HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 993 OFFICIAL RECORD OF PROCEEDINGS
Wednesday, 24 November 1993
The Council met at half-past Two o'clock
PRESENT
THE PRESIDENT
THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., LL.D., 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 MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P.
THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P.
DR THE HONOURABLE DAVID LI KWOK-PO, O.B.E., LL.D., 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 MARTIN GILBERT BARROW, O.B.E., J.P.
THE HONOURABLE MRS PEGGY LAM, O.B.E., J.P.
994 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 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., J.P. 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, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP
THE HONOURABLE VINCENT CHENG HOI-CHUEN, J.P. THE HONOURABLE CHEUNG MAN-KWONG
THE HONOURABLE CHIM PUI-CHUNG
REV THE HONOURABLE FUNG CHI-WOOD
THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA
DR THE HONOURABLE HUANG CHEN-YA
THE HONOURABLE SIMON IP SIK-ON, O.B.E., J.P.
DR THE HONOURABLE LAM KUI-CHUN
DR THE HONOURABLE CONRAD LAM KUI-SHING, J.P. THE HONOURABLE LAU CHIN-SHEK
THE HONOURABLE LEE WING-TAT
THE HONOURABLE ERIC LI KA-CHEUNG, J.P.
THE HONOURABLE FRED LI WAH-MING
THE HONOURABLE MAN SAI-CHEONG
THE HONOURABLE STEVEN POON KWOK-LIM
THE HONOURABLE HENRY TANG YING-YEN, J.P.
THE HONOURABLE TIK CHI-YUEN
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 995 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
DR THE HONOURABLE TANG SIU-TONG, J.P.
THE HONOURABLE CHRISTINE LOH KUNG-WAI
THE HONOURABLE ROGER LUK KOON-HOO
THE HONOURABLE ANNA WU HUNG-YUK
THE HONOURABLE JAMES TIEN PEI-CHUN, O.B.E., J.P.
THE HONOURABLE ALFRED TSO SHIU-WAI
ABSENT
THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P.
THE HONOURABLE RONALD JOSEPH ARCULLI, O.B.E., J.P.
THE HONOURABLE MOSES CHENG MO-CHI
THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P.
THE HONOURABLE FREDERICK FUNG KIN-KEE
THE HONOURABLE EMILY LAU WAI-HING
IN ATTENDANCE
MR MICHAEL LEUNG MAN-KIN, C.B.E., J.P.
SECRETARY FOR EDUCATION AND MANPOWER
MR MICHAEL SUEN MING-YEUNG, J.P.
SECRETARY FOR HOME AFFAIRS
996 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 MR ALISTAIR PETER ASPREY, O.B.E., A.E., J.P.
SECRETARY FOR SECURITY
MR RONALD JAMES BLAKE, J.P.
SECRETARY FOR WORKS
THE HONOURABLE MICHAEL SZE CHO-CHEUNG, I.S.O., J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS
MR ANTHONY GORDON EASON, J.P.
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS MR HAIDER HATIM TYEBJEE BARMA, I.S.O., J.P.
SECRETARY FOR TRANSPORT
MR GORDON SIU KWING-CHUE, J.P.
SECRETARY FOR ECONOMIC SERVICES
MR DONALD TSANG YAM-KUEN, O.B.E., J.P.
SECRETARY FOR THE TREASURY
MR STUART WREFORD HARBINSON, J.P.
SECRETARY FOR THE CIVIL SERVICE
DR LEE SHIU-HUNG, I.S.O., J.P.
SECRETARY FOR HEALTH AND WELFARE
MR TAM WING-PONG
SECRETARY FOR FINANCIAL SERVICES
THE CLERK TO THE LEGISLATIVE COUNCIL
MR CLETUS LAU KWOK-HONG
THE DEPUTY CLERK TO THE LEGISLATIVE COUNCIL MR PATRICK CHAN NIM-TAK
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 997 Papers
The following papers were laid on the table pursuant to Standing Order 14(2): Subject
Subsidiary Legislation L.N. No.
Regional Council (Fees for Official Signatures and
Miscellaneous Services) (Amendment)
Bylaw 1993 ............................................................................................. 445/93
Urban Council (Fees for Official Signatures and
Miscellaneous Services) (Amendment)
Bylaw 1993 ............................................................................................. 446/93
Inland Revenue (Amendment) (No. 5) Ordinance
1993 (76 of 1993) (Commencement)
Notice 1993 ............................................................................................. 447/93 Sessional Papers 1993-94
No. 30 — The Open Learning Institute of Hong Kong Annual Report 1992-93
No. 31 — Report by the Commissioner of Correctional Services on the Administration of the Correctional Services Department Welfare Fund for the year ended 31 March 1992
Address
The Open Learning Institute of Hong Kong
Annual Report 1992-93
MR PETER WONG: Mr President, as Chairman of the Council of the Open Learning Institute of Hong Kong, I have the honour of presenting the fourth Annual Report and Audited Accounts of the Institute for the year ended 31 March 1993 which are tabled before this Council today.
The Report gives a comprehensive account of the institute's achievements during that period, but I would like to highlight some major milestones that have been accomplished.
998 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
OLI remains committed to the provision of higher education through a system of open access and distance learning. This gives an opportunity for all Hong Kong adults to study, with great flexibility at sub-degree and degree levels, regardless of their previous academic or other qualifications.
All objectives set by the Planning Committee of OLI have now been more than met. The institute completes its first full cycle and is proud of its first set of 161 graduates who will be awarded their degrees later this month. I believe that the rate of student progress and the institute's ability to support them is amongst the finest open learning performances in the world.
The institute has now proved its worth and role as the major provider of adult education at degree level in Hong Kong. During the year there were over 30 000 registrations in 37 different courses, with 15 000 individuals enrolled, 21 new courses were presented for the first time and the presentations of courses in the medium of Chinese increased. Instruction in the Chinese language is likely to be an area of major growth in the years to come as OLI meets the growing needs of the local population for the learning medium in the Chinese language.
Another significant event has been the validation of all 17 degree programmes by the Hong Kong Council for Academic Accreditation. An 18th degree programme received its approval on 1 September 1993. Three panels for each of the existing schools of Arts and Social Sciences, Business and Administration and Science and Technology, made up of a total of 34 international and local academics, scrutinized all aspects of the academic contents and the delivery system of courses to students. This very critical review gave its whole-hearted support to all operations, which was particularly pleasing considering the speed, physical and financial constraints that the institute has had to endure. All the staff of OLI deserves congratulations for this splendid achievement.
With the establishment of the Centre for Continuing and Community Education the institute has been able to respond to the needs of the community by offering courses at sub degree level. In addition, with its planned agency role in the presentation of postgraduate programmes of reputable overseas institutions, the centre is actively seeking out a strong position in the highly competitive continuing education sector of Hong Kong. Its establishment as Hong Kong's pre-eminent trainer of adults is being keenly pursued.
Despite all the advances and new developments the OLI has still managed to reach a breakeven situation, with this past year being the last year of government subvention. In the future the institute will be entirely dependent on income from student fees and donations, with no direct funding from the public purse. However, to help in its viability and success the Government granted a site for the development of a permanent campus in Ho Man Tin, and also allocated a grant of HK$150 million towards its construction. With an additional donation of HK$71 million from the Royal Hong Kong Jockey Club,
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 999
the institute expects to be in its own campus by the end of 1995. Planning is underway and the project is expected to be well within budget. The campus will enable an increase of services, facilities and support offered to staff, tutors and students, as well as serving to improve the institute's image in the eyes of Hong Kong. Additionally it will remove the current burden of high rental costs for the existing administrative and limited student support premises.
In looking at the accounts of the institute, I wish to draw Members' attention to the cost of studying at the OLI. Since its inception in June 1989 student fees have gone up by over 70%. While the OLI is still the lowest cost producer of undergraduate education in Hong Kong, the policy of full cost recovery will begin to limit access to only a small proportion of the target group: I wish to take the opportunity to urge the Government to consider ways and means of providing assistance to OLI students. A fee remission scheme on the same level of generosity as the other institutions would be just.
The institute has widened its international links and through them is developing additional credit transfer arrangements. With the advanced standing policies that further facilitate government flexibility in the new sub-degree awards the programmes will be articulated together for easy entry and exit for the Hong Kong resident.
The real results of OLI's hard work will only be reflected in the calibre and future success of their graduates as a part of the Hong Kong workforce equipped with their newly acquired knowledge and technologies. Their commitment to studying for a degree through distance education whilst fulfilling work and family responsibilities is not easy and they are to be applauded.
Looking ahead, in the near future OLI will be offering:
- postgraduate programmes, mainly through the agency of overseas institutions; and
- nursing and education upgrading programmes to degree level for in-service nurses and teachers.
In addition it will be developing its international profile through the hosting of Asian and worldwide conferences on distance education.
OLI must be encouraged to continue in its commendable contribution to Hong Kong as it builds on its successes and achievements.
1000 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 Oral answers to questions
Public access to government financial information
1. MR PETER WONG asked: Will the Government inform this Council how members of the public can have access to the financial information of government departments, trading funds and public bodies apart from the annual publications of the Estimates of
Expenditures or Annual Reports; and what means are available for the public to monitor in detail the financial performance of the services run by or for the Government?
SECRETARY FOR THE TREASURY: Mr President, it is a well-recognized principle that the detailed monitoring of government financial performance and expenditure is primarily the role of this Council, rather than individual members of the public. This practice is in line with a long-standing constitutional arrangement in Hong Kong now enshrined in the Public Finance Ordinance (Cap. 2). Nevertheless, there are adequate channels for interested members of the public to keep themselves informed and to comment about the expenditure of public sector bodies.
For government departments, the information available to members of the public on expenditure and performance is mainly that mentioned in the Honourable Peter WONG's question, that is, the annual Estimates and the Director of Accounting Services' Annual Report and, in some cases, annual departmental reports. These publications are on sale to the public in all Government Publications Centres.
Apart from the special occasion each year for Members to question the Administration on the Annual Estimates of Expenditure, Members of this Council can put questions to the Administration, either formally or informally, throughout the year. Members of the public who have specific concerns can raise them through Members or pursue them directly with the departments concerned.
The Government also publishes its accounts quarterly in the Gazette. This information is freely available to the public. These quarterly accounts are often the basis of comments in the media. As far as I am aware, Mr President, this is a greater degree of disclosure than adopted by most governments and is certainly much more than the practice in the private sector, in which shareholders would normally receive details of financial performance on a quarterly basis.
In the debate on 27 October on the Motion of Thanks for the Governor's annual address to this Council, the Financial Secretary promised to make available to Members and the public the operating accounts of the five government utilities: the Post Office, the Airport, Marine Ferry Terminals, Government Toll Tunnels and Waterworks.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1001
With regard to Trading Funds, the Trading Funds Ordinance provides for audited accounts to be tabled in this Council once a year, together with a report by the Fund Manager on his performance. Such accounts will also be available for sale to the public at the Government Publications Centres. It is of course open to Members to initiate a debate on such accounts, or to raise questions in this Council during the year.
The expenditure of public bodies (by which I mean statutory bodies) is reported as required under their specific governing ordinances. Thus, for example, the annual audited reports of the Mass Transit Railway Corporation, the KCR Corporation, and the Provisional Airport Authority are tabled in this Council. These reports are available to the public. Some of their annual accounts have achieved awards for transparency and clarity. Again, Members can raise questions on these accounts at any time.
Our system in Hong Kong is on the open parliamentary model: not the ancient Greek model where every citizen put forth his views on matters of the day scratched on pieces of broken pot. But the public has broad access to the details of public expenditure and are free to comment to Members, the press or directly to the Administration.
When we receive questions directly from the public on public expenditure, we pledge to go as far as we can to respond promptly and fully.
Thank you.
MR PETER WONG: Mr President, I regret I have left my pieces of broken pot at home. However, does the Government set out minimum standards of disclosure of financial information to be made available to the public by each department?
SECRETARY FOR THE TREASURY: Mr President, at present the information on departmental financial performance is made available in the annual Estimates which are laid before Members for debate and scrutiny every year and, at the same time, 33 government departments make available annual reports giving full details of their operations. And in these reports, invariably, there are full details of the departments' financial operations. These reports are available to members of the public and are on sale at the Government Publications Centres.
PRESIDENT: Is your question not answered, Mr WONG?
MR PETER WONG: With respect, Mr President, I do not think the Secretary answered my question, that is, whether the Government has set minimum standards of disclosure.
1002 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
SECRETARY FOR THE TREASURY: Mr President, the standards we have set are what I have outlined in that they require, as in the case of annual Estimates, a very high order of detail. But of course there are limits to which we can provide information as requested by individual members of the public: such information must be furnished on a basis that taxpayers will not have to shoulder the disproportionate amount of cost in preparing the information. But within these limits we will do as much as possible. As I said earlier on in my main answer, we pledge to provide as much information as possible and as quickly as possible.
DR DAVID LI: Mr President, how many enquiries of a financial nature from members of the public do various government departments, trading funds and public bodies receive each year?
SECRETARY FOR THE TREASURY: Mr President, I do not have any comprehensive information on this. As far as the Finance Branch is concerned, which is the centre for receiving various enquiries of this kind, so far I have only received one request from one institution for information on detailed financial operation, and we have responded satisfactorily.
MR MARTIN BARROW: Mr President, does the Secretary acknowledge that many members of the community believe that the amount of information now being published is more than adequate, and will he confirm that the Government will not get bogged down into spending all its time on reporting rather than getting on with the job?
SECRETARY FOR THE TREASURY: Yes, Mr President, I believe that is the case. From the number of enquiries we have received, I think we can come to the conclusion that members of the public are generally satisfied with the extent and the frequency of information on government financial operations reported to them.
MR NGAI SHIU-KIT: Mr President, who decides whether any information requested is commercially sensitive and therefore withheld, and what avenues of appeal are there?
SECRETARY FOR THE TREASURY: I am sorry, Mr President, I did not quite catch the question. Could I hear it again, please?
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1003 PRESIDENT: Would you repeat it, Mr NGAI, please?
MR NGAI SHIU-KIT: Mr President, who decides whether any information requested is commercially sensitive and therefore withheld, and what avenues of appeal are there?
SECRETARY FOR THE TREASURY: Mr President, this is primarily a matter for the heads of departments concerned. Ultimately, it will be my job, as Secretary for the Treasury, to decide whether such information is commercially sensitive, if the information relates to financial performance. And as regards appeals, if any member of the public is aggrieved by such a decision he or she of course can write to tell us so that the case can be reviewed, and they can appeal to a higher level.
MRS SELINA CHOW: Mr President, since most members of the public are not financial specialists — and quite a few Members of this Council including myself are certainly not — what efforts is the Government making to render financial reports more user-friendly?
SECRETARY FOR THE TREASURY: Mr President, we constantly seek better representation. We regularly consult experts including Members of this Council. In fact we always appreciate suggestions on how best to give clearer information. The main problem is the sheer volume of information being published and the sheer volume of information which is held by the government departments concerned. We need to have some consensus from Members on how they would like the information to be summarized if it is generally believed that we are not doing an adequate job in this regard.
DR CONRAD LAM (in Cantonese): Mr President, in the seventh paragraph of the reply, the Secretary mentioned the transparency of the accounts of some statutory bodies. May I ask the Secretary through what channels members of the public can have access to information on some major hospitals under the Hospital Authority, for example, Queen Mary Hospital and Queen Elizabeth Hospital, in respect of their funds allocation and disbursement in a particular year?
SECRETARY FOR THE TREASURY: Mr President, I am sure members of the public who are interested in that kind of information can write to the Hospital Authority.
1004 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 Money laundering
2. MR JIMMY McGREGOR asked: Will the Government inform this Council:
(a) of the number of reports concerning money laundering received by the authorities since the Drug Trafficking (Recovery of Proceeds) Ordinance came into force;
(b) of these reports, how many cases were investigated, how many were unfounded and how many led to prosecution; and
(c) of the penalties imposed on those found guilty of offences, expressed as fines and imprisonment?
SECRETARY FOR SECURITY: Mr President,
(a) A total of 893 reports have been received from banks, deposittaking companies, accountancy firms, overseas law enforcement agencies and individuals under section 25 of the Drug Trafficking (Recovery of Proceeds) Ordinance since the enactment of the ordinance in 1989.
(b) All reports received were investigated by the Joint Financial Intelligence Unit of the police and the Customs and Excise Department. 284 of these investigations are still in progress. The remaining 609 have concluded with the following result: 154 reports were confirmed not to be related to drug money laundering; 443 cases did not produce sufficient evidence for proceedings to be instituted under the ordinance; nine reports led to proceedings for the confiscation of drug proceeds; three reports led to prosecutions for drug money laundering offences.
(c) Of the three prosecutions for drug money laundering offences, the proceedings in two cases have not yet concluded. The third case ended in an acquittal. In the nine cases where confiscation proceedings have been initiated with assistance from reports made under section 25 of the ordinance, assets to the value of $150 million have been ordered to be confiscated and further assets amounting to $59 million are under restraint.
MR JIMMY McGREGOR: Mr President, can the Secretary say whether the cases taken, the money involved in all of the cases investigated, and the money successfully confiscated represent a satisfactory beginning to a drive against what is clearly a very large money laundering operation which uses Hong Kong
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1005
banking and other financial services? And can the Secretary say whether three prosecutions from 893 reports suggest that stronger legislation is required?
SECRETARY FOR SECURITY: Mr President, we believe that the operation of the ordinance has in general been satisfactory. It is of course impossible to prove one way or the other what deterrent effect these provisions have. But we do believe that they have a substantial deterrent effect. There are areas where the law might be improved and be strengthened and we are currently considering what improvements should be made.
DR DAVID LI: Mr President, what percentage of the total number of reports to date concerning cases of suspected money laundering has been made by banks in Hong Kong?
SECRETARY FOR SECURITY: Mr President, the banks have reported the great majority of cases. They have made 861 reports out of the total of 893.
MR CHIM PUI-CHUNG (in Cantonese): Mr President, referring to the Secretary's reply, how much has so far been confiscated as a result of crackdowns on money laundering cases that required overseas law enforcement agencies' co-operation; are we required to share the assets with the agents concerned, and will the Administration step up these efforts in the future?
PRESIDENT: Have you got the question, Secretary?
SECRETARY FOR SECURITY: Yes, Mr President. Could I first make clear that the assets confiscated will include assets well in excess of those uncovered as a result of reports made of drug money laundering? About $300 million in assets confiscated or restrained under the ordinance result from the enforcement of external enforcement orders in Hong Kong; in other words they are based on reports and requests from external agencies. We have received, so far, one request for sharing of the assets from the United States but the legal proceedings in this case have not yet been concluded. When they have been concluded we may well be submitting to the Finance Committee of this Council a proposal for the sharing of assets.
MRS ELSIE TU: Mr President, we see that in nine cases confiscation proceedings were initiated and assets to the value of $150.3 million ordered to be confiscated. Was the amount actually confiscated or was the net result of all this just nothing and, if so, would it be worthwhile spending the money doing any investigations?
1006 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 SECRETARY FOR SECURITY: Mr President, the amount was confiscated.
MRS SELINA CHOW: Mr President, given that 70% of the cases concluded did not produce sufficient evidence for proceedings to be instituted, does this reflect that the threshold of proof is set too high, and can the law be changed to remedy this situation?
SECRETARY FOR SECURITY: Mr President, as I said, we are considering some improvements to the ordinance, but I do not think that we intend to change the burden of proof in these cases. Perhaps I could explain that section 25 of the ordinance makes it an offence for a person to assist another person to retain the proceeds of drug trafficking when he knows or has reasonable grounds for believing that the money involved is the proceeds of drug trafficking. There are difficulties in bringing cases to a satisfactory conclusion because of the difficulty of proving the mental element of the offence as well as the difficulty of proving that the money is actually the proceeds of drug trafficking. But it seems to me that those points are essential elements which would have to be proved beyond reasonable doubt to obtain a conviction, and I do not think that we intend to make any change to that.
MR JIMMY McGREGOR: Mr President, can the Secretary say whether the results of this legislation being brought into effect in 1989 suggest that Hong Kong is substantially used for drug money laundering? What is the actual result of all this work which has been done, in terms of the policy being followed by the Government?
SECRETARY FOR SECURITY: Mr President, Hong Kong is a very major financial centre and it is of course used for drug money laundering; I do not think anybody would seek to deny that.
DR DAVID LI: Mr President, what measures have been or will be taken to enhance international co-operation in cases of suspected money laundering?
SECRETARY FOR SECURITY: Mr President, the ordinance does contain provisions for the reciprocal enforcement of judgements relating to money laundering. The Governor in Council may designate territories whose confiscation orders and requests for restraint of assets liable to confiscation can be enforced in Hong Kong, and that is done on a reciprocal basis so that similarly Hong Kong's requests can be enforceable in those other countries. So far we have designated 11 other jurisdictions under the ordinance and, as I said in answer to a previous question, some $300 million have been confiscated under these provisions.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1007 Rehabilitation services
3. DR YEUNG SUM asked (in Cantonese): The Social Welfare Department in consultation with various rehabilitation organizations worked out in July this year new demand figures showing significant changes in the demand for various types of rehabilitation services. These new demand figures are of particular importance to the development of pre-school services for disabled children because they show a total shortfall of over 600 places in both Special Child Care Centres and Early Education and Training Centres as against the original estimate of having a surplus in these two services. Will the Government inform this Council:
(a) when it plans to start the major review of Rehabilitation Programmes Plan, due for 1993, which would affect the long-term planning of rehabilitation services; and
(b) how the Administration is going to deal with the long waiting list currently kept by the Central Referral System?
SECRETARY FOR HEALTH AND WELFARE: Mr President, the Rehabilitation Programme Plan sets out a comprehensive picture of the current and planned provision of rehabilitation services over the next 10 years. The current plan was compiled in 1990. We intend to conduct a review of the plan in mid-1994.
There are two central referral systems in the Social Welfare Department, namely, the Co-ordinated Referral System for Pre-school Services and the Central Referral System for Disabled Adults. These two systems register disabled persons in need of rehabilitation services. When vacancies become available, the systems will select registrants from the computer in chronological order according to the date of application for review and further processing of the cases.
We have taken and will continue to take steps to reduce the waiting lists kept by the Central Referral System. In this connection, Members may recall that the necessary funds for meeting in full key targets in the Green Paper on rehabilitation by 1996-97 have been secured. These relate to the provision of an additional 3 930 residential places for people with various disabilities and an extra 3 760 places in day services for mentally handicapped people. We are determined to meet the key targets on schedule.
We will update the targets regularly to ensure that they match the changing needs and circumstances of the various groups of clients. Where necessary, we will continue to seek funding for the provision of additional places for both disabled pre-schoolers and disabled adults. In the meantime, the Social Welfare Department is streamlining the central referral systems with a view to identifying clients with a genuine need for services and to speeding up
1008 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
referrals and admissions so as to make fuller use of the places available. These measures will also help towards reducing the waiting lists. Let me take today's opportunity to reassure Members that we are all firmly committed to improving the quality of life of people with disabilities.
DR YEUNG SUM (in Cantonese): Mr President, the figures referred to in the Secretary's reply are mainly places provided in rehabilitation institutions whereas my concern is pre school education for disabled children. According to the Administration's plan, apart from 600 additional places in Early Education and Training Centres for 1993-94, no more places will be provided from 1994 to 1997. With no additional resources and with the commitment to meet the targets on schedule, how can the Administration cope with such a long waiting list?
SECRETARY FOR HEALTH AND WELFARE: Mr President, as regards pre-school services, my response is as follows. The Social Welfare Department has recently consulted the Hong Kong Council of Social Service and the operating agencies on the formulation of a proposed demand formula for use in the Rehabilitation Programme Plan review. The projected demand figures derived from the proposed new formula suggest there are still shortfalls in pre-school services by 1996-97. On the other hand, the proposed formula projects that there is substantial surplus in other areas, for example, Integrated Child Care Centres. Subject to acceptance of the new demand formula by the Administration, the Social Welfare Department will examine the possibility of deploying savings to meet shortfalls and will start planning the new projects. In the interim, we will actively consider the introduction of a pilot scheme, Home Based Training Programme, for disabled children in 1994 to cater for those awaiting services.
DR LEONG CHE-HUNG: Mr President, in the last paragraph of his reply the Secretary said that the Social Welfare Department is streamlining the central referral system with a view to identifying clients with a genuine need for services. Could the Secretary quantify what, in his view, are genuine needs and hence identify priorities for admission?
SECRETARY FOR HEALTH AND WELFARE: Mr President, the scheme that we are working is first to waitlist the applicants, to ascertain the applicants' preference for locations, and also to ascertain as regards the health conditions of the applicants and their families' ability to look after them. So, in this respect, our aim is to speed up the admission of the applicants. As regards the pilot scheme, this is an area the Social Welfare Department will give further consideration to.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1009
DR YEUNG SUM (in Cantonese): Mr President, just now the Administration has admitted the shortfall of places in pre-school education for disabled children. Will the Administration try to get additional resources for them in next year's Budget?
SECRETARY FOR HEALTH AND WELFARE: Mr President, the Social Welfare Department is at the present moment examining the financial implications arising from the pilot scheme and also considering deployment of existing resources. So I am awaiting the submission from the Director of Social Welfare on this pilot scheme.
Election candidates
4. MR JAMES TIEN asked (in Cantonese): In order to convince the public of the integrity of character and conduct of candidates standing for election to the three tiers of representative government, will the Government inform this Council:
(a) whether the Hong Kong police have a report alleging that China might support triad elements to run for the 1995 Legislative Council elections; if so, whether this report can be published; if not, whether the Government will make a statement on this issue; and
(b) whether consideration will be given to amending existing legislation or adopting other measures, to prevent triad elements from registering as candidates for elections to the three tiers of representative government?
SECRETARY FOR SECURITY: Mr President, as regards the first part of the question, the police are not aware of the existence of any such report. I have nothing to add to that.
As regards the second part of the question, under existing legislation, a person who, on the date of nomination, is serving a sentence of imprisonment is disqualified from being nominated as candidate. A person is also disqualified from candidature if, within the 10 years preceding the date of election, he has been convicted of an offence and sentenced to imprisonment exceeding three months. These provisions cover persons convicted of triad related offences. We have no plans to introduce further measures.
MR JAMES TIEN: Mr President, I have here a copy of a statement made by Mr Willard H MYERS on 4 November 1993 to the United States House of Representatives. Mr MYERS is the director of the Centre for the Study of Asian Organized Crime. I will just quote the first sentence where he said:
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"The recent confidential report prepared by the Royal Hong Kong Police Force suggests the existence of a high-level alliance between the leadership of Hong Kong triads and the national government of the People's Republic of China and as part of their alliance the triads will run candidates in the coming Hong Kong elections."
The Secretary's reply to the first part of my question says that the police are not aware of the existence of any such report. Could the Secretary undertake to inform the United States Consulate here to set the record straight that the Royal Hong Kong Police Force did not prepare such a report, so as to protect our international reputation?
PRESIDENT: I do not think that question infringes Standing Order 18(1)(i) which prohibits a question as to whether a statement of a private individual is accurate. Mr TIEN, could you just repeat, please, the actual point you wish to make?
MR JAMES TIEN: Mr President, to make it short, I have a copy of a statement made by Mr MYERS, who is the director of the Centre for the Study of Asian Organized Crime, to the United States House of Representatives to the effect that the Royal Hong Kong Police Force did prepare such a report. And the Secretary's reply to my question is that the Hong Kong police are not aware of the existence of such a report. Therefore my question to the Secretary is whether the Hong Kong Government will undertake to either inform the United States Consul General or the United States Congress that the Royal Hong Kong Police Force did not prepare such a report?
SECRETARY FOR SECURITY: Mr President, yes, I have also seen that statement, but I do not know what it refers to. As I say, there is no such report. We will certainly try to make that clear to the United States authorities.
REV FUNG CHI-WOOD (in Cantonese): Mr President, was the Administration aware of any triads assisting candidates in electioneering? If yes, what measures does the Administration have to ensure that elections are conducted fairly?
SECRETARY FOR SECURITY: Mr President, I think that the existing legislation, which I touched upon in my main answer, has adequate provisions to ensure that elections are conducted fairly. I would say that we have no evidence that there has been any organized campaingn by triads to infiltrate or to seek influence over the district boards, municipal councils or the Legislative Council, or to infiltrate into elections.
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MR JAMES TO (in Cantonese): Mr President, the Security and Guarding Services Bill which has recently been gazetted provides that any person on conviction of a triad offence cannot register as a security guard even if the imprisonment term is less than three months. But the Secretary has said just now that if a person is convicted of a triad offence and given a less than three months imprisonment term, he can still be a candidate in the three-tier elections. When the two pieces of legislation are compared, does it suggest that those convicted of a triad offence and given a less than three months imprisonment term are unfit to be security guards, but they may consider standing for elections?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, to disqualify an individual from candidature is a very serious matter. It should therefore be linked to the gravity of the offence that he has committed, as reflected in the length of the imprisonment term. And I think, also, that any measures that we take must be in compliance with the principle of rationality and proportionality.
At this point Mr James TO indicated a wish to ask a follow-up.
PRESIDENT: Only if your question has not been answered, Mr TO. There is a long queue here.
DR TANG SIU-TONG (in Cantonese): Mr President, in 1987, the Security Branch conducted background checks on district board members elected in 1985 and found that 10% of the members had triad links. Will the Administration carry out similar checks on all the members elected in the 1991 three-tier elections?
SECRETARY FOR SECURITY: Mr President, the police did do a survey, after the event, into both the 1985 and the 1988 district board elections. Perhaps I should explain, very briefly, the results of those surveys, so far as candidates are concerned. There were 502 candidates in each of those elections. In the 1985 election it was found that 28 candidates did have a previous criminal record, and four of those candidates had a previous conviction for triad or organized crime; but of those only one was subsequently elected. In 1988, of the 502 candidates 30 had a previous criminal record, none of them for triad or organized crime offences. I suspect that the police will similarly do an analysis of any future elections.
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MR HENRY TANG: Mr President, from the Secretary's main reply it appears to me that a person with known triad links but who was never prosecuted or convicted could become a candidate. Would the Secretary confirm that, please?
SECRETARY FOR SECURITY: Mr President, that is the case. The legislation as it is written at present relates to convictions and the sentence as passed for those convictions. It does not seek to disqualify people on the basis of association or suspicion.
MR CHEUNG MAN-KWONG (in Cantonese): Mr President, it is mentioned in the Administration's reply that previous surveys showed that some members indeed had triad links and might even be triad members. If there is hard evidence that confirms that certain Members of this Council are triads, what will be the position of the Administration in such circumstances? Will it take legal action against them or even remove them from public office? Or will it allow them to continue in office until the end of their term?
SECRETARY FOR SECURITY: Mr President, triad membership is in itself an offence which carries a term of imprisonment of more than three months. If the police have evidence that someone is a triad member and this is evidence that is strong enough to take a prosecution, then they would certainly take that prosecution.
MR FRED LI (in Cantonese): Mr President, even though a candidate has no criminal record and is not a triad member, there is a possibility, in fact it did happen in the past, that he may hire triads to assist him in electioneering. Is the Secretary for Security aware of such a situation and are there any measures to prevent them from hiring triads to assist them in electioneering?
SECRETARY FOR SECURITY: Mr President, yes, it is the case that the police surveys — for example in 1985 and 1988 to which I have referred — did deal not only with the records of the candidates themselves but also with the records of their identifiable supporters, that is, those who endorsed the candidate proposal forms, of which there were over 5 000, I believe, in each election. The point, I think, is that the police can only enforce the law. If they have any evidence that there is any breach of the law in what is going on in electioneering, then they will certainly seek to take action to stop that.
MRS SELINA CHOW (in Cantonese): Mr President, according to the Secretary for Security's reply just now, the police did conduct surveys after the 1985 and 1988 elections. Can the Secretary for Security inform this Council why a similar survey was not conducted after the 1991 elections? If they did, were the
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1013 Legislative Council elections included in the survey and can the findings be disclosed?
SECRETARY FOR SECURITY: Mr President, I am sorry, I do not know the answer to that. I will have to give an answer in writing. (Annex I)
MR MAN SAI-CHEONG (in Cantonese): Mr President, will the Administration inform this Council whether all the appointed members in the three tiers of government do not have triad links or close connections with them? If they do, do we have to wait until the abolition of appointed membership in 1994-95 before the problem can be solved?
PRESIDENT: Did you get the question, Secretary?
SECRETARY FOR SECURITY: Mr President, yes, I think so. All, I think, I would say is that we do vet members before appointment.
MR LEE WING-TAT (in Cantonese): Mr President, the Secretary for Security mentions in the second paragraph of his reply that "a person is disqualified from candidature if, within the 10 years preceding the date of election, he has been convicted of an offence and sentenced to imprisonment exceeding three months." If a citizen was sentenced to over 10 years' imprisonment in China for political reasons or because of spreading counter revolutionary ideas, (actually this has happened before), whereas in our legal system, such criminal charges are non-existent, will the person be disqualified from candidature in the three-tier elections here?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, I think I am not competent to give legal advice on such a matter as asked in the question.
MR LEE WING-TAT (in Cantonese): Mr President, though the Secretary for Constitutional Affairs cannot provide a reply now, can he give me a detailed answer in writing, that is, if a citizen is sentenced to 10 years' imprisonment in mainland China because of spreading counter-revolutionary ideas, will he be disqualified from candidature in the three-tier elections here?
PRESIDENT: Do I understand your question: you want elucidation of the answer as to whether the offence provided for is an offence committed in Hong Kong, not elsewhere? Is that right, Mr LEE?
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MR LEE WING-TAT (in Cantonese): Mr President, the situation that I have mentioned did happen in the past, that is, some Hong Kong citizens were sentenced to 10 years' imprisonment in China because of spreading counter-revolutionary ideas. There is however no such criminal offence on our statute book. Nevertheless, our existing electoral legislation provides that a person who has been sentenced to three months' imprisonment or who has not resided in Hong Kong for a continuous period of seven years is not qualified to be nominated as a candidate in any of the three-tier elections. Since we do not have such a criminal offence in Hong Kong, is a person who has been sentenced to 10 years' imprisonment in other places still qualified to be a candidate in the three-tier elections here?
PRESIDENT: I think the question simply goes to whether "offence" means an offence committed in Hong Kong or includes an offence committed elsewhere.
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, section 11 of the Electoral Provisions Ordinance does provide for offences that have been committed in either Hong Kong or any other territory or country.
Central to Mid-levels escalator link
5. DR LAM KUI-CHUN asked (in Cantonese) Will the Government inform this Council:
(a) whether the traffic flow at Mid-levels has decreased since the opening of the Central to Mid-levels escalator link; if so, which types of vehicles have contributed to the decrease and what their respective percentages of decrease are; and
(b) how many complaints in respect of the above escalator link have been received as at mid-November and what the main issues of the complaints are?
SECRETARY FOR TRANSPORT: Mr President, the Central to Mid-levels escalator system commenced operation on 15 October. Because of the large number of sightseers and other users attracted by the novelty of the system, no clear pattern has so far emerged in the use of the escalators and it is far too soon to establish the real impact on traffic in the Mid levels area. However, ballpark figures do show that, on average, some 20 000 people use the escalator daily with about 4 000 travelling downhill on the escalator between 6 am and 10 am each morning. These figures suggest a little less reliance on vehicular transport.
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The Transport Department has so far carried out two one-day surveys during rush hours, and not surprisingly, no significant change in traffic volume has emerged. The department intends to undertake a comprehensive survey early next year by which time travel patterns in the area should have become more settled.
The escalator system has proven to be remarkably popular and has attracted favourable comment both locally and overseas. Since the trial period began, we have received only eight complaints. These relate to temporary breakdowns and stoppages of the system, inadequate directional signs and poor illumination, noise problems and the lack of synchronization between the speed of the handrail and the escalator steps. Indeed, these complaints reflect the basic teething problems that have been experienced most of which have since been rectified.
DR LAM KUI-CHUN (in Cantonese): Mr President, it was mentioned in the second paragraph of the reply that no significant change in traffic volume from Central to the Mid levels had emerged since the escalator system came into operation. Will the Administration inform this Council whether there are indications of a change in traffic volume of buses and minibuses; and if this does not bring about a reduction in traffic volume, how it will affect plans of building these escalators in other districts?
SECRETARY FOR TRANSPORT: Mr President, before the escalator started operation, the Central and Western District Board did ask about how bus services would be affected and sought assurances that bus services would not be reduced before a pattern of traffic was clear. Up to now no bus services have been reduced. However, the Transport Department, after checking the schedules of both CMB and Citybus, has found that during rush hours there have been a number of missing trips and both companies have subsequently been warned by the Transport Department. Meanwhile, the Government has no immediate plans to build such escalators in other districts.
MRS MIRIAM LAU (in Cantonese): Mr President, the result of an opinion survey conducted by the Liberal Party two days ago showed that 22% of nearby residents and shop owners found the escalator a nuisance to them. Is the Administration going to take any remedial measures to reduce such nuisance?
SECRETARY FOR TRANSPORT: Mr President, admittedly, the escalator runs very close to some shops along the alignment. This is inevitable because of the topography of the region. Various measures are being taken to deal with nuisances which have been identified. For example, screens and panels are being installed along the sections closest to these shops. Indeed some of these shop owners have complained, or clamoured about, the inconvenience and
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disturbance caused, but other shop keepers have, I should add, reflected that they are very happy with the escalator because it has brought them more business.
MR NGAI SHIU-KIT (in Cantonese): Mr President, there have been cases of women and children stumbling on such escalators. Should such misfortune happen one day, and legal action is brought against the Government, will adequate compensation be given and how is it going to prevent these incidents from occurring?
PRESIDENT: I think that question is hypothetical, Mr NGAI. Could you make it more specific and less hypothetical?
MR NGAI SHIU-KIT (in Cantonese): Mr President, I am asking the question of compensation for women and children tripped over the escalator and indeed this has something to do with the operation of the escalator. How is the Administration going to deal with the problem, and are there measures to prevent such incidents from occurring?
SECRETARY FOR TRANSPORT: Mr President, in the event that someone is injured on the escalator and it can be proven that this is due to negligence on the part of the contractors or because of the design of the system, certainly, compensation will be considered.
MR ROGER LUK (in Cantonese): Mr President, will the Administration advise if it has set any target for reducing traffic volume and if so, when it can be achieved?
SECRETARY FOR TRANSPORT: Mr President, we have no firm plans in hand to introduce any traffic measures in the Mid-levels. As I said just now, the bus frequencies will not be reduced at present. Looking further ahead, I think it is important perhaps to recognize that the hill-side escalator operates in a vertical direction from Conduit Road down to Des Voeux Road, whereas the road system on the Mid-levels mainly runs on a horizontal line and covers a much wider net. Therefore, it is perhaps unrealistic to expect that the escalator would reduce the traffic volume substantially.
MRS PEGGY LAM (in Cantonese): Mr President, has the Administration calculated how much the daily power consumption cost was since the escalator system came into operation, and does it intend to recover it from the public?
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1017 PRESIDENT: It goes beyond elucidation, but do you have the answer, Secretary?
SECRETARY FOR TRANSPORT: Mr President, I cannot provide detailed costs as regards power consumption. But according to our estimate, the annual recurrent costs will be in the region of $4.4 million. This includes payments to the contractor for providing security guards and attendants at the moment. In future, when the escalator is managed by the Transport Department, the costs will be included as part of the overall costs for that department.
DR LEONG CHE-HUNG: Mr President, since there is no plan to decrease traffic flow, and even bus routes are not reduced, would the Secretary inform this Council what factors he will consider in assessing the cost effectiveness of this project?
SECRETARY FOR TRANSPORT: Mr President, early next year, when comprehensive surveys are undertaken and we have the results of those surveys, we will then look into measures which should or should not be undertaken. And I think cost effectiveness will have to be considered at that time.
MR PETER WONG: Mr President, are there emergency arrangements in case of breakdowns to safely shepherd would-be escalator riders across the busy Mid-level roads which do not have adequate pedestrian crossings close to the escalator?
SECRETARY FOR TRANSPORT: Mr President, there are five attendants on duty throughout the time when the escalator is in operation from 6 am to 10 pm. And the control room is also equipped with CCTV. At the road junctions that are located at level crossings, there are signs provided to alert users of the escalators.
PRESIDENT: Not answered, Mr WONG?
MR PETER WONG: Mr President, my question is: Are there emergency measures planned in case there is a breakdown and there are many people waiting to go down and they decide to walk down the steps and cross the main roads?
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SECRETARY FOR TRANSPORT: Mr President, technicians are on duty throughout the time when the escalator is in operation. And as regards emergencies, there is also a direct line to the control point at the police station so that ambulances and police could be alerted, if necessary.
MRS SELINA CHOW (in Cantonese): Mr President, the original concept of an escalator link between the Central and Mid-levels must have been based on a certain network pattern. There were plans then to provide seven escalators to relieve traffic at the Mid-levels. Will the Secretary inform this Council when the operation of this escalator will be reviewed, and of the timetable for building the other six escalators?
SECRETARY FOR TRANSPORT: Mr President, there have never been plans to provide seven escalators. In the early days, when the proposal was first mooted in the mid-1980s, indeed there were several proposed alignments which were under consideration; for example, along Peel Street and Aberdeen Street. But following the commissioning of consultants, the present alignment was chosen and no further planning has been undertaken. I think it is premature to say when we will decide whether additional escalators will be built but certainly the effectiveness of this escalator will be monitored over the coming year.
MR JIMMY McGREGOR: Mr President, I have heard many good reports about the efficiency of the escalator. But in the meantime could the Secretary please put these ballpark figures somewhat more in context, in regard to the estimated number of people moving up and down from Mid-levels? Could these figures of 4 000 and 20 000 be put into context, please?
PRESIDENT: Are you able to, Secretary?
SECRETARY FOR TRANSPORT: No, Mr President, I am afraid I do not have the figures on the number of people who travel between Mid-levels and Central each day.
PAA and MTRC consultancy contracts
6. MR ALBERT CHAN asked (in Cantonese): Will the Administration inform this Council whether the recent additional funding of $50 million for the design contract of the new airport terminal is related to deficiencies in the provisions in the contract, such as those relating to the revision and/or adjustment of project requirements; whether similar deficiencies are found in other contracts signed by the Provisional Airport Authority and the Mass
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Transit Railway Corporation with their consultants, whether they have led to additional costs and how these deficiencies can be remedied?
SECRETARY FOR WORKS: Mr President, the $50 million additional payment is not related to deficiencies, but was for a change in the scope of the design works which could not have been foreseen at the time the design contract was let. PAA under the terms of the design contract were obliged to pay for additional work arising from the change in scope, and after proper consideration the PAA Board authorized the lump-sum settlement approach; this was a cost-effective means to resolve an issue which otherwise would have dragged on in a contentious manner, possibly to result in costly arbitration. These matters were explained in October to the Legislative Council Subcommittee on the Financing of the ACP.
The Administration is satisfied that the total payment expected to be made for this design contract, including the additional payment, is cost-effective. The Airport Master Plan schematic design for the terminal building has now been developed through detailed design into a building which meets PAA's operational requirements, as well as those of the airline industry, passengers and other users. The highest standards of functionality, efficiency, and user friendliness have been achieved for an estimated unit cost which is only about average for equivalent international airport terminal buildings. The integrity of the PAA's overall budget estimate has been kept intact, whilst opportunities for commercial revenue space within the building have been uplifted with significant benefits in the revenue generating potential of the building.
All contracts of this nature entered into by the Government, the PAA, the MTRC and indeed within the private sector at large, lump-sum or not, must contain provision to vary and the means to value variations. I wish to assure the Honourable Member, however, that any variation involving increase or decrease in cost will be subjected to close scrutiny by the Government or the respective board of these two statutory bodies, to ensure that no unwarranted payment ensues and that proper procedures are in place for the authorization of relevant scope changes.
MR ALBERT CHAN (in Cantonese): Mr President, Mr BLAKE has said just now in his reply that the consultant contract concerned is a fixed-price lump-sum contract. Will the Secretary inform this Council whether the design contract of the airport terminal building is a fixed-price lump-sum contract; if not, why not? Has the Provisional Airport Authority obtained the approval of the Provisional Airport Authority Board before asking the design consultant to alter the design and the contract?
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SECRETARY FOR WORKS: Mr President, as I have explained, this was a fixed-price lump-sum contract. May I explain. Fixed-price means that within the contract there is no provision for any adjustment on account of any increases in the basic costs of the resources which the consultant must apply to the contract. Lump-sum means that the price agreed for the design contract reflects a basic scheme of requirements which the client puts to the consultant and which the consultant agrees to provide. In this case, the agreed scheme of requirements, during the development stage of the design, were clearly items that had to be provided for which could not have been foreseen at the time of the original design price being submitted; which the PAA Management, after detailed consideration, confirmed were additions to the contract outside the original scope of the design contract; which the PAA Board were kept apprised of during the time of the assessment of these items; and which the PAA Board agreed to before the PAA Management were able to indicate to the design consultant the lump-sum agreement involving the payment of $50 million.
MR STEVEN POON (in Cantonese): Mr President, $50 million is, relatively speaking, a very large sum of money. The authority concerned explained its funding request to the Legislative Council Subcommittee on the Financing of the Airport Core Projects because it had to seek funds from it. But in the future when the Airport Authority is established and no funding request is necessary, as in the case of the Mass Transit Railway Corporation now, in what way can the Administration explain the airport funding to this Council if similar situation happens again?
PRESIDENT: Have you understood the question, Secretary?
SECRETARY FOR WORKS: I am afraid not, Mr President.
PRESIDENT: I think it might have got lost in the translation, Mr POON.
MR STEVEN POON (in Cantonese): Mr President, the authority concerned gave an explanation to this Council only because it required funding. But in the future when the Airport Authority is established, the funds will be allocated to the Authority. Likewise, the Mass Transit Railway Corporation needs not come to this Council for funding. If similar situation arises in the future, in what way can the Administration explain the airport funding to this Council; and will it follow the present practice, which is that even though approval for funding is not required from this Council, explanation will be given to the Legislative Council Subcommittee on the Financing for the Airport Core Projects such that its members will know about the situation?
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1021
SECRETARY FOR WORKS: Mr President, first of all, the Administration and the PAA Board are quite satisfied, after very detailed consideration, that the results of this design contract in terms of the quality and the scope of the work produced fully justify the total amount of fee that would be paid to the design consultant — a total amount which includes the original amounts due and the additional $50 million.
So far as accountability is concerned, the PAA Board will ensure that they are the authoritative voice in terms of all payments approved, that their authority will be given in the light of budget constraints, and that any items of expenditure which are over and above the original intended scope of payments must be explained satisfactorily in detail to the PAA Board before any authority to enter into such payments is given. These items, of course, will also appear ultimately in the Annual Report of the PAA itself.
PRESIDENT: Not answered, Mr POON?
MR STEVEN POON (in Cantonese): Mr President, in short, can the Secretary's reply be taken as follows: If similar situation arises in the future in respect of the Airport Authority or the Mass Transit Railway Corporation (in relation to the airport and airport railway), then only the boards of directors of the Airport Authority and the Mass Transit Railway Corporation will know about the situation but not this Council?
SECRETARY FOR WORKS: Mr President, the intention in setting up the statutory authorities, as I understand it, is precisely to ensure that those authorities, through their respective boards, do take authority and are accountable for all items of expenditure of such nature. Perhaps, Mr President, my colleague the Secretary for Economic Services may wish to add to what I have said in this regard.
DR SAMUEL WONG (in Cantonese): Mr President, the Secretary said that the additional consultant fee of $50 million was due to a change in the scope of design works. Does the design contract include the design of the railway interchange at the airport and other related designs? Since that part of the design has now been taken out and become a new item of work, will the PAA be entitled to a corresponding fee reduction under the original design contract, which, according to the estimate of people in the industry, is near $50 million?
PRESIDENT: Have you got the question, Secretary?
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SECRETARY FOR WORKS: I would appreciate some elucidation. I think the final point of the question was lost in the translation, Mr President.
DR SAMUEL WONG (in Cantonese): Mr President, has the design contract included the design of the railway interchange at the airport and other related designs? Since that part of the design has now been taken out and become a new item of work, will the PAA be entitled to a corresponding fee reduction under the original design contract, which, according to the estimate of people in the industry, is near $50 million?
SECRETARY FOR WORKS: Mr President, to answer the question as I understand it, within the design development of the terminal building, the payments which are the subject of question today, the $50 million, relate to development of the building itself, after very detailed consultation with the airline industry in particular. And as far as the Airport Railway is concerned, the development of the terminal building — a matter, I believe, the Honourable Member is referring to — is not part of the matters which we are dealing with today.
DR SAMUEL WONG: May I seek clarification, Mr President?
PRESIDENT: Is your question not answered, Dr WONG?
DR SAMUEL WONG: It is not answered.
PRESIDENT: Not answered. Yes, what has not been answered?
DR SAMUEL WONG: Mr President, can the Secretary confirm that the design of the railway interchange at the airport is not part and parcel of the original design contract? That is what I am after.
SECRETARY FOR WORKS: Mr President, the original design contract was for a terminal building which had an interface with the Airport Railway, part and parcel of the full development of the user functionality of the terminal building which has taken into account passengers arriving, both by road and by rail. The interface between rail passengers and the airport building is being further developed between the PAA and the Mass Transit Railway Corporation. That is a further development which is not part of the additional $50 million which the PAA Board has already authorized as payment due for additional works over and above the original design contract.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1023 Written answers to questions
Occupational safety involving overhead work
7. MR PANG CHUN-HOI asked (in Chinese): According to statistics supplied by the Labour Department; the number of occupational accidents involving persons falling from a height exceeded 10 000 in each of the past three years. Will the Government inform this Council of the following:
(a) the number of prosecutions instituted by the Government under sections 6A and 6B of the Factories and Industrial Undertakings Ordinance in relation to workers engaged in overhead work without taking safety precautions;
(b) whether the Government has any plan to reinforce this aspect of occupational safety since workers are at present often seen to be engaged in overhead work without safety harness; and
(c) whether consideration has been given to enacting legislation requiring workers engaged in overhead work to take appropriate safety precautions?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, the number of occupational accidents under the "falls of person" category referred to by Mr PANG Chun hoi include minor injuries arising from slipping on the floor or tripping over objects. There are no separate statistics in respect of persons falling from a height.
(a) In 1992 and 1993, seven summonses against proprietors were taken out under section 6A of the Factories and Industrial Undertakings Ordinance in relation to workers engaged in overhead work without taking safety precautions. No prosecution has been taken out against employees under section 6B of the ordinance.
(b) During a four-month campaign this summer, the Labour Department has made 796 inspections to multi-storey buildings and construction sites. Such inspections include promoting the awareness of employers and workers of the need to undertake safety measures when engaged in overhead work, failing which prosecution action will be taken.
(c) There is already legislative control on working at height under the Construction Sites (Safety) Regulations covering all overhead work. Section 6B of the Factories and Industrial Undertakings Ordinance requires workers to take reasonable care for the health and safety of themselves and to co-operate with the proprietor in order that all the safety requirements under the ordinance can be complied with.
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In addition, we are preparing a set of new Factories and Industrial Undertakings (Suspended Working Platform) Regulation targeted at the safe operation of gondolas.
Park project at Gin Drinker's Bay
8. MR ALBERT CHAN asked (in Chinese): As the construction works of the park at Gin Drinker's Bay Landfill will soon be completed, will the Government inform this Council:
(a) when the park will be open to the public; if a date has yet to be fixed, why;
(b) on what criteria the decision was made to build a park on this landfill; what the assessment of the impact on the environment at the time was; and
(c) whether a review has been conducted on the feasibility of such a town planning project so that money would not be wasted on the construction of the project?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,
(a) No date has yet been fixed for the opening of the park by the Regional Council. This is because the Phase II works to be carried out by the Regional Services Department await finalization of the details of another works project which will affect Phase II of the park.
(b) The development of this park will make optimal use of the land created upon closure of the landfill and provide open space for use by the general public. However, given the possibility of settlement of the landfill surface during the initial period after its closure, substantial buildings or structures cannot be built on it. Parks and other recreation facilities are appropriate uses for such landfill sites, provided precautions are taken to prevent discharge of leachate and the build-up of landfill gas. On the advice of consultants, measures to deal with leachate and prevent landfill gas emissions will be part of the project.
(c) The Regional Services Department is waiting to proceed with Phase II of the park project as described in (a) above to avoid incurring unnecessary costs before the details are finalized.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1025 Floor areas described in flat sales literature
9. MR EDWARD HO asked: As there have been a number of cases recently concerning the sale of "diminished shop spaces in shopping arcades" in which the saleable areas of the shops differed greatly from the gross floor areas indicated on the flat sales literature, will the Government inform this Council:
(a) what legislative and/or other measures will be taken to ensure that the information provided by developers/real estate agents of redeveloped buildings on floor plans and on floor areas in flat sales literature is accurate; and
(b) whether consideration will be given to adopting a standardized formula for the calculation of gross and saleable floor areas?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, the Government's aim is to encourage developers to provide sufficient accurate information in their sales material as far as practicable. At present there is no statutory definition of the terms "gross floor areas" and "saleable floor areas". However, the latter term is commonly taken to refer to the floor area exclusively allocated to a unit but excluding common areas such as stairs and lift shafts. The Consent Scheme operated by the Lands Department has adopted a standard form of Agreement for Sale and Purchase where the definition of "saleable area" set out at Annex A is used. This definition was introduced after consultation with the Consumer Council, the Real Estate Developers Association, the Hong Kong Institute of Surveyors and the Royal Institute of Chartered Surveyors. The Law Society has also adopted a similar definition for Non-Consent cases. (Please see Annex B.) Thus at the time of signing the formal Agreement for Sale and Purchase in Consent and Non-Consent cases, purchasers should be well aware of the precise saleable area of the unit and can also check the floor plan of the unit attached to the Agreement.
The saleable area is one of a number of mandatory items to be disclosed in sales brochures and publicity materials for the sale of uncompleted units in developments that are subject to the Consent Scheme. For Non-Consent Scheme developments, at present it is a matter for the developer to decide whether or not to disclose saleable areas in the sales brochure. Nonetheless, a subcommittee of the Law Reform Commission is currently studying the subject of disclosure of information in sales material on uncompleted flats. The aim of the subcommittee is to ensure that sufficient information is available to the prospective purchaser in a practical and pragmatic fashion. The subcommittee is now finalizing its report. Thereafter the Government will study the recommendations carefully.
1026 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
In all cases, the prospective purchaser or tenant is well advised to carefully study all available information and, if possible, inspect the premises. He should also take his own private legal advice and, if necessary, instruct an architect or surveyor to give him an expert opinion on the premises.
Annex A
Definition of "Saleable Area"
under the Consent Scheme
Under the Consent Scheme, "saleable area" means:
"(i) in relation to a unit enclosed by walls, the floor area of such unit (which shall include the floor area of any balconies and verandahs), measured from the exterior of the enclosing walls of such unit except where such enclosing walls separate two adjoining units in which case the measurement shall be taken from the middle of those walls, and shall include the internal partitions and columns within such unit; but shall exclude the common parts outside the enclosing walls of such unit. Provided that if any of the enclosing walls abut onto a common area, then the whole thickness of the enclosing walls which so abut shall be included;
(ii) in relation to any cockloft, the floor area of such cockloft measured from the interior of the enclosing walls of such cockloft;
(iii) in relation to any bay window which does not extend to the floor level of a unit, the area of such bay window measured from the exterior of the enclosing walls or glass windows of such bay window and from the point where the bay window meets the wall dropping to the floor level of a unit but excluding the thickness of such wall;
(iv) in relation to any carparking space, the area of such carparking space measured from the interior of its demarcating lines or enclosing walls, as the case may be;
(v) in relation to any yard, terrace, garden, flat roof or roof, the area of such yard, terrace, garden, flat roof or roof measured from the interior of their boundary lines, and where the boundary consists of a wall, then it shall be measured from the interior of such wall."
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1027 Annex B
Definition of "Saleable Area"
under the Non-Consent Scheme
Under the Non-Consent Scheme, "saleable area" means:
"the floor area of the unit (which shall include the floor area of any balconies and verandahs) measured from the exterior of the enclosing walls of the said unit except where such enclosing walls separate two adjoining units in which case the measurement shall be taken to the middle of those walls, and shall include the internal partitions and columns within the said unit; but shall exclude the common parts outside the enclosing walls of the said unit provided that if any of the enclosing walls abut onto a common area, then the whole thickness of the enclosing walls which so abut shall be included. The saleable area shall not include:
(a) any cocklofts;
(b) any bay windows which do not extend to the floor level of the said unit,
(c) any carparking spaces, car ports, yards, terraces, gardens and roofs of any description."
Gondola accidents
10. MR EDWARD HO asked: In view of the recurrence of accidents in connection with gondolas used for the cleaning of glass walls of buildings, will the Government inform this Council whether there are plans:
(a) to step up inspection and to require regular maintenance of these gondolas; (b) to lay down the qualifications for gondola operators; and
(c) to enhance the cleaners' knowledge of work safety?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, the answers to Mr HO's three-part question are as follows:
(a) We intend to tighten control on the inspection and maintenance of gondolas by introducing a new set of Factories and Industrial Undertakings (Suspended Working Platform) Regulation by 1994. Existing control under the Factories and Industrial Undertakings (Lifting Appliances and Lifting Gear) Regulation will be
1028 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
incorporated into the proposed regulation specifically targeted at the safe operation of gondolas and other suspended working platforms. All gondolas must be examined and tested by a competent examiner periodically and under specified conditions (for example, after reerection or substantial repair). They must also be inspected at least once in the preceding seven days by a competent person before they are used. Lifting gears forming parts of the gondola must also be examined periodically.
During a four-month campaign held this summer, 796 inspections by the Labour Department were made to construction sites and multi-storey buildings, including gondolas. These efforts will continue.
(b) Under the proposed Factories and Industrial Undertakings (Suspended Working Platform) Regulation, the qualification of operators will be redefined as a person who has undergone training on the operational mechanism of a gondola and the safety aspects of working on a gondola.
(c) The Labour Department has distributed widely information leaflets and posters on gondola safety. Seminars to promote awareness on the technical and safety aspects of gondolas have also been organized and were well received. The Occupational Safety and Health Council has run courses on the use of safety harness. These promotional efforts will be sustained and stepped up as necessary.
Bus terminals on ground floor of commercial/residential buildings
11. MR WONG WAI-YIN asked (in Chinese): Will the Administration inform this Council:
(a) of the number of bus terminals located on the ground floor of commercial/residential buildings and their respective locations; how many of them are installed with ventilation facilities and which of them are not provided with such facilities; and
(b) whether measurements and assessments have been made of the air quality in these bus terminals; if so, what the findings are; whether the extent of air pollution in some of these bus terminals has been found to be adversely affecting the human body; if so, what effective measures will be taken to improve the situation?
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1029 SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,
(a) There are 39 transport terminals located on the ground floor of commercial/residential buildings and their respective locations are shown on the list at Annex. Twenty-eight of these terminals are equipped with mechanical ventilation systems and these are also indicated on the list.
(b) From March to September 1993, the Environmental Protection Department (EPD) conducted a survey of the air quality in six of the 27 transport terminals with mechanical ventilation systems, namely:
(i) Lam Tin Transport Interchange;
(ii) Tsuen Wan MTR Bus Terminus (Nam Fung Centre);
(iii) Sha Tin Central Bus Terminus;
(iv) China-Hong Kong City Terminal;
(v) Tai Po KCR Station Bus Terminus; and
(vi) Kai Tak Airport Terminal.
The data collected in these surveys has not yet been fully analyzed, but the preliminary indications are that in five of the six terminals one or more of the Hong Kong air quality objectives were exceeded. The main air pollutants are nitrogen dioxide, sulphur dioxide and particulates.
The poor air quality can be attributed mainly to inadequate or ineffective ventilation. The EPD has commissioned a study to formulate the design and operational requirements for ventilation systems in these facilities to achieve acceptable air quality standards. The study is expected to be completed by May 1994. In the meantime, the EPD has advised the managers of these terminals to take interim remedial measures, such as increasing the levels of ventilation and ensuring the proper operation and maintenance of their ventilation systems.
1030 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 Annex
Existing Transport Terminals on
Ground Floor of Commercial/Residential Buildings
Equipped with
Mechanical
Ventilation
District Name of Transport Terminals (With address/lot no.)
(A) InHong Kong
System
1. Central and Western
Central Bus and PLB Station (Exchange Square)
2. " Admiralty MTR Transport
√
Transport (East Terminus)
3. " Admiralty Transport
√
Interchange (Western Terminus)
4. " Public Transport Interchange at the Peak √ 5. Eastern Tin Hau MTR Transport Interchange √ 6. " Shau Kei Wan Transport Interchange √ 7. " Chai Wan MTR Interchange x (B) In Kowloon
8. Kowloon City Whampoa Garden Bus Terminus √ 9. " Kai Tak Airport Terminal √
10. Kwun Tong Kowloon Bay Bus Terminus
√
(NKIL 6115)
11. " Lam Tin Transport Interchange
√
(NKIL 6046)
12. " Laguna City Public Transport Terminus
√
(NKIL 6055)
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1031
Equipped with
Mechanical
Ventilation
District Name of Transport Terminals (With address/lot no.)
(B) In Kowloon
13. Sham Shui Po Cheung Shan Wan Plaza Bus Terminus (NKIL 5955)
System
√
14. Yau Tsim China-Hong Kong City Transport Terminal √ 15. Wong Tai Sin Lok Fu Bus Terminus √
16. " Wong Tai Sin Bus Terminus at
√
Lower Wong Tai Sin Estate
17. " Choi Wan Bus Terminus x (C) In New Territories
18. Shatin Shatin Central Bus Terminus √ 19. Tai Po Tai Po KCR Station Bus Terminus √ 20. " Tai Wo bus Terminus √ 21. " Fu Shin Bus Terminus x
22. Tsuen Wan Tsuen Wan MTR Bus Terminus
√
(Nam Fung Centre)
23. " Bayview Garden Bus Terminus √ 24. " Riviera Garden Bus Terminus √ 25. " New Tsuen Wan Ferry Bus Terminus √
26. " Sai lau Kok Road Public Light
√
Bus Terminus
27. " Lei Muk Shue Bus Terminus x 28. Kwai Tsing Kwai Fong MTR Station √ 29. " Kwai Hing MTR Station √
1032 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
Equipped with
Mechanical
Ventilation
District Name of Transport Terminals (With address/lot no.)
(C) In New Territories
System
30. Kwai Tsing Kwai Ching Central Bus Terminus x 31. " Cheung Hong Estate Bus Terminus x 32. " Cheung On Bus Terminus x 33. Kwai Tsing Tsing Yi Estate Bus Terminus x 34. Tuen Mun Tuen Mun Pier Head Transport Interchange x 35. " Sam Shing Transport Interchange √ 36. " Tuen Mun Town Centre Bus Terminus √ 37. " Leung King Bus Terminus X 38. Yuen Long Long Ping Bus Terminus X 39. Sai Kung Tsui Lam Bus Terminus √ Legend
√ Equipped with mechanical ventilation system.
x Not equipped with mechanical ventilation system.
Outlying islands without water and electricity supplies
12. MR CHIM PUI-CHUNG asked (in Chinese): Will the Government inform this Council:
(a) of the number of outlying islands without water and electricity supplies; and
(b) whether consideration will be given to selling or leasing these islands to the private sector for development?
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1033 SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,
(a) There are slightly less than 290 islands in Hong Kong. The majority of them are very small; and some 60% are less than 1 hectare in area. (To put this in perspective, Chater Garden covers 1.2 hectares and Victoria Park 20.) Most of the islands are uninhabited. Of those which are inhabited nine have a water supply provided by the Water Supplies Department and 19 an electricity supply provided by the power companies. Some islands have other sources of water and electricity supply such as wells and individually owned diesel generators. There are no detailed records beyond what is contained in the Annex.
(b) There is no indication of any demand for islands with or without water and electricity supplies for development purposes. If applications are received they will be considered on their merits.
Annex
Islands with electricity supply by power companies and
water supply by Water Supplies Department
Electricity Water
1. Lamma Island X X 2. Ap Lei Chau X X 3. Green Island X
4. Lantau Island X X 5. Cheung Chau X X 6. Hei Ling Chau X X 7. Peng Chau X X 8. Chek Lap Kok X
9. Tai A Chau X X 10. Shek Kwu Chau X
11. Shek Tsai Po/Tai O X
12. Ap Chau X
13. Kat O Chau X
14. Kiu Tsui Chau X
15. Tap Mun Chau X
16. Yim Tin Tsai X
17. Tung Lung Island X
18. Tsing Yi Island X X 19. Ma Wan X X
1034 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 Burglaries at Customs and Excise seized Goods Store
13. MR WONG WAI-YIN asked (in Chinese): Regarding the recent burglary of a government warehouse which is used for storing confiscated goods, will the Government inform this Council of:
(a) the number of such crimes during the past year; the quantity of goods lost and their value; and
(b) the measures in place to prevent the recurrence of such crimes?
SECRETARY FOR SECURITY: Mr President, during the past year, there have been two burglaries at the Customs and Excise Tuen Mun Seized Goods Store. The first case occurred on 1 March when some $2.2 million worth of seized goods, including 247 video cassette recorders, 749 video cassette players, 38 video cassette tapes, 104 microphones and 1 400 cigarettes, were stolen. The second case occurred on 15 October; it involved the loss of some $0.9 million worth of seized goods, including 10 video cassette recorders, 260 video cassette players and 340 400 cigarettes.
Customs and Excise Seized Goods Stores are all fitted with strong locks, iron doors, cross bars and iron window grills. Perimeter fencing and floodlights are also installed. Watchmen are employed to patrol and guard the Stores. There is also control on the entry and exit of authorized personnel. There are other detailed instructions and guidelines on security measures. The Customs and Excise Department is now arranging for the installation of antiburglary alarm systems in all its major Seized Goods Stores, and the strengthening of the patrolling and guarding watchmen teams, in particular those on night shifts. The police have also given advice on how to prevent such crimes.
Derivative transactions in Hong Kong
14. DR HUANG CHEN-YA asked: In view of the rapid growth of derivative transactions worldwide, will the Government inform this Council:
(a) of the current extent and projected growth in the near future of derivative transactions in Hong Kong;
(b) whether there are measures to ensure that these financial instruments are given the opportunity to develop but not at the expense of putting Hong Kong's financial and banking system at risk; and
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1035
(c) whether there are plans to introduce guidelines, codes of practices or legislation to safeguard the financial and banking system in this connection?
SECRETARY FOR FINANCIAL SERVICES: Mr President,
(a) Financial derivative products traded at the Hong Kong Futures Exchange (HKFE) include the Hang Seng Index (HSI) Futures contracts; contracts on the four Hang Seng Sub-Indices; the Three Month Hong Kong Interbank Offer Rate Futures contracts; and the HSI Options contracts. Among them, the HSI futures and options are actively traded. Average daily turnover of HSI futures rose from 4 347 contracts in 1992 to 8 377 contracts for the first 10 months of 1993. The figure for 1989 was only 959 contracts. HSI options, launched in March this year, also saw a growth in daily turnover from 529 contracts in April to 2 833 contracts in October. The HKFE is examining the feasibility of introducing additional products such as futures and options on currencies or other indices.
On the Stock Exchange of Hong Kong Limited (SEHK), the only derivative product listed is warrants. Their issuance, listing and trading are subject to SEHK rules. The SEHK is developing a programme to introduce exchange traded options on individual stocks in 1994.
There are other derivatives transacted in the financial markets. For authorized institutions under the Banking Ordinance, their business in this area is mainly in interest rate and exchange rate related contracts. The nominal value on such transactions has increased rapidly, rising from $5,122 billion at end-December 1989 to about $12,000 billion at end-June 1993.
While the nominal value is large, the risk involved is much smaller. For local banks, the risk exposure for capital adequacy purposes amounts to only $16 billion compared with a nominal value of $4,300 billion, which is about 1.5% of the risk assets of these banks.
It is difficult to project the growth rate of transactions in derivatives since the activities depend on a number of conditions such as the overall investment sentiment. In general, the volume of activities can be expected to grow in future, possibly in line with the growth in the financial markets.
(b) When HSI options was introduced in March 1993, the HKFE created a new set of regulations for the product and procured a system from the Options Clearing Corporation in the United States which utilizes the most advanced methodologies for determining risk and
1036 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
establishing appropriate levels of margining to adequately protect the Hong Kong Clearing Company (HKCC), market participants and the market as a whole. The risk management system also employs various tools including the imposition of position limits and, where appropriate, the ability of the HKCC to make intra-day margin calls. This system is also utilized in respect of futures contracts traded on the HKFE.
For the SEHK, the Central Clearing and Settlement System introduced in 1992 substantially enhanced the risk management capability. Under the system, the Hong Kong Securities Clearing Company becomes the counterparty to transactions recorded on the SEHK and guarantees settlement of each transaction. In relation to the introduction of stock options trading, the SEHK will employ extensive tools for risk management purpose. It is contemplating the procurement of an automated trading system and a clearing system to effectively manage risk.
Authorized institutions involved in interest rate and exchange rate derivatives are exposed to certain risks which are supervised by the Hong Kong Monetary Authority (HKMA).
First, the credit risk of such contracts is captured under the capital adequacy rules and institutions are required to keep adequate capital for such exposure in accordance with international standards recommended by the Basle Committee on Banking Supervision. Secondly, the currency risk of authorized institutions including that arising from derivative products is governed by the guidelines issued by the HKMA. Open positions in currencies are limited to 10% of the capital base for positions in any one single currency and 15% of capital base for the aggregate position. Thirdly, the HKMA holds regular discussions with authorized institutions on systems risk and wishes to be satisfied that those with significant business in derivative products have adequate systems in place to monitor risks associated with such business.
(c) The HKFE introduced new rules and regulations prior to the commencement of trading of HSI options which supplemented rules relating to futures contracts. These rules and regulations were approved by the Securities and Futures Commission (SFC) and include provisions covering requirements such as adequate disclosure of the risk to investors and the establishment of risk management measures and utilization of the HKFE's risk control methodology.
Similar rules, regulations and risk management measures will be required before the SEHK introduces stock options. These rules again require the approval of the SFC. The SFC will also make
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1037
regulation under the Securities Ordinance, in the absence of which option trading is prohibited.
On the legislative front, an attempt to rationalize securities and futures related legislations is being contemplated, under which additional protections regarding the issuance and trading of derivative instruments will be introduced. Besides, amendments to the Securities (Insider Dealing) Ordinance are being considered to extend the Ordinance to derivative products such as stock options, third party issued warrants and depository receipts.
On the banking side, there are already guidelines and supervisory provisions on the regulation of credit risk, currency risk and system risk arising from derivative transactions as spelt out in (b). Following the issue of two consultative papers on the supervision of interest rate risk and market risk on trading in on- and off balance sheet products by the Basle Committee on Banking Supervision, the HKMA has conducted surveys in respect of authorized institutions and consideration will be given to whether changes to its guidelines or the Banking Ordinance is required when the Basle Committee's recommendations are finalized.
When all the measures are in place, the regulatory authorities will keep them under review so as to keep abreast with market development.
Housing production allocation
15. MISS EMILY LAU asked (in Chinese): The Housing Authority has recently decided that 10% of the new housing production in urban districts will be set aside for the annual waiting list applicants starting from 1994-95 and the boundaries of the districts available to public housing applicants for option will be so adjusted that there will be eight instead of the existing 14 localities while the fourth allocation offer will be dispensed with.
Will the Government inform this Council:
(a) how the remaining 90% of the new housing production in urban districts will be allocated and how it differs from the previous allocation arrangements; what impacts the new arrangement will have on the various allocation arrangements in respect of urban renewal, clearance and fire;
(b) why the boundaries of the districts available for option should be extended; and
1038 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
(c) whether the Housing Authority will give consideration to applicants who have opted for specified districts or estates on particular grounds; what kinds of situation would be accepted as valid grounds; and on what criteria such special cases will be assessed?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,
(a) The purpose of setting aside 10% of new housing production in urban districts for waiting list applicants starting from 1994-95 is to help clear the backlog of long standing cases which are mainly attributable to the applicants' insistence on being rehoused in urban districts where supply is very limited. Allocation of the remaining 90% of new urban flats will continue to be shared among various other rehousing categories. Since 10% of new urban flats amounts to only about 970 flats per year in the next four years, the impact of the new arrangement on other rehousing categories should be minimal because there will be ample supply of refurbished vacant flats in the urban areas to meet demand.
(b) The reason for regrouping the districts of choice for waiting list applicants is to enable the Authority to make an earlier housing offer to applicants, with a consequential benefit of reducing their waiting time. The regrouping recognizes the fact that there will be little or possibly no new rental production in some districts in the coming years, and that it will not be reasonable to expect applicants to wait indefinitely. Given that Hong Kong is not a large place and is well served by public transport, applicants will be encouraged to be more flexible in considering housing offers with better prospects of supply.
(c) Allocation of flats is normally made in line with the expressed preference for a district but requests for a specific estate or floor level are only entertained on medical, social or compassionate grounds and subject to the availability. These special needs are assessed on their individual merits, having regard to the recommendations of the Social Welfare Department and the Department of Health where necessary.
Eastern Harbour Crossing
16. MR FRED LI asked (in Chinese): The extremely serious congestion at the Eastern Harbour Crossing during rush hours recently has resulted in long queues of vehicles in the two centre and industrial areas of Kwun Tong, causing a great nuisance to the residents there. Will the Government inform this Council of the following:
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1039
(a) the data for the monthly traffic flow of the Eastern Harbour Crossing since its commissioning; and
(b) the improvement measures in place to relieve the traffic congestion in the entire town centre of Kwun Tong caused by the congestion inside the Eastern Harbour Crossing?
SECRETARY FOR TRANSPORT: Mr President,
(a) Traffic volume in the Eastern Harbour Crossing has increased from a daily average of about 19 500 vehicles when the tunnel opened in September 1989 to around 83 500 in October 1993. Detailed statistics are given in the appendix to this reply.
(b) Traffic is heaviest during the evening peak commuting hours. To try to improve traffic flow, an experimental tidal flow scheme has been tried occasionally, with three tunnel lanes being utilized in the evenings for Kowloon bound traffic. This has sometimes resulted in a backup in traffic bound for Hong Kong and congestion in the Kwun Tong area.
The Transport Department is now reviewing the trial scheme in conjunction with the tunnel company and the Traffic Police to establish its overall effectiveness. As part of this review consideration will be given to other measures that might be introduced and, in this respect, the problem of traffic snarls in the town centre of Kwun Tong will certainly be taken into account.
Appendix
EASTERN HARBOUR CROSSING
AVERAGE DAILY TRAFFIC
Month 1989 1990 1991 1992 1993 January - 26 329 36 694 63 293 71 072 February - 26 127 35 769 56 012 73 613 March - 29 590 38 653 64 362 78 046 April - 29 066 39 989 64 181 76 112 May - 30 877 41 558 66 702 79 283 June - 31 456 43 459 66 742 77 930 July - 33 190 52 240 69 162 82 954 August - 33 796 55 441 70 920 82 178 September 19 398 34 568 57 602 73 260 81 853 October 20 543 35 295 59 003 73 153 83 475
November 23 675 37 117 61 585 74 082 - December 25 337 37 893 62 025 76 647 -
1040 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 First Reading of Bills
MAGISTRATES (AMENDMENT) BILL 1993
NEW TERRITORIES LAND (EXEMPTION) BILL
INSURANCE COMPANIES (AMENDMENT) (NO. 3) BILL 1993
Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).
Second Reading of Bills
MAGISTRATES (AMENDMENT) BILL 1993
THE ATTORNEY GENERAL moved the Second Reading of: "A Bill to amend the Magistrates Ordinance."
He said: Mr President, I move that the Magistrates (Amendment) Bill 1993 be read the Second time. The Bill seeks to give effect to a number of improvements to the processing of summonses in the magistracies.
Summonses in the magistracies are now processed by a computerized case and summons management system which was introduced in July 1992. This computerized system issues standardized summons forms, keeps track of outstanding payments, and helps to speed up the collection of fines.
In the light of the operating experience of the computerized case and summons management system in the past year, a number of improvements have been identified in respect of the issue of a summons to a defendant and mode of service, manner of making a complaint or laying an information, proceedings at hearings, and provisions as to witnesses. The Bill, when implemented, will give effect to these improvements which are mainly intended to rationalize existing operational practices in the processing of summonses.
Bill referred to the House Committee pursuant to Standing Order 42(3A).
NEW TERRITORIES LAND (EXEMPTION) BILL
THE SECRETARY FOR HOME AFFAIRS moved the Second Reading of: "A Bill to exempt certain land in the New Territories from the application of Part II of the New Territories Ordinance."
He said: Mr President, I move that the New Territories Land (Exemption) Bill be read a Second time.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1041
The purpose of the Bill is to remove doubts about existing titles and the rights of succession to land and properties in the New Territories. This is done by granting exemption to non-rural land in the New Territories from the application of Part II of the New Territories Ordinance with retrospective effect from the date of the relevant land grant.
At present, almost all land and properties in the New Territories are subject to the New Territories Ordinance, which provides, among other things, that the court shall have power to recognize and enforce any Chinese custom or customary right in any proceedings in relation to land in the New Territories. Landowners have several means by which the effect of the customary rules of succession can be avoided if they so wish. Depending on individual circumstances, the available means may include applying for exemption under the New Territories Ordinance if the individual is the sole owner, assigning the land while still alive, or holding the land in the name of a company. Owners may also make a will or hold the property as joint tenants.
However, people who have bought properties subject to Part II of the New Territories Ordinance are generally not aware that Chinese customary law may apply to their properties for the purpose of succession. Most assume that the general laws of Hong Kong would apply to their properties whether they die testate or intestate. Because of this, probate of wills or letters of administration have been obtained and many conveyances of land in the New Territories may have been carried out on the assumption that the general laws of Hong Kong, including the laws of succession to land, apply.
There has been considerable concern expressed recently over possible doubts as to succession rights and property titles in the New Territories. The Administration is well aware of this. As I mentioned in this Council during the motion debate on succession rights in the New Territories held on 13 October this year, we have been actively pursuing measures to allay public anxiety and to address any potential problem which property owners in the New Territories may face.
As a first step, we have already implemented administrative measures with effect from June this year to exempt all new grants of land in the New Territories from the application of the New Territories Ordinance, except for grants to indigenous villagers, for example, under the Small House Policy or to customary bodies established by clans and families in the New Territories. While these administrative measures eliminate the problem for land granted after June 1993, there is no provision under existing legislation for the Government to grant exemption to land already granted prior to that date and now held in undivided shares by individual owners, unless all of them join together to apply. Accordingly, the Bill before this Council now seeks to overcome the problem by deeming all non-rural land (including undivided shares) in the New Territories to have always been exempt from the application of the New Territories Ordinance.
1042 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
The Bill will also remove doubt about existing titles to land or property in the New Territories which may have been purchased from a vendor who acquired the property by registration of probate, letters of administration or customary succession from a deceased owner. As there is a general uncertainty of what the true legal position may be, there may have been many conveyances in the New Territories, the validity of which may be subject to challenge and which now form part of that title. It is, therefore, necessary to take steps to retrospectively validate these conveyances.
The Bill also contains provisions to facilitate those owners of rural land who wish to avoid the effect of customary rules of succession on their property by providing for the exemption of land, including undivided shares, from the application of Part II of the New Territories Ordinance, by the Director of Lands upon application of the landowner concerned by a simple and inexpensive procedure.
As regards owners of non-rural land, they will be aware that their land is exempt from the application of the New Territories Ordinance and they may resort to the remedy of making a will if they wish customary rules of succession to apply.
Mr President, I now turn to the Bill. Clause 2 is a definition section. The item "land" has the same meaning as in the New Territories Ordinance and includes undivided shares in land. The expression "rural land" means land in the New Territories being the subject of a Crown lease of an old schedule lot, village lot, small house or similar rural holding as defined in the Bill.
Clause 3 provides that any land in the New Territories, other than rural land, shall from the date of the lease be deemed to have always been exempt from Part II of the New Territories Ordinance.
Clauses 4 and 5 are savings clauses for transactions under the general law and under the New Territories Ordinance; and for customary land trusts.
Clause 6 enables an owner of land to apply for the exemption of that land from Part II of the New Territories Ordinance.
Bill referred to the House Committee pursuant to Standing Order 42(3A).
INSURANCE COMPANIES (AMENDMENT) (NO. 3) BILL 1993
THE SECRETARY FOR FINANCIAL SERVICES moved the Second Reading of: "A Bill to amend the Insurance Companies Ordinance."
He said: Mr President, I move the Second Reading of the Insurance Companies (Amendment) (No. 3) Bill 1993.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1043
This Bill seeks to give better protection to policy holders by providing legislative support to the self-regulation of agents and brokers.
Insurers operating in Hong Kong are subject to prudential regulation by the Insurance Authority under the Insurance Companies Ordinance.
The Law Reform Commission, in its report issued in 1986, highlighted an absence of professional standards among insurance brokers and agents and a confusion over their roles and liabilities. It therefore recommended that they be subject to the same supervision as insurers.
Continued public complaints, including misrepresentation, inadequate explanation of insurance contracts and misappropriation of premiums received, underline the need for such supervision. Consequently in January this year the Hong Kong Federation of Insurers, in consultation with the Government, introduced a non-statutory Code of Practice for the Administration of Agents. In February, the Hong Kong Confederation of Insurance Brokers was founded. The Confederation requires its members to conform with its non-statutory Rules and Regulations for Membership and Professional Conduct.
However, complaints from members of the public against insurance agents and brokers have not abated despite the industry's efforts at self-regulation. We share the concern of the insurance industry that voluntary codes, rules, regulations and criteria have not proved fully effective in the absence of statutory backing.
We therefore propose, with the industry's agreement, to introduce legislation to provide an effective sanction against non-compliance by agents, brokers and insurers.
Clause 4 of the Bill sets out the requirements for self-regulation by defining the roles of agents and brokers, making insurers responsible for the actions of their agents and enhancing transparency of representation by agents.
The Bill provides that insurance agents must be properly appointed and limits the number of insurers an agent may represent. All insurers are required to comply with the Code of Practice for the Administration of Agents.
The Bill would also require brokers to meet specified standards before they could be authorized. They must keep clients' monies in separate accounts and be properly and regularly audited.
To enhance supervision the Bill would allow the Authority to require production of books and records if necessary and to withdraw authorization of brokers and apply for winding up of agents and brokers under specified circumstances.
1044 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
The Bill further proposes that brokers, who arrange reinsurance for Hong Kong insurers overseas, should be exempted, provided that they do not have an agent or place of business here. Overseas insurers who only carry on reinsurance business here are already exempt under the Insurance Companies Ordinance.
Finally, to ensure effective operation, the Bill proposes penalties for non-compliance. Bill referred to the House Committee pursuant to Standing Order 42(3A).
FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) BILL 1993 Resumption of debate on Second Reading which was moved on 13 October 1993 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
IMMIGRATION (AMENDMENT) (NO. 2) BILL 1993
Resumption of debate on Second Reading which was moved on 27 October 1993 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
WATER POLLUTION CONTROL (AMENDMENT) BILL 1992
Resumption of debate on Second Reading which was moved on 9 December 1992 Question on Second Reading proposed.
MISS CHRISTINE LOH: Mr President, the Water Pollution Control (Amendment) Bill 1992 seeks to amend the principal ordinance to improve its
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1045
enforcement effectiveness by adding regulation-making powers necessary for the construction of sewerage and related works for the control of water pollution; and generally by increasing penalties and making changes to administrative provisions.
The Bill was introduced into this Council on 9 December 1992. A Bills Committee of 10 Members was formed and commenced scrutiny of the Bill on 9 July 1993. Altogether we held four meetings, including two with the Administration, and considered two submissions from the Yuen Long District Board and the Heung Yee Kuk. As Chairman of the Bills Committee, I would like to take this opportunity to thank my colleagues in the Committee for the time and effort they put in the discussions, the Administration for their co-operation and the interested organizations for submitting their views.
Mr President, I now come to the major issues considered by the Committee.
The main issue considered is the penalty level. The current maximum penalty, as laid down in the principal ordinance, for making illegal discharges of waste or polluting matters in a water control zone is a fine of $100,000 for a first offence, $200,000 for a second and subsequent offence, or for a continuing offence, $5,000 for each day during which it is proved to the satisfaction of the court that the offence has continued. Under the Bill, a maximum of six months' imprisonment will be added to create a deterrent effect. The Committee generally supports the additional custodial sentence. As for the financial penalty, according to information obtained from the Administration, the fines imposed by the courts in 1992 amounted to only 10% of the maximum penalty. The Committee therefore considers that the existing levels of maximum fines are insufficient to achieve the necessary deterrent effect.
In view of the public concern over water pollution offences and the need to send a clear message to both the Judiciary and the potential offenders of the severity of the water pollution problem, the Committee considers that the levels of maximum fines should be doubled. After discussion, the Administration agreed with the increased penalties. I shall move the necessary amendment at the Committee stage.
As regards discharges of poisonous and noxious matters into communal sewers or communal drains, a separate offence with higher penalties will be created under the Bill. Such discharges are potentially damaging to a drainage or sewerage system and can endanger the health of workmen engaged in the operation or maintenance of the system. The proposed penalties are as follows — a fine of $200,000 and imprisonment for one year for a first offence; a fine of $500,000 and imprisonment for two years for a second and subsequent offence; and in the case of a continuing offence, a fine of $20,000 for each day the offence continues. For the reasons already given, the Committee considers that the maximum fines should be doubled, to maintain relativity with the penalties for illegal discharges of waste and polluting matters. Similarly, the
1046 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
proposed maximum fine of $100,000 for contravening specified provisions of regulations or specified conditions of a licence should be doubled as well. After discussion, the Administration agreed with the increased penalties. I shall again move the necessary amendments at the Committee stage.
In order to ensure that penalties for all environmental offences are consistent, the Administration has agreed to undertake an overall review of the penalty levels in other environmental protection ordinances and to submit appropriate amendments when the opportunity arises.
Another point of concern raised by the Committee is that authorized officers are empowered to enter commercial premises without a warrant whereas it is necessary to have a warrant to enter domestic premises. The Administration explained that the privacy of a person's home should not be disturbed without judicial overview to protect his rights. However, commercial and industrial premises are likely to be the sources of major polluting discharge, and such premises are more readily accessible to the public. Any restriction on entry will seriously impair the effectiveness of enforcement work. The Administration further assured the Committee that the inspectorate-level officers concerned must be authorized by the Director of Environmental Protection personally. The Committee is satisfied with the Administration's explanation.
Finally, the Committee has raised a number of related issues which are outside the ambit of the Bill. It has therefore been decided that they should be considered by the appropriate Legislative Council Panel. These include: (1) monitoring the overall review on the penalty levels to be undertaken by the Administration; (2) organizing seminars for judges on the problem of pollution and its effect on the environment; (3) exploring other ways to impress upon the Judiciary that environmental offences should carry heavy penalties, for example, examining the extent of the prosecution's role in the sentencing and processing and finally pursuing the question of the criminal liability of individual civil servants involved in offending discharges. The Legislative Council Panel on Environmental Affairs or the Panel on Administration of Justice and Legal Services may be the appropriate forum to follow up on these matters.
With these remarks, I support the Bill.
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, I am grateful to the Honourable Christine LOH, the Chairman of the Bills Committee to study the Water Pollution Control (Amendment) Bill, for the careful consideration given by the Committee to the Bill, and for the amendments proposed.
These are mainly related to the maximum penalties for making illegal discharges under clause 7, and to the power of entry into non-domestic premises
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1047
by authorized officers, a power proposed under clause 24 of the Bill to enable such officers to take urgent action to abate a seriously polluting discharge. I will refer to these issues in my speech, and to the timing of the regulations to be made under the Amendment Bill.
Maximum penalties
To bring the penalty provisions of the Water Pollution Control Ordinance in line with other environmental Ordinances, the Amendment Bill proposes, under clause 7, a custodial sentence of a maximum of six months for the offence of making an illegal discharge of polluting matter in a water control zone. Also under clause 7, it proposes that the discharges of poisonous and noxious matters into communal sewers or drains be made a separate offence. The same clause further proposes that the maximum penalties for such offence should be a fine of $200,000 and imprisonment for one year for the first offence, a fine of $500,000 and imprisonment for two years for a second and subsequent offence, and in the case of a continuing offence, a fine of $20,000 for each day the offence continues.
The Bills Committee was of the view that the proposed penalties should be increased further to reflect more fully the increasing concern of the community for environmental protection, and to deter potential offenders further. The Administration is ready to accept these proposals and will therefore support amendments to double the maximum fines in the Amendment Bill, to be moved by the Chairman of the Bills Committee at the Committee stage.
The Administration will also take steps to review the penalty provisions for similar offences in other environmental Ordinances when amendments to these Ordinances are made.
Power of entry to non-domestic premises
There was some concern that authorized officers were empowered under the Amendment Bill to enter non-domestic premises without a warrant. It should be noted that for an entry into any domestic premises, the Bill proposes in clause 24 the need for a warrant in order to adequately protect the privacy of a person's home; such warrants can only be issued on the approval of a magistrate under clause 24 of the Amendment Bill. However, in the case of commercial or industrial establishments, which are in any case more readily accessible to the public, the same degree of privacy does not apply. Moreover, to restrict entry in such cases could adversely affect the enforcement work of the Environmental Protection Department which must, in most cases, act quickly to collect evidence to prove an offence or to stop pollution caused by an illegal discharge. In such cases, the level of pollution associated with such discharges is potentially much greater than that associated with discharges from residential premises because discharges from commercial or industrial establishments are greater in volume and likely to carry more pollutants. I am
1048 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
therefore grateful for the Bills Committee's support for entry to non-domestic premises not to require a warrant in the circumstances I have described.
Connections to public sewerage
One of the objectives of the Amendment Bill is to add regulation-making powers to enable the Authority to require the connection of private drainage to public sewerage.
We are now working on the new regulations to be made under the Amendment Bill. Subject to the approval of the Amendment Bill by this Council, these regulations should be tabled before the Council early next year.
Thank you, Mr President.
Question on the Second Reading of the Bill put and agreed to.
Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
Committee stage of Bills
Council went into Committee.
FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) BILL 1993 Clauses 1 to 10 were agreed to.
IMMIGRATION (AMENDMENT) (NO. 2) BILL 1993
Clauses 1 to 8 and 10 to 16 were agreed to.
Clause 9
SECRETARY FOR SECURITY: Mr Chairman, I move that clause 9 be amended as set out in the paper circulated to Members.
A recent submission from the Law Society has caused our legal advisers to recognize that clause 9, as drafted, does not achieve the desired objective. The result of the clause as drafted would be that the presumption would operate where a police officer certified the existence of reasonable grounds for believing that a person is an owner, agent, captain or crew member of a ship.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1049
Arguably, a court would be precluded from looking behind the existence of the certificate and satisfying itself as to the reasonableness of the officer's belief.
The amendment therefore seeks to make it quite clear that it is the court which must be satisfied that the application of the presumption is justified in each case.
I am grateful to the Law Society for drawing attention to this matter.
Proposed amendment
Clause 9
That clause 9 be amended, by deleting the clause and substituting —
"9. Proof
Section 37K(2) is repealed and the following substituted -
"(2) Where a person is charged with an offence under this Part as being, and there are reasonable grounds for believing that such person may be -
(a) the owner of a ship;
(b) the agent of the owner of a ship; or
(c) a member of the crew of a ship,
that person shall be presumed to be such owner, agent or member, as the case may be, in the absence of evidence to the contrary.".".
Question on the amendment proposed, put and agreed to.
Question on clause 9, as amended, proposed, put and agreed to.
WATER POLLUTION CONTROL (AMENDMENT) BILL 1992
Clauses 1 to 6, 8 to 27 and 29 to 30 were agreed to.
Clauses 7 and 28
MISS CHRISTINE LOH: Mr Chairman, I move that clauses 7 and 28(d) of the Water Pollution Control (Amendment) Bill 1992 be amended as set out under my name in the paper circulated to Members.
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As mentioned in my speech at the resumption of the Second Reading debate, according to information and statistics supplied by the Administration, there was a substantial difference between the average fine in the past few years and the maximum penalty laid down in the Water Pollution Control Ordinance. The options of daily fines and appeal to a higher court on the fines imposed did not seem to have been used. The Bills Committee therefore considers it necessary to take this opportunity to double the maximum penalties in order to impress upon all parties concerned that the water pollution problem should be taken very seriously. We believe that the proposed amendments will be better able to express the legislative intent of this Council.
After the increased penalties come into effect, they will fall out of line with those for similar offences. However, we are given to understand that the number of environmental Ordinances are in the process of being updated. Opportunity will be available to amend them accordingly in order to maintain consistency.
Mr Chairman, with these remarks, I beg to move.
Proposed amendments
Clause 7
That clause 7 be amended —
(a) by adding -
"(ba) by repealing "$100,000", "$200,000" and "$5,000" and substituting "$200,000", "$400,000" and "$10,000" respectively;".
(b) in paragraph (d), in the proposed section 11(2) by deleting "$200,000", "$500,000" and "$20,000" and substituting "$400,000", "$1 million" and "$40,000" respectively.
Clause 28
That the clause 28(d) be amended, in the proposed section 46(3) by deleting "$100,000" and substituting "$200,000".
Question on the amendments proposed, put and agreed to.
Question on clauses 7 and 28, as amended, proposed, put and agreed to. Council then resumed.
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1051 Third Reading of Bills
THE ATTORNEY GENERAL reported that the
FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) BILL 1993 had passed through Committee without amendment and the
IMMIGRATION (AMENDMENT) (NO. 2) BILL 1993 and WATER POLLUTION CONTROL (AMENDMENT) BILL 1992
had passed through Committee with amendments. He moved the Third Reading of the Bills. Question on the Third Reading of the Bills proposed, put and agreed to. Bills read the Third time and passed.
Members' motions
PRESIDENT: I have accepted the recommendations of the House Committee as to time limits on speeches for the motion debates and Members were informed by circular on 19 November. The mover of the motion will have 15 minutes for his speech including his reply and another five minutes to reply to proposed amendments. Other Members, including movers of amendments, will have seven minutes for their speeches. Under Standing Order 27A, I am required to direct any Member speaking in excess of the specified time to discontinue his speech.
CONTAINER TRANSPORT
MR LEE WING-TAT moved the following motion:
"Since it is expected that the development of Container Terminal 9 project in Tsing Yi will not be completed by mid-1995, hence losing its original advantage in timing, this Council urges the Government to shelve the project, and to develop at full speed a container port at North Lantau together with the transport infrastructure in the adjacent districts including Kwai Tsing and Tsuen Wan, so as to meet the growing demand in the volume of container and passenger transport."
MR LEE WING-TAT (in Cantonese): Mr President, port facilities have always been very important to Hong Kong's import and export trade. In 1992, 100 million tonnes of freight was handled in the port of Hong Kong, and port-related
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services accounted for 15% of our GDP, providing 350 000 job opportunities. Hong Kong's deep water harbour can be said to be the starting point of our economic development, and it is the lifeline of our trade. As port facilities are so important to our trade and economic developments, the United Democrats of Hong Kong (UDHK) support the Government in making greater investment in port development and formulating comprehensive long-term plans.
Mr President, the development of Hong Kong into a container port began in the 1970s, when the first container terminal came into operation in Kwai Chung. Over the past 20 years or so, though the Government developed the Kwai Chung container terminal in phases in response to the volume of container transport, there has never been any comprehensive long-term planning. Apart from a large container terminal and its backup facilities, there are also industrial areas and residential areas in Kwai Chung. Such chaotic planning is totally not in line with the standard of the 1990s. The consequent traffic and environmental problems have been getting more serious with the rising volume of container transport. It was not until 1989 when the Government published The Port and Airport Development Strategy Review that the first comprehensive planning for Hong Kong's port development was conducted. The review concluded that towards the beginning of the 21st century, the development of container terminals would all be at Lantau. Judging from the perspectives of town planning, traffic, environment, trade and economy, the container terminal facilities at Lantau will be better than those at Kwai Chung and Tsing Yi. With the rapid growth in the volume of shipping in Hong Kong, mid-stream operations by lighters have also come a long way despite the nearly total absence of government support. With their very flexible mode of operation and at an operation cost of only half of that of container terminals, the volume of container transport handled by mid-stream operations increased in 1992 to 30% of the total volume of freight handled. The growth in volume of container transport handled by mid-stream operations greatly outstripped that of container terminals in the past few years.
Mr President, the questions under debate today are: After repeated slippages, is it still necessary to construct the CT9 at Tsing Yi? Is the project still commercially viable? Between the little economic benefits left in the CT9 project and the quality of life of the 1.4 million people of southwest New Territories, what should our choice be?
Mr President, in early 1992 when the Executive Council decided to construct CT9 at Tsing Yi, the Government stressed that Tsing Yi was the only feasible site for a new deep water container terminal in the urban areas in the run-up to 1997. The Government even claimed that the first berth of CT9 could be completed on schedule in mid-1995. However, the fact now is that, because China has all along withheld its consent to the CT9 franchise, the project is now already nine months behind schedule. As the Sino-British row over Hong Kong's political system is likely to continue, it is not expected that the Joint Liaison Group would reach an agreement on CT9 at its December
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1053
meeting. The next JLG meeting would not take place until early next year. This means that the CT9 project would at least be 12 months to 18 months behind schedule. Its first berth would probably not be completed until the middle or the end of 1996. UDHK do not approve of the way in which China is linking economic issues to political issues. In any case, to tolerate China's unreasonable demands again and again is not the correct approach. The choice before the Government is either to go ahead with the CT9 project at once, regardless of China's objections or to scrap the project and proceed at full speed to develop the container terminal at North Lantau. However, the Government is not doing anything but just bides its time. Mr Jimmy McGREGOR has made the point that China, which is objecting to the CT9 project now, will similarly object to CT10. I do not agree with his analysis. As the first berth of CT9 has to be completed by mid-1995, time is very pressing. If the CT9 project gets started right now in the middle of the Sino-British row over Hong Kong's political system, China will object all the more because the CT9 franchise would be awarded by private treaty. In contrast, the CT10 project is not scheduled to be completed until mid-1997. The go-ahead can wait until perhaps late 1994 or early 1995. I expect that the Sino-British row over Hong Kong's political system would have come to an end by mid-1994 when Legislative Council will have finished its debate on all legislative bills on the political system. As there would be ample time, the CT10 contract could be let out by a completely open tender.
Mr President, the major commercial value of CT9 hinges on the completion of its first berth by mid-1995 so that the operator of the berth can absorb the rising volume of container transport between mid-1995 and mid-1997, and has two prosperous years. The many delays so far have greatly reduced the project's commercial viability. The development cost of the four berths of CT8, at Mei Foo, was only $4 billion. The development cost of CT9 at Tsing Yi, also with four berths, is now estimated at $11 billion, about three times as high. A further consideration is that a new container terminal will come into operation at North Lantau in mid-1997. Would the three successful bidders still want to go ahead and spend $11 billion on CT9, knowing that CT9 would have to face a new competitor after one year of operation? The Secretary for Economic Services once said that it would be worthwhile and necessary to construct CT9 even if the project could not be completed until May 1997, just one month before the completion of CT10. I do not agree with him. I want to ask the Secretary whether the three companies have given him any undertaking that they will invest in CT9 despite any delays? I believe that they have not given any such undertaking. Delays would give the three companies causes to ask for renegotiations with the Government on the premium and the project specifications. They may even ask for lowering the requirement of traffic management and environmental protection measures. Members of the public, including inhabitants of the southwest New Territories would certainly object to such requests. The renegotiations on project specifications would further prolong the completion late. Mr President, my conclusion is quite simple: Delays and high construction costs have again and again eroded the commercial viability of the CT9 project.
1054 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
Mr President, the Government has explained to the Legislative Council that if the CT9 at Tsing Yi could not be completed by mid-1995, Hong Kong would at worst suffer an estimated economic loss of $30 billion between 1997 and 2006. This analysis is based on many assumptions that are overblown and erroneous. The first such assumption is that shipping business that leaves Hong Kong because of its saturated port facilities will never return to Hong Kong. Another assumption is that Hong Kong's existing port facilities would not be able to absorb the increase of 2 million containers in the volume of container transport between mid-1995 to mid-1997.
Firstly, whether a shipping company will use Hong Kong's port facilities depends entirely on our efficiency, our competitiveness and our other shipping-related services. The Government's argument that "business once gone will never return" is untenable.
The estimated increase of 2 million containers in the volume of container transport between mid-1995 and mid-1997 can be absorbed by making available more land for CT1 to CT8 and assisting the development of mid-stream operations. At the last meeting of Legislative Council panel on economic and public affairs, a Government representative said that under reasonable planning, a berth in a container terminal should have 20 hectares of operation area and an additional 10 hectares of backup areas. The 15 berths of CT1 to CT7 should have 450 hectares of land. But the Government has only made available 165 hectares of land to them with a shortfall of 285 hectares. The severe shortage of space has restricted the capacity of CT1 to CT7. Container terminal companies, members of the public, as well as colleagues in this Council all agree that much land should be made available to the existing container terminals. Under such circumstances, if more land is made available, the combined capacity of the eight existing container terminals can be raised to 10 million containers a year by 1997, greater than the demanded capacity of 9.4 million containers a year expected for mid-1997. In addition, as mid-stream operations can cope with one third of the volume of container transport without any assistance from the Government, the capacity of such operations would surely be greatly enhanced if the Government renders assistance.
Mr President, the 1.4 million inhabitants of New Territories South and New Territories West (including Tuen Mun, Tsuen Wan, Kwai Chung and Tsing Yi) are suffering every day from traffic congestion, noise pollution and air pollution. These problems are caused mainly by the Kwai Chung container terminal. The Government says that a bridge will be built and more backup areas will be made available when CT9 is built and that this will completely solve the problems. This is just a myth. I believe that it would be very difficult to find supporters for such a conclusion other than the Government itself and those who have full credit in every analysis put out by the Government. In Kwai Chung, Tsing Yi, Tsuen Wan and Tuen Mun, traffic congestion is a daily
HONG KONG LEGISLATIVE COUNCIL — 24 November 1993 1055
occurrence. When it rains, people will have to walk to MTR stations or ferry piers to use the only services available. When there is a typhoon, most students and people who go to work may well have to take a day off. This is a real-life description of the problems affecting the 1.4 million inhabitants. Now that the commercial value of the CT9 in Tsing Yi has dropped drastically because of slippages, are we going to insist on pursuing the CT9 project for the little economic value left, or to take into consideration the hardship of 1.4 million people? My position is quite clear: I side with the 1.4 million people. Although scrapping the CT9 project may cause short-term worsening in traffic in 1996 and 1997, there would be great improvement on the commissioning of the container terminal at Lantau in 1997.
Mr President, in a press report of the Hong Kong Economic Journal today, Mr Steven POON of the Liberal Party criticized me for having only the interests of the local community in mind without regard to economic development. First of all, UDHK fully support the Government's plan on port development. However, the fact is that, after repeated slippages, the little economic benefits brought about by the CT9 project would definitely be less important than the quality of life of 1.4 million people. Does Mr Steven POON of the Liberal party mean that the quality of life of these 1.4 million people (a quarter of the population of Hong Kong) is a matter of local interests that does not have to be looked after? Perhaps it is the political philosophy of Mr POON and the Liberal Party to magnify their own interests or the interests of their own party but belittle the interests of 1.4 million people. Mr President, the CT9 project had been delayed for more than nine months. During this period, neither the Economic Services Branch nor the Transport Branch of the Government Secretariat has any contingency plan in place. It can be said that they were waiting for the doom. If the CT9 project cannot go ahead, then the Government must proceed at full speed to develop the container terminal at North Lantau so that several berths may be available for use by mid-1997 to make up for the shortfall due to the scrapping of the CT9 project. Meanwhile, the Government should also take active steps to provide more backup areas for CT1 to CT8 and support mid-stream operations, so as to enhance the capacity of the port of Hong Kong in coping with the growing volume of contain transport.
Mr President, with these remarks, I move the motion.
Question on Mr LEE Wing-tat's motion proposed.
PRESIDENT: Members may now express their views on the main motion as well as each of the two Members' amendments listed in the Order Paper. I shall ask the two Members who intend to move amendments to speak first, but no amendments are to be moved at this stage.
1056 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
MR STEVEN POON (in Cantonese): Mr President, the CT9 project was carefully planned by the Port Development Board with the support of various government departments. Members of this Council and the general public were extensively consulted before the project was finalized. The Government also gave detailed explanations and provided an abundance of figures, economic forecasts and demand estimates to show that the project was really necessary.
However, the grant of land for the CT9 project was disputed by China. This dispute happened to coincide with the Sino-British dispute over Hong Kong's political system. As a result, the project was put on hold again and again.
The United Democrats of Hong Kong (UDHK) now move a motion calling for the abandonment of the CT9 project. It gives people the impression that Hong Kong is going to cut its own throat. This is most disappointing.
Mr President, many of the issues raised by the Honourable LEE Wing-tat — for example, the substitution of mid-stream operations for CT9, the need to solve traffic problems and the need to provide more backup areas to enhance the efficiency of the existing container terminals — are not new. They are issues which have been raised before and on which explanations have already been given. Mr LEE's only new argument is that, since the first berth of CT10 at Lantau will be completed by 1997, the Government may as well abandon the CT9 project, which is already behind schedule.
I wish to respond to this argument with the following observations:
Firstly, it is wrong to think that, if the CT9 project is abandoned, everything will be well when the first berth at Lantau is completed in 1997. Without CT9, Hong Kong's annual container handling capacity will be reduced by 1.6 million TEUs. This capacity diminution, which equals 22% of the combined capacity of CT1 to CT8, will be permanent. It will not be possible to complete by early 1997 five berths at Lantau with a capacity of 400 000 TEUs each, in other words, a total of 2 million TEUs. Therefore, if the CT9 project is abandoned, the impact on Hong Kong's economy will be inestimable. Due to the inadequacy of backup areas, it is impractical to think that the capacity of the mid-stream operations can be increased to make up for the difference. Nor is it economically logical to do so.
Secondly, it is wrong to say that Hong Kong's traffic problem will stop to worsen if there is to be no CT9. The volume of container truck traffic depends on economic growth and on import, export and re-export activities. There will be as many container trucks as are needed by these activities. If container truck traffic is to be fast moving, container terminals must be efficient. If the capacity of container terminals is not enough to enable container truck traffic to move fast, traffic conditions will be even more chaotic in New Territories West than they are now. Traffic snarls will perhaps be a daily occurrence there. If fact, a major cause of traffic congestion in New Territories West now is the
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shortage of backup space for the container terminals. 30 hectares of backup space will become available with the completion of CT9. This, plus the expansion of Tsing Yi South Bridge and other road arrangements, should help to improve the traffic conditions of New Territories West.
Thirdly, the problem with the CT9 project is this: In order to encourage competition, the Government has, on one hand, awarded the franchise for two of the berths to a newly established consortium by way of negotiation. On the other hand, to ensure that CT9 will come on line on schedule, it has awarded the franchise for the other two berths to an existing container terminal operator. The Chinese side considers this to be an example of favouritism. If there is to be no CT9, this kind of dispute is still likely to arise in the case of CT10. So there is no guarantee that CT10 will come on line on schedule.
Mr President, UDHK move this motion probably in the hope of winning the favour of the people of Tsing Yi and New Territories West. Unfortunately, many are aware that, if the motion is passed, the traffic problems of New Territories West will get worse, to the detriment of the area's residents.
The motion obviously highlights confilicts between local community interests and the interests of Hong Kong as a whole. During the transition period, there is a market for heightened conflicts and confrontations. It is my belief, however, that these are not what most Hong Kong people want to see. They are also contrary to the basic convictions of the Liberal Party. The Liberal Party advocates harmony, co-operation and solidarity and seeks them actively. The Liberal Party looks for results that are good for all.
In view of the above, I shall move an amendment to Mr LEE's motion.
Mr President, I cannot agree with Mr Jimmy McGREGOR's amendment. Firstly, it seeks the deletion of the words about urging the Government to develop at full speed a container port at Lantau. This is not an appropriate step. In fact, this project is proceeding at a very slow pace. We must do everything we can to urge the Government to quicken its pace. Unless it does so, CT10 and other port facilities will not come on line fast enough to meet the needs.
Mr McGREGOR's amendment is also clearly directed against China. China is now an influential country in international affairs and in international trade matters. It is of course aware that slippages in Hong Kong's container terminal projects will have adverse effects on Hong Kong's economy and on the economy of southern China. Mr McGREGOR's amendment is meaningful only in that it makes an accusation without specifically naming the accused. It is an example of negativism and extremism and is not of help to the solution of the problem.
I think that what this Council should do is to urge the Chinese and the British Governments to discuss the issue frankly, to show mutual understanding and to settle bilateral concerns and differences in order to come to a quick
1058 HONG KONG LEGISLATIVE COUNCIL — 24 November 1993
agreement on the CT9 project. We should also urge the Government to make a decision to solve quickly the traffic problems of Tsing Yi, Kwai Chung and New Territories West. That is the only positive approach to take. It is also the point of my amendment. I look forward to support from all Members.
These are my remarks.
MR JIMMY McGREGOR: Mr President, I was surprised when Mr LEE Wing-tat put forward this motion with wording which clearly seeks the abandonment of CT9. I could not believe that this could be the objective of the United Democrats of Hong Kong, whose members in this Council would obviously support Mr LEE.
I thought that on reflection Mr LEE would modify his motion to accept that CT9 should go ahead, with concern being expressed about the serious delay now occurring and about the need to protect residents of adjacent districts against environmental damage and pollution.
Mr LEE did not do so and therefore I put in an amendment which recognizes that CT9 is an essential element in our port development and infrastructure, also, which establishes where the present delay in approval of CT9 is occurring. My amendment was submitted well before Mr Steven POON's amendment. I was surprised therefore to find that his took precedence over mine. That, however, is the democratic application of Standing Orders and I do not complain, Mr President.
However, since it was clear to me that Mr LEE's motion would be defeated by any amendment which recognizes CT9 should be constructed, I had to change my original amendment to take Mr Steven POON's amendment into account. I have proceeded to do so because I do not think that Mr POON's amendment goes to the heart of the matter which is, of course, the delay in approval of the project by China.
Mr POON's amendment also refers to the need for the Government to push on as fast as possible CT10. We have already been assured that this is being done and the Government needs no reminding of the need to maintain an adequate flow of new container berths to meet projected demand. There is therefore a significant difference between my proposed amendment and Mr POON's.
My amendment seeks to place responsibility for the delay and approval of CT9 where it properly lies, that is, with the Chinese authorities. It follows that I am saying that the Hong Kong Government has not caused the delay, nor should it be suggested that somehow the Government has failed in its duty to proceed with the construction of CT9 as quickly as possible. Without that important reference, the amended motion proposed by Mr POON has no merit because it does not address the only real problem that presently exists with CT9,
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that of approval by China. The Hong Kong Government and those people in the private sector who gave valuable advice to the Government on the further development of a port have nothing to be ashamed of, nothing to answer for in regard to the delay and approval of CT9. They have worked well together, public and private sector alike, in planning the massive development of the port which we have seen from the 1960s. They have done a truly remarkable job, especially given the seriously congested waterways and land areas adjacent to the harbour.
We have one of the most efficient port operations in the world and one of the world's largest container ports. I do not need to use statistics because they are all available and we all know them. The planners have been proven right time and again in regard to the creation of new container berths. These have been brought into use to meet demand and only in regard to the provision of backup areas can the Government be faulted.
We all know, however, that CT9 has not had the relatively smooth path, from conception through planning and construction to operation, that all the other container terminals enjoyed. There have been problems associated with fair allocation of opportunity between different operators, culminating in an attempt by the Government to please all the main players; but in so doing, complicating the arrangements for financing, construction and operation. There have been continual complaints from areas in the vicinity of CT9 whose residents feel that pollution and massive dislocation of transport systems affect their living environment and livelihood. But the most serious problem has been the inclusion of CT9 in the long list of important items whose approval has been bogged in the Joint Liaison Group for many months.
CT9, which will be finished well before the territory becomes a Special Administrative Region of China, has become a pawn in the political game, a hostage to political debate and decision. Who in this Council thinks otherwise? Who in this Council would seriously suggest that the holdup with CT9 is the result of the Hong Kong Government's apathy or inefficiency? Who suggests that the successful bidders have failed to work together and somehow caused serious delay in beginning the construction of CT9? Who in this Council suggests that the Hong Kong Government has not done everything it can to obtain approval for CT9 to be constructed? Where does the real problem lie?
Let me turn to the economic disbenefits arising for Hong Kong if CT9 is not constructed. The cumulative loss of Chinese and regional transhipment cargo, which would be lost over the period 1997 to 2006, is estimated 15.7 million TEUs, with a loss of at least $20 billion in revenues at 1992 prices. The overall loss is likely to be much greater and there would be a strong possibility that shipping companies will seek other less congested ports on a permanent basis.
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Backup areas provided for CT9 will serve other terminals. These areas are desperately needed and, when provided, they will relieve a good deal of the present traffic chaos which occurs in Tsing Yi and Kwai Chung from containers and their transports. If CT9 is not constructed, the other terminals will be overwhelmed with traffic problems from 1996.
Mid-stream port operations cannot replace the need for CT9. In fact any expansion of mid-stream operations increases the need for backup land to handle the onshore movement of the containers. Do not forget the chaotic mess caused by the storage and movement of shipping containers in the Western New Territories. That particular problem will become much worse if CT9 is not built.
I need not stress the importance of an efficient port to the Hong Kong economy. Every Councillor, indeed every citizen in Hong Kong, is aware of it. But efficiency demands planning and especially in our circumstances planning for growth. That is what CT9 is all about.
Mr LEE's proposal, I believe, will be defeated and Members must consider my amendment. In proposing this, I am stating my belief that the reason for delay in CT9 does not lie with the Hong Kong Government but with China. I am therefore urging China to think constructively about CT9 and about Hong Kong's need for this essential element of our port infrastructure. I suggest to you all that we must put the pressure where it will do the most good. We should address this appeal to China. I ask you all to support my amendment.
MR TAM YIU-CHUNG (in Cantonese): Mr President, concerning today's motion debate — whether the development of Container Terminal 9 should be shelved — I find, perhaps many Members might share my view, that there is not sufficient information available for us to hold any in-depth deliberations, such as information on the future development trend of the local freight industry and the feasibility of expanding the existing eight container terminals. I, therefore, suggest that the Government release more information on this issue. With regard to Mr LEE Wing-tat's original motion, my initial response is that his argument is not convincing enough. He is of the opinion that the Government should shelve the project and develop a container port at North Lantau simply in view of the fact that Container Terminal 9 project will not be completed in 1995, hence losing its original advantage in timing. Container Terminal 9 is a long-term infrastructural project whose value should not be judged by some less significant factors, such as whether it is to be completed a year earlier or later than the target date.
As for the construction of the Lantau container port, there is no trunk route in that area and the Government has yet to commission an environmental and ecological impact assessment study in respect of Container Terminal 10. More important still, Mr LEE Wing tat seems to have forgotten the importance
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of public consultation. If Mr LEE considers Container Terminal 9 project not to have been drawn up on the basis of public opinion, why does the development of container facilities at North Lantau not need consultation with the local community and residents? Does it mean that the residents on Lantau Island are fewer in number than those in Tsuen Wan and Tsing Yi so that opinion polls or public consultations are unnecessary? As a matter of fact, residents of the Discovery Bay launched a signature campaign over the past few days in protest of the construction of Container Terminal 10.
I very much agree that the construction of Container Terminal 9 will further aggravate the traffic congestion and air and noise pollution in New Territories South and New Territories West. Many residents will suffer as a result. However, even if the Container Terminal 9 project is shelved and the land allocated for it is used for the extension of the neighbouring terminals, these terminals will also become much busier. Large fleets of container vehicles plying in and out of the terminals will cause serious traffic congestion and pollution all the same. In other words, the shelving of the project does not necessarily mean that the problems in New Territories South mentioned just now will be mitigated.
Mr President, to promote economic development, it is necessary for Hong Kong to go in for large scale construction to provide more physical infrastructural facilities. And traffic congestion, environmental impact and so on are the price the people of Hong Kong have to pay. In view of this, it is imperative that the Government should, in the interests of the people, tackle the problem of traffic management and make available more environmental protection facilities while carrying out the infrastructural construction so as to reduce the price the people have to pay to the minimum.
Mr President, in the light of the above-mentioned reasons, I oppose the original motion. As for Mr McGREGOR's amendment motion, it seeks to place all the responsibilities on the Chinese authorities. I find such a view unsound and unable to solve the present problems. Therefore, I consider Mr Steven POON's amendment motion to be the only one I can support.
MR MARTIN BARROW: Mr President, I open by declaring an interest, but I hope that my remarks will help Members understand the importance of proceeding with the port expansion as quickly as possible.
I do not agree that sea cargo transport planning has focused only on container terminals while neglecting mid-stream operations. Hong Kong has relied heavily on mid stream for over a century, but port development has moved with the times. Mid-stream is a niche market for ships of a certain size and trade, and cannot service the large container vessels which must use the terminals.
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I also have major reservations that the throughput of Container Terminals 1 to 8 can be increased by making more land available to existing terminal operators.
Members of this Council will be painfully aware of traffic congestion seen at Kwai Chung following the passage of tropical storms.
If we are not to further overload our road system we need some straight thinking. Traffic density needs to be reduced by dispersing our container terminal activities over a wider area. This is precisely what locating Terminal 9 on Tsing Yi will do, but granting more land to existing terminals will only serve to exacerbate traffic congestion.
The thrust of the motion is that due to the delay in starting the construction of CT9, it is now better to concentrate all efforts on the development of the container port on Lantau. This view is incorrect and the motion should be opposed for the following reasons:
Firstly, time is of the essence. If CT9 commences in early 1994 the first berth will not be available until mid 1996. This of itself is already a threat to Hong Kong and southern China, but this Council must ensure that no further delay occurs and indeed should be encouraging the Government to progress matters as expeditiously as possible.
Secondly, the consultants appointed by the Government are still working on the technical feasibility of Lantau Port. However, inevitably the construction problems and the views of the Discovery Bay residents are factors which will complicate what is already a difficult project. With the best will in the world port development on Lantau will be delayed and in the best estimate the first berth cannot open until at least late 1997. We cannot allow this delay to occur, unless this Council is prepared to ignore the statistical evidence of expected increases in container throughput over the next few years.
Thirdly, CT9 on Tsing Yi followed by CT10 on Lantau are both necessary for the future prosperity of Hong Kong. Tsing Yi Island provides an excellent deep water site which naturally links in with the existing facilities. We must maximize our resources. The needs of the residents of Tsing Yi have been examined in detail and their interests can be well protected by the terms of the land grant. The container terminal is to be built on reclaimed land with backup land upon which low rise buildings will be constructed to act as noise and glare barriers. A new road system is to be constructed which will be located further away from the existing road systems and thus reduce noise level. A new four-lane bridge is to be constructed, which is designed to handle all the additional traffic associated with the terminal, but also ease traffic congestion elsewhere on the island. The terminals have adequate parking facilities which will prevent queuing and road traffic congestion.
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Fourthly, the weakness of the motion relates to the mistaken belief that CT9 will increase congestion within Kwai Chung. The creation of the backup land for CT9 will provide much needed land to support all the berths of Kwai Chung. This land bank from a different location will relieve existing shortages of land for parking container vehicles, storage of containers and for emergency vehicle holding areas.
In conclusion, Mr President, it is important to look at the facts:
- we cannot realistically look at container terminals on Lantau before the fixed crossing opens in mid 1997;
- southeast Tsing Yi is the only practical option open to the Administration;
- granting more land adjacent to existing Kwai Chung terminals will only add to road traffic congestion;
- CT9 located on Tsing Yi will be financially viable;
- although mid-stream has served Hong Kong well in the past, it cannot fill the gap of CT9, but of course mid-stream should be further examined by the Administration to ensure it continues to play a role in port operations;
- the average container growth for Hong Kong for the last five years is 18.6%, which demonstrates the role Hong Kong plays as the HUB for southern China.
The inability to provide capacity to cater for such demands will be a major economic disbenefit to Hong Kong. I hope Members will support the amended motion.
MRS PEGGY LAM (in Cantonese): Mr President, I think it is both shortsighted and irresponsible to propose at this moment the shelving of Container Terminal 9 (CT9) project in Tsing Yi.
The importance of CT9 to Hong Kong's future economic development has long been recognized. The commencement date of the project is already about half a year behind the original schedule. Yet the Administration still insists with confidence that CT9 can be open for use at late 1995 or early 1996.
At present what we should do is to take more positive actions to remove the differences between China and Hong Kong and come to some understanding expeditiously. To abandon CT9 project at this sensitive moment will only send a wrong message to the public that the Legislative Council will merely react passively and back out when it encounters uncertainties.
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Those who propose to abandon the project think that CT9 has already lost its original advantage in timing and therefore they put forward a proposal for the development at full speed a container port at North Lantau. Yet, if a Container Terminal 10 (CT10) is to be constructed at Lantau, the container terminal can be of use only when the Lantau Fixed Crossing is open to traffic in 1997.
In other words, even if the Administration takes expeditious actions in respect of design, tender and the launching of the project, the first berth of CT10 still cannot be completed earlier than mid-1997. For this reason, we must construct CT9 in Tsing Yi before the facilities at Lantau can be open to public use.
If we rashly abandon the CT9 project now, it will mean that we have wasted at least one and a half years' time for nothing at all. In the meantime, the economic loss resulted from our failure to catch up with the growth in container trade will run up to hundreds of millions of dollars. In fact, some of the consortia who have participated in the development of CT9 have already stated their wish that the project be commenced as soon as possible. To scrap the project will bring no economic advantages to the container transport industry.
I do not object to the proposal of urging the Government to implement CT10 project at full speed. However, if the prerequisite is to abandon CT9, I think this will be a rash action which is extremely unwise.
Apart from striking a blow at Hong Kong's overall economic development, the shelving of CT9 will also undermine the interests of residents living in Tsing Yi and areas in near vicinity.
In the plan of CT9, a large backup area has already been earmarked for storing containers and parking and servicing container trucks. Emergency vehicles are also allowed to use this extra piece of land. This backup area would benefit drivers who use the Kwai Chung Container Terminal.
Should CT9 project be shelved, it will not make things any easier to uproot the existing traffic congestion problem caused by the loading and unloading of containers at Kwai Chung.
On top of the mitigating effects brought about by this backup area, the realignment of roads and establishment of new transport network as a result of the construction of CT9 will not only improve the access to the terminal but also ease the traffic around the neighbouring residential areas.
It is envisaged that traffic conditions in Tsing Yi will change completely when a new four-lane bridge and a Mass Transit Railway extension leading to Tsing Yi open to traffic in 1996.
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If the original motion is carried and acted on, such plans to improve the transport services in the southern and western parts of the New Territories for the benefit of 1.4 million residents will go down the drain.
When CT9 is under construction in future, there will be an array of environmental protection measures to reduce the nuisances to the residents. The reclamation and road realignment works involved will even make it feasible to carry out major environmental improvement projects on the site between Mayfair Gardens and the industrial area and, at the same time, provide parking spaces specially for container trucks, bearing in mind that illegal parking of container trucks on the island is one of the Tsing Yi residents' headaches.
The new road leading to the terminal will also be specially designed and paved with special material with the aim of reducing traffic noise.
The present traffic noise level at both Mayfair Gardens and Cheung Ching Estate is extremely high. Yet, with the completion of CT9, the noise level will plummet dramatically despite of the drastic increase in container truck traffic. Why? It is because the main road will be realigned to locate it a further 300 metres away from the residential area. The site in between will be used for constructing some low-rise buildings to serve as a noise barrier.
Furthermore, CT9 will be constructed on a reclaimed site designated as an industrial area for hi-tech and environmental friendly industries. When the terminal is under construction, more job opportunities at the initial stage will be available to the construction industry.
In the long run, the industrial area will create certain demand for professionals, management personnel and administrative and clerical staff in the field of computer technology, port operation and ordinary industries.
I have no doubt that the original motion is aimed at boosting Hong Kong's economy and ensuring a better living environment for the Tsing Yi residents. However, to abandon CT9 now is just like putting the cart before the horse. That would ruin things though with goodwill.
Mr President, with these remarks, I oppose the original motion and support Mr Steven POON's amendment.
MRS MIRIAM LAU (in Cantonese): Mr President, Hong Kong's vigorous and steady economic development is closely related to the fast growth of its container shipping industry. Hong Kong is one of the three busiest container ports of the world. The people of Hong Kong can clearly be proud of this achievement. However, it is certainly hard for Hong Kong to keep its position as a leading container port. We need to have a long-term comprehensive development plan.
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The Port and Airport Development Strategy Study, completed in 1989, estimates that CT8 will have reached its capacity by 1995. CT9 should come on line by 1995 to cope with the growth in container shipping industry. True, the on-going Sino-British row has now slowed down the CT9 project. But CT10 at Lantau will not come on line until at least the Tsing Ma Bridge and the Kap Shui Mun Bridge are completed in mid-1997. Therefore, if the CT9 project is shelved, the existing container terminals — CT1 to CT8 — will have to cope all by themselves with the growth in container shipping industry in the coming years. This will be an unbearable burden on the existing facilities. The shipping companies, when they see that Hong Kong's port facilities cannot provide adequate services, will be forced to switch to using ports in other countries. This will very probably happen. Business that leaves Hong Kong will not easily return. Hong Kong's economy will then sustain inestimable losses. Consequently, it will lose its position as a leading container port.
Mr LEE Wing-tat is concerned that CT1 to CT8 are already causing great traffic problems to the residents of Kwai Chung and that CT9, to be built at the southern part of Tsing Yi Island, will further aggravate the situation. It is true that, after every typhoon or heavy rainstorm, traffic snarls are sure to hit Kwai Chung. Long lines of bumper to bumper container trucks affect other kinds of vehicular traffic. Traffic all over the area is paralysed. The local residents are very frustrated but they cannot do anything about it. Traffic congestion is a usual occurrence in Kwai Chung even when the weather is good. The Traffic Panel of this Council recently discussed these problems. Although the Transport Department has taken emergency measures, such as setting up an emergency traffic control centre, providing emergency parking and waiting areas and improving traffic management on roads near the container terminals, these measures only bring temporary relief for the problems. The long-term solution is that CT8 and CT9 should become fully operational. When this happens, there will be extensive backup areas for container trucks to use. Truck drivers will be relieved of the suffering of waiting on the roads for their turns to drive into the terminal areas. The existing congestion problem caused by the container trucks will also be solved. In the final analysis, the main reason why container trucks are causing traffic problems in Kwai Chung is that mistakes were made in the designing of CT1 to CT7. No suitable space was reserved for use as backup areas where trucks could wait and go about their business. The result is that trucks often cause traffic congestion even in areas outside the container terminals. The only hope now is that more space will be set aside for use as backup areas when CT8 and CT9 become fully operational. These backup areas can be used by trucks servicing the other container terminals as well. As far as I know, sufficient backup space will be reserved at CT8 and CT9 for cargo handling, parking and the maintenance of the container trucks so as to satisfy their needs in these areas. Trucks will not have to be driven so often to and from Kwai Chung and the traffic congestion so caused will be alleviated. Of course, for the full solution of the traffic problems caused by container trucks, we must wait for the completion of Route 3 and the freight railway.
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From both the economic and traffic angles, CT9 is very important to Hong Kong. New planning will remedy past planning mistakes. CT9 will provide logistic services that will compensate for the deficiencies of the existing container terminals. Remedies will be provided for the traffic problems now affecting Kwai Chung. I believe that, when there are sufficient backup areas for the container terminals, illegal parking of container trucks, now found all over Kwai Chung, will also be improved, thus reducing the nuisance caused to the local residents. Therefore, where the traffic problems of Kwai Chung, Tsing Yi and northwest New Territories are concerned, the CT9 project will not be a dose of poison. On the contrary, it will be a dose of antidote for solving the problems.
Mr LEE's motion today says, "Since it is expected that the development of CT9 project in Tsing Yi will not be completed by mid-1995, hence losing its original advantage in timing, this Council urges the Government to shelve the project ......" I believe that the first two sentences of the motion should be deleted. I believe that, even if the CT9 project could be completed by mid-1995, Mr LEE would still ask the Government to shelve it. I say so because Mr LEE was consistently opposed to the project; nor did he ever voice any support for it. He is now harping on the same string and is seeking to block the project. Actually, he does not need such a pretence. However, I still hope that Mr LEE will think in terms of the overall interests of the community, weigh the pros and cons of the matter rationally and take a relatively objective and balanced view of the CT9 project. I believe that, if Mr LEE does so, he will finally abandon his original position and support Mr Steven POON's amendment.
Mr President, these are my remarks. The Liberal Party supports Mr POON's amendment and opposes the original motion.
THE PRESIDENT'S DEPUTY, MRS ELSIE TU, took the Chair.
MR ALBERT CHAN (in Cantonese): Madam deputy, as the land and planning policy spokesman of the United Democrats of Hong Kong (UDHK), I wish to explain, mainly by way of highlighting land and traffic planning, problems why UDHK want the CT9 project to be shelved.
Hong Kong's development as a port began at the Victoria Harbour. Seaborne cargo was handled in the past at buoy positions or at waterfront loading and unloading areas. These traditions changed drastically in the 1970s. Container freight has gradually replaced traditional cargo handling operation.
Hong Kong's first container terminal came on line in Kwai Chung in 1971. The Government failed to draw up well-laid plan. It was not until the late 1980s that the Government, by publishing the Port and Airport Development Strategy, laid down a relatively comprehensive plan for port
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development in Hong Kong. In the absence of careful planning, container terminals built in early days, particularly CT1 to CT4, manifested that the planners did not attach importance to backup areas for container terminals. It was not until the CT7 and CT8 projects were designed that the Government recognized the importance of such backup areas. At a recent meeting of the Legislative Council Economic and Public Affairs Panel, the Government disclosed that each berth in a container terminal should have 20 hectares of waterfront space plus 10 hectares of backup areas. Yet CT1 to CT7 in Kwai Chung together operate in only 150 hectares of waterfront space, a far cry from the 300-hectare standard set by the Government. Their combined backup areas add up to only 20 hectares, also a far cry from the 150-hectare standard.
The shortage of land at CT1 to CT7 in Kwai Chung has affected the capacity of these terminals. Worse still, this has dealt a direct blow to traffic and living conditions in Tsuen Wan, Kwai Chung and Tsing Yi. Madam deputy, Tsuen Wan, Kwai Chung and Tsing Yi are no longer what they were during the early 1970s. These three areas and New Territories West now have a combined population of 1.4 million. The Government's poor planning in the past is subjecting these people to chronic traffic woes. Tsuen Wan, Kwai Chung and Tsing Yi are covered by the Government's metropolitan plan. The areas are already densely populated. Many factories in these areas have been relocated to China; industrial buildings have been replaced by residential and commercial buildings. I therefore believe that no more land in Tsuen Wan, Kwai Chung or Tsing Yi can be zoned for use by sea freight, especially for container terminals.
The container terminals create a heavy pressure on the roads in these areas. Thanks to a severe shortage of backup areas for CT1 to CT7, container trucks have to ply back and forth between the container terminals and the container storage areas. Nor is there any buffer zone. One often sees traffic congestion stemmed from long lines of bumper to bumper container trucks. Another thing is that the inhabitants of Tsuen Wan, Kwai Chung and Tsing Yi use more or less the same road networks that are used by the container trucks, thus adding further pressure to the roads. In many ways, the road systems are poorly designed. A case in point is the creation of many traffic bottlenecks. Most serious of all, the roads are not designed to cope with the development of container terminals. This is why traffic snarls have occurred in Tsuen Wan, Kwai Chung and Tsing Yi on several occasions. It is clear from the above that these areas cannot accommodate a further increase in container truck traffic.
Despite the absence of comprehensive planning, Kwai Chung has become the world's busiest container port. Last year, it handled 7.9 million containers. During the first seven months of this year, it handled 5.02 million containers, up 13.7% from the volume for the same period last year. Such growth is nothing short of a miracle. But I must point out that this miracle is founded on the sufferings of the inhabitants of Tsuen Wan, Kwai Chung and Tsing Yi. For many years, they have had to live with a nasty environment and traffic congestion. The Government has already spent a lot on comprehensive planning in regard to the CT10 project and on the assessment of its environmental
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impact. The environmental impact assessment has now been completed. The finding is that northeast Lantau will be an excellent site for container terminals. Meanwhile, the Sino British row has led to the loss of one year's time for the CT9 project. Even if the project goes ahead now, the first berth is not expected to be completed until mid-1996 at the earliest. I believe that, if we proceed at full speed with the CT10 project now, CT10 will surely come on line by mid-1997, to tie in with the completion of the Tsing Ma Bridge project. CT10, in operation, will also boost the toll receipts of Tsing Ma Bridge. I therefore believe that shelving the CT9 project will be a pragmatic move.
At today's debate, the Liberal Party is opposed to the shelving of the CT9 project. This is understandable. The Liberal Party usually supports the interests of the trade and industrial sector at the expense of the lowly citizens. It is particularly negligent of the interests of the 1.4 million population of New Territories South and West. In today's order of speaking, I do not see any Member from Meeting Point wishing to speak on the motion. I am somewhat surprised at this. Some time ago, Mr WONG Wai-yin said on a public occasion that he would not support Mr LEE Wing-tat's motion, allegedly on the ground that he could not attend to the interests of local communities at the expense of Hong Kong as a whole. This makes me wonder along what principle Mr WONG objects to the use of Area 16 in Tuen Mun as a temporary site for the mid-stream handling of containers. In fact, the mid-stream operations could make significant contribution to Hong Kong's economy. But Mr WONG objects to the use of Area 16 as a temporary site for mid-stream operations. This is a case of attending to the interests of a local community at the expense of Hong Kong as a whole, is it not? I hope that Members from Meeting Point will stop citing such a specious argument and stop blindly supporting the Government's recommendations. I also hope that Members from Meeting Point will realistically look at the issue from the angle of people's livelihood and on the basis of objective data on land and planning, then change their minds and support Mr LEE's motion. I further hope that Members from Meeting Point will bear in mind that their voting decision today will surely be remembered by the affected population if CT9 should come on line and cause traffic snarls in Tsuen Wan, Kwai Chung and Tsing Yi, with effects also on the several hundred thousand residents of Tuen Mun and Yuen Long in New Territories West.
Madam deputy, with these remarks, I support Mr LEE's motion.
MR MICHAEL HO (in Cantonese): Madam deputy, as a member of the New Territories West branch of the United Democrats of Hong Kong (UDHK), I would like to speak on the traffic problems likely to be brought about by the Container Terminal 9 (CT9) project.
In the debates on the traffic problems in the northwest New Territories and on the trade between China and Hong Kong, many Members have unanimously pointed out in no uncertain terms the Government's lack of comprehensive planning in its new town development such that the road
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networks in new towns always fail to meet the needs. The situation gets worse in view of the drastic increase in the volume of trade between China and Hong Kong. Most of the roads in the New Territories have already reached saturation point. The most affected areas are Kwai Tsing and Tuen Mun districts. For these reasons, in previous debates many colleagues in this Council are of the view that construction of adequate road networks must be accorded top priority. Only with them in place can we go ahead with major residential or industrial and business developments.
Yet, it seems that the Government does not understand this basic planning principle as it still presses ahead with the construction of one more major container terminal before the completion of a new road network link. Unless it is not necessary for container trucks to move in or out of CT9, the traffic congestion in areas such as Tsuen Wan, Kwai Chung, Tsing Yi and Tuen Mun are bound to get worse. In analogy, the Government's decision is like forcing a patient suffering from indigestion to take several jumbo hot dogs. In this connection, UDHK think that CT9 will aggravate congestion in the districts concerned if the focus of future container port development is not to be shifted to Lantau.
The trunk routes linking up Kwai Chung Container Terminal and the border are Tolo Highway and Tuen Mun Road. Tolo Highway now becomes congested during rush hours. On Tuen Mun Road, congestion is a daily scene. According to statistics released by the Highways Department, at rush hours, heavy vehicles alone account for around 40% of the traffic flow and as high as 50% of the road surface. Very often when I use Tuen Mun Road, I feel I am driving along a great wall made up of container trucks. Any traffic accident involving a container truck may paralyse Tuen Mun Road. Even if my journey on Tuen Mun Road is smooth, I still may not be able to escape from the misfortune of getting caught in traffic congestion once I turn into Tsuen Wan Road and Kwai Chung Road when it so happens that the container terminal is a bit busy at the moment. Any chaos in the loading and unloading of cargos at the container terminal after typhoon will lead to a traffic standstill affecting half of the New Territories. Under such circumstances, a considerable number of residents in Tsing Yi, Kwai Chung, Tsuen Wan and Tuen Mun are inevitably compelled to take one day's leave. Today Container Terminal 8 is still not yet fully operational but the traffic condition in the vicinity has already been so poor. If we construct one more terminal, that is, CT9, before completion of the airport road network, it will be virtually dreadful to imagine the traffic condition on Kwai Chung Road, Castle Peak Road and Tuen Mun Road.
Madam deputy, the Lantau airport road network is scheduled to be completed in 1997. Route 3 (Country Park Section) will be completed in 1998. It is, therefore, sensible to develop at full speed a container port at Lantau. The container port would be situated far from residential areas. There would not be any conflict involving container trucks and other vehicles. Furthermore, a container terminal can only be put to full use with the support of a sound road network. That is to say, even if CT9 could be completed in 1996, traffic
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congestion at Kwai Chung Road, Tuen Mun Road and Tolo Highway would become totally unbearable. This would make it impossible for CT9 to function properly. The traffic condition in the New Territories as a whole would be affected as well. The Government claimed that an additional duplicate Tsing Yi South Bridge could solve the problems. Madam deputy, if we can solve the traffic problems in the vicinity of Kwai Chung and Tsing Yi by merely building an additional Tsing Yi South Bridge, we will not need a new road network. Yet, the fact before us is that the duplicate south bridge alone definitely cannot solve the traffic problems at Kwai Chung and Tsing Yi. It, therefore, behoves us to build other sound road networks.
Madam deputy, with these remarks, I support Mr LEE Wing-tat's motion.
DR HUANG CHEN-YA (in Cantonese): Madam deputy, the development of container terminals in recent years is a miniature of Hong Kong's prosperous economic growth. The number of standard containers handled in Hong Kong last year amounted to 7 972 000, and is increasing rapidly at a rate of about 30% per year. Such a drastic increase in the volume of container transport provides hard evidence of the very close relationship of interdependence between Hong Kong's container transport and China's sustained economic growth, and has once again rendered Hong Kong one of the busiest container ports in the world.
There is no doubt that we have to build adequate container terminals and other port facilities to cope with the increasing volume of container transport. This is very important to the economic development of both Hong Kong and southern China.
Regrettably, although the Government awarded the franchise for CT9 in November last year, so far the project is still a plan on paper and a castle in the air. As we all know, although some Chinese officials said that they were dissatisfied with the way in which the Hong Kong Government awarded the franchise by private treaty rather than by open tender, they still have political considerations in mind, hoping to force a political capitulation on Hong Kong through the impact of delays on Hong Kong's economy. This stalemate has been lasting for one whole year but so far there is no sign of a resolution. Despite the fact that a JLG meeting will be held in London in December, people are still of the pessimistic view that the issue will very probably be stalled as it is.
Though the present situation is so grave, Hong Kong has completely lost the initiative. The difficulty in enhancing Hong Kong's cargo handling capacity would inevitably render Hong Kong unable to cope with the increasing volume of container transport and incur unnecessary losses to Hong Kong. More importantly, this would also deal a blow to southern China's economic development, resulting in severe losses in the economy and job opportunities of that region.
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Under such circumstances, it is imperative for Hong Kong to adjust its port development plan, review its past assumptions and strive for initiative by implementing an alternative strategy to enhance Hong Kong's container operation capacity so as to eliminate the constraints and unstable effects posed by economic threats on Hong Kong. This is the only choice for Hong Kong.
The two amended motions under discussion have in fact totally failed to take a square look at the problem facing us. For example, Mr Steven POON's intention to urge the Government to reach an agreement with China is a kind of escapism which is more futile than ostrichism. This is no less than asking the Government to do something which it has been doing for one whole year but in vain. In fact, members of the Liberal Party also paid a visit to Beijing in October to meet China's Foreing Minister QIAN Qichen. But what has come out of this meeting? Therefore, the amended motion before us is like the Greek myth of Sisyphus. It is as absurd as to ask the Government to something that will never come to fruition.
Moreover, I wonder whether Mr POON agrees with China's allegation that CT9 is a case of "private dealing", or whether he agrees with what the Government said that "private treaty" is conducive to competition and promotion of cost and managerial effectiveness. If it is a case of "private dealing", then the franchise might have to be retendered resulting in further delays which would further reduce the effectiveness of CT9. By urging the Government to reach an agreement with China, does Mr POON mean to request the Government to conduct a retendering exercise or does he want the Government to capitulate politically in return for an agreement on CT9? I look forward to Mr POON's reply.
As Members of this Council, it is incumbent on us to urge the Government to take decisive steps to promote development, rather than to encourage the Government to mark time and deceive the public by saying that passive waiting is the correct approach. If no agreement is forthcoming after half a year, or a year from now, or two years later, are we going to keep on waiting wishfully and willy nilly for a capitulation?
We reiterate that Hong Kong has already wasted too much time on waiting for the talks to bear fruit. Now is the time to work out some other feasible approaches. We would suggest that, as medium and short-term strategies, the Government should make available more backup areas for the existing container terminals and further develop "mid-stream" container operations. Meanwhile, the Government should devote the resources earmarked for CT9 to the development of CT10 at North Lantau to ensure an early completion of the project. This is the only long-term effective solution which would no longer result in unnecessary waste of time.
We think that by so doing, Hong Kong can gain back the initiative. This would dispel all the pessimism caused by passive waiting, give Hong Kong a definite direction and timetable for development, and prevent the emergence of