HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2635 OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 9 March 1994

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 MRS ANSON CHAN, C.B.E., J.P.

THE FINANCIAL SECRETARY

THE HONOURABLE SIR NATHANIEL WILLIAM HAMISH MACLEOD, K.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 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 EDWARD HO SING-TIN, O.B.E., J.P.

THE HONOURABLE RONALD JOSEPH ARCULLI, O.B.E., J.P.

THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P.

THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2636 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 VINCENT CHENG HOI-CHUEN, O.B.E., J.P. THE HONOURABLE MOSES CHENG MO-CHI

THE HONOURABLE MARVIN CHEUNG KIN-TUNG, O.B.E., J.P. THE HONOURABLE CHEUNG MAN-KWONG

THE HONOURABLE CHIM PUI-CHUNG

REV THE HONOURABLE FUNG CHI-WOOD

THE HONOURABLE FREDERICK FUNG KIN-KEE

THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA

DR THE HONOURABLE HUANG CHEN-YA

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 HENRY TANG YING-YEN, J.P.

THE HONOURABLE TIK CHI-YUEN

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2637 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 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 HUI YIN-FAT, O.B.E., J.P.

THE HONOURABLE LAU WONG-FAT, O.B.E., J.P.

THE HONOURABLE MRS PEGGY LAM, O.B.E., J.P.

THE HONOURABLE ALBERT CHAN WAI-YIP

THE HONOURABLE EMILY LAU WAI-HING

THE HONOURABLE STEVEN POON KWOK-LIM

THE HONOURABLE HOWARD YOUNG, J.P.

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

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2638

MR ALISTAIR PETER ASPREY, C.B.E., A.E., J.P.

SECRETARY FOR SECURITY

MRS ELIZABETH WONG CHIEN CHI-LIEN, I.S.O., J.P. SECRETARY FOR HEALTH AND WELFARE

MR RONALD JAMES BLAKE, J.P.

SECRETARY FOR WORKS

MR CHAU TAK-HAY, J.P.

SECRETARY FOR TRADE AND INDUSTRY

MR JAMES SO YIU-CHO, O.B.E., J.P.

SECRETARY FOR RECREATION AND CULTURE

MR 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 DONALD TSANG YAM-KUEN, O.B.E., J.P.

SECRETARY FOR THE TREASURY

MR MICHAEL DAVID CARTLAND, J.P.

SECRETARY FOR FINANCIAL SERVICES

MR NICHOLAS NG WING-FUI, J.P.

SECRETARY FOR CONSTITUTIONAL AFFAIRS

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 — 9 March 1994 2639 Papers

The following papers were laid on the table pursuant to Standing Order 14(2): Subject

Subsidiary Legislation L.N. No.

Public Revenue Protection (Business

Registration) Order 1994 ......................................................................... 125/94

Public Revenue Protection (Dutiable Commodities)

Order 1994............................................................................................... 126/94

Public Revenue Protection (Estate Duty)

Order 1994............................................................................................... 127/94

Public Revenue Protection (Motor Vehicles)

(First Registration Tax) Order 1994......................................................... 128/94

Public Revenue Protection (Stamp Duty)

Order 1994............................................................................................... 129/94

Public Revenue Protection (Air Passenger

Departure Tax) Order 1994...................................................................... 130/94

Public Revenue Protection (Betting Duty)

Order 1994............................................................................................... 131/94

Public Revenue Protection (Cross-Harbour Tunnel)

(Passage Tax) Order 1994........................................................................ 132/94 Public Revenue Protection (Rating) Order 1994 ............................................. 133/94

Export (Prescribed Articles) (Amendment)

Regulation 1994....................................................................................... 134/94

Import and Export (Carriage of Articles)

(Amendment) Regulation 1994................................................................ 135/94

Import and Export (General) (Amendment)

Regulation 1994....................................................................................... 136/94 Immigration (Amendment) Regulation 1994................................................... 137/94

Merchant Shipping (Safety) (Passenger Ship Construction)

(Ships Built before 1 September 1984)

(Amendment) Regulation 1994................................................................ 138/94

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2640

Merchant Shipping (Safety) (Passenger Ship

Construction and Survey) (Ships Built on or

after 1 September 1984) (Amendment)

Regulation 1994....................................................................................... 139/94

District Court Civil Procedure (Fees)

(Amendment) Rules 1994........................................................................ 140/94 Supreme Court Fees (Amendment) Rules 1994 .............................................. 141/94

Food Business (Regional Council) (Amendment)

Bylaw 1994.............................................................................................. 142/94

Frozen Confections (Regional Council)

(Amendment) Bylaw 1994....................................................................... 143/94

Funeral Parlour (Regional Council) (Amendment)

Bylaw 1994.............................................................................................. 144/94 Milk (Regional Council) (Amendment) Bylaw 1994 ...................................... 145/94

Offensive Trades (Regional Council) (Amendment)

Bylaw 1994.............................................................................................. 146/94

Places of Amusement (Regional Council)

(Amendment) Bylaw 1994....................................................................... 147/94

Public Swimming Pools (Regional Council)

(Amendment) Bylaw 1994....................................................................... 148/94

Undertakers of Burials (Regional Council)

(Amendment) Bylaw 1994....................................................................... 149/94

Places of Public Entertainment (Licences)

(Specification of Fees)

(Regional Council Area) Notice .............................................................. 150/94

Electoral Provisions (Miscellaneous Amendments)

Ordinance 1994 (10 of 1994) (Commencement)

Notice 1994 ............................................................................................. 151/94

Import and Export (Amendment) Ordinance 1994

(1 of 1994) (Commencement) Notice 1994 ............................................. 152/94

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2641 Sessional Papers 1993-94

No. 68 — The Hong Kong Academy for Performing Arts Annual Report July 1992 to June 1993

No. 69 — Hong Kong Examinations Authority Financial Statements for the Year Ended 31 August, 1993 with Programme of Activities 1 September 92 to 31 August 93

No. 70 — Consumer Council Annual Report 1992-1993

Addresses

The Hong Kong Academy for Performing Arts Annual Report July 1992 to June 1993

SECRETARY FOR RECREATION AND CULTURE: Mr President, it gives me great pleasure to present the 1992-93 Annual Report of the Hong Kong Academy for Performing Arts for the year ended 30 June 1993 to this Council today.

At this juncture, the President told the noisy public gallery to observe order.

The 1992-93 academic year was a milestone in the development of the Academy. After the successful completion of the accreditation process, the Academy has now become a degree-awarding institution. The Bachelor of Fine Arts degree programmes in Dance and Music were introduced in September 1992, only eight years after the establishment of the Academy. The intake of students for degree courses in Technical Arts (Theatre) and Drama also commenced in September 1993. The speed of this development is a tribute to the dedication and professionalism of the Academy's staff who have made the institution an important feature of the academic and performing arts scene in Hong Kong.

As Secretary for Recreation and Culture, it is particularly gratifying for me to see students of the performing and technical arts given the same opportunity as students in other fields to pursue degree courses. I am sure that this will encourage more talented young people to take advantage of the outstanding training opportunities which are offered by the Academy. This can only be good for the long-term future of the performing arts in the territory.

Public performances constitute an integral part of students' training programme. The Report before you today lists the many performances in dance, music and drama which the Academy mounts each year as showcases for the talents of its students. The scope and variety of these performances is

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2642

impressive — ranging from BERNSTEIN's West Side Story, through original Cantonese drama such as Nüwa Mends the Sky, to major operatic productions such as BIZET's Carmen.

The Academy has been active outside its campus, too. It is pleasing to find that it is always responsive to community needs and the wider interests of Hong Kong. At my invitation, the Academy took part in Festival Hong Kong 92 in Canada. For this, they mounted a special production of dance, music and drama entitled "Hong Kong Heartbeat" which they performed with great success in both Calgary and Ottawa. I was present at these performances and was proud of the way in which the Academy students acted as good ambassadors for Hong Kong both on and off stage.

Back here in Hong Kong as part of its outreach activity, the Academy responded to an invitation from the Governor to mount a series of public concerts in the Ballroom of Government House. They accepted this challenge with enthusiasm and gave five very successful early evening concerts during the year under report — all of which were well attended and applauded.

The Academy has already reached a significant level of achievement under the outstanding leadership of its Council, chaired by Dr Helmut SOHMEN and the capable directorship of Dr John HOSIER who retired last August. I would like to pay a warm tribute to Dr HOSIER for all he has done to build up the Academy to its present level of achievement. I am sure, under the guidance of its new Director Mr LO King-man, the Academy will continue to flourish and secure its position as a major feature of the cultural life in Hong Kong.

Consumer Council Annual Report 1992-1993

MS ANNA WU: Mr President and honourable colleagues, it gives me great pleasure to present the Annual Report of the Consumer Council for the Year 1992-1993.

During the year under report, the Consumer Council moved into its own permanent office in North Point purchased through mortgage arrangements.

My honourable colleagues undoubtedly have noticed the wide publicity during the past two weeks following the release of the Consumer Council's Banking Services Report, one on which I believe some of our Honourable Members will comment shortly. While it is perhaps premature at this stage to predict the ultimate acceptance of the Consumer Council's policy proposals by the parties concerned, the report's impact was reflected by the public reactions so far. In fact, you are witnessing the result of the project carried out under the competition study with the special financial assistance voted in early 1993.

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While on monitoring trade practices, I am pleased to report that in the year more public utility companies have responded to the Consumer Council's call to establish consumer consultation groups with a view to improving consumer feedback. To cite a few examples, Hong Kong Telecom set up four customer advisory groups in June 1992; China Light and Power Company Limited formed a 10-member customer consultative group in September; the MTRC, KCRC, Hong Kong Electric Company Limited and Kowloon Motor Bus Company set up channels for public consultation.

As a result of the continuous urging of the Consumer Council, the "Code of Practice for Administration of Insurance Agents" was introduced in January, 1993. This Code provides guidelines in regulating the activities of insurance agents by requiring them to apply for registration with the Central Register of Agents. It lays down minimum qualifications for agents and restricts the number of insurers an agent can represent for the sake of improved control.

The year 1992-1993 ended on a strong footing with solid achievements in various other endeavours of consumer protection. On products safety, the Toys and Children's Products Safety Bill was enacted in November 1992 and became effective in July 1993 after years of lobbying by the Consumer Council with numerous product tests conducted on substandard and potentially dangerous toys and other children's products.

On codes of practice to encourage more ethical business practices, a major breakthrough was achieved when the Consumer Council and the Medical Association of Hong Kong jointly issued a set of patients' rights and responsibilities, under which patients are entitled to ask for the full disclosure of drugs prescribed to them and the schedule of charges.

In the year, the Consumer Council was again consulted on major government and legislative policies affecting consumer interest. Examples include the Deposit Protection Scheme, the policy on taxi services, the Securities Clearing House Bill and the Code on Takeovers and Mergers and Share Repurchases in relation to Schemes of Arrangement.

More generally, in the field of consumer research, the Consumer Council conducted 26 product tests, 69 in-depth studies and eight consumer surveys in the year under review.

Finally, I would like to affirm the Consumer Council's commitment to serving the consumer interest. In pursuing this objective, we will identify practices that may be unfair to consumers and recommend areas for improvements. We will also spare no effort in censoring those who set out to defraud consumers. We believe that business can be promoted through fair play and that the interests of consumers and service suppliers need not be in conflict.

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I can assure you that the Consumer Council is always willing to come forward and collaborate with different sectors of society to foster business practices that are in the best interests of the community.

Thank you, Mr President.

Oral Answers to Questions

Independent police advisory committees

1. MR JAMES TO asked (in Cantonese): Will the Government inform this Council whether consideration will be given to setting up independent police advisory committees, modelled on the system of advisory committees of the Independent Commission Against Corruption and composed of respectable members from different sectors of the community, to monitor all aspects of Police work in order to improve the accountability of the Police Force and enhance communication between the Police Force and the public; if so, what is the time-table; and if not, what are the reasons?

SECRETARY FOR SECURITY: Mr President, we do not believe that it is either necessary or desirable to establish additional independent police advisory committees.

There already exist procedures to monitor the Police Force properly. Expenditure and performance, including the efficient and effective use of resources, are monitored on a continuing basis by the Central Government. Broad strategies for maintaining law and order are monitored by the Fight Crime Committee, which includes representatives from the community and this Council. The Committee regularly receives and assesses reports from the Police Force on the extent to which plans to reduce crime have been implemented. The work of the Police Force is also monitored by Members of this Council. The Security Panel takes a close and active interest in all aspects of police performance and regularly calls for, and receives, papers and reports from the Force.

There are also already adequate channels of communication between the Police Force and the community. The police place great emphasis on the development and improvement of relations with the public and communication between the police and the public. The Police Public Relations Bureau has in recent years strengthened youth liaison, through the Junior Police Call, and liaison with the public, through the Organized and Serious Crime Hotline and Crime Information Forms. At district level, the Force is represented, through the District Police Commanders, on all District Boards and a Police Community Relations Officer is assigned to each district to foster closer relations between the Police Force and the community it serves. The Fight Crime Committee,

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2645

together with the District Fight Crime Committees, further enhance dialogue between the Force and the community.

MR JAMES TO (in Cantonese): Mr President, all the points mentioned in the Secretary's reply are in fact equally applicable to the Independent Commission Against Corruption. The ICAC has been replying on various committees, for example, the Operations Review Committee, which I particularly refer to, for advice. Will the Secretary advise this Council, insofar as implementation of prosecution policy and accountability are concerned, whether consideration will be given to setting up a body within the Force along the same line as the Operation Review Committee so as to ensure that the police are exercising their powers properly?

SECRETARY FOR SECURITY: Mr President, I do not believe it would be possible or desirable to have a committee for the Police Force on the same line as the ICAC Operations Committee. The ICAC and the Police Force are really two entirely different organizations. The ICAC deals with about 3 000 cases a year. The Police Force handles over 80 000 cases a year, many of them are very urgent and require immediate action. The ICAC institutes some 600 prosecutions a year. The Police Force institutes over 33 000 prosecutions and that is not including prosecutions for minor offenses such as traffic and hawker offences which alone amount to more than 100 000 a year. It would simply not be possible or practicable to have a system like the ICAC Operations Committee monitoring the Police Force's actions.

MRS ELSIE TU: Mr President, the reply by the Secretary for Security has the same familiar ring with which the police approached the setting up of the ICAC 20 years ago. Could the Secretary inform us what kind of serious situation must exist in order to convince him that an independent CAPO is necessary to deal with complaints that we who work among the grassroots are aware of? How long will he allow the bad eggs to taint the reputation of the Police Force, which is improving but still not good enough?

PRESIDENT: Mrs TU your question is directed towards complaints against the police and replacing the CAPO system. Right, Secretary, do you have an answer for this?

SECRETARY FOR SECURITY: Mr President, yes. I would perhaps first like to point out that the Police Complaints Committee is in all respects an exact replica of the ICAC Complaints Committee. There is no substantial difference between the two or the way they operate.

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On the question of the Police Complaints Committee, I believe that in the way the CAPO office and the Police Complaints Committee operate at the moment, they investigate all complaints thoroughly and impartially. Certainly there are some changes and improvements that we can, and should, make and I have reported them previously in this Council.

MRS SELINA CHOW (in Cantonese): Mr President, why are the Fight Crime Committee and the police still opposed to the idea of using the district boards as their advisory bodies at district level, and appoint instead the District Fight Crime Committees which are less representative than the district boards, to deal with relevant matters?

SECRETARY FOR SECURITY: Mr President, I have not been aware of this complaint before. But I believe that the District Fight Crime Committees, which generally include certain members of the district boards, have been a very effective means of communication between the police and the community at district level.

MRS SELINA CHOW (in Cantonese): Mr President, I do not think the Secretary has answered my question. I am not asking about .....

PRESIDENT: Not answered? Mrs CHOW, could you put it again please? MRS SELINA CHOW (in Cantonese): Yes.

MRS SELINA CHOW (in Cantonese): Mr President, why are the Government and the Fight Crime Committee still opposed to the idea of using the district boards as the advisory machinery when it comes to matter of this nature? Obviously the district boards advise the Government on various policies other than this. Why are they not prepared to let the district boards deal with matters related to the Police Force?

SECRETARY FOR SECURITY: Mr President, I do not think it is true to say that matters relating to the Police Force are not dealt with by district boards. As I said in my main answer, the Police Force is represented through its District Commanders on all district boards and I believe that police matters are discussed there, quite frequently and regularly. But in view of the importance of law and order, I also think it is appropriate, as the Fight Crime Committee has decided, that it should have specific district committees to discuss these matters on a district level and that is why we have established, and wish to maintain, the District Fight Crime Committees.

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MR JAMES TO (in Cantonese): Mr President, in his reply to my follow-up question, the Secretary has pointed out that it would not be possible to compare the number of cases handled by the ICAC and the Police Force; the former was in thousands while the latter was in tens of thousands. For this reason, my proposal for setting up an independent advisory committee cannot be accepted. But I would like to pursue the question further: Is the Secretary aware that prosecution actions taken by the police are very varied in nature, from parking offences to murder cases. As to whether the police are exercising their powers properly when enforcing certain policies, the Fight Crime Committee referred to in the Secretary's reply will only look at it from the angle of crime fighting. Should we therefore set up a committee to examine the problem from a wider perspective? Apart from workload, are there better reasons that the Administration can put forward to convince the community that such a committee should not be set up?

SECRETARY FOR SECURITY: Mr President, I am not quite sure what the question is but I would say that the police do not generally on their own institute prosecutions. Those are instituted by the Attorney General. The police have to make their case to the Attorney General before prosecutions are instituted. I believe, as I have said in my main answer, that the present arrangements for ensuring that the police perform their duties impartially are correct. I believe that the question of police powers is regularly looked at in many areas by this Council. I think if one looks at the legislation on that subject that has been before this Council in recent years, it is very clear that the present system operates in a way very satisfactorily.

Ancillary development of Tsing Ma Bridge and Kap Shui Mun Bridge

2. DR SAMUEL WONG asked: Will the Government inform this Council whether consideration has been given to reserving adequate land in the vicinity of Tsing Ma Bridge and Kap Shui Mun Bridge for parking tourist coaches and setting up souvenir shops, restaurants and so on, so as to facilitate the development of these places as major tourist destinations?

SECRETARY FOR WORKS: Mr President, the Government certainly recognizes the potential for the Lantau Fixed Crossing to become a major tourist attraction. Consideration is being given to a number of sites in the vicinity of the Crossing, taking into account their location as viewing points for the whole of the Crossing and in particular the Tsing Ma Suspension Bridge. Careful attention is being given to the need for incorporating adequate parking facilities, as well as the potential for commercial activities such as souvenir shops and restaurants.

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DR SAMUEL WONG: Mr President, will the Secretary inform us whether there will be provision of vertical transportation on the towers on either side of the suspension bridge so that tourists could go up to the deck level and have a panoramic view of that part of Hong Kong, as well as to obtain a close-up experience of the bridge itself?

SECRETARY FOR WORKS: Mr President, the towers of the bridge are certainly designed for vertical access, by way of lifts and staircases. However, this is purely designed for maintenance purposes and possibly for emergency purposes. It is not designed to accommodate tourists.

MR MARTIN BARROW: Mr President, would the Secretary advise if tourism opportunities are being taken into account for all other Airport Core Programme projects, including the various waterfront layouts of the various reclamation areas. And could he confirm that he will be consulting with the tourism industry on this?

SECRETARY FOR WORKS: Mr President, certainly in the planning of all of the areas which will form as part of the Airport Core Programme, those plans, particularly those in West Kowloon reclamation, take into account the needs of the community. I am quite sure that my colleagues, in their planning of these facilities and the detailed design, will take into full account the needs of the Tourist Association.

Organ donations

3. DR CONRAD LAM asked (in Cantonese): In view of the divergent views recently expressed by members of the medical profession in Hong Kong on the acceptance of organ donations from executed prisoners outside the territory for the purpose of organ transplant, will the Government inform this Council:

(a) what policy has been established to deal with such issue in Hong Kong; and

(b) if there is no such policy, whether consideration would be given to formulating one?

SECRETARY FOR HEALTH AND WELFARE: Mr President, yes, we do have an established policy on the acceptance of organ donations from executed prisoners outside the territory.

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First, any organ donation must be a voluntary act and the decision to donate must rest on the free will of the donor. Secondly, there must not be any commercial transaction of organs.

Unless these two conditions are fulfilled beyond a shadow of a doubt, acceptance of organs from executed prisoners is both repugnant and obnoxious. Thus, we will only accept a prisoner's express wish to donate if his offer is made voluntarily, without any coercion, and before impartial and reliable witnesses.

Therefore, in respect of donated organs from prisoners about to be executed, each case is carefully considered on its own circumstances and we need to be satisfied that the requirements of the policy, as stated above, are fully met.

DR CONRAD LAM (in Cantonese): Mr President, as the Hospital Authority doctors have different views on the acceptance of organs from executed prisoners in other countries for transplant purposes, can the Administration request the Hospital Authority to take a clearer and consistent stance on, for example, organ transplant in its delivery of medical services so that the procedure will not bring any inconvenience to members of the public or make them feel that they are being unfairly treated. I said that because there were indeed such remarks: "If the doctors in the hospital I stay refuse to accept organs from executed prisoners in other countries, does it mean that I may have to wait longer?" Can the Administration ask the Hospital Authority to do something about this?

SECRETARY FOR HEALTH AND WELFARE: Mr President, I think the personal views of Hospital Authority doctors should not, and do not, prejudice the interests of patients, whose interests should always remain paramount. If a doctor opposes the use of executed prisoners' organs as a best match for transplant, then the doctor will refer the case to another member of the transplant team for the necessary procedure. Whilst doctors are entitled to hold personal views on the subject, I will nevertheless refer Dr the Honourable Conrad Lam's suggestion to the Hospital Authority for their detailed consideration of the appropriate procedure to adopt.

MR LAU CHIN-SHEK (in Cantonese): Mr President, can the Secretary inform this Council why the two teaching hospitals in Hong Kong have reservations about organ donations from executed prisoners, for example, they are unwilling to accept organs donated by executed prisoners in Singapore for transplant purposes here? And, does the Administration have the same stance towards organ donations from executed prisoners in China and other countries?

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SECRETARY FOR HEALTH AND WELFARE: Mr President, a prisoner is first and foremost a human being. The acceptance of an executed prisoner's organs is an issue which concerns everyone of us. There should always be concern that, as an executed prisoner, the donor may be under duress. Therefore before we accept any donation, we must always satisfy ourselves beyond doubt that the organ is voluntarily given and that there is no coercion and there is no commercial transaction. The same principle applies to donations from any country, Singapore or China. It has got to be considered against the background of individual circumstances.

DR LEONG CHE-HUNG: Thank you, Mr President. The two policies, that the Secretary has mentioned, obviously are very honourable ones and I am sure the medical profession and the transplant team will strictly abide by them. But does the Administration see any differences on a moral basis between the donation of organs by an executed prisoner, made voluntarily of course, and the donation of organs made by a victim, for example, of a traffic accident? If there are no differences, will the Administration do its best to ensure that organs procured this way would be used by both private and public hospitals, taking into consideration the fact that some doctors may have particular feelings themselves, so that organs procured in such a way will not be wasted?

SECRETARY FOR HEALTH AND WELFARE: Mr President, in this regard, we have the Human Organ Transplant Bill which is aimed at cracking down on commercial transaction. That Bill is still with this Council. I remember the Human Organ Transplant Bill was introduced by me into this Council on 8 April 1992. And I believe it is now being studied by an ad hoc group. I think that is a very important piece of legislation and I do appeal for early consideration of this piece of legislation because it is hoped that it will, amongst other things, eliminate the possibility of collusion and commercial trading of organs between donor and recipient. The current law, as it stands, allows anybody to donate his organs. And we need the Human Organ Transplant Bill to be enacted as a law.

The answer to the first part of the question is, basically, "yes". Any donor's genuine wish to donate the organ must be respected.

As regards the procedure between the public and private hospitals, I would say this: it is legally permissable for someone overseas to offer an organ to an individual, provided that there is no contravention of the existing law governing undesirable medical advertisements, and as I said earlier, the future Human Organ Transplant Ordinance, if it is passed. It is possible for this to be carried out.

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DR HUANG CHEN-YA (in Cantonese): Mr President, credit should be given to the policies mentioned by the Secretary as they respect the human rights of executed prisoners. Can the Secretary inform this Council whether hospitals need the prior approval of the Administration before accepting organs donated by executed prisoners so as to ensure that it is in line with the policies mentioned by the Secretary? If no, then do the policies remain just policies on paper? If yes, may I know how many applications were received in the last three years? Were all applications approved and the procedures mere formalities and that, after all, the human rights of executed prisoners had not been protected?

SECRETARY FOR HEALTH AND WELFARE: First of all, statistics. There were three pairs of corneas and three pairs of kidneys donated to Hong Kong patients from Singapore for transplant purposes in the last couple of years. All corneas and the two pairs of kidneys were transplanted. Two kidneys were abandoned. In one case, the patient was medically unfit to undergo the transplant process. In the other case, blood screening tests showed controversial results after the kidney arrived in Hong Kong. And the patients in question were in Hong Kong. The doctors advised therefore not to proceed. Two other donors have recently withdrawn their offer. One has decided not to donate and the other has decided to donate to a Singaporean recipient.

I do not want to go into the detailed procedure in respect of individual cases, but generally we follow the following procedure in respect of the donation. The Hospital Authority will reconfirm the wishes of the potential donor by liaising, in the Singapore case, with the Singaporean authorities through the British High Commission. Proper consent from the donor will be obtained through liaison with the Singaporean Ministry of Health. The Hospital Authority will have to satisfy itself that the organs are given voluntarily, without duress, and must seek the specific approval from the Secretary for Health and Welfare before the organ is donated.

PRESIDENT: Mr Jimmy McGREGOR.

MR JIMMY McGREGOR: Mr President, my question has been answered. Thank you.

Condoms on sale in Hong Kong

4. DR LEONG CHE-HUNG asked: In the light of the Consumer Council's recent findings on the quality of condoms currently on sale in Hong Kong, will the Government inform this Council whether it will:

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(a) conduct frequent testing on condoms to ascertain if they comply with international standards in view of their great impact on public health; and

(b) consider changing the focus of its present AIDS-related publicity which urges people to use condoms for safe sex?

SECRETARY FOR HEALTH AND WELFARE: Mr President,

(a) Since 1988, the Consumer Council has conducted three tests on condoms obtained from retail outlets. The results on each occasion have been widely publicized in order to allow consumers to make sensible and informed choices.

Subject to the enactment of the Consumer Goods Safety Bill, introduced by the Secretary for Trade and Industry on 8 December 1993, the Commissioner for Customs and Excise will enforce the legislation to ensure that the consumer goods supplied are reasonably safe. He will be empowered to refer samples to the Government Laboratory for testing. This should provide an added safeguard for the public.

(b) As regards part (b) of the question: as for the focus on the use of condoms in our AIDS-related publicity, let me emphasize once again that, in the absence of a cure or vaccine, prevention remains the only effective way to contain the spread of HIV and AIDS.

One of the most important ways to prevent AIDS, and particularly HIV transmission through sexual intercourse (which accounts for some 80% of all HIV infections in Hong Kong), is the practice of safer sex. I underline the words "safer sex" — as the only sure "safe sex" is no sex. In other words, no sex is safe.

But it is clearly unreasonable to expect everyone to be celibate. As Dr Samuel JOHNSON once said "Marriage has many pains, but celibacy has no pleasures". Safer sex covers many lifestyle choices varying in effectiveness from:

(a) maintaining a mutually monogamous relationship with a single partner; (b) avoiding casual sex;

(c) reducing the number of sexual partners; to

(d) wearing a condom which, used on its own, may instil a false sense of security.

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Our strategy therefore on AIDS is entirely in line with the World Health Organization's global strategy on the prevention of AIDS and HIV transmission. Our focus is on the importance of leading a healthy lifestyle, both in terms of AIDS prevention and generally. This message is targeted particularly at youth, women and also at the family.

I believe that the focus on the use of condoms in our overall AIDS message is about right. Still, I shall welcome expert advice through the Advisory Council on AIDS, or community organizations such as the Hong Kong AIDS Foundation, of which Dr the Honourable LEONG Che-hung is Chairman.

DR LEONG CHE-HUNG: Thank you, Mr President. Given the fact that, as the Secretary has mentioned, the only real safe sex is no sex and given the fact that it is very difficult to ban sex, the safety of condoms obviously becomes a very important social issue. The question is: does the Government agree with the results of the Consumer Council that some two-thirds of condoms on sale are unsafe? If the Government agrees, will the Government impose an internationally approved safety standards test on imported condoms? And if the Government does not agree with the results of the Consumer Council, then why not?

SECRETARY FOR HEALTH AND WELFARE: Mr President, as I said in my main reply, lifestyle is a most important factor in avoiding the transmission of AIDS and HIV. In this respect, condom use should be a supplement rather than an alternative to a sensible and healthy lifestyle. The safest form of "safer sex" is to maintain a mutually monogamous, and I hope I said monogamous — not monotonous — relationship with a single partner. No barrier contraceptive devices are 100% foolproof. Correct and consistent use, coupled with the maintenance of a good lifestyle is of paramount importance. I value the research done by the Consumer Council. Indeed, it has found that a large percentage of the condoms used in Hong Kong through the retail outlets may not be as safe as we thought they might be. I am also aware that the quality of condoms elsewhere is controlled under the law. For example, in Singapore, it is governed under the Medicines Act. In New Zealand it is under the Contraception, Sterilization and Abortion Act. In this respect, the standard adopted in most developed countries is the internationally adopted standard — ISO 4074.

Not for one moment do I dispute the fact that this is a public health issue. It is also a very important social issue. The use of condoms and their adequate protection given to the consumer is of paramount importance. We do have a piece of legislation before the Honourable Members for your consideration. That is the Consumer Goods Safety Bill. When enacted the Bill will not only provide an enabling provision for certain standards to be kept but also for penalties to be measured. Again I appeal to this Council for early enactment of

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such a very important piece of legislation which will be a suitable vehicle for adopting the adequate standards for the protection of consumers.

MR TIK CHI-YUEN (in Cantonese): Mr President, some organizations are actively promoting the use of female condoms. Has the Administration conducted any studies on the effectiveness of female condoms in preventing pregnancy and AIDS? If not, is the Administration going to do that?

SECRETARY FOR HEALTH AND WELFARE: Mr President, female contraceptives, or rather female condoms in this context, are a new device. Indeed it was only last year we read in some newspapers that now we are talking about "his" and "hers". But, as I said earlier, any barrier contraceptive device, if correctly and consistently used, should provide for safer sex. The female condom is important in that it gives not only protection but it gives women the right to take charge of her body. So it has a dual message, that is, not only to protect the consumer but also to give a woman the basic right and self-dignity to be in charge of her body. However, given the limited experience of the use of female condom in Hong Kong, or elsewhere I think, it is somewhat premature for us to evaluate the role that it has to play in the overall scheme of things.

MR JIMMY McGREGOR: Mr President, I should declare that my interest is purely academic (laughter), at my age (laughter). In the light of the finding by the Consumer Council and if it agrees with this finding, will the Administration inform this Council whether Hong Kong is used as a dumping ground for substandard condoms? And if so, how long will it be before a standard can be established by law to introduce proper spot checks?

SECRETARY FOR HEALTH AND WELFARE: Yes, we have suspicion that substandard condoms are on sale here. If we pass the legislation already with this Council soon, then we could, through the enabling legislation, make regulations to control the standard — to measure and to mete out suitable penalties to those who have put Hong Kong people at risk.

Capital gains tax on property transactions

5. DR YEUNG SUM asked (in Cantonese): According to an information paper issued by the Finance Branch to the Legislative Council Housing Panel, the Government is opposed to the idea of introducing a capital gains tax as a means to curb property speculation because the imposition of such a tax would in its opinion contravene the existing policy of maintaining a simple and easy-to-administer taxation system based on low tax rate. Will the Government inform this Council:

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(a) how the respective criteria are drawn up to define the level of a low tax rate and a simple taxation system;

(b) according to the findings of the study conducted by the Government, what advantages and disadvantages would be brought to Hong Kong by the introduction of a capital gains tax on real estate investment; and

(c) in view of the limited effect of the existing measures in holding down property prices, what other measures can be taken to discourage property speculation if the Government refuses to introduce a capital gains tax on real estate investment?

SECRETARY FOR THE TREASURY: Mr President, it is our fundamental policy to maintain a simple, stable and easy-to-administer taxation system based on low rates. Over a very long period of time, such a tax regime has made a significant contribution to creating a favourable climate for business growth in Hong Kong. It is business growth which contributes most to the wealth of Hong Kong, and allows us to leave as much of the workers' earnings in their pockets as possible.

A capital gains tax would send a strong negative signal to both local and overseas investors. The experience of some overseas countries suggests that punitive taxation on certain categories of capital gains is economically counter-productive. It is thus natural that the Administration has strong reservations about introducing such a tax, although the subject is not closed and we are still studying the possible ramifications of such a tax in Hong Kong.

Turning to the fist part of Dr YEUNG's question, there is no universal rule for determining what constitutes a low tax rate and a simple taxation system. But a corporate tax rate at 16.5% is recognized as low both in absolute terms and by international standards. To achieve a real benefit, "low" must mean two things in particular: first, that it is low enough to make us attractive in comparison with competitors in the region, and second that rates should be low enough to make avoidance and evasion a relatively unattractive proposition.

It is impossible to pin down a specific level below which rates would be regarded as low. Our salaries tax regime, which also plays a part in attracting investment, is highly favourable both to the local workforce and to overseas investors. At present, no taxpayers are required to pay more than 15% of their salaries in salaries tax. The average effective tax rate for the salaries taxpaying population stands at only 8%, and this will be further reduced to 7% if Members accept the concessions announced by the Financial Secretary last week on salaries tax. We define a low salaries tax rate as one that naturally motivates the workforce to achieve higher productivity, and that assures the workforce that the Government will not seek to take more tax from their hard-earned

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salaries than is strictly necessary. The Hong Kong tax system falls comfortably within this definition.

By the same token, there is no agreed definition of a "simple" taxation system. It is clear however that no government has yet managed to introduce an effective tax system that is so simple that every man in the street can understand all of it. But Hong Kong gets close to this. For us, the concept of "simplicity" must include "stability". That is, we must not keep chopping and changing it. No investor is going to want to commit his capital to a country which puts band-aid taxes to address temporary problems, and takes them off again when the need for them goes away or political whim turns against them. We have consistently been following a policy of simplifying and trimming our tax system so as to leave a core of readily understood measures which are productive, easy to enforce, and which meet public revenue needs with minimum requirements for adjustment.

On the second part of Dr YEUNG's question, our initial assessment is that a capital gains tax would have a significant, negative impact on property development and investment in Hong Kong. To provide an effective deterrent against property speculation, the suggested capital gains tax would have to be set at a relatively high level. This would dampen demand not only among speculators but also those who want to make a long-term investment in the property market. This would ultimately reduce the availability of premises for those end-users who opt to lease rather than to own property. There is of course the danger that property developers would respond by cutting back on their production. The longer-term development of the property sector would thus be jeopardized.

During the period 1989-93, private sector building expenditure took up 50% to 60% of the overall expenditure on building and construction in the economy. If you include the service margin of real estate developers, this expenditure accounted for 30% to 40% of the overall investment expenditure in our gross domestic products. A capital gains tax on property transactions would thus impact on a large segment of investment in the economy. In response to the views expressed by the Legislative Council Panel on Housing, we are now working on a quantitative analysis of the impact of a capital gains tax on the property sector and on the economy as a whole. This study has not yet been completed; but it is expected to illustrate the point I am making in more concrete terms.

There are also practical issues we must address in introducing a capital gains tax. They include:

- the appropriate treatment of gains attributable to inflation;

- whether losses should be deductible and, if so, whether they should only be offset against capital gains;

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- whether gains should be averaged and brought to charge over a number of years; and

- whether the tax should apply to transactions in stocks and shares in property related businesses.

Indeed, whether a transaction is intended to be speculative is something one can only discover by reading the minds of those concerned. One man's speculation is another man's investment. To try to set out legal definitions, which will not unintentionally penalize genuine home-buyers or those for whom property transactions are the mainstay of a regular day-to-day business, is a tall order. It will never be achieved with 100% precision, and there would have to be avenues for appeal and assessment. It could also lead to widespread attempts to avoid or evade tax, thus increasing the administrative cost of the new tax. All this points to a cumbersome and controversial system.

As to the advantages of the tax, it might depress property prices and bring in additional revenue for the public coffers for a limited duration. But they seem to be an unconvincing argument for introducing a capital gains tax, given the unpredictably wide implications of such a tax and our present strong fiscal reserves.

On the third part of Dr YEUNG's question, I wish to assure him that as a responsible government, we are as concerned as the general public about property speculation and its negative impact on the economy and on individuals. To this end, we have obtained this Council's approval to require the payment of stamp duty on all agreements of sale of residential properties. This will increase the cost of speculation without harming genuine home-buyers. At the same time the Inland Revenue Department will continue its efforts in collecting profits tax from speculative property transactions. These measures have provided some relief.

The key to tackling rising property prices must be to increase supply. We shall pursue this on several fronts. Firstly, we are seeking to increase supply through the annual land disposal programme. In this connection, we have proposed to the Chinese side of the Airport Committee that we provide 62 hectares of new land for residential and commercial developments along the airport railway. Secondly, early next year the Housing Society will make available the first batch of the 10 000 flats for pre-sale under the main Sandwich Class Housing Scheme. Thirdly, we are taking measures to facilitate redevelopment of existing sites. An immediate measure is to boost the staffing of the Lands Department by over 100 in 1994-95 so as to speed up the processing of lease modifications and land exchanges. Fourthly, we are considering whether we can devise a fair and equitable mechanism to assist private developers with land assembly for redevelopment schemes. And fifthly, we are discussing with the Housing Authority on how we could mobilize its surplus funds in speeding up the construction of new housing and supporting infrastructure, instead of redirecting these funds to general revenue.

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In conclusion, Mr President, we believe that on present indications, the short-term benefits which a capital gains tax might have are heavily outweighed by its long-term disbenefits. There is a serious risk that imposing a capital gains tax now, assuming it could be effective in curbing activity in the property market, would do no more than reducing prices for the present generation of home-buyers and increasing costs for future ones. If you accept that the demand for homes is going to be fairly stable, then temporary band-aid measures to suppress demand are just going to compound the problem until later. The fundamental solution must be to make better progress in satisfying demand through increasing land supply. We are well aware of the problems faced by aspiring home-owners as a result of the rising property prices. We are pursuing various options with a view to providing them with speedy and effective relief. And we have not closed our book on a capital gains tax.

Thank you.

DR YEUNG SUM (in Cantonese): Mr President, the Secretary's reply seems to say that the introduction of a capital gains tax will have a significant impact on the property market, and so it has more disbenefits than benefits. But according to the law of the market forces, if the Administration will believe in it, when demand in the property market exceeds supply, trading will definitely yield profit. So the Administration needs not worry too much. My question is: Is the Administration aware that monopoly and hoarding are basically existent now in the private property market now? If so, how is it going to improve the situation; if not, how will it justify what it says?

SECRETARY FOR TREASURY: I think it is a question, Mr President, which would best be answered by the Secretary for Planning, Environment and Lands.

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Yes, Mr President. I thank my colleague for giving me the opportunity to reply. The question of a monopoly in the land market is actually a flag — a jargonistic flag — which is waved, rather like the flag which refers to a government high land prices policy, when generally people are actually unable to identify the problem and present cogent options for solving it. The fact of the matter is that the Hong Kong construction industry produces close to 70 000 flats a year and the market deals in, roughly speaking, 150 000 transactions, and of course whilst there may not be 150 000 sellers, there are obviously a considerable number of sellers. The suggestion therefore that the market is monopolistic, I believe, is over-simplification and as I say a convenient reference to a difficult problem.

As far as the question of land developers hoarding land is concerned, this is a flag of a very similar kind. And although the flag is waved extremely frequently and persistently, I have not yet had any clear evidence or indication of any piece of land or any land bank which could be described as being

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hoarded by anybody. The point I think about the production of flats is that for almost all new land disposed of by the Government, and for many other cases where we impose conditions under land exchange and lease modification terms, building covenants are also imposed which require the production of a degree of the development within a fixed period, either in terms of a quantity of gross floor area or of value of the property. So there is plenty of discipline, apart from the market discipline, on developers to actually produce flats when they undertake development. So I am not sympathetic to the idea that there is either a monopoly or significant hoarding of land or flats, but I should be very pleased to see some evidence.

MR RONALD ARCULLI: Thank you, Mr President. I am grateful to the Secretary for Planning, Environment and Lands for putting the record straight. But back to the question raised by Dr YEUNG Sum. The Secretary for the Treasury has given quite a comprehensive answer to his question. But I am disappointed that the Administration feels it needs to actually study the possible ramifications of a capital gains tax as a means to curb property speculation. Since the purpose of the suggested capital gains tax is to curb property speculation, would the Secretary for the Treasury agree that the phrase "property speculation" entails property trading, which under our present law, and simple and stable system of taxation, would be taxable in any event, so that there would be no need for introducing a complex and new and perhaps ineffective capital gains tax?

SECRETARY FOR TREASURY: Mr President, I have explained clearly the Administration's views. We have strong reservations about introducing a tax which is going to be a burden on capital gains. However, this request was specifically made by the Legislative Council Housing Panel and it is a reasonable request. I think it is incumbent on the Administration to look into it in a systematic and a thorough way. This is what we are doing. And I do agree with Mr ARCULLI that we do have a simple and very effective tax system and we should be very wary of making any unnecessary modifications to it.

MR ERIC LI: Mr President, can the Administration confirm that in considering the issue of capital gains tax at any time, they would take into account: firstly the general taxation principle that the same transaction must not be taxed more than once by way of capital gains tax and profits tax or stamp duty; secondly, officials are fully aware of a distinct possibility of making further modification to the existing combination of stamp duty and profits tax as superior alternatives to achieve, particularly in the long term, a simpler, more stable, efficient and effective tax system which is consistent with the present fiscal philosophy and much less disruptive to the home owners' market?

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SECRETARY FOR TREASURY: That seems to be quite a tall order, Mr President. But I am sure these issues will be touched upon in our study about whether a capital gains tax in Hong Kong should be introduced.

MR LEE WING-TAT (in Cantonese): Mr President, I would like to follow up paragraph 12 of the reply that touches on land supply. In recent years, whenever the the issue of speculation in private properties was discussed, the Administration would say that it would try to increase land supply. In 1991 and 1992, both the Financial Secretary and Mr EASON estimated that there would be a supply of 70 000 private flats in 1992/93. But according to our estimate, the number of private flats made available up to the end of last year was only 54 000, that is, 16 000 short of the projected figure. I would like to ask Mr EASON: As far as land production is concerned, does the Administration have a precise figure on the amount of disposable land that can be made available annually? If not, what he has said about an annual increase of 35 000 private flats can only be a lie. Can he make up for the shortage of 16 000 flats in the last two years by way of land leases to be agreed upon with the Land Commission next year, and significantly increase the land supply in the future to a level which will enable an annual production of 45 000 to 55 000 flats?

PRESIDENT: I do not think it would be in order to suggest that a Member of this Council or a public officer is lying, Mr LEE, but I am sure the question can be otherwise answered.

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Thank you, Mr President. Certainly I would regret the suggestion that there might be a misrepresentation in anything that I seek to put before this Council.

I think a good deal of counting of flats and averaging of production is perpetually done. And the idea that if we say that the target for the Housing Authority's production is X flats in any one year and that in the private sector the production forecast is Y flats, and if that figure is not hit upon, then it is regarded as some major falling short, either by the Housing Authority or by the private sector, I think, is to look at these things in entirely the wrong way. A good deal of different factors can affect the production of a housing estate or a private development. I think that if one looks at the figures over a period, other than individually year by year, one will find that the production is consistently around the figures which we talk about as being the average annual figures. And the indications are that not only in the next four or five years will we be able to hit a production forecast of about 70 000, but if the measures that we have been talking about and which the Financial Secretary has outlined in his budget speech are effective, then we will actually be able to exceed the 70 000 production forecast within a reasonable period. I think, therefore, we should not get ourselves too excited about particular deviations from a trend. The

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2661 trend is clearly upwards and there are good chances that we can improve on that further.

DR DAVID LI: Mr President, will the Administration inform this Council how it attempts to balance its act of controlling property speculation without damaging the property market and our economy as a whole?

SECRETARY FOR TREASURY: Mr President, I think I have explained in my answer to Dr YEUNG Sum that we have, of course, been very cautious in not introducing any drastic measures and we will rely largely on the market to operate and find its balance. Indeed we have set out how this Administration will try to resolve the problem at its roots, that is, to increase the supply of land and we have set out a number of measures in doing this. I think we have struck the right balance.

Written Answers to Questions

Hung Hom KCR Station remodelling

6. DR SAMUEL WONG asked: Will the Government inform this Council:

(a) why it is considered that spending $1 billion in remodelling the existing KCR Station in Hung Hom is both cost-effective and of high priority, bearing in mind that the station has been operating quite smoothly for over 10 years;

(b) in selecting an architectural consultant to handle this project, whether a competition was held so that design concepts and professional fee levels could be obtained in a fair and open manner; and

(c) if a competition was held, whether it was limited to professional architects and engineers registered under the respective registration Ordinances?

SECRETARY FOR TRANSPORT: Mr President, the capacity of, and facilities at, the Kowloon Station are grossly inadequate to meet present let alone future demand. Built in 1975, the existing terminal was not designed to cope with international traffic; nor was it designed to handle the current volume of 150 000 to 160 000 passengers per day which is four times its design capacity. Customs and immigration facilities have been provided on an improvised basis and through-train passengers have to wait in long queues outside the concourse. As patronage for both domestic and cross border traffic is forecast to grow substantially, it is imperative to upgrade the station to provide, inter alia, for a

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station podium double its present size as well as modern international facilities. In view of its size and complexity, the total cost of the project, estimated at $1 billion, is considered to be reasonable by the corporation.

In seeking conceptual solutions to the capacity and design constraints of the Kowloon Station and in line with its established procedure, the Kowloon-Canton Railway Corporation called for proposals from six established and experienced architectural and design consulting firms, whose professional members are fully qualified and registered locally. Following an internal assessment, the firm which best demonstrated its ability and experience in transport design solutions on a scale experienced at the Kowloon Station was selected to work with the corporation in examining the problems and identifying potential solutions.

The preliminary study has been completed. The Board of the KCRC will shortly consider the findings and decide how best the project should be implemented.

Community Awareness Programme

7. MRS SELINA CHOW asked (in Chinese): Will the Government inform this Council how effective is the Community Awareness Programme introduced at earlier times under which residents of Tin Shui Wai take part in the escort teams of the Programme, and whether the police has any plan to extend the Programme to other districts?

SECRETARY FOR SECURITY: Mr President, the Community Awareness Programme, introduced by the police in Tin Shui Wai, has been effective in securing public support to combat crime, following in particular the series of rape and indecent assault cases in the district. The Programme involves the training of local residents and secondary students in crime prevention and personal safety, so that they can then escort unaccompanied girls to their homes.

Since the start of the Programme in November 1993, 402 volunteers have registered, of whom 273 have been trained as volunteers to provide escorts. The Programme, combined with the efforts of the police, has had a clear deterrent effect; since its commencement, the Police Force has not received any further reports of rape or indecent assault in Tin Shui Wai.

The Community Awareness Programme in Tin Shui Wai was designed to tackle a specific law and order problem in a newly established residential district where community relations had yet to be fully developed. However, there are already well-established channels to address similar policing problems elsewhere, and so we do not consider it appropriate to extend the Programme to other districts. We will, however, consider introducing the Programme elsewhere if circumstances so require.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2663 Convention on the Elimination of All Forms of Discrimination Against Women

8. MISS CHRISTINE LOH asked: Will the Government inform this Council of the legislation to be amended or introduced, and the non-legislative measures to be undertaken, in order to extend the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) to Hong Kong?

SECRETARY FOR HOME AFFAIRS: Mr President, the Hong Kong Government hopes to be able to take a decision shortly on whether we should seek to have the United Kingdom to extend CEDAW to Hong Kong. If it is decided that CEDAW should be so extended, a set of legislative and non-legislative measures would need to be developed to enable us to comply with the provisions of the Convention. As CEDAW would introduce new international rights and obligations in respect of Hong Kong, it would be necessary to consult the Chinese side in the Sino-British Joint Liaison Group in accordance with the agreed guidelines.

Electronic newspapers

9. DR CONRAD LAM asked (in Chinese): As a number of advanced European and American countries have launched their issue of the electronic newspapers, will the Government inform this Council:

(a) whether the Government would support the development of this form of newspapers in Hong Kong; and

(b) if so, what specific measures or plans the Government is going to adopt in this respect; if not, what the rationale is for not supporting such development?

SECRETARY FOR HOME AFFAIRS: Mr President, the Hong Kong Government is fully committed to maintaining a free and active press in the territory. The Government also subscribes to the concepts of free market in services and an open society. As such, there are no restrictions on the introduction of new forms of media.

The Government has no plans to introduce electronic newspapers but would be happy to see their introduction by the private sector.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2664 Banners in public places

10. MISS EMILY LAU asked (in Chinese): Regarding the decision of the Lands Department to permit banners expressing views on basic human rights and political systems to be displayed in Wan Chai District only, will the Government inform this Council:

(a) of the grounds and the policy papers or administrative instructions under which such permission was given;

(b) whether such restriction has infringed the freedom of expression safeguarded by the Bill of Rights;

(c) what measures are in hand to ensure that the legislation, policy and administrative arrangements governing the display of banners will not contravene the Bill of Rights, so that different political views can be expressed on a fair basis and the spirit of freedom and democracy will be upheld; and

(d) whether the Administration will review the legislation, policy and administrative arrangements (including the Wan Chai Pilot Scheme for the Display of Publicity Materials) governing the display of banners and consult the views of the Legislative Council in this respect?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,

(a) Under existing guidelines, District Lands Officers only approve non-commercial advertising involving the display of banners and posters on government land for special events. The main criterion for approval is whether the event to be publicized is non-commercial and of interest to the general public. Factors such as possible obstruction to the public and traffic safety are also taken into account. Applications which are not related to a particular event are normally not accepted.

In mid-1992, in view of the demand from some district board members and Legislative Council Members to erect signboards and banners in public places, for example on street railings, to publicize their activities, services and offices, a review was carried out to see if this demand could be met and to consider the regulatory aspects and resource implications as well as the environmental impact of any new arrangements.

In June 1993, a pilot scheme was begun in the Wan Chai District for a trial period of two months using a new set of guidelines, under

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which applications for the display of signboards and banners would be approved provided that no commercial advertising or material of an invidious nature was involved. It was intended that if the scheme was successful, the Government would consider introducing it on a territory-wide basis subject, among other things, to resources being available. Two additional staff were specially deployed in the District Lands Office/Hong Kong West to implement the scheme. In August 1993, on completion of the pilot scheme, the two staff were removed but DLO/HKW continues to handle applications relating to the Wan Chai District based on the new guidelines but without the follow-through enforcement action which was part of the pilot scheme. Because of resource constraints, and other competing priorities, it has not been possible to extend the pilot scheme to other districts.

(b) and (c)

Bill of Rights implications would arise if favourable treatment were given to any group, be it charitable or public interest-based, and similar treatment was not given to other groups in respect of similar types of activity. This is not the case under the existing guidelines, which are applied to all groups in the same way. The same is true of the guidelines currently applied in Wan Chai.

(d) Consideration is being given to extending the guidelines now being applied in Wan Chai to other districts. Changes to current legislation should not be required to ensure fairness.

District Court cases backlog

11. MISS EMILY LAU asked: In view of the private legal profession's offer to help clear the backlog of District Court cases by serving as temporary judges, will the Administration inform this Council:

(a) whether this proposal will be accepted;

(b) if not, what are the reasons; and

(c) what plans are in hand to solve the backlog?

CHIEF SECRETARY: Mr President, the legal profession's offer to serve as temporary District Judges has already been accepted by the Judiciary. The Chief Justice has issued invitations to a first group of 12 lawyers. Eleven of them have indicated willingness to serve for four weeks or more. Most of them will be available in the summer. Arrangements are now being made to fit the dates when they are available into the Court diary.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2666 Other plans in hand to reduce the backlog in the District Court include:

(a) the implementation on a trial basis of a recording system in the District Court to relieve District Judges from taking detailed notes and thus speed up the proceedings;

(b) the introduction of computerization to provide assistance in the listing of cases; and

(c) the temporary deployment of additional judicial officers to the District Court.

"Cleaning up the Countryside" project

12. DR TANG SIU-TONG asked (in Chinese): With regard to the project of "Cleaning up the Countryside" which is due to start in 1994 as proposed in the Policy Address by the Governor in October last year, will the Government inform this Council of the detailed programme for this project, including all arrangements relating to deployment of manpower and financial resources and the proposed time schedule?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, the "Cleaning up of the Countryside" exercise will be undertaken by a multi-disciplinary task force to be set up in the Lands Department. A core team was formed in November 1993 to carry out preparatory work and the full team of over 100 staff is expected to be established in phases over the next few years. A first request for funds will be submitted to the Finance Committee shortly.

Due to the scale and complexity of the problem, the exercise may last some years. The task force will target specific action areas and Shek Kong Valley will probably be the first target area. All possible existing administrative and legal measures will be taken in the short and medium term with a view to achieving an immediate impact. This will mainly involve the clearance of black spots located on government land and rehabilitating or landscaping the cleared land, and liaising with, and seeking, the cooperation of, operators on other land which is under government control. The Central Enforcement and Prosecution Section of the Planning Department will also be taking action under the Town Planning Ordinance against unauthorized development on private land. Other longer-term solutions, the formulation of which will need careful deliberation, will be devised to tackle the more difficult problems. A special committee comprising mainly non-official members will shortly be set up to advise the Government on, and help monitor, this exercise.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2667

For more information, Members may wish to refer to the note on the Black Spots Task Force previously issued to the Legislative Council Lands and Works, Environmental Affairs and Community and New Territories Affairs Panels on 18 January, 17 and 19 February 1994 respectively.

Sports development

13. MR CHIM PUI-CHUNG asked (in Chinese): In view of the forthcoming merger of the Hong Kong Sports Development Board and the Hong Kong Sports Institute, will the Government inform this Council:

(a) whether there will be changes to the procedure of selecting local athletes for participation in international sports competitions, which organization is responsible for the selection and why is that organization assigned the responsibility; and

(b) what criteria are adopted in selecting local athletes for international sports competitions, how to ensure that such selection will not be affected by personal preferences, and whether the selection criteria will be subject to review?

SECRETARY FOR RECREATION AND CULTURE: Mr President, there will not be any change to the procedure of selecting athletes for participation in international sports competitions as a result of the forthcoming merger of the Hong Kong Sports Development Board and the Hong Kong Sports Institute.

The selection of athletes to represent Hong Kong is not a government responsibility. As with all other participating countries and territories, it rests with the national sports associations who are the sole authority in single-sports competitions.

The aim of the selection process is to ensure that Hong Kong is represented in the best way possible and in the spirit of fair play, without distinction of race or background and complying with the requirements of the sports associations concerned.

Generally speaking, the process goes through two stages which, in the case of multi sports games, is done through the Amateur Sports Federation and Olympic Committee of Hong Kong:

(a) the identification of potential high performance athletes through local open championships; and

(b) the selection of representatives through a series of selection trials.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2668

When selecting athletes to represent Hong Kong, the national sports associations ensure that:

(a) the selection process is open and fair;

(b) the procedures are publicized to all registered players, members and member clubs within a reasonable timeframe;

(c) all national competitions and the selection of participants in international games are undertaken within guidelines laid down by the respective international federation; and

(d) athletes must meet residential and other eligibility criteria applied by the international federation and/or the event organizer, and according to the rules and practice of the Amateur Sports Federation and Olympic Committee of Hong Kong as meeting the necessary conditions to represent Hong Kong.

The Amateur Sports Federation and Olympic Committee of Hong Kong is the authority to approve the selection and to control Hong Kong's representation in Olympic, Asian, Commonwealth, and other multi-sports regional and international games. Depending on the circumstances and requirements of each individual sport, the Amateur Sports Federation and Olympic Committee of Hong Kong may lay down additional considerations in consultation with the parties concerned, such as the minimum performance standard required in keeping with the known standards of other participating countries or territories, the training programmes expected, the results of medical fitness tests, and the size of the contingent for the sport. This is the general procedure among National Olympic Committee worldwide.

Flush water supply in Kowloon East

14. MR LEE WING-TAT asked (in Chinese): In view of the nuisance caused to the residents in Kowloon East by frequent suspension of flush water supply, thereby constituting a waste of fresh water, will the Government inform this Council of:

(a) the number of times when the flush water supply in Kowloon East was suspended over the past three years;

(b) the numbers of such cases involving public housing estates and private buildings respectively; cause of the suspensions and the time required for resumption of flush water supply; and

(c) the short-term and long-term measures in hand to alleviate such problem?

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2669

SECRETARY FOR WORKS: Mr President, suspension of flush water supply can be caused by defects or planned isolations in the water supply system outside the boundary of the housing estates, as well as problems within the plumbing system of individual buildings or housing estates.

Records for suspension of the water supply system outside the buildings or housing estates in Kowloon East (Kwun Tong District) are indicated in the Appendix.

Suspension originated from the internal plumbing system of Housing Authority estates are indicated below. Note that 83% of the suspensions lasted for less than one day.

No. of Suspension

1991 92

1992 77

1993 267

Total: 436

Causes of the suspensions generally include mains bursts and planned isolations (for maintenance and connection works and so on), and for the internal plumbing system, blockage of the strainers by moss and failures of pumping equipment.

The Government is aware of the frequent damage to water mains by roadwork activities in recent years. As a positive and immediate measure to tackle the problem, the Water Supplies Department has set up Inspection Teams to step up the surveillance of roadwork activities which are likely to affect the underground water mains as well as to provide guidance and advice to contractors and utility undertakers for the protection of water mains. It is anticipated that the impact of roadwork and/or other utilities' activities resulting in mains burst will be significantly reduced in future.

Within public housing estates, monitoring of the performance of maintenance contractors in this Region will be tightened up to bring about quicker response to pumping breakdowns and better repair service. The problem of strainer blockage has been satisfactorily resolved in 1993 by more frequent cleaning of the supply system. In the longer run, Housing Department has planned to upgrade internal pumping installations for old estates in the territory at a rate of 40 to 50 pumping systems per year in order to minimize the occurrence of equipment failures and hence supply interruptions.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2670 Appendix

Suspension of Flushing Water Supply in the Kowloon East

No. of Suspension Affecting Causes of Suspension

Year

Public Housing Estates only

Private Buildings only

Both

Public and

Private

Buildings Total

Mains

Burst

caused by road works

Mains

Burst due to other reasons*

Planned Isolation

Average Time for

resumption of supply (hour)

1991 23 119 16 158 33 119 6 17 1992 45 121 28 194 19 167 8 15 1993 41 113 27 181 20 148 13 12

Total 109 353 71 533 72 434 27 -

* These include settlement/upheaval of ground, traffic vibration, external loading, movement of anchor or thrust block support the water pipe, corrosion, faulty materials and workmanship and so on.

Overseas students in UPGC-funded institutions

15. MR TIK CHI-YUEN asked (in Chinese): The University and Polytechnic Grants Committee (UPGC) has set the standard that the ratio of overseas students enrolled in UPGC-funded institutions shall not exceed 20%. will the Government inform this Council of the percentage of overseas students attending degree and post-graduate courses respectively in each relevant tertiary institution in the past three years, and the monitoring measures to ensure adherence to this standard?

SECRETARY FOR EDUCATION AND MANPOWER: Mr President, in May 1993, the Governor in Council approved that the UPGC-funded institutions should be permitted to enrol a limited number of non-local students on UPGC-funded courses. Local students are defined as "students who have a right of abode in Hong Kong, or have resided or had their home in Hong Kong continuously for three years immediately prior to the commencement of their courses." All other students are considered to be "non-local students".

UPGC-funded institutions may enrol non-local students at sub-degree, first degree and taught postgraduate levels up to a maximum of 2% over and above the respective approved student number targets. For postgraduate research courses, however, institutions may enrol up to 20% of non-local students within the approved student number targets for these courses.

As regards the percentage of non-local students attending degree and postgraduate courses respectively in each UPGC-funded institution, the UPGC does not have such statistics before the academic year 1992-93. Statistics relating to the academic year 1992-93 are at Annex. Statistical information for the academic year 1993-94 will not be available until the end of March 1994.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2671

The UPGC monitors the student enrolment situation in the UPGC-funded institutions, including the number of "non-local students" attending degree and post-graduate courses, in the context of the institutions' annual statistical returns.

Annex

Number (in fte) and percentage of non-local students

enrolled at UPGC-funded institutions in 1992-93

Institution

Taught

Undergraduate

Research

postgraduate postgraduate

CPHK 0 (0%) 1 (0.2%) 7 (6.3%) HKBC 0 (0%) 0.5 (2.0%) 3 (7.3%) HKP 24 (0.4%) 4 (0.6%) 21 (12.4%) LC 0 (0%) - - CUHK 4 (0.05%) 9 (1.3%) 87 (12.7%) HKUST 3 (0.2%) 10 (5.0%)# 21 (10.7%) HKU 148 (1.9%) 72 (5.1%)# 151 (22.5%)# Total 179 (0.5%) 96.5 (2.8%)# 290 (15.5%)

# The policy on non-local students approved by the Executive Council in May 1993 only came into effect in the 1993-94 academic year.

Security measures at public housing estates

16. MR WONG WAI-YIN asked (in Chinese): Will the Government inform this Council:

(a) whether there are any specific plans to carry out improvement works on the security measures of all the public housing estates in the territory; if so, what are the implementation schedule and details and whether priority will be accorded to estates with poorer public order (for example, Tin Yiu Estate and Tin Shui Estate in Tin Shui Wai and Yau Oi Estate and Tai Hing Estate in Tuen Mun); and

(b) whether consideration will be given to installing telephones and stationing security guards at the lobbies of the buildings before the completion of the necessary works?

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2672 SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,

(a) The Housing Authority is committed to improving security measures in public housing estates. A three-year programme will begin in early 1995 to provide additional security measures to all new Harmony blocks now under construction and to 209 existing Trident and Harmony blocks. These measures include installation of security gates at main entrances, closed circuit television and doorphone systems and the provision of a 24-hour security guard service.

A working group has been set up by the Housing Department to examine suitable security measures and implementation details for the remaining 983 housing blocks of various designs and will submit its recommendations to the Authority in mid-1994. In addition to using the findings of a recent survey on security measures in public housing estates, the department will also consult Mutual Aid Committees on the proposed measures. The working group will take account of the security situation in particular estates in setting priorities for the improvement programme.

(b) The possibility of installing telephones and stationing security guards in the lobbies of housing estate blocks before completion of the main security works will be considered by the working group.

Administrative Officers appointed to directorate posts

17. MR LEE WING-TAT asked (in Chinese): Regarding the posts at directorate ranks in the Social Welfare Department, the Education Department and the Housing Department, will the Government inform this Council:

(a) of the respective numbers of Administrative Officers and departmental staff at such ranks; and

(b) whether a certain ratio is used as a basis for appointing Administrative Officers and departmental staff to the posts at each directorate rank in the above departments; if so, what is the percentage; please also state the policy in this respect.

SECRETARY FOR THE CIVIL SERVICE: Mr President,

(a) The breakdown of departmental staff, Administrative Officers and other General Grades staff (for example, Executive Officers, Treasury Accounts, Management Services Officers, and so on) in the directorate ranks of the three departments is:

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2673

Department

Departmental grades

Administrative grade

Other general

grades Total

Social Welfare Department

Education

Department

Housing

Department

10 2 1 13 23 1 2 26 45 2 4 51

(b) There is no ratio for the appointment of Administrative Officers to the directorate ranks of these, or any other, departments.

MTR train frequency

18. MR LEE WING-TAT asked (in Chinese): As the Mass Transit Railway Corporation has increased the frequency of its train services on the Tsuen Wan Line in the morning peak period to 31 trains per hour since 3 May 1993, will the Government inform this Council:

(a) whether it is aware of complaints made by members of the public that since the frequency increase, train services on the Tsuen Wan Line have been subject to more frequent delays in the morning peak period as compared with train services on the other lines;

(b) if so, what are the statistics on the numbers of such delays as from May 1993; please also list out the number of delays on the Tsuen Wan Line from May 1992 to February 1993 for comparison purpose; and

(c) what measures are currently taken to improve the above situation?

SECRETARY FOR TRANSPORT: Mr President, the Honourable LEE Wing-tat's question implies that there is a serious problem of delays on the Tsuen Wan line. That is certainly not the case as only a grand total of four complaints have been lodged with the Transport Complaints Unit in the periods referred to by Mr LEE. (Details are given in the annex to this reply). Moreover, the MTRC has confirmed that they have not received any feedback on delays during their "coffee times" with commuters or through other channels of liaison.

According to MTRC records, 90.4% of trains on the Tsuen Wan Line during the morning peak hour were on time between May 1992 and February 1993. This compares with 87.5% between May 1993 and February 1994. But

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2674

bearing in mind that there has been an additional scheduled train during the morning peak hour since May 1993, there has been no real significant delay in service. To put it in another way, the corporation achieved its target of 30 to 31 trains on the Tsuen Wan Line during the morning peak hour on 184 weekdays out of a total of 210 weekdays between May 1993 and February 1994 as compared with a total of 29 to 30 trains on 190 weekdays out of a total of 203 weekdays between May 1992 and February 1993.

The MTRC believe that the very slight decline in the level of service is attributable to longer embarkation and disembarkation time during rush hours rather than any technical or engineering problem. The records also show that, during the past three winter months, there has been an increase in the use of Passenger Alarms on the Tsuen Wan Line — this contributed to some delay in train movements.

MTRC will continue to ensure highest possible reliability from its equipment and seek the co-operation of its customers so as to maintain its high standard of services.

Annex

Complaints about delays in MTR service received by

Transport Complaints Unit

Description May 1992 to February 1993

May 1993 to February 1994

Total number of complaints received 2 4 Breakdown:

Complaints about -

(a) Tsuen Wan Line 2 2

(b) Kwun Tong Line 0 1

(c) Island Line 0 1

2 4

Neon-light signboards control

19. MR FREDERICK FUNG asked (in Chinese): In view of the strong overnight illumination of some giant neon-light signboards which has caused nuisance to the residents of nearby buildings, will the Government inform this Council:

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2675

(a) which Government departments the affected residents should approach to lodge complaints; and

(b) whether consideration will be given to introducing legislative control over the time and level of illumination of the neon-light signboards; if so, what time-frame has been drawn up to this effect; if not, what the reasons are?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, there are no legislative controls nor is it intended to introduce control over neon lights or signs. A person who feels that a light or sign of this kind is a nuisance should seek legal advice as to whether it is actionable through the courts.

Motions

CRIMINAL PROCEDURE ORDINANCE

THE CHIEF SECRETARY moved the following motion:

"That the Legal Aid in Criminal Cases (Amendment) Rules 1994, made by the Chief Justice on 1 February 1994, be approved."

She said: Mr President, I move the resolution standing in my name on the Order Paper.

A scale of maximum fees payable to lawyers in private practice who are engaged by the Director of Legal Aid in criminal cases is set out in Rule 21(1) of the Legal Aid in Criminal Cases Rules under the Criminal Procedure Ordinance. Under section 9A of that Ordinance, these Rules are made by the Chief Justice and approved by this Council.

During the Finance Committee meeting on 16 October 1992, Members approved a two-phase increase in most of the fees prescribed in Rule 21(1) of the Legal Aid Criminal Cases Rules. The first phase of the increase came into effect on 1 November 1992, and the second phase is scheduled for 1 April this year.

The Chief Justice has made the Legal Aid in Criminal Cases (Amendment) Rules 1994, in order to bring the second phase of the fee increase into operation on 1 April. In accordance with section 9A of the Criminal Procedure Ordinance, the Rules now require the approval of this Council by resolution.

Mr President, I beg to move.

Question on the motion proposed, put and agreed to.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2676 TRADING FUNDS ORDINANCE

THE SECRETARY FOR WORKS moved the following motion:

"That with effect from 11 March 1994 -

(a) on the recommendation of the Financial Secretary, the Sewage Services Trading Fund ("the trading fund") shall be established to manage and account for the operation of the government service of sewage services;

(b) the services to be provided under the trading fund shall be those specified in Schedule 1;

(c) the assets set out in Schedule 2 shall be appropriated to the trading fund;

(d) unless otherwise provided in a subsequent resolution in respect of the trading fund, the net value of the assets appropriated to the trading fund shall be shown in the Capital Investment Fund as a contribution of trading fund capital.

SCHEDULE 1 [para. (b)]

SERVICES TO BE PROVIDED BY THE TRADING FUND

1. During the period from 11 March 1994 until the date of the introduction of a scheme of charging for sewage services, design and construction of the following capital projects forming part of the "High Priority Programme of the Sewage Strategy" -

(a) Strategic Sewage Disposal Scheme Stage I;

(b) Tsuen Wan/Kwai Tsing Sewerage Master Plan;

(c) Northwest Kowloon Sewerage Master Plan;

(d) North and South Kowloon Sewerage Master Plan;

(e) East Kowloon Sewerage Master Plan;

(f) Chai Wan and Shau Kei Wan Sewerage Master Plan;

(g) Tseung Kwan O Sewerage Master Plan.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2677 2. On and after the date of the introduction of a scheme of charging for sewage services -

(a) design and construction of capital projects of the "High Priority Programme of the Sewage Strategy" and other sewage services projects;

(b) maintenance and operation of public sewerage systems and sewage disposal facilities;

(c) billing and collection of charges for sewage services levied in accordance with an Ordinance.

SCHEDULE 2 [para. (c)]

ASSETS

$6.8 billion in cash."

He said: Mr President, I move the motion standing in my name in the Order Paper.

In March last year, this Council passed the Trading Funds Ordinance to enable certain government services to be financed and managed under special arrangements. Trading funds will improve operational efficiency and service standards, and will ensure value for money, in departments which are able to finance the services they provide through charges to the users.

In accordance with section 3(1) of the Trading Funds Ordinance, I now move that a trading fund, to be known as the Sewage Services Trading Fund, be established in the Drainage Services Department.

The Sewage Services Trading Fund as now proposed, will manage and account for the operation of sewage services. This will involve a number of key tasks and, in particular, the timely implementation of a programme of capital works urgently needed to reduce pollution in the Harbour. It will also be accountable for revenue accruing from new charges, which it is proposed will be introduced to cover the cost of operating sewage services.

My colleague, the Secretary for Planning, Environment and Lands, has said in this Chamber that unless we apply ourselves to dealing with the pollution in our harbour, we all may be able, literally, to walk on water. The Administration firmly believes that Members of this Council and of the general public having repeatedly called for this situation to be improved, now have the right to expect vigorous and urgent action to deal with the situation.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2678

Following exhaustive studies of the options available, we have identified a High Priority Programme of capital works which will deal with at least 70% of the pollution in the harbour, within the shortest possible time-scale. This programme includes the provision of new and improved collector sewers in many urban areas around the harbour, and the construction of deep tunnels to carry the sewage to a primary treatment and disinfectant works on Stonecutters Island. This system is programmed to be commissioned by mid-1997, at a total cost of some $8.1 billion at 1993 prices, providing that implementation begins immediately.

An initial $1.3 billion from the Capital Works Reserve Fund (CWRF) has been earmarked for sewage works under the Public Works Programme. The Finance Committee, to ensure the early completion of the High Priority Programme, has recently allocated a further injection of $6.8 billion, conditional upon the establishment of a Sewage Services Trading Fund to manage the capital build programme and the operation of sewage services thereafter. Operation as a trading fund provides full reconciliation between operating expenses and revenue from charging. Project implementation by way of design, contract award and construction will be specially reported on to this Council, and the award of contracts will follow existing public works programme procedures.

In December last year this Council endorsed the principle that users should pay for sewage services — the "polluter pays" principle. Within the next two months, we will introduce into this Council legislation aimed at implementing a scheme of charging for sewage services.

Following the introduction into law of the charging scheme, the Sewage Services Trading Fund will be responsible for the collection of charges and the proper use of the revenue to fund the operating costs of providing sewage services. May I again emphasize that it is only by way of a Trading Fund, with annual accounts audited by the Director of Audit, that Members of this Council and the public at large will be able to see clearly where the money raised from charges is being spent.

Turning briefly to the resolution itself, subparagraph (a) establishes the Sewage Services Trading Fund, whilst subparagraph (b) refers to Schedule 1 outlining the services to be undertaken by the Fund. Subparagraph (c) refers to the trading fund capital described in Schedule 2, and sub-paragraph (d) clarifies that, subject to any further resolution, the trading fund capital is the working capital of the Fund.

Schedule 1 to the resolution outlines the services to be provided by the Trading Fund. Section 1 of this Schedule provides that, pending the introduction of a sewage charging scheme, these duties are confined to design and construction of the projects in the High Priority Programme. Section 2 of the same schedule explains that, once a sewage charging scheme is in place, the

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2679

role of the Fund will extend to maintaining and operating sewage services and issuing bills for and collecting charges for those services.

Mr President, some Members of this Council have voiced concern that having a large amount of public money managed by way of the Sewage Services Trading Fund might in some way reduce public accountability for and transparency in the use of this money. Although I and my colleagues have been provided with opportunities to meet Members to allay such concerns, I feel that it is worth briefly reiterating a number of points.

First, the public will have direct access to much more detailed information on the construction phase of the High Priority Programme and the disbursements from the sewage charging scheme, than would be the case if sewage services were to remain within the "conventional" government department system. The Trading Funds Ordinance requires that annual reports be tabled before the Legislative Council along with an indication of longer term business plans. This will result in far greater public accountability for the delivery of services.

Second, under section 6 of the Trading Funds Ordinance, the services to be provided by a trading fund are strictly limited to those prescribed by this Council when resolving to establish the fund. There will be a clear separation of trading fund activities from other activities handled by the Drainage Services Department, and this separation will be spelt out in the trading fund documentation available to the public.

Third, I have undertaken to give regular reports on the progress of capital works under the High Priority Programme to Members of this Council, which will show clearly how the Trading Fund's capital is being applied. These reports will include information on all contracts awarded under the programme and will show also that capital and recurrent expenditure under the Fund are entirely separate.

Under section 3(2) of the Ordinance the Financial Secretary is legally required to have regard to the capability of a Trading Fund service: "to provide an efficient and effective operation that meets an appropriate standard of service." I and the General Manager will be fully accountable in this regard, and I am fully satisfied that the Sewage Services Trading Fund will provide such a standard of service. May I therefore, Mr President, recommend, under section 3(1) of the Ordinance, that the Sewage Services Trading Fund be established on the terms set out in the resolution before this Council.

Mr President, I beg to move.

Question on the motion proposed.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2680

MR VINCENT CHENG: Mr President, the subcommittee set up to study this motion has held four meetings with the Administration. Members of the subcommittee raised various points for clarification and put forward their views and suggestions on the operation of the trading fund as well as the capital works projects of the High Priority Programme of the sewage strategy to be funded by the $6.8 billion Trading Fund Capital which the Finance Committee approved on 4 February.

Members also studied very carefully the proposed Framework Agreement to be signed between the Secretary for Works and the Director of Drainage Services governing the respective role and the responsibility of the two parties, in respect of the operation of the trading fund. A number of amendments have been made to the agreement eventually and I shall describe them in greater deal later on.

Members of the subcommittee have no dispute whatsoever over the need and urgency of the construction of the High Priority Programme in order to improve the water quality of our harbour. However, they are concerned about the need for establishing a trading fund, priorities to be monitored, the implications of the capital expenditure of the trading fund on the level of charges for sewage services and the way to handle operating surplus, if it appears.

With regard to the need for establishing the trading fund now, the Secretary for Works has just given the reasons in his speech and I do not want to repeat them here. We are all looking forward to the early implementation of the programme of the capital works involved and their timely completion in a cost-effective manner.

Some members of the subcommittee raised concern about the technology to be used for sewage treatment. The Administration has agreed to review, in parallel to the construction of the projects, other options for sewage treatment, to take account of emerging technologies and to report its findings to the Environmental Affairs Panel of this Council in due course.

It is the wish of the subcommittee that the most suitable technology will eventually be employed. I understand that there are several international contractors capable of producing a Stage I solution with the appropriate biological and chemical systems which could be completed within the Government's deadline and would produce a quality of effluent discharged into the harbour that would meet international standards. To achieve this, the Government may need to examine its own procedures so that design development arrangements can be put in place without delay. In the meantime, the first part of Stage I, covering the collection system to bring sewage into Stonecutters, can get underway without delay.

The Secretary has not mentioned in his speech just now the review which he promised and I would be grateful if he could confirm that the review covers

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2681

both Stage I, that is Stonecutters, and subsequent stages and may be completed as quickly as possible.

As for monitoring, the Administration has undertaken to submit quarterly progress reports for examination by Members through the Environmental Affairs Panel. These reports will contain information in a format similar to a PWSC paper on all the capital works projects involved against the financial and construction targets and other information relating to the operation of the trading fund. These reports will be discussed at meetings of the panel and members' concerns will therefore be addressed by the Administration.

The quarterly reports will also be provided on top of the normal annual statement of accounts and a report of the trading fund to be submitted to this Council in accordance with the Trading Funds Ordinance.

The Administration has also agreed to consult the panel before finalizing the trading fund's annual corporate and business plan which sets out its operational and financial objectives as well as the performance measures for the period covered by the plan.

Regarding the possible impact of the capital expenditure on the level of future sewage charges, the Administration has made it very clear to the subcommittee that there is no intention for the Government to recover the capital expenditure spent on the High Priority Programme through sewage charges. To reflect this policy intention, the Administration has introduced a new subsection to the Framework Agreement stating explicitly that the return on fixed assets to be employed for this trading fund will be zero percent. Two separate accounts will be kept, one for capital spending and the other for operating costs, and only the latter will be funded from the future charging scheme for sewage services.

In relation to the components of the operating costs, the subcommittee will also consider the question of whether, and to what extent, depreciation and fixed assets should be taken into account. The subcommittee's general view is that depreciation should only be provided for those assets necessary to be replaced and not to recover the cost for building the capital projects of the High Priority Programme.

The Administration has agreed to take note of the above views when working out the proposal for the future charging scheme for sewage services which will be submitted for consideration by the Environmental Affairs Panel around April or May this year.

On the point of how to handle operating surplus, the Administration explained that surplus in the operating account is not anticipated in the long run because the aim of the charging scheme is only for recovering the cost of operating sewage services. However, there may be some operating surplus in the initial period of the scheme, before all sewage projects are commissioned.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2682

The Administration has agreed to set up a revenue rate reserve in the fund to hold such surplus which will be applied exclusively to covering the shortfall, when revenue from charges is lower than operating expenses in the following years.

The agreements reached between the subcommittee and the Administration has been incorporated in the Framework Agreement and the Administration has further agreed that the contents of the Framework Agreement will not be amended without first consulting this Council.

Finally, on behalf of members of the subcommittee, I would like to thank the two Secretaries — Secretary for Works and Secretary for Planning, Environment and Lands — and their staff for attending the subcommittee's meetings and a special briefing organized for all members at short notices, providing clear explanation on many points raised by members and responding positively to the committee's concerns.

With these remarks, Mr President, I support the motion.

MR PETER WONG: Mr President, the Sewage Services Trading Fund is somewhat a misnomer at this stage. Unlike the Trading Funds set up for the Land Registry and Companies Registry which are to enable existing departments to operate under commercial regimes, this Trading Fund is really a construction fund of a sewage service scheme which will not bring about any real sewage conveyance or treatment until well into 1997, that is pollution in the Victoria Harbour will not be improved before that time. Certainly, members of that Bills Committee had not contemplated that it would be used for such a purpose and hence we should be careful to ensure that this use does not contradict its intended objectives. It is with this understanding that we should examine the motion before us.

Somehow, I am not at all happy with the way the $6.8 billion has been appropriated to this Trading Fund. Indeed, if we did not approve this Trading Fund today, and perversely endorsed it at the next sitting for ordinary business on 20 April 1994, our surplus would have been $21.9 billion!

It is little wonder that I have met with such resistance from the Government in my call for introducing accrual accounting in the public sector. Under conventional commercial practice emphasizing true and fair accounts, the appropriation of $6.8 billion would be a note in the accounts showing that there has been a commitment by the Government to spend up to $6.8 billion on a particular project, but little or no firm contractual commitments have yet been entered into with third parties to do the work. There will be very little change in the cash position because money has not yet been spent. As the situation now stands, the $6.8 billion has been neatly wiped off our surplus.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2683

I thank the confirmation by the Secretary for Works that he will report at three-month intervals on progress made and plans in store for the period ahead. He should provide full report and justification of what has been done and take into consideration our comments. It was agreed at our House Committee that a working group of the Environmental Affairs Panel, to which all non-Panel members are welcome to join, will monitor the Trading Fund activities as well as any changes in the Framework Agreement.

Of particular concern has been the efficacy of the lime dosing treatment at Stonecutters Island and we were assured by the Secretary that a full independent study will be made of the various alternative methods of treatment at stage I and that no money will be wasted if any of the alternative treatments are employed. There will also be another study to examine whether the long oceanic outfall is the most appropriate method for Phase II of the Scheme, or more biological treatment is better so that the effluent can be discharged into Hong Kong waters without causing any environmental hazards. In fact I see no reason why a full study of the complete technical process cannot be initiated right away. Only when these studies are completed and the environmental impacts known, can we go ahead and decide on the best way forward.

Either way — the long oceanic outfall into Chinese waters, or the biological treatment which requires more land, we need to come to agreement with China through the Joint Liaison Group. I feel certain that if these alternatives are sincerely examined by the Administration and an objective conclusion made, there should be full co-operation by the Chinese side.

I strongly urge the Administration to confirm that the examination process will be open, fair and acceptable to the people and green groups of Hong Kong.

Another concern has been the charging of depreciation in the Trading Fund on the $6.8 billion of assets that will be spent and capitalized in accordance with the so-called "generally accepted accounting principles", I would first caution that in Hong Kong, our accounting profession has been unable and is unlikely to lay down such specific rules for this particular kind of project of a very large magnitude but we can draw analogies with other activities.

Effectively, this Council has appropriated $6.8 billion towards the deep sewage tunnels and so far as the public is concerned, the assets built has been paid for out of their pockets.

The Administration has the option of either providing for depreciation for fixed assets in the accounts of the Trading Fund but excluding the non-replaceable part from the calculation of charges; or it could provide against those assets on completion of the work, hence there is no necessity to include depreciation costs. Either way, the taxpayers should not be charged again for any depreciation on assets that will not be replaced.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2684

Mr President, it is Hong Kong's wish that these deep tunnels are built as expeditiously as possible and that we have the most appropriate and cost effective means of sewage treatment for Hong Kong. Only thus can we regain the reputation of our fragrant harbour. Mr President, subject to the receipt of the confirmation requested, the Liberal Party will support this motion, but reserve our position on the sewage charging scheme which is about to come out.

REV FUNG CHI-WOOD (in Cantonese): Mr President, when the Administration unveiled, in the 1989 White Paper on Pollution in Hong Kong — A time to act, the Strategic Sewage Disposal Scheme (SSDS), no one ever expected that it would not be until today — five years on — that the construction work would formally start. The main reason for this was the funding problem. Just when the Administration was trying to put together a huge sum of over $10 billion to fund the Scheme, it happened to hear of the "polluter pays" principle put forward by environmentalists. Borrowing the idea, the Administration then proposed a charging scheme for sewage services in order to fund the construction of the SSDS. However in the preliminary consultation stage, many people raised objection to the proposed expensive sewage charge of $40 to $60 per month per household. Realizing that the proposal would inevitably meet with strong public opposition, the Administration changed its plan and undertook to bear the construction cost of the SSDS while the public would only be charged for the operating cost. Nevertheless, during last year's consultation period, members of the public felt that the sewage charges proposed by the Administration were still too high. I noticed that in calculating the operating cost for the provision of sewage services, the Administration had included the rate of depreciation of the capital works for sewage treatment and disposal. In so doing, the Administration would, in a disguised manner, be recovering the capital cost but it would then be reneging on its commitment to finance the entire construction project. I have proposed to officials concerned that the rate of depreciation of capital works should be excluded in calculating the operating cost and the Administration has agreed to consider this. When the future Bill on sewage charging is examined by this Council, I will follow up on this.

I appreciate that the Administration has agreed, at the request of Members of this Council, to brief this Council at quarterly intervals on the progress of the construction work. The Administration has also agreed to make some amendments in the Framework Agreement to be signed between the Secretary for Works and the Director of Drainage Services to ensure that the Trading Fund will not seek an financial return and, where there is surplus, it will not be diverted to the general revenue but will only be spent on sewage services. Moreover, this Council will be consulted when changes are to be made to this Framework Agreement. I hope the Administration will take note that this Trading Fund will probably need fresh injection of funds by the Administration since if the level of sewage charges is to be lowered according to the wishes of the public, the Administration will then need to inject funds again to meet part of the operating cost.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2685

Another thing I would like to point out is that pollution in the harbour need to be reduced. Therefore apart from the SSDS, there is still another measure which need to be implemented in full scale and that is the scheme to declare water control zones. At present, only Victoria Harbour has still not been declared a water control zone. In the 1989 White Paper, the Administration pledged that Victoria Harbour would be declared a water control zone in 1991 but now it has been deferred to 1997. In other words, Victoria Harbour would only be declared a water control zone after a delay of six whole years. As the water quality of the Harbour is worsening, such a long delay is really unacceptable. This is a failure on the part of the Administration and the Administration should rectify this early and endeavour to declare Victoria Harbour a water control zone by 1995.

Lastly, I hope phase one of the SSDS can be completed before 1997 as scheduled so as to significantly improve the water quality of Victoria Harbour.

Mr President, the United Democrats of Hong Kong support the motion to set up the Sewage Service Trading Fund.

SECRETARY FOR WORKS: Mr President, thank you. I would like to respond very briefly to the main concerns raised by Members in supporting this motion.

Firstly, with regard to the monitoring of the Sewage Services Trading Fund, I am pleased to reconfirm the commitment to deliver detailed quarterly reports on Trading Fund activities to a working group of the Environmental Affairs Panel. These reports will allow Members of this Council not only to scrutinize closely the way in which the $6.8 billion Trading Fund capital is being spent but eventually the operating performance of the Trading Fund against the annual plans.

In addition, the publication of the Framework Agreement, incorporating business plans of the Trading Fund, will ensure complete transparency in the operation of the fund.

Secondly, on the question of technology options for disinfecting sewage effluent and the options for Stage II of the Strategic Sewage Disposal Scheme, the Director of Drainage Services and the Director of Environmental Protection have implemented a review for a full study of the alternative options. This will be carried out as quickly as possible and the findings of the studies will be presented to members of the Environmental Affairs Panel.

It is not, I think, true however, to say that there will not be any improvement until 1997. We are all aware that time is of the absolute essence and the Director of Drainage Services of course is moving ahead very rapidly in other aspects of the overall sewage strategy. Some of those projects will indeed bring about earlier, although perhaps localized, improvement of the condition of the harbour.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2686

Nevertheless we are taking fully into account all available technology. We are certainly in contact with international contractors who offer, and are very keen to offer, their specialist advice to us but I have to say that we must take into account not only the implementation of the capital infrastructure itself but we must also pay very close regard to the long-term recurrent costs. I am afraid that our international contractors perhaps may tend to put their priorities on putting into place a capital project. And perhaps it is on our account that we must pay particular attention to the long-term recurrent costs.

With respect to the charging for services, my colleague, the Secretary for Planning, Environment and Lands will introduce into this Council separate legislation governing charges for sewage services in the near future. At that time Members will have a further opportunity to examine the accounting practices of the Trading Fund and how these relate to the level of charges. And of course recurrent costs from the scheme will be an important factor in the level of charging that has to be applied.

I have undertaken to ensure that all relevant information arising from the Sewage Services Trading Fund will be presented to Members at that time in sufficient detail for reconciliation with the corresponding information supporting the proposed level of charges.

Finally, Mr President, on the question of depreciation we are, under the Trading Fund Ordinance, required to apply prudent commercial principles and this of course does include the question of depreciation. However, we have made it very clear that in these principles we are not seeking to recover capital cost. We must, nevertheless, be assured that we protect, into the future, the operating performance of the asset after it is completed and it is these principles that we have said we will discuss in detail with Members of this Council as part of the process of the discussion on the charges themselves.

Thank you, Mr President.

Question on the motion put and agreed to.

HOUSING ORDINANCE

THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS moved the following motion:

"That the Housing (Traffic Contraventions) (Fixed Penalty) Bylaw, made by the Housing Authority on 29 January 1994, be approved."

He said: Mr President, I move the first motion standing in my name on the Order Paper. This motion seeks to put into force the Housing (Traffic Contraventions) (Fixed Penalty) Bylaw.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2687

Following the enactment of the Housing (Amendment) Ordinance 1993 on 26 February 1993, the Housing Authority is empowered to make Bylaws for the issue of fixed penalty tickets on its estates under section 30(3) of the Housing Ordinance. Consequently, the Housing (Traffic Contraventions) (Fixed Penalty) Bylaw was made on 29 January 1994. The new Bylaw enables staff of the Housing Department to issue tickets to control the illegal parking of motor vehicles on restricted roads in public housing estates.

Thank you, Mr President.

Question on the motion proposed.

REV FUNG CHI-WOOD (in Cantonese): Mr President, the problem of illegal parking has long been existing in public housing estates, causing a serious nuisance to the residents. When vehicles are parked along the roadside, pedestrians, in crossing the road, have to emerge from between vehicles. It is very dangerous because they cannot see the oncoming traffic. Furthermore, the illegally parked vehicles will also pose a substantial hazard in obstructing emergency vehicles, such as fire engines and ambulances, from moving into housing estates to perform mission. Sometimes large goods vehicles are parked within some housing estates. The drivers start the engines for a long duration of time early in the morning when the residents are still asleep and the engine noise is so disturbing that the residents are awakened from their sleep.

Illegal parking is, in fact, very common in many housing estates and we can hear residents' complaints everywhere. In June 1992, the Transport Panel of this Council discussed the issue. The Panel proposed to amend the Housing Ordinance so that staff of the Housing Department would be empowered to issue fixed penalty tickets. Actually, even if such a measure is not adopted, the Housing Department can still tow the vehicles away, impound them or issue summons to the vehicle owners concerned. Normally Housing Department staff will impound the vehicles. Yet, the Housing Department still fails to improve the illegal parking situation with the aforesaid methods.

At present the car-parks in some housing estates are managed by private contractors. These contractors also adopt the measure of impounding the vehicles. According to my observation, these private operators are very efficient in impounding vehicles and there is almost no illegal parking in the housing estates where car-parks operated by them are located. How come the private operators can manage their car-parks so well? Obviously, where there is a will there is a way. Although we have a new by-law today for the issue of fixed penalty tickets, there still may not be remarkable improvement in stopping illegal parking if staff responsible for performing such enforcement duties are not willing to take positive action.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2688

Mr President, I would stress that illegal parking in public housing estates must be rigorously stamped out because this has caused a great misance to the residents. In quite a number of housing estates, illegal parking is normally ignored and staff of the Housing Department will only take out summonses when they receive residents' complaints. This may be due to the fact that many goods vehicles or private cars are parked illegally in the housing estates overnight but driven away in the morning. Meanwhile, as no staff of the Housing Department are on duty to issue summonses at night, illegal parking during the night is being condoned.

Apart from illegal parking, another problem in public housing estates not yet satisfactorily solved is illegal hawking. Owing to the shortage of staff in the Housing Department and their fixed working hours, illegal hawking cannot be effectively stamped out especially during the evening hours. Furthermore, unlike the Special Duties Team, staff of the Housing Department have not received any special training to deal with hawkers. The authorities concerned should, in fact, consider empowering staff of the Housing Department to issue summonses to the illegal hawkers. In doing so, the illegal hawkers can be dispelled and driven away with minimal manpower. I hope the authorities concerned will pay more attention to this point and consider issuing summonses to illegal hawkers in just the same manner as issuing summonses to litter bugs by the Special Duties Team.

Furthermore, one of the many reasons for illegal parking is the shortage of parking spaces, including those for goods vehicles, especially in the new towns. For this reason, we should rigorously curb illegal parking and, at the same time, provide car owners with sufficient parking spaces. Only with this two-pronged approach can we really tackle the problem of illegal parking.

Mr President, the United Democrats of Hong Kong support the motion. PRESIDENT: Secretary, do you wish to reply?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, thank you very much. I just wish to acknowledge briefly Rev the Honourable FUNG's remarks, which I am sure the Housing Authority and the Director of Housing will take careful note of, as to how their functions and their enforcement arrangement should be carried out. And I am sure also my colleague, the Secretary for Transport, will take account of the remarks regarding parking in the New Territories when the next regular review of the parking standard is conducted. Thank you.

Question on the motion put and agreed to.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2689 HOUSING ORDINANCE

THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS moved the following motion:

"That the Housing (Traffic) (Amendment) Bylaw 1994, made by the Housing Authority on 29 January 1994, be approved."

He said: Mr President, I move the second motion standing in my name on the Order Paper. This motion seeks to amend the Housing (Traffic) Bylaw.

When the Housing (Traffic Contraventions) (Fixed Penalty) Bylaw comes into effect on a day to be appointed by the Authority, prosecutions by summons for parking offences by motor vehicles on restricted roads in public housing estates should cease so as to avoid duplication of penalties. In this connection, the Housing (Traffic) (Amendment) Bylaw has been made to disapply the existing offence provisions in the Housing (Traffic) Bylaw.

Thank you, Mr President.

Question on the motion proposed, put and agreed to.

PUBLIC FINANCE ORDINANCE

THE SECRETARY FOR THE TREASURY moved the following motion: "That -

1. Authority is hereby given for a sum not exceeding $53,146,695,000 to be charged on the general revenue in advance of an Appropriation Ordinance for expenditure on the services of the Government in respect of the financial year commencing on 1 April 1994.

2. Subject to this Resolution, the sum so charged may be expended against the heads of expenditure, and expenditure for each such head shall be arranged in accordance with the subheads, shown in the draft Estimates of Expenditure 1994- 95 or, where such estimates are changed under the provisions of the Public Finance Ordinance as applied by section 7(2) of that Ordinance, in accordance with such estimates as so changed.

3. Expenditure in respect of any head shall not exceed the aggregate of the amounts specified in respect of each subhead in that head, by reference to percentages, in section 4(a) and 4(b).

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2690 4. Expenditure in respect of each subhead in a head shall not exceed - (a) in the case of a Recurrent Account subhead, an amount equivalent to -

(i) except where the subhead is listed in the Schedule hereto, 20% of the provision shown in respect of it in the draft Estimates;

(ii) where the subhead is listed in the Schedule hereto, that percentage of the provision shown in respect of it in the draft Estimates which is specified in relation to that subhead in the Schedule; and

(b) in the case of a Capital Account subhead, an amount equivalent to 100% of the provision shown in respect of it in the draft Estimates,

or such other amount, not exceeding the provision shown in respect of the subhead in the draft Estimates, as may in any case be approved by the Financial Secretary.

SCHEDULE [s.4]

Percentage of

provision shown

Head of Expenditure Subhead

in draft Estimates

22 Agriculture and Fisheries Department

452 Royal Society for the Prevention of Cruelty to Animals (Hong Kong)

456 World Wide Fund for Nature (Hong Kong)

25 25

28 Civil Aviation Department

43 Civil Engineering Department

31 Customs and Excise Department

170 Airport insurance 100 255 Storage of explosives 30 010 Recruiting expenses 35 292 Seizure management 45

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2691

Percentage of

provision shown

Head of Expenditure Subhead

in draft Estimates

40 Education Department 325 Direct Subsidy Scheme 30

330 Assistance to private secondary schools and bought places

350 Refund of rents and rates to kindergartens, private schools and study rooms

489 Miscellaneous educational services

30 30

30

46 General Expenses of the Civil Service

013 Personal allowances 40

50 Government Land Transport Agency

225 Traffic accident victims assistance scheme — levies

100

60 Highways Department 273 Highways maintenance 30 62 Housing Department 294 Clearance and squatter control 25

72 Independent

Commission Against Corruption

103 Rewards and special services 25

203 Expenses of witnesses, suspects and detainees

35

76 Inland Revenue Department

204 Investigation expenses 25 002 Allowances 25

149 General departmental expenses 25 189 Interest on tax reserve certificates 35 209 Special legal expenses 30

34 Internal Security: Miscellaneous

Measures

195 Defence Costs Agreement: cash contribution

30

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2692

Percentage of

provision shown

Head of Expenditure Subhead

90 Labour Department 280 Contribution to the Occupational Safety and Health Council

91 Lands Department 221 Clearance of Crown land — ex gratia allowances

in draft Estimates 25

50

92 Legal Department 234 Court costs 61

243 Hire of legal services and related

25

professional fees

120 Pensions 015 Civil, judicial service and police

30

pension benefits and compensation

017 Surviving spouses' and children's

30

pensions, widows' and orphans'

pensions and increases

026 Employees' compensation 30

118 Planning Department 149 General departmental expenses 30 130 Printing Department 002 Allowances 25

160 Radio Television Hong Kong

102 Technical Services Agreement 30

170 Social Welfare Department

176 Criminal and law enforcement injuries compensation

25

177 Emergency relief 100

179 Comprehensive social security assistance scheme

25

180 Social security allowance scheme 25

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2693

Percentage of

provision shown

Head of Expenditure Subhead

184 Traffic accident victims assistance

scheme

in draft Estimates 40

412 Refunds of rates 30

176 Subventions: Miscellaneous

437 Hong Kong — Japan Business Co operation Committee

25

446 Duty Lawyer Service 25

475 Outward Bound Trust of Hong Kong

25

487 Subventions for arts activities 30

502 Hong Kong Archaeological Society

503 Subventions to voluntary agency camps

504 Hong Kong Council on Smoking and Health

100 25

25

177 Subventions: Non Departmental Public Bodies

521 Skills centres for the disabled 25 429 Consumer Council 25

441 Hong Kong Productivity Council 25 443 Hong Kong Tourist Association 25

444 Hong Kong Trade Development Council

25

520 Vocational Training Council 25

178 001 Salaries 55 Technical Education and Industrial

Training Department 002 Allowances 50

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2694

Percentage of

provision shown

Head of Expenditure Subhead

in draft Estimates

186 Transport Department 449 Road Safety Association 25 188 Treasury 002 Allowances 30 163 Write-offs 50

187 Agents' commission and expenses 80

190 Other miscellaneous items 100

191 Payment to Cross-Harbour Tunnel Company Limited

100

190 Universities and Polytechnics

192 Refunds of revenue 100 002 Allowances 25

149 General departmental expenses 50 169 Visitation 35

492 Grants to universities,

polytechnics, Baptist College and Lingnan College

496 Refund of rates — universities, polytechnics, Baptist College and Lingnan College

30 25

194 Water Supplies Department

223 Purchase of water 25

He said: Mr President, I move the motion standing in my name on the Order Paper.

The purpose of this motion is to seek funds on account to enable the Government to carry on existing services between the start of the financial year on 1 April 1994 and the enactment of the Appropriation Bill.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2695

The funds on account sought under each subhead have been determined in accordance with paragraph four of the resolution, by reference to percentages of the provision shown in the draft Estimates. As the draft Estimates are changed from time to time, by the Finance Committee or under delegated powers, the provision to which the percentages are applied will also change. Thus the provision on account under each head is not constant but may vary, with every increase being matched by an equal decrease. The initial provision on account under each head is shown in a footnote to this speech. The aggregate total under all heads is fixed, however, at $53,146,695,000 and cannot be exceeded without the approval of this Council.

The resolution also enables the Financial Secretary to vary the funds on account in respect of any subhead, provided that these variations do not cause an excess over the amount of provision entered for that subhead in the draft Estimates or an excess over the amount of funds on account for the head.

A vote on account warrant will be issued to the Director of Accounting Services authorizing him to make payments up to the amount specified in this motion and in accordance with its conditions. The vote on account will be subsumed upon the enactment of the Appropriation Bill, and the general warrant issued after the enactment of the Appropriation Bill will replace the vote on account warrant and will be effective from 1 April 1994.

Mr President, I beg to move.

Question on the motion proposed, put and agreed to.

Footnote

Head of Expenditure

Amount shown in the draft Estimates

Initial

amount of provision on account

$'000 $'000

21 His Excellency the Governor's Establishment ........................ 26,556 5,312 22 Agriculture and Fisheries Department .................................... 419,791 94,412 25 Architectural Services Department ......................................... 984,135 197,549 24 Audit Department ................................................................... 83,536 17,160 23 Auxiliary Medical Services .................................................... 42,206 8,518 82 Buildings Department............................................................. 237,010 48,042

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2696

Amount

shown in

the draft

Initial

amount of provision

Head of Expenditure

Estimates

on account

$'000 $'000

26 Census and Statistics Department........................................... 301,462 61,206 27 Civil Aid Services................................................................... 58,819 12,404 28 Civil Aviation Department...................................................... 430,866 99,252 43 Civil Engineering Department ................................................ 508,039 110,192 30 Correctional Services Department .......................................... 1,744,507 353,662 31 Customs and Excise Department ............................................ 936,299 210,283 37 Department of Health ............................................................. 1,940,196 411,773 39 Drainage Services Department ............................................... 645,446 138,011 40 Education Department ............................................................ 15,204,462 3,356,166 42 Electrical and Mechanical Services Department..................... 920,292 230,735 44 Environmental Protection Department.................................... 1,203,519 363,263 45 Fire Services Department........................................................ 1,667,947 398,035 46 General Expenses of the Civil Service.................................... 3,726,554 834,936 166 Government Flying Service .................................................... 139,541 63,629 48 Government Laboratory.......................................................... 123,726 34,374 50 Government Land Transport Agency...................................... 126,832 93,083 51 Government Property Agency ................................................ 1,547,730 309,546 52 Government Secretariat .......................................................... 709,172 149,745

53 Government Secretariat: City and New Territories Administration........................................................................

659,667 148,487

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2697

Head of Expenditure

Amount shown in the draft Estimates

Initial

amount of provision on account

$'000 $'000

29 Government Secretariat: Civil Service Training Centre............ 81,973 16,475 96 Government Secretariat: Overseas Offices ............................... 183,890 44,142

56 Government Secretariat: Planning, Environment and Lands Branch and Works Branch..............................................

226,113 67,289

55 Government Secretariat: Recreation and Culture Branch ......... 93,862 29,710 58 Government Supplies Department ............................................ 129,880 25,976 60 Highways Department .............................................................. 1,074,643 265,691 61 Hospital Services Department................................................... 117,145 23,429 62 Housing Department................................................................. 439,756 109,939 70 Immigration Department........................................................... 1,281,776 257,954 72 Independent Commission Against Corruption .......................... 446,204 90,677 73 Industry Department ................................................................. 295,794 229,718 74 Information Services Department ............................................. 187,048 40,054 47 Information Technology Services Department.......................... 313,802 62,958 76 Inland Revenue Department ..................................................... 793,370 167,822 78 Intellectual Property Department.............................................. 45,155 9,579 34 Internal Security: Miscellaneous Measures .............................. 1,478,648 444,419

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2698

Amount

shown in

the draft

Initial

amount of provision

Head of Expenditure

Estimates

on account

$'000 $'000

80 Judiciary ................................................................................. 494,609 106,059 90 Labour Department................................................................. 352,093 71,165 91 Lands Department................................................................... 885,119 191,567 94 Legal Aid Department ............................................................ 280,700 56,140 92 Legal Department ................................................................... 521,941 119,804 112 Legislative Council Commission............................................ 193,547 42,259 98 Management Services Agency................................................ 30,263 6,150 100 Marine Department................................................................. 630,160 174,160 106 Miscellaneous Services........................................................... 8,160,741 1,934,346

114 Office of the Commissioner for Administrative Complaints..............................................................................

16,103 3,221

113 Office of the Telecommunications Authority.......................... 87,717 25,926 116 Offical Receiver's Office ........................................................ 69,137 14,668 120 Pensions.................................................................................. 5,996,570 1,743,853 118 Planning Department .............................................................. 220,219 72,723 121 Police Complaints Committee ................................................ 6,540 1,308 122 Police: Royal Hong Kong Police Force .................................. 8,208,915 1,720,379 126 Post Office .............................................................................. 2,131,861 433,053 130 Printing Department................................................................ 160,620 39,426

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2699

Head of Expenditure

Amount shown in the draft Estimates

Initial

amount of provision on account

$'000 $'000

136 Public Service Commission .................................................... 12,878 2,576 160 Radio Television Hong Kong.................................................. 332,205 79,276 162 Rating and Valuation Department ........................................... 176,608 35,322 163 Registration and Electoral Office............................................ 92,473 18,698 167 Royal Hong Kong Regiment (The Volunteers) ....................... 37,757 7,552 168 Royal Observatory.................................................................. 120,259 27,559 170 Social Welfare Department ..................................................... 9,352,792 2,184,172

174 Standing Commission on Civil Service Salaries and Conditions of Service .............................................................

175 Standing Committee on Disciplined Services Salaries and Conditions of Service.......................................................

8,994 1,799 4,536 908

173 Student Financial Assistance Agency ..................................... 905,564 181,113 176 Subventions: Miscellaneous.................................................... 214,926 66,213 177 Subventions: Non-Departmental Public Bodies...................... 17,010,067 3,832,000

178 Technical Education and Industrial Training

Department .............................................................................

653 358

180 Television and Entertainment Licensing Authority................. 36,290 7,746 110 Territory Development Department ........................................ 177,135 35,427 181 Trade Department ................................................................... 191,704 39,664 186 Transport Department ............................................................. 430,303 110,660

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2700

Amount

shown in the

draft

Initial

amount of provision

Head of Expenditure

Estimates

on account

$'000 $'000

188 Treasury............................................................................... 254,268 74,966 190 Universities and Polytechnics.............................................. 7,539,946 2,262,682

194 Water Supplies Department ................................................. 3,079,170 686,190

110,002,752 26,046,695

184 Transfers to Funds ............................................................... 27,100,000 27,100,000 Total ...................................... 137,102,752 53,146,695

BANKRUPTCY ORDINANCE

THE SECRETARY FOR FINANCIAL SERVICES moved the following motion:

"That the Bankruptcy (Fees and percentages) (Amendment) Order 1994, made by the Chief Justice on 23 February 1994, be approved."

He said: Mr President, I move the first motion standing in my name on the Order Paper.

The Bankruptcy (Fees and Percentages) (Amendment) Order 1994 was made by the Chief Justice on 23 February. It increases certain fees payable to the Registrar of the Supreme Court in relation to proceedings in bankruptcy and the related search, certification and photocopying of documents.

It is government policy that fees should in general be set at levels sufficient to recover the full cost of providing the services. These fees were last reviewed in 1992. I now propose to increase the fees by about 10% in line with the increase in cost. The revised fees, if approved, will come into operation on 1 April 1994.

Mr President, I beg to move.

Question on the motion proposed, put and agreed to.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2701 COMPANIES ORDINANCE

THE SECRETARY FOR FINANCIAL SERVICES moved the following motion:

"That the Companies (Fees and Percentages) (Amendment) Order 1994, made by the Chief Justice on 23 February 1994, be approved."

He said: Mr President, I move the second motion standing in my name on the Order Paper.

The Companies (Fees and Percentages) (Amendment) Order 1994 was made by the Chief Justice on 23 February. It increases certain fees payable to the Registrar of the Supreme Court in relation to companies and companies winding-up.

It is government policy that fees should in general be set at levels sufficient to recover the full cost of providing the services. These fees were last reviewed in 1992. I now propose to increase the fees by about 10% in line with the increase in cost. The revised fees, if approved, will come into operation on 1 April 1994.

Mr President, I beg to move.

Question on the motion proposed, put and agreed to.

First Reading of Bills

THE LEGISLATIVE COUNCIL COMMISSION BILL

MINOR EMPLOYMENT CLAIMS ADJUDICATION BOARD BILL AMUSEMENT RIDES (SAFETY) BILL

TOWN PLANNING (AMENDMENT) BILL 1994

LEGISLATIVE COUNCIL (ELECTORAL PROVISIONS) (AMENDMENT) BILL 1994

Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2702 Second Reading of Bills

THE LEGISLATIVE COUNCIL COMMISSION BILL

THE CHIEF SECRETARY moved the Second Reading of: "A Bill to establish a Legislative Council Commission, and to provide for matters ancillary to and connected with such purpose."

She said: Mr President, I move that the Legislative Council Commission Bill be read a Second time.

The Bill seeks to establish by statute an independent Legislative Council Commission and to empower it to act in all financial and administrative matters relating to the provision of support services for Legislative Council.

In his address to this Council in October 1992, the Governor invited proposals from the Council on how the Administration might assist Members to develop financial and managerial autonomy in organizing their administration and support facilities. Subsequently, under your chairmanship, Mr President, a working group drew up a list of recommendations for the reorganization of the Legislative Council Secretariat. After consulting the Executive Council on these, the Administration agreed that a statutory Legislative Council Commission should be established to provide the necessary legal framework to enable this Council to direct its own secretariat. Since then, we have been working closely with this Council in the drafting of this Bill and in the implementation of other agreed proposals.

During this exercise, the Administration's guiding principle has been that the future Legislative Council Commission should be given the managerial and financial autonomy it needs to organize its own administration and support facilities. However, as the Commission will be financed from public funds, the Administration also has to ensure that it is subject to the same degree of financial control and accountability as other publicly funded organizations. The provisions in the Bill have been drawn up with these two principles in mind.

The opportunity is also taken to amend in the schedule of the Bill the references in various Ordinances to the Clerk to the Legislative Council and the re-titled Clerk to the Executive Council, so that the different roles and functions performed by these two officials can be clearly specified.

Bill referred to the House Committee pursuant to Standing Order 42(3A).

MINOR EMPLOYMENT CLAIMS ADJUDICATION BOARD BILL

THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: "A Bill to establish a Board having limited jurisdiction to adjudicate minor employment claims, to be known as the Minor Employment Claims

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Adjudication Board, and to make provision for its jurisdiction, procedure and practice and for related matters."

He said: Mr President, I move the Second Reading of the Minor Employment Claims Adjudication Board Bill 1994.

The Bill seeks to establish a Minor Employment Claims Adjudication Board in the Labour Department to determine employment claims which are below a specified amount.

At present, the waiting time for claims to be heard at the Labour Tribunal is unduly long. This has been a subject of complaint from claimants and labour unions for some time. The Legislative Council Panel on Manpower has also expressed concern and asked for improvements.

We now propose to establish a Minor Employment Claims Adjudication Board in the Labour Department to help relieve the heavy workload of the Labour Tribunal. This proposal is intended to be a quick, simple and inexpensive service.

The Board will take over the jurisdiction of the Labour Tribunal in respect of claims involving not more than five claimants for a sum of money not exceeding $5,000 per claimant. This maximum amount of $5,000 will be subject to regular review. It is estimated that about 1 300 cases will be processed by the Board each year and this represents roughly one-third of the existing workload of the Labour Tribunal.

The procedures to be followed by the board in hearing claims will be as simple and informal as possible. Any minor claims arising from disputes of statutory or contractual rights of employment for which settlement cannot be achieved through conciliation of the Labour Relations Service will be referred to the Board for determination. The board shall be separate from, and independent of, the Labour Relations Service.

Senior Labour Officers with adequate experience in labour laws and labour relations in Hong Kong would be appointed as adjudication officers. Before taking up the appointment, they will be provided with training, especially in the legal aspect of the job.

Hearings will be conducted in public, and in an informal manner. No legal representation on either side will be allowed.

The adjudication officer may on his own motion or on the application of a party review an award made by the Board within 14 days. Appeal against the award of the Board shall lie with the High Court on the ground that the award is erroneous on a point of law or outside the jurisdiction of the Board.

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A party may register the award in his favour in the District Court and, and upon registration, such award becomes for all purposes a judgement of the District Court and may be enforced accordingly.

It is estimated that the Board will come into operation within six months after the legislation is passed.

Bill referred to the House Committee pursuant to Standing Order 42(3A).

AMUSEMENT RIDES (SAFETY) BILL

THE SECRETARY FOR RECREATION AND CULTURE moved the Second Reading of: "A Bill to provide for the design, manufacture and installation of amusement rides, the regulation of the operation, maintenance and examination of amusement rides, the avoidance of dangerous conduct in relation thereto, and for matters ancillary thereto or connected therewith."

He said: Mr President, I move the Second Reading of the Amusement Rides (Safety) Bill.

This Bill seeks to introduce comprehensive control over the design, installation, operation and maintenance of amusement rides. Amusement rides are power-driven devices ridden by the public for amusement purposes. Examples are those devices installed in large amusement parks such as the Ocean Park and the Lai Chi Kok Amusement Park, but they also cover kiddie rides put up at children entertainment centres or at fun fairs. However, a more relaxed set of requirements will be applied to the less sophisticated machines and controls used for kiddie rides.

The enforcement of this piece of safety legislation will be carried out by the Director of Electrical and Mechanical Services (DEMS).

At present, the DEMS exercises control over the safety of amusement rides through conditions imposed in the permits issued by the Commissioner for Television and Entertainment Licensing (CTEL) under the Places of Public Entertainment Ordinance (PPEO). Though effective, this arrangement is unsatisfactory as the permit issued by CTEL is intended for the regulation of the content of the entertainment and not the equipment used. Thus the legal basis of these conditions is questionable. Furthermore, there is a separate proposal to overhaul the Places of Public Entertainment Ordinance to totally abolish the permit system. Thus, this Bill is needed to put in place proper legal control over the safety of amusement rides.

I would now like to briefly describe the main provisions of the Bill.

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Clauses 4 to 9 regulate the installation of new rides. Owners will be required to obtain prior approval from the DEMS over the design, method and programme of installation before installation work can commence.

The operation, maintenance, repair and alteration of amusement rides are governed by clauses 10 to 16. Owners of amusement rides are required to maintain their rides in a safe condition and to carry out repairs and alterations specified by the Director.

Clauses 17 to 22 prohibit conducts which might endanger persons using, operating or being in the vicinity of a ride.

Under the Bill, the DEMS or a public officer authorized by him is empowered to enter premises to inspect the installation and the safety of amusement rides. The DEMS, or any police officer, can require the closure of a ride for safety reasons.

An appeal board will be established under clause 25 to hear appeals concerning decisions made by the DEMS. The appeal panel will comprise professional engineers to be nominated by the Hong Kong Institute of Engineers and representatives of amusement ride owners.

The Places of Public Entertainment Ordinance will be amended consequentially to exempt owners of amusement rides from the requirement to obtain a permit under that piece of legislation.

We have consulted amusement ride operators and the Hong Kong Institute of Engineers on the Bill. They have expressed full support in the interest of public safety.

To facilitate the operation of the legislation, a set of fees regulations and safety regulations will be made by the Financial Secretary and the Secretary for Recreation and Culture respectively after of the Bill is passed.

Thank you, Mr President.

Bill referred to the House Committee pursuant to Standing Order 42(3A).

TOWN PLANNING (AMENDMENT) BILL 1994

THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS moved the Second Reading of: "A Bill to amend the Town Planning Ordinance."

He said: Mr President, I move the Second Reading of the Town Planning (Amendment) Bill. The main purpose of the Bill is to introduce a transitional provision to the Ordinance so as to enable planning applications submitted under

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Development Permission Area (DPA) plans to continue to be processed when DPA plans are replaced by Outline Zoning Plans (OZPs).

The Ordinance stipulates that a DPA plan is effective for three years after first gazetting and its effect will lapse when it is replaced by an OZP. Thirtyfive DPA plans have been gazetted so far. Of these, 30 DPA plans which were gazetted on 12 July 1991 will be replaced by OZPs before mid-July this year.

The Attorney General's Chambers have advised that when a DPA plan ceases to have effect, any section 16 application made under it cannot be considered or reviewed by the Town Planning Board since the Board's powers to consider or review the application derive from the DPA plan. Similarly, an applicant cannot appeal against the Board's decision on review under section 17 if the OZP replaces the DPA plan before the applicant lodges his appeal. We expect a number of section 16 applications which are being processed by the Board or by the Town Planning Appeal Board to be outstanding when these DPA plans are replaced by OZPs. In the circumstances, in fairness to the applicants and to maintain reasonable continuity in the work of the Board and the Appeal Board, we propose to introduce a transitional provision to allow for the continuation of planning application, review and appeal processes, until they have been exhausted.

We are also taking this opportunity to clarify what the power of the Planning Authority is under section 23 of the Ordinance. Under this section the Authority may enter a site on which there is unauthorized development and take whatever steps he considers necessary to ensure the discontinuance of such development, and to prevent adverse effects or reinstate the site concerned. In carrying out these functions, the Authority may have to take possession of, remove, detain and subsequently dispose of property remaining on land, such as containers, abandoned vehicles, and so on. However, the Ordinance does not state expressly that the Authority has the power to take such action before carrying out the functions, nor does it lay down procedures. It is therefore necessary to clarify what the power of the Authority is under section 23 and to provide for the making of regulations by the Governor in Council under section 14 to lay down the necessary procedures for the exercise of this power.

Mr President, the proposed amendments set out in the Bill are urgently required because, as I have said, 30 DPA plans are due to be replaced by OZPs before mid-July this year. Since enforcement action against unauthorized development is being stepped up, early clarification of the Planning Authority's power is also required. I therefore commend the Bill to Members for their favourable and speedy consideration.

Thank you, Mr President.

Bill referred to the House Committee pursuant to Standing Order 42(3A).

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2707

LEGISLATIVE COUNCIL (ELECTORAL PROVISIONS) (AMENDMENT) BILL 1994

THE SECRETARY FOR CONSTITUTIONAL AFFAIRS moved the Second Reading of: "A Bill to amend the Legislative Council (Electoral Provisions) Ordinance."

He said: Mr President, I move that the Legislative Council (Electoral Provisions) (Amendment) Bill 1994 be read the Second time.

This Bill sets out the Administration's proposed arrangements for the 1995 Legislative Council functional constituency and election committee elections. The aim of these proposals is to put in place electoral arrangements which are open and fair, consistent with the provisions of the Joint Declaration and the Basic Law, and acceptable to the people of Hong Kong.

On 24 February, this Council passed the first stage Bill on the more immediate issues relating to the 1994-95 elections. The time has now come for us to consider legislation for the remaining and more complex elements of the 1995 Legislative Council elections. Such legislation needs to be enacted before this Council rises for the summer recess in order to allow us to put in place the various practical preparations for the elections.

For instance, only after the primary legislation is passed can the Boundary and Election Commission get on with the preparation of all the subsidiary legislation on the registration of voters relating to the existing as well as the new functional constituencies. This would take about four months. The Commission will then have to embark on the mammoth task of not just reallocating electors to the 20 newly created geographical constituencies but also helping all those eligible to register as voters in the appropriate functional constituencies. The time-table is very tight as the voter register will close on 1 July 1995 for the 1995 Legislative Council elections. As Members can see, we must press ahead as quickly as we possibly can.

One of our proposals on the existing functional constituencies is to replace corporate voters with individual voters who are in control of the management of the companies or organizations which make up the particular functional constituencies. The franchise of some existing functional constituencies will also be broadened, for example, the inclusion of school managers in the Teaching Functional Constituency and members of the Hong Kong Social Welfare Personnel Registration Council into the Social Services Functional Constituency.

The Bill provides that in 1995 there will be nine new functional constituency seats. Our proposal is that they should be based on broad industrial sectors which, together with the existing functional constituencies, will encompass all those eligible to register as voters in our entire workforce of over 2.7 million. In other words, our proposals will allow all eligible working persons a vote in the functional constituency election. Obviously, such a

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broadening of the franchise will strengthen the credibility of our functional constituency system as a whole.

The second main proposal in this Bill is the establishment of an Election Committee to elect 10 Members to this Council in 1995. The Bill stipulates that the Election Committee will comprise elected district board members and that candidature for the 10 seats is open to all persons who are on the General Electoral Roll and not just members of the Election Committee. Since all district board members are themselves elected, we believe this arrangement will ensure that the Election Committee would be one genuinely representative of the community.

Thank you, Mr President.

Bill referred to the House Committee pursuant to Standing Order 42(3A).

LEGISLATIVE COUNCIL (POWERS AND PRIVILEGES) (AMENDMENT) BILL 1994

Resumption of debate on Second Reading which was moved on 2 February 1994 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.

Bill committee to a Committee of the whole Council pursuant to Standing Order 43(1). PUBLIC HEALTH AND MUNICIPAL SERVICES (AMENDMENT) BILL 1994 Resumption of debate on Second Reading which was moved on 2 February 1994 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.

Bill committee to a Committee of the whole Council pursuant to Standing Order 43(1).

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2709 COPYRIGHT (AMENDMENT) BILL 1994

Resumption of debate on Second Reading which was moved on 2 February 1994 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).

Committee Stage of Bills

Council went into Committee.

LEGISLATIVE COUNCIL (POWERS AND PRIVILEGES) (AMENDMENT) BILL 1994

Clauses 1 to 5 were agreed to.

PUBLIC HEALTH AND MUNICIPAL SERVICES (AMENDMENT) BILL 1994 Clauses 1 to 11 were agreed to.

COPYRIGHT (AMENDMENT) BILL 1994

Clauses 1 to 4 were agreed to.

Clause 5

SECRETARY FOR RECREATION AND CULTURE: Mr Chairman, I move that the clause specified be amended as set out in the paper circulated to Members.

It is a minor drafting amendment necessary to clarify that Schedule 1 mentioned in item 13 of Schedule 2 of the Bill refers to Schedule 1 of the Copyright Ordinance.

Mr Chairman, I beg to move.

HONG KONG LEGISLATIVE COUNCIL — 9 March 1994 2710 Proposed amendment

Clause 5

That clause 5 be amended, in the proposed Schedule 2, in item 13, in section 14A(11), in paragraph (ii) and (v) of the definition of "cable programme service", by adding "to the Copyright Ordinance (Cap. 39)" after "Schedule 1".

Question on the amendment proposed, put and agreed to.

Question on clause 5, as amended, proposed, put and agreed to.

Council then resumed.

Third Reading of Bills

THE ATTORNEY GENERAL reported that the

LEGISLATIVE COUNCIL (POWERS AND PRIVILEGES) (AMENDMENT) BILL 1994 and

PUBLIC HEALTH AND MUNICIPAL SERVICES (AMENDMENT) BILL 1994 had passed through Committee without amendment and the

COPYRIGHT (AMENDMENT) BILL 1994

had passed through Committee with an amendment. 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 7 March. 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.

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EARLY CONSTRUCTION OF THE NORTHWEST NEW TERRITORIES RAILWAY

MR ALFRED TSO moved the following motion:

"As the early construction of the Northwest New Territories Railway and its extension to Tuen Mun will substantially ease traffic congestion throughout the New Territories West and the New Territories South and will be conducive to China-Hong Kong economic development, this Council urges the Government to consider taking immediate action to work out a timetable for the construction of the project and to set aside the necessary funds or make other appropriate financial arrangements for its construction in order to ensure that the project will not be delayed."

MR ALFRED TSO (in Cantonese): Mr President, I move the motion standing in my name in the Order Paper.

Be it viewed from the macro angle of China-Hong Kong economic and transport development, or viewed from the angle of providing a long-term transport link between northwest New Territories and the urban areas, I believe that Members of this Council and the general public, as well as the Government, will agree that the proposed Northwest New Territories Railway will bring innumerable benefits and must therefore be built as soon as possible. Regrettably, however, such a railway, sought by the public for many years, remains on the drawing board to this day.

In Tuen Mun last Sunday, my office, jointly with the northwest New Territories office of the Liberal Democratic Federation, sponsored a seminar on the proposed Northwest New Territories Railway. One local person present at the seminar called this railway project "nothing but a mirage." Mr President, there was no way I could respond to him. For I myself do not understand why the Government, while reiterating that a Northwest New Territories Railway will be very important for Hong Kong, is dragging its feet in making a decision to go ahead and build it.

Let us count the benefits of the proposed Northwest New Territories Railway. Let us begin with its benefits for freight transport between China and Hong Kong. A Kowloon Canton Railway Corporation (KCRC) study has found that 75% of the 6 million standard 20-foot containers leaving China annually do so via Hong Kong. This means that 4.5 million standard containers a year leave China via Hong Kong, a volume already equal to more than 50% of the throughput of the Kwai Chung container port. China will continue to develop container transport and the Beijing-Kowloon Railway linking Beijing and Shenzhen will be opened to traffic next year, sooner than planned. It is estimated that the number of containers coming annually into Hong Kong from China will have gone up to 6.2 million by the year 2001. KCR, which is used mainly to move passengers, will not be able to cope with the rising volume of freight transport between China and Hong Kong. The Northwest New

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Territories Railway, if and when built, will precisely be the answer, serving as a major artery for China-Hong Kong freight transport. By the year 2010, it will be able to handle 1 million standard containers annually. It will be a tremendous help to Hong Kong in keeping the latter's position as an important entrepot in China trade.

Using a railway to move containers directly to the Kwai Chung container port will ease the traffic congestion now plaguing the area around the port. Does the Government intend to sit idly by as the problem worsens and threatens the viability of Hong Kong? Will it not recognize the importance of the proposed Northwest New Territories Railway? Will it not recognize this until everything becomes paralyzed in the area around the container port, until an electronic road toll system must be activated to control the number of container trucks entering the container port area?

The proposed Northwest New Territories Railway, if and when built, will perform another function. It will be the second cross-border passenger railway between China and Hong Kong. The KCR last year carried 38 million cross-border passengers, at the rate of 100 000 passengers a day. The through train service between Hong Kong and Guangzhou carried 3 million passengers last year. While the Lo Wu Station is being expanded and the project will be completed next year, the saturation point of its expanded capacity is expected to be reached in 1996. The KCRC estimates that the number of cross-border passengers will continue to increase by 8% or 9% a year and that 78 million passengers will be crossing the border at Lo Wu in the year 2001. This is twice the present number. The 100 million mark will be hit in the year 2010. I shudder to imagine what the scene of huge crowds of cross-border passengers would be when the time comes, unless the proposed Northwest New Territories Railway is built now. Lines of passengers waiting to cross into China might stretch all the way from Lo Wu to Hung Hom.

Now I would like to draw Members' attention to the western New Territories and to make them understand Tuen Mun, where I grew up as an indigenous inhabitant. The population of the western NT has exceeded 750 000, with 450 000 of them living in Tuen Mun. These are the pioneers of the new towns in Tuen Mun, but the Government has never paid attention to, or taken care of, them.

At present, 400 000 passengers a day have to be moved between the western NT and the urban areas. It is estimated that, in the year 2011, when the population of the western NT will be 900 000, the daily number of passengers requiring transport between there and the urban areas will be between 600 000 and 900 000. According to a KCRC study, about 200 buses an hour are moving on Tuen Mun Highway in either direction. The rate will go up to 350 buses an hour by the year 2011 if the proposed Northwest New Territories Railway is not built.

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The people of Tuen Mun have once again been made the sacrificial lamb in the Government's plan for the proposed Northwest New Territories Railway. I really do not understand why both Route 3 and the proposed Northwest New Territories Railway must end at Yuen Long, while the transport needs of the 450 000 people of Tuen Mun are being ignored.

The Government's explanation is that it will cost an extra $6 billion to extend the proposed Northwest New Territories Railway's Tin Shui Wai branch line to Tuen Mun and that the train service along this extension will affect the business of the Light Rail Transport (LRT). When this Council debated the Railway Development Study on 7 July last year, many Members accused the Government of trying to win its case more by high-handed pressure than by persuasion. Members said that plans for the proposed Northwest New Territories Railway should accommodate the needs of the people of Tuen Mun. They noted that, because the proposed Northwest New Territories Railway will be substantively different from LRT, which is a local transit system, the business of the latter is not likely to be affected. Members on that occasion showed up the Government's mistakes. I thank them on behalf of the people of Tuen Mun.

Last Sunday, at a forum held in my office, all participating local people said that they wanted the proposed Northwest New Territories Railway to be extended to Tuen Mun. Being their representive in this Council, I really must express this wish on their behalf. The Government should sober up and realize that the traffic and transport problems now plaguing Tuen Mun are the result of none other than its own short-sighted policy of the past. In terms of city development, it is the immutable law of history that railways lead to local economic development. Is this not known to our high officials in Government? I hope that the Government will wake up today to its mistakes of yesterday and stop being over particular about cost-effectiveness. The KCRC estimates that it will take only 20 minutes to travel from Yuen Long to downtown Kowloon by the proposed Northwest New Territories Railway and that it will take only 30 minutes to travel from northern Tuen Mun to Jordan. The people of Tuen Mun are really anxious that the day should arrive soon.

The Government will perhaps say that the Financial Secretary's Budget for 1994-95, delivered recently, has already made clear that the $3.7 billion contract for Ting Kau Bridge will be awarded in August this year and that the contracted works will be completed before the end of 1997. In addition, the Government says that it hopes that the operating franchise for the country park section of Route 3 will be approved and awarded before the end of this year and that the project will be completed before the end of 1998. The Government thinks that these projects will solve the western NT's traffic and transport problems. I do not think so.

If the Government really thinks so, it cannot be more wrong. Even if Route 3 can open before the end of 1998, its capacity, in the Government's own estimate, will reach the saturation point by the year 2011. So there is really a

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pressing need for the proposed Northwest New Territories Railway to be built and it should be built as soon as possible.

I would like to point out something else, which is the need to match a Northwest New Territories Railway with the development of Shenzhen. An academic on transport services tells me that Hong Kong's economic development is now inalienably linked to the economic development of Shenzhen and of the Pearl River Delta. Together, Hong Kong, Shenzhen and the Pearl River Delta will constitute a South China economic circle. Their transport infrastructures should be synchronized and mutually matching. Regrettably, the planning of the proposed Northwest New Territories Railway is done in an ivory tower. The Government is once more sick with border-phobia. It is totally ignoring the need to co ordinate with the other side of the Shenzhen River. In the opinion of the same academic as well as the opinion of officials of the Planning Bureau of the Shenzhen Municipal Government, whom I met, the city centre of Shenzhen will be shifting westwards. If the proposed Northwest New Territories Railway joins Wong Kong at Lok Ma Chau, Shenzhen's urban planning and construction will be affected. Therefore, Mr President, I am afraid that, if the Government does not communicate with Shenzhen, the proposed Northwest New Territories Railway will be just a big white elephant if and when it is built.

Mr President, everybody should know that the proposed Northwest New Territories Railway will benefit not only the development of Northwest NT but also the people living in the areas along its entire length, including Tsuen Wan, Kwai Chung, Tsing Yi, western Kowloon and eastern NT. Regrettably, the Financial Secretary merely made a passing reference to such an important infrastructure project in his Budget speech for the new financial year. He announced no firm decision about it.

Because the Northwest New Territories Railway project straddles 1997, there must be Sino-British consultation on the railway's operating franchise and on financial arrangements for its construction. This makes me worry. Sino-British relations are now at a low ebb because of the quarrel over the issue of Hong Kong's political system. The Sino-British consultation process may be impeded. This will delay the commencement of construction work.

Honourable Members, in moving this motion, my purpose is to urge the Government to raise the priority of the proposed Northwest New Territories Railway and to lay down a timetable for the construction of the project and to set aside the necessary funds or make other appropriate financial arrangements for its construction so that the project will not be delayed.

Mr President, with these remarks, I move the motion.

Question on Mr Alfred TSO's motion proposed.

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