework as wo this service would be subject to the same regulatory framework as would apply uld apply to the future local pay TV licensee, on aspects such as royalty payments, carriage
of advertisements, and so on.
Furthermore, satellite master antenna operators would not be allowed to collect subscription fees either direct or as an agent of STAR TV when delivering this satellite pay TV service to homes in Hong Kong. STAR TV would have to set up its own marketing network or, as is common in many other places, come to an arrangement with the local pay TV licensee to make use of the latter's delivery network. I believe that with these conditions the possible adverse impact on the future local pay TV licensee of allowing STAR TV to provide a regional satellite-based subscription service are minimized, and in my judgement the local pay TV service should still be viable. The lifting of the restriction on Cantonese programming on three of STAR TV's existing five free-to-air channels is unlikely to have any significant impact on the future local pay TV licensee.
Mr LI has also asked after the basis on which the terms of the pay TV licence Mr LI has also asked after the basis on which the terms of the pay TV licence rest. These terms are based on the principles of providing the future local pay TV licensee with maximum flexibility within an equitable operating environment. Much would be left to the market to put forth proposals on what it perceives to be the optimal operational framework, with minimum initial direction from the Government. A flexible approach has therefore been adopted in setting up the licensing framework, in terms of delivery technology, geographical coverage, programming, subscription rates, and so on, but some initial protection is given in the form of a three-year exclusivity and a graduated royalty scale based on penetration. However, once a
licence is issued, the licensee would be bound by the terms of the licence, and would be subject to penalty if these terms were breached.
On the third question, I would like to point out that the consultants whom we have commissioned in the course of the review were only asked to conduct an economic analysis of the TV industry in Hong Kong and not to make policy recommendations. Thus the question of accepting or rejecting any recommendations made by the consultants does not arise.
The consultants' findings have been very useful and provided a sound base for policy deliberations. In addition to economic considerations, the review took into account a range of other relevant factors, including the compatibility of the licensing framework for pay TV with the present general regulatory framework on the existing TV broadcasters, the objective of offering the public the widest possible television choice at a reasonable cost, the desirability to maintain a healthy
competitive environment in the industry and last but not least continuing technological development.
MR FRED LI (in Cantonese): Mr Deputy President, what are the Administration's reasons for reducing the royalty of ATV and TVB by 2% and at the same time allowing STAR TV to provide subscription TV services in October next year?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, the reason for reducing the royalty of TVB and ATV by two percentage points on their existing royalty scale is based on the findings of the economic analysis that has been done by our consultant. The findings indicate to us that by allowing STAR TV to broadcast in Cantonese in some or all of its existing free-to-air channels there will be a certain impact on TVB and ATV with regard to their net advertising revenue in respect of which the economic analysis has assessed 2% to be the right level of impact.
The reason for allowing STAR to broadcast a subscription service has, I think, been clearly explained in my main reply. The reason is simply that STAR TV has an intention to introduce a satellite subscription service for the region as a whole and it would be absurd to single out and exclude the Hong Kong audience from this service when STAR introduces it for the region. Furthermore, whilst we accept that by allowing STAR to introduce a subscription service for the region which covers Hong Kong would have some impact on the local television industry, we have introduced a whole series of conditions, which I have outlined in my main reply, to ensure that this impact is reduced to a minimum. And I believe that with the introduction of these conditions the impact on the existing television industry in Hong Kong would be reduced to an acceptable level.
Written answers to questions
Corporatization or privatization of goverment departments
7. DR HUANG CHEN-YA asked: Will the Governme 7. DR HUANG CHEN-YA asked: Will the Governme DR HUANG CHEN-YA asked: Will the Government inform this Council: nt inform this Council:
(a) which government departments or government services have been (i) corporatized (a) which government departments or government services have been (i) corporatized or (ii) privatized by the Government respectively in the past ten years; and
(b) whether any assessment has been made by the Government on the impa (b) whether any assessment has been made by the Government on the impa whether any assessment has been made by the Government on the impacts which cts which corporatization/privatization had on the operational efficiency and cost effectiveness of the services concerned; if so, what data are available to support the relevant findings?
SECRETARY FOR THE TREASURY: Mr Deputy President, the only government department that has been corporatized during the past 10 years is the Kowloon-Canton Railway (1982). No government department or public service has been privatized during this period, although some public services have been let out by contract to the private sector. Some examples of contracting out are government car parks (1984), the government abattoir at Kennedy Town (1990) and the Aberdeen Tunnel (1991).
With regard to the second part of the question, a recent review of Kowloon-Canton Railway shows that the Corporation has coped effectively with an average annual growth rate of 14% in the number of passengers since 1984, whilst being able to contain fare increases during this period to below the rate of inflation, thanks to the exercise of tight control over expenditure. The overall operating performance of the
Corporation has also improved steadily. Before the KCR was corporatized it was running at a loss. In the second year of its corporate existence (1985), however, it generated a 2% return on net assets. Last year, it produced a healthy return of 8%.
Information on police officers passed to the ICAC
8. MR JAMES TO asked: Will the Government inform this Council whether arrangements 8. MR JAMES TO asked: Will the Government inform this Council whether arrangements are made by the Royal Hong Kong Police Force to furnish the Independent Commission Against Corruption (ICAC) with personal particulars and photographs of all police officers on a regular basis; if so, what the reasons for such arrangements are; how the ICAC deals with records of those police officers who have retired or resigned from the Force; and whether the Administration will review these arrangements to ensure that they will not violate the Bill of Rights Ordinance?
SECRETARY FOR SECURITY: Mr Deputy President, there are no arrangements for the Royal Hong Kong Police Force to furnish the Independent Commission Against Corruption (ICAC)
with the personal particulars and photographs of all police officers on a regular basis.
The police do, however, pass on information concerning police officers to the ICAC where that information is required by the ICAC for specific investigations. There is a tight security system within the ICAC to protect such records from any possible misuse or abuse. Such records are regularly screened to remove unwanted and irrelevant material from them.
The Administration believes that this practice of passing information to ICAC for specific investigations is not inconsistent with the Bill of Rights Ordinance.
Public assemblies and processions
9. MR ERIC LI asked: As the Public Or 9. MR ERIC LI asked: As the Public Or MR ERIC LI asked: As the Public Order Ordinance provides that prior notice or der Ordinance provides that prior notice or application to the Police is required for the holding of public assemblies and processions, will the Government inform this Council whether these requirements conflict with the provision in the Bill of Rights Ordinance which safeguards residents' right of peaceful assembly; and if so, when the relevant legislative amendments will be introduced into this Council?
SECRETARY FOR SECURITY: Mr Deputy President, whether a particular provision in a law contravenes the Bill of Rights Ordinance is ultimately a matter for the courts to determine.
The Public Order Ordinance is now under review. The provisions of the Bill of Rights Ordinance will be taken into account in that review. We have not yet come to any conclusions.
Central and Wan Chai reclamation
10. DR SAMUEL WONG asked: With the formation of an embayment area for the Central 10. DR SAMUEL WONG asked: With the formation of an embayment area for the Central and Wan Chai reclamation works, will the Government inform this Council what mitigation measures will be undertaken to ensure that the environmental impact on water and air will be kept to the minimum as a result of such embayment?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the Central and Wan Chai reclamation Phase I contract is scheduled to commence in November 1992. The following mitigation measures will be undertaken to minimize the environmental impact on water:
(a) as recommended by the Sewage Master Plan Study, work on a new sewer to supple (a) as recommended by the Sewage Master Plan Study, work on a new sewer to supplement the existing sewer in Jubilee Street will start in August 1992;
(b) the Connaught Road Central trunk sewer will be de-silted to increase capacity; (b) the Connaught Road Central trunk sewer will be de-silted to increase capacity;
(c) manhole inspections, aimed at identifying sewerage and drainage connexions which (c) manhole inspections, aimed at identifying sewerage and drainage connexions which need to be re-directed, will be conducted; and
(d) stormwater outfalls, which ca (d) stormwater outfalls, which ca stormwater outfalls, which carry considerable pollution as well as much of the rry considerable pollution as well as much of the cooling water discharged from nearby commercial buildings, will be extended to discharge outside the reclamation area.
Specifications for water pollution control have been included in the contract. These specifications include equipment types for dredging and disposing of mud, water quality monitoring and maximum pollutant levels. Should these specifications be breached, the contractor will be directed to undertake remedial measures.
Regarding air quality, the contract specifications provide for controls on dust Regarding air quality, the contract specifications provide for controls on dust from construction activities. These include restrictions on the storage of cement and the prohibition of concrete batching and rock crushing in the main works area. The requirement on the contractor to use marine sand as reclamation material and marine based reclamation equipment will also minimize the number of construction vehicles passing through Central District.
In addition, a focused environmental impact assessment is currently being carried In addition, a focused environmental impact assessment is currently being carried out to examine the possible need for further measures to minimize environmental impact during and after construction of the Central Reclamation Phase I works. This assessment will be completed in August 1992 and submitted to Environmental Pollution Advisory Committee. Where necessary, recommendations from this Environment Impact Assessment will be included in environmental protection clauses in the contract tender document in the form of tender addenda or variation orders.
Open employment for the mildly mentally handicapped
11. MR LAU CHIN-SHEK asked: With regard to open employment arrangements for the m 11. MR LAU CHIN-SHEK asked: With regard to open employment arrangements for the mildly mentally handicapped after completion of nine years of free education, will the Government inform this Council of the following:
(a) whether (a) whether whether the Hong Kong Government, as the largest employer in Hong Kong, has, the Hong Kong Government, as the largest employer in Hong Kong, has, in its recruitment policy, considered giving priority to the employment of suitable though mildly mentally handicapped persons, so as to set an example and encourage the local business sectors to employ such people;
(b) whether the Government has, before implementing the policy on importation (b) whether the Government has, before implementing the policy on importation of labour, considered exploring the potential labour pool of mildly mentally handicapped persons and encouraging the business community to place more of them in unskilled jobs;
(c) the number of cases of mentally handicapped persons seeking assistance from (c) the number of cases of mentally handicapped persons seeking assistance from the Labour Department's Selective Placement Division in each of the past 3 years; of these, the respective numbers successfully placed in open employment; and
(d) whether the Government has reviewed the effectiveness of open employment (d) whether the Government has reviewed the effectiveness of open employment arrangements made by the Selective Placement Division for the mentally handicapped; and whether additional services will be provided to help place such persons in open employment?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the answers to Mr LAU's questions, in the order in which they are asked, are as follows:
(a) The Government's policy on the employment of mildly mentally handicapped persons (a) The Government's policy on the employment of mildly mentally handicapped persons is in line with its general policy on employment of disabled persons in the Civil Service, which is to place the disabled in appropriate jobs within the Civil Service wherever possible. As with other candidates, mentally handicapped persons applying for appointment to the Civil Service have to comply with the stipulated entry
requirements. If they are found suitable for appointment, they are given an appropriate degree of preference for appointment over other candidates. The Labour Department provides a free Selective Placement Service to mildly mentally handicapped
persons and refers suitable job seekers to the relevant government departments for job interviews.
(b) The Government is always aware of the availability of disabled persons as a s (b) The Government is always aware of the availability of disabled persons as a source of labour supply. Staff of the Selective Placement Service visit employers regularly to advise them of the employability of mildly mentally handicapped persons and to make use of its service to employ such persons to fill their vacancies. Every year, the Selective Placement Service organizes a number of promotional activities to
enhance the employment opportunities of disabled persons. Such activities include exhibitions, presentation of souvenirs to employers who employed the largest number of disabled employees and the publication of pamphlets and newsletters to keep the public aware of the potential labour force provided by the disabled population.
(c) The Selective Placement Service provides employment assistance to the mildly and (c) The Selective Placement Service provides employment assistance to the mildly and moderately mentally handicapped. The number of registrations of such persons, referrals for job interviews and placements in employment for the years 1989 to 1991 are as follows:
1989 1990 1989 1990 1991
Registrations 315 Registrations 315 342 336
Referrals 421 Referrals 421 345 279
Placements 227 Placements 227 206 175
(d) Since the establishment of the Selective Placement Division in 1980, the (d) Since the establishment of the Selective Placement Division in 1980, the operation, policy and effectiveness of the service have been put under regular review. It has been found that the present system of placing disabled job seekers into open employment is fairly comprehensive and effective. Public consultation on the Green Paper on Rehabilitation entitled "Equal Opportunities and Full Participation : A Better Tomorrow for All" ended last month. A number of options for promoting the open employment of disabled persons, including the mildly mentally handicapped, have been suggested. The Labour Department will have regard to these options in its next regular review.
Rainstorm warning system
12. MR HENRY TANG asked: On the Rainstorm Warning System, will 12. MR HENRY TANG asked: On the Rainstorm Warning System, will MR HENRY TANG asked: On the Rainstorm Warning System, will the Government inform the Government inform this Council:
(a) the number of times in the past five years when rainfall reached 50 mm within (a) the number of times in the past five years when rainfall reached 50 mm within an hour and 100 mm within two hours, and whether any of them occurred when typhoon signal number 8 or above was hoisted; and
(b) the r (b) the reasons for not making it a rule to postpone all public examinations when easons for not making it a rule to postpone all public examinations when the "red" warning is issued?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the answers to Mr TANG's questions are as follows:
(a) During the past five years, there wer (a) During the past five years, there wer During the past five years, there were seven occasions when rainfall over 10 e seven occasions when rainfall over 10 telemetering raingauges in Hong Kong reached or exceeded 50 mm within an hour, and only one occasion when it reached or exceeded 100 mm within two hours. (See Footnote). None of these eight occasions occurred when typhoon signal number 8 or above was hoisted.
(b) Public examinations are run in Hong Kong by the Hong Kong Examinations Authority (b) Public examinations are run in Hong Kong by the Hong Kong Examinations Authority (HKEA), either in its own right or on behalf of overseas examinations bodies. The reasons for not making it a rule to postpone all public examinations when the Red Rainstorm Warning is issued are as follows:
(i) under the new Contingency Plan for Natural Disasters, the issue of a Red Rain (i) under the new Contingency Plan for Natural Disasters, the issue of a Red Rainstorm Warning by the Royal Observatory (RO) does not impose a requirement on relevant government departments/public authorities to close or postpone services automatically. Each department/authority must assess other important factors such as traffic conditions, transport availability and timing of the RO's announcement before deciding what action to take;
(ii) the scheduling of examinations is very carefully orchestrated to ensure (ii) the scheduling of examinations is very carefully orchestrated to ensure absolute fairness and prevent cheating. Any postponement is undesirable and every effort is made to avoid it. This is particularly important for overseas examinations since their scheduling is co-ordinated with the timing of the same examination in other parts of the world so as to prevent cheating by, for example, passing questions
and answers to candidates in other countries by telephone or facsimile;
(iii) per (iii) persons sitting for public examinations are usually at least 16 years old sons sitting for public examinations are usually at least 16 years old and better able to take care of themselves in adverse weather conditions than younger students, especially kindergarten and primary school children;
(iv) once underway, every effort mu (iv) once underway, every effort mu once underway, every effort must be made to bring an examination to its st be made to bring an examination to its conclusion for reasons of security and fairness. Rescheduling the examination would require a completely new set of examination papers to be prepared. Again this is particularly difficult for overseas examinations.
For all these reasons, it is not practical or feasible for the HKEA to postpone examinations automatically upon the issue of a Red Rainstorm Warning. Nevertheless, when such a warning is issued prior to 7 am (the time at which question papers are released by the HKEA for distribution to examination centres) on the morning of an examination, the HKEA will give careful consideration to the feasibility of
postponing the examination, taking all factors into account. Similarly, consideration will be given to postponing afternoon examinations when sufficient warning is given by the RO.
Note: Currently, the criterion for issuing the Red Rainstorm Warning is "Whenever Note: Currently, the criterion for issuing the Red Rainstorm Warning is "Whenever 50 mm or more of rain have been received by 10 or more raingauges in Hong Kong within a 60-minute period". The criterion for issuing the Black Rainstorm Warning is "Whenever 100 mm or more of rain have been received by 10 or more rain gauges in Hong Kong within a 120-minute period".
Land sales revenue
13. MR GILBERT LEUNG asked: Will the Gov 13. MR GILBERT LEUNG asked: Will the Gov MR GILBERT LEUNG asked: Will the Government inform this Council: ernment inform this Council:
(a) in respect of the revenue from land sales, rates, stamp duty and property (a) in respect of the revenue from land sales, rates, stamp duty and property tax for the years 1989-90, 1990-91 and 1991-92, of the actual yield and the original estimates;
(b) of the revenue generated in 1991-92 by the ad (b) of the revenue generated in 1991-92 by the ad of the revenue generated in 1991-92 by the additional 5.9 hectares of ditional 5.9 hectares of residential land granted by the Sino-British Land Commission;
(c) of the percentage rise in property prices (which have a direct bearing on (c) of the percentage rise in property prices (which have a direct bearing on the revenue from land sales) in 1991-92; and
(d) in view of the proceeds from land sale (d) in view of the proceeds from land sale in view of the proceeds from land sales for the first two months of 1992-93 s for the first two months of 1992-93 having reached $1,866.65 million, which amounts to over 20% of the estimated revenue ($8,630 million) from this source, whether the Administration would agree that the figure in the original forecast is too conservative and that it should be reassessed?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, (a) The information is set out in the Annex. (a) The information is set out in the Annex.
(b) The revenue realized from the sale of the additional 5.9 hectares of land was (b) The revenue realized from the sale of the additional 5.9 hectares of land was $2,499.2 million.
(c) Information available to the Rating and Valuation Department shows that property (c) Information available to the Rating and Valuation Department shows that property prices of domestic units, offices, retail premises and flatted factories on a territory-wide basis, increased by 50%, 15%, 35% and 15% respectively in 1991-92. The prices of pre-sold uncompleted properties are not included in this analysis.
(d) Since the timing for land sales is not spread evenly throughout the year and the (d) Since the timing for land sales is not spread evenly throughout the year and the premia received for different sites vary considerably, land sale proceeds for only the first two months of the financial year is unlikely to be an accurate guide to the full year total. It would therefore be premature to judge whether our revenue estimate is too "conservative". The Government will continue to monitor the land sale programme and will, in the normal course, prepare revised revenue estimates in the light of actual land sales proceeds.
Annex
1989-90 1990-/91 1989-90 1990-/91 1990-/91 1991-92 1991-92
Original Actual Original Actual Original Original Original Actual Original Original Original Actual
estimate revenue estimate revenue revenue estimate estimate estimate revenue revenue revenue estimate estimate estimate revenue revenue
($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)
Land sales 7,941 Land sales 7,941 8,524 5,820 4,351 4,070 13,925
Rates 1,625 Rates 1,625 1,663 3,016 3,039 3,520 3,494
Stamp duty 4,670 Stamp duty 4,670 5,464 5,400 5,939 5,299 9,569
Property tax 940 Property tax 940 953 1,040 1,138 1,270 1,230
Crown Lands Resumption Ordinance
14. MR LAU WONG-FAT asked 14. MR LAU WONG-FAT asked MR LAU WONG-FAT asked: In view of the number of disputes arising from the fre : In view of the number of disputes arising from the frequent application of the Crown Lands Resumption Ordinance by the Government recently to resume private land and the criticisms that powers conferred on the Government by that Ordinance are excessive, hence causing unfairness to landowners, will the
Government inform this Council:
(a) how many times the Ordinance has been invoked in the last 3 years for land (a) how many times the Ordinance has been invoked in the last 3 years for land resumption; why it was necessary to invoke the Ordinance; what specific purposes these lands were resumed for; and
(b) whether there are any plans to review this Ordinance which has been in place (b) whether there are any plans to review this Ordinance which has been in place for some time in order to bring it in line with the developments of society; if so, what the specific plans are; if not, why not?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the Crown Lands Resumption Ordinance is used to resume private land for a public purpose. The Ordinance was invoked on 56 occasions in the financial years 1989-90, 1990-91 and 1991-92. The specific purposes for the projects are set out below.
Summary for New Territories Projects
Purpose No. of projects Purpose No. of projects
Drainage/sewerage 15 Drainage/sewerage 15
Village expansion/resite area 9 Village expansion/resite area 9
Pylon construction 5 Pylon construction 5
New town development 4 New town development 4
Water supplies/mains laying 2 Water supplies/mains laying 2
Borrow area Borrow area 2
Landfill 2 Landfill 2
Rural/local centre 2 Rural/local centre 2
Others (new airport, hospital, stream
improvement, relocation of shipyards,
village landscape areas, amenity facilities) 6 village landscape areas, amenity facilities) 6
---
47
--- ---
Summary for Urban Projects
Urban Council project 4 Urban Council project 4
Urban renewal/improvement 3 Urban renewal/improvement 3
Implementation of Outline Zoning Plan 2 Implementation of Outline Zoning Plan 2
---
9
--- ---
Total Number 56 Total Number 56
==
The above does not include resumptions under the Roads (Works, Use and Compensation) Ordinance.
The report of the Special Committee on Compensation and Betterment, which has The report of the Special Committee on Compensation and Betterment, which has been produced in connection with the current review of the Town Planning Ordinance, includes a recommendation that the Crown Lands Resumption Ordinance should also be reviewed. The Administration agrees that some parts of the Ordinance may need to be brought up to date. A review is therefore likely to be undertaken after work on
the Town Planning Ordinance has been completed. Any such review will take account of the fact that the present mixture of statutory and ex-gratia arrangements for resumption compensation generally works well, as witnessed by the small number of cases going before the Lands Tribunal.
Briefing out of prosecution
15. DR LEONG CHE-HUNG asked: Will the Attorney General advise this Counc 15. DR LEONG CHE-HUNG asked: Will the Attorney General advise this Counc DR LEONG CHE-HUNG asked: Will the Attorney General advise this Council:
(a) of the reasons for instructing lawyers in private practice to conduct the (a) of the reasons for instructing lawyers in private practice to conduct the prosecution of a barrister and a solicitor in the High Court Criminal Case No. 280 of 1991, as opposed to the Legal Department handling the prosecution; and
(b) the costs e (b) the costs e the costs entailed in briefing out this prosecution. ntailed in briefing out this prosecution.
ATTORNEY GENERAL: Mr Deputy President,
(a) The principal witness giving evidence for the Crown in that particular case was (a) The principal witness giving evidence for the Crown in that particular case was a former senior officer of the Legal Department while a number of other Crown witnesses were officers of the Department who had in the past worked under the principal witness. The independence and impartiality of the prosecution could have been put in doubt if it had been handled by counsel of the Department. It was therefore necessary to instruct lawyers in private practice to conduct the prosecution.
(b) The total cost entailed in briefing out the prosecution of this case, which l (b) The total cost entailed in briefing out the prosecution of this case, which lasted for 161 hearing days, was $22.9 million.
Localization of the Civil Service
16. DR LEONG CHE-HUNG aske 16. DR LEONG CHE-HUNG aske DR LEONG CHE-HUNG asked: Given the Government's commitment to the localization d: Given the Government's commitment to the localization of the Civil Service, will the Secretary for the Civil Service advise this Council of the reasons for the continued employment of 60 Chief/Senior Engineers and Chief/Senior Geotechnical Engineers in the Civil Engineering Department, on overseas agreement terms?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, the Government is fully committed to implementing the policy on localization. Preference is given to qualified and suitable local candidates on recruitment. Appointments on overseas terms are made only when suitable local candidates are not available in sufficient numbers. All appointments are subject to the advice of the Public Service Commission, which has a role in ensuring that the claims of local candidates receive full consideration. Since 28 March 1985, overseas officers have been appointed on agreement terms only. Renewal of agreement is subject to, inter alia, operational need, whether a suitable local replacement is available, and whether any promotion blockage would be caused to local officers. These criteria are clearly laid down in Civil Service Regulations. The advice of the Public Service Commission is sought on each and every case.
As regards the Engineer grade under the central authority of Director of Civil As regards the Engineer grade under the central authority of Director of Civil Engineering, there are altogether (as at 1 July 1992) 226 officers in the Chief/Senior ranks, serving in six main departments (see Annex). Forty-six of these officers are on overseas agreement terms, which represents 20% of the total strength in those ranks. These overseas agreement officers were appointed because of proven difficulties in recruiting suitable qualified local candidates. It should be noted that, with the implementation of PADS projects, the need for trained Engineers has increased.
Nevertheless, we are adhering to the criteria laid down in Civil Service Regulations in examining the need for renewal of contracts on a case by case basis.
As regards the Geotechnical Engineer grade, there are altogether (as at 1 July As regards the Geotechnical Engineer grade, there are altogether (as at 1 July 1992) 42 officers in the Civil Engineering Department and Architectural Services Department in the Chief/Senior ranks. Of these, 13 are on overseas agreement terms, representing 31% of the strength in those ranks. There has always been great
difficulty in recruiting suitable local candidates with a geotechnical background and, with the agreement of Public Service Commission, the department has had to recruit overseas candidates for the grade. In view of the inadequate supply of local candidates and an increase in wastage, at present overseas officers' agreements are being renewed in order to retain the necessary expertise and experience, and thus provide a satisfactory standard of service to the public. But again each case has to be examined under the relevant Civil Service Regulations.
Annex
List of departments with large Engineer grade establishments under the central authority of Director of Civil Engineering
Civil Engineering Department
Drainage Services Department
Highways Department Highways Department
Territory Development Department
Transport Department
Works Branch/NAPCO
First-year first-degree places
17. MR MICHAEL HO asked: In view of Government's decision to reduce the planning 17. MR MICHAEL HO asked: In view of Government's decision to reduce the planning target of first-year first-degree places in tertiary institutions by 500 by 1994-95 and the present acute shortage of manpower in the nursing profession, will the Administration inform this Council:
(a) whether the number of first-year places originally included in the 1992- (a) whether the number of first-year places originally included in the 1992- 93 expansion programme of the Nursing Degree Course in the Hong Kong Polytechnic will be reduced and, if so, what the reasons for its reduction are and what its effect on the student intake of the course for 1993-94 and thereafter will be; and
(b) whether the existing number of first-year (b) whether the existing number of first-year whether the existing number of first-year places of this course, which was places of this course, which was determined in 1990, will also be affected?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, on 3 June 1992, I replied in this Council to a question asked by Mr TIK Chi-yuen regarding the Government's decision to adopt a revised planning target of 14 500 first-year, first-degree ( FYFD ) places for 1994-95. I advised then that the details of how the new target should be phased in over the next three academic years were being discussed between the University and Polytechnic Grants Committee (UPGC) and the tertiary education institutions, in the context of the latter's revised academic development proposals for the 1992-95 triennium.
The Hong Kong Polytechnic has incorporated in its revised academic proposals for The Hong Kong Polytechnic has incorporated in its revised academic proposals for 1992-95 some changes to the intakes originally planned for first-degree courses in certain programmes. These include the full-time BSc course in Nursing in respect
of which a reduction of 10 places in 1992-93 is proposed.
The revised academic proposals put forward by the Hong Kong Polytechnic and o The revised academic proposals put forward by the Hong Kong Polytechnic and other institutions are being examined by the UPGC. On Nursing courses, I have advised the Committee that the Secretary for Health and Welfare and I are firmly of the opinion that, in the light of improvements being introduced in the public health and hospital services, there should not be any reduction in student intake. I have been assured that the Committee will take this into account when considering course proposals in Nursing.
As regards the second part of Mr HO's question, the revised planning target has As regards the second part of Mr HO's question, the revised planning target has no effect on the number of first-year first-degree Nursing places offered in the 1991-92 academic year.
Unlawful assembly
18. MR JAMES TO asked: Section 8(d) of the Summary Offences Ordi 18. MR JAMES TO asked: Section 8(d) of the Summary Offences Ordi MR JAMES TO asked: Section 8(d) of the Summary Offences Ordinance states that nance states that it is an offence for a person to assemble together with other persons in the night time without lawful excuse; or seeing any such illegal assembly, or knowing or having reason to suspect that such assembly has taken place or is about to take place, not to give immediate notice thereof to the nearest police station or to a police officer. Will the Government inform this Council:
(a) whether there have been arrests or prosecutions made under this section; (a) whether there have been arrests or prosecutions made under this section;
(b) if so, what the details of (b) if so, what the details of if so, what the details of these cases are and if there are cases whether these cases are and if there are cases whether prosecutions were not initiated after arrests had been made, what the reasons for not doing so are; and
(c) whether there is action in hand for revising this section? (c) whether there is action in hand for revising this section?
SECRETARY FOR SECURITY: Mr Deputy President, the present section 8(d) of the Summary Offences Ordinance was enacted in 1932. As for the details of those cases prosecuted,
I am unable to provide them at this stage as it will involve extensive research into all the individual case files. The police computer system does not keep statistics for this relatively minor offence. To obtain details of past cases would entail extensive and very time-consuming scrutiny of manual records going back many years. There may have been arrests and prosecutions under this section in the past, but I believe there have not been any in recent years.
We are intending to review the provisions of the Summary Offences Ordinance as a whole. Some of the provisions are outdated and in need of change. But this review will take some time, and we have not yet reached any conclusions.
Bail jumping
19. DR CONRAD LAM asked: Will the Government inform this Council: 19. DR CONRAD LAM asked: Will the Government inform this Council:
(a) of the number of defendants who have jumped bail in each of the past five (a) of the number of defendants who have jumped bail in each of the past five years, together with a breakdown of the various offences they involved; and
(b) whether the enactment of the Bill of Rights (BOR) has any effect on the (b) whether the enactment of the Bill of Rights (BOR) has any effect on the granting of court bail; and whether the number of jump bail cases has increased since its enactment?
SECRETARY FOR SECURITY: Mr Deputy President, an arrested person may be granted bail by a court at different stages of the prosecution process. We do not have readily available statistics of the number of defendants who have jumped bail at these different stages in each of the past five years; such statistics could only be produced through a very laborious and time-consuming retrieval of individual case records. We do, however, have statistics in relation to persons who have been sentenced for an offence during the past three years. These statistics are at Annex A.
Article 5(3) of the Bill of Rights enshrines in legislative form what has always been the general principle in granting bail, that is, that since accused persons are to be presumed innocent until proved guilty, they should be released pending trial, subject to appropriate conditions, unless there are valid reasons for not
doing so. Annex B shows the number of sentenced defendants who have jumped bail during the three-month period immediately before the enactment of the Bill of Rights
Ordinance in June 1991 and for the six-month period thereafter. From the limited statistics available, it is not possible to reach any firm conclusions as to what effect, if any, the Bill of Rights has on the granting of bail or on the number of persons jumping bail.
Annex A
Statistics on persons jumping bail (1989-1991)
Year 1989 Year 1989 1990 1991
(Jan -- Sept) (Apr -- Dec) (Jan -- Sept) (Apr -- Dec)
Type of crime A Type of crime A B A B A B
Violent crime 6 486 Violent crime 6 486 94 4 887 60 4 629 53
Preventive crime 2 575 Preventive crime 2 575 61 2 177 67 1 931 39 Other major crime 22 818 Other major crime 22 818 383 16 327 361 15 567 276
Minor crime 16 313 Minor crime 16 313 141 13 889 144 15 786 149
Total 48 192 Total 48 192 679 37 280 632 37 913 517
Notes:
1. Column A: 1. Column A: Column A: Total number of persons sentenced for the offence during the period. Total number of persons sentenced for the offence during the period.
2. Column B: 2. Column B: Column B: Total number of persons who have been sentenced for the offence and Total number of persons who have been sentenced for the offence and who have jumped bail before the conclusion of their respective proceedings.
3. The recording of statistics from October 1990 to March 1991 was temporarily 3. The recording of statistics from October 1990 to March 1991 was temporarily suspended for review of the statistical system.
Annex B
Statistics on persons jumping bail in 1991 (Apr -- Dec)
Period Apr -- June Period Apr -- June Apr -- June July -- Sept July -- Sept July -- Sept Oct -- Dec Oct -- Dec
Type of crime A Type of crime A B A B A B
Violent crime 1 465 Violent crime 1 465 21 1 556 13 1 608 19
Preventive crime 724 Preventive crime 724 14 638 11 569 14
Other major crime 5 229 Other major crime 5 229 77 4 976 86 5 362 113
Minor crime 4 989 Minor crime 4 989 45 5 436 45 5 361 59
Total 12 407 Total 12 407 157 12 606 155 12 900 205
Notes:
1. Column A: 1. Column A: Column A: Total number of persons sentenced for the offence during the period. Total number of persons sentenced for the offence during the period.
2. Column B: 2. Column B: Column B: Total number of persons who h Total number of persons who h Total number of persons who have been sentenced for the offence and ave been sentenced for the offence and who have jumped bail before the conclusion of their respective proceedings.
3. The Bill of Rights Ordinance was enacted on 8 June 1991. 3. The Bill of Rights Ordinance was enacted on 8 June 1991.
Legislation on fund raising
20. MRS PEGGY LAM asked: Will the Government info 20. MRS PEGGY LAM asked: Will the Government info MRS PEGGY LAM asked: Will the Government inform this Council whether there is rm this Council whether there is at present legislation to monitor fund-raising activities for charity purposes including sales or similar activities launched through the mass media, to ensure that all money raised will be used for charity; and when there is an actual need for deductions from charitable donations in order to meet expenses for arranging these activities, to set an upper limit for deductions, so as to avoid a serious imbalance between these deductions and the proceeds for charities; and if not, whether the Government will consider enacting legislation to monitor such fund-raising activities, so as to prevent any abuse of charitable donations to meet other expenses, and to ensure that the donors' good intentions can be fulfilled?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, fund-raising activities, for
charitable or other purposes, touch upon the policy purview of a number of branches of Government.
Existing legislation to monitor fund-raising activities for charitable purposes in public places is provided through section 4(17) of the Summary Offences Ordinance (Chapter 228). It authorizes the Director of Social Welfare to issue permits to organizations organizing fund-raising activities such as flag-days. Permit-holders can deduct from the gross proceeds expenses necessary for the arrangement of the fund-raising activity. In this connection, there is an administrative provision in the case of flag-days to set the upper limit for such deduction at 10% of total proceeds.
Permit-holders are also required to submit an auditor's report within three months after the event.
There is no legislation, however, to regulate fund-raising activities for charitable purposes in the mass media or to stipulate a limit on expenses incurred for such activities. It is generally known that fund-raising events such as spectaculars and extravaganzas are staged at considerable production cost met from proceeds raised.
There is no evidence of abuse, fraud or dishonesty by fund-raisers. Nevertheless, there may be a case for requiring fund-raisers to keep and publish proper accounts, to have the accounts audited, to lodge copies with the Government and to make copies available for inspection by the public.
Statement
Exchange Fund
FINANCIAL SECRETARY: Mr Deputy President, I would like to make an important announcement concerning the Exchange Fund. As Controller of the Fund, and after consulting the Exchange Fund Advisory Committee, I have decided to publish later today a balance sheet showing the overall size of the Fund, the amount of foreign currency reserves held and the accumulated earnings. I intend to publish such a balance sheet every year from now onwards.
In reaching my decision to break with the tradition of confidentiality on this matter, I have had in mind five main considerations.
First, and very much my point of departure, I believe that public servants owe the community a duty of frankness and openness on important matters of public policy. For many years we have operated a policy of confidentiality on the Exchange Fund. We did so for good reasons. But the circumstances have changed and I am convinced that the time is now right to change this policy.
Second, Hong Kong's monetary framework has been strengthened significantly in recent years. We are now less vulnerable to speculative pressures on the exchange rate.
Third, by publishing an annual balance sheet setting out the size of the Fund and its accumulated earnings, we will be able to demonstrate unambiguously Hong Kong's impressive financial strength.
Fourth, disclosure will provide important information for credit rating agencies and prospective lenders for our infrastructural projects to enable them to make a realistic assessment of Hong Kong's credit-worthiness.
Fifth, disclosure of foreign currency reserves is very much the established Fifth, disclosure of foreign currency reserves is very much the established practice in the major market economies. Indeed, the International Monetary Fund has recommended that Hong Kong take this important step.
These are the reasons for my decision. And now I would like to explain the These are the reasons for my decision. And now I would like to explain the position of the Fund at the end of 1991. The balance sheet will show that at 31 December 1991 the Exchange Fund stood at HK$236 billion. I would like to highlight two particular figures. The first is that the accumulated earnings of the Fund amount to HK$99 billion. The second is that the total foreign currency assets in the Fund amount to US$29 billion.
I think Members will agree that these are very substantial figures. Let me put the foreign currency figure in particular into its proper perspective. At about US$29 billion, our foreign currency holdings are the 12th highest in the world, even though on a GDP basis Hong Kong would be ranked only 34th. Another way of putting it is to compare this figure with those of other economies on a per capita basis. Our per capita foreign currency holdings stand at US$5,000. This compares with an average for the OECD countries of only US$740.
The Fund's accumulated earnings of HK$99 billion should not be confused with the fiscal reserves which were approximately $76 billion at 31 December 1991. It is only the fiscal reserves that are available to be drawn upon, prudently, to meet public expenditure requirements. The Fund's role is to safeguard our exchange rate
stability.
Nor should either the Exchange Fund or the fiscal reserves be confused with the Nor should either the Exchange Fund or the fiscal reserves be confused with the Land Fund, which receives the share of land sale revenue set aside for the SAR Government. At the end of 1991, the land revenue transferred to this Fund totalled $25 billion excluding interest earned.
To make comparisons easier, I am publishing the figures for the period 1986- 90 as well as the figures for 1991. The 1992 figures will be published at about this time next year, that is, as soon as the audited accounts become available. Later this afternoon, the Director of the Office of the Exchange Fund will be holding a press briefing to explain the figures and to answer questions.
EXCHANGE FUNG BALANCE SHEET
AS AT END OF YEAR
(HKD Million)
Note 1986 Note 1986 1987 1988 1989 1990 1991
ASSETS
Foreign Currency Assets 1 Foreign Currency Assets 1 84,715 113,089 113,089 113,089 127,089 127,089 127,089 149,152 149,152 149,152 192,323 192,323 192,323 225,333 225,333 Hong Kong Dollar Assets 3,876 Hong Kong Dollar Assets 3,876 5,746 5,962 9,625 3,874 10,788 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 88,591 118,835 88,591 118,835 118,835 133,051 133,051 133,051 158,777 158,777 158,777 196,197 236,121 236,121
======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
LIABILITIES
Certificates of Indebtedness 2 Certificates of Indebtedness 2 20,531 26,831 31,731 37,191 40,791 46,410
Transfers of Fiscal Reserves 3 Transfers of Fiscal Reserves 3 23,359 32,557 38,269 52,546 63,226 69,802
Coins in Circulation 1,441 Coins in Circulation 1,441 1,470 1,890 2,012 2,003 2,299 Exchange Fund Bills - Exchange Fund Bills - - - - 6,671 13,624
Other Liabilities 4 Other Liabilities 4 4,103 4,453 2,554 1,603 391 4,834 Balance of Banking System 5 Balance of Banking System 5 - - 860 978 480 500
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 49,434 65,31 49,434 65,311 75,304 94,330 113,562 113,562 113,562 137,469 137,469
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ACCUMULATED EARNINGS 39,157 ACCUMULATED EARNINGS 39,157 53,524 57,747 64,447 82,635 98,652 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
NOTES ON THE ACCOUNTS
1. (a) Investments estments
The fund is invested in interest bearing deposits with banks in Hong Kong and overseas and in a variety of financial instruments, including bonds, notes and treasury bills. Only instruments which have good marketability and which are issued by or guaranteed by governments with high credit standing are acquired.
(b) Foreign currency assets distribution (b) Foreign currency assets distribution
A large proportion of the Fund's foreign currency assets are held in US dollars because this is the intervention currency and there is no exchange risk involved, given that the Hong Kong dollar is linked to the US dollar. Apart from the US dollar, the Fund also holds assets denominated in other major foreign currencies. They are the Canadian dollar, deutschemark, Japanese yen, pound sterling, Swiss franc, Dutch guilder, French franc and the ECU.
(c) Location of assets (c) Location of assets
The assets are held in deposit, trustee and safe-keeping accounts with banks, central banks and custodial organizations situated in Hong Kong and other major financial centres.
(d) Valuation of assets (d) Valuation of assets
Treasury bills and other short-term money market instruments are valued at cost. Bonds and notes are valued at mid-market prices as at the close of business on the last business day of each accounting period.
(e) Transl (e) Translation of foreign currency assets ation of foreign currency assets
US dollar (USD) assets are translated into Hong Kong dollars (HKD) at an exchange rate of USD1=HKD7.80. Assets in other foreign currencies are translated into Hong Kong dollars based on US dollar middle market cross rates in New York at the close of business on the last business day of the accounting period.
2. As backing for their bank note issues, the two note-issuing banks are required 2. As backing for their bank note issues, the two note-issuing banks are required to hold non-interest bearing certificates of indebtedness issued by the Exchange Fund. Since 17 October 1983 these certificates have been issued to or reclaimed fro the two banks against payment in US dollars at a fixed rate of HKD7.80=USD1.00.
3. This is that proportion of the fiscal reserves which has been transferred from 3. This is that proportion of the fiscal reserves which has been transferred from the General Revenue Account, Capital Investment Fund, Loan Fund and Capital Works Reserve Fund to the Exchange Fund on an interest earning basis.
4. Other liabilities comprise expenses accrued at the year end, in the main inte 4. Other liabilities comprise expenses accrued at the year end, in the main interest due on fiscal reserve transfers, contingency reserves for bank rescue operations and any other borrowings.
5. In accordance with the Accounting Arrangements introduced in July 1988. The 5. In accordance with the Accounting Arrangements introduced in July 1988. The Hongkong and Shanghai Banking Corporation Limited, as the Management Bank of the Clearing House of the Hong Kong Association of Banks, is required to maintain a Clearing Account with the Exchange Fund. The balance in the Account, which represents the level of liquidity in the interbank market, can only be altered by the Fund. The Accounting Arrangements enable the Fund to maintain exchange rate stability more effectively by influencing the level of interbank liquidity through money market operations.
Motion
FACTORIES AND INDUSTRIAL UNDERTAKINGS ORDINANCE
THE SECRETARY FOR EDUCATION AND MANPOWER moved the following motion:
"That the Factories and Industrial Undertakings (Noise at Work) Regulation, made by the Commissioner for Labour on 23 June 1992, be approved."
He said: Mr Deputy President, I move the resolution standing in my name on the Order Paper.
Section 7(1) of the Factories and Industrial Undertakings Ordinance empowers the Commissioner for Labour to make regulations to ensure the safety and health of people in industrial undertakings. The Factories and Industrial Undertakings (Noise at Work) Regulation was made by the Commissioner for Labour on 23 June 1992. In
accordance with section 7(3) of the principal Ordinance, I now move that the Regulation be approved by this Council.
The purpose of the Regulation is to provide employees with more effective The purpose of the Regulation is to provide employees with more effective protection against noise hazards in industrial undertakings. This is necessary because, notwithstanding regulation 21A of the Factories and Industrial Undertakings Regulations which provides for protection from sound, about 63 000 employees in industrial undertakings are still exposed to a noise level of 90 dB(A) or above. This situation is highly undesirable.
A major weakness of regulation 21A is the absence in most cases of a mechanism for establishing whether exposure falls within the stipulated limit, namely continuous exposure for eight hours to a sound level of 90 dB(A) or its equivalent. Protective measures are therefore seldom taken by either the proprietor or the employee. It is also difficult to prove in a prosecution that an employee has been excessively exposed to sound. Establishing evidence requires meticulous measurement over many hours, which is time-consuming and not cost-effective. So far, only cases involving extremely high noise levels have been successfully prosecuted.
The new Regulation before Members, which has been endorsed by the Labour Advisory Board, imposes requirements on proprietors of industrial undertakings to conduct noise level assessments and demarcate areas affected by excessive noise as ear protection zones. Where demarcation is impracticable, for example, on a construction site where noisy machines are being moved around quite frequently, the Regulation requires proprietors to label the noisy machines to indicate the distance within which ear protectors must be worn. Demarcation and labelling will make
proprietors and employees more conscious of the need for protective measures and also help the Labour Department enforce the law.
The new Regulation divides noise hazards into three different action levels in The new Regulation divides noise hazards into three different action levels in line with similar classifications used in the United Kingdom Noise at Work Regulations 1989. It also spells out the duties of proprietors and employees at the respective action levels. The major requirements are that:
(a) at the first action lev (a) at the first action lev at the first action level but before the second action level, a proprietor has el but before the second action level, a proprietor has to provide a suitable approved ear protector to an employee upon request, except where the wearing of ear protectors would be likely to cause a risk to the safety of the employee or to any other person;
(b) at the second action level or above, or at the peak action level, proprietors (b) at the second action level or above, or at the peak action level, proprietors must provide and employees must wear approved ear protectors, and the area in any industrial undertaking thus affected must be demarcated as an ear protection zone; and
(c) where demarcation is impracticable, as in the case of a construction site, all (c) where demarcation is impracticable, as in the case of a construction site, all noisy machines must be labelled. Employees attending to these noisy machines must wear ear protectors.
Provision is made for exemption by the Commissioner for Labour where, despite Provision is made for exemption by the Commissioner for Labour where, despite action by a proprietor, it has not been practicable for him to comply with the requirements of the new Regulation. In all other cases, however, contravention of the new Regulation will incur a maximum penalty of $30,000 for employers and $10,000 for employees.
To give proprietors of industrial undertakings ample time for compliance, we propose that the new Regulation should come into operation 12 months after approval by this Council. Regulation 21A of the Factories and Industrial Undertakings Regulations will be repealed at the same time.
Mr Deputy President, I wish to take this opportunity to thank the ad hoc group of this Council, which was formed under the convenorship of Mr TAM Yiu-chung to scrutinize the new Regulation, for its support of the resolution. The ad hoc group has made some useful suggestions during discussion with the Administration. These are being followed up with expedition. In particular, we are embarking on an overall
review of the various levels of penalty under the Factories and Industrial Undertakings Ordinance to see whether there is a need to increase the penalty levels. We aim to complete this review before the Regulation is brought into operation in a year's time.
Another review will be undertaken six months after the Regulation has come into Another review will be undertaken six months after the Regulation has come into operation to ascertain whether there are any enforcement and prosecution difficulties which may need to be tackled.
In addition, the Labour Department will take steps to publicize the Regulation and to enforce its provisions. We hope these measures will ensure that the Regulation will achieve the aim of providing a safe and healthy working environment to employees in industrial undertakings.
Mr Deputy President, I beg to move.
Question on the motion proposed.
MR TAM YIU-CHUNG (in Cantonese): Mr Deputy President, a 15-member ad hoc group was set up in this Council on 26 June 1992 to scrutinize the resolution regarding the Factories and Industrial Undertakings (Noise at Work) Regulation. The ad hoc group has since met three times, including on one occasion meeting with representatives of the Government.
The ad hoc group welcomes the adoption by the Government of this new Regulation to replace Regulation 21A of the Factory and Industrial Undertakings Regulations so that industrial workers can enjoy more effective protection. According to data provided by the Government, there are 63 000 workers in Hong Kong who are or may be exposed to noise approaching dangerous levels in their places of work. These workers are employed in seven industries, namely, shipbuilding, textile, building and construction, metal manufacturing, paper and paper products, wooden products and wooden furniture, and clock manufacturing. Given the large number of workers involved, protective measures should be in place to make sure that the workers are given appropriate protection insofar as their hearing is concerned. The ad hoc group hopes that the new Regulation, and the new measures and arrangements which go with it, will enable employers to understand where and when to provide the protective measures and assist the authorities concerned to overcome problems of enforcing its
provisions.
Members of the ad hoc group took the view, while they were scrutinizing the Regulation, that in order to enforce the noise protection provisions, we need to have an adequate supply of fully qualified people who can carry out the work of noise level assessment. The Government has already promised the ad hoc group that courses on noise and percussion, occupational and environmental hygiene are offered in local as well as overseas institutes of higher learning and that expertise in this field should not be hard to find. In addition, the Occupational Safety and Health Council will also organize training courses for employees of industrial undertakings who are concerned with this issue so that they will be able to acquire the professional knowledge required for noise assessment. The Government has also made the clarification that the Regulation does not require that industrial undertakings should have their own staff to take care of the assessment work. Small industrial undertakings may therefore make use of the service provided by consultancy firms. Noise assessment should not translate into a huge financial burden to the employers.
Some members of the ad hoc group considered that, compared with the fine of $10,000 to which an employee is liable for breaching the Regulation, the $30,000 fine for the employer for the same offence is too low. However, the ad hoc group also noted that, since the fine has been fixed after taking into account the fines for other offences covered under the Factories and Industrial Undertakings Ordinance, it is quite inappropriate to increase singularly the fine for just one particular offence. In addition, the Government has also indicated that a full review is now underway to assess the fine levels of the various offences under the Ordinance. Views of the ad hoc group will also be taken into consideration in the review exercise. The
Government has already undertaken that the review will be completed before the Regulation takes effect.
The ad hoc group further noted that the Government has adopted the approach of formulating the Regulation in such as way that it will rely more on self-regulation and less on arbitrary requirements. The purpose is to encourage employers and workers on the work floor to take an active part in maintaining environmental hygiene and safety of the workplace, without having to rely overly on the enforcing agencies. The ad hoc group welcomes this approach. However, it is also aware that this approach may also lead to problems in terms of deciding whether or not to prosecute. The Government has officially assured members of the ad hoc group that suitable administrative measures will be used in terms of enforcing the Regulation and in any
case a review will be conducted six months after the Regulation has come into operation to ascertain whether there are any enforcement difficulties.
The ad hoc group agrees with the relevant proposal and considers that the The ad hoc group agrees with the relevant proposal and considers that the Regulation should take effect one year after it has been passed by the Legislative Council so that the Government will have ample time to engage in the promotion and education effort which may be required and so that the employers may be better prepared to meet the new requirements.
The ad hoc group considers that in order for the Regulation to be effectively enforced the relevant parties should fully understand and comply with it for only then will the provisions of the Regulation acquire real teeth. In this regard, while the ad hoc group approves the Regulation, it also urges the Government to step up publicity and promotion so that provisions of the Regulation will be properly enforced to achieve the goal of providing a safe and healthy place for our workers.
Meanwhile, the ad hoc group has also received representations from two labour groups and two workers' unions. These organizations consider that the existing provision regarding the demarcation of ear protection areas is not adequate. They want to have more specific legal provisions to require employers to reduce noise to the lowest level. In addition, they also consider that in order to have proper provisions for noise assessment, employees should be entitled, for example, to ask their employers to conduct a noise assessment. They also request that employees should be given a regular hearing test. The ad hoc group hopes that the Government will consider these views seriously and that it will expeditiously make appropriate improvements in respect of administrative measures and regulations.
Mr Deputy President, I have given above a work report of the ad hoc group in my capacity as its convenor. I also wish to present my personal opinions as follows:
I totally support the objectives of the Regulation. However, given the short time frame in which the Regulation has to be presented to the Legislative Council for endorsement, and also given the desire of ad hoc group for it to be passed within the current term, the scrutiny of the various provisions has been done in a rather hasty manner and I actually find that rather regrettable.
Regarding the Regulation itself, it has the limitation that no effective measure is in place to make sure that employers will reduce noise in the workplace to its
lowest level: The demarcation of ear protection zones is apparently more in the nature of a palliative. In this regard, the Government should be aware of these limitations and formulate measures to remedy the situation. In addition, codes of practices should be devised for the noise-prone industries so that employers will be required to conduct regular examinations and repair works on the noise creating machinery; employers should also be responsible for making arrangements so workers who are
exposed to noise at work can take shifts for rest.
Meanwhile, the Government should step up prosecution against employers found breaching the Regulation for deterrent effect. I welcome the approach which the Government has indicated that it would take in terms of relying more on self regulation than arbitrary requirements in the fleshing out of the Regulation. However, I think that effective self-regulation requires that employees should have the opportunity to participate and the power to monitor the situation. In this regard, a set of complementing measures is required. For example, an occupational safety board with statutory powers should be set up to monitor the enforcement of the safety measures.
Mr Deputy President, although I still think that the Regulation still leaves room Mr Deputy President, although I still think that the Regulation still leaves room for improvement, I am prepared to pass it in order not to cause delay.
DR HUANG CHEN-YA (in Cantonese): Mr Deputy President, I support the Factories and Industrial Undertakings (Noise at Work) Regulation. During the debate on industrial safety on 20 May, I suggested to the Government that rather than having Factory Inspectors monitoring industrial safety, we should borrow the spirit of the United Kingdom's Poisonous Substances Control Act by requiring employers to submit to the
Government experts reports on the industrial health situation of their factory premises. This will make it very easy for the Government to identify problems which require the factories' attention. It is the employers' responsibility to improve the health situation of their factories in order to meet the industrial safety standards. The employees will then also be aware of the risks to which they are exposed to at work and the necessary precautions to be taken. I am delighted that the Regulation tabled for passing today has adopted the principle mentioned above. This approach can save government manpower dedicated to conducting monitoring work and improve industrial safety as well. I hope that the Government would in future adopt the same principle for other factories and industrial undertakings, especially those which make use of potentially hazardous materials and articles such as chemicals,
laser devices and microwave ovens. Proprietors of these factories should be required to submit an inspection report compiled by experts on the industrial safety situation of their factories. On the basis of this report, proprietors should put in place safety precautions for their employees.
On the other hand, provision is made in the Regulation for exemption by the On the other hand, provision is made in the Regulation for exemption by the Commissioner for Labour where, despite action by a proprietor, it has not been practicable for him to comply with the requirements of the new Regulation. I hope the Government could take note of the fact that very often employers lack the will rather than the ability to comply with the requirements. The Government should set a good example in protecting industrial safety. Many old vessels of the Marine Department, as far as I know, still use the bell as a means of communication. The noise level in these circumstances is very high. In order to hear the bell, crews of these vessels choose not to wear ear protectors. The Marine Department can in fact make use of an electronic signalling system for communication so as to protect the hearing of its workers. So, I hope that the Department can employ alternative signalling system on these vessels in order to protect the hearing of their crews, rather than applying for exemption from the Commissioner for Labour from complying with the provisions of this new Regulation.
Moreover, I have to point out some inadequacies of this Regulation. In the absence of provisions by this Regulation requiring workers of noisy working environments to undergo a pre-employment hearing test and to do so on a regular basis after taking up the employment, it is therefore practically impossible to determine the actual effects of the Regulation and the extent to which employers and employees have been complying with the respective requirements. Nor is there stipulation in the Regulation on the standards to which ear protectors should satisfy. I understand that many of the ear protectors available on the market can hardly effect any protection to their wearers. The United Democrats of Hong Kong wish the Government could introduce legislation in these two respects as soon as possible.
MR LAU CHIN-SHEK (in Cantonese): Mr Deputy President, the problem of industrial noise, which has been affecting some 500 000 workers in Hong Kong, is finally given its due attention by the Government today. Legislation is introduced to control noise at work, but its emphasis is still laid on the protection of hearing, requiring employees to wear ear protectors. If the Regulation is passed, there will be enforcement
difficulties especially where the Regulation emphasizes that workers will be penalized if they fail to comply with the requirement of wearing ear protectors.
There is no doubt that the responsibility for the generation of noise, identifying the source of noise and reducing noise levels is shifted from employers to employees.
This piece of legislation on noise spanned less than three weeks from its being first submitted to this Council to being tabled for approval today. The time allowed for scrutiny of this Regulation is shorter than that of other legislative amendments, despite the former's far greater impact. The stance of the United Democrats of Hong Kong (UDHK) on today's motion is that I would support the passing of this Regulation only if the Secretary for Education and Manpower makes a clear commitment to the following five requirements in his speech later, lest I would vote against the motion.
(1) Employers should control the source of noise and keep the noise level to the (1) Employers should control the source of noise and keep the noise level to the minimum. Specific measures include putting an end to the use of noisy machines, removing noisy articles from places of work and reducing the length of continuous exposure to noise;
(2) To conduct pre-employment and regular hearing tests for workers; (2) To conduct pre-employment and regular hearing tests for workers;
(3) To es (3) To establish a strict registration system for noise level assessment personnel, tablish a strict registration system for noise level assessment personnel, whereby these assessors are required to complete a polytechnic diploma course in noise vibrations or similar courses;
(4) Workers and their representatives are entitled to request (4) Workers and their representatives are entitled to request Workers and their representatives are entitled to request their employers to their employers to measure the level of noise; and
(5) Legislative provisions should be made regarding the safety standard of the (5) Legislative provisions should be made regarding the safety standard of the hearing protection equipment.
Mr Deputy President, these are my remarks. Thank you.
MISS EMILY LAU (in Cantonese): Mr Deputy President, like the colleagues who spoke before me, I find it regretful the way in which the Government handled this piece of legislation. The Regulation was submitted to this Council for scrutiny within such a short time and in such a hasty manner; we have found it impossible to have detailed studies and consultation with the various trade unions.
The question of industrial safety has long been neglected by the Government, thus
Hong Kong's legislation in this area has lagged far behind that of its sovereign state -- the United Kingdom. And the statutory provisions for the protection of workers' hearing border on non-existence. The Government has told us that there are 63 000 employees in Hong Kong who work in environments which have a high noise level of 90dB(A)
or above. However, the union representatives who petitioned the ad hoc group yesterday refuted that the government figure had underestimated the severity of the whole problem. Just now, the Honourable TAM Yiu-chung mentioned that the Government had listed seven trades only. Obviously there are other trades which have not been covered by the Government. Many workers therefore are not looked after by the Government at all.
Mr Deputy President, the new Regulation requires that employers must conduct Mr Deputy President, the new Regulation requires that employers must conduct noise level assessments at places of work and demarcate ear protection zones. These assessments have to be conducted by the so-called qualified personnel, but the Regulation fails to specify the qualifications of these people. The union representatives we interviewed yesterday found this approach by the Government somewhat trifling, despite the Government's claim that the employer is to be held responsible eventually, that is, whoever conducts the assessments, the ultimate decision lies with the Government. However, I feel that this arrangement is far from being scientific and will certainly give rise to numerous arguments and controversies in future. Just as the Honourable LAU Chin-shek has mentioned earlier, the Regulation fails to stipulate that workers have the right to request the Government to conduct noise level assessments at these places of work. During discussions of the ad hoc group, we questioned the Administration about this issue. The Government's response was that workers could do so. But I hope that specific provisions could be made in the Regulation for this particular right of the workers and unions.
Mr Deputy President, the union representatives also conveyed to us yesterday their worry over the lack of manpower in the Labour Department to enforce this new Regulation. I hope that clear and specific commitment could be made by the Administration in its reply later. The union representatives also pointed out that the wearing of ear plugs or ear protectors were made impracticable by some working environments as the absence of sound could make them vulnerable to some other risks. They hoped that under such circumstances the Government should instruct employers to take other precautions such as removing noisy machines from their places of work. In fact, Mr Deputy President, the union representatives said the essential spirit of this Regulation was to control the hearing of workers rather than industrial noise.
I find it pretty sarcastic. I share their view. As to the use of ear protectors as a means of protection, Mr Deputy President, the unions have expressed the wish that the Government would require employers to provide regular and proper maintenance for these protectors. Moreover, they also hoped that employers would be required to conduct regular hearing tests for workers so that remedial actions could be taken if hearing difficulties were identified.
Mr Deputy President, I find that the $10,000 fine for non-compliance on the part of workers under this Regulation is too high as indeed they will have been the victims. The punishment is too stringent if they were to be fined $10,000 when they had already lost their hearing at the same time. On the contrary, the $30,000 fine for non compliance by employers is too lenient. Although the Government has explained that a comprehensive study is being conducted on the penalty code, I wish it could make a serious commitment to raising substantially the penalty before deterrent effect could be achieved in this respect.
MR LEE WING-TAT (in Cantonese): Mr Deputy President, the Factories and Industrial Undertakings (Noise at Work) Regulation tabled before us today may give a certain degree of protection to workers affected by noise. However, the biggest problem with the Regulation itself is its failure to require employers to abate the source of noise. Measures which may reduce the noise level include requiring factory proprietors to replace noisy machines with less noisy ones and relocating noisy machines to reduce the noise level to which workers are exposed. Before these two measures can be taken, employers should be required under the Regulation to allow their workers to take a short rest after working for a certain period of time in an environment of high noise level, so that the workers would not be continuously exposed to industrial noise.
The ad hoc group has interviewed some union representatives and it has come to the group's knowledge that workers in many trades will not be benefited by the amendment of this Ordinance at all. Cooks of restaurants, for example, can hardly wear ear protectors in their working environments. A further amendment to this Regulation is therefore needed to take it a step further towards perfection.
Mr Deputy President, the full enforcement of this Regulation hinges on inspec Mr Deputy President, the full enforcement of this Regulation hinges on inspection by Factory Inspectors of the Labour Department. However, the serious shortage of manpower in the Labour Department is a cause for worry as insufficient inspection is being conducted by the Government. I request that the Labour Department should
submit a report to OMELCO after a regular inspection has been made. Thank you, Mr Deputy President.
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I have listened carefully and attentively to the Members who have spoken on this resolution. I would like to thank the Members for their support for the Regulation. I believe it is agreed that the Regulation is a step in the right direction although there may be imperfections. As I said when moving the resolution, we have received some very useful suggestions from the members of the ad hoc group which we are following up with expedition. We have also over the last few days received copies of the views presented to the OMELCO by several labour groups, and we are studying these very carefully.
As far as the present Regulation is concerned, it was of course drawn up after detailed consultation with the Labour Advisory Board. And as I said, I think we all agree that it is a step in the right direction. I have, as I said, taken very careful note of the suggestions and requests made by Members. I would certainly undertake to look into them very carefully. Many of them of course are technical issues which, I am afraid, I am not able to deal with on the spot today. But I will certainly undertake to look into those in consultation with the Commissioner for Labour and with other experts who are in the Department.
Question on the motion put and agreed to.
First Reading of Bills
COMPANIES (AMENDMENT) BILL 1992
COMPANIES (AMENDMENT) (NO. 2) BILL 1992
SECURITIES AND FUTURES COMMISSION (AMENDMENT) (NO. 2) BILL 1992 INSURANCE COMPANIES (AMENDMENT) (NO. 3) BILL 1992
BUSINESS REGISTRATION (AMENDMENT) BILL 1992
MULTI-STOREY BUILDINGS (OWNERS INCORPORATION) (AMENDMENT) BILL 1992 ORGANIZED AND SERIOUS CRIMES BILL
CRIMINAL PROCEDURE (AMENDMENT) BILL 1992
Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).
Second Reading of Bills
COMPANIES (AMENDMENT) BILL 1992
THE SECRETARY FOR MONETARY AFFAIRS moved the Second Reading of: "A Bill to amend the Companies Ordinance."
He said: Mr Deputy President, I move that the Companies (Amendment) Bill 1992 be read a Second time.
The purpose of the Bill is two-fold. First, to enable the Registrar of Compa The purpose of the Bill is two-fold. First, to enable the Registrar of Companies to take effective enforcement action against companies which persistently fail in their statutory duty to submit annual returns; secondly, to enable companies which are not trading and are inactive to take advantage of a new "dormant" status, whereby they will be exempted from compliance with a number of provisions of the Companies Ordinance for the period during which they remain dormant.
Section 109 of the Companies Ordinance requires every company to deliver to the Section 109 of the Companies Ordinance requires every company to deliver to the Registrar a copy of its annual return within 42 days of its annual general meeting. There are currently over 300 000 registered companies in Hong Kong. A recent survey conducted by the Registrar indicated that as many as 25% of those do not submit regular annual returns. The problem is particularly acute with moribund companies, the
directors of which are not concerned about incurring late filing fees as they have no intention of filing any further documents in the future.
Although there are already procedures which may be initiated by the Registrar Although there are already procedures which may be initiated by the Registrar
under the Ordinance for striking companies off the register, these procedures require the Registrar to exercise his discretion in each individual case. The provisions in question, therefore, do not provide a practical means of dealing with a problem of this magnitude and, furthermore, because of the nature of many of the cases, it is difficult for the Registrar to receive the up to date information he requires to enable him to exercise his discretion properly.
It is therefore proposed that the Registrar be provided with a more effective means of dealing with cases of default by introducing a simplified procedure for striking companies off the register where they fail to submit annual returns for two consecutive years. Striking-off action will not be initiated until fair warning has been given to a company and its directors and the company has been given the
opportunity to remedy the situation.
If a company chooses to ignore these warnings, it may be struck off and disso If a company chooses to ignore these warnings, it may be struck off and dissolved. All property and rights vested in it or held on trust for it immediately before its dissolution will then be deemed to be bona vacantia and to belong to the Crown. The Bill also provides for creditors to make claims against bona vacantia. Additionally, if, upon application by the company or any member or creditor of it, the Registrar is satisfied that there are reasonable grounds for a company to be restored onto the register, and an appropriate fee is paid, then reinstatement may be effected quickly and simply.
The proposed legislation also introduces a new "dormant" status for private companies. At present, companies which are not undertaking any business are nevertheless required to comply with all the requirements of the Ordinance. This involves the commitment of considerable time and resources, both by the companies concerned and by the Registrar, to work which may serve little useful purpose.
Under the proposal, a private company may by special resolution authorize its directors to submit a statutory declaration declaring the company to be "dormant". The Bill defines a company as dormant during any period in which no significant accounting transaction occurs; that is a transaction which, under section 121 of the Ordinance, would be required to be entered into the company's books. A company which is regarded as being dormant would be exempted from a number of requirements of the Ordinance. These relate mainly to the submission of documentation, including annual returns, matters relating to the holding of meetings and requirements relating to accounts and auditing.
Companies which take advantage of this new status will be required to notify the Registrar if and when they intend to enter into a significant accounting transaction. They will then cease to be regarded as dormant and will be required to comply with all the provisions of the Companies Ordinance in the normal way.
Given the substantial scope of the exemptions which dormant companies are able to enjoy, it is important that the legislation should lay down meaningful sanctions against any possible abuse of this privilege by a company seeking to retain the benefits of the exemptions after it ceases to be dormant. The Bill provides, therefore, that the directors and shareholders of a company which enters into a significant accounting transaction without notifying the Registrar will be liable for any debt or liability of the company arising out of that transaction.
However, certain categories of companies will not be able to avail themselves However, certain categories of companies will not be able to avail themselves of dormant status because of the need in their case for a higher degree of public accountability. These include public companies, authorized financial institutions, authorized insurers, registered dealers, and their respective holding companies.
With these comments, Mr Deputy President, I move that the debate on this motion be now adjourned.
Question on the adjournment proposed, put and agreed to.
COMPANIES (AMENDMENT) (NO. 2) BILL 1992
THE SECRETARY FOR MONETARY AFFAIRS moved the Second Reading of: "A Bill to amend the Companies Ordinance."
He said: Mr Deputy President, I move that the Companies (Amendment) (No. 2) Bill be read the Second time.
The purpose of this Bill together with the Securities and Futures Commission The purpose of this Bill together with the Securities and Futures Commission (Amendment) (No.2) Bill is to enable certain functions of the Registrar of Companies in relation to prospectuses to be transferred to the Securities and Futures Commission (SFC) and the Stock Exchange of Hong Kong Limited (SEHK).
Under the current system, the Registrar, the SFC and the SEHK all have vetting Under the current system, the Registrar, the SFC and the SEHK all have vetting responsibilities in respect of prospectuses and there is considerable duplication and over-lapping of these responsibilities. In line with the recommendations of the 1988 report of the Securities Review Committee, the Administration believes that the existing vetting system should be rationalized and streamlined so that only a single body vets and approves the documentation for a new issue.
Under the proposed amendments, the role of the Registrar of Companies would be Under the proposed amendments, the role of the Registrar of Companies would be limited to that of a registration authority only. He would continue to be responsible under the Companies Ordinance for registering prospectuses but would cease to take responsibility for vetting them prior to registration. Meanwhile, the statutory responsibility for authorizing the registration of prospectuses, including that of ensuring that they complied with the Companies Ordinance, would be vested in the SFC. Although the SFC will retain the statutory responsibility it is intended that, for those prospectuses relating to securities which are to be listed on the Stock Exchange, the exercise of that responsibility will be transferred to the SEHK. The transfer can be effected by a transfer order made by the Governor in Council under section 47 of the Securities and Futures Commission Ordinance. For those prospectuses where the securities are not listed, the SFC will exercise the responsibility for
authorizing their registration.
Mr Deputy President, I move that the debate on this motion be now adjourned. Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
SECURITIES AND FUTURES COMMISSION (AMENDMENT) (NO. 2) BILL 1992
THE SECRETARY FOR MONETARY AFFAIRS moved the Second Reading of: "A Bill to amend the Securities and Futures Commission Ordinance."
He said: Mr Deputy President, I move that the Securities and Futures Commission (Amendment) (No.2) Bill be read the Second time. I have already identified the principal purpose of this Bill in moving the Second Reading of the Companies (Amendment) (No.2) Bill.
The opportunity is also being taken to rectify the constitutions of the Securities and Futures Appeals Panel and of the tribunals which hear appeals by excluding non-executive directors of the Securities and Futures Commission (SFC) from
membership. This is to ensure that any appeal will be heard by an independent and impartial tribunal.
A revision of the Financial Resources Rules of the SFC is also proposed, introducing a requirement for registered persons to make periodic returns concerning their capital adequacy. This is to enable the SFC to monitor compliance with the capital adequacy requirements.
Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
INSURANCE COMPANIES (AMENDMENT) (NO. 3) BILL 1992
THE SECRETARY FOR MONETARY AFFAIRS moved the Second Reading of: "A Bill to amend the Insurance Companies Ordinance."
He said: Mr Deputy President, I move that the Insurance Companies (Amendment) (No. 3) Bill 1992 be read a Second time.
This is a composite Bill seeking to refine existing provisions of the Insurance Companies Ordinance in two areas: first, to designate the management of retirement schemes as a new class of long-term business and secondly, to facilitate the reporting of suspected fraud by auditors, accountants and actuaries.
Insurers undertaking long-term business are required under the Insurance Companies Ordinance to set aside a long term fund to meet the liabilities arising from such business. This ensures that adequate protection is given to the policy holders.
At present, retirement schemes managed by insurance companies are not designated as a class of insurance business. They are not, therefore, subject to prudential supervision under the Insurance Companies Ordinance. This is unsatisfactory in the light of the Government's intention to introduce a regulatory framework for
retirement schemes.
It is proposed, therefore, that the Ordinance be amended so as to designate the It is proposed, therefore, that the Ordinance be amended so as to designate the
management of retirement schemes as a class of long-term business. This new class of long-term business will have two components. The first covers schemes where the contracts merely provide for the management by an insurer of investments under retirement schemes. As the liabilities of the scheme operator under such contracts relate directly to the value of the investments, the assets will be required to be kept in a fund separate from that containing the assets of other classes of long-term business.
The other component of the new class of long-term business relates to those schemes where retirement benefits are provided through contracts of insurance, that is, contracts which include a life insurance element. No separation of assets from the general long-term fund will be required in such case as this component is not asset-linked.
I now turn to the reporting of suspected fraud by auditors, accountants and actuaries, collectively referred to as "prescribed persons" in the Bill. The scope for reporting by prescribed persons is currently very limited. We believe this should be extended to facilitate their communication with the Insurance Authority on matters relevant to the Authority's functions. This is necessary to protect the interests of policy holders and preserve the integrity of the market.
It is also proposed that the prescribed persons should be protected against possible liability for breach of their duty of confidentiality to clients when communicating in good faith with the Insurance Authority. Members may recall that such protection is already available to auditors of authorized institutions under the Banking Ordinance and auditors of registered dealers under the Securities and Commodities Trading Ordinances.
The insurer will also be required to notify the Insurance Authority of any ch The insurer will also be required to notify the Insurance Authority of any change or prospective change of an auditor or actuary, as such changes may signify possible irregularities in the operation of an insurer's affairs. For similar reasons, auditors and actuaries will also be required to inform the Insurance Authority of their intention to resign or to make an adverse statement on the affairs of their clients. In addition, the Insurance Authority will be empowered to disclose information relating to a prescribed person to the appropriate professional association for the purpose of any disciplinary proceedings.
With these remarks, Mr Deputy President, I move that the debate on this motion
be now adjourned.
Question on the adjournment proposed, put and agreed to.
BUSINESS REGISTRATION (AMENDMENT) BILL 1992
THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Business Registration Ordinance."
He said: Mr Deputy President, I move that the Business Registration (Amendment) Bill 1992 be read the Second time.
The Business Registration Office is now upgrading its equipment and changing its procedures, with a view to serving the business community more efficiently. The Bill now before Members will free the Office from the requirement to keep paper-based records indefinitely. In future the Office will keep its records both on microfilm and on a computer, and delete records of businesses which have ceased to operate for 10 years or more. This new, streamlined method of data storage and retrieval will result not only in significant staff savings but also provide the business community with a much more efficient service.
The Bill also includes minor amendments to provide for the registration of a new branch of a business and to revise the level of fine for non-compliance with the Ordinance from $2,000 to $5,000.
Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
MULTI-STOREY BUILDINGS (OWNERS INCORPORATION) (AMENDMENT) BILL 1992
THE SECRETARY FOR HOME AFFAIRS moved the Second Reading of: "A Bill to amend the Multi-storey Buildings (Owners Incorporation) Ordinance."
He said: Mr Deputy President, I move the Second Reading of the Multi-storey Buildings (Owners Incorporation) (Amendment) Bill 1992.
This Bill is designed to give effect to proposals formulated on the basis of views expressed during public consultation on an earlier version of the Amendment Bill which was published as a White Bill at the end of May last year. It aims primarily to further facilitate the formation of owners' corporations and to repeal those provisions in the existing deeds of mutual covenant which are considered to be unfair to flat owners.
One of the most contentious provisions of the existing Ordinance is section 2A One of the most contentious provisions of the existing Ordinance is section 2A which provides that the Ordinance does not apply to a building in respect of which a person has undertaken to, or agreed with, the Government to manage or be responsible for its management.
The Government accepts the argument contained in many submissions that flat The Government accepts the argument contained in many submissions that flat owners should have the right to incorporate themselves. Clause 4 of the Bill accordingly repeals section 2A of the Ordinance. And in order to put the matter beyond doubt, clause 27 of the Bill provides, inter alia, that any arrangements whereby flat owners are prevented from being registered as an owners' corporation shall be void and of no effect.
In order to facilitate the formation of owners' corporations, clause 5 enables the Secretary for Home Affairs to approve applications for incorporation by the owners of not less than 30% of the shares in the building, instead of the 50% as presently provided. This change will be particularly helpful in buildings with a large number of absentee landlords who do not normally take any interest in the management of their buildings.
The problem of unfair Deeds of Mutual Covenant is another contentious issue picked up by most commentators. Such Deeds frequently provide for perpetual management by the developer himself or by a management company associated with the developer. In such cases, there is little the flat owners can do to rid themselves of the manager.
Under the Amendment Bill a new Seventh Schedule is provided setting out the terms that are to be impliedly incorporated into every Deed of Mutual Covenant. Such terms will prevail over corresponding provisions in existing covenants which are inconsistent with them.
Paragraph 7 of the new Seventh Schedule provides a procedure whereby the flat owners may terminate the appointment of a manager employed by or associated with the developer. Basically, it requires a resolution of the owners of not less than 50%
of the undivided shares. The developer may then appoint a replacement manager with the consent of the flat owners. Should they fail to reach any agreement, the flat owners would have the power to appoint their own manager.
However, the Government recognizes that in some exceptional circumstances, certain residential developments may best be managed by the developer or his appointed managing agent. New section 34E(4) in clause 27 proposes that the Secretary for Home Affairs may exclude the application of paragraph 7 of the Seventh Schedule to any specified building in accordance with published guidelines.
As the inclusion of new provisions on unfair Deeds of Mutual Covenant widens the scope of the existing Ordinance, it is considered necessary to change its short title to reflect these changes. Clause 2 therefore seeks to change the short title of the Ordinance from "Multi-storey Buildings (Owners Incorporation) Ordinance" to
"Building Management Ordinance".
Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
ORGANIZED AND SERIOUS CRIMES BILL
THE SECRETARY FOR SECURITY moved the Second Reading of: "A Bill to create new powers of investigation into organized crimes and certain other offences and into the proceeds of crime; make provision in respect of the sentencing of certain offenders; create an offence of assisting a person to retain proceeds of crime; and for ancillary and connected matters."
He said: Mr Deputy President, I move that the Organized and Serious Crimes Bill be read a Second time. This Bill and the Criminal Procedure (Amendment) Bill which I am also going to introduce at this sitting, seek to improve our ability to investigate and prosecute organized and serious crimes.
There has for long been great concern in the community about the extent of There has for long been great concern in the community about the extent of organized crime in Hong Kong. Organized crime encompasses the whole spectrum of
criminal activity from trafficking in narcotics, robbery, fraud, blackmail, loansharking and vice to extortion and protection of shopkeepers, hawkers and Public Light Bus drivers. It represents a particularly serious threat to law and stability in our society:
(a) because it survives on fear and intimidation, and on the threat of violence; (a) because it survives on fear and intimidation, and on the threat of violence;
(b) because it imposes a rigid discipline on its members, which often serves to (b) because it imposes a rigid discipline on its members, which often serves to insulate the organizers from direct participation in the criminal act and hence from the risk of prosecution;
(c) because it generates enormous profits which are in many cases laundered into (c) because it generates enormous profits which are in many cases laundered into legitimate businesses, with the legitimate and the criminal activities then bolstering and supporting each other; and
(d) because it affects the lives of ordinary people, particularly those who can l (d) because it affects the lives of ordinary people, particularly those who can least afford to resist the extortionate demands -- the hawker, the PLB driver, those living in squatter areas.
Our objective in tackling organized crime must therefore be twofold: to enable Our objective in tackling organized crime must therefore be twofold: to enable the police to obtain evidence against those who organize, co-ordinate or carry out such crimes; and to enable adequate sanctions, including financial penalties, to be imposed on those involved in organized crime. I have no doubt that these objectives are widely supported by the community. That message came out loud and clear in the public response to the White Bill which we published for consultation in August last year. We received valuable comments and advice on the proposals in the White Bill from the public, from professional organizations and the debate in this Council last December. The revised proposals in the two Bills which I shall introduce this
afternoon have taken into account the views expressed by the public on the White Bill, and also advice we have had from the Fight Crime Committee and the OMELCO Panel on Security.
In furtherance of the objectives I have mentioned, we have first sought to provide the police with more effective powers to investigate organized crime. At present, the police encounter great difficulties in their investigation of such crimes because they frequently lack the ability to break through the wall of silence protecting those who co-ordinate and mastermind organized criminal syndicates. We therefore propose that the police should, for the purpose of investigating organized crimes, be able
to apply to the High Court for powers to require a person to answer questions or otherwise furnish information or to produce material. It will be an offence to fail to comply with such an order or to provide false information.
These powers will be subject to a number of safeguards. They can be invoked only for the purpose of investigating organized crime involving the offences in the first schedule of the Bill. The application for the use of the powers must have the consent of the Attorney General. The powers must be authorized by a High Court judge after being satisfied that it is in the public interest to grant the authority.
The special investigative powers would be able to request production of information and material by banks, the Inland Revenue Department and any bodies or persons which operate under a statutory or common law obligation to maintain confidentiality. Items subject to legal privilege would be however excluded from the requirement to produce material.
In addition to the above powers, the Bill provides that the police may apply to the High Court or District Court for a warrant to enter and search premises to seize evidence relevant to an investigation.
The special investigative powers which we propose in relation to organized crimes exist in various forms in a number of Ordinances, for example, the Securities and Futures Commission Ordinance and the Companies Ordinance. They will provide investigators with powerful, but necessary, tools to gather information and evidence. They will be of great assistance to the police in identifying persons involved in organized and serious crimes and in developing a prosecutable case against them.
We have also sought to enable the courts to impose more stringent penalties, including financial penalties, for those convicted of organized and serious crimes where this may be appropriate. At present a defendant or his counsel can, during a sentence hearing, make submissions to the judge in mitigation of the sentence. Under current practice and rules, the prosecution is unable without the invitation of the court to bring to the attention of the court relevant information relating to the prevalence of the offence, its financial rewards, its impact on the community or victims, or whether it is related to organized crime or triad activity in order to enable the court to decide whether a heavier sentence than would otherwise be imposed is warranted. This limitation on the information the prosecutor can bring to the court's attention restricts the court's ability to impose a heavier sentence
where it may be appropriate.
It is proposed that where a person has been convicted in the High Court or Di It is proposed that where a person has been convicted in the High Court or District Court of an offence in Schedules 1 or 2 of the Bill, the prosecution would be entitled to provide the court with information relating to the offence, its relationship to organized crime, its impact on victims and its financial benefits.
After having regard to the information brought before the court, if the court is satisfied that it would be appropriate to impose a heavier sentence than would otherwise be the case, then it may impose such a sentence, provided that it does not exceed the statutory maximum.
We also propose that where a person is convicted of a specified offence, the court would be empowered to make a confiscation order in respect of all proceeds of crime received by the person in connection with the commission of any offence. In addition, a general money laundering offence covering the proceeds of all crime is proposed. These proposals represent an extension of the proposals in the White Bill on Organized Crime, in that they would not be limited to the proceeds of specified offences relating to organized crime.
Mr Deputy President, I believe that the proposals I have outlined will greatly improve our ability to investigate and prosecute those responsible for organized and serious crimes, and to destroy the power, especially the financial power, of organized crime syndicates.
I move that the debate on this motion be now adjourned.
Question on the adjournment proposed, put and agreed to.
CRIMINAL PROCEDURE (AMENDMENT) BILL 1992
THE SECRETARY FOR SECURITY moved the Second Reading of: "A Bill to amend the Criminal Procedure Ordinance."
He said: Mr Deputy President, I move that the Criminal Procedure (Amendment) Bill be read a Second time.
Prosecution of cases relating to organized crime frequently involves accomplice Prosecution of cases relating to organized crime frequently involves accomplice evidence. The warning in respect of such evidence has been criticized as technical, complex, inflexible and confusing. This Bill will abolish the requirement for a corroboration warning in respect of the evidence of accomplices. The result will be that judges will be able to exercise their discretion to deal with the credibility of accomplice witnesses in the same manner as they deal with credibility generally. There will be no special rules, but simply a requirement that justice be seen to be done.
Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
SUPPLEMENTARY APPROPRIATION (1991-92) BILL 1992
Resumption of debate on Second Reading which was moved on 1 July 1992 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.
BANKING (AMENDMENT) BILL 1992
Resumption of debate on Second Reading which was moved on 29 April 1992 Question on Second Reading proposed.
DR PHILIP WONG: Mr Deputy President, the Bill before us has two main purposes. It seeks to amend the Banking Ordinance to enable reporting by external auditors on the internal control system of the authorized institutions, and to allow the Commissioner of Banking to give an authorized institution in difficulty less than seven days notice before he submits a report on the circumstances to the Governor in Council.
The ad hoc group has had six meetings, including three with the Administration, The ad hoc group has had six meetings, including three with the Administration, to exchange views on various provisions of the Bill. A total of four submissions were received from the Hong Kong Association of Banks, the Hong Kong Deposit-Taking
Companies Association, and the Hong Kong Society of Accountants. The points raised by these submissions were carefully considered and discussed with the Administration. I will now briefly summarize the major issues considered by the ad hoc group.
Whilst fully supporting the Secretary for Monetary Affairs' proposal for providing a legal framework for external auditors to report on authorized institutions' internal control systems with a view to enhancing the supervision standards of the banking industry, the ad hoc group shares the concern of the banking sector and the Hong Kong Society of Accountants on how the mechanism is expected to work.
In response, the Administration has assured the ad hoc group that the above concern will be addressed by the publication of a statutory guideline which will be drawn up in consultation with the banking sector and the Hong Kong Society of Accountants, and the new provisions in the Bill concerning reporting by auditors will not be implemented before the publication of the statutory guideline.
The ad hoc group also expressed concern over the circumstances which might lead The ad hoc group also expressed concern over the circumstances which might lead to the appointment of a second auditor under clause 4. The Administration explained that this would be done only in very exceptional circumstances where the Commissioner had reason to believe that the authorized institution's own auditor would not be capable of producing an adequate report. The general factor which would be taken into account in deciding the capability of the authorized institution's auditor would include the auditor's expertise, resources, competence, independence and integrity. The ad hoc group was satisfied with the explanation and the assurance given by the Administration.
As regards the proposed amendment of allowing the Commissioner of Banking to give an authorized institution in difficulty less than seven days notice before he submits a report on the circumstances to the Governor in Council, it is fully supported by the ad hoc group. The event of the closure of the Bank of Credit and Commerce Hong Kong Limited in July 1991 has demonstrated that the existing arrangements whereby the Commissioner of Banking reports a banking crisis to the Governor in Council should be streamlined. It is gratifying to see that the Administration has promptly acted on this aspect. The new provision will provide flexibility to enable the Governor in Council to take action more expeditiously in case of need.
The ad hoc group has, in the course of the study, agreed with the Administration