HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3309 OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 27 April 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 MICHAEL LEUNG MAN-KIN, 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 HUI YIN-FAT, O.B.E., J.P.

THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P.

DR THE HONOURABLE DAVID LI KWOK-PO, O.B.E., LL.D., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P.

THE HONOURABLE PANG CHUN-HOI, M.B.E.

THE HONOURABLE SZETO WAH

THE HONOURABLE TAM YIU-CHUNG

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

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

THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P.

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

3310 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, O.B.E., J.P. THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P.

DR THE HONOURABLE LEONG CHE-HUNG, O.B.E., J.P. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E.

THE HONOURABLE PETER WONG HONG-YUEN, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP

THE HONOURABLE 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 EMILY LAU WAI-HING

THE HONOURABLE LEE WING-TAT

THE HONOURABLE ERIC LI KA-CHEUNG, J.P.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3311 THE HONOURABLE FRED LI WAH-MING

THE HONOURABLE MAN SAI-CHEONG

THE HONOURABLE STEVEN POON KWOK-LIM

THE HONOURABLE HENRY TANG YING-YEN, J.P.

THE HONOURABLE TIK CHI-YUEN

THE HONOURABLE JAMES TO KUN-SUN

DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG

DR THE HONOURABLE YEUNG SUM

THE HONOURABLE HOWARD YOUNG, J.P.

THE HONOURABLE ZACHARY WONG WAI-YIN

DR THE HONOURABLE TANG SIU-TONG, J.P.

THE HONOURABLE CHRISTINE LOH KUNG-WAI

THE HONOURABLE ROGER LUK KOON-HOO

THE HONOURABLE ANNA WU HUNG-YUK

THE HONOURABLE JAMES TIEN PEI-CHUN, O.B.E., J.P.

THE HONOURABLE ALFRED TSO SHIU-WAI

ABSENT

THE HONOURABLE VINCENT CHENG HOI-CHUEN, O.B.E., J.P.

IN ATTENDANCE

MR MICHAEL SUEN MING-YEUNG, J.P.

SECRETARY FOR HOME AFFAIRS

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

SECRETARY FOR SECURITY

3312 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

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 GORDON SIU KWING-CHUE, J.P.

SECRETARY FOR ECONOMIC SERVICES

MR MICHAEL DAVID CARTLAND, J.P.

SECRETARY FOR FINANCIAL SERVICES

MR LAM WOON-KWONG, J.P.

SECRETARY FOR EDUCATION AND MANPOWER

MR KWONG KI-CHI, J.P.

SECRETARY FOR THE TREASURY

THE CLERK TO THE LEGISLATIVE COUNCIL

MR RICKY FUNG CHOI-CHEUNG

THE DEPUTY SECRETARY GENERAL

MR LAW KAM-SANG

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3313 Papers

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

Subsidiary Legislation L.N. No.

Dutiable Commodities (Amendment) Regulation

1994 ----------------------------------------------------------------------------------- 226/94

Firearms and Ammunition (Amendment)

Regulation 1994 --------------------------------------------------------------------- 227/94

Firearms and Ammunition (Storage Fees)

(Amendment) Order 1994 ---------------------------------------------------------- 228/94

Hotel and Guesthouse Accommodation (Fees)

(Amendment) Regulation 1994---------------------------------------------------- 229/94

Massage Establishments (Amendment) Regulation

1994 ----------------------------------------------------------------------------------- 230/94

Public Health and Municipal Services (Public

Pleasure Grounds) (Amendment of Fourth

Schedule) (No. 3) Order 1994 ----------------------------------------------------- 231/94 Trainee Solicitors (Amendment) (No. 2) Rule 1994---------------------------------- 232/94

Pleasure Grounds (Urban Council) (Amendment)

(No. 2) Bylaw 1994 ----------------------------------------------------------------- 233/94

Public Swimming Pools (Urban Council)

(Amendment) Bylaw 1994 --------------------------------------------------------- 234/94

Employees Retraining Ordinance (Amendment of

Schedule 2) (No. 4) Notice 1994 -------------------------------------------------- 235/94

Employees Retraining Ordinance (Amendment of

Schedule 4) Notice 1994------------------------------------------------------------ 236/94

The Hong Kong Institute of Education Ordinance

(16 of 1994) (Commencement) Notice 1994 ------------------------------------ 237/94

3314 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 Sessional Papers 1993-94

No. 74 — Hong Kong Council for Academic Accreditation Annual Report 1992-93

No. 75 — The Government Minute in Response to the Report of the Public Accounts Committee Dated January 1994

No. 76 — Kowloon-Canton Railway Corporation Annual Report 1993

No. 77 — Regional Council Revised Estimates of Revenue and Expenditure 1994-95

No. 78 — Report of the Special Meetings of the Finance Committee on the Draft Estimates of Expenditure 1994-95

No. 79 — Report of the Director of Aduit on the results of value for money audits March 1994 Director of Audit's Report No. 22

No. 80 — Revisions of the 1993-94 Estimates Approved by the Urban Council during the Fourth Quarter of the 1993-94 Financial Year

Oath

Mr Michael LEUNG took the Legislative Council Oath.

Addresses

Hong Kong Council for Academic Accreditation Annual Report 1992-93

MR RONALD ARCULLI: Mr President, I have pleasure in presenting some of the main features and highlights of the Hong Kong Council of Academic Accreditation's (HKCAA) Third Annual Report.

Perhaps I could remind Members of the HKCAA's role and responsibilities during the year, namely, to validate degree programmes and review the general academic standards of Hong Kong's six non-university tertiary institutions; also to monitor and disseminate information on the development of higher education, quality assurance and academic standards at home and abroad; to develop links with accreditation bodies throughout the world and to advise the Government, other organizations and individuals on academic qualifications.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3315

The HKCAA's 1992-93 Accreditation Programme continued to be dominated by Hong Kong's tertiary education expansion. The HKCAA carried out 56 degree validation exercises, an increase of 10 over the previous year. Nine programmes were proved unconditionally, 46 were recommended for approval with conditions and one was not recommended for approval. In addition 11 degree programmes were monitored with regard to conditions previously placed on them. During the year, the Open Learning Institute of Hong Kong submitted degree programmes for validation for the first time and the HKCAA conducted three extensive exercises to consider 17 programmes. The HKCAA also completed the validation of three degrees submitted by the Hong Kong Academy of Performing Arts.

The Council was pleased that during the year its development work with the three institutions with which it has had the longest association, namely, the two polytechnics and the Baptist College, reached its natural fulfilment with them being awarded accredited status by the Government.

The international dimension of the HKCAA's work continues to feature and in support of such work the HKCAA maintains an international register which expanded to number over 1 000 experts during the year. The HKCAA has also continued to administer the international network of quality assurance agencies in higher education which increased its membership to 52, representing 25 countries. The HKCAA has been active in maintaining and promoting its international links during the year through participating in conferences and visits to overseas educational institutions. In particular, the council continued to develop links with the PRC and as a result has been able to advise and inform the Government with regard to higher education and its evaluation in China. In March 1993, the Council received two delegations from the PRC, one comprising senior academics and educationalists from Shanghai and Beijing and the other from members of the Academic Degrees Committee of the PRC State Council. During the year the HKCAA published two extensive reports as a result of its liaison with China entitled, "Higher Education and its Quality Assurance in the People's Republic of China" and secondly "Quality Assurance and Tertiary Education in Hong Kong and the People's Republic of China". In its advisory role the HKCAA has continued to provide advice to the Government, other organizations and individuals. There was a considerable increase in this activity during the year.

Finally, I should like to report on the HKCAA's financial position for the year ending March 1993. The HKCAA is non-profit making and tax exempt. It is funded through charging fees approved by the Government for accreditation and related services. To take into account surpluses accumulated during 1990-91, the HKCAA budgeted for a deficit of $2.65 million for 1992-93, but financial management was able to reduce this deficit so that the actual year end deficit was $1.55 million.

Thank you Mr President.

3316 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

The Government Minute in Response to the Report of the Public Accounts Committee Dated January 1994

CHIEFSECRETARY: Mr President, laid on the table today is the Government Minute responding to the 21st Report of the Public Accounts Committee on the accounts of the Hong Kong Government for the year ending 31 March 1993, and on the results of the value for money audits. The Minute sets out the action the Government has taken, or about to take, on the conclusions and recommendations contained in the report.

On 2 February 1994, Mr Peter WONG, the Chairman of the Public Accounts Committee, spoke in this Council and voiced concern about achieving further improvements in cost-effectiveness and efficiency in our public services. The Administration fully shares this concern.

Mr President, the Government appreciates fully the importance of the PAC's findings and recommendations, and will continue to work closely with the Audit Department and the Public Accounts Committee in the quest for more efficient use of public funds. I am confident that the measures we have taken, or are planning to take, will go a long way towards this end.

Kowloon-Canton Railway Corporation Annual Report 1993

FINANCIAL SECRETARY: Mr President, in accordance with section 14(5) of the Kowloon-Canton Railway Corporation Ordinance, I table the annual report and accounts of the Kowloon-Canton Railway Corporation for the year ending 31 December 1993.

The Corporation continued to maintain a strong financial position in 1993. Operating revenue stood at $2,417 million, an increase of 12% over 1992. Including income from property development, the net profit for the year was $1,313 million. A dividend of $160 million was paid to the Government after fully taking into account the corporation's long-term cash flow requirements and investment needs, as well as the broader public interest.

At the end of 1993, the total assets of the corporation stood at $7.8 billion, and borrowings at $539 million. The year-end debt to equity ratio was 1:11.4. Cash generated by the operating divisions was sufficient to cover ongoing capital expenditure and debt repayment.

The Kowloon-Canton Railway (KCR) carried 206 million passengers in 1993, an increase of about 4% over 1992. Of these, 37 million travelled to and from Lo Wu, an increase of 6%. Through train traffic between Kowloon and Guangzhou rose by 7% to 2.9 million.

The Light Rail Transit System (LRT) carried 117 million passengers in 1993, an increase of 10% over 1992. The LRT service was extended to Tin

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3317

Shui Wai in January 1993. All 30 new light rail vehicles came into service during 1993, further expanding capacity. The programme to upgrade vehicle air-conditioning was completed during the year.

In the next 10 years, the corporation plans to invest $6.4 billion in infrastructure and service improvements. Major projects include the final phase of the redevelopment of the Ho Tung Lau Rolling Stock Maintenance Centre to provide better maintenance and overhaul facilities for the KCR fleet; the refurbishment of passenger trains; the introduction of an Automatic Train Protection System to enhance train safety and frequency; the installation of noise barriers at 18 locations along the KCR; and the expansion and renovation of Kowloon Station to enhance services for through train passengers. This substantial investment clearly demonstrates the Corporation's continued commitment to improving its services.

The corporation has continued to operate successfully. I would like to thank the Chairman, the Board, and all staff of the corporation for their hard work and achievements in the past year.

Oral Answers to Questions

Vietnamese boat people

1. MR CHIM PUI-CHUNG asked (in Cantonese): The approval recently given by the United States Congress to lift the economic blockade imposed on Vietnam will have a significant impact on the future development of Vietnam. Will the Government inform this Council:

(a) whether the latest information has been conveyed to the Vietnamese boat people stranded in Hong Kong and how such messages will be put across;

(b) whether consideration will be given to sending representatives of stranded boat people back to Vietnam to find out the latest situation there for the purpose of making a roundup report upon their return to Hong Kong, so as to encourage more boat people to return to their homeland; and

(c) when the boat people problem is expected to the completely resolved?

SECRETARY FOR SECURITY: Mr President, the lifting of the United States trade embargo has been widely publicized in the camps through the distribution of information bulletin and by UNHCR field staff.

3318 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

UNHCR and ourselves have considered the possibility of inviting Vietnamese migrants, who have returned home, to come back to Hong Kong to brief the population in the camps on developments in Vietnam. However, because there would be practical difficulties in securing the services of suitable Vietnamese for this purpose, and because we had reservations about how such information would be received in the camps, this proposal has not been pursued.

Assuming that recent arrival and departure trends continue, the Vietnamese migrant problem is likely to be resolved in about two years' time.

MR CHIM PUI-CHUNG (in Cantonese): Mr President, everyone in Hong Kong knows very well that the Vietnamese migrants issue is a problem that besets us, and which arouses grave concern over our economy and reputation. The Secretary mentioned in the second paragraph of his reply that they would consider inviting Vietnamese migrants, who had gone home, to come to Hong Kong again to brief those who were still here. My question is: Instead of inviting the returned Vietnamese to Hong Kong, is it possible to send representatives, from among those who are in the camps, to return to Vietnam to see for themselves the economic development back home and then come back to brief others, so that those who have little prospect for being admitted to other countries may decide in the light of the actual situation in Vietnam?

SECRETARY FOR SECURITY: Mr President, we have not considered that proposal either. In practice, the state of people who have returned to Vietnam is widely publicized in the camps. Reports on families who have gone back are publicized both by UNHCR and by the European Community Programme. We do regularly consider, with UNHCR, how best we can publicize the message and promote voluntary repatriation. We are certainly prepared to consider this suggestion, but we have not yet tried it out.

MR MARTIN BARROW: Mr President, would the Secretary not agree that UNHCR's counselling activities are totally inadequate, particularly as they have only three Vietnamese speaking counsellors available to counsel 26 000 people? If so, would he not consider arranging for the Hong Kong Government to initiate its own counselling activities?

SECRETARY FOR SECURITY: Mr President, I suppose that we would always want more resources to be devoted to counselling. But having said that, I do not believe the resources devoted to this by UNHCR can be considered to be inadequate. Nor do I think that lack of information is the prime, or even a major, reason why more Vietnamese do not return home voluntarily. UNHCR has, in total, approximately 60 staff devoted to counselling in the camps. In addition, both CSD staff and, to some extent, other NGO staff also help in counselling; so, it would not be true to say that the Hong Kong Government

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3319

does nothing in this respect. Apart from individual and group counselling, there is a considerable amount of other resources devoted to promoting voluntary repatriation through the distribution of newspapers and magazines, through the regular information bulletins, through information rooms in the camps where videos, photo exhibits and other printed information and materials on Vietnam are available, and through regular workshops and seminars which both UNHCR and the European Community promote in the camps. Having said all that, I would repeat, as I said in answer to Mr CHIM's supplementary, that we are always anxious to receive new ideas about how to promote voluntary repatriation and we do discuss this regularly with UNHCR and welcome any suggestions of new initiatives that can be taken.

MR WONG WAI-YIN (in Cantonese): Mr President, there was much optimism in the Secretary's reply in that he thought that the Vietnamese migrants problem was likely to be resolved in two years. But we understand that we have, at present, more than 20 000 Vietnamese migrants in Hong Kong, the majority of which have been stranded here for a long time, who have to face financial hardships on return to Vietnam. Recently, some Vietnamese used such threats as hunger strikes or even suicide to demonstrate their opposition against repatriation. How is the Secretary going to face such negative sentiments and what measures does he have to resolve this problem?

SECRETARY FOR SECURITY: Mr President, I think what I meant by the third paragraph in my reply is that, if we assume that the rate of voluntary repatriation for the next two years is about the same as the last two years, then we would have returned all the Vietnamese to Vietnam in about two years' time.

It is true that part of the problem, in my opinion, is that many of the Vietnamese remaining in the camps have now been here for five or six years. In their own perception of Vietnam, they are perhaps caught in a time warp and they look at Vietnam as it was five or six years ago and not as it has been developed in recent years. That is one of the perceptions that we have to try to change. And I think as I said in my answer to Mr CHIM's question and also to Mr BARROW's supplementary, that is one of the main themes of our counselling in the camps: to try and get information across about the present state of Vietnam, about the sort of assistance which they will receive on return to Vietnam and also about the considerable amount of assistance available to people who return to Vietnam, both from UNHCR, from NGO's in Vietnam and through the very major European Community Programme.

PRESIDENT: Not answered, Mr WONG?

MR WONG WAI-YIN (in Cantonese): Yes, Mr President, the Secretary has not answered my question. The thrust of my question is: In regard to recent

3320 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

attempts, for example hunger strikes or suicide by some inmates to demonstrate their reluctance to repatriation, how is the Government going to deal with such negative sentiments and are there any relief measures?

SECRETARY FOR SECURITY: Mr President, I think I have answered that question adequately. We have a major programme of counselling in the camps to try to promote voluntary repatriation.

MR JAMES TIEN: Mr President, I think most of the Vietnamese refugees in Hong Kong came here mainly because of economic reasons and they probably feel that they could not get a good living or a job back in Vietnam. Since the lifting of the United States trade embargo, I know that a lot of manufacturers are now starting to consider setting up factories or manufacturing facilities in Vietnam. Would the Administration not consider serving as a matchmaker in a sense by discussing with the Vietnamese Government about the possibility of the industrialists from Hong Kong setting up factories there to employ these Vietnamese refugees that are stuck here? Because I would have thought that with them staying in Hong Kong for four to five years so far, they, through watching our television programme in Cantonese and other means, will have a certain kind of ability to relate to the Chinese management.

SECRETARY FOR SECURITY: Mr President, certainly I do agree that economic considerations are one of the main reasons why people probably came to Hong Kong in the first place and probably why they are reluctant to go back. I do not think that it would be true to try to claim that people would go back necessarily if there was a very bright and immediate economic improvement in Vietnam. It is a poor country and there is a considerable amount of unemployment and that affects all people in Vietnam, not just those returning there from Hong Kong. I do agree that one of the things that we want to try to do is to explain more clearly to people the opportunities available when they return to Vietnam. Certainly one of the initiatives that we are considering is how we might, together with UNHCR, do this in conjunction with both businessmen in Hong Kong who have invested in Vietnam and owners of businesses in Vietnam.

MR MARTIN BARROW: Thank you. Mr President, the Secretary has asked for new ideas. Would he inform us how often the refugee co-ordinator meets with the very knowledgeable NGO groups, including Refugee Concern, to discuss issues regarding the Vietnamese migrants and the encouragement of volunteers to return?

SECRETARY FOR SECURITY: I do not have precise information on that, Mr President. The co-ordination and management of the NGOs is really a

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3321

matter for UNHCR rather than directly for the Hong Kong Government. I know that UNHCR does have very regular meetings with the NGOs. And the Refugee Co-ordinator has frequent, probably daily, contact with UNHCR and also frequent contact with many NGOs. But I do not have precise information on exactly how often regular meetings are held.

Imprisonment of a local travel agent in the Philipiness

2. MISS EMILY LAU asked: Regarding the imprisonment of local travel agent Paul AU in the Philippines for alleged drug trafficking offences, will the Administration inform this Council what the British and the Hong Kong Governments have done to secure his early release; why the attempts have so far been fruitless and whether further efforts will be made urgently?

SECRETARY FOR SECURITY: Mr President, Mr AU was sentenced to life imprisonment for drug trafficking on 29 November 1991. He has appealed. The British Embassy in Manila has sought an early hearing and decision on his appeal. In addition, the British Minister of State for Foreign and Commonwealth Affairs, Mr GOODLAD, has raised Mr AU's case with the Philippines Ambassador in London in June 1993, and with the Philippines Solicitor General in Manila in August 1993.

The motion for reconsideration by the presiding judge was considered and dismissed in December 1993. The matter is now to go before the Supreme Court.

Due legal process in this case has not yet been completed. We will continue to seek an early hearing and decision on his appeal, and to give any other assistance we can to Mr AU.

MISS EMILY LAU: Mr President, I am glad to learn that the Hong Kong and the British Governments will continue to seek an early hearing and decision on Mr AU's appeal. Will the Secretary please inform this Council whether he has any idea of the timing of the appeal, how many months or years Mr AU will have to wait and whether he has any information concerning his treatment in jail and his access to legal advice?

SECRETARY FOR SECURITY: Mr President, no. I have no information on how long it will take before the appeal is heard. All I can say is that we have pressed, and will continue to press, for an early hearing and decision.

The British Embassy staff in the Philippines do visit Mr AU regularly. I believe that he has not been mistreated in prison. He has also had access throughout to legal advice. I think that he has employed his own lawyer.

3322 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

MRS ELSIE TU: Thank you, Mr President. It is now about three years since Mr AU was arrested. The case has been raised in June and August last year by the Foreign Office. But since the review was heard in December, which is five months ago, has there been any further representation, because it appears that the young man has been forgotten?

SECRETARY FOR SECURITY: Yes, Mr President, as I indicated, we are continuing to press for an early hearing and decision on his case which is now due to go to the Supreme Court.

MR LAU CHIN-SHEK (in Cantonese): Mr President, actually another Hong Kong person called WONG Chuen-ming is also involved in Mr AU's case refered to by the Secretary. Should any action be taken, will that cover Mr WONG Chuen-ming? The Secretary has said in the third paragraph of his reply that the Administration will give any other assistance it can to Mr AU. What does "any other assistance" actually mean? If their families or other organizations petition the Hong Kong Government, will assistance be given and will pardon be sought from the Philippine President?

PRESIDENT: There are two questions there, Secretary. The second part goes to the main answer, the first does not. Could you answer the second question or do you wish it put again?

SECRETARY FOR SECURITY: Thank you, Mr President. I have no information on Mr WONG I am afraid. I am not sure that the original question is related to Mr WONG.

I think the second part of the question also had two parts, Mr President. The first part asked what sort of assistance can be provided to Mr AU. As I have explained previously in this Council, consular assistance really breaks down into four main areas.

First, where there is a consular agreement the local authorities are obliged, if requested, to inform British consular officers of the arrest and detention of an individual and the consular officers will then inform the Hong Kong Government through the Immigration Department and the Immigration Department will then in turn inform the next of kin in Hong Kong.

Secondly, consular officers will give advice on local proceedings on the rights of persons arrested and the availability of legal aid. They will make every effort to ensure that such people are able to take advantage of legal aid if it is available and that they are brought to trial without unnecessary delay.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3323

Thirdly, consular officers will visit British nationals imprisoned overseas and they will try to ensure that the conditions of detention, both before and after sentence, meet with acceptable standards.

And finally where someone requires repatriation, the consular officers will, if necessary, make the necessary arrangements for their repatriation.

I think the second part of this question related to whether Hong Kong could appeal. It would be quite improper for us to make any appeal while the judicial process is still going on.

MR HOWARD YOUNG (in Cantonese): Mr President, the travel industry has set up long ago a committee in support of Mr Paul AU and Mr WONG Chuen-ming. It has been active in such work as fund-raising, providing legal representatives, visiting the two persons in prison and accompanying their families to visit them. If the committee approach the Administration for assistance in protesting the innocence of Mr Paul AU and Mr WONG Chuen-ming, will the Administration render help? Will the British Embassy and the British Minister of State for Foreign and Commonwealth Affairs, Mr GOODLAD, continue to take an interest and support the good work of the committee?

SECRETARY FOR SECURITY: Mr President, what I would say is that in general we will try to assist in any way we can, but I am not at all sure that we have it within our knowledge or ability to try to prove Mr AU's innocence. I think that has to be done through his lawyers in the Philippines. Certainly I am aware of the efforts of the travel industry on behalf of Mr AU. I know that there has been very regular contact between them and the British Embassy in Manila. I am sure that the British Embassy will try to help all they can as they have done so far.

DR LEONG CHE-HUNG: Mr President, will the Secretary inform this Council whether he has any information about the mental and physical status and well-being of both Mr AU and Mr WONG? After all they have been impounded for some three years.

PRESIDENT: Are you able to answer, Secretary?

SECRETARY FOR SECURITY: Mr President, I do not have any specific information. I will try and find whether we have any recent reports from the Philippines and I will give a reply in writing. (Annex I)

3324 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

DR CONRAD LAM (in Cantonese): Mr President, can the Secretary inform this Council whether there are a lot of cases in which Hong Kong residents (such as Mr AU) were charged with drug trafficking offences? In general, will the Administration provide foreign governments with background information on residents charged with drug trafficking offences (irrespective of their innocence or not)?

PRESIDENT: Was your question directed to similar cases in the Philippines or everywhere?

DR CONRAD LAM: Everywhere.

PRESIDENT: Are you able to answer, Secretary?

SECRETARY FOR SECURITY: Mr President, yes. As far as we are aware, there are 402 Hong Kong residents detained or serving sentences abroad. That includes both China and Taiwan and other countries. Of these, 16, as far as we are aware, are undergoing imprisonment in the Philippines. I have to say "as far as we are aware" because if people do not report the case or ask that it be reported to the British Consular authorities, it is possible that there are some cases that we do not know about. In all these cases we would, through the British Embassies and consulates abroad, seek to provide consular assistance wherever we can of the type that I mentioned in answer to a previous supplementary.

Music Office

3. MR MAN SAI-CHEONG asked (in Cantonese): Will the Government inform this Council of the following:

(a) the specific details of the three proposals on the running of the Music Office submitted to the Recreation and Culture Branch for consideration;

(b) when the contents of these three options will be announced to the public; and when the outcome of the Government's deliberations on the options will be published; and

(c) in what way the Music Office will be run?

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3325

SECRETARY FOR RECREATION AND CULTURE: Mr President, following the Arts Policy Review conducted last year, the Administration has decided to accept the recommendation to transfer the work of the Music Office to a non-government organization and has invited a number of interested organizations to submit proposals. The Hong Kong Academy for Performing Arts, the Tung Wah Group of Hospitals and the two municipal councils subsequently submitted formal proposals, the last of which reached the Administration at the end of January 1994. We are currently assessing these proposals and are discussing details further with the organizations concerned. It would therefore not be appropriate nor advisable for me to disclose the specific details of these proposals at this stage.

However, I would like to say that all these proposals broadly meet the basic criteria we set down as the basis for making the transfer. These criteria are:

(a) The need to maintain the existing instrumental music training programmes at the present level and if possible to expand on them;

(b) The need to maintain the existing music promotion activities at the present level, and if possible to expand on them;

(c) The need to retain the existing regional music centres, and to open more centres wherever possible; and

(d) The need to maintain a low and affordable fee structure for both the instrumental music training programmes and the music instrument hire scheme.

All the three proposals fulfil these basic criteria. However, from the submissions it is clear that some are stronger in providing instrumental music training and others are stronger in organizing music promotion activities.

We plan to make a recommendation to the Executive Council within the next few months. A public announcement including specific details of the successful proposal will be made once a decision is reached by the Executive Council. Whether the details of the unsuccessful proposals will also be disclosed would be a matter for consideration by the organizations concerned.

The aim of the Music Office is to promote wider interest and appreciation in music among young people of Hong Kong. This aim is achieved through the running of instrumental music training programmes and music promotion activities both locally at the grassroot level and overseas through exchanges and visits. We envisage that any non government organization taking over the Music Office in future will continue to run the Office along similar lines. Indeed, the proposals from all three interested organizations show that they intend to continue running the Music Office on these lines.

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MR MAN SAI-CHEONG (in Cantonese): Mr President, no matter which proposal the Administration eventually adopts, it has to deal with the question of disbandment of the Music Office. I would like to ask: What will be the arrangements for the existing staff of the Music Office, and will there be changes to the terms of employment and fringe benefits of the staff?

SECRETARY FOR RECREATION AND CULTURE: Mr President, as a general rule if the officers of the Music Office, following its abolition, cannot be redeployed within the Civil Service, they will receive their full statutory entitlements which include enhanced pension and, where justified, ex gratia payments. However, whether these criteria will be applied in this case is a matter yet to be decided until a suitable organization is identified for taking over the Music Office because we will need to discuss with the successful organization on whether it would be prepared to take over some, if not all, of the existing staff of the Music Office.

MR FREDERICK FUNG (in Cantonese): Mr President, the Secretary had said in this Council and in panel meetings that the annual funding of $40 million to $50 million for the Music Office in the past would continue to be allocated to the organization that took over it. But it is understood that the Central Government had told the two municipal council subcommittees who had the intention of running the Music Office that if they were to take over it, then the funding would not be allocated to them. I would like to know why the Administration has gone back on its words; does it expect the successful organization to substantially raise the tuition fees of students to recoup the $50 million?

SECRETARY FOR RECREATION AND CULTURE: Mr President, what I stated previously in public about making available the existing funding for the Music Office to any non-government organization chosen to run the Music Office still stands. However, with regard to the fact that the funding will not be allocated to municipal councils, this is determined in the context of the rates financing arrangements between the Government and the respective councils on a triennial basis. Having regard to the overall rates revenue available, it is entirely a matter for the councils to determine their budgets and to allocate funds to different services according to their own priorities. Under this well established mechanism there could be no question of a separate subsidy for the funding of the Music Office to be made to the two municipal councils outside the context of rates financing arrangements. After all, the councils will only have to absorb the cost of providing the Music Office's activities for the triennium 1994-95 to 1996-97. For the next triennium, the Government will have to take into account the full funding requirements of the councils, including those activities arising from the taking over of the Music Office. In other words, the question of the funding for the Music Office will be part and parcel of the next triennium exercise.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3327 PRESIDENT: Mr FUNG, not answered?

MR FREDERICK FUNG: Not fully answered.

PRESIDENT: What part has not been answered?

MR FREDERICK FUNG (in Cantonese): Mr President, the Secretary has mentioned that the two municipal councils will allocate funds from the rates (a triennium exercise). To our understanding, no provision was made for this purpose when the two municipal councils discussed the rates financing arrangements with the Government.

PRESIDENT: Yes, that goes beyond repeating your question. It really is pressing for a further answer and you are strictly not asking a supplementary to elucidate the main answer to the original question, Mr FUNG. I am sorry I have got to rule you out of order.

MR HOWARD YOUNG (in Cantonese): Mr President, since the re-structuring of the Music Office was announced, many parents and even young children have come to the Complaints Division of the Legislative Council to raise their concerns. What concerned them most were: (a) the scope of service of the Music Office should not be scaled down and its quality not be lowered; and (b) the fees should not be raised too high. The Administration's reply just now indicated that the organizations that had submitted the proposals expressed their intention to run the Music Office along similar lines, but if it finds within the next two months that none of them could meet these requirements, will it review the re-structuring proposal or invite organizations that had initially expressed an interest to re-submit their applications?

PRESIDENT: Are you able to answer that, Secretary?

SECRETARY FOR RECREATION AND CULTURE: Yes. Mr President, I think in my main answer I did make it very clear that all the existing three proposals fulfil the basic criteria, that is, to maintain the existing instrumental music training programmes at present level, to maintain existing music programme activities at present level, to retain existing music centres and to maintain a low and affordable fee structure. I said in my main reply that all of them do meet these basic criteria. What we need to assess in the next few months is their ability to improve on this basic standard. So in answer to the Honourable Howard YOUNG's question, I would say that the three

3328 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

organizations would be able to meet the basic requirement and of the parents and students' expectations.

Wilkinson case

4. MRS SELINA CHOW asked: Regarding the Attorney General's decision to seek only to have the defendant bound over in the WILKINSON case, bearing in mind the seriousness of the original offence charged, will the Attorney General inform this Council:

(a) on what basis was this decision made;

(b) what principles are used in guiding such decisions generally; and

(c) in how many cases of domestic violence in the past three years has he made such a decision?

ATTORNEY GENERAL: Mr President, in answer to the first part of the question,

(a) The facts read in court in Fanling Magistracy on 18 March 1994 in support of the order of bind over were these:

"The Defendant that is Mr WILKINSON and the victim were married in 1980. They came to Hong Kong in 1985 and lived in Hong Lok Yuen. From 1989 onwards, their relationship deteriorated, until 31 December 1992 when the Defendant left the matrimonial home.

On the evening of the 31 December 1992, a heated argument took place, during which physical blows were traded and the Defendant hit the victim, that is, Mrs WILKINSON, around the head. In the course of the fight, the Defendant lost control and picked up a small knife, which caused a cut to the victim's left hand. He also used his hands to apply pressure to her throat. At this juncture, the Defendant regained control of himself and phoned a consultant psychologist whom the parties had been using for counselling. This man, a Mr WHYTE, came to the house with his wife; he calmed the victim, and suggested to the Defendant that he should leave, which he did.

The victim reported the assault to the police some six months later."

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3329

Mr WILKINSON was bound over in the sum of $20,000 for a period of 12 months.

Mr President, as has been explained to this Council in the past, it is not appropriate for me to give reasons for decisions made in relation to any particular prosecution. I can nonetheless confirm that in this case the Director of Public Prosecutions reached his decision only after an exhaustive examination of the case file, of the witness statements of Mrs WILKINSON, of Mr WILKINSON, and of others. Any such decision is not, of course, taken lightly. The Director of Public Prosecutions, in reaching his decision, was aware of all relevant factors. He considered the events leading to the incident, the incident itself, and the circumstances subsequent to the incident. In that exercise, regard was likewise had to the interests of the victim, to those of the accused, and to the wider public interest.

(b) A decision to apply for a bind over is taken after a careful consideration of the facts of the individual case, the circumstances of the parties, and after due regard has been had to the public interest. It must, put simply, be appropriate to all the circumstances of the case. Regard is also had to the element of preventive justice contained in an order of bind over. The basic requirements when magistrates make such orders are: (1) there should be material before the court justifying the conclusion that there is a risk of a breach of the peace unless action is taken to prevent it; (2) they should make clear to the accused their intention to bind him over and the reasons for it; (3) they should obtain consent to the bind over from the accused; (4) before fixing the amount of the recognizance they should enquire as to the accused's means; (5) the binding over should be for a fixed period.

(c) Turning to the third part of the question, the number of binding over orders known to have been issued in relation to cases of domestic violence recorded in the police database are as follows. I should add that these figures include bind overs imposed by a court in respect of persons who have been convicted of an offence.

Year Persons charged Bind overs

1991 149 27 (18.1%) 1992 120 17 (14.2%) 1993 193 27 (14.0%)

Mr President, I must emphasize that we do not take offences associated with domestic violence lightly. The case in question turned on its own facts and circumstances and should not be

3330 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

regarded as setting any sort of precedent. There is no question of us going soft on domestic violence.

MRS SELINA CHOW: Mr President, on page three of his reply, the Attorney General said that the Director of Public Prosecutions reached his decision only after an exhaustive examination of the case file, of the witness statements of Mrs WILKINSON, of Mr WILKINSON and of others. Now as there are two decisions in question, one of charging Mr WILKINSON taken in late 1993, and a subsequent U-turn of offering no evidence when the case came to court finally on 18 March, this year, can the Attorney General pinpoint when the exhaustive examination by the DPP took place and what factors caused the change of heart in between the two decisions?

ATTORNEY GENERAL: Mr President, could I perhaps just clarify one point on a preliminary issue. The prosecution did not offer no evidence in this case. Offering no evidence would not be consistent with agreed facts, so it is not the case that the prosecution offered no evidence.

Could I just, Mr President, run through the chronology. The incident occurred on 31 December 1992. It was first reported to the police on 6 July 1993. Mr WILKINSON was charged with the offence of unlawful wounding on Christmas Eve 1993. That same day he pleaded not guilty to the charge and the trial was set on 18 March 1994. The review of all the circumstances was undertaken by the Director of Public Prosecutions shortly before the hearing date, in the course of March, and this led to the conclusion that as things stood at that stage the case could properly be disposed of by way of a bind over. This review in no way and no sense reflected upon the earlier decision to prosecute which was taken in the light of the circumstances as they then stood. The decision taken in March, shortly before the hearing, simply reflected the view of the Director of Public Prosecutions, an experienced and distinguished criminal lawyer, at a later date when additional factors had come to light which could not with reasonable diligence have been discovered when the original decision to prosecute was made.

Mr President, the Director of Public Prosecutions, indeed the prosecuting authorities generally, must keep an open mind in respect of decisions to prosecute and it is not uncommon for there to be changes to earlier decisions and I am sure that members of the community would expect the Director and the prosecuting authorities to act in that way.

MRS SELINA CHOW: Mr President, I think that the Attorney General did not answer the second part of my supplementary question which was: What factors brought about the change of heart? He did mention additional factors in his answer. So could he elaborate on them?

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3331

ATTORNEY GENERAL: Mr President, as I said in my main answer and consistent with the policy that I have discussed with this Council and my predecessors before me on many occasions, it is not appropriate for me to go into the questions of evidence concerning decisions to prosecute or not to prosecute. I have explained before that that is not consistent with public policy and I regret that I am not prepared to compromise that rule.

MR MOSES CHENG: Would the Attorney General be able to explain, why the fact sheet presented to the Court showed that blows had been traded and the victim was only cut in her left hand when the victim has claimed in a written statement that she was beaten for three hours, threatened and cut with a knife and strangled until she lost consciousness and a doctor has certified that she has sustained heavy bruising to both eyes, bruising to her face, back, body and limbs, cut to her hand and throat, split lips, swollen neck due to strangulation and laceration to her face?

ATTORNEY GENERAL: Mr President, the Director of Public Prosecutions was aware of the injuries sustained by Mrs WILKINSON. He had her statements for she made more than one, and he had photographs taken of her injuries. He was aware of the injuries sustained by Mrs WILKINSON. He was also, as I have said, aware of all the circumstances surrounding this case and took all factors into account. Can I repeat, Mr President, this was not a decision taken lightly. It was taken after the most exhaustive and anxious consideration of the case file and the decision reached to offer a bind over was one that was thought, in all the circumstances, to be appropriate to the circumstances of the case.

PRESIDENT: Not answered, Mr CHENG?

MR MOSES CHENG: Mr President, with respect, I do not think that my question has been answered. I was asking the Attorney General to explain why there was a discrepancy between the facts contained in the fact sheet presented to the Court and those shown in the witness statement? I do not think that the Attorney General has answered that question.

ATTORNEY GENERAL: The agreed facts read in the Court were drawn on the basis of the material contained in the case file and all the circumstances, Mr President.

MR RONALD ARCULLI: Thank you, Mr President. In the third page of his answer, the Attorney General has said that in the exercise, regard was likewise had to the interests of the victim, to those of the accused and to those of the wider public interest. I can understand from the point of view of the accused

3332 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

why a bind over order would be in his interest but what I cannot understand is why it is in the interest of the victim or indeed in the wider public interest. Could he elaborate?

ATTORNEY GENERAL: I am afraid, Mr President, I am really not able to go beyond what I have already said in my main answer and that is that the Director of Public Prosecutions did indeed take into account the interests of the victim, those of the accused and the wider public interest. As I have explained this was not an easy decision. It was taken after anxious and careful consideration and not taken lightly. Of course, Mr ARCULLI is quite right, the interests of the victim is a factor to be taken into account in reaching a decision but the paramount factor is of course the public interest.

DR LAM KUI-CHUN: Mr President, was this WILKINSON case accepted in the Attorney General's Chambers as a psychiatric problem or one of simple domestic violence? And in cases of violence similar to this one, what preventive measures does the Administration generally provide to protect the victims against another attack as mentioned in part (b) of the answer?

ATTORNEY GENERAL: Mr President, the case was dealt with in the way in which I described. Mr WILKINSON was originally charged with unlawful wounding contrary to Section 19 of the Offences Against the Person Ordinance. You will see from the agreed statement of facts read in court that a consultant psychologist was involved. I repeat that all the relevant facts and circumstances were present before the Director when he made his decision.

Could Dr LAM please repeat the second part of his supplementary?

DR LAM KUI-CHUN: Mr President, the second part of the question is, in cases of violence similar to this one, what preventive measures does the Administration generally provide to protect the victims against another attack?

ATTORNEY GENERAL: Mr President, as I said in my main answer, a bind over order is, of course, preventive justice. The effect of the bind over is to require the defendant to keep the peace for 12 months on penalty of being punished by the loss of his recognizance.

MR MARTIN LEE: Mr President, will the Attorney General please tell this Council whether Mrs WILKINSON was consulted before the decision was made by the DPP? It is because by that decision he has made it impossible, I believe, for Mrs WILKINSON to bring a private prosecution against Mr WILKINSON. And if she was not consulted beforehand, why not?

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3333

ATTORNEY GENERAL: Mr President, it would be unusual for a victim to be consulted prior to a prosecution decision is made. There are no hard and fast rules but it would be unusual, certainly not the standard practice, for a victim to be consulted over prosecution decisions. After the Director of Public Prosecutions made his decision, but before the hearing, Mrs WILKINSON who was legally represented through her solicitors made oral and written representations to the Director which the Director considered before the case went to trial on 18 March. But having carefully considered those representations he was minded not to change his decision.

MR HENRY TANG: Mr President, can the Attorney General justify and perhaps rectify how public interest is served by his decision when there is such widespread belief that justice has not been done in this case?

ATTORNEY GENERAL: Mr President, an Attorney General is placed in an impossible position, as we have always recognized, by the constraints of public policy which I have already outlined balanced with the natural concern of Members of this Council and the community as to the contents of the prosecution file, but it has been my consistent policy that public interest dictates that the contents and evidence of a prosecution file should not be made available.

I am sorry, if I can take up a couple of minutes of the Council's time with your indulgence, Mr President, just to rehearse why that is so. Could I first refer to a letter which I wrote to the Chairman of the House Committee in May of last year dealing with the policy. I can go to the relevant passage dealing with the reasons why decisions to prosecute or not to prosecute or prosecution decisions should not be discussed. I said the reasons are these:

(a) If the defendant has been prosecuted but acquitted, it cannot be in the interests of justice and fairness for that acquittal or its reasons to be debated in public.

(b) If the defendant has been prosecuted and convicted, it would hardly be proper to discuss whether the conviction was correct or not. If the defendant felt he should not be convicted, he would appeal.

(c) If criminal proceedings were not taken it would not be fair or just to discuss why the accused were suspected and the reasons for not prosecuting. To embark on such a course would be tantamount to a trial but it would not be in accordance with court procedures and it would not be confined to evidence admissible in court.

Mr President, at the risk of taking up more time, could I refer Members to what my predecessor, Mr Michael THOMAS, said in this Council on 25 March 1987, in relation to a not wholly dissimilar type of case. He said, "There are good reasons why any Attorney General does not normally explain

3334 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

in public a decision not to prosecute in a particular case. It is rare for any public announcement to be made of that decision because it would reveal unfairly that someone had been under suspicion for having committed a criminal offence. And even where that fact is known, to give reasons in public for not prosecuting a suspect would lead to a public debate about the case and about his guilt or his innocence. The nature of the evidence against the suspect would have to be revealed. Then some might say that was proof enough of guilt and the suspect would find himself condemned by public censure. Mr President, in our legal system the only proper place for questions of guilt or innocence of crime to be determined is in a court where the accused has the right to a fair trial in accordance with the rules of criminal justice and the opportunity to defend himself. So Members will readily appreciate that it would be quite wrong for any Attorney General having decided that the issue should not proceed to trial in the courts to say anything in public that might be taken to indicate a belief in the suspect's guilt which might lead to a public discussion of that very question."

PRESIDENT: Not answered, Mr Henry TANG?

MR HENRY TANG: Mr President, would you care to clarify or confirm what the Attorney General has said is consistent with Standing Orders in respect of public officers' accountability?

PRESIDENT: I am not sure I understand your point. Is it a point of order, Mr TANG? MR HENRY TANG: Yes, Mr President.

PRESIDENT: Sorry, what is the point of order?

MR HENRY TANG: According to Standing Orders, I understand that public officers, when they come here to answer questions, wish to justify their accountability of certain issues. Can they then in this case, as it is already closed, seek to hide behind the veil of public interest and do not disclose certain details that we seek?

PRESIDENT: There is no point of order here, Mr Henry TANG, because I have no powers, as I have said on a prior occasion, to direct an answer to a question. I can simply rule on whether a question conforms with Standing Orders but I have no powers of direction as regards the giving of answers. What I can and have done is to give Members an opportunity to repeat their

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3335

questions where they think that through inadvertence a question has not been answered but once that opportunity has been given that exhausts my powers.

Noise nuisance associated with the use of Hong Kong Stadium

5. MR FRED LI asked (in Cantonese): Since the opening of the redeveloped Hong Kong Stadium, a total of over 180 complaints about noise nuisance to nearby residents have been received by the Environmental Protection Department (EPD) and the police. EPD said that before the opening of the redeveloped Stadium it had already pointed out to the Urban Services Department (USD) and Wembley International (HK) Ltd that it would not be suitable to hold large-scale concerts in the Stadium, but the advice was not heeded. Will the Government inform this Council why the EPD and USD did not inform Urban Councillors and the general public of such advice at an early stage?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, throughout the period of conception, design and construction of the stadium, its intended use as a multi-purpose venue caused consideration to be given to the noise problems associated with amplified music concerts. The Environmental Protection Department (EPD) were asked for advice on several occasions. The department advised that the use of the stadium for such a purpose would breach the Noise Control Ordinance. For example, when commenting on a 1991 Environmental Noise Assessment commissioned by the Royal Hong Kong Jockey Club, EPD advised the Urban Services Department, the Architectural Services Department, and the consultant, in May 1992, that the report was over optimistic about the noise impact. EPD therefore objected to the holding of amplified music concerts in the stadium.

The Urban Council decided to take up the management of the new stadium in July 1992 and appointed Wembley International to manage the stadium. Wembley International subsequently held a series of meetings with EPD to discuss the noise problem. An acoustics consultant firm was also commissioned by Wembley International to carry out a further Environmental Noise Assessment. This report, completed in December 1993, identified the same problems as the previous one.

EPD again advised the stadium management, in early February 1994, that noise from amplified music concerts would cause severe disturbance to nearby residents and that the management should therefore implement additional control measures to reduce noise levels to acceptable levels.

I understand that Wembley International reported the noise problem to the Urban Council Board of Governors responsible for policy and management of the stadium on 22 February 1994.

3336 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

PRESIDENT: I think before I take supplementary questions I will need to suspend the sitting for a few minutes while I consult with Mrs TU and Mr Andrew WONG in my office.

Sitting suspended from 3.35 pm to 3.45 pm

THE PRESIDENT'S DEPUTY, MR ANDREW WONG, took the Chair.

DEPUTY: Order please. Members, to avoid possible misperception of conflict of interests, with regard to the fact the President is the Chairman of the Jockey Club and Mrs Elsie TU is the "representative" Member of the Urban Council, I shall take the Chair.

MR FRED LI (in Cantonese): Mr Deputy, I have a follow-up question to raise. May I point out that the Secretary has not answered the last part of my question, that is: Why did the EPD and USD not inform Urban Councillors and the general public of such advice at an early stage? So will the Secretary supply an answer to that part of my question?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy, I think the responsibility of the Environmental Protection Department (EPD) is to implement and enforce the Noise Control Ordinance in this case and in the action that it took it did so. It dealt with the agencies which were planning and developing the stadium by providing timely advice and some detailed information in regard to how the development of the stadium would stand in relation to the Noise Control Ordinance. It also then, when the stadium had been completed and put into use, dealt with those directly responsible for managing the stadium and those responsible under the Noise Control Ordinance. I would submit that it is not for the EPD to issue general advice to parties less directly concerned and to the general public as to the impact of events likely to require enforcement under the Ordinance.

As far as the question relating to the Urban Services Department is concerned, as I said in the final part of my main answer, I understand that Wembley International reported the noise problem to the Urban Council Board of Governors responsible for policy and management of the stadium on 22 February 1994.

MR MARVIN CHEUNG: Mr Deputy, will the Secretary please inform this Council in full and unambiguous terms what information concerning the noise problem was actually conveyed by Wembley International to the Urban Council's Board of Governors on 22 February 1994, and more specifically, whether this information included full details of the objections from the

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3337

Environmental Protection Department and if not, what information was withheld and why was it withheld?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy, I am not privy to the detailed proceedings which took place between the manager of the stadium, Wembley International, and the Urban Council and its Board of Governors responsible for the stadium. I can seek the additional information which is asked, or it may be possible that my colleague, the Secretary for Recreation and Culture, may be able to assist here.

SECRETARY FOR RECREATION AND CULTURE: Mr Deputy, I am afraid, like my colleague, I was not privy to that information because it was an internal meeting between Wembley International and the Urban Council and its Board of Governors managing the stadium, but in conjunction with my colleague, we could seek that information from the Urban Council.

MR MARVIN CHEUNG: Can I ask for a written reply to my question please?

SECRETARY FOR RECREATION AND CULTURE: Mr Deputy, I think my colleague and I would seek the information and give a written reply. (Annex II)

MRS PEGGY LAM (in Cantonese): Mr Deputy, now that this concert has caused severe noise disturbances to thousands of residents living near the Stadium, and that the public demanded that no concerts be held until the Government has come up with measures to deal with the problem, will the Administration listen to public view in this respect?

DEPUTY: I am not sure whether the Secretary for Planning Environment and Lands or the Secretary for Recreation and Culture should answer this question.

SECRETARY FOR RECREATION AND CULTURE: Mr Deputy, in answer to the Honourable Peggy LAM's question, I do not think it is for the Government to decide on the future management matter for the stadium. It was made very clear in the Memorandum of Administrative Arrangements which the Government entered into with the Urban Council way back in 1972, that once a facility is handed over to the Urban Council for its management, the Urban Council would have full autonomy in the management of that facility. And in this regard I understand from the Urban Council that they have given instruction to Wembley International not to accept any more bookings for pop concerts to take place in the stadium until this issue on noise pollution is resolved.

3338 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

MR FREDERICK FUNG (in Cantonese): Mr Deputy, we can see from the Secretary's reply that there are several important dates. The first was in May 1992 when the Environmental Protection Department commented on the Environmental Noise Assessment. The second was in July 1992 when the Urban Council appointed Wembley International to manage the Stadium, in other words, the Urban Council had taken up the management of the Stadium. The third was in December 1993 when Wembley International conducted another Environmental Noise Assessment and completed a report on that. The fourth was on 22 February 1994 when the Urban Council's Board of Governors started to discuss the noise problem. I think the point raised by Mr Fred LI which obviously has not been answered is that, since the EPD had given its comments on the report in May 1992, and that the Urban Council had taken up management of the Stadium in July 1992, why was the issue of noise problem not discussed until February 1994 (which was after one year and five months)? The Chairman of the Board of Governors said in his report that it was very difficult to carry out any improvement works by February 1994 when the official opening was on 11 March. May I ask why one year and five months had passed, yet neither the Urban Council nor the managing authority of the Stadium had been informed of the two reports on noise assessment?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy, I do not think that one should read into my answer the suggestion that there were only four dates on which anything happened during the period between 1991 and 1994. I have tried to be concise and to give the dates which were relevant to the question which was: What did the EPD do? As regards the question of what happened between Wembley International and its acoustic consultants on the one hand, and the Urban Services Department and the Urban Council on the other, I believe that we would have to set out a rather full diary of exchanges before we could explain precisely who said what to whom about what. I am prepared to try and provide fuller information but I am not sure that it would actually help elucidate EPD's role in this beyond the original question.

DEPUTY: You have already asked a very long question, Mr FUNG.

MR FREDERICK FUNG (in Cantonese): Mr Deputy, may I ask the Secretary to provide a written reply to the points he has just noted down.

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: I am certainly willing to try and do that, Mr Deputy. (Annex III)

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MR MOSES CHENG: Thank you, Mr Deputy. In paragraph two, the Secretary was referring to the Government's handing over the management of the new stadium to the Urban Council. At that point in time, did the Administration advise the Urban Council about the noise problem or were these problems made known to the Urban Council then?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: I think it is a question again of how much the Urban Services Department, which as my original reply has said, was involved as long ago as 1991, has passed on to the Urban Council. I think this is a procedural matter between the Urban Services Department and the Urban Council. And I am sure there is a great deal of intercourse, if I can put it that way, between the department and the council. I should have to seek more information from the Urban Services Department to answer that question. (Annex IV)

DEPUTY: I have five more names and I propose to draw a line there because we are running on too long on this question.

MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy, the recent noise issue of the Stadium demonstrates once again that the EPD is a toothless tiger because the warnings and summonses issued to the Urban Council and the Stadium management in connection with noise disturbances were ignored, which was a blatant disregard of the law by the authorities. Can the Administration inform this Council how it is going to ensure that the advice of the EPD is given due regard and followed? If the Urban Council continues to breach the Noise Control Ordinance in its management of the Stadium, how is the Administration going to deal with it?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy, in the short term what the EPD will do of course is to enforce the Noise Control Ordinance, as it has sought to do in this particular case. In the medium to longer term, I think, as Members are probably aware, we are in preparation of the legislation of the environmental impact assessment. I believe that if we are able to bring this legislation forward, we would be able to deal with the sort of situation which has arisen rather more effectively than we have on this occasion.

MR TIK CHI-YEUN (in Cantonese): Mr Deputy, can the Administration clarify whether the Urban Council's Board of Governors was aware of the noise problem before approving the recent concert? Did the Board approve it without knowing the noise problem, or did it do so knowingly? If it was the latter, who was at fault?

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SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy, my colleague has kindly volunteered to answer questions on the Urban Council/Urban Services Department aspect of these questions.

SECRETARY FOR RECREATION AND CULTURE: Mr Deputy, I think when Wembley International entered into discussion with potential hirers of the stadium, all these were done, I think, prior to the official opening of the stadium in March this year. As far as I understand, other than the most recent concert that was held last weekend, there have been no further fully committed pop concerts being hired but I would like to seek full confirmation from the Urban Council if the Honourable Member wishes to have a written reply. (Annex V)

REV FUNG CHI-WOOD (in Cantonese): Mr Deputy, the EPD had warned the authorities concerned time and again that the Stadium was not suitable for concerts. Despite these warnings, concerts were held and were found to have breached the Noise Control Ordinance. Why had this happened? Were the warnings issued by the EPD clear enough, and how were they issued? Has the EPD, in dealing with the case, sought any advice from the Secretary for Planning, Environment and Lands? This is already the second incident (The first one involved the West Kowloon Reclamation when the EPD opposed to the progress of works which was far too fast. The works proceeded all the same, leading to a lot of fish being killed). Can the Secretary for Planning, Environment and Lands inform this Council what measures will be taken to prevent the recurrence of similar incidents?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy, I think the Environmental Protection Department is willing and frequently does extend advice to organizations, including government departments, whose projects may cause environmental problems. Of course, as Members are aware all public works programme items which come before this Council are required to have an environmental impact assessment included in the submission paper. As far as other organizations are concerned, where the EPD's advice is taken but ignored, then those involved must accept that they run the risk of enforcement under the Noise Control Ordinance and of course that is what the Noise Control Ordinance is there for.

MR PETER WONG: Mr Deputy, we have heard of the rather sorry tale of the powerlessness of the EPD to enforce its recommendations in this case. Would it have made any difference if the entity was not a government body?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: I would like to say, Mr Deputy, at this point, that the question of the situation under the Noise Control Ordinance in this case is not yet closed.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3341

MRS SELINA CHOW: Mr Deputy, is the Government aware of an intention on the part of the Urban Council or any other party to apply for an exemption order under section 35 of the Noise Control Ordinance (NCO) to exempt the Hong Kong Stadium from the provisions of the NCO? And if such an application is received, will the Secretary recommend that the application should not be granted?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy, I am not aware of such an application being considered although it may well be under consideration because the recourse under the legislation exists and therefore those who are affected by the Noise Control Ordinance are free to consider seeking exemption under the Ordinance. As to the possibility of such an exemption being granted, that is a matter for the Governor in Council and at this stage I would not like to pre-empt the process which would make recommendations to the Governor in Council on the question, because the circumstances under which an exemption might be sought are not yet stated.

DEPUTY: Mr Fred LI, may I enquire whether you had asked your supplementary because after I came in, in the midst of confusion, I thought, you had already asked a question?

MR FRED LI (in Cantonese): Mr Deputy, I would like to pursue my question which I think has not been answered. Was the Secretary for Recreation and Culture aware that the EPD had on a number of occasions opposed to holding amplified music concerts at the Stadium? If so, why had no attempts been made to prevent the noise problem that arose later?

SECRETARY FOR RECREATION AND CULTURE: Thank you, Mr Deputy. I would like to say that my office was aware of the environmental assessment study done by the Royal Hong Kong Jockey Club's consultant in late 1991. And we were aware that the findings of that study were conveyed and discussed with the EPD and we were aware of the initial EPD views on that study. But all along in the course of discussion the information made available to my office was that these matters were under serious consideration by the EPD, the USD, the consultant architects and the contractors concerned and they were looking at various ways and means to deal with how to mitigate the problem. So all along in the course of the consideration my office was not aware of the fact that the mitigating factors could not be applied until we received the notification from Wembley in February 1994.

3342 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 Display of banner

6. MRS PEGGY LAM asked (in Cantonese): A pilot scheme on the control of display of banners was introduced in Wan Chai, and its positive effects on the environment and road safety in the district have been affirmed by the Wan Chai District Board. Will the Government inform this Council:

(a) whether the scheme would be fully implemented; if so, what will be the staffing and financial commitments involved; if not, why not; and

(b) if the above-mentioned scheme is further implemented, whether it would consider following the practice adopted by some large cities abroad, whereby the display of banners will only be allowed during election periods; if not, why not?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, I shall answer this question as carefully as possible in order not to create another small constitutional crisis. {Laughter}

(a) The Administration is still considering whether the pilot scheme in Wan Chai can be applied to other districts. The staffing and financial implications of doing so are that up to 28 staff would be required to implement the scheme throughout Hong Kong at an annual cost of $5.8 million. Before reaching a decision on whether the scheme can be implemented territory-wide, we need to consider whether it can command priority for resources compared with other competing demands.

(b) If the scheme is to be extended, we will certainly need to consider the terms on which it will be extended and any restrictions to be applied. Comparisons with other cities may be relevant, although widely differing practices probably apply.

MRS PEGGY LAM (in Cantonese): Mr President, section 6(1) of the Crown Land Ordinance empowers the District Lands Officer to remove any banners or signboards displayed without permission. Will the Secretary inform this Council whether the law enforcement situation is satisfactory in bringing illegal display of publicity materials under control? If not, how is the Administration going to improve the situation?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, I doubt whether the Administration will consider prohibiting the display of this kind of banner. I think these displays, particularly in relation to elections, have a legitimate place in the conduct of the community affairs. I

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3343

understand that the Boundary and Election Commission is currently working on guidelines for the display of materials relating to the 1994 district board elections. The Boundary and Election Commission will, I understand, be consulting the public on the draft guidelines when these are ready. The Administration will monitor the effectiveness of these arrangements and will consider revising arrangements for the control of publicity materials displayed after the elections.

MR MARTIN LEE: Is the Administration satisfied that the Wan Chai District Board, which initiated or which urged the Government to initiate this pilot scheme on the control of display of banners and signboards, is aware that there is such a thing as the freedom of expression?

PRESIDENT: Are you able to answer, Secretary?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, I find that one quite difficult to answer. I think I might need to consult the Wan Chai District Board and provide an answer in writing. (Laughter)

MRS PEGGY LAM (in Cantonese): Mr President, may I refer to paragraph (a) of the Secretary's reply in which it says, "..... at an annual cost of $5.8 million. Before reaching a decision on whether the scheme can be implemented territory-wide, we need to consider whether it can command priority for resources compared with other competing demands". Was the Secretary saying that the implementation of the scheme would largely depend upon whether resources were adequate?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, as I said, we need to consider where the proposal that this activity should be extended territory-wide fits in with the other pressures and priorities for work to be undertaken by the Lands Department. I think Members will be well aware that there is considerable pressure permanently on the department to speed up land transactions, to speed up the provision of sites of all sorts of uses that the community requires, to speed up the resumption of land for public works projects and other projects urgently required in the territory and to undertake extensive land control activities in the New Territories. We will, therefore, in the coming resource allocation exercise need to consider where this particular potential bid for $5.8 million fits with the other priorities of the sort that I have just mentioned.

3344 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 Written Answers to Questions

Chinese language as promotion criterion

7. MR NGAI SHIU-KIT asked (in Chinese): For certain grades of the Civil Service, an officer's standard of the Chinese language is one of the aspects to be assessed in his appraisal report and is also one of the factors to be taken into consideration for the determination of his suitability for promotion. Will the Government inform this Council:

(a) whether the Civil Service Branch has provided to the relevant departments a set of objective standards for the fair assessment of their staff; if so, what standards are being provided and on what basis are they drawn up; and

(b) how many local civil servants are having their standard of the Chinese language assessed by expatriate supervisors?

SECRETARY FOR THE CIVIL SERVICE: Mr President, broad indicators on assessment of language ability are in fact included in staff appraisal reports for the guidance of appraising officers. Civil Service Branch has not however supplied departments with grade-specific standards for assessing Chinese language. This is because departments and the relevant agencies are in the best position to set the assessment criteria in accordance with job requirements. For instance, Chinese Language Officers and Simultaneous Interpreters are assessed according to their fluency in delivery, speed and accuracy of interpretation/translation; Training Officers on their communication skills; and Calligraphists on their accuracy and output in Chinese typing.

Instances of civil servants having their standard of Chinese language assessed by expatriate supervisors who do not know Chinese are rare. In these cases, the appraising officer would normally consult colleagues who know Chinese and who have work contact with the appraisee on how the appraisee has performed. In accordance with usual civil service practice, the appraisal report is countersigned by another senior officer and reviewed by a more senior officer designated by the head of department or head of grade concerned. This provides opportunities for further views on the appraisee's performance.

Drug abuse by adolescents

8. MR TIK CHI-YUEN asked (in Chinese): Regarding the problem of drug abuse by adolescents, will the Government inform this Council:

(a) of the number of persons aged under 21 involved in abuse of drugs and medicines in the past three years, with a breakdown by districts;

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3345

(b) of the number of inspections of dispensaries conducted last year, with a breakdown by districts; and

(c) whether there are any specific plans to increase the frequency of inspections in order to eradicate the illegal sale of controlled drugs by dispensaries?

SECRETARY FOR SECURITY: Mr President,

(a) The numbers of persons aged under 21 reported to the Central Registry of Drug Abuse in the past three years were:

1991 1 405

1992 1 958

1993 3 028

The breakdown of those who provided information on their district of residence was:

District 1991 1992 1993

Hong Kong 257 393 490 Central and Western 49 93 74 Wan Chai 28 28 33 Eastern 50 107 218 Southern 130 165 165

Kowloon 468 594 969 Yau Tsim 28 24 41 Mong Kok 39 29 55 Sham Shui Po 88 107 123 Kowloon City 47 53 107 Wong Tai Sin 111 130 216 Kwun Tong 155 251 427

New Territories 650 929 1 498 Kwai Tsing 94 145 230 Tsuen Wan 83 99 153 Tuen Mun 218 274 424 Yuen Long 72 107 206 North 32 71 114 Tai Po 49 58 83 Sha Tin 77 113 176 Sai Kung 12 34 55 Islands 13 28 57

3346 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

(b) In 1993, 2 866 inspections were conducted at drug retail premises. The records of these inspections are not maintained by districts; a breakdown by region is shown below:

Hong Kong 849

Kowloon 1 359

New Territories 658

(c) Plans are in hand to step up enforcement, to prevent illegal sales of controlled drugs, by increasing the frequency of test purchases and inspections of drug retail premises. We will increase the number of pharmacy inspectors from 11 to 14 and employ additional casual workers. The frequency of inspections will be further enhanced by more effective staff deployment and re-prioritization of activities in the Pharmaceutical Division of the Department of Health.

Government advisory boards and committees

9. MR TIK CHI-YUEN asked (in Chinese): Will the Government inform this Council of the number of government advisory boards and committees set up in the past three years, and the proportion, as well as the actual number, of board and committee members who are elected members of the three-tier representative government?

SECRETARY FOR HOME AFFAIRS: Mr President, 42 government advisory boards and committees were set up during the period from 1 April 1991 to 31 March 1994. These boards and committees have a total of 615 members, of which 453 are non-official members. Among these non-official members, 6%, or 27, are also elected members of the three-tier representative government.

Additional staff for Lands Department

10. MR ERIC LI asked (in Chinese): In the 1994-95 Budget, the Financial Secretary has proposed to increase the Lands Department's staff by over a hundred in order to accelerate the processing of new land grants, land exchanges and lease modifications. Will the Government inform this Council:

(a) when the additional staff will be recruited;

(b) after the recruitment of additional staff, to what extent will the processing of applications for new land grants, land exchanges and lease modifications be expected to speed up as compared with the present;

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3347

(c) whether a time limit will be set for the processing of such applications, if so, what the time limit is;

(d) whether the time limit set for the processing of such applications will be stipulated in the "performance pledges" of the Lands Department as a commitment to the public; and

(e) if the answers to points (b), (c) and (d) above are in the negative or uncertain, how the Government can convince the public that the provision of additional staff can really help speed up the supply of buildings and that the extra expenditure in this aspect is cost-effective?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, (a) Staff will be recruited during 1994-95, starting as early as possible.

(b) Means of speeding up transaction times are always being examined and we are confident that the additional staff will produce positive results. It is not possible to quantify the extent of improvement expected precisely as processing times vary considerably depending on the type and complexity of the individual cases.

(c) No time limit will be set for processing modifications and land exchanges from application to execution, as they vary greatly in type and complexity and frequently involve aspects outside the control of the Lands Department. However, the following time limits relating specifically to lease modifications are proposed:

(i) A reply to an application for a lease modification, advising the applicant whether the case can be entertained or not and identifying the case officer, will be given within three weeks of receipt of the application.

(ii) In straightforward cases, a letter of offer setting out the basic terms including the premium payable, or a letter rejecting the application, will be issued within 26 weeks from receipt of the application.

(iii) Once acceptance of an offer has been received, the legal document in respect of straightforward cases will be issued for execution within 13 weeks of acceptance.

(d) The time limits indicated in (c)(i), (ii) and (iii) above will be stipulated in the Performance Pledges of the Lands Department.

3348 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

(e) The Director of Lands is determined to ensure that the additional staff will help improve the processing of land transactions.

Prosecution of commercial crimes

11. DR HUANG CHEN-YA asked (in Chinese): Will the Government inform this Council:

(a) of the number of prosecutions instituted by the Legal Department in respect of commercial crimes in the past three years and the nature of the offences; and

(b) how many cases of prosecutions resulted in conviction; and how many cases were not proceeded with after prosecution had been instituted and what were the reasons for dropping the cases?

ATTORNEY GENERAL: Mr President, commercial crime has no precise legal meaning but is generally understood to include a broad range of offences from forgery to corruption. For the purpose of this question, I take the enquiry to relate to the more serious offences prosecuted in the High Court and District Court in the years 1991, 1992 and 1993.

Those offences were mainly offences under the Theft Ordinance (the most common offences being those of theft, deception and false accounting), conspiracy to defraud, and offences of forgery under the Crimes Ordinance.

There were some other less common offences charged under Ordinances relating to particular financial or industrial sectors of the economy, such as the Securities Ordinance, Commodities Trading Ordinance, offences relating to false trade descriptions under the Trade Description Ordinance and offences under the Money Lenders Ordinance. The majority of these offences are prosecuted in the Magistrates Court.

The figures relating to High Court and District Court commercial crime prosecutions for the last three years (based on individual defendants prosecuted) are as follows:

Defendants

Defendants prosecuted

Defendants convicted

Defendants acquitted

Defendants trial pending

who fled

after charge

1991 229 165 56 3 5 1992 226 128 79 14 5 1993 218 89 42 83 4

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3349

It should be borne in mind that these figures include some cases which were commenced outside the period (that is, prior to 1991) but concluded inside the period.

No statistics are kept on prosecutions which were instituted but which did not proceed to the conclusion of a trial. There are a variety of reasons why prosecutions are sometimes terminated, such as:

(a) a witness either not appearing or not giving satisfactory evidence expected of him or her;

(b) an important aspect of the evidence (usually a confession statement) being ruled inadmissible by the trial judge;

(c) the court halting the proceedings prior to trial on the basis that to subject the defendant to trial would be wrong for medical reasons; or

(d) new evidence or circumstances coming to light which make the prosecution unwarranted.

Disposal of beverage bottles

12. DR HUANG CHEN-YA asked (in Chinese): Will the Government inform this Council:

(a) of the amount of waste in the form of glass bottles and metal containers generated by the consumption of beer in Hong Kong each year;

(b) of the average cost involved in the disposal of such waste per year; and

(c) whether the Administration will introduce legislation requiring the recycling of containers, or adopt other measures in order to reduce the volume of such waste?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,

(a) Over 90% of locally filled glass beverage bottles are recovered for reuse by the beverage industry; this represents nearly 50% of glass beverage bottles circulating in the local market. This recovery rate

3350 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

compares favourably with overseas countries such as the United Kingdom (20%) and Canada (35%). The recovery rate of aluminium, commonly used for beverage cans, is also high (over 80%) compared with overseas countries such as the United Kingdom (40%) and the United States (40%).

(b) The average cost of disposal for glass and metals is about $70 per tonne and in 1992 about 146 000 tonnes of such wastes were disposed of.

(c) The effectiveness and appropriateness of economic instruments, legislation and voluntary arrangements for encouraging and enhancing waste recycling will be examined in the Waste Reduction Study, which commenced in February 1994.

Concessionary fares by public transport

13. MR MOSES CHENG asked (in Chinese): As concessionary fares presently offered by various public transport operators to the elderly are subject to different time and route restrictions, which are liable to cause confusion and inconvenience to the elderly, will the Government inform this Council:

(a) whether discussions have been held with these public transport operators, so that concessionary fares will be offered to the elderly on all routes and at all service times; and

(b) whether consideration will be given to the imposition of specific condition requiring the extension of concessionary fares for the elderly to all routes at all service times during future discussions between the Government and the public transport operators on the renewal of franchise?

SECRETARY FOR TRANSPORT: Mr President, with a few exceptions, concessionary fare schemes provided by public transport operators for the elderly have no time or route restrictions. Details are attached. We have held discussions with the operators, and will continue to encourage them, to enhance their concessionary fare schemes as far as possible.

Concessionary fare schemes are offered by public transprot operators on a voluntary basis. The Administration's contribution is through the waiving of annual licence fees and rentals. We have no intention to make concessionary fare schemes a condition of franchise renewal since this would make such schemes mandatory and, as such, could give franchisees justification to seek higher fares so as to recoup the revenue foregone.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3351 Concessionary fares for senior citizens

Ferry

Star Ferry - Free travel for passengers aged 65 or above on all three Star Ferry services.

Hong Kong and Yaumati Ferry

Rail

- Half fares for passengers aged 65 or above from 10:00 am to 4:00 pm between Mondays and Fridays (except public holidays). Excluding deluxe class, hoverferry and new town services.

KCRC/LRT - Half fares for passengers aged 65 or above, both single ride and stored value tickets.

MTR - About half fares for passengers aged 65 or above using Senior Citizen Common Stored Value Ticket. No discount

on single-ride tickets or southbound trips made between

8:00 am to 9:00 am from Mondays to Fridays.

Bus

Kowloon Motor Bus - Half fares for passengers aged 65 or above on all services, except airport services.

China Motor Bus - Half fares for passengers aged 65 or above, from 10 am on weekdays and all-day on Sundays and public holidays, on

all services except:

(a) air-conditioned services;

(b) cross harbour services; and

(c) Island Eastern Corridor services.

New Lantao Bus - Half fares for passengers aged 65 or above between Mondays and Saturdays (except public holidays) on all

New Lantao Bus services.

3352 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

Citybus - Half fares for passengers aged 60 or above on Hong Kong Island routes; half fares for passengers aged 65 or above on

cross harbour routes jointly operated with Kowloon Motor

Bus.

Hong Kong

Tramways

Waste paper recycling

- Half fares for passengers aged 65 or above.

14. REV FUNG CHI-WOOD asked (in Chinese): With regard to the policy of recovery of waste paper, will the Government inform this Council:

(a) of the quantities of waste paper which could have been recovered but eventually discarded as a result of the closing down in recent years of a number of waste paper recycling firms; and of the cost involved in the disposal of such discarded waste paper;

(b) of the statistics showing the quantities of the waste paper that have been imported into and exported from the territory and whether it can explain the reasons for the phenomenon that local waste paper has been exported for recycling overseas while waste paper recycling manufacturers in the territory have to import waste paper as manufacturing materials from overseas, thus raising the cost of operation;

(c) whether any study has been conducted to examine the difficulties in running the business of recovering and recycling waste paper in the territory; and

(d) whether any administrative measures or plans for providing financial assistance will be adopted in order to promote the industry of recovering and recycling waste paper, thus reducing the total quantities of discarded waste paper in the territory?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,

(a) As far as we are aware, no local waste paper recycling firms have closed down in recent years. The recovery rate of waste paper in Hong Kong was around 55% in 1993, a rate which is high compared with developed countries. Locally recovered waste paper is either recycled at one of the four waste paper recycling plants in the territory, or exported for recycling overseas. The quantity of waste paper recycled locally has increased by nearly 70%, from 150 000 tonnes in 1990 to 247 000 tonnes in 1993, while the amount of

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3353

waste paper exported for recycling has dropped by nearly 30% from 540 000 tonnes to 383 000 tonnes over the same period.

(b) 57 000 tonnes of waste paper were imported in 1993 while 383 000 tonnes were exported. Because the quality and nature of some categories of imported waste paper is higher, a certain amount of imported waste paper is used in two of the four local recycling plants to enhance the quality of paper produced.

(c) No such study has been conducted. The difficulties of operating a waste paper recycling and recovery business will be examined in the Waste Reduction Study, which commenced in February 1994.

(d) We have adopted the following administrative measures to encourage waste paper recovery:

(i) comprehensive guidelines on how to initiate and organize waste paper separation and collection programmes in residential buildings and office premises have been issued; and

(ii) a telephone hotline service (835 1233) to provide the public with specific advice and assistance on how to set up a waste separation programme and lists of waste paper collectors and recyclers has been introduced.

So far over 90% of government departments, more than 220 public housing estates and 400 private organizations/companies have organized their own collection scheme to separate waste paper from other wastes for recycling. These voluntary waste paper separation schemes have reduced the cost of waste paper recovery and are contributing to the competitiveness of the local waste paper industry.

The effectiveness and appropriateness of using economic instruments such as financial assistance to promote and encourage waste recovery and recycling activities will also be examined in the Waste Reduction Study. In the meantime, we are planning to introduce charging for the disposal of privately collected waste at landfills to encourage waste producers to reduce waste generation.

Drug addiction treatment centre

15. DR LAM KUI-CHUN asked: Section 3(2) of the Drug Addicts Treatment and Rehabilitation Ordinance (Cap. 326) provides that the Governor, on the application of an owner of a place, may by order declare the place to be an

3354 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

addiction treatment centre for the detention, custody, treatment, care and rehabilitation of addicts. Will the Administration inform this Council:

(a) of the criteria adopted for declaring a place to be an addiction treatment centre;

(b) whether it is aware that some institutions are performing the functions of an addiction treatment centre without having applied to become or been declared to be addiction treatment centres; if so, should these institutions be required to apply for such declaration in order that they are not regarded as operating illegally; and

(c) in order to provide flexibility to the operator as well as to cater for possible change in the addresses of the centres, whether consideration will be given to amending the Ordinance so that, instead of declaring a particular place to be an addiction treatment centre, legitimate institutions offering such services are so declared?

SECRETARY FOR SECURITY: Mr President,

(a) Applications to declare a place an addiction treatment centre are considered on their individual merits; there are no laid-down criteria.

(b) We are aware that some institutions are performing functions similar to those of an addiction treatment centre, without having applied to become, or been declared to be, addiction treatment centres. The Drug Addicts Treatment and Rehabilitation Ordinance does not preclude the operation of such institutions; they are not operating illegally.

(c) We are reviewing the Drug Addicts Treatment and Rehabilitation Ordinance and will take into consideration this suggestion.

Overtime work

16. DR CONRAD LAM asked (in Chinese): According to the 1986 By-census carried out by the Census and Statistics Department, 66.4% of those who were still in employment at the age of 60 or above had to work more than 45 hours per week on average. The situation of overtime work was quite serious among women employees aged 60 or above as the average weekly working hours of 20 000 of them far exceeded the limit prescribed by the Employment Ordinance. Will the government inform this Council:

(a) whether such working conditions have changed recently; if so, what the details are;

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3355

(b) what measures are there to deal with the problem of overtime work of elderly people; and

(c) how the Government is going to enforce the law to safeguard the interest of the elderly women who have to work overtime?

SECRETARY FOR EDUCATION AND MANPOWER: Mr President,

(a) According to the result of the General Household Survey conducted by the Census and Statistics Department in the first quarter of 1993, 65.5% of the employed persons aged 60 and over worked 45 or more hours per week. Of these, 67.8% of the male employed persons and 57.3% of the female employed persons worked 45 or more hours per week.

(b) At present, there is no ILO convention regulating the working hours of elderly people. The same approach is also adopted in Hong Kong. Nevertheless, the number of hours of work of women employees in industrial undertakings is governed by the Women and Young Persons (Industry) Regulations under the Employment Ordinance. All female employees are covered, irrespective of age, as long as they are employed in industrial undertakings. Under this Regulation, female employees shall not work more than eight hours in a day and 48 hours in a week, though restricted overtime work is permitted.

(c) Employers of industrial undertakings have to report to the Commissioner for Labour if the working hours of their female employees exceed the limit prescribed by the Women and Young Persons (Industry) Regulations. Regular inspections to industrial undertakings are conducted by the Labour Inspectorate to ensure compliance.

Juvenile crime

17. DR TANG SIU-TONG asked (in Chinese): According to statistics released by the police on 14 March 1994, the number of criminal cases involving youngsters below the age of 21 in 1993 has shown a 4.9% increase over that of 1992. Will the Government inform this Council of:

(a) the age group with the greatest number of young and juvenile delinquents as revealed in the 1993 figures; how it compares with the situation in the past two years;

3356 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

(b) the respective number of young and juvenile delinquent cases (classified by the nature of crime) in each district and the districts that have shown a rising trend in young and juvenile delinquency; and

(c) specific measures which the police and other government departments have in hand to curb the upward trend of young and juvenile delinquency?

SECRETARY FOR SECURITY: Mr President,

(a) The age group 16 to 20 accounted for 57% of the total number of people aged under 21 arrested for crime in 1993. In both 1991 and 1992, the same age group accounted for about 54% of total arrests of young persons.

(b) A summary of criminal cases in the past three years involving young people in each police district and by type of offence is attached. (Enclosure)

Between 1991 and 1993, Wong Tai Sin, Kwai Tsing and Tai Po police districts showed an increase each year in the number of criminal cases involving people below the age of 21.

(c) The extent of juvenile crime is a cause for concern, and particularly the involvement of students in crime. To tackle this, the police have dedicated School Liaison Officers who visit schools, deliver lectures on crime prevention and maintain close contact with school social workers and teachers to deal with delinquent students. District Police Commanders also deploy additional resources to the vicinity of schools whenever necessary.

Apart from the police, the Social Welfare Department subvents Children and Youth Centres to provide services to youngsters. It also subvents Outreaching Social Work Teams, helping young people in need to integrate into the community. The department will introduce in 1994-95 to a new community based treatment programme to provide structured training to young people at risk, to stimulate their interest in school or in work, and to develop their social skills.

Concurrently, the Education Department has issued guidelines to, and is providing in-service training courses for, school discipline teachers, to help them deal with delinquent students and students who are involved in triad activities in school.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3357

The Police Superintendent's Discretion Scheme helps rehabilitate offenders under the age of 17 by giving Police Superintendents the discretion to caution, instead of prosecuting young offenders; aftercare service to these young offenders will be provided by both the Police Juvenile Protection Section and family services centres of the Social Welfare Department.

The Fight Crime Committee has commissioned a study into the social causes of juvenile crime. This research is expected to be completed in the middle of this year, and it should suggest some new initiatives which we might take to tackle the problem of juvenile crime.

Enclosure

Number of Detected OVERALL CRIMES

Involving Juveniles and Young Persons

No. of detected cases

Police district 1991 1992 1993

Central 212 208 209 Wan Chai 402 336 435 Western 447 371 549 Eastern 822 698 698 Wong Tai Sin 600 603 686 Sau Mau Ping 839 726 557 Kwun Tong 572 479 717 Yau Tsim 568 540 595 Mong Kok 520 425 393 Sham Shui Po 730 797 673 Kowloon City 706 562 593 Airport 29 12 9 Tai Po 353 412 823* Frontier/Border 338 397 52* Yuen Long 571 546 595 Tsuen Wan 782 735 736 Sha Tin 1 011 1 085 996 Kwai Tsing 533 561 690 Tuen Mun 1 073 1 054 1 080 Marine 162 136 126 CCB 5 2 1 Total 11 275 10 685 11 213

* As from June 1993, Sheung Shui Division was transferred from Frontier District to Tai Po District, and Frontier District was renamed Border District. Care should be taken when comparing figures of these districts.

3358 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

Number of Detected SHOP THEFTS

Involving Juveniles and Young Persons

No. of detected cases

Police district 1991 1992 1993

Central 46 57 56 Wan Chai 80 79 117 Western 80 73 78 Eastern 194 134 184 Wong Tai Sin 132 105 129 Sau Mau Ping 143 99 78 Kwun Tong 63 45 87 Yau Tsim 85 98 103 Mong Kok 77 35 55 Sham Shui Po 72 99 76 Kowloon City 67 95 85 Airport 3 4 5 Tai Po 87 91 208*

Frontier/Border 56 64 1* Yuen Long 73 94 116 Tsuen Wan 177 182 189 Sha Tin 234 205 233 Kwai Tsing 52 73 74 Tuen Mun 277 262 217 Marine 2 11 4 CCB 0 0 0 Total 2 000 1 905 2 095

* As from June 1993, Sheung Shui Division was transferred from Frontier District to Tai Po District, and Frontier District was renamed Border District. Care should be taken when comparing figures of these districts.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3359

Number of Detected MISCELLANEOUS THEFTS

Involving Juveniles and Young Persons

No. of detected cases

Police district 1991 1992 1993

Central 43 46 42 Wan Chai 55 60 46 Western 86 63 78 Eastern 99 85 73 Wong Tai Sin 75 79 69 Sau Mau Ping 73 82 62 Kwun Tong 57 60 63 Yau Tsim 71 91 81 Mong Kok 49 51 41 Sham Shui Po 82 91 69 Kowloon City 98 69 80 Airport 5 1 1 Tai Po 77 111 182*

Frontier/Border 87 120 5* Yuen Long 106 87 94 Tsuen Wan 87 86 72 Sha Tin 164 166 166 Kwai Tsing 50 54 70 Tuen Mun 143 116 144 Marine 30 18 9 CCB 0 1 0 Total 1 537 1 537 1 447

* As from June 1993, Sheung Shui Division was transferred from Frontier District to Tai Po District, and Frontier District was renamed Border District. Care should be taken when comparing figures of these districts.

3360 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

Number of Detected ROBBERIES

Involving Juveniles and Young Persons

No. of detected cases

Police district 1991 1992 1993

Central 8 12 8 Wan Chai 26 24 26 Western 32 45 30 Eastern 107 81 48 Wong Tai Sin 47 49 75 Sau Mau Ping 74 104 57 Kwun Tong 63 43 75 Yau Tsim 35 40 71 Mong Kok 98 61 34 Sham Shui Po 98 108 81 Kowloon City 83 51 65 Airport 0 0 0 Tai Po 22 47 81*

Frontier/Border 26 21 5* Yuen Long 78 53 43 Tsuen Wan 62 68 58 Sha Tin 162 120 103 Kwai Tsing 73 61 91 Tuen Mun 75 90 97 Marine 2 8 2 CCB 0 0 0 Total 1 171 1 086 1 050

* As from June 1993, Sheung Shui Division was transferred from Frontier District to Tai Po District, and Frontier District was renamed Border District. Care should be taken when comparing figures of these districts.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3361

Number of Detected WOUNDINGS & SERIOUS ASSAULTS

Involving Juveniles and Young Persons

No. of detected cases

Police district 1991 1992 1993

Central 16 16 9 Wan Chai 26 23 24 Western 34 22 51 Eastern 60 48 45 Wong Tai Sin 65 46 51 Sau Mau Ping 67 65 76 Kwun Tong 46 37 51 Yau Tsim 34 46 63 Mong Kok 37 20 28 Sham Shui Po 34 51 40 Kowloon City 31 25 46 Airport 0 1 0 Tai Po 19 22 55*

Frontier/Border 13 20 2* Yuen Long 43 44 33 Tsuen Wan 48 27 46 Sha Tin 75 61 64 Kwai Tsing 80 51 62 Tuen Mun 88 69 80 Marine 31 14 11 CCB 0 0 0 Total 847 708 837

* As from June 1993, Sheung Shui Division was transferred from Frontier District to Tai Po District, and Frontier District was renamed Border District. Care should be taken when comparing figures of these districts.

3362 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

Number of Detected UNLAWFUL SOCIETY OFFENCES

Involving Juveniles and Young Persons

No. of detected cases

Police district 1991 1992 1993

Central 9 16 13 Wan Chai 24 19 25 Western 31 27 26 Eastern 77 79 35 Wong Tai Sin 15 42 56 Sau Mau Ping 59 73 46 Kwun Tong 69 43 134 Yau Tsim 20 12 10 Mong Kok 28 26 18 Sham Shui Po 22 85 45 Kowloon City 101 47 25 Airport 20 1 0 Tai Po 7 7 16*

Frontier/Border 29 11 0* Yuen Long 24 32 31 Tsuen Wan 29 25 41 Sha Tin 31 207 78 Kwai Tsing 28 32 68 Tuen Mun 29 103 88 Marine 3 5 11 CCB 0 0 0 Total 655 892 766

* As from June 1993, Sheung Shui Division was transferred from Frontier District to Tai Po District, and Frontier District was renamed Border District. Care should be taken when comparing figures of these districts.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3363

Number of Detected BURGLARIES

Involving Juveniles and Young Persons

No. of detected cases

Police district 1991 1992 1993

Central 4 5 10 Wan Chai 18 10 24 Western 36 19 51 Eastern 36 18 41 Wong Tai Sin 19 49 42 Sau Mau Ping 37 36 25 Kwun Tong 22 25 49 Yau Tsim 14 13 18 Mong Kok 13 16 14 Sham Shui Po 43 26 38 Kowloon City 27 22 21 Airport 0 0 0 Tai Po 18 25 11*

Frontier/Border 15 18 9* Yuen Long 26 28 58 Tsuen Wan 49 20 43 Sha Tin 56 69 29 Kwai Tsing 30 45 53 Tuen Mun 45 44 71 Marine 34 13 25 CCB 0 0 0 Total 542 501 632

* As from June 1993, Sheung Shui Division was transferred from Frontier District to Tai Po District, and Frontier District was renamed Border District. Care should be taken when comparing figures of these districts.

Passenger departure tax

18. MR TAM YIU-CHUNG asked (in Chinese): Will the Government inform this Council:

(a) of the reasons why the Financial Secretary has proposed a reduction in the airport passenger departure tax for the current financial year but not the departure tax payable by passengers travelling via local ferry terminals including the Macau Ferry Terminal and the China Ferry Terminal and so on; and

(b) of the estimated revenue collected from the departure tax payable by sea passengers at present and the impact on the general revenue if such departure tax is to be reduced?

3364 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 SECRETARY FOR THE TREASURY: Mr Presdient,

(a) There is no departure tax for passengers leaving Hong Kong by sea equivalent to the Air Passenger Departure Tax on passengers departing by air. There is an embarkation fee payable by the owner of a ferry vessel in respect of each passenger embarking on the ferry vessel at a terminal. It is a fee based on the investment in providing and operating the marine ferry terminal facilities.

(b) The estimated revenue from embarkation fees for 1994-95 is around $288 million. The Administration considers that there is no case to reduce the current fee level which has not been adjusted since January 1993.

Hong Kong residents imprisoned in Thailand

19. MRS ELSIE TU asked: Will the Government inform this Council:

(a) Whether it is aware of the number of Hong Kong residents currently serving prison sentences in Thailand, and of the longest period any of them have remained in Thai prisons; and

(b) how many Hong Kong residents have been transferred from Thai prisons to Hong Kong prisons in the past five years?

SECRETARY FOR SECURITY: Mr President,

(a) There are at present 117 Hong Kong residents serving prison sentences in Thailand. Of these, the longest serving prisoner has been in prison in Thailand since May 1979.

(b) Thirteen prisoners have been transferred to Hong Kong prisons in the past five years.

First Reading of Bills

INLAND REVENUE (AMENDMENT) BILL 1994

DUTIABLE COMMODITIES (AMENDMENT) BILL 1994

GAMBLING (AMENDMENT) BILL 1994

SALE OF GOODS (AMENDMENT) BILL 1994

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3365 SUPPLY OF SERVICES (IMPLIED TERMS) BILL

UNCONSCIONABLE CONTRACTS BILL

CIVIL AVIATION (AIRCRAFT NOISE) (AMENDMENT) BILL 1994 ESTATE DUTY (AMENDMENT) BILL 1994

STAMP DUTY (AMENDMENT) BILL 1994

BUSINESS REGISTRATION (AMENDMENT) BILL 1994

MOTOR VEHICLES (FIRST REGISTRATION TAX) (AMENDMENT) BILL 1994

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

Second Reading of Bills

INLAND REVENUE (AMENDMENT) BILL 1994

THE FINANCIAL SECRETARY moved the Second Reading of: "A Bill to amend the Inland Revenue Ordinance."

He said: Mr President, I move that the Inland Revenue (Amendment) Bill 1994 be read the Second time.

The Secretary for the Treasury and I will be introducing six Bills this afternoon to give effect to some of the revenue-related proposals in this year's Budget. This is the first in the series. As these proposals have been fully covered in my Budget speech and the Second Reading debate on the Appropriation Bill 1994, we shall keep our introduction to the Bills brief.

The Bill now before Members seeks to make some major concessions in respect of salaries tax and corporate profits tax with effect from the 1994-95 year of assessment.

Clauses 2, 4 and 5 introduce a new allowance in respect of dependent grandparents resident in Hong Kong for whom no dependent parent allowance is claimed.

Clause 6 of the Bill reduces the top marginal tax rate from 25% to 20%.

3366 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

Clause 7 of the Bill amends the Fourth Schedule of the Ordinance in order to increase substantially various salaries tax allowances and to set the level of the new dependent grandparent allowance. Specifically, the basic allowance and the married person's allowance will go up by about 28% to $72,000 and $144,000 respectively, while allowances for dependent children, dependent parents and single parents will be increased by about 18%.

As I indicated in my Budget speech, the combination of these salaries tax concessions will result in reduced tax bills for 1 130 000 salaries taxpayers; and another 420 000 taxpayers will fall out of the tax net altogether.

Clause 8 of the Bill reduces the corporate profits tax rate from 17.5% to 16.5%, thus restoring it to the pre-1992 level. This measure is intended to enhance Hong Kong's competitiveness as a regional business centre.

We estimate that the total cost to general revenue of the concessions covered by this Bill will be $4.8 billion in 1994-95 and $30.7 billion up to 1997-98.

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

DUTIABLE COMMODITIES (AMENDMENT) BILL 1994

THE FINANCIAL SECRETARY moved the Second Reading of: "A Bill to amend the Dutiable Commodities Ordinance."

He said: Mr President, I move that the Dutiable Commodities (Amendment) Bill 1994 be read the Second time.

This Bill has two main purposes. First, it introduces a full ad valorem duty system for alcohol — a simpler and fairer system than the old one. Under the proposal, all alcoholic beverages and other ethyl alcohol products will be classified into three broad categories for duty purposes by reference to their alcoholic strength and ingredients. The duty charged, being ad valorem in nature, will be commensurate with the value of a product. This rectifies an anomaly under the old system whereby the duty payable on a cheaper product was higher relative to its cost than a product at the upper end.

The new system is also more clearly non-discriminatory and compatible with the GATT principles of non-discrimination and national treatment. We have now done away completely with the previous distinction between European-type and Chinese-type liquors. Moreover, the proposal to calculate ad valorem duty on the export price of an imported product and the ex-manufacturer price of a local one will have the effect of creating an even more level playing field for these two types of products. We are in discussions with the local beer industry to ensure that this will in fact be the result.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3367

As a result of the proposed reform measure, a broad range of alcoholic beverages at the cheaper end of the market will enjoy a duty reduction. Products at the higher end of the market will be required to pay more in duty. It seems to us fairer than the previous system.

The Bill before Members also seeks to increase the specific duty on hydrocarbon oils by 8.5% in line with inflation. I should reiterate that this is intended merely to maintain the real value of the duty. Failure to do so would only add extra pressure on our congested roads.

The introduction of a full ad valorem duty system for alcoholic beverages and ethyl alcohol is revenue neutral in overall terms. The adjustment to the specific duty on hydrocarbon oils will not affect our revenue forecasts since they are not increases in real terms.

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

SALE OF GOODS (AMENDMENT) BILL 1994

THE SECRETARY FOR TRADE AND INDUSTRY moved the Second Reading of: "A Bill to amend the Sale of Goods Ordinance."

He said: Mr President, I move the Second Reading of the Sale of Goods (Amendment) Bill.

This Bill, together with the Supply of Services (Implied Terms) Bill and the Unconscionable Contracts Bill which I will move later today, seeks to implement recommendations made by the Law Reform Commission for the better protection of consumers.

At present, the Sale of Goods Ordinance provides that in contracts for the sale of goods, there should be an implied condition that the goods are of merchantable quality. The basic criterion for assessing merchantability is that the goods must be reasonably fit for the purpose for which goods of that kind are commonly bought. The Amendment Bill seeks to provide four additional criteria to better define merchantable quality. They include the appearance and finish of the goods, their freedom from defects, durability and safety.

We believe that these four additional criteria for assessing merchantable quality represent a fair summary of what a buyer can reasonably expect with regard to the quality of the goods. Once introduced, they will enhance the awareness of suppliers as to their obligation to ensure the merchantability of their goods. They will also provide guidelines to consumers and the Court in deciding whether any particular goods are of merchantable quality.

3368 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

The Bill also provides that, in a consumer contract, if the consumer has not been offered a reasonable opportunity to examine the goods, he is not deemed to have accepted the goods by the mere signing of an acceptance note. We hope to discourage the practice among sellers of treating the acceptance note signed by a consumer as reflecting acceptance of the goods.

With the proposed amendments, we hope to provide clearer guidelines as to the rights and obligations of the parties to a contract for the sale of goods.

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

GAMBLING (AMENDMENT) BILL 1994

THE SECRETARY FOR HOME AFFAIRS moved the Second Reading of: "A Bill to amend the Gambling Ordinance."

He said: Mr President, I move the Second Reading of the Gambling (Amendment) Bill 1994.

The Bill deals with two separate aspects of the Gambling Ordinance. First, mahjong playing as social recreation in licensed restaurants and clubs; and secondly participation in foreign lotteries promoted, conducted and managed outside Hong Kong.

Since the Gambling Ordinance was last amended in 1977, mahjong playing amongst friends in licensed restaurants and premises of social clubs, which are basically lawful societies sanctioned under the Societies Ordinance, has been allowed.

After the amendment of the Societies Ordinance in 1992, societies are no longer required to register with the Commissioner of Police. The registration requirement under the original Ordinance was replaced by a notification requirement which no longer has any bearing on the legality of a society. As such, there is no way to tell whether a society is a lawful society for the purpose of the Gambling Ordinance.

The Clubs (Safety of Premises) Ordinance was enacted in 1991 to regulate the safety of club premises. The licensing regime under this Ordinance requires the bona fides of clubs to be verified and properly established. As such it provides a better objective criteria in this particular respect than the amended Societies Ordinance. It is, therefore, proposed to amend the Gambling Ordinance so that lawful gaming is permitted in licensed restaurants or in clubs licensed under the Clubs (Safety of Premises) Ordinance.

To further regulate the operation of mahjong playing in licenses clubs and restaurants, it is proposed that management or employees of such establishments shall not be allowed to participate in mahjong game played by clients on the

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3369

premises. This is to prevent the operators from making profit in so doing. Clause 3 of the Bill amends section 3 of the Ordinance to achieve the above-mentioned purposes.

Regarding lotteries, Hong Kong residents at present can lawfully participate in local Mark Six Lottery and the foreign lotteries from those countries specified in the Fourth Schedule to the Gambling Regulations. The Fourth Schedule comprises 10 countries. It was made in 1977. The intention has been that more countries would be added onto the Fourth Schedule as and when necessary. However, in practice, it has not proved possible to devise objective criteria to determine which countries should be included in the Fourth Schedule to the exclusion of the others. We propose to repeal the Fourth Schedule so that all foreign lotteries would be put on an equal footing and would be subject to control under the Gambling Ordinance. We also propose to fine tune existing arrangements for Hong Kong residents to participate in foreign lotteries promoted, conducted and managed outside Hong Kong.

Clause 2 of the Bill amends the definition of lottery to include foreign lotteries which will be made subject to the control of the Gambling Ordinance. Clause 4 amends Section 11 of the Ordinance so that it shall not be unlawful to buy a ticket or to be in possession of a ticket in a foreign lottery. Clause 5 removes the offence of advertising a foreign lottery in a publication imported into Hong Kong. It is not considered appropriate and practicable to censor such publication for such a purpose.

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

SUPPLY OF SERVICES (IMPLIED TERMS) BILL

THE SECRETARY FOR TRADE AND INDUSTRY moved the Second Reading of: "A Bill to consolidate and amend the law with respect to the terms to be implied in contracts for the supply of services."

He said: Mr President, I move the Second Reading of the Supply of Services (Implied Terms) Bill.

This Bill is based on recommendations made by the Law Reform Commission. It seeks to codify some common law principles regarding contracts for the supply of services.

Under the Bill, a supplier of services is obliged to provide those services with reasonable care and skill and within a reasonable time. On the other hand, the buyer is required to pay a reasonable charge. We hope that with the codification of these common law principles, there would be greater clarity and overall consistency in their application.

3370 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

Parties to non-consumer contracts will be allowed to waive or vary these statutory obligations by mutual agreement. By so doing, we hope to strike a balance between protecting consumers and minimizing interference with commercial transactions.

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

UNCONSCIONABLE CONTRACTS BILL

THE SECRETARY FOR TRADE AND INDUSTRY moved the Second Reading of: "A Bill to empower courts to give relief in certain contracts found to be unconscionable."

He said: Mr President, I move the Second Reading of the Unconscionable Contracts Bill.

We believe that there is a need for legislation to protect consumers from unconscionable contract terms. The Bill seeks to empower the Court to rewrite or strike down unconscionable terms in consumer contracts. It provides judicial guidelines for the Court in determining unconscionability and in exercising its powers.

We believe that the Courts are in a position to grant the necessary relief to consumers, after taking into account the circumstances in which a consumer enters into a contract and the nature of that contract. Under the Bill, the Courts will have the following powers:

First, to refuse to enforce the contract;

Second, to enforce the remainder of the contract without the unconscionable part; and

Third, to revise, alter or limit the application of any unconscionable part of the contract.

The judicial guidelines for determining whether a contract term is unconscionable include:

First, the relative strengths of the bargaining positions of the consumer and the seller;

Second, whether the consumer was required to comply with conditions that were not reasonably necessary for protecting the legitimate interests of the seller;

Third, whether the consumer was able to understand any documents relating to the supply of the goods or services;

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3371

Fourth, whether the consumer experienced undue influence, pressure, or any unfair tactics against him; and

Fifth, the amount for which, and the circumstances under which, the consumer could have acquired identical goods or services from another seller.

There will be a one-year grace period after enactment of the Bill to enable the business community to consider their use of contracts in the sale of goods and supply of services to consumers and to make any necessary changes.

We hope that the enactment of this Bill, together with the Sale of Goods (Amendment) Bill 1994 and the Supply of Services (Implied Terms) Bill which I have just moved in this Council, will help strengthen the bargaining position of small consumers.

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

CIVIL AVIATION (AIRCRAFT NOISE) (AMENDMENT) BILL 1994

THE SECRETARY FOR ECONOMIC SERVICES moved the Second Reading of: "A Bill to amend the Civil Aviation (Aircraft Noise) Ordinance."

He said: Mr President, I move that the Civil Aviation (Aircraft Noise) (Amendment) Bill 1994 be read the Second time.

The Civil Aviation (Aircraft Noise) Ordinance specifies provisions to control the emission of noise by aircraft using our airport. Under this Ordinance, only subsonic jet aircraft in possession of recognized noise certification, or other documentary evidence indicating compliance with the noise control emission standards specified in Chapter 2 of Annex 16 to the Convention on International Civil Aviation, are permitted to land or take off at our airport at Kai Tak.

In line with measures adopted in a number of other territories, notably the countries of the European Union and in accordance with guidelines issued by the International Civil Aviation Organization (ICAO) we intend to implement a progressive phasing out of the older and more noisy models of aircraft from operating to or from Hong Kong. The Bill before Honourable Members proposes amendments to the principal Ordinance and its subsidiary legislation which, among other things, will enable the Governor to require aircraft using our international airport to comply with the more stringent standards. In practice, only newer and more modern aircraft types can meet these specifications.

3372 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

The more stringent provisions to be provided for in the amended Bill will be applied immediately to Hong Kong registered aircraft. While all aircraft currently on the Hong Kong register are able to comply with the proposed more stringent standards, introduction of compulsory compliance is considered necessary. As other countries tighten their noise control legislation, owners of older aircraft which do not meet the more stringent standards may seek out territories or jurisdictions where they can continue to register such aircraft. The proposed amendment will ensure that Hong Kong does not become a potential dumping ground for older, noisier aircraft.

In due course, the stricter noise control standards specified in the Bill will be extended to all foreign registered subsonic jet aircraft using our airport. In accordance with ICAO guidelines this second phase of implementation will take effect from a date after April 1995.

Currently some 10% of the aircraft operating at Kai Tak on a regular basis do not meet the standards we intend to set. We believe that application of the provisions in this Bill will bring about a progressive reduction in the noise disturbance caused by aircraft operating at the airport.

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

PRESIDENT: Secretary for Treasury, you have four Bills to move. If you wish, you can progress right through them.

ESTATE DUTY (AMENDMENT) BILL 1994

THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Estate Duty Ordinance."

He said: Mr President, I move that the Estate Duty (Amendment) Bill 1994 be read the Second time.

The Bill before Members adjusts the schedule of asset values for assessing estate duty so as to reduce the impact of the tax on relatively small estates. The exemption level for estate duty will be raised from $5 million to $5.5 million and the rates of duty payable on estates valued between $5.5 million and $7.5 million will be reduced.

In addition, the Bill introduces three other concessions. Clause 3 increases the exemption limit for gifts made by a deceased person within three years before the date of death from $100,000 to $200,000. Clause 4 excludes the value of the matrimonial home when determining the aggregate value of an estate for duty purposes. Finally, clause 5 increases the allowance for funeral expenses incurred in Hong Kong from $10,000 to $50,000.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3373

The estimated cost of these measures to general revenue will be $85 million in 1994-95 and about $425 million up to 1997-98.

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

STAMP DUTY (AMENDMENT) BILL 1994

THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Stamp Duty Ordinance."

He said: Mr President, I move that the Stamp Duty (Amendment) Bill 1994 be read the Second time.

This Bill seeks to adjust the rates of stamp duty payable on lower and medium-value flats. For properties with a value not exceeding $500,000, a fee of $100 will be payable. Above this level, stamp duty will be charged according to a sliding scale, subject to marginal relief. The threshold at which the 2.75% rate begins to apply will be raised from $1.5 million to $3 million. We estimate that some 100 000 properties will benefit from this tax concession. The cost of this measure to general revenue will amount to about $810 million in 1994-95 and $3.9 billion up to 1997-98.

The Bill also seeks to make a technical amendment. To facilitate the delivery of notices under the Stamp Duty Ordinance, clause 2 of the Bill empowers the Commissioner of Inland Revenue to issue such notices by ordinary mail other than registered mail.

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

BUSINESS REGISTRATION (AMENDMENT) BILL 1994

THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Business Registration Ordinance."

He said: Mr President, I move that the Business Registration (Amendment) Bill 1994 be read the Second time.

The Bill seeks to double the business registration fee from $1,000 to $2,000. This proposal has the beneficial effect of broadening our tax base and thus contributing to the stability of our revenue.

To provide relief to business with a small turnover, the Bill also increases the levels below which payment of business registration fee is exempt. A business will be exempt from the fee if its average monthly sales do not exceed $15,000; or where the business consists of rendering services, if its average monthly receipts do not exceed $4,000.

3374 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

Clause 6 empowers the Financial Secretary to revise minor fees and penalties payable under the Ordinance. In line with the usual practice, we shall table subsidiary legislation giving effect to future fee revisions before the Legislative Council.

Similar to a proposed amendment to the Stamp Duty Ordinance which I moved just now, clause 7 of the present Bill empowers the Commissioner of Inland Revenue to issue notices under the Business Registration Ordinance by ordinary mail other than registered mail.

The increase in business registration fee will generate additional revenue of $700 million in 1994-95 and $3.4 billion up to 1997-98.

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

MOTOR VEHICLES (FIRST REGISTRATION TAX) (AMENDMENT) BILL 1994

THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Motor Vehicles (First Registration Tax) Ordinance."

He said: Mr President, I move that the Motor Vehicles (First Registration Tax) (Amendment) Bill 1994 be read the Second time.

The Bill seeks to exempt electric vehicles registered within three years from 1 April 1994 from first registration tax. Electric vehicles are currently more expensive than fuel engined ones because of high development costs and low production levels. To underline the Government's resolve to promote environmentally friendly uses, the proposed exemption seeks to make electric vehicles more attractive by reducing their initial purchase cost. We hope that this will provide an impetus for more wide-spread use of these environmentally-friendly vehicles on our roads.

We shall assess the benefits of this concession towards the end of the three-year period to see whether it should be extended.

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

Resumption of debate on Second Reading which was moved on 2 June 1993 Question on Second Reading proposed.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3375

MR JAMES TO (in Cantonese): Mr President, a fire broke out in a bedspace apartment at Nam Cheong Street several years ago. This incident has aroused widespread concern about the safety of these apartments. The Bill before us today seeks to establish a licensing scheme to regulate the fire and building safety of bedspace apartments (or the so-called "caged accommodation"). The scheme is to be administered by the Secretary for Home Affairs constituted as the Bedspace Apartments Authority. Upon enactment of the Bill, an exemption period of up to two years will be given to enable the Authority to inspect all existing bedspace apartments and to advise the operators in writing on the improvement works required for licensing purpose and to enable the operators to carry out such works.

In order to comply with the licensing requirements, some bedspace apartments will have to reduce the number of existing bedspaces. In this connection, the Administration estimates that about 400 bedspaces will have to be given up, and the affected lodgers will be displaced and will need to be rehoused. The Administration will ensure that all displaced lodgers would be assisted in rehousing.

The Social Welfare Department will assist those affected lodgers aged 60 and above and the disabled through compassionate rehousing, residential care facilities for the elderly or hostels for single persons.

Those displaced lodgers not within the Social Welfare Department's purview will be eligible for admission into the singleton hostels established by the City and New Territories Administration (CNTA).

A Bills Committee, of which I am the Chairman, was set up last year to study the Bill. The Bills Committee has received representations from the Sham Shui Po District Board's Working Group on Bedspace Apartments, the Society for Community Organization, the Kei Oi Social Service Centre and other concerned groups. The Bills Committee held 11 meetings and met with representatives of the above bodies and with some representatives of bedspace apartment operators and lodgers.

The major points of concern made by the representatives and the issues raised for discussion with the Administration by the Bills Committee are grouped as follows:

(1) More efforts should be made by the authorities concerned to advise the bedspace apartment lodgers of the details and the requirements of compassionate rehousing and other social welfare assistance schemes so that they could make full use of such services. Publicity should be stepped up so that qualified lodgers could submit their applications and be rehoused as soon as possible.

(2) The Government should build new annexes to public housing blocks or renovate flats in public housing estates to increase the provisions

3376 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

of public housing units for single persons in the urban area. Open areas on the ground floor of urban public housing estates should be used to build more units and additional land should be made available to the Housing Authority or the Housing Society to provide more accommodation for the elderly. The number of single person hostels in each district should be in proportion to the number of bedspace apartment lodgers affected by the Bill.

(3) All hostels or staff quarters accommodating 12 persons or more should be subject to legislative control. Hostels accommodating up to 11 persons should be subject to regular inspection by the Fire Services Department.

(4) Effective measures should be taken to freeze the number of existing bedspace apartments. New bedspace apartments and hostels set up after the two-year grace period should be partitioned into small bedrooms to enhance privacy and sense of security of the lodgers. Such apartments had proved to be attractive to the lodgers. The minimum living space for each bedspace apartment lodger should be specified and only those bedspace apartments meeting the requirement of the minimum provision of living space could be granted licences. Voluntary agencies should be encouraged to provide outreach services for the lodgers.

(5) The implications of the introduction of the proposed legislation, for example, rent increases and the forced eviction of some of the lodgers should not be solved by the landlords and operators themselves. The Administration should rehouse all the existing lodgers in bedspace apartments.

(6) The Administration should consider purchasing some of the existing bedspace apartments for the introduction of the improvement measures.

(7) The special needs of the lodgers should be taken care of. Most of these people are old and weak, without any stable income and lacking family support. To rehouse them from the urban areas to the rural districts would land them in great difficulties. They would find the transportation fees high and the community support service insufficient. The Government therefore should try its best to rehouse them in the urban areas.

(8) The Government should consider introducing a scheme of rent subsidies to the existing lodgers who would remain in the bedspace apartments after the implementation of the licensing controls on bedspace apartments to meet the increased rent.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3377

Of the 11 meetings of the Bills Committee, the Administration has participated in nine of them. Most of the discussions were concentrated on the necessary improvements related to the fire and building safety requirements of bedspace apartments. An agreement has finally been reached on the following principles between the Bills Committee and the Administration:

(1) Although the CNTA does not have its own resources to resolve the rehousing problems, efforts will be made with the assistance of the Housing Department and the Social Welfare Department to rehouse about 1 600 of the existing 3 200 lodgers. The Administration undertakes that no one will be rendered homeless as a result of the implementation of the licensing scheme.

(2) At present, the CNTA has already obtained the information and personal particulars of about 80% of the existing lodgers in the bedspace apartments. Efforts will continue to be made to gather the information of the remaining 20%. Lodgers who are established to be living in bedspace apartments on 1 January 1994 will be covered by the rehousing exercise mentioned in subparagraph (1) above. Lodgers who are not included in the register, but who can produce reasonable evidence, that they were living in bedspace apartments on the cut-off date of 1 January 1994, will be eligible for consideration for rehousing.

In the course of the clause-by-clause examination of the Bill, the following areas of concern were raised and amendments to the Bill agreed by the Bills Committee and the Administration will be introduced at the Committee stage:

(1) Clause 26 of the Bill empowers the Authority to suspend appeals against decisions of the Authority to the Appeal Board. The Administration explained that it aimed to cater for circumstances whereby any suspension of the Authority's decision would impose a threat to public safety. Members suggested that unless there was immediate threat to public safety, the normal appeal procedures should be allowed. The Administration agreed to move an amendment to this clause to spell out more clearly the circumstances under which such power was to be exercised.

(2) New clause 30A — Members were concerned that security of tenure provisions in the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) would render it impossible for operators of bedspace apartments to comply with safety requirements under the proposed licensing scheme. The Administration agreed with the concern of Members and proposed a new clause 30A to deal with cases where bedspaces had to be removed in compliance with conditions imposed by the Authority. The application of the relevant provisions conferring security of tenure on tenants under the Landlord and

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Tenant (Consolidation) Ordinance would be excluded under such circumstances.

(3) Clauses 32(4) and 34(5) — The Administration proposed and Members agreed that the proposed penalties for breach of conditions in the certificate of exemption, would be reduced by half to reflect the relative gravity of the offences under these clauses and those of operating a bedspace apartment without a licence under clause 5.

Apart from the necessary amendments arising from discussions mentioned above, the Administration has also agreed to some minor and technical amendments including clearer definitions for "bedspace", "bedspace apartment", "flat" and "rental agreement" and so on and also a consequential amendment to the Hotel and Guesthouse Accommodation Ordinance to exclude its application to premises under the control of this Bill. The above proposed amendments will be moved by the Administration and myself later at the committee stage.

With the enactment of the Bill and the introduction of the licensing scheme, it is hoped that bedspace apartment lodgers will have safer homes to live in and those displaced will receive early rehousing assistance through the relevant departments of the Administration.

Mr President, I would like to take this opportunity to thank Members for sparing their time in participating in the lengthy meetings and for the efforts they have made in gathering the necessary information. I would also like to thank the authorities concerned which finally agreed to rehouse half of the number of the caged bedspace apartment lodgers.

With these remarks, I commend the Bedspace Apartments Bill to the Members on behalf of the Bills Committee.

MR LEE WING-TAT (in Cantonese): Mr President, what is the time limit on speeches for the Second Reading debate?

PRESIDENT: There is no recommendation by the House Committee limiting length of speeches, Mr LEE, so any Member has the full 15 minutes within Standing Orders.

MR LEE WING-TAT (in Cantonese): Mr President, I would like to talk about the background and the spirit of the Bedspace Apartments Bill. The Bill will be read the Second and Third time in this Council today. The official responsible for the Bill is the Secretary for Home Affairs. One cannot help but ask: Why should the problem of caged bedspace apartments be dealt with by the Secretary for Home Affairs and not the Secretary for Planning, Environment and Lands?

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The answer is shown by the Government's approach to this problem. The Government thinks that it is neither a housing issue nor a re-housing issue but an issue involving the fire and building safety of the bedspace apartments. Essentially, the Bill does not seek to solve the housing problem of bedspace apartment lodgers.

During the first several meetings of the Bills Committee, Mr LO Chi-wai, a representative of the City and New Territories Administration (CNTA), reiterated (at least 10 times) that the purpose of the Bill was not to deal with the re-housing of bedspace apartment lodgers but to make improvements in the areas of fire prevention and building safety.

I think the Government's policy on this issue is wrong. I urge the Government to undertake a comprehensive review of its policy towards bedspace apartment lodgers, including the re-housing of these lodgers. Why do I say that Government's policy is wrong? One reason is that the Government has never put bedspace apartment lodgers on the waiting list for re-housing. At present, only squatters, residents of temporary housing areas or residents affected by redevelopment clearance are eligible for re-housing. They will be re-housed gradually. Those who are not on the waiting list will not be re-housed no matter how appalling their living conditions are. Under the Housing Authority's housing allocation policy, priority will be given to those people who fall into the category of "committed demand."

From newspaper and media reports, we all know how wretched the living environment of bedspace apartment lodgers is. There is no partition between the bed spaces. The lodgers have no privacy at all. The so-called living space is one deck of a triple-deck bunk bed fenced off with wire meshes. That is why we call these people "caged lodgers". Their living conditions are slightly better than street sleepers. There are now between 4 000 and 6 000 such lodgers in Hong Kong. However, neither the Housing Authority nor the Government has ever given any thought to re-housing them. Meanwhile, the Housing Authority allocates over 5 000 public housing units to civil servants annually. How very fortunate these civil servants are compared with the bedspace apartment lodgers! There is a world of difference between these two groups of people insofar as the housing benefit is concerned.

The Housing Authority has made an upward adjustment of 8.5% when revising this year's income limit for applicants. But property prices and rents in the private sector have surely gone up by more than 8.5% in this period. We often hear officials of the Housing Authority say that the income limit must not be raised sharply because of insufficient resources. Or else, more people will become eligible for public housing and the Housing Authority will not be able to cope with the increasing demand. Well then, why can we not commit more resources and build more units to re-house these people? The Government is actually resorting to the method of keeping the demand low. It is bringing supply and demand in balance by keeping the waiting list shorter than it should be. The bedspace apartment lodgers are the most neglected of all!

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Some bedspace apartment lodgers often tell me that their re-housing prospect depends mainly on who the developer will be. If the developer happens to be the Land Development Corporation or the Housing Society, then they will probably be re-housed in the nearby rental flats or in far-away rental flats owned by the Housing Authority. If the developer happens to be a private one, who has no obligation under existing law to find alternative accommodation for evicted tenants, the affected lodgers will normally be paid a few thousand dollars — or, if he is lucky, $10,000 — in compensation. However, it is difficult for them to find a bed space in a nearby location with the same rent as before. Some of them will end up sleeping in the street.

Honourable Members, can we continue to tolerate the existence of the bedspace apartments? Can we continue to tolerate the appalling living conditions in which 10 to 20 bunk beds are placed close to one another? Has the Government taken a square look at the problem? Does the Government not consider it to be disgraceful? The Government said in his policy address that all hill-side squatter huts would have disappeared by 1995- 96. By the end of 1996, there will be no more people living in hill-side squatter huts. Why did he not also promise to solve the problem of bedspace apartments by 1997? Why has the Secretary for Planning, Environment and Lands not said anything about the problem?

When the Bill was being scrutinized, I stressed on several occasions that the Bill only served the purpose of "patching" and it would not fully solve the problem. I suggested that the Government should consider solving the problem of bedspace apartments in the same way as it did in the case of the hill-side squatter huts. I remember that the Housing Department had conducted a large-scale registration of hill-side squatter huts in 1984-85. Then the number of squatter huts was frozen. A 10-year plan was drawn up and all hill-side squatter huts would be cleared gradually. By the end of 1996, there will be nobody living on these dangerous slopes. Why can the Government not deal with the problem of bedspace apartments in the same way?

I suggest that the Government should, first of all, register all of bedspace apartment lodgers in the territority. The City and New Territories Administration (CNTA) has in fact already done so. This is a step towards freezing the number of bedspace apartment lodgers. Next, all registered lodgers will be put on the Housing Authority's waiting list. Thirdly, these 4 000 to 6 000 lodgers should be re-housed by and by, with priority given to elderly singletons, the mentally ill, the disabled, the senile and the destitute.

We often say proudly that Hong Kong ranks tenth in the world's strongest economy. We are spending $200 billion to build a new airport. The Government spends more than $100 billion annually. Why are we hesitant and indecisive about the problem of bedspace apartments? Why are we tolerating the continuation of the problem? I hope that the Government will give some thought to whether we should make policy changes to cause this disgraceful problem to disappear.

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Mr President, lastly, I would like to talk about the problem of resources. The Government reiterates that it does not have sufficient resources. But the truth is not so. The reclamation projects in West Kowloon will yield 323 hectares of land. One-third of this will be reserved for the construction of the West Kowloon Highway and related projects. But only 13.25 hectares, or 4%, will be for the construction of public housing. How can we solve the problem of over-crowded living conditions in Mong Kok, Yau Ma Tei, Tsim Sha Tsui and To Kwa Wan when the supply of land is so little? The redevelopment of the Kai Tak Airport site and the Kowloon Bay reclamation projects will yield 570 hectares of land by the year 2000. Again, a small portion, only 44 hectares, will be made available to the Housing Authority for the construction of public housing. I would like to ask the Secretary for Planning, Environment and Lands if this is the correct approach to solve the problem? When the Government sells land to private developers, does it think of those who are living in the bedspace apartments and tenement buildings with only wooden board partitions between cubicles? They have no privacy at all. Does the Government care about the needs of these people? With these 13 hectares and the subsequent 44 hectares of land, we can probably build 40 000 public housing units which, compared with the acute shortage of housing, are like a drop in the ocean. I urge the Government to raise sharply the proportion of land made available for the construction of public housing in the two said locations. I also hope that the Secretary for Planning, Environment and Lands will allow the Housing Authority and the Housing Society to use their discretion to raise housing density so that more units may be built on the same acreage of land.

As far as I know, the Government has recently made some positive moves. A working group led by Mr HUI Yin-fat has identified four or five small plots of land for building homes for elderly singletons. This will solve the housing problem for 7 000 of them. But I would like to tell the Government that 50 900 homes of this kind will be needed between 1994-95 and 1998-99. What are we to do about the housing problem for the other 40 000-plus elderly singletons? I very much hope that the Government will do some careful thinking. Whom should our housing and land policies serve? Property developers or people with pressing housing needs?

When the Government unveils its measures against property speculation in June/July, I do not want to hear it say how it is helping private developers to build more homes. I want to hear it say that it is taking practical steps to help those who are living in a wretched environment — for example, those living in bedspace apartment — to move into public housing.

3382 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

SECRETARY FOR HOME AFFAIRS: Mr President, I am grateful to the Honourable James TO and his colleagues on the Bills Committee to study the Bedspace Apartments Bill for their wise counsel and the time they have spent in examining the Bill.

The Bill introduces a statutory licensing regime to regulate the fire and building safety of bedspace apartments. Bedspace apartments are premises which comprise bedspaces and which cater for the needs of people who are less well-off and hence opt for a more basic type of accommodation which is more affordable. The living conditions in these apartments have often been overlooked and occupants are exposed to greater fire and safety risks. Upon full implementation of the licensing scheme, occupants will live in vastly less overcrowded conditions which also meet both the fire and building safety standards.

As mentioned by both the Honourable James TO and the Honourable LEE Wing-tat, Members of the Bills Committee have spent considerable time in discussing the re housing of bedspace apartment lodgers. I would like to confirm to this Council that the Government wil continue to assist lodgers of bedspace apartments with re-housing in public housing or hostels and that no one will be rendered homeless as a result of the implementation of this scheme. The Social Welfare Department is responsible for processing applications for compassionate re-housing and admission into welfare institutions. Those lodgers who are outside Social Welfare's purview may apply for admission into singleton hostels of the City and New Territories Administration. We will step up publicity to make sure that lodgers are fully aware of the way of assistance offered. Due mainly to government efforts the population in bedspace apartments has now decreased to 3 020 compared to 4 000 in 1990-91. The Government has committed to assist about half of the existing lodgers to be re-housed either in public housing or welfare institutions or hostels. At the end of the day, we do see the number of lodgers in bedspace apartments which are fully licensed and renovated to conform to our standard of fire and building safety being reduced to around 1 600.

Members of the Bills Committee have given meticulous attention to the scrutiny of the Bill, as a result some Committee stage amendments will be introduced later on. I wish also to thank the Law Draftsman for his unfailing support without which this legislative process would have taken much longer to complete.

Mr President, I recommend the Bedspace Apartments Bill to Honourable Members. Question on the Second Reading of the Bill put and agreed to.

Bill read the Second time.

HONG KONG LEGISLATIVE COUNCIL — 27 April 1994 3383 Bill committee to a Committee of the whole Council pursuant to Standing Order 43(1). WASTE DISPOSAL (AMENDMENT) BILL 1993

Resumption of debate on Second Reading which was moved on 27 October 1993 Question on Second Reading proposed.

MR ANDREW WONG (in Cantonese): Mr President, the Livestock Waste Control Scheme enacted in 1987 prohibited livestock keeping in the urban areas in Hong Kong and Kowloon and in the new town areas and laid down a phased control scheme providing that livestock farmers who operate in the Control Areas must comply with the specified discharge standards and regulations relating to waste disposal. Besides, farmers are entitled to a capital grant and to a low-interest loan to meet the costs for the installation of waste disposal facilities. The farmers who decided to close their operation would be entitled to an ex gratia allowance.

Due to the objections from farmers of the livestock trade, the authority concerned agreed that the controls would be implemented only in the areas covered by the first stage of the Scheme's first phase, namely Tolo Harbour, Mui Wo and Angler's Beach, and not in other Control Areas until a review of the Scheme was completed. The review was completed in 1993 and the revised Scheme includes the following four points:

(1) a farm licensing scheme is to be introduced to improve control over livestock keeping;

(2) the Prohibition Areas are to be expanded to avoid situation of incompatible land uses. However, existing livestock farms in operation will be exempted from this requirement and allowed to continue their operation. These areas will be called Restriction Areas. In other words, there will be three kinds of areas, namely Prohibition Areas, Restriction Areas and Control Areas;

(3) the discharge standard for Biochemical Oxygen Demand and Suspended Solids Discharge (BOD:SS) will be improved in phases with a view to attaining the ratio of 50:50; and

(4) the level of capital grant will be increased substantially to assist farmers to install waste treatment facilities.

The Waste Disposal (Amendment) Bill 1993 and the Public Health (Animals and Birds) (Amendment) Bill 1993 provide for respectively the strengthening of control over livestock farms, livestock waste disposal and

3384 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

regulation of the livestock trade. These two Bills have only dealt with points (1) and (2) above, namely the licensing system and the expansion of the Prohibition Areas. The third point, that is, the phased improvement of the discharge standard, can only be provided for by the rules to be submitted to this Council (that is, subsidiary legislation). As regards the fourth point, the Finance Committee of this Council has already approved last year the increase of capital grant for the installation of basic waste treatment facilities. The rate for pig farmers, for example, has been increased from $120 per sq m to $225 per sq m.

These two Bills were submitted to this Council on 27 October 1993, and a Bills Committee composed of eight Members was subsequently formed to examine the Bills. The Committee started its work on 8 December and have convened nine meetings, of which seven are with the Administration, and visited three livestock farms. The Committee has also examined 10 representations submitted by representatives of pig, chicken, dairy cattle and racing pigeon farmers and had meetings with them. As the chairman of the Bills Committee, I would like to take this opportunity to express my gratitude to the Committee Members for the time and effort they spent on the discussion. I must also thank the Administration for its co-operation and all the relevant bodies for their views and participation in the scrutinizing work of the Committee.

Mr President, I will now briefly outline the main points discussed by the Bills Committee.

First, on the licensing system, a major issue that has been discussed thoroughly. Under the proposed licensing system, all livestock farmers are required to apply to the Director of Agriculture and Fisheries, according to a schedule to be laid down by the prospective rules, for livestock keeping licences. A licence will be issued if the Director is satisfied that a proper waste treatment system capable of attaining the appropriate discharge standard has been installed and other licensing conditions have been complied with. To enable farmers to gain experience in operating the new treatment facilities effectively, they will be allowed to meet the 50:50 discharge standard in phases over a three-year period from the granting of licence. In technical terms, the BOD:SS discharge standard for all farms will be set initially at 250:250 milligrams per litre. This standard will then be revised to 100:100 and ultimately to 50:50.

Certain bodies consider that the proposal for the licensing system should be withdrawn and should not be implemented. They consider that the various waste treatment systems such as the pig-on-litter method are not cost-effective and the 50:50 discharge standard is difficult to comply with. These bodies worry that if the licensing system is approved and implemented in its proposed form, the livestock trade will suffer a very heavy blow and most of the farms will have to be closed. They have suggested that the authority concerned should unconditionally grant licences to all the existing farmers and give them a grace period such that they can gradually improve their waste treatment systems.

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The Administration has explained that the pollution caused by untreated livestock waste emitting from the existing livestock farms is equivalent to that caused by one million people, and this kind of livestock waste is one of the main sources of organic pollution in Hong Kong. The proposed licensing system can effectively ameliorate the situation, while farmers can freely choose to use any type of waste treatment system. Private farms may not necessarily use the pig-on-litter method as they may choose to use the dry muck-out method or other combined methods. The demonstration project on private farms has already proved the technical feasibility and the attainability of the required 50:50 discharge standard. Although many farmers think that they may not be able to attain the required standard due to the technical difficulties and low cost effectiveness, the phased implementation of the Scheme in a three-year period will give farmers sufficient time to acquire the experience for operating the waste treatment systems. It is difficult to predict now the Scheme's impact on the livestock trade, but the Administration is quite optimistic that the farms concerned can adapt to the new control measures, and predicts that after the implementation of the licensing system, about 1 300 of the 4 000 existing livestock farms will continue to operate. To facilitate the monitoring of the progress, the Administration has agreed to submitting a background report to the Environmental Affairs Panel of this Council before implementing the Scheme and submitting a progress report every six months after the implementation of the Scheme. If it is considered that the matters concerned have implications on the economy or agricultural development, the reports will also be submitted to the Economic Services and Public Utilities Panel of this Council.

After detailed consideration of the views of the organizations concerned and the response of the Administration, most of the Members of the Bills Committee concluded that it is necessary to implement the licensing system in order to effectively control pollution caused by livestock waste.

As regards the waste collection service, the Bills Committee and some organizations are concerned that in the future, livestock farmers may have to pay for the waste collection service which has all along been provided free of charge by the Administration. The Administration explained that it is preparing to contract out this service to private operators and the contractor may or may not charge a fee. Any proposal of fees charging is subject to approval by the Director of Environmental Protection who has to be satisfied that the fee proposed is reasonable. Although the Waste Disposal Ordinance has provision for the licensing of waste collection service and a franchise may be granted pursuant to these provisions, the Administration has promised not to grant any franchise on livestock waste collection. Therefore, farmers can freely choose their own service providers, like those who are willing to pay for the waste collected. Usually, farmers will be paid for the chicken waste collected from their farms. To facilitate monitoring, the Administration has agreed to brief the Environmental Affairs Panel after having collated the detailed information of the charges and services of the waste collection contractors. The Bills Committee was satisfied with the Administration's explanation.

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The Bills Committee has also discussed the ex gratia allowance and the capital grant. Some organizations opined that the capital grant should be increased to the level of the ex gratia allowance. The Administration explained that while the capital grant is calculated on the basis of the costs for installing the necessary waste treatment systems, the ex gratia allowance is based on past profits. Due to the difference in the methods and bases of calculation and the principle of payment, it will not be appropriate to set the payments at the same level. Moreover, the capital grant has recently been increased substantially. As mentioned earlier, the rate of capital grant for pig farms, for example, has been increased from $120 per sq m to $225 per sq m. After some discussion the Bills Committee decided not to further consider this matter during the examination of the Bill. However, when the occasion arises, like when the relevant subsidiary legislations are submitted to this Council for deliberation, this matter may be brought up for discussion again.

The Bills Committee has also examined two complaints, one relating to cattles and the other to racing pigeons. The representative of a dairy complained to this Council that as the definition of "livestock" does not include dairy cattle, operators have to be subject to the control of a more stringent 20:30 discharge standard under the Water Pollution Control Ordinance. And they are not entitled to the ex gratia allowance if they leave the trade. Quite the opposite, the representatives of pigeon racing activities considered that racing pigeons should not be regarded as livestock. They should instead be regarded as farmhouse livestock and exempted from control. The Administration has replied that the main objective of the Livestock Waste Control Scheme is to tackle pollution caused by pig and poultry farms. Cattles are already subject to control by the Dairies Regulations under the Public Health (Animals and Birds) Ordinance. So the definition of "livestock" under the laws for control of livestock waste does not include cattle. As regards racing pigeons, the Administration explained that despite public complaints against the environmental and noise nuisances frequently caused by racing pigeons in urban areas, it is prepared to increase the number of racing pigeons allowed to be kept in premises in Prohibition Areas and Control Areas from the existing 10 (over which a licence is required) to 20. At present, anyone who keeps more than 10 racing pigeons without a licence will be prosecuted, but the ceiling will be increased to 20. Since this matter is outside the ambit of the Bill, the Administration will follow up by way of subsidiary legislation. Most of the Members of the Bills Committee were satisfied with the explanation and the arrangement.

The Bills Committee also noticed that farms in Restriction Areas (under the new definition, areas are divided into Prohibition, Restriction and Control Areas) must have been in continuous operation of livestock keeping in order to be qualified for a written authorization for continuing to keep livestock. The Restriction Areas will gradually become Prohibition Areas, but existing farms will be allowed to continue to operate. The Bills Committee was concerned that the 12-month qualifying period is too long and inflexible. However, the Administration explained that in order to enforce the policy that all the livestock

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farms in Prohibition Areas are existing rather than new ones, the 12-month requirement is necessary to ensure that only those which have really been operating there are allowed to continue with their operation. In enforcing this requirement, the Director of Environmental Protection will take account of objective evidence in its evaluation of whether or not the farm in question has been in continuous operation for 12 months. But the transfer of ownership is not a point of consideration. Even if the ownership has been transferred, as long as the farm has been actively and continuously operating for 12 months, it will be granted a written authorization for continuing with its operation. The Bills Committee was satisfied with this explanation.

The Bills Committee also discussed the notification system. Clause 13 of the Bill empowers the Director of Environmental Protection to issue notices and any other directions he thinks fit, requiring the livestock keepers concerned to improve specified steps or facilities. The Bills Committee was concerned that in determining whether a pollution problem was in urgent need of mitigation, the Director of Environmental Protection may be subjective and has no criteria to help his judgement. The Administration explained that in invoking that particular provision, the Director of Environmental Protection must make sure that his directions are urgently needed to solve some imminent pollution problems and his decision must be reasonable. It is therefore necessary to set up a notification system to ensure that before pollution arises the authority concerned will have already requested the farm concerned to make improvements. The Director of Environmental Protection is vested with the necessary powers to take effective preventive measures to solve the problem immediately even before instigating any prosecution. Most of the Members of the Bills Committee, with the exception of Rev FUNG Chi-wood, were satisfied with the explanation.

Finally, clause 20 of the Bill provides that the parties concerned may on the basis of certain reasons appeal against the Director's refusal of granting the written authorization or the orders in his notice. In this connection, the Bills Committee was concerned that clause 20(b), which imposes a limitation on the grounds for appeal, may be unfair to farmers. The Administration has explained that this particular provision is necessary to prevent abuse of the appeal system. Abuse of the appeal system will handicap the enforcement of the Ordinance to the effect that the Director's orders will not be complied with. Experience has shown that it is not uncommon that the appeal system is exploited to delay compliance with such orders. Most Members of the Bills Committee, again with the exception of Rev FUNG Chi-wood, were satisfied with the explanation. Rev FUNG Chi-wood will move at the Committee stage amendments to clauses 20 and 13 which are not supported by the Bills Committee.

With these remarks, Mr President, I support this Bill and the next.

3388 HONG KONG LEGISLATIVE COUNCIL — 27 April 1994

MR PETER WONG: Mr President, the uncontrolled outpourings of animal waste are daily contaminating our rivers in the northern New Territories, posing an eye sore and a threat to health. The Honourable Andrew WONG has given a clear report of the work of the Bills Committee and I fully support the decisions taken as the only viable solution to the problem at this stage. I regret that I cannot support Rev FUNG's amendment because I have seen in many pollution cases, specially with noise, that we do need to give the EPD sufficient power to prevent imminent breaches of environmental standards.

However, we have a large number of petitioners from the Hong Kong Livestock Industry Association gathered outside and they are obviously not happy with the decision. What have we learnt from the exercise? Please bear with me whilst I quote from an article by Mr Kenneth SILVERSTEIN in the March 1994 American City and County, and I quote: "The city, New York City, learned how to handle its water problem the hard way. In mid-1990 to avoid having to build a new $7 billion filtration system that would have cost $400 million annually to operate, New York drafted a document restricting agricultural land use. The agricultural community fought the plan, arguing that uniform and inflexible regulations were unworkable and undesirable. In December 1990 city and state regulators convened a group of local farmers, environmentalists, government organizations, state representatives and technical advisers to find an alternative to a mandatory set of rules and regulations. The city now provides incentives including cost sharing, supplemented by a reasonable mix of state and federal funds to farmers who participate in the watershed programme. It will finance continuing education and professional training, and spearhead efforts to bring together conflicting parties. The total cost of the programme was $3.4 million to finance demonstration projects, attend farms, and $75,000-$100,000 per farm for capital improvements. "I believe this farm-by-farm approach is tentatively accepted by the farm community in the watershed area as a much preferred alternative to a traditional top/down standard setting enforcement penalty system of regulations," says Mr Richard MAGUIRE, Commissioner of Agriculture and Markets for New York State. And because these programmes and actions originate at the local level the opportunity for success is greatly enhanced. Mr MAGUIRE says the city is on target to achieve its goal of 85% participation in the programme by farmers."

In Hong Kong the Administration has adopted the traditional top/down approach to the problem. It decided in its own wisdom the best, quickest and most cost-efficient solution, and hoped to impose it by passing this Bill. Of course the traditionalist farmers will be suspicious of any regulatory control and natural scepticism will naturally turn to opposition and confrontation when farmers' concerns are not fully and sympathetically addressed and their own natural leaders do not come out in support of the proposed solution.

I would ask that the Administration re-thinks the way it carries out is implementation strategy. If the Government wants agreement and co-operation it needs the advance involvement of those who will later have to carry out the

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