HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4571 OFFICIAL RECORD OF PROCEEDINGS
Wednesday, 21 June 1995
The Council met at half-past Two o'clock
PRESENT
THE PRESIDENT
THE HONOURABLE SIR JOHN SWAINE, C.B.E., LL.D., Q.C., J.P.
THE CHIEF SECRETARY
THE HONOURABLE MICHAEL SUEN MING-YEUNG, C.B.E., J.P.
THE FINANCIAL SECRETARY
THE HONOURABLE SIR NATHANIEL WILLIAM HAMISH MACLEOD, K.B.E., J.P.
THE ATTORNEY GENERAL
THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P.
THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P.
THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P.
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.
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.
4572 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 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 ALBERT CHAN WAI-YIP
THE HONOURABLE VINCENT CHENG HOI-CHUEN, O.B.E., J.P. THE HONOURABLE MOSES CHENG MO-CHI
THE HONOURABLE MARVIN CHEUNG KIN-TUNG, O.B.E., J.P. THE HONOURABLE CHEUNG MAN-KWONG
THE HONOURABLE CHIM PUI-CHUNG
REV THE HONOURABLE FUNG CHI-WOOD
THE HONOURABLE FREDERICK FUNG KIN-KEE
THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA
DR THE HONOURABLE HUANG CHEN-YA
THE HONOURABLE SIMON IP SIK-ON, O.B.E., J.P.
DR THE HONOURABLE LAM KUI-CHUN
DR THE HONOURABLE CONRAD LAM KUI-SHING, J.P. THE HONOURABLE EMILY LAU WAI-HING
THE HONOURABLE LEE WING-TAT
THE HONOURABLE ERIC LI KA-CHEUNG, J.P.
THE HONOURABLE FRED LI WAH-MING
THE HONOURABLE MAN SAI-CHEONG
THE HONOURABLE STEVEN POON KWOK-LIM
THE HONOURABLE HENRY TANG YING-YEN, J.P.
THE HONOURABLE TIK CHI-YUEN
THE HONOURABLE JAMES TO KUN-SUN
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4573 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
THE HONOURABLE LEE CHEUK-YAN
ABSENT
THE HONOURABLE HUI YIN-FAT, O.B.E., 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 PETER WONG HONG-YUEN, O.B.E., J.P.
IN ATTENDANCE
MR HAIDER HATIM TYEBJEE BARMA, I.S.O., J.P.
SECRETARY FOR TRANSPORT
MR DOMINIC WONG SHING-WAH, O.B.E., J.P.
SECRETARY FOR HOUSING
MRS KATHERINE FOK LO SHIU-CHING, O.B.E., J.P.
SECRETARY FOR HEALTH AND WELFARE
MR PETER LAI HING-LING, J.P.
SECRETARY FOR SECURITY
4574 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
MR BOWEN LEUNG PO-WING, J.P.
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS
MISS JACQUELINE ANN WILLIS, J.P.
SECRETARY FOR EDUCATION AND MANPOWER
MRS LESSIE WEI CHUI KIT-YEE, J.P.
SECRETARY FOR FINANCIAL SERVICES
THE CLERK TO THE LEGISLATIVE COUNCIL
MR RICKY FUNG CHOI-CHEUNG
THE DEPUTY SECRETARY GENERAL
MR LAW KAM-SANG
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4575 PAPERS
The following papers were laid on the table pursuant to Standing Order 14(2): Subject
Subsidiary Legislation L.N. No.
Road Traffic (Public Service Vehicles)
(Amendment) (No.3) Regulation 1995 .................................................... 236/95
Road Traffic (Public Service Vehicles)
(Amendment) (No.4) Regulation 1995 .................................................... 237/95
Telecommunication (Amendment) (No.2)
Regulation 1995 ....................................................................................... 238/95 Supply of Services (Implied Terms) (Exclusion) Order 1995 ......................... 239/95 Rating (Effective Date of Interim Valuation) Regulation ................................ 240/95
Official Languages (Alteration of Text)
(Matrimonial Causes Ordinance) Order 1995.......................................... 246/95
Medical and Related Professionals (Registration)
(Miscellaneous Amendments) Ordinance 1995
(34 of 1995) (Commencement) Notice 1995 ........................................... 247/95
Rating (Amendment) Ordinance 1995 (22 of 1995)
(Commencement) (No.2) Notice 1995 .................................................... 248/95
Builders' Lifts and Tower Working Platforms
(Safety) (Fees) Regulation ....................................................................... 250/95
Official Languages (Authentic Chinese Text)
(Matrimonial Causes Ordinance) Order................................................... (C)47/95
Official Languages (Authentic Chinese Text)
(Rating Ordinance) Order ........................................................................ (C)48/95
Sessional Paper 1994-95
No.97 — Securities and Futures Commission
Annual Report 1994-95
4576 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 ORAL ANSWERS TO QUESTIONS
Park-and-ride Facility
1. MISS EMILY LAU asked (in Cantonese): Will the Administration inform this Council whether it will actively consider the park-and-ride concept by building multi-storey car parks near Mass Transit Railway (MTR) and Kowloon-Canton Railway (KCR) stations in an attempt to take cars off the road and to relieve traffic congestion?
SECRETARY FOR TRANSPORT: Mr President, the concept of park-and-ride is to encourage car owners to use trains to continue their journeys into the urban area, thus relieving pressure on the road system. I am pleased to be able to assure Honourable Members that the Administration is actively examining how park-and-ride facilities can be provided. Indeed during our recent consultation exercise on measures to address traffic congestion, there was public support for the provision of more parking facilities in the vicinity of railway stations, in the New Territories.
A start has already been made. I have agreed to earmark $60 million as the government contribution towards a Mass Transit Railway Corporation (MTRC) proposal to develop a transport interchange at Choi Hung MTR Station, which will incorporate park-and ride facilities. This will involve the redevelopment of the existing Ping Shek Estate Bus Terminus into a modem transport interchange. The redevelopment proposal will soon be put to the Town Planning Board. Thereafter, the Finance Committee will then be invited to approve the government contribution for this scheme.
I can also assure Honourable Members that very careful consideration will be given to incorporating park-and-ride facilities at or near some stations along the three priority railway systems announced in the Railway Development Strategy. For example, the MTRC will examine the feasibility of park-and-ride facilities at Tseung Kwan O as part of the proposed MTR extension. I shall, likewise, ask the Kowloon-Canton Railway Corporation (KCRC) to see whether such facilities can be provided as part of the Western Corridor Railway project and the Administration will also bear this in mind for the proposed Ma On Shan-Tai Wai line.
MISS EMILY LAU asked (in Cantonese): Mr President, I am glad to hear that the Government is actively examining how park-and-ride facilities can be provided. Can the Government confirm that when the MTR was under construction, consideration had been given to the development of a transport interchange at Choi Hung MTR Station but at that time the proposal was abandoned? In view of this, is it true that the Government has now changed its policy, indicating a negation of its previous idea, that is, the Government was
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4577
unwilling to build more multi-storey car parks for fear that more car parks would encourage more people to have their own cars? But now this concept has proved to be totally wrong and so it will try its best to build more multi-storey car parks?
SECRETARY FOR TRANSPORT: Mr President, as far as the proposal at Choi Hung Estate is concerned, indeed the MTRC has sometime ago begun to look into the feasibility of providing park-and-ride facilities, but because the cost of this project was quite enormous, from their point of view and taking into account Town Planning Board difficulties, the MTRC has approached the Administration. I have discussed this with the Chairman and that is why the Government is prepared to fund part of the interchange which will incorporate park-and-ride facilities at Choi Hung.
Insofar as parking policy is concerned, Mr President, the Administration does not hold the view that the provision of more parking spaces will necessarily solve the parking problem or the congestion problem, particularly in the urban area, because there are really two schools of thought. On the one hand, the argument is that more parking in central downtown areas will encourage more people to drive their cars to town and this may in fact aggravate the situation. But on the other hand, obviously we must provide adequate parking spaces. The Transport Department has undertaken a transport-parking study and this should be completed by September this year.
Insofar as admittance to the rights or wrongs of our previous policy, I think, Mr President, with respect, hindsight has 20/20 vision and obviously we must learn from our mistakes and plan ahead.
MR EDWARD HO: Mr President, I am very glad to hear the Secretary for Transport say that the Government is actively examining the park-and-ride concept and how that can be done.
I wanted to ask him whether he considers that to be effective car park charges should be reasonable to really attract motorists to park-and-ride and if so, how would he propose to make these parking charges reasonable?
SECRETARY FOR TRANSPORT: Mr President, the policy is not, of course, to subsidize parking, either at government car parks or elsewhere. Insofar as park-and-ride is concerned, of course one of the difficulties is the very point that the Honourable Member has highlighted — that we must make the parking charges attractive, otherwise no one would be encouraged to park-and-ride. I think one way of doing this, an approach that I will be exploring with the railway corporations, is to see whether there can be some sort of discount for those who park and-ride on producing their railway tickets. But the details of this will have to be worked out.
4578 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
MR LAU WAH-SUM asked (in Cantonese): Mr President, I raised the same question some 10 or 20 years ago when the discussion on the MTR project began. At that time, sites were still available for park-and-ride facilities. But now, other buildings have been built on many of these sites. Can the Government buy back or get back these sites with the $60 million? The most crucial thing is to have the park-and-ride facilities close to the MTR stations so that people need not take a long walk. Can the Government buy back these developed sites? Is the $60 million sufficient for this purpose?
SECRETARY FOR TRANSPORT: Mr President, the $60 million which I have referred to will only be in respect of one specific project, that at Choi Hung. I am not saying that $60 million will be all the money that we will set aside for future park-and-ride projects. It is only for Choi Hung. Obviously, Mr President, in the urban areas in particular sites are hard to come by but we will have to take this into account in competing for sites for park-and-ride.
MRS PEGGY LAM asked (in Cantonese): Mr President, the Secretary in his reply mentioned that in order to encourage car owners to take MTR and KCR trains, more car parks will be built so that they can park their cars and then take the mass transit carriers. Will the Government consider building car parks near ferry piers so that car owners can take the ferries after parking their cars and thus relieve traffic congestion on the roads?
SECRETARY FOR TRANSPORT: Mr President, again it is a question of whether or not suitable sites are available. As I said in reply to a question last week in this Council, near ferry piers there are transport interchanges. We plan to provide taxi stands and facilitate other modes of transport but, of course, if there is opportunity to provide car parking spaces this will be done.
MRS MIRIAM LAU asked (in Cantonese): Mr President, the Secretary for Transport in his reply only mentioned that consideration will be given to constructing parking facilities along the railway systems scheduled to be built, such as the Western Corridor Railway and the Tseung Kwan O extension. But in fact, the building of car parks along the existing railway systems will be the most crucial measure to relieve congestion pressure and to encourage people to take the mass transit carriers. Does the Government have any concrete plan for building additional car parks and where will the location of these car parks be, apart from the one at Choi Hung? If no, is the Government undertaking a study on this? And when will a concrete plan be submitted to this Council?
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4579
SECRETARY FOR TRANSPORT: Mr President, the scheme at Choi Hung is the immediate one that we are planning and I have also mentioned that we will be looking at the Tseung Kwan O extension. But apart from that, we have no other immediate plans. But it would be wrong, Mr President, to suggest that in fact at existing MTR or KCR stations there are no parking spaces. For example, in Central there are a lot of parking spaces in multi-storey car parks and indeed for the new Hong Kong terminal of the Airport Railway, adequate parking spaces will be provided.
REV FUNG CHI-WOOD asked (in Cantonese): Mr President, I would also like to follow up on this issue. I am rather disappointed because some sites along the KCR, such as Sha Tin and other districts could have been considered for the construction of multi-storey car parks in order to encourage car owners to park their cars there and take the trains to continue their journeys. I hope that the Transport Branch will consider the feasibility of providing additional parking facilities along the KCR.
SECRETARY FOR TRANSPORT: Mr President, I thank the Honourable Member for his suggestion and obviously I shall ask the KCRC, in particular, to see if they can come up with any suggested sites for park-and-ride and we ourselves will also look at the possibility of finding additional sites. I believe, Mr President, that some time ago the possibility, for example, of using the Jockey Club grandstand was considered but there were various difficulties, such as the question of scheduling special trains to the racecourse station. But I shall be happy to pursue this again with both the Club and with the KCRC to see if some practical arrangements can be arrived at.
MR WONG WAI-YIN asked (in Cantonese): Mr President, the Secretary for Transport in his reply mentioned that additional car parks will mainly be provided along the MTR and KCR. Will the Secretary consider the provision of more multi-storey car parks in the vicinity of the entrances to the existing or future tunnels in order to facilitate the use of other public transport by motorists?
SECRETARY FOR TRANSPORT: Mr President, we can of course examine the possibility and the feasibility of finding such sites, but I think the difficulty should not be underestimated because obviously in the vicinity of the entrances and exits to the tunnels, we need space for ingress and egress and also insofar as the existing tunnels are concerned, there is really no land available. Probably the priority insofar as sites nearby tunnels are concerned would be to earmark these for bus interchange facilities. I think that is more important than car parks.
4580 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
DR YEUNG SUM asked (in Cantonese): Mr President, the policy of facilitating parking by motorists and encouraging them to use the mass transit carriers deserves our espousal. However, the bus terminal at Ping Shek Estate is busy enough and the noise generated is quite serious. If the Government plans to convert it into a modern transport interchange, will it pay special attention to the problems of environmental pollution in order not to undermine further the hygienic conditions of nearby residents?
PRESIDENT: Are you able to answer, Secretary?
SECRETARY FOR TRANSPORT: Yes, Mr President. As with all major projects, the Environmental Protection Department of course is consulted on noise abatement and other environmental aspects, and indeed in the project briefs, these particular aspects will have to be examined in detail and, of course, where necessary the Advisory Committee on the Environment will be consulted.
Redevelopment of the City Hall Car Park
2. MR JIMMY McGREGOR asked: Taking into account the shortage of car parking spaces in the Central District, will the Government inform this Council whether there are any restrictions on the rebuilding and reconstruction of the City Hall Car Park to multiply the parking spaces available to the public by several hundred per cent; if so, whether these restrictions can be removed by negotiation in the public interest?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, the City Hall Car Park is a government-owned car park. The site is zoned "Government/Institution/Community" on the current draft Central District Outline Zoning Plan and is not subject to statutory planning restrictions on the number of public parking spaces to be provided.
However, the car park site together with the City Hall complex forms part of a plan to redevelop the Central District under Phase III of the Central Reclamation Project. The planning proposals are only at a preliminary stage and are subject to further discussions within the Administration and with the Urban Council. But in the meantime, we do not consider it prudent to proceed with any redevelopment of the car park on its own.
MR JIMMY McGREGOR: Mr President, I have to say that my first question has not been answered. I asked whether there are any restrictions on the reconstruction of the City Hall Car Park? I refer, Mr President, to any agreement or any understanding with any company in Hong Kong that there is a height restriction on that building?
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4581
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, I do believe I answered the first part of the question. I said that there is no statutory planning restrictions on the number of car parking spaces at the current site. There is also no restriction on the development potential of the current site. However, since the site is affected by parallel planning on the long-term usage of the area, we do not think it would be prudent to build on the car park or redevelop on its own at the moment.
MISS EMILY LAU (in Cantonese): Mr President, I believe what Mr McGREGOR wants to know is why there are not enough parking spaces in Central. Very often we find it strange why many commercial buildings are not required to provide several storeys for parking spaces. Can the Secretary for Planning, Environment and Lands inform us whether it is the case that as a result of certain policies of the Government, the situation has been such that even though these buildings are tens of storeys high, they are not required to provide several storeys for parking spaces, thus causing serious traffic congestion in Central?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr President, I think it would be more appropriate for the Secretary for Transport to answer part of this question. However, I would like to point out that the standard of parking spaces provision for buildings put up on the newly reclaimed land that will be available in Central will be one parking space in a building for every 240 sq m of floor area. As to whether there are enough parking spaces in Central, very often experience has it that traffic in an area will be worse the greater the number of vehicles travel through it. But for the moment, the Transport Branch and other institutions have conducted some surveys which show that the majority of people who travel to Central do so by means of public transport, and it is believed that these people account for more than 90% of the total. In fact, strictly speaking, not many people have to go to other places via Central, and many people go to Central only by public transport. So does it really affect the traffic whether or not we have many parking spaces? Just as what the Secretary for Transport has said, the Transport Branch is carrying out a study on the demand for parking spaces, we will look at the final result of the study before we decide on the future arrangements.
PRESIDENT: The question relates to the City Hall Car Park. Can we keep it confined to that point please?
4582 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
MR CHIM PUI-CHUNG (in Cantonese): Mr President, in his reply, the Secretary for Planning, Environment and Lands has almost confirmed that the City Hall Car Park will be eliminated. However, since there are not enough parking spaces, is the Government having another planning proposal in mind to build a car park on another site in place of the City Hall Car Park, so that even when there are not enough parking spaces, we shall at least have some for use?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr President, we have a conception for the planning of the new City Hall in Central as well as other relevant plans, which is to demolish the present car park but build a new car park in the vicinity of the new City Hall. According to our current plan, a total of 2200 parking spaces will be provided, a number that is far greater than the 158 parking spaces provided by the present City Hall Car Park.
MR JIMMY McGREGOR: Mr President, will the Secretary confirm, positively, whether there is any agreement between the Hongkong and Shanghai Bank and the Government as to the height of buildings in front of the bank to the sea? In other words, it is generally believed, widely believed in Hong Kong, that the Hongkong and Shanghai Bank, in providing the land for Statue Square to the Government, entered into some arrangement or had some assurance from the Government that the area in front of that to the sea would not be built upon to a greater height than a particular height. And I am just asking whether in the planning of the Government, that kind of assurance exists and if so, whether it has to be taken into effect?
PRESIDENT: In restricting the height of the City Hall Car Park?
MR JIMMY McGREGOR: Yes, Mr President, for that site. Any building appearing on that site, in other words, should not be restricted by any agreement or assurance entered into with the Hongkong and Shanghai Bank.
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, personally I am not aware of such an agreement. I think it is all a matter of intention in the past of the planning proposals and general development of the area which provides an open corridor from Statue Square. I think the intention is not to restrain Statue Square in an enclosed area rather than not to block the view of the Hongkong Bank. Based on this principle, when we plan for the future redevelopment of the area, we will provide a much larger open space in the Central District to the tune of six hectares, extending the open space from Statue Square to the waterfront. I hope this answers the question.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4583 Assessment of CSSA Eligibility
3. MISS CHRISTINE LOH asked: In response to a question asked on 22 February 1995 in the Council, the Secretary for Health and Welfare stated that when assessing eligibility for social security assistance, the Health and Welfare Branch will take into account the "non housing expenditure required to maintain a reasonable standard of living for households of different sizes". In her reply to a follow-up question, the Secretary stated that the standard rates for Comprehensive Social Security Assistance (CSSA) "are based on the needs of a person, or a family, for food, clothing, fuel and other household expenses." In this connection, will the Government inform this Council of:
(a) the breakdown of the amounts assumed for food, clothing, fuel and other household expenses in the calculation of the current CSSA standard rates for a family of four with two able-bodied adults and two able-bodied children receiving regular schooling;
(b) the total amount of non-housing expenditure assumed in the calculation of the current CSSA standard rates required to maintain "a reasonable standard of living in Hong Kong"; and
(c) the number of families consisting of two adults and two children with a monthly income, excluding the CSSA allowance which includes a rent allowance below the level required to maintain a reasonable standard of living?
SECRETARY FOR HEALTH AND WELFARE: Mr President, before I give an answer to this question, I would like to set the record straight. In response to a question asked in this Council on 22 February 1995, I did not say that my Branch, in assessing eligibility for social security assistance, would take into account the "non-housing expenditure required to maintain a reasonable standard of living for households of different sizes". What I said was that in the case of public housing, income criteria for assessing eligibility were set by reference to the cost of renting accommodation in the private sector and the non-housing expenditure required to maintain a reasonable standard of living for households of different sizes. I also said that in view of the costs of housing in Hong Kong, it was not surprising to see that income eligibility criteria in this field were different from those used for assessing social security assistance.
The CSSA standard rate for a family of four with two able-bodied adults and two able-bodied children currently stands at $5,100 a month. If the two children concerned were at school, then the family would also be eligible for school-related special grants. The total average CSSA payment to a family unit of this composition is currently $7,200 per month. I should add that of the 3200 four-member CSSA households only 9% or 300 households is of this composition. Most CSSA households of this size contain only one able-bodied
4584 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
adult and three dependents. The average CSSA payment to such households is higher, at $8,200 per month.
As for the standard rate element of the overall payment, I do not have a breakdown of the amount for specific items of food, clothing, fuel and other household expenses assumed in the calculation of this rate. I should like to explain why this is so. When the Public Assistance Scheme was set up in 1971, its basic rates covered only the cost of food based on recommendations originally made by the Hong Kong Council of Social Service as to what was required for an adequate diet based on nutritional advice.
The basic rates were then substantially improved in 1972 to take into account other essential items of household expenditure on, for example, fuel and light, clothing and footwear, durable goods, transport and services. The method then used was to relate the cost of these items to the cost of food according to the weighting given to each item in the then Modified Consumer Price Index which showed the expenditure pattern of low income families in Hong Kong. By using the index weightings, an amount for these items proportionate to the amount provided for food was then worked out.
Since then, the rates have been adjusted to take into account inflation when necessary. Various supplements to the rates have been introduced to meet the needs of clients. When we introduced the CSSA Scheme in 1993, most of these supplements were then subsumed into the standard rates. Real increases to the rates have also been made which have resulted in the CSSA standard rates for a single able-bodied adult and a single able-bodied elderly person being increased by more than 16 times and 24 times respectively since 1971, whereas inflation, as measured by the Consumer Price Index (A), has increased by less than seven times over the same period. As a result of the subsuming of supplements into the standard rates and these substantial real increases in rates, the relationship between the standard rate payment and costs in regard to the range of specific needs originally identified has been lost over time.
Since, as I said earlier, CSSA rates are not fixed by reference to maintaining "a reasonable standard of living in Hong Kong", it is not possible for me to respond fully to the second and third parts of this question. But it is important to note that CSSA payments comprise not only standard rates but also a range of special grants for rent (up to $2,858 per month for a family of four), educational expenses (which on average amounts to $1,680 per child a year), water charges, telephone charges, medical expenses, special diets (ranging from $350 to $670 per month), expenses on child care (which can be up to $3,560 per month for day creche or $1,745 per month for a day nursery place) and travelling, and so on. Any consideration of their adequacy must take these special grants fully into account.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4585
MISS CHRISTINE LOH: Thank you, Mr President. I think we may have an answer as to why the CSSA rates today, or the basis for those rates, are grossly outdated. In paragraph four of the reply, we are told that the method then used was to relate the cost of these items to the cost of food according to the weighting given to each item in the then Modified Consumer Price Index for low income families and upon that basis it seems like the rates are then projected forward with inflation. Surely, I think unless the Secretary can convince us, that the weightings or the ratios of those weightings in 1971 are the same as today, then we might assume that the amounts are enough. But I have two questions to put to the Secretary.
The first one is, whether the Secretary actually thinks that the amounts given out today are sufficient to maintain a modest standard of living in the 1990s?
Now secondly, the Secretary has told us before in this Council that there is a review of the CSSA rates going on right now. What I would like to know is, whether the yardstick of a reasonable standard of living is being used to review the rates? If not, what yardstick is being used?
SECRETARY FOR HEALTH AND WELFARE: Mr President, we are at present considering the detailed methodology for establishing new CSSA payment levels. Our broad intention is to examine carefully the special data being produced by the Household Expenditure Survey currently underway and to establish the expenditure patterns of income groups just above those currently entitled to CSSA. We shall also retest the relevance of the standard rates in terms of the costs of the basic needs for food, for clothing, for fuel and light. The results of both approaches will be taken into account along with affordability of new rates before any final recommendations are made.
PRESIDENT: Miss LOH, not answered?
MISS CHRISTINE LOH: No, Mr President. My question was really quite simple. Is there any yardstick like a reasonable albeit modest standard of living that will be used? And I do not think the Secretary is even prepared to answer that question.
SECRETARY FOR HEALTH AND WELFARE: Mr President, as I said in my main reply, the CSSA rates are not fixed by reference to maintaining a reasonable standard of living in Hong Kong. It should be noted, however, that the objective of our Scheme is to meet both the basic and special needs of those who are in need of financial support. CSSA comprises, not only standard rates, but also other supplements and a wide range of special grants as I have described in my main reply. And over the years, the Scheme has been
4586 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
improved to ensure that payments are better tailored to meet the needs of our clients. It is inflation-proof and real increases have been made.
MR FRED LI (in Cantonese): Mr President, I understand that a sum will be reserved in the 1996-97 Budget for the purpose of improving the Comprehensive Social Security Assistance (CSSA) Scheme because it is envisaged that the Survey will be completed by the beginning of next year and the sum is to be reserved for the financial year 1996-97 to meet the recommended adjustments expected in the Survey. Can the Secretary inform us of the size of the sum reserved for meeting the adjustments to be made to CSSA payments in 1996-97 and of the methodology for arriving at the sum?
SECRETARY FOR HEALTH AND WELFARE: Mr President, the exact amount which will be necessary to implement new CSSA payment rates for 1996-97 is still under consideration at the moment within the Central Government.
MR LEE CHEUK-YAN (in Cantonese): Mr President, it is mentioned in the main reply that of the 3200 four-member families receiving CSSA, 2900 are single-parent families and the remaining 300 are families with two adults and two children. This reflects that only a minority of families with two adults and two children apply for CSSA. However, in view of the prevailing high unemployment rate, it is believed that many four-member families have to sustain a living with none of the family members working. Would the Government agree to the proposition that only a minority of families of this composition applying for CSSA is attributable to the lack of publicity on this service, for example, Radio Television Hong Kong has never produced any announcements publicizing the availability of CSSA service? Would the Government concede that applications are scanty because publicity efforts are lacking?
SECRETARY FOR HEALTH AND WELFARE: Mr President, social security in its various forms has been in place since 1971. It is generally well known that the Government provides a form of assistance to support families who are in need. The Social Welfare Department, through its various offices, provide general publicity to clients going into these offices. Leaflets and other publicity material are also available in the District Offices of the Home Affairs Department. In addition, there is also general publicity through the electronic media from time to time. I do not think it is a matter of the public not knowing that such assistance exists.
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The reason that there are so few four-member households with a composition of two adults and two children reflects the needs of Hong Kong families. The majority of family households who are on CSSA are one adult and three dependants. The three dependants might be three children, it might be two children and one elderly parent, or it could be two elderly parents and one child. So it is not true that the composition of our CSSA clients reflect the lack of publicity of the Scheme.
Retraining Programmes for Retail Industry
4. MRS SELINA CHOW asked (in Cantonese): The Government announced earlier this year that the number of vacant positions in the retail industry stood at a high of 7,151. In view of this, will the Government inform this Council:
(a) whether retraining programmes catering for the needs of the retail industry have been offered with a view to relieving the acute labour shortage in the industry;
(b) of the total number of workers trained by the Government under the retraining programme to enter the retail industry; and
(c) whether consideration has been given to providing pre-work counselling to those participating in the retraining programmes?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President,
(a) The Employees Retraining Board (ERB) offers both classroom-type retraining courses and On-the-Job Training (OJT) which are designed specifically to equip workers with skills required of jobs in the retail industry. Nine classroom-type retraining courses have been sponsored by the ERB. Most of these courses are on general salesmanship training, covering the basic principles of retailing, sales techniques, customer service techniques, basic communication techniques, telephone skills, social skills, and use of languages such as English and Putonghua.
As regards the OJT Scheme, under this arrangement employers are offered financial incentives to hire employees aged over 40, in the form of reimbursement of up to one-third of the monthly wages of each retrainee for up to the first three months of employment. So far, 137 employers from the wholesale and retail industry have participated in the OJT Scheme and the retraining covers areas such as selling techniques and customer servicing.
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(b) A total of 930 trainees have participated in courses specifically designed for the retail industry. Of this number, 481 retrainees have attended classroom type retraining courses offered by the ERB and 449 persons have been placed with employers in the wholesale and retail industry under the OJT Scheme.
(c) The retraining programmes for the retail industry already provide pre-work counselling for the retrainees which last for one or two days. For example, in addition to teaching sales techniques, the course "Salesmanship Training" also includes sessions on developing positive working attitudes, self-confidence and enhancing communication skills. This sort of counselling is usually provided by social workers employed by the training bodies or the course instructors themselves, who possess considerable experience in career counselling and knowledge of the relevant industry.
Pre-work counselling is also offered to retrainees who enrol in the Job Search Skills Course as an integral part of the course content which aims at motivating retrainees to adopt a positive working attitude, improving their communication skills and interviewing techniques, and informing them of the latest changes in the job market.
In addition, the ERB also makes arrangements for employers and personnel managers to contribute to pre-work counselling by giving career talks during the course of the retraining programmes. Visits to actual places of work are also arranged wherever possible to allow retrainees to acquire first-hand experience of the actual working environment.
MRS SELINA CHOW (in Cantonese): Mr President, most of the employees in the retail industry are women. Concerning the On-the-Job Training Scheme, the Government has only offered financial incentives to employers for employing workers aged over 40, but we have heard complaints from many women that they have difficulty in getting a job after 30. Does the Government have any plan to extend the financial incentives to employers who would employ those over 30 so as to enhance the job opportunities for women aged between 30 and 40?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, when the OJT Scheme was first initiated, the age criteria for eligibility for this type of training was for those aged 30. But following a review a year later, in 1994, it was found that such incentives were not required to induce employers to employ those between the age of 30 and 39 and it was for that reason that the age limit was raised to 40 under the OJT Scheme.
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The ERB intends to conduct a review of its training. I could certainly refer this particular point to the Board for consideration.
DR HUANG CHEN-YA (in Cantonese): Mr President, according to the figures provided by the Government, only 930 trainees have attended the courses for the retail industry. Actually, the present unemployment rate in Hong Kong is very high. Will the Government inform this Council, why are there only 930 retrainees attending these courses? Is it because of the limited number of places available in the retraining programmes? If this is the case, is it possible to increase the number of places? Or is it because of inadequate publicity or the ineffectiveness of these programmes that result in the low attendance?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, the number of 930 trainees who have participated in training programmes specifically for retail industry does not mean that there are not other trainees who have attended other types of training who might have joined the retail trade. Obviously, all trainees, when they participate in this scheme, decide on the basis of all the training programmes which are available, including other types of training like the job search skills which are very popular.
As regards publicity, the ERB in fact publicizes every month the training courses which are available and takes out advertisements in the media. In addition, that information is also made available in, for example, the offices of the Labour Department and all the District Offices, as well as all the training centres themselves. Posters are also put up by the training centres in respect of particular courses they run. There is no lack of publicity.
Insofar as the effectiveness of courses, these are reviewed regularly by the ERB and courses which do not attract sufficient enrolment will be discontinued. Some of the courses provided under this Scheme for those interested in the retail industry have not attracted many people to attend and they have been discontinued.
PRESIDENT: Last three supplementaries.
MR LEE CHEUK-YAN (in Cantonese): Mr President, it is mentioned in the main reply that nine classroom-type retraining courses are on skills related to the retail industry. And in Annex I of the reply to question 16, I can see that six out of these nine courses have been discontinued. In 1995-96, only three courses have remained. Two are on Putonghua training and the other one is on sales techniques. Out of these nine courses, six have been discontinued and only three have remained. Is it because of the existence of age discrimination in the retail industry that these retraining courses have no effect at all and so they have to be discontinued?
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SECRETARY FOR EDUCATION AND MANPOWER: Mr President, as I said in my reply to the earlier supplementary, each of these training courses will be reviewed. Training courses are normally started on a pilot basis. Out of the nine, five have been discontinued. These were discontinued in some cases after several classes were organized and in each instance the number who have enroled were less than 50% of the potential size of the class. In view of the low enrolment, these courses were discontinued. The remaining courses are very popular and will continue to be provided.
MR MICHAEL HO (in Cantonese): Mr President, my question mainly is what kind of courses would the Government provide in view of the shortage of manpower in the retail industry? Will the Government inform this Council, according to the Government's information, what is the situation of manpower shortage in the retail industry? Can those 480 retrainees secure a
job in the retail industry? Also, would the Government consider abolishing the quota for the retail industry under the importation of labour scheme?
PRESIDENT: Let us not widen the question.
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, we do not keep specific statistics on placement of retrainees. However, feedback from employers to the training body suggests that those who have benefited from the training do enter into the retail industry.
As regards the importation of labour scheme, as Members are already aware, we are currently reviewing that scheme. I cannot pre-empt the outcome of that review.
MR FRED LI (in Cantonese): Mr President, it is mentioned in the main question that the number of vacant positions in the retail industry stood at 7151. However, many department stores have recently started to lay off their employees and close down their shops. Will the Government inform us the latest figure of vacant positions in the retail industry? Is the number still as high? As the Honourable Michael HO has just asked, would the Government further freeze the importation of labour in the retail industry because of the closure of so many department stores?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, may I ask for the last part of the question to be repeated.
PRESIDENT: Yes, Mr LI.
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MR FRED LI (in Cantonese): According to information, many department stores have closed down recently and they have also laid off their employees. The number of vacant positions in the retail industry should drop drastically. In view of this, will the Government further reduce the quota under the importation of labour in the retail industry?
PRESIDENT: Are you able to answer, Secretary?
SECRETARY FOR EDCUATION AND MANPOWER: Yes, thank you. The information on vacancies is conducted by the Census and Statistics Department on a quarterly basis. The next quarterly survey should be coming out shortly. I do not have more up-to-date figures than that already included in the Honourable Member's question today.
As regards whether we will be reducing the number in the quota under the importation of labour scheme, I have already indicated in my reply to an earlier supplementary question that we cannot pre-empt the outcome of that review.
Non-disclosure of Criminal Records by Company Directors
5. DR HUANG CHEN-YA asked: In view of the negative effects on shareholders and the status of Hong Kong as a financial centre brought about by recent repeated discoveries of non-disclosure of past criminal records by the directors of some listed companies, will the Government inform this Council what measures have been put in place by both the Government and the Securities and Futures Commission to safeguard the interests of small shareholders; and what steps will be taken to restore the confidence of investors?
SECRETARY FOR FINANCIAL SERVICES: Mr President, the Securities and Futures Commission (SFC) and the Stock Exchange of Hong Kong Limited have, since the recent discoveries of non-disclosure of past criminal records by some directors of some listed companies, formed a working party to consider the existing rules for disclosure of information with a view to determining whether changes need to be made. The main issues under consideration are:
- the appropriate scope of offences that have to be disclosed so as to include all relevant offences, particularly those relating to fraud or dishonesty or breaches of securities, companies and related legislation;
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- the appropriateness of existing due diligence requirements on sponsors and underwriters; and
- the appropriateness and sufficiency of the disclosure requirements for prospectus under the Companies Ordinance (Cap.32).
The working party will soon release a document for public consultation.
DR HUANG CHEN-YA (in Cantonese): Mr President, in fact I had a meeting with Mr Michael CARTLAND, Secretary for Financial Services, last Monday and therefore he should have understood what I have asked. I asked what measures have been put in place by both the Government and the Securities and Futures Commission (SFC) to safeguard the interests of small shareholders. However, today the Financial Services Branch has replied that the working party formed by the Stock Exchange of Hong Kong and the SFC would release a document for public consultation. The reply did not say how the Government would tackle the matter. Is the Government telling us that the Financial Services Branch is considering "closing down its business" and handing its jobs over to the SFC and the Stock Exchange of Hong Kong and therefore would not attend to the matter? If so, will the Government inform us how much money could be saved in terms of its expenditure on salaries?
SECRETARY FOR FINANCIAL SERVICES: Mr President, we believe that this is properly a matter for the regulators and unless there is indication that the regulators are not doing their job properly, and we have no indications to that effect, it is not appropriate for the Government to intervene at this stage. And, of course, the Financial Services Branch is in close liaison both with the SFC and the Stock Exchange of Hong Kong to keep ourselves briefed of developments.
MR CHIM PUI-CHUNG (in Cantonese): Mr President, the last part of the main question asks what steps will be taken to restore the confidence of investors. I have received many complaints from small investors who said that there had been a lot of interventions in the market by the SFC. Hence, will the Financial Services Branch inform this Council whether it is true that the confidence of investors has not been affected merely because the chairmen or directors of some listed companies have omitted to disclose their past criminal records or because the Stock Exchange of Hong Kong has not taken any subsequent action, but rather that the SFC should really be responsible to a certain extent?
PRESIDENT: What is the question, Mr CHIM?
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MR CHIM PUI-CHUNG (in Cantonese): Mr President, the last part of Dr the Honourable HUANG Chen-ya's question concerns steps to restore the confidence of investors. My question is, whether the Financial Services Branch considers the intervention in the market by the SFC to be a much more significant factor affecting the confidence of investors than the omission to disclose past criminal records by the chairmen and directors of listed companies?
PRESIDENT: Mr CHIM, this goes way beyond the question and you are asking for an opinion.
MR JAMES TO (in Cantonese): Mr President, according to the reply given by the Secretary for Financial Services, the SFC and the Stock Exchange of Hong Kong will consider the existing rules for disclosure of information. The existing rules are not laws and they are nothing more than promises made by the companies when they were listed. That being the only point made by the Government, is there an implication that the Government has already decided that such matters as the disclosure of past criminal records should not be stipulated by an enactment of legislation and that it would suffice for such information to be disclosed under the existing rules of the Stock Exchange of Hong Kong? Has the Government reached such a conclusion?
SECRETARY FOR FINANCIAL SERVICES: Mr President, the working party has still to release its document for public consultation and at this stage, I cannot pre-judge the recommendations and findings of the working party. But I would just add that it is quite common worldwide that the securities and futures market are regulated through a system of legislation as well as codified practices, so this is not a situation peculiar to Hong Kong.
PRESIDENT: Yes, Mr TO, not answered?
MR JAMES TO (in Cantonese): Mr President, I think perhaps the Secretary for Financial Services has not understood my question. The point is, there is the enactment of main legislation and subsidiary legislation. However, the rules mentioned in the main reply are, according to my understanding, internal rules of the Stock Exchange of Hong Kong which require listed companies to disclose information. These rules do not have any legislative effect. The main reply says, "to consider the existing rules for disclosure of information with a view to determining whether changes need to be made". In other words, any changes to be made are to the existing rules. Has the Government concluded that it would not require the disclosure of information to be stipulated by legislation and would only seek changes to the existing rules?
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SECRETARY FOR FINANCIAL SERVICES: Mr President, as I said, the working party has not released its document for consultation and I cannot pre-judge what recommendations it will make; whether it will involve changing the existing rules or whether it will recommend going beyond changing the existing rules.
DR HUANG CHEN-YA (in Cantonese): Mr President, the Government is telling this Council that basically, it has to look into the effectiveness of the self-regulation by the Stock Exchange of Hong Kong and therefore it has to consider the recommendations of the working party. Does the Government know what punitive actions have been taken by the Stock Exchange of
Hong Kong and the SFC over the last three years against directors and sponsors who have manipulated the stock market, who have exaggerated their assets or profits in the prospectus and who have issued prospectus which contained incorrect information? Does the Government consider these punitive actions to be sufficient to the extent that it is unnecessary to go further and take legislative measures as a deterrent to these bad elements?
PRESIDENT: How is that related to your main question, Dr HUANG?
DR HUANG CHEN-YA: It relates to my question in the sense that including false declarations and other matters which might affect the interests of minority shareholders. Is the self-regulation by the industry sufficient to the extent that the Government no longer feels that it is necessary to take legislative measures to protect the shareholders?
PRESIDENT: Your question was predicated on these recent repeated discoveries of non disclosure of past criminal records. You are seeking to go beyond that.
DR HUANG CHEN-YA: Yes, this includes this and others. If the Government wishes to limit it just to the extent of false declarations or that kind of thing, perhaps the Government might like to answer that also.
PRESIDENT: Are you able to answer within the scope of the question, Secretary?
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SECRETARY FOR FINANCIAL SERVICES: Mr President, I will try. Well, we believe that the SFC and the Stock Exchange of Hong Kong have been working very closely insofar as listing of companies is concerned. Of course, the function of listing is a matter for the SFC and the Commission has delegated this function to the Stock Exchange of Hong Kong Limited. But the SFC has retained reserve authority, that is to say, if the Commission considers that the Exchange is not performing its function properly, it can withdraw the delegation.
DR HUANG CHEN-YA: I was asking for information as to the number of cases and the actions taken by the Stock Exchange against directors who have provided false information or other kinds of behaviour which might have affected the interests of minority shareholders; and whether the Government thinks that those actions taken were sufficient to stop further action by other bad people? And the Government has not given me any answer on that question, the Government has just reiterated the powers of the SFC.
PRESIDENT: I am going to limit that question to what the original question was about, Dr HUANG, and that is "the recent repeated discoveries of non-disclosure of past criminal records". Do you want to know what action the Government is taking?
DR HUANG CHEN-YA: I want to know whether the Government felt that the actions taken by the Stock Exchange in regard to those kind of cases was sufficient to the extent that no legislative measures are necessary to prevent future occurrences?
SECRETARY FOR FINANCIAL SERVICES: Mr President, insofar as the recent cases are concerned, the Stock Exchange has taken different disciplinary action in different cases but regardless of the nature of the action taken by the Stock Exchange, it has led, in most cases, to the resignation of the directors concerned from the company. So to that extent, I consider that the action by the Stock Exchange has been effective.
DR CONRAD LAM (in Cantonese): Mr President, the Secretary for Financial Services mentioned in the main reply that a working party would be set up mainly to examine the three issues referred to in the reply. Considering the series of incidents which have occurred recently, does the Secretary for Financial Services think that there will be areas of omission for the working party to examine the three issues? If so, what steps will the Government take to stop these loopholes?
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SECRETARY FOR FINANCIAL SERVICES: Mr President, the three issues under consideration are the main issues. There are other minor issues such as procedural matters. The working party has in fact examined and considered a whole range of other issues as well. Of course, as I said in my main reply, there will be a document for public consultation. If Honourable Members, on reading the consultative document, consider that there are areas which fall short of expectations, the working party of course welcomes views and comments.
Trade Effluent Surcharge on Catering Industry
6. MR JAMES TIEN asked: Following the implementation of the Sewage Services (Trade Effluent Surcharge) Regulation on I April 1995, the water bills to be paid by various operators in the catering industry have increased significantly. The increase, which can be as high as 100% for some restaurants, will seriously affect the development of the catering industry and tourism. In order to avoid the closure of restaurants as a result of soaring water charges, which would aggravate the territory's unemployment problem, will the Government inform this Council:
(a) whether consideration will be given to exempting the catering industry from the newly levied effluent surcharge or reducing the surcharge imposed on the catering industry as much as possible, and whether assistance will be given to restaurant operators in the installation of suitable effluent treatment facilities so as to reduce the extent of pollution caused by the discharged effluent;
(b) whether it will consider granting a grace period; and
(c) whether the procedures for the laboratory tests of waste water can be revised to allow the 8000-odd existing operators of restaurants to arrange laboratory tests for the effluent discharged by their establishments on a collective basis, so as to reduce the expenses and the time spent by the entire industry on the waste water testing procedures?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President, in answering this question, I believe it would be useful for me to first recapitulate the background to the charging scheme.
Members will recall that, since this Council held an adjournment debate on the "Strategic Sewage Disposal Scheme" in December 1991, the "polluter pays principle" has received wide support in this Chamber. This support was echoed during the public consultation on sewage charges in the autumn of 1993, and reaffirmed by this Council during a further motion debate on the charging scheme on 1 December 1993.
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When the Sewage Services Bill, which provides for the sewage charges, was introduced into this Council in July 1994, and subsequently, when the Regulations setting out the precise rate and method of charging were tabled in February this year, there was further scrutiny of the "polluter pays principle" and the precise charging scheme by which we proposed to give effect to this principle. To say that the discussions on the Bill and its Regulations were thorough is an understatement. The Bills Committee met on seven occasions; the Regulations Committee on five occasions. The outcome of these discussions, which was widely reported in the media, was broad agreement that the charging scheme is fair, reasonable, modest and affordable for all.
Members will recall also that sewage charges seek to recover only the operating costs of sewage services, not the capital costs; that the basic charging rate for sewage services is set at $1.2 per cu m, as against $4.58 per cum for water supply; and that the Trade Effluent Surcharge (TES) was agreed to by industry. Moreover, this Council formed a subcommittee in March 1995 to consider how the charge for heavy water users could be further alleviated. Consequently, the Administration agreed to amend the Sewage Services (Sewage Charge) Regulation to reduce the discharge factor to 70%.
Turning to the Honourable Member's question:
On (a), the Chemical Oxygen Demand (COD) value, discharge factor and TES rate are stipulated in the law and will be applied fairly to all waste water dischargers who are obliged to pay the TES. The Government cannot therefore reduce or exempt the payment in respect of any particular sector of the community. To do so would violate the "polluter pays principle" and be unfair to those industries who have agreed to pay. However, it is possible for restaurant operators themselves — and indeed all operators subject to the TES — to reduce the charge by reducing the amount of pollution they discharge — this is in accordance with the "polluter pays principle" and not complicated, such as by reducing water consumption; by reducing the strength of their effluent through properly installing and maintaining on-site treatment facilities; and by properly maintaining grease traps. How these measures will help is explained clearly in a simple pamphlet which the Environmental Protection Department (EPD) has made available to restaurant operators since 1993. It is now being redistributed. We have also held several briefings for the restaurant operator representatives. Under the present legislation, operators can also apply for a review of the COD value or the discharge factor applicable to their effluent by producing evidence to the Drainage Authority. Assistance can also be given to restaurant operators for installing treatment facilities. This assistance is available from the Drainage Authority, which operates an enquiry hotline service; from the EPD's Local Control Offices, which give advice on appropriate effluent treatment facilities; including a booklet on properly designing, installing, and maintaining grease traps; from the Industry Department's Development and Support Division, from the Hong Kong Productivity Council, and from the Centre for Environmental Technology.
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On (b), the present Sewage Services Ordinance does not allow for a "grace period". The Ordinance makes it clear that the Drainage Authority has a duty to issue a bill for TES and that the bill must be paid by the consumer or agent.
On (c), which refers to laboratory tests, at a meeting between the Administration and restaurant operators on 16 June 1995, the Administration agreed that the trade could carry out a sampling survey to confirm their COD value and discharge factor of their effluent. The trade was also prepared to fund the survey. Details are still being discussed.
MR JAMES TIEN (in Cantonese): Mr President, regarding the charges, I feel that the Government has not done enough in its consultation with the catering industry and in sample testing. At the outset, the Government randomly picked 26 restaurants from 8000 of them for sampling. Because no waste water could be obtained from the sewage mains in the sampling process, samples were taken for testing from grease traps in dishwashers. The results of the tests revealed that effluent from most of the restaurants had Chemical Oxygen Demand (COD) values ranging from 4000 to 4900. So, a surcharge of $3 to $9 per cubic metre of water was levied. Of the $300 million plus effluent surcharge, almost $270 million was paid by the catering industry. Naturally, I was delighted to learn from the Secretary's reply to paragraph (c) that at last, the Administration and restauranteurs had a meeting on 16 June, at which the Administration agreed that the trade could carry out its own sampling survey and then discuss with the Administration. Will the Government inform this Council whether it will take an active part in the survey to be conducted by the catering industry so that accurate levels of effluent can be determined, thus producing accurate calculations and reducing the sewage charges?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr President, to begin with, I need to explain that the report concerning the sampling survey on those 26 restaurants did not give a full picture. In conducting the research, we had discussed with our consultant and concluded that if we chose only one restaurant or fast-food shop and obtained samples from a single discharge of its effluent for analysis, the results would certainly be unsatisfactory. Therefore, in accordance with the consultant's advice on the research, we selected the 26 restaurants from different categories in the catering industry, such as Chinese restaurants, western restaurants or fast-food shops. Samples were taken from the effluent discharged by these restaurants every 15 minutes on a certain day. As taking a single random sample of effluent would get us nowhere, we took over 2000 samples, not 26, for analysis. After making mathematical and statistical adjustments, we could have an overall picture of the sewage discharged by restaurants, large or small, all over Hong Kong. On the whole, the current position of the effluent discharged is that we have a COD value of 3600 grams per cubic metre. Having clarified this point, we had a discussion with restauranteurs on our
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intention to monitor the methods they would be using throughout their sampling survey to make sure it is unbiased. If their sampling survey produces results different from the standards prescribed under current legislation, we are prepared to amend the existing statutory charges by way of amendment tabled before the Legislative Council. However, before such survey is conducted, we must regard our survey as very accurate. In fact, as provided for in the existing legislation, recently some restaurants had appointed their own laboratories to test their effluent. Some of them made payments shortly after those tests. This proves that in some cases, our charges and testing standards are quite close to their own calculations.
DR LAM KUI-CHUN (in Cantonese): Mr President, the restaurant industry is now in the doldrums. Will the Government inform this Council whether it has estimated, from the performance of restaurants, how many of them have already closed down their business in the past several months or will do so in the next few months due to the added burden of effluent surcharge imposed? If so, what is the total number? If all of these restaurants refuse to pay the effluent surcharge, what measures will the Government adopt in response?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr President, we do not have the figures on restaurants which closed down their business because of the effluent surcharge. Nevertheless, I would like to refer Members to the 16 June 1995 issue of the Hong Kong Economic Journal, in which there was a report on an interview with the vice chairman of an organization of restaurant managers. At the interview, he said the major problems encountered by the restaurant industry emerged around the middle of last year. These problems are economic recession, high inflation, high shop rentals, and a drop in the number of visitors to the territory from China. They have caused a decline in business in the industry. I would like to point out that while many restaurants were considering closing down or reducing their operations in the light of the above problems, we had not yet sent out the bills for the sewage charges. We began sending out such bills on 1 April, and we only sent them to heavy water users. Of the 8000 plus restaurants in Hong Kong, only 1000 are heavy water users. The remaining 7000 are small consumers who naturally only have to pay lower sewage charges and we have not sent out the bills to them yet. Among the 1000 heavy water user restaurants, 840 of them have to date paid their sewage charges for the first two months. Only about 160 of them have not paid their bills.
We have conducted a number of economic surveys to study the operating costs of various industries and learned that the sewage charges levied according to current legislation will only increase the operating costs of the industry by at most 1.2%. Many restaurant operators compared the sewage charges with their net profit rather than their operating costs when interviewed by reporters. Thus, a larger percentage was obtained. I think this is not fair. Using a less than 1.2% increase in operating costs as an excuse for dismissing employees is, I
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think, not fair to the workers. Under the existing laws, the sewage charges not paid shall be a debt due to the Government, who is entitled to order a surcharge to be paid or a disconnection of water supply.
MRS ELSIE TU: Mr President, is the Government aware that no restaurant can be licensed without having a grease trap installed and that these are inspected monthly by the Urban Services Department inspectors? The Government's reply appears to suggest that they do not know about this requirement.
Admitting that some careless restaurants may deposit other effluent through the drainage system, would the Government explain whether it checks each restaurant individually for effluent or whether it just slaps the same trade effluent surcharge on all 8000 restaurants according to water usage without checking which does and which does not produce the effluent discharge? And in any case, how can a restaurant using $45,000 worth of water a month now be given a bill totalling $134,000 of which $77,000 is for trade effluent surcharge? I have got the bills here if you want to see them. I think there is a difference in our supporting "the polluter pays" and "the polluter pays through the nose".
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr President, I once worked in the Urban Services Department some 16 or 17 years ago; so I do know that in applying for a licence from the Urban Services Department or the two municipal councils, a restaurant must install grease trap facilities. But what I am talking about is the need for overall sewage discharge facilities to comply with the existing water quality control laws in Hong Kong. I daresay that the present requirements are more stringent than the simple requirements stipulated by the two municipal councils for grease traps to be installed. Regarding the checking of restaurants to ascertain whether grease traps are used, the current practice is that licensed restaurants are, in theory, visited by health inspectors who would check the grease traps. If a restaurant is situated in a water control zone, officers from the Environmental Protection Department will also check to see whether the effluent it discharges is within set standards. Mrs TU just now cited a case for an individual restaurant. According to current legislation, any restaurant or even factory which believes the pollution or volume of waste water it discharges is different from or below the prescribed level (usually by 15%), it may appoint a laboratory to conduct testing to prove its case, and then present the test results to the Government, which may vary the sewage charge it has to pay on the merits of the case. Nevertheless, it is the polluter who should prove that the discharge is below the prescribed level. Mrs TU also asked why some restaurants needed to pay sewage charges as high as $75,000 per month. A restaurant which needs to do so must be a large one, which probably have 100 to 200 employees. As a matter of fact, a restaurant with about 100 employees usually needs to pay around $20,000 per month for water charges, or an extra $22,000 when the sewage charge is added. Therefore, in the case cited, the taps might be left running non stop and so the volume of water consumed and the
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4601
effluent discharged are high. The restaurant in question may make certain improvements to reduce the amount of pollution it discharges and that of the water it consumes, thereby reducing the payments required of it. If Mrs TU has other specific examples, we will be glad to send some people to inspect those restaurants.
PRESIDENT: We have overrun considerably.
WRITTEN ANSWERS TO QUESTIONS
The Hague Convention on the Civil Aspects of International Child Abduction 1980 7. MR SIMON IP asked: Will the Administration inform this Council:
(a) whether, and if so when, it intends to extend to Hong Kong the Hague Convention on the Civil Aspects of International Child Abduction 1980;
(b) whether any consultation with interested bodies or organizations will be conducted; if so, with whom and when; and
(c) what are the necessary formalities and procedures for extending the Convention to Hong Kong and how long these will take?
SECRETARY FOR HEALTH AND WELFARE: Mr President, the purpose of the Hague Convention on the Civil Aspects of International Child Abduction 1980 is to provide an effective international mechanism for ensuring the speedy return home of a child abducted to a place overseas in violation of a custody order. About 30 countries, including the United Kingdom, are parties to the Convention.
We are actively considering the question of the need for this Convention to be extended to Hong Kong. The Law Society of Hong Kong, family judges in the District Court, the Family Section of the Legal Aid Department, and some private practitioners in family law have already been consulted on this matter.
The Convention may be extended to Hong Kong by the United Kingdom under Article 39. It would be necessary for Hong Kong to enact domestic legislation prior to the extension in order to be able to discharge obligations in accordance with the Convention. As the extension would create new international rights and obligations affecting Hong Kong, consultation with the Chinese side of the Joint Liaison Group would also be required. It is difficult to assess how long consultation with the Chinese side might take and the time
4602 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
which would then be needed to draft and pass related domestic legislation in view of other legislative priorities, were a decision taken to proceed with the extension.
Vacant Public Housing Flats
8. MR FRED LI asked (in Chinese): According to the latest information provided by the Housing Department, 40% of the 11200 vacant public housing flats have been vacant for more than six months while 1257 flats have been vacant for over one year. In this connection, will the Government inform this Council:
(a) of the total loss in rental income incurred by these vacant flats in the 1994-95 financial year;
(b) whether the Housing Department has any plan to allocate these vacant flats to overcrowded families in the near future; if so, what the detailed plan is; if not, why not?
SECRETARY FOR HOUSING: Mr President,
(a) At the end of March 1995, there were 11200 lettable flats left vacant for different reasons, and the vacancy period varied from one month to over a year. Arithmetically, the loss in rental income in 1994-95 was about $6 million.
(b) Vacant flats are earmarked for allocation to different categories of applicants, including people on the General Waiting List, overcrowded families living in public housing estates and families affected by the Housing Department's clearance and redevelopment exercises. In 1995-96, a quota of 3000 flats is reserved for transfers and relief of overcrowding from sitting tenants: 1000 for inter-estate applications and 2000 for intra-estate applications.
Hospice Care to AIDS Patients
9. DR CONRAD LAM asked (in Chinese): Regarding the allocation of additional funds to provide hospice care to an additional 400 patients this year, will the Government inform this Council:
(a) whether terminal AIDS patients are eligible to receive hospice care under this additional quota; if not, why not;
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4603
(b) what are the differences, if any, between the hospice care available to AIDS patients and that available to other terminal patients; and
(c) of the Government's short-term, medium-term and long-term strategies of providing hospice care to AIDS patients, as well as the resources required ?
SECRETARY FOR HEALTH AND WELFARE: Mr President, hospice care in public hospitals is provided on a referral basis. It has hitherto catered for terminal cancer patients who constitute the bulk of the terminally ill. The need to expand hospice care services to other patients is recognized, and in view of the present small number of AIDS patients, the Hospital Authority is planning to designate initially one hospice care unit to take care of these patients.
Given the nature of the illness, carers providing hospice services to AIDS patients require special training and preparation to cater for the fluctuating medical conditions and specific needs of these patients. It is expected that AIDS patients would also require more home-based services as well as psycho-social support and counselling.
Whilst in the long term the provision of hospice care will be extended on a need basis to all hospice units in public hospitals, the AIDS Trust Fund provides a source of funding for non-profit-making organizations to develop service initiatives in this relatively new area.
Legal Aid Cases Assigned to Private Barrister
10. MRS ELSIE TU asked: Will the Government inform this Council of the following details concerning a junior barrister in private practice who is the husband of the Deputy Director of the Legal Aid Department:
(a) how many times (if any) this barrister has been assigned in civil and criminal legal aid cases during the period 1 January 1994 to 1 May 1995;
(b) what was the duration originally contemplated in each of these civil and criminal assignments;
(c) whether the nature of the assigned civil and criminal cases included mitigation, and/or appeal against sentence or conviction or against both; and
(d) what remuneration was paid in respect of each civil and criminal case ?
4604 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
CHIEF SECRETARY: Mr President, the barrister in question has some 30 years' professional experience. During the period from 1 January 1994 to 1 May 1995 he was assigned 17 legal aid cases, and the remuneration paid on these cases up to mid-June 1995 amount to $820,300. Detailed answers to questions (a) to (d) are set out in the following table:
Types (a) No. of (b) Duration originally
of cases cases contemplated in assignments (c) Nature of cases (d) Remuneration paid
Civil cases 1 1 day ) All Personal Injury $10,000 2 1 day ) cases. In civil $24,000 3 Advice only ) cases, there is no $11,700 4 Not known ) mitigation, and/or So far no payment has been made
5 Not known ) appeal against So far no payment has been made 6 Advice only ) sentence or conviction. So far no payment has been made
Criminal cases 7 about 4 weeks Trial $144,400 8 about 1 week Trial $20,500 9 0.5 day Magistracy appeal So far no payment has been made
10 about 1 week Trial $84,500 11 about 1 week instructed on Trial So far no payment has been made very urgent basis
12 less than 1 week Trial $29,100 13 3 months Trial $415,000 14 0.5 day District Court appcal So far no payment has been made 15 0.5 day Magistracy appeal $11,500 16 Advice only Advice only $6,000 17 about 1 week Trial $63,600 Total $820,300
Overseas Visits by Department Heads
11. MR TAM YIU-CHUNG asked (in Chinese): Will the Government inform this Council:
(a) of the number of overseas duty visits made by the Postmaster General since he assumed office in May 1992, as well as the total number of days spent and the amount of expenses incurred on such visits;
(b) whether the Government has any system in place for scrutinizing applications for overseas duty visits from heads of departments; if so, what the system is;
(c) if the answer to (b) is in the negative, whether the Government will consider requesting heads of department to submit their plans on overseas duty trips to the relevant policy secretaries for scrutiny and approval each year; and
(d) what criteria will be taken into consideration in determining whether it is necessary for heads of departments to attend overseas conferences?
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4605
SECRETARY FOR ECONOMIC SERVICES: Mr President, the Postmaster General made a total of 18 overseas duty visits since he assumed office in May 1992. On five other occasions, the Postmaster General had undertaken duty visits while on vacation leave. The number of working days involved is 164, and the expenses incurred are $1.1 million.
Expenses for overseas duty visits made by heads of department and other departmental officers are subject to scrutiny by Policy Secretaries through the examiniation and endorsement of Departmental Expenses in the context of the annual Draft Estimates. Policy Secretaries also monitor departmental expenditure through the regular Programme Reviews with Controlling Officers. Where acceptance of an advantage or sponsorship is involved in the visits, approval from the Civil Service Branch is required.
In determining whether it is necessary for heads of department to attend overseas conferences or undertake overseas duty visits, the following criteria will be taken into consideration: the nature of the event, its relevance to the work of the department, the appropriate level of representation required, and whether the visit is essential to pursue or protect Hong Kong's interests.
Begging Activities
12. MR TIMOTHY HA asked (in Chinese): The number of beggars at busy locations in the territory is on the increase. The presence of these beggars, some of whom have come from other places, greatly affects the tidiness of the territory. In view of this, will the Government inform this Council:
(a) whether a survey has been conducted to find out the age, sex, nationality and methods of begging of beggars; if so, what the results are;
(b) whether measures have been put in place to curb begging activities;
(c) of the number of prosecutions instituted in the past three years together with the percentage of successful prosecutions;
(d) whether the Social Welfare Department has provided sufficient assistance to beggars so that they will give up begging; and
(e) whether the Immigration Department has taken steps to prevent those who have come to the territory as tourists from begging; if so, what these steps are; if not, why not?
4606 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 SECRETARY FOR SECURITY: Mr President,
(a) The Government has not conducted any surveys to find out the age, sex, nationality and methods of begging of beggars in Hong Kong.
(b) It is an offence to beg for alms, or to ask for alms in a threatening manner, under sections 26A and 26B of the Summary Offences Ordinance (Cap.228). The police may take enforcement action against people begging, but such action is normally only taken on receipt of a complaint and usually takes the form of a warning in the first instance.
(c) The number of persons prosecuted under sections 26A and 26B of the Summary Offences Ordinance (Cap.228), and the results of prosecution for the past three years are set out below:
1991 1992 1993 1994
(Jan to Jun)
No. of persons 11 21 11 2
prosecuted
Persons 9 19 7 1
convicted
% of 82% 90% 64% 50%
successful
prosecutions
(d) Caseworkers from family services centres operated by the Social Welfare Department offer assistance to beggars in their districts from time to time. Apart from counselling them to give up begging, other social welfare services such as financial assistance, housing assistance, institutional care (for the elderly and the disabled) and employment assistance will also be provided to assist them to give up begging.
(e) All visitors have to satisfy an immigration officer on their arrival at the point of entry that they have the necessary means of support during their period of stay in Hong Kong, before they are permitted to enter. In addition, the police inform the Immigration Department of the personal particulars of any visitor prosecuted for begging; consideration will then be given to denying his entry in future.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4607 Penalty Tickets for Parking Offences
13. MR TAM YIU-CHUNG asked (in Chinese): Will the Government inform this Council:
(a) of the number of Fixed Penalty Tickets for parking offences issued by law enforcement officers in each of the past 18 months;
(b) of the criteria adopted by law enforcement officers in deciding whether a penalty, ticket should be issued; and
(c) whether such criteria have been changed in the past 18 months; if so, what the reasons were?
SECRETARY FOR TRANSPORT: Mr President,
(a) Figures on the number of fixed penalty tickets issued for parking offences in the past 18 months are annexed.
(b) If a police officer or traffic warden observes that parking offences have been committed, then they may issue fixed penalty tickets. However, officers are encouraged to use their discretion where circumstances so permit, and to warn offenders rather than issue tickets. Such discretion may be exercised, for example, where:
(i) the nature of the offence is trivial; or
(ii) there is no intent on the offender's part to commit an offence (for example, a genuine mistake or misunderstanding).
(c) There has been no change in policy or in the criteria for issuing fixed penalty tickets in respect of parking offences.
Annex
Monthly Figures on Numbers of
Fixed Penalty Tickets Issued for Parking Offences
December 1993 to May 1995
December/1993 191753
January/1994 194811
February/1994 151942
March/1994 188165
4608 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
April/1994 174736
Monthly Figures on Numbers of
Fixed Penalty Tickets Issued for Parking Offences
December 1993 to May 1995
May/1994 193017
June/1994 159651
July/1994 161993
August/1994 165144
September/1994 166970
October/1994 174287
November/1994 174802
December/1994 171588
January/1995 173669
February/1995 152926
March/1995 175371
April/1995 161303
May/1995 168964
Cross Harbour Tunnel Passage Tax
14. DR SAMUEL WONG asked: According to the Government, the inclusion of the government passage tax in the Cross Harbour Tunnel tolls is intended for raising funds to build future cross-harbour tunnels so as to reduce tunnel traffic. Will the Government inform this Council:
(a) how much government passage tax has been collected from the date of the opening of the Cross Harbour Tunnel to 31 March 1995; and
(b) how the government passage tax collected is put to use having regard to the fact that the Eastern Harbour Crossing was built by the private sector and that the Western Harbour Crossing project will also be constructed by the private sector at its own expense?
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4609
SECRETARY FOR TRANSPORT: Mr President, the passage tax at the Cross Harbour Tunnel was introduced in June 1984, as a traffic management measure to alleviate congestion and not, as the Honourable Member has suggested, to raise funds for the construction of future cross harbour tunnels per se. The tax collected becomes part of General Revenue but, in proposing the passage tax in his 1984 Budget speech, the Financial Secretary firmly indicated that whilst "it would be improper to accept any strict hypothecation", the increased revenue would be "especially available for transport purposes".
The answers to the specific questions are as follows:
(a) the total passage tax collected up to 31 March 1995 amounted to $2.04 billion;
(b) huge sums have been invested in transport infrastructure in recent years, for example, over $17 billion in the past five years. This far exceeds the amount of passage tax collected. Looking ahead, $30 billion will be spent on new roads in the coming five years. Whilst the Eastern Harbour Crossing and the Western Harbour Crossing are privately built, the Government has still invested very substantial sums in land formation for these projects as well as road connections to these tunnels.
Compassionate Rehousing
15. MR FRED LI asked (in Chinese): According to the existing policy on compassionate rehousing, the Housing Department (HD) reserves, as from 1994-95, a quota of 2000 public housing flats each year to be used by the Social Welfare Department (SWD)for compassionate rehousing purpose. In this connection, will the Government inform this Council:
(a) of the respective numbers of flats in the compassionate rehousing quota used by the SWD in 1994-95 and 1995-96 (from 1st April up to the present);
(b) of the breakdown of the number of cases approved in 1994/95 and 1995-96 according to the applicants' living conditions (such as living environment, income, family background and so on) and their health conditions (to be supported by medical certificates) which are the two main eligibility criteria for compassionate rehousing adopted by the SWD ;
(c) whether there is a set of standardized guidelines commonly used by SWD staff in examining applicants' eligibility; if so, what the guidelines are; if not, what criteria the SWD staff adopt in the screening process;
4610 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
(d) whether the HD will, upon receiving compassionate rehousing cases referred by the SWD, re-examine such referrals, or simply assist the SWD in allocating public housing flats to the applicants; and whether the location of flats offered for rehousing is decided by the SWD or HD; and
(e) whether there are clear internal guidelines within the HD and the SWD delineating the responsibilities of the two departments in implementing the policy on compassionate rehousing?
SECRETARY FOR HEALTH AND WELFARE: Mr President,
(a) In 1994-95, 2021 flats were allocated under the compassionate rehousing scheme, exceeding the original quota of 2000 flats reserved for the scheme. In the first two months of 1995-96, 216 flats were allocated for compassionate rehousing, against the full year quota of 2000 flats.
(b) The aim of the compassionate rehousing scheme is to help individuals and families who have a genuine and immediate housing need because of specific circumstances and personal factors. Applications for compassionate rehousing are assessed according to a set of criteria which include an assessment of the housing need, family, financial and residential status and relevant social and medical grounds. The applications approved for compassionate rehousing are not categorized in terms of the applicants' living and health conditions and such a breakdown is, therefore, not readily available.
(c) There are standardized guidelines for processing applications for compassionate rehousing which are followed by staff of the Social Welfare Department (SWD). The guidelines cover the eligibility criteria, completion of requisite forms and time limits for processing the applications.
(d) The Housing Department (HD) will not re-examine an applicant's eligibility for compassionate rehousing if the application has been recommended by the SWD. In line with the standard allocation procedures for public housing units, the HD will only conduct a simple check and pre-letting interview to confirm that an applicant is not currently receiving any other form of public housing benefit, and to ascertain his/her identity and choice of district. Subject to the availability of public rental flats, the applicant's choice of district will be entertained as far as practicable.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4611
(e) There is a clear division of responsibilities between the SWD and the HD in implementing the compassionate rehousing scheme. While the SWD is responsible for assessing the applications and recommending eligible cases for compassionate rehousing, the HD is responsible for the allocation of flats. There are mutually agreed working procedures and channels of communication between the two departments to ensure the effectiveness of the scheme in helping needy clients.
Employees Retraining Scheme
16. DR HUANG CHEN-YA asked (in Chinese): Regarding the Employees' Re-training Scheme, will the Government inform this Council:
(a) of the total amount of expenditure on "training allowance" in 1994-95 and how does this amount compare with that of 1993-94; and what is the estimated expenditure in 1995-96;
(b) whether the Employees Retraining Board ("the Board") is considering to reduce the amount of allowances granted for attending day and evening courses; if so, what factors will be taken into consideration; and when the result will be released;
(c) of the duration (in terms of hours) of each of the re-training courses currently offered by the Board; and how do these figures compare with those in 1993-94 and 1994-95 respectively;
(d) of the numbers of applicant waiting to attend full-time and evening courses at present respectively, as well as the normal waiting time required; and
(e) whether the Administration has any plan to shorten the training period of such courses so as to increase the number of courses on offer; if so, could the Administration provide a list of the courses whose duration will be shortened, together with the respective periods to be shortened, and a list of the titles and duration of the courses which will be increased as a result?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President,
(a) The total expenditure on retraining allowance was $21 million in 1993-94 and $51 million in 1994-95. The estimated expenditure on retraining allowance for 1995-96 is $62 million.
4612 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
(b) The training allowances are reviewed annually and will be considered by the Employees Retraining Board (ERB) at its next meeting. In its review, the ERB will take into account the purpose of the allowances. In the case of full-time day courses, the amount per month for each retrainee is pitched at one-half of the overall median monthly employment earnings of Hong Kong's local labour force computed by the Census and Statistics Department. The retraining allowance for part-time evening courses was designed specifically for the purpose of covering the costs of meal and transportation incurred by retrainees who attend these courses. The result of this year's review on the amounts of retraining allowance is expected to be announced by the ERB after its Board meeting later this month.
(c) The duration of the 144 retraining courses currently offered by the ERB is summarized at Appendix I. The duration of the courses offered throughout the past two years has remained generally unchanged.
(d) The number of applicants waiting to attend full-time and part-time (both evening and half-day) retraining courses are 4033 and 8301 respectively. The waiting time for attending the Job Search Skills Course is one week. For Job Specific Skills Courses and the General Skills Courses, the average waiting time ranges from two weeks to four months depending on the popularity of the courses and the places available.
(e) The training period required for each retraining course varies according to the course content and the level of skills of the retrainees. The duration of the retraining courses is regularly reviewed by ERB. It has no plans to shorten the training period of any retraining courses for the time being.
Appendix I
List of Retraining Courses and Their Duration
Course duration (hours)
Course type Current 1994-95 1993-94 (1995-96)
?. Normal Retraining Programmes
A. Core Course
1. Core Course on Job Search Skills 35 35 35 B. Job-specific Skills Course
2. Junior Cook (Roasted Food) 308 308 140 3. Basic Techniques for Waiter/Waitress in - - 70 Chinese Restaurant
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4613
List of Retraining Courses and Their Duration
Course duration (hours)
Course type Current 1994-95 1993-94 (1995-96)
4. Hotel Housekeeping (Cleaning Service) 190 190 190 5. Computerized Chinese Typesetting 656 656 656 6. Print Finishing - - 152 7. Basic Retail Sales Techniques - - 76 8. Basic Stock-keeping - - 152 9. Fast Food Auendant 190 190 190 10. Warchousing Operations - - 90 11. Housekeeper Service 160 160 160 12. Buildings Caretaker 160 160 160 13. Receptionist and Office Assistant 320 320 320 14. General Clerk and Chinese Computer Application 320 320 320 15. Pre-Job Training on Office Practice for Housewives 180 180 180 16. Decorative Painting 600 600 600 17. Decorative Joinery 600 600 600 18. Construction Purchaser and Storekeeper 800 800 800 19. Junior Account Clerk 105 105 280 20. Waiter/Waitress (Western Restaurant) - - 160 21. Chinese Bookkeeping 140 140 140 22. Shipping and Documentation of Clothing Industry 440 440 440 23. Preparation of Production Order - - 528 24. Sample Making 528 528 528 25. In-Line QC Inspection - - 176 26. Garment Fitting Alteration 264 264 264 27. Offshore Quality Control - - 528 28. Security Guard Training 78 78 - 29. Personal Care Workers and Janitorial Workers for 3 3 - the Elderly and Attention Home Training Seminar
30. Personal Care Workers for the Elderly Care 48 48 - and Attention Home Training Course
31. Janitorial Workers for the Elderly Care and 40 40 - Attention Home Training Course
32. Estate Management Trainee Training 160 - - 33. Sampling for Knitwear - - 528 34. Clothing Materials Planning and Purchasing 352 352 352 35. Computer Aided Sketching, Grading and 528 528 - Marker Laying
36. Basic Apparel Merchandising 528 528 528 37. Basic Pattern Making 528 528 528 38. Basic Clerical Training 400 400 400 39. Office Assistant Training 320 320 320 40. Chinese Dim Sum Maker - 160 160 41. Course on Import and Export Procedure and 21 21 21 Documentation Foundation
42. Course in Retail Service - 12 12 43. Job Re-entry Program for Displaced Workers - 240 240 44. Introduction to Desktop Publishing 170 170 170 45. Computer Art Work and Desktop Publishing 170 170 170 46. Training on Basic Office Skills 120 120 120 47. Course on Self-employ 75 75 75 48. Estate Attendant Management Course 100 150 - 49. Tutor Training for Primary School 56 56 - 50. Public Maxicab Driver Training 20 20 - 51. Housekeeping Training 190 190 190 52. Caretakers Training 70 70 - 53. Restaurant Workers Training 12 - - 54. Housewives Chinese Paging Operator Training 75 80 - 55. Salesmanship Training 90 90 -
4614 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
List of Retraining Courses and Their Duration
Course duration (hours)
Course type Current 1994-95 1993-94 (1995-96)
C. General Skill Courses
56. Office Mandarin 27.5 27.5 24 57. English for Waiter/Waitress - - 24 58. Office English 27.5 27.5 36 59. Practical English 30 60 120 60. Practical Mandarin 30 40 - 61. Practical Japanese 50 50 - 62. Job Search Orientation and Basic English - - 64 63. Computer Operator Training 42 42 - 64. Mandarin for Retail Business 44 44 - 65. Introduction to Typing 33 33 36 66. Chinese Computer Application 30 30 - 67. Chinese Data Entry and Introduction to Computer 97.5 97.5 350 68. Foundation Course for Adults-Elementary - 300 300 69. Foundation Course for Re-employment-Elementary - 300 300 70. Computer Application Software - 200 144 71. Typing and Chinese Computing Input 36 48 48 72. Computer Chinese Word Processing Speed Training 16 16 - 73. Job Orientation Course for the Housewives - 63 - 74. Computer Data Processing Operator Training 60 60 - 75. Verbal/Communication Skills Training for 10 - - Service Industry
76. Sign Language Training for Supervisors 12 12 - D. Skill Upgrading Courses
77. Local Knowledge for the Oral Exam leading 36 36 36 to Local Master Cert (up to 300 tonnage)
78. Mould and Tooling Craftsmen and 376 376 376 Technicians Retraining
79. Auto CAD training for existing draughtsman 90 90 90 80. Retraining for Mechanical Craftsmen and Technicians 340 340 - 81. MicroStation training for existing draughtsman 90 90 90 82. Diecasting Shopfloor Operatives Training 189 189 - 83. Skill Upgrading Program for Product Design and 175 175 - Development Personnel
84. The Chartering Practice and Charter Parties Course 60 60 - 85. The Liner Service and the Law Course 60 60 - 86. Ship Sale and Purchase Law and Practice 60 60 - 87. Salesman Mandarin for new learners for 60 60 - existing salesmen
88. Skill Upgrading of Electroplating Operatives 195 195 - 89. Skill Upgrading of Sign Making Operatives 95 95 - 90. Skill Upgrading of Plastic Machinery Operatives 195 195 - 91. Law of Contract Upgrading Course 60 60 - 92. Fleet Operations and Management Upgrading Course 60 60 - 93. Upgrading Course on Electricity Ordinance and Skills 40 - - 94. Upgrading Course on the Testing Skills for the 16 - -
Completion of Electrical Installation Work
95. First Aid al Sea Upgrading course 36 - - 96. Upgrading Course on Design for Marketing 18 18 - (Ladies' Shoes)
97. Upgrading Course on Production Management 30 30 - (Sports Shoes)
98. Upgrading Course on CAD/CAM for Pattern 12 12 - Design and Grading
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4615
List of Retraining Courses and Their Duration
Course duration (hours)
Course type Current 1994-95 1993-94 (1995-96)
II Tailor-made Programmes for Elderly
A. Job-specific Skills Courses
99. Courier Training for the Elderly 75 75 - 100. Junior Clerk Training for the Elderly 150 75 - 101. Convenience Store Assistant Training for the Elderly - 40 - 102. Paging Operator Training for the Elderly 150 150 - 103. Assistant Electrician Training Seminar 1.5 1.5 - 104. Assistant Electrician Training Course 216 216 - 105. Supermarket Store Assistant Training - 30 -
B. General Skills Courses
106. Job Orientation Course for the Elderly 75 75 - 107. English for the Elderly 60 60 - 108. Fundamental Mandarin for the Elderly 60 60 - 109. Comprehensive Training for the Elderly 42 42 -
III. Tailor-made Programmes for Disabled
A. Job-specific Skills Courses
110. Basic Office Assistant Training for Mentally 912 912 912 Handicapped
111. Basic Food and Catering Training for Mentally 912 912 912 Handicapped
112. Cleaning Service Training for Mentally 912 912 912 Handicapped
113. Desktop Publishing Training for Physical 54 54 54 Handicapped
114. Acuprcssure and Massage Training for the Blind 500 1350 1350 115. Pre-job Training for Visually Impaired Paging Operators 144 144 144 116. Reception and Clerical Work Retraining for Physical 369 369 - Handicapped
117. Skill Training in Making Ceramic Wares for 420 420 - Physical Handicapped
118. Stationery Shop Training for Recovered Mental Patients - 910 - 119. Cleaning Service Training for Recovered Mental 912 912 912 Patients and Mentally Handicapped
120. Office Practice Training for Recovered Mental Patients 120 120 - 121. Integrated Computer Course for Office Practice 60 60 48 for Physical Handicapped
122. Security Service Training for Recovered 15 15 - Mental Patients
123. Introduction to Autocad Training for 24 - - Mentally Handicapped
124. Office Assistant/Messengerial Training for 420 - - Mentally Handicapped
125. Tele-marketing and Tele-market survey Training 32 - - for the Blind
126. Chinese Paging Operator Training for Physical 108 108 - Handicapped
127. Ticketing Teller Training for Handicapped 36 36 -
4616 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
List of Retraining Courses and Their Duration
Course duration (hours)
Course type Current 1994-95 1993-94 (1995-96)
B. General Skills Courses
128. Pre-job Training for Mentally Handicapped 180 180 420 129. Comprehensive Retraining Scheme for 455 455 175 Recovered Mental Patients
130. Pre-job Training for Physical Handicapped 96 96 - 131. Interpersonal Relationship and Working Attitude 8 8 - Training for the Deaf
132. Chinese Computer Training for the Deaf 90 90 - 133. English for Office Practice for the Deaf 72 72 - 134. English for Physical Handicapped 27 27 - 135. Back to Work Course for physical Handicapped - 84 - 136. Chinese Computing Training for Physical Handicapped 60 60 - 137. Home Based English and Computer Training 210 210 - for Physical Handicapped
138. Pre-job Training for Recovered Mental Patients 96 96 - 139. Computer Training for Chronic Illness Patients 840 - -
IV. Tailor-made Programme for Industrial Accident
Victims
140. Pre-job Training for Industrial Accident Victims - 35 35 141. Preparation for re-entry to work for Industrial 15 - - Accident victims
V. Regular Training Courses
142. Regular Training Courses offered by 266 266 266 Vocational Training Council
143. Regular Training Courses offered by 560 560 560 Construction Industry Training Authority
144. Regular Training Courses offered by Clothing 660 660 660 Industry Training Authority
CSSA for the Unemployed
17. MR LEE CHEUK-YAN asked (in Chinese): As the current unemployment rate in the territory is the highest recorded in nine years will the Government inform this Council of:
(a) the number of applications for Comprehensive Social Security Assistance (CSSA ) made by people who are unemployed, as well as the total amount of CSSA payments in respect of such cases in the last financial year; and
(b) the anticipated amount of CSSA payments to those applicants who are unemployed in the current financial year?
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4617
SECRETARY FOR HEALTH AND WELFARE: Mr President, for the purpose of this reply, "unemployment cases" among applications for Comprehensive Social Security Assistance (CSSA) are defined as being those cases involving able-bodied persons aged 15 to 59 who are in normal health but are unemployed and in need of financial support.
In the 1994-95 financial year, about 3700 applications for CSSA, representing about 7.4% of all applications made, were classified as "unemployment cases". Such cases received about $110 million in CSSA payments in that year, representing about 3.2% of the total CSSA payments made.
Based on past trends and taking into account the various improvements to CSSA rates including adjustments for inflation with effect from 1 April 1995, the amount of CSSA payments for "unemployment cases" estimated to be needed for the current financial year is about $150 million (about 3.7% of the estimated total payment).
SFC's Authority to Impose Penalty
18. MR CHIM PUI-CHUNG asked (in Chinese): Regarding the authority of the Securities and Futures Commission (SFC), will the Government inform this Council whether, apart from its power to impose penalties stipulated in the relevant legislation, the SFC has. the power also to penalize the persons concerned under its own regulations; if so, whether those regulations are legally binding?
SECRETARY FOR FINANCIAL SERVICES: Mr President, the statutory functions of the Securities and Futures Commission (SFC) include, among other things, the enforcement of the law relating to securities and futures trading; the safeguarding of the interests of investors, and the suppression of illegal, dishonourable and improper practices in securities and futures dealings. For discharging these statutory functions effectively and transparently, the SFC has promulgated non-statutory codes and guidelines which lay down standards of practice and behaviour for securities and futures transactions in Hong Kong. Some of the codes and guidelines provide for sanctions such as private reprimand and public censure.
The codes and guidelines do not have the force of law and in that sense are not legally binding. They are instruments which the SFC uses to discharge its statutory functions, and have been promulgated after consultations with the market.
4618 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 Religious Activities in Hong Kong
19. MR WONG WAI-YIN asked (in Chinese): Regarding the activities of religious groups in the territory, will the Government inform this Council:
(a) of the number of various religious groups in the territory of which the Government is aware, together with a breakdown of their names and countries of origin;
(b) of the criteria adopted by the authorities concerned in deciding whether to allow a particular religious group to operate in the territory;
(c) whether it is aware of individual religious groups (one of which is from Japan) which do not allow elderly followers who are sick to consult the doctor, and instead ask them to offer all their money before curing their illnesses by "performing supernatural acts"; and
(d) how the authorities concerned will handle the problem mentioned in (c) above?
SECRETARY FOR HOME AFFAIRS: Mr President,
(a) As provided for under the Societies Ordinance (Cap.151), any society organized and established in Hong Kong or having its headquarters or chief place of business in Hong Kong is required to send a written notification to the Societies Officer setting out the name and object of the society and other related information on establishment. According to the Societies Officer, 310 societies engaged in religious activities have notified him of their establishment. They can be categorized by religion into 10 groups. The names of these societies and their respective religious categories are given at the annex. There is no requirement under the Societies Ordinance for information on the country of origin of the society concerned.
It should be noted that a religious group can register as a company under the Companies Ordinance (Cap.32). If it does so, there is no need for it to inform the Societies Officer of its establishment. We do not classify companies by their activities. It is therefore not possible to provide a list of companies engaged in religious activities.
(b) All religious groups can operate freely in Hong Kong unless their operation is prejudicial to the security of Hong Kong and public safety and order. No special criteria are applied to societies or companies engaged in religious activities.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4619
(c) The Government is not aware of any religious groups as described in part (c) of the question operating in Hong Kong.
(d) On receipt of information concerning religious activities that may endanger public order or individual safety, the police will conduct thorough investigations to see if any offences have been committed.
Annex
Category by Religion
R1 Sikh
R2 Islamic
R3 Catholic
R4 Hindu
R5 Buddhist
R6 Taoist
R7 Christian
R8 Shiah Asna Ashri
R9 Tenrikyo
R10 General
Reg. No. Name of Societies Nature
00391NCE Sham Shui Po Gospel Campagin R7 04788REG Khalsa Naujarvan Sabha (Sikh Youth Association) R1 03488EXS Christian Fellowship Centre R1 00224REG Khalsa Diwan Hong Kong (Sikh Temple) R1 06867REG Yuk Quong Kwong Benevolence Society R10
05460REG United Muslim Association of Hong Kong R10 04974REG Muslim Personnel Centre R10 04647EXS Wednesday Lunch R10 03191REG Hong Kong Fuk Tak Association R10 02911REG St Martin's Association R10 02045REG World Union of Marist Ex-students Hong Kong Division R10 07117REG Cheung Chau Sai Wan Ma Sing Temple Management Association R10 01258NCE Tuen Mun Lam Tei Area "Yu Lan" Association R10 01300NCE International Supreme Master Ching Hai Meditation R10 Association - Hong Kong Centre
01343NCE Sukyo Mahikari Hong Kong R10 01466NCE Eckankar Hong Kong Society R10 01595NCE Genbukan Hong Kong Shibu R10 02430NCE Idara Minhaj-ul-quran, International, Hong Kong R10 06311REG Mumtaj Mahal Club R2
06223REG Shalimar Club R2
4620 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
Reg. No. Name of Societies Nature
05451EXS Islamic Movement Hong Kong (Tehrik-e-islamic Hong Kong) R2 04987REG Anjumane Burhani Hong Kong Dawoodi Bohra Association R2 04446EXS International Islamic Society R2 04095REG Hong Kong Islamic Youth Association R2 01711NCE World Assembly of Muslim Youth (Hong Kong) R2 06904EXS Prince of Wales Hospital Catholic Association R3 06840EXS Saint Luke Orthodox Church in Hong Kong R3 05575EXS St Stephen's Society R3 05142EXS Hong Kong Diocesan Chinese Priests Association R3 04976EXS Hong Kong Catholic Board of Education R3 03369REG Ladies' Guild of St Joseph's Church of Hong Kong R3 03095EXS Caritas Lok Hcep Club R3 02505EXS Association of Salesian Cooperators R3 02488REG Hong Kong Catholic Nurses Guild R3 02465EXS Chi-rho Maria Mission Helpers R3 02396EXS Serra Club of Hong Kong R3 02207EXS Hong Kong Federation of Catholic Students R3 01829EXS Hong Kong Central Council of Catholic Laity R3 00162EXS Confraternity of St Joseph Wan Chai R3 00398EXS Sodality of Children Mary R3 00537EXS Catholic Cathedral Choir R3 00538EXS Hong Kong Altar Boys Association R3 00540EXS Children of Mary R3 00553EXS Sportleship of Prayer R3 00554REG Catholic Truth Society of Hong Kong R3 00591EXS Altar Boy's Society R3 00595EXS Children of Mary R3 00633REG Confraternity of the M H Sacrament Men's Section R3 00744EXS Legion of Mary (Hong Kong Comitium) R3 00745EXS St Margaret Mary's Church Altar Boy's Association R3 00767EXS Confraternity of the Most Blessed Sacrament R3 01155REG Guild of St Luke St Cosmas and Damian R3 07127REG Alay Kapwa Catholic Group R3 07415EXS Volunteers of Suffering R3 00680REG Canossian Couvent R3 02177NCE Little Brethren of Mary R3 02406NCE Tulay Ng Tagumpay (Hong Kong) Foundation R3 05767REG Hindi Video Caseue Exchange Library R4 05321EXS Hindu Swayamsevak Sangh R4 00570REG Hindu Association R4 04456EXS Elan Vital Foundation of Hong Kong R5 03478REG Chung Un Benevolent Society R5 03445REG Tak Kow Tin Tak Benevolent Society R5 03444REG Hong Kong Tak Kow Chi Tak Benevolent Society R5 03390REG International Buddhism Research Association R5 03315EXS Chiu Fat Association R5 03265REG Buddhist Women Fraternity Association R5 03029REG Buddhist Youth Centre R5 01930REG Fa Kai Yuen Ming Buddhist Association R5 00362REG Confucian Society R5 07106EXS Hong Kong Buddhism Promotion Association R5 07225EXS Mahayana Buddhist Association R5 07485REG Yin Moon Buddhist Follower Association R5 07763EXS Shinnyo-En Hong Kong Society R5 07835EXS Natural Buddha Association R5 07963EXS Sambodhi Buddhist Society R5 08053EXS Right Path Foundation Association R5 08578EXS Tak Kow Po Hing Oi Tun Tai Wong Yeh Temple R5 Benevolence Society
00081NCE Hing Sau Lotus Relegious Association R5 00159NCE Dharmakosa Buddhamussaii Society R5
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4621
Reg. No. Name of Socictics Nature
00283NCE Kam Tin Pat Heung Tai Kong Po Chiu Kiu U R5 Shing Wui
00330NCE R5 00470NCE Buddha's Pasture of Hong Kong R5 00713NCE R5 00648NCE Jen Foo Chung Shih Shan Tang R5 00611NCE Hong Kong Pu Zhao Tang R5 01193NCE R5 01229NCE R5 01439NCE Chinese International Mei-Hua Buddhists and Taoists Fund R5 Association
01585NCE "Chiu Yuen" Buddism Association (Kam Fai Court) R5 01624NCE Isvara R5 01894NCE Buddhist Reinearnation Society of Hong Kong R5 02043NCE Institute of Buddhist Learning and Practice (Hong Kong) R5 02044NCE Due-Tsang Monastery Foundation R5 02082NCE Buddhism Enlightening Association (Chin Chug) R5 02141NCE Merely Buddhism Association R5 02445NCE Natural Baddish Association R5 02507NCE Sheen Ming Nina Of Tang R5 03582REG To Know Tin Wan Hang Tan R6 03338REG Hong Kong Said King Benevolent Society R6 00183REG Yuan Chin Kook Taoist Society R6 04108REG Western District Shaun Fungi Lane Old Funk Take Kung R6 Association
04026REG Take Know Way San Shear R6 08522REG E. Bark Kung Temple Rebuilding Committee, Hong Kong R6 08483EXS Tin Take Shying Know Chung Sin Monastery R6 00255NCE Tai Yuan Gee R6 00002MCE Chi Way Tong Fa Pall Association R6 00910NCE Lam Fat Hang Taoism Research Association R6 01897NCE Chisong Huang Da-Xian Association R6 06703REG Hong Kong Christian Social Workers' Association R7 06817EXS Christian Gospel Hall R7 06856REG Hong Kong Christian Association of Cultural and R7 Recreational Activities
06813REG Queen Mary Hospital Christian Fellowship R7 06644REG Christian Spiritual-Rock Church R7 06564REG Inernational Service Fellowship (Hong Kong) R7 03673EXS Christian Saints' Assembly R7 06960REG Church Workers Association R7 06923REG Christian Concern for the Homeless Association R7 06919REG United Christian Hospital Doctors' Association R7 06902REG Princess Margaret Hospital Christian Fellowship R7 06329REG Chain of Charity Movement R7 06574EXS Asia Evangelistic Fellowship-Hong Kong R7 06529REG Conservative Baptist Yah Wo Church R7 06965EXS Hong Kong College Societas Rosicruciana in R7 Civitatibus Foederatis
06927EXS Hospital Chaplain Personnel Fellowhip Hong Kong R7 06876EXS Full Gospel Business Men's Fellowship International R7 Hong Kong
06871EXS Hong Kong Queen Mary Hospital Christian Chaplaincy Committee R7 06863EXS Church of Zion R7 06814EXS Princess Margaret Hospital and Kwai Chung Hospital R7 Chaplaincy Committee
06785EXS Christian Grace Church R7 06750EXS Chung Shun Christian Church R7 07000EXS Wan Chai District Pastors' Fellowship R7 06233REG Faith and Love Christian Youth Centre R7 06185REG Society of Television Awareness Training R7 06174EXS Christian Fellowship Prince of Wales Hospital R7
4622 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
Reg. No. Name of Societies Nature
06087EXS Women's Aglow Fellowship R7 06070EXS Christians R7 06011REG Church of God in Hong Kong R7 06002EXS High Rock Evangelical Church R7 05903EXS Christianity Life Church R7 05894EXS Everlasting Light Mission R7 05857EXS Church of All Nations Lutheran R7 05847EXS Hong Kong-Macao Conference of Seventh-day Adventists R7 05808REG Lawyers Christian Fellowship R7 05797EXS Korean-Chinese Evangelistic Mission R7 05781EXS Christ Disciples' Church R7 05743EXS Light and Love Home R7 05701EXS Christian Glorify Grace Church R7 05689EXS Lighthouse Baptist Church R7 05533REG Student Christian Movement of Hong Kong R7 05251EXS Christian Gospel Disciples Church R7 05213EXS Church of Christ (Mei Foo) R7 05117EXS Teachers' Christian Fellowship Hong Kong R7 05113EXS Holy Spirit Association for the Unification of R7 World Christianity
05088EXS Christian Literature for the Blind R7 05056EXS Danish Seaman's Church Hong Kong R7 04936EXS Christian Assembly Hall Hong Kong R7 04923REG Tolo Adventure Centre R7 04782EXS United Christian Evangelistic Fellowship R7 04772REG New Testament Church of Hong Kong R7
04606EXS Christian Medical Fellowship of Hong Kong R7 04455EXS Christian Chung Yung Church of Hong Kong R7 04288EXS Christian Fellowship Queen Elizabeth Hospital R7 04279EXS Young Men's Christian Association of Hong Kong R7 04167REG Discovery Centre R7 04102REG Hong Kong Diocesan Catechists Association R7 03933EXS World Home Bible League Hong Kong Division R7 03610EXS World Outreach Incorporated Hong Kong Branch R7 03529EXS Chinese Overseas Christian Mission (Hong Kong Branch) R7 03494REG Hong Kong Mission of the Association of R7 International Gospel Assemblies, Incorporated U.S.A.
03345EXS Christian Drama Society Hong Kong R7 03142EXS Hong Kong Consultative Council of International R7 Council of Christian Churches
03046REG Salvation Evangelistie Fellowship R7 02926EXS Hong Kong Evangelical Fellowship R7 02770REG Y's Men's Club of Tsuen Wan R7 02504EXS Evangelische Gemeinde Deutscher Sprache in Hong Kong R7 (German Speaking Evangelical-Lutheran Congregat)
02428EXS Hong Kong Crusaders R7 02339REG Young Christian Workers R7 02298EXS Boys' Brigade Hong Kong R7 02284EXS Hong Kong Overseas Mission R7 02242REG Y's Men's Club of Victoria Hong Kong R7 02223EXS Hong Kong Japanese Christian Fellowship R7 02129REG Hong Kong Lutheran Lay Members' Fraternity Association R7 02111EXS Council of Young Men's Christian Association of Hong Kong R7 01931REG Hong Kong Nurse's Christian Fellowship R7 01879REG Christian Business Men's Committee of Hong Kong R7 01816REG Filipina Catholic Association R7 01814REG Pentecostal Mission Hong Kong and Kowloon R7 01719EXS Evangelical Reading Room R7 01718REG Graduate Christian Fellow ship R7 00621REG HKU Christian Association R7 07058EXS Shepherd Community Church R7 07052EXS Conservative Baptist Yan Lok Church R7
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4623
Reg. No. Name of Societies Nature
07096REG Wycliffe Bible Translators Hong Kong Council R7 07049EXS Long and Lat Crusade R7 01259REG Lantau Mountain Court Residents' Association R7 07115REG Christian Health Concern Association R7 07124EXS Hong Kong Church of Christ R7 07187REG Hong Kong Women Christian Council R7 07188REG Hong Kong Christian Institute R7
07154EXS Castle Peak Baptist Church R7 07219EXS Conservative Baptist Yan Mun Church R7 07258EXS Gerizim Evangelical Church R7 07260EXS Gerizim Ministries R7 07262EXS Christian Women's Fellowship R7 07302EXS Saint Barnabas Society and Home R7 07308EXS Kau Wah Keng Christian Church R7 07404EXS Word for the World Christian Fellowship (Hong Kong) R7 07431REG Christian for Hong Kong Society R7 07467EXS Christian Cornerstone Church R7 07510EXS Jesus for Hong Kong Outreach R7 07516EXS Christian Cluture Society R7 07517EXS Hospital Chaplaincy Committee of Tuen Mun and R7 Yuen Long District
07567EXS Grantham Hospital Chaplaincy Committee R7 07579REG Turning Point Association R7 07600EXS Kwong Wah Hospital and Wong Tai Sin Hospital R7 Chaplaincy Committee
07590EXS Yuen Long Full Gospel Ministers Fellowship R7 07687EXS United Marriage Encouter (Hong Kong) R7 07688EXS Hong Kong Deaf People Christian Church R7 07690EXS Lord Grace Church of Hong Kong R7 07734REG Chinese Christian Religious Education Association R7 07767REG Sun Tin Wai Gospel Hall R7 07800REG Bukas-loob Sa Diyos (Hong Kong) Foundation R7 07802EXS Village Gospel Mission R7 07825REG Overseas Chinese Christian Graduates Fellowship R7 07833REG Garden Streams-Hong Kong Fellowship of Christian Artists R7 07854EXS Yuen Long District Christian Churches Union R7 07848EXS Wah Fu Church of Christ R7 07845REG Parousia R7 08047REG Southern District Pastors' Fellowship R7 08146EXS Light of Yung Shu Tau Christian Church R7 08152EXS Friends World Committee for Consulation Asia-West R7 Pacific Section
08154EXS Free Believers in Christ Fellowship International (Hong Kong) R7 08136EXS Concordia Welfare and Education Society R7 08144REG Gabrical Richard Institute R7 08126EXS Tat Po pastor's Fellowship R7 08160EXS Mission for all the World R7 08172EXS Agape Christian Fellowship (Correctional Services Department) RT7
08243EXS Conservative Baptist Grace Church R7 08352EXS Tuen Mun Hospital Christian Fellowship R7
08377REG Fanling Christian Church R7 08381EXS Conservative Baptist Yah Lam Church R7 08481EXS Enlighten Tutorial Centre R7 08454EXS Revive Hong Kong Evangelistic Crusade R7 08423EXS Nottingham Chinese Christian Fellowship R7 08432EXS Fountain of Lilfe Christian Fellowship R7 08346EXS Tuen Mun Good Partners Youth Service Association R7 (Christianity)
08446EXS Hosanna Chanters R7 08347EXS Christian Fellowship, Fanling Hospital R7 08912EXS Good Land Church of Christ R7
4624 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
Reg. No. Name of Societies Nature
00093NCE Glorious Praise Christian Centre R7 00120NCE Chaplainry Ministry Committee Sha Tin Hospitals R7 00115NCE Fairview Park Christian Church R7 00034NCE Fanling Hospital Chaplaincy Committee R7 00029NCE Sources R7 00051NCE Yan Chai Hospital Chaplaincy Committee R7 00067NCE Reach out for Christ School of Ministries (Hong Kong) R7 00257NCE Franciscan Order-Hong Kong Alias Franciscan Fathers R7 00240NCE Peace Gospel Hall R7 00150NCE Art Mission R7 00277NCE Christian Salvation Church R7 00302NCE His Sanctuary (HK) R7 00328NCE Solid Rock Ministries R7 08267EXS New Horizon R7 00434NCE Ruttonjee Hospital Christian Fellowship R7 00495NCE Church of God in Hong Kong (Sha Tin Branch) R7 00499NCE Church of God in Hong Kong (Ngau Tau Kwok Branch) R7 00492NCE Church of God in Hong Kong (Tuen Mun Branch) R7 00484NCE Church of God in Hong Kong (Tsing Yi Branch) R7 00490NCE Church of God in Hong Kong (Yuen Long Branch) R7 00489NCE Church of God in Hong Kong (Tai Po Branch) R7 00486NCE Church of God in Hong Kong (Kwai Chung Branch) R7 00483NCE Church of God in Hong Kong (S K Branch) R7 00482NCE Church of God in Hong Kong (San Po Kong Branch) R7 00481NCE Church of God in Hong Kong (Sheung Shui Branch) R7 00480NCE Church of God in Hong Kong (Sham Shui Po Branch) R7 00479NCE Church of God in Hong Kong (Aberdeen Branch) R7 00478NCE Church of God in Hong Kong (Quarry Bay Branch) R7 00501NCE Church of God in Hong Kong (Kwun Tong Branch) R7 00575NCE Customs and Excise Daniel Christian Fellowship R7 00590NCE Ruttonjee Hospital Chaplaincy Committee R7 00572NCE Oriental Christian Hin Oi Church R7
00840NCE Olive Tree Ministries R7 00628NCE Christian Disciples Church R7 00764NCE R7 00760NCE Tuen Mun Good Partners Youth Service Association R7 (Christianity) (Lam Tei Branch)
00610NCE Christ's Spirit Christian Church R7 00896NCE Bible Study Fellowship R7 00932NCE Hong Kong Theological Education Association R7 00948NCE March for Jesus Hong Kong R7 00969NCE All Nations Worship and Praise Ministries Hong Kong R7 01073NCE Reach out R7 00644NCE Full Gospel Business Men's Fellowship R7 International (Asia)
01358NCE Tuen Mun Evangelistic Chusade R7 01405NCE Hong Kong Association for the Betterment of Pentecostal R7 Ministry
01471NCE Hong Kong Christadelphian Ecclesia R7 01638NCE Fairview Park International Christian Church R7 01693NCE Christian Revival Crusade R7 01730NCE Tsan Yuk Chaplaincy Committee R7 01736NCE St Philip's Society-Cheung Chau Christian Centre R7 01836NCE Gideons International (Tai Po Camp) R7 01837NCE Gideons International (New Territories Camp) R7 01838NCE Gideons lnternational Kowloon Camp R7 01926NCE Megabrain Association R7 02000NCE Faculty and Staff Fellowship of Hong Kong R7 Baptist University
02314NCE Hong Kong Central Church R7 02306NCE Conservation Baptist Jubilee Church R7 02395NCE Youth of Christ R7
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4625
Reg. No. Name of Societies Nature
02488NCE New Territories Women's Aglow R7 04201EXS Hong Kong Shiah Association R7
MOTIONS
PHARMACY AND POISONS ORDINANCE
THE SECRETARY FOR HEALTH AND WELFARE moved the following motion:
"That the following Regulations, made by the Pharmacy and Poisons Board on 10 May 1995, be approved -
(a) the Pharmacy and Poisons (Amendment) Regulation 1995; and
(b) the Poisons List (Amendment) Regulation 1995."
She said: Mr President, I move the motion standing in my name in the Order Paper.
The Pharmacy and Poisons Ordinance and its subsidiary legislation regulate, inter alia, the registration of pharmaceutical products.
The amendment Regulations seek, inter alia, to revise penalties provided for under the Pharmacy and Poisons Regulations, which include penalties for offences related to illegal sales of drugs. They also seek to amend the classification of certain drugs and to add new drugs to facilitate up-to-date controls.
Currently, the maximum penalties stipulated in the Pharmacy and Poisons Regulations are lighter for a first or second offence than for a third or subsequent offence.
The penalties for a first or second offence are a fine of $2,500 and $5,000 respectively. Those for a third or subsequent offence are a fine of $10,000 and imprisonment for 12 months. This is still lower than the maximum penalty provided in the Ordinance of a fine of $30,000 and imprisonment for 12 months.
If approved, the amendment Regulations will abolish the different classifications for first, second and third offences so that, once convicted, a person will be liable to a much higher penalty than before even if he is a first-time or second-time offender.
4626 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
The penalty levels prescribed in the Regulations have been in force since 1978 and were last revised in 1987. They no longer reflect the severity of the offences and we therefore consider it necessary to increase them.
The amendment Regulations, therefore, also seek to raise the maximum penalties provided for in the Regulations from a fine of $10,000 and imprisonment for 12 months to the current maximum penalties stipulated in the Ordinance, which are a fine of $30,000 and imprisonment for 12 months. We do so by equating automatically the penalties prescribed in the Regulations to the maximum levels capped by the Ordinance and we hope that by doing so, the amendment Regulations will provide a much greater deterrent effect in combating problems such as illegal sales of drugs.
Separately, we are proposing in the Administration of Justice (Miscellaneous Provisions) (No.2) Bill 1995 introduced into this Council on 10 May that the maximum penalty levels in the Ordinance should be further raised to a maximum fine of $100,000 and imprisonment for two years. If enacted, the Bill will further increase the penalty levels for offences related to illegal sales of drugs, as provided in the Regulations.
Currently, controls over cough medicines containing ingredients such as codeine differ in stringency according to the concentration of codeine, and so on which they contain. The amendment Regulations, if effected, will tighten controls over cough medicines with lower concentrations of codeine, and so on, so that cough medicines, irrespective of the percentage of codeine and so on they contain, will need to have their sales supervised by registered pharmacists, apart from having to be sold only by certain sellers of poisons. By doing so, we hope to minimize the abuse of cough medicines.
The Pharmacy and Poisons Board, the statutory body set up under the Ordinance, has been consulted and supports the amendment Regulations.
With these remarks, I move the motion.
Question on the motion proposed, put and agreed to.
EMPLOYMENT ORDINANCE
THE SECRETARY FOR EDUCATION AND MANPOWER moved the following motion:
"That the Employment Ordinance be amended in sections 31G(1) and (2), 31V(1) and (1A) and 67A by repealing "$15,000" wherever it appears and substituting "$22,500"."
She said: Mr. President, I move the motion standing in my name in the Order Paper.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4627
The purpose of this resolution is to revise the existing wage limit for the purpose of calculating severance payment and long service payment under the Employment Ordinance.
When the Employment Ordinance was first enacted in 1968, it applied to all manual employees regardless of wage levels, and to those non-manual employees who earned not more than $1,500 a month. The wage ceiling for non-manual employees was then reviewed and revised regularly to take account of wage movements. It was raised to $11,500 in 1987.
In June 1990, this Council agreed to remove the wage ceiling so that all manual and non-manual employees, irrespective of their wages, could be covered under the Ordinance. To limit the employers' liabilities, a wage limit of $15,000 a month was specified for the purpose of calculating the severance payment and long service payment. This wage limit was set at $15,000 at that time, having regard to the fact that employees with a monthly wage in excess of $15,000 were usually and adequately protected by contracts of employment which provided for retirement benefits, as well as the wage movements since the limit was first revised in 1987.
After more than four years, the wage limit of $15,000 is now due for revision. Having regard to the wage movement over the past few years, we propose that the wage limit for the purpose of calculating severance payment and long service payment under the Employment Ordinance be increased to $22,500 per month. The Labour Advisory Board has been consulted and has given unanimous support to this proposal. The Board has also agreed that the wage limit should be reviewed once every two years in future.
Mr President, I beg to move.
Question on the motion proposed, put and agreed to.
BILLS
First Reading of Bills
SECURITIES (CLEARING HOUSES) (AMENDMENT)BILL 1995 SECURITIES (AMENDMENT) BILL 1995
Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41 (3).
4628 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 Second Reading of Bills
SECURITIES (CLEARING HOUSES) (AMENDMENT) BILL 1995
THE SECRETARY FOR FINANCIAL SERVICES moved the Second Reading of: "A Bill to amend the Securities (Clearing Houses) Ordinance."
She said: Mr President, I move the Second Reading of the Securities (Clearing Houses) (Amendment) Bill 1995.
The main purpose of the Bill is to seek disapplication of certain aspects of insolvency or bankruptcy laws in respect of futures transactions conducted at the Hong Kong Futures Exchange Limited in order to lessen the potential for a chain reaction of financial market defaults. The provisions being sought are already available to securities transactions conducted at the Stock Exchange of Hong Kong Limited under the Securities (Clearing Houses) Ordinance.
When the Ordinance was enacted in July 1992, it was decided to limit the ambit of the Ordinance to securities transactions initially and to defer application of the Ordinance to futures transactions because trading in futures contracts was not very active at that time.
Since the enactment of the Ordinance, transactions conducted at the Futures Exchange have increased significantly. In view of this, it is considered necessary that futures transactions be also brought under the Ordinance. The objective is to minimize the systemic risks which could arise from defaults by individual members of the Futures Exchange. Specifically, the Bill seeks to enable the clearing house of the Futures Exchange to isolate any default and complete settlement with non-defaulters, a process which otherwise might be frozen for an extended period under insolvency or bankruptcy laws and would potentially cause the counterparties of the defaulter themselves to default.
I would like to mention that since the 1987 market crash, there have been no significant default cases involving members of the Futures Exchange. The few cases which did occur were of a minor nature and related mostly to technical errors. The present proposals are made as a result of the continuing effort of the Administration and the regulators to enhance the risk management systems in our securities and futures markets to keep pace with market developments.
Thank you, Mr President.
Bill referred to the House Committee pursuant to Standing Order 42(3A).
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4629 SECURITIES (AMENDMENT) BILL 1995
THE SECRETARY FOR FINANCIAL SERVICES moved the Second Reading of: "A Bill to amend the Securities Ordinance."
She said: Mr President, I move the Second Reading of the Securities (Amendment) Bill 1995.
The objective of the Bill is to strengthen further the risk management systems in our securities market. Specifically, the Bill seeks to empower the Securities and Futures Commission to make rules to facilitate tracking of speculative short selling of securities and to deter market manipulation. It also seeks to enable the Commission to prescribe, by rules, position limits and other conditions in relation to trading of stock options.
Short selling of certain designated stocks at the Stock Exchange of Hong Kong Limited is permitted subject to compliance with section 80 of the Securities Ordinance and relevant regulations of the Stock Exchange. In practice, under section 80 of the Securities Ordinance, a person needs to have established stock borrowing arrangements before he is able to sell short. Under the relevant Stock Exchange regulations, a short selling Stock Exchange member has to register as such, and to comply with certain reporting requirements. Such requirements are to help the regulators identify and track sales of borrowed stocks, and identify speculative trading.
It has come to light that certain investors who are not members of the Stock Exchange, hence not bound by its regulations, have borrowed stocks for selling through the Stock Exchange without communicating such borrowing to the selling Stock Exchange member. That is to say, their right to vest in the purchasers the securities they have contracted to sell have not been clearly identified. Such practices negate the effectiveness of the existing mechanism for identifying and tracking sales of borrowed stock.
The proposed amendment to section 146 of the Securities Ordinance will enable the Commission to make rules to rectify the situation. The rules will complement the Stock Exchange regulations on short selling.
Separately, in connection with the trading in stock options which will commence in August this year, the Bill seeks to enable the Commission to prescribe, by rules, the position limits and other conditions including reporting requirements in relation to any person's activities in the stock options market. Such measures, as part of the risk management systems, are considered
4630 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
necessary for deterring market manipulation and providing better market surveillance information.
Thank you, Mr President.
Bill referred to the House Committee pursuant to Standing Order 42(3A).
MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1995
Resumption of debate on Second Reading which was moved on 25 January 1995 Question on Second Reading proposed.
MRS MIRIAM LAU: Mr President, as Mr Peter WONG, Chairman of the Bills Committee to study this Bill and the Employees' Compensation (Amendment) Bill 1995, is out of town, I rise to speak on both Bills.
The background to the proposals in the two Bills has been explained by the Secretary for Financial Services when he introduced them into this Council on 25 January 1995.
I wish to confine myself to highlighting the major areas of concern in the course of the Bills Committee's deliberations.
The main proposal of this Bill is to prescribe a minimum amount of insurance coverage of $100 million per event in respect of a motorist's liabilities for motor vehicle third party bodily injuries, in substitution for the existing requirement of unlimited insurance cover.
The Administration had explained to the Bills Committee that this amount has been proposed, having regard to the fact that the largest claim for motor vehicle third party bodily injuries insurance has so far not exceeded $15 million. In the event that the liabilities exceed $100 million, any excess above the limit would be payable out of the assets of the issured. If any excess liabilities remain unsettled thereafter, the injured party may resort to the Motor Insurers' Bureau Fund. The Administration has confirmed that the Motor Insurers' Bureau agrees to extend its Fund to include compensating traffic accident victims in cases where the liabilities exceed the $100 million limit and the motorist's assets are insufficient to pay off the claims. On the Administration's assurance, Members consider the proposed amount reasonable.
In the case of the Employees' Compensation (Amendment) Bill 1995, the Administration seeks to require an employer to take out a minimum insurance
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4631
cover of $100 million per event in respect of its liabilities for employees' compensation. Currently, the amount of insurance cover is unlimited.
The Bills Committee is deeply concerned about the proposed minimum cover for employees' compensation insurance. Under the principal Ordinance, death arising out of employment would attract a payment of $1.26 million while compensation in respect of a total loss of working capacity is $1.44 million; and there is no limit as to the amount of compensation under common law. The Bills Committee feels strongly that the proposed amount of $100 million per event would fall short of providing reasonable compensation to employees. Neither would it adequately cover the liabilities of an employer in the case of a disastrous accident involving many workers. At the Committee's suggestion, the Administration consulted the insurance industry and has now proposed that the minimum statutory insurance cover for an employer with not more than 200 employees shall be $100 million whereas such insurance cover for an employer with over 200 employees shall be $200 million. This is accepted by the Committee. An amendment to clause 9 of the Bill to this effect will be moved by the Secretary.
On the question of each employer being required to take out insurance for its employees to ensure that maximum protection is provided, the insurance industry, the construction industry and group companies are concerned that the requirement would have great impact on the availability of insurance to group companies and principal contractors in the construction industry, as insurers would not be willing to provide multiple limits of insurance covers for basically the same group of companies. It would also have great cost implications on the insured.
After consulting the various parties concerned, the Administration has suggested that principal contractors be permitted to take out a blanket insurance policy with a single limit to cover their own legal liabilities as well as those of their sub-contractors. The limit would be set at $200 million per event irrespective of the number of employees or sites involved in any construction work undertaken by a principal contractor. Similar blanket policy arrangement is also made for group companies. Should a claim be made against any of the subsidary companies included in a group blanket policy and where such claim remains unsettled, the holding company would be liable to meet such claims. In this way, the interest of injured employees would be better protected.
The Committee accepts the proposals. Relevant amendments will be made to the Bill by the Secretary later today.
With these remarks, Mr President, and subject to the agreed Committee stage amendments to be made, I commend the two Bills to this Council.
4632 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
SECRETARY FOR FINANCIAL SERVICES: Mr President, I would like to thank the Bills Committee under the chairmanship of the Honourable Peter WONG for its careful consideration of the Motor Vehicles Insurance (Third Party Risks) (Amendment) Bill 1995 and the Employees' Compensation (Amendment) Bill 1995. I would also like to express my appreciation to the professional and trade organizations for their valuable comments. Amendments to the Employees' Compensation (Amendment) Bill 1995 to be moved at the Committee stage are the product of continuing discussion between the Administration and the insurance industry and the professionals over the past few months.
In respect of third party insurance cover for motor vehicles, the Bills Committee, while considering the proposed limit of $100 million for any one event generally adequate, is concerned that there may be occasions with liabilities exceeding $100 million and the motorist's assets falling short of the excess liabilities. To address this concern, the Motor Insurers' Bureau has agreed to extend its responsibility to settle any amount which exceeds the prescribed limit of $100 million and which the insured is unable to pay. An undertaking between the Bureau and the Government to this effect has been arranged for signature at the end of this month.
Turning to employees' compensation, I wish to stress that it is the Administration's policy intention to give maximum protection to employees and to provide sufficient insurance cover to employers. In proposing a statutory minimum of $100 million per event, the Administration has taken into consideration the fact that the largest pay out for employees' compensation in any one event so far has been $30 million. However, to address the deep concern expressed by the Bills Committee that the proposed amount may prove inadequate to cover accidents involving a large number of victims, the Administration has, after consultation with the insurance industry, agreed to amend the Bill to require employers employing over 200 employees to obtain a minimum cover of $200 million per event. For employers employing not more than 200 employees, the minimum amount will be $100 million as originally proposed.
The multiple tiers of sub-contractorship in the construction industry and the fact that some sub-contractors and their employees may only be working on a very short-term basis on a particular site, have made it very difficult to ensure that employees of all the sub-contractors will be protected by some form of insurance cover. In view of this problem, Hong Kong insurers have suggested that principal contractors be permitted to take out blanket insurance cover for their own liabilities as well as those of their sub-contractors. After extensive consultation with the Hong Kong Construction Association and the insurance industry, the Administration has agreed that a principal contractor may take out a blanket cover of $200 million per event irrespective of the number of employees or the number of sites on which construction work is undertaken by the principal contractor.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4633
The insurance industry and a number of companies have requested that group companies be allowed to take out a blanket policy with a single limit, similar to the arrangement proposed for principal contractors in the construction industry. These companies as well as the insurance industry envisage considerable difficulties in arranging a separate policy for each company in the group, such as increased administrative work and additional costs to employers. Having considered the case very carefully, the Administration has agreed to allow a blanket policy for group companies. The minimum cover will be $200 million per event irrespective of the number of employees employed by the holding company and its subsidiaries. To safeguard better the interests of injured employees, the holding company which is insured under the same blanket policy will be held responsible for the liability of any of its subsidiaries should the latter's assets be insufficient to meet any claim in excess of the insured limit.
I wish to add that the rights of an injured employee to claim compensation will not be prejudiced by the statutory minimum insurance cover. Liabilities in excess of the insurance cover will be paid out of the assets of the insured (and its holding company, if appropriate). If the insured is unable to meet the claim, the injured will be compensated by the compensation fund maintained by the Employees' Compensation Assistance Fund Board.
Mr President, the Motor Vehicles Insurance (Third Party Risks) (Amendment) Bill 1995 and the Employees' Compensation (Amendment) Bill 1995 are the result of concerted efforts of the Financial Services Branch, the Transport Branch, the Works Branch and the Education and Manpower Branch. I therefore speak also for the Secretary for Transport, the Secretary for Works and the Secretary for Education and Manpower in commending these Bills to Members.
Thank you, Mr President.
Question on the Second Reading of the Bill put and agreed to.
Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
4634 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 EMPLOYEES'COMPENSATION (AMENDMENT) BILL 1995
Resumption of debate on Second Reading which was moved on 25 January 1995 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
Committee Stage of Bills
Council went into Committee.
MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1995
Clauses 1 to 6 were agreed to.
EMPLOYEES' COMPENSATION (AMENDMENT) BILL 1995
Clauses 2, 6, 7 and 8 were agreed to.
Clauses 1, 3, 4, 5 and 9
SECRETARY FOR FINANCIAL SERVICES: Mr Chairman, I move that the clauses specified be amended as set out in the paper circulated to Members. The main purpose of the amendments is to specify the minimum amount of insurance cover for different employment situations to be purchased by employers in respect of their liabilities under the Employees' Compensation Ordinance. There are also other minor technical and drafting amendments.
To avoid any misinterpretation of the term "construction work", a definition of construction work is added to section 38, through clause 3. The meaning of "structure" and "works" referred to in the definition of construction work is specified in the proposed Fifth Schedule, through clause 9.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4635
Definitions of "company", "holding company", "group of companies" and "subsidiary" are also added to section 38, through clause 3.
Proposed section 40(1) is amended, through clause 4, to clarify that the minimum amount of insurance cover to be purchased by an employer in respect of his liabilities under the Employees' Compensation Ordinance and independently of that Ordinance, shall not be less than the amount specified in the proposed Fourth Schedule. Correspondingly, the Fourth Schedule is amended, through clause 9. Instead of specifying therein a minimum insurance for all employers, the proposed minimum is $100 million per event in the case of employers employing not more than 200 employees, and $200 million per event if the number of employees exceeds 200. This amendment is intended to address Members' concern that reasonable and adequate compensation should be provided to employees in case of an accident involving a large number of victims.
Proposed section 40(1AA) is added, through clause 4(2), to provide that a principal contractor in the construction industry may take out a blanket policy of insurance for an amount not less than that specified in the Fourth Schedule, that is, $200 million per event, in respect of his liability and those of his sub-contractors under the Ordinance and independently of the Ordinance. This blanket policy will suit the complex circumstances of construction sites where vertical and lateral cross-liabilities may arise. The proposed minimum insurance is specified in the Fourth Schedule in clause 9.
Proposed section 40(1AB) is added, through clause 4(2), to provide that a group of companies may take out a blanket policy of insurance for an amount not less than that specified in the Fourth Schedule, that is, $200 million per event, in respect of the liabilities of the companies, bodies corporate and corporations in the group under the Ordinance or independently of the Ordinance. This proposed minimum is specified in the Fourth Schedule in clause 9.
Proposed section 40(1C) is added, through clause 4(2), to clarify that the minimum amount of insurance cover each employer is required to take out will be ascertained by reference to the number of employees in relation to whom the policy is in force and in accordance with the provisions of the Fourth Schedule. For principal contractors in the construction industry and group companies, the minimum amount of insurance to be taken out will be irrespective of the number of employees and in the case of principal contractors in the construction industry, the policy is also irrespective of the number of sites on which construction work is undertaken by the principal contractors.
Proposed section 40(1C) in clause 4(2) also clarifies that the amount of insurance required for policies may be inclusive of interest, costs and expenses indemnified under the policy and other costs and expenses incurred by the employer and recoverable from the insurer under the policy. If a principal contractor has taken out a blanket policy of insurance covering his liability and
4636 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
those of his sub-contractors, the principal contractor and the sub-contractors insured shall be regarded as having complied with the compulsory insurance requirements. Similarly, if companies in a group have taken out a blanket policy of insurance covering the liabilities of the companies, bodies corporate and corporations in the group, all those in the group insured shall be regarded as having complied with such requirements.
Section 42 is amended, through clause 5, to clarify that an insurer is only liable for the amount of the liability of the employer not exceeding the available amount covered by the policy of insurance issued, notwithstanding the obligation imposed upon the employer by the Ordinance to insure for a higher amount.
Clause 9 amends the Fourth Schedule to specify the minimum insurance cover to be purchased by employers in different employment situations. It also adds a new Fifth Schedule to explain the meaning of "structure" and "works" referred to in the definition of "construction work".
Mr Chairman, I beg to move.
Proposed amendments
Clause 1
That clause 1(1) be amended, by adding "(No.2)" after "(Amendment)".
Clause 3
That clause 3 be amended, by adding —
""company" has the meaning assigned to it by section 2 of the Companies Ordinance (Cap.32);
"construction work" means -
(a) the construction, erection, installation, reconstruction, repair, maintenance (including redecoration and external cleaning),
renewal, removal, alteration, improvement, dismantling, or
demolition of any structure or works specified in the Fifth
Schedule;
(b) any work involved in preparing for any operation referred to in paragraph (a), including the laying of foundations and the
excavation of earth and rock prior to the laying of foundations;
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4637
(c) the use of machinery, plant, tools, gear, and materials in connection with any operation referred to in paragraph (a) or
(b);
"holding company", "group of companies" and "subsidiary" mean, respectively, holding company, group of companies and subsidiary within the meaning of section 2 of the Companies Ordinance (Cap.32);".
Clause 4
That clause 4 be amended, by deleting subclause (1) and substituting — "(1) Section 40(1) is amended -
(a) by repealing "No" and substituting "Subject to subsections (1AA) and (1AB), no";
(b) by repealing everything after "issued by an insurer" and substituting -
"for an amount not less than the applicable amount specified in
the Fourth Schedule in respect of the liability of the employer.".
That clause 4(2) be amended —
(a) by adding before the proposed subsection (1B) -
"(1AA) A principal contractor who has undertaken to
perform any construction work may, in compliance with subsection (1), take out a policy of insurance issued by an insurer for an amount not less than the amount specified in the Fourth Schedule in relation to a principal contractor in respect of the liability of the principal contractor and the liability of his sub-contractor.
(1AB) A group of companies may, in compliance with
subsection (1), take out a policy of insurance issued by an insurer for an amount not less than the amount specified in the Fourth Schedule in relation to a group of companies in respect of the liabilities of the companies, bodiescorporate and corporations in the group specified in the policy.".
4638 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
(b) in the proposed subsection (1B), by deleting "subsection (1)" and substituting "this section, section 44B".
(c) by deleting the proposed subsection (1 C) and substituting -
"(1C) For the avoidance of doubt, it is declared that -
(a) the amount required by subsection (1) is
ascertained by reference to the number of
employees in relation to whom the policy is in
force and in accordance with the Fourth
Schedule;
(b) the amount that may be taken out under
subsection (1AA) or (1AB) is irrespective of the
number of employees in relation to whom the
policy is in force and in the case of subsection
(1AA), is also irrespective of the number of
sites on which construction work undertaken by
a principal contractor is performed;
(c) the amount required by subsection (1), (1AA) or
(1AB) may be inclusive of interest, costs and
expenses indemnified under the policy and
other costs and expenses incurred by the
employer (including a principal contractor, a
sub-contractor, a holding company or a
subsidiary) and recoverable from the insurer
under the policy;
(d) where a principal contractor has taken out a
policy of insurance under subsection (1AA), the
principal contractor and a sub-contractor
insured under the policy shall be regarded as
having complied with subsection (1);
(e) where a group of companies has taken out a
policy of insurance under subsection (1AB), all
the companies, bodies corporate and
corporations in the group insured under the
policy shall be regarded as having complied
with subsection (1).
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4639
(1D) The reference in this section to the liability of a person
is a reference to the liability of the person under this Ordinance and independently of this Ordinance for any injury to his employee by accident arising out of and in the course of the employee's employment.".
Clause 5
That clause 5 be amended —
(a) by renumbering the clause as clause 5(1).
(b) by adding -
"(2) Section 42 is amended by adding -
"(1A) For the avoidance of doubt, it is declared that an insurer
is liable, in a proceeding under section 36LA or 44, for the amount of the liability of the employer not exceeding the available amount covered by the policy of insurance issued for the purposes of this Part notwithstanding the obligation imposed upon the employer by section 40 to insure for an amount in excess of the amount insured.".".
Clause 9
That clause 9 be amended, by deleting the clause and substituting —
"9. Schedules added
The following are added -
"FOURTH SCHEDULE [ss.40 & 48A]
MINIMUM INSURANCE COVER FOR
THE PURPOSE OF SECTION 40
1. For the purpose of section 40(1)
Where the number of
employees in relation to whom the policy is in force
Applicable amount
does not exceed 200 $100 million per event
4640 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
exceeds 200 $200 million
per event
2. For the purpose of section 40(1AA)
Where a principal $200 million
contractor takes per event
out a policy of insurance
3. For the purpose of section 40(1AB)
Where a group of $200 million
companies takes per event
out a policy of insurance
FIFTH SCHEDULE [s.38]
SPECIFIED STRUCTURES AND WORKS
1. Any building, edifice, wall, fence, or chimney, whether constructed wholly or partly above or below ground level.
2. Any road, motorway, railway, tramway, cableway, aerial ropeway or canal.
3. Any harbour works, dock, pier, sea defence work, or lighthouse. 4. Any aqueduct, viaduct, bridge, or tunnel.
5. Any sewer, sewage disposal works, or filter bed.
6. Any airport or works connected with air navigation.
7. Any dam, reservoir, well, pipeline, culvert, shaft, or reclamation. 8. Any drainage, irrigation, or river control work.
9. Any water, electrical, gas, telephonic, telegraphic, radio, or television installation or works, or any other works designed for the manufacturing or transmission of power or the transmission or reception of radio or sound waves.
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4641
10. Any structure designed for the support of machinery, plant, or power transmission lines.".".
Question on the amendments proposed, put and agreed to.
Question on clauses 1, 3, 4, 5 and 9, as amended, proposed, put and agreed to.
New clause 4A Mandatory information in
policy
New clause 4B Notice of insurance
New clause 7A Section added
Heading before Consequential Amendments
New clause 10 Employees Compensation
Assistance Ordinance
New clause 10 Interpretation
Clauses read the First time and ordered to be set down for Second Reading pursuant to Standing Order 46(6).
SECRETARY FOR FINANCIAL SERVICES: Mr Chairman, I move that new clauses 4A, 4B, 7A, heading before the new clause 10 and new clause 10 as set out in the paper circulated to Members be read the Second time.
Clause 4A amends the item number (f) to (g) in section 40A to require an insurer to include information on the amount of liabilities insured in a policy of insurance. Clause 4B amends section 41 to require the amount of liability insured under a policy to be shown in a notice of insurance to be put up in the workplace. An employer who provides false or misleading information in the notice commits an offence and is liable to a fine of $50,000.
Proposed section 44B is added, through new clause 7A, to provide that where a blanket insurance policy has been taken out by group companies and where the insurance limit has been exhausted, the subsidiary company concerned shall be liable for any outstanding claim in respect of any injury to an employee. If the employee is unable to recover payment of compensation from the subsidiary company concerned, the holding company shall be liable to pay the amount to the employee.
To assist an employee of a subsidiary company to identify the holding company or companies for this purpose, the employee will be entitled to put a written request to the subsidiary company for the names and addresses of all its
4642 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
holding companies also insured under the same insurance policy. The subsidiary company concerned commits an offence if it fails to comply with the request within seven days after the date of issue of the request, and is liable to a fine of $10,000.
A consequential amendment is made, through new clause 10, to include in the definition of "employer" in section 2 of the Employees Compensation Assistance Ordinance, a holding company which is liable to pay an amount of compensation or damages to an employee of its subsidiary.
Question on the Second Reading of the clauses proposed, put and agreed to. Clauses read the Second time.
SECRETARY FOR FINANCIAL SERVICES: Mr Chairman, I move that new clauses 4A, 4B, 7A, Heading before new clause 10 and new clause 10 be added to the Bill.
Proposed additions
New clauses 4A and 4B
That the Bill be amended, by adding —
"4A. Mandatory information in policy
Section 40A is amended by repealing "(f)" and substituting "(g)".
4B. Notice of insurance
(1) Section 41(1) is amended -
(a) in paragraph (e), by repealing "and" at the end;
(b) in paragraph (f), by repealing the full stop and substituting "; and";
(c) by adding -
"(g) the amount of the liability insured under the
policy.".
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4643 (2) Section 41 is amended by adding -
"(4) Any employer who without reasonable excuse provides any false or misleading information in a notice under subsection (1)
commits an offence and is liable to a fine at level 5.".".
New clause 7A
That the Bill be amended, by adding —
"7A. Section added
The following is added -
"44B. Holding company responsible for
liability of subsidiary in
certain cases
(1) Where -
(a) in relation to an employee there is in force a
policy of insurance taken out by a group of
companies pursuant to section 40(1AB);
(b) the employee's employer, being a subsidiary
of a holding company which is also insured
under the policy, becomes liable to pay any
amount of compensation or damages in
respect of an injury to the employee by
accident arising out of and in the course of
his employment; and
(c) the employee is unable to recover payment of
the amount or any part thereof from the
employer or from the insurer, the holding
company is liable to pay the amount or part
thereof to the employee.
(2) An employee employed by a subsidiary which is
insured under a policy of insurance taken out by a group of companies pursuant to section 40(1AB) may issue a written request to the subsidiary to supply to the employee the names and addresses of all its holding companies which are also insured under the policy.
4644 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
(3) A subsidiary shall within 7 days after the date of issue
of a written request under subsection (2) -
(a) supply to the employee the names and addresses
of all its holding companies which are also
insured under the policy; and
(b) deliver a copy of the written request to the
holding companies.
(4) A subsidiary which without reasonable excuse fails to
comply with subsection (3) commits an offence and is liable to a fine at level 3.".
New clause 10
That the Bill be amended, by adding —
"Consequential Amendments
Employees Compensation Assistance Ordinance
10. Interpretation
Section 2 of the Employees Compensation Assistance Ordinance (Cap.365) is amended -
(a) in the definition of "employer" by adding after "(Cap.282)" -
", and includes a holding company (within the meaning
of Part IV of that Ordinance) which is liable to pay an
amount of compensation or damages to an employee of
its subsidiary (within the meaning of that Part) under
section 44B of that Ordinance";
(b) in the Chinese text, in the definition of "僱主" by adding after " 的僱主" -
"，並包括根據該條例第 44B 條有法律責任支付某㆒
數額的補償或損害賠償予其附屬公司（該條例第 IV
部所指者）的僱員的控股公司（該部所指者）".".
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4645
Question on the additions of the new clauses 4A, 4B, 7A, Heading before new clause 10 and new clause 10 proposed, put and agreed to.
Council then resumed.
Third Reading of Bills
THE ATTORNEY GENERAL reported that the
MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) (AMENDMENT) BILL 1995
had passed through Committee without amendment and the
EMPLOYEES' COMPENSATION (AMENDMENT) BILL 1995
had passed through Committee with amendments. He moved the Third Reading of the Bills. Question on the Third Reading of the Bills proposed, put and agreed to. Bills read the Third time and passed.
PRIVATE MEMBER'S MOTIONS
INTERPRETATION AND GENERAL CLAUSES ORDINANCE
MR RONALD ARCULLI moved the following motion:
"That the Waste Disposal (Charges for Disposal of Waste) Regulation, published as Legal Notice No.161 of 1995 and laid on the table of the Legislative Council on 17 May 1995, be amended -
(1) in section 2 -
(a) in subsections (1) and (5), by repealing "the Schedule and substituting "Schedule 1";
4646 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
(b) by adding -
"(6) Where waste is carried to land used for tipping
by the Civil Engineering Department or authorized by the
Director for disposal by means of a vehicle on which a
classifying label issued under subsection (7) is displayed in
such manner as may be specified by the Director, no charge
shall be payable under subsection (1), but the driver of the
vehicle shall pay the appropriate charge prescribed in Schedule
2.
(7) For the purpose of subsection (6), the Director
may issue classifying labels by reference to the permitted gross
vehicle weight of vehicles as described in Schedule 2.
(8) A fee of $200 is payable to the Director for a
classifying label issued under subsection (7).";
(2) in section 4, by adding -
"(3) If the permitted gross vehicle weight of a vehicle
displaying a classifying label for the purpose of section 2(6) exceeds the maximum permitted gross vehicle weight covered by the category of the classifying label displayed, the driver of the vehicle commits an offence and is liable to a fine at level 3 and to imprisonment for 6 months.";
(3) by renumbering the Schedule as Schedule 1;
(4) by adding -
"SCHEDULE 2 [s.2]
CHARGES FOR DISPOSAL OF WASTE AT LAND USED
FOR TIPPING IN RESPECT OF WASTE CARRIED BY
A VEHICLE DISPLAYING A CLASSIFYING LABEL
Category of Permitted gross vehicle Charge for each classifying weight of vehicle vehicle load label of waste $
1 5.5 tonnes or less 86
2 More than 5.5 tonnes but 129
not more than 10 tonnes
HONG KONG LEGISLATIVE COUNCIL － 21 June 1995 4647
Category of Permitted gross vehicle Charge for each classifying weight of vehicle vehicle load label of waste $
3 More than 10 tonnes but 172
not more than 16 tonnes
4 More than 16 tonnes but 344
not more than 24 tonnes
5 More than 24 tonnes 688"."
MR RONALD ARCULLI: Mr President, I move the motion standing in my name in the Order Paper.
The Waste Disposal (Charges for Disposal of Waste) Regulation was tabled in this Council on 17 May 1995 to impose charges for disposal of waste at landfills. In spite of the consultations which had reportedly been made by the Administration with the waste collection industry, the industry raised strong objection to the Regulation when it was tabled. Representatives of the Hong Kong Kowloon and New Territories Grab-mounted Lorries Association were interviewed by the Duty Roster Members of the Legislative Council Members' Redress System on 23 May 1995. The Association objected to the charging arrangement on the basis of per tonne of waste to be disposed of as stipulated in the Regulation, and suggested that the charging arrangement should be on a per vehicle basis. The Association also suggested that the Administration should collect the charges from the waste producers direct. Similar objection and proposals were raised by the Hong Kong Dumper Truck Drivers Association.
A case conference was held on 29 May 1995 to discuss the objection and the proposals of the Association with the Administration. Members other than those who interviewed the representatives of the Association were invited to join the case conference. Representatives of the Hong Kong Construction Association (HKCA) were also invited to make a presentation of their views in the conference.
Following the third case conference held on 3 June 1995, Members concluded that in order to satisfy those waste collectors who prefer a charging arrangement on a per tonne basis as well as those who prefer an arrangement on a per vehicle basis, an alternative arrangement be inserted into the Regulation The alternative arrangement shall be in the form of a table as shown in Schedule 2 of the proposed amendment to the Regulation. The scale of fees in the table is converted from the estimated average weights of waste carried on vehicles of different sizes under the different categories of classifying labels as specified in the Schedule, at the rate of $43 per tonne of the waste to be disposed of. The rate of $43 per tonne is the rate proposed in the original Regulation for the charging arrangement on a per tonne basis. This new charging arrangement can
4648 HONG KONG LEGISLATIVE COUNCIL － 21 June 1995
be used by the waste collectors by applying for a classifying label from the Administration for their vehicles. Landfill charges would be levied on a per tonne basis in respect of vehicles without such labels.
Collectors and producers of construction waste generally welcome this additional choice of the charging arrangement, but are still not satisfied with the administrative arrangements for payment. The current proposal may result in the collectors having to bear the landfill charges initially and then pass them on to the waste producers. As of this moment discussions will continue with the objective of finding a method acceptable to all. On a related issue, the Administration has been forewarned of the necessity of having public dumps and sorting facilities where landfill waste and public dump waste can be separated so that valuable landfill space will no longer be used to dump unsuitable construction waste. The HKCA has been pressing the Administration to provide these facilities and it is crucial that they be provided before the waste disposal charging scheme is implemented. The Administration has assured the HKCA that public dumps and sorting facilities will be in place before the charging scheme is implemented. Nevertheless, Mr President, the alternative charging arrangement proposed in the motion satisfies both the construction waste collectors and the contractors in that it is in line with how the collectors currently charge the contractors. I hope that Members would support this motion.
Mr President, I beg to move.
Question on the motion proposed.
MR TAM YIU-CHUNG (in Cantonese): Mr President, as regards the issue about charges, nearly 100 private dumper truck drivers and truck owners drove their trucks to the Junk Bay landfill on the morning of 16 June where they staged a strike. They had asked me to act as an intermediary, and I did attend the press conference they held at 3 o'clock that afternoon. At the press conference, I recognized that there were three major reasons why they were unwilling to accept the charging arrangement currently proposed by the Government. They think that it will increase their workload and that they might be required to pay the upfront payment for the charges, which may not be reimbursed to them and so add to their burden. At the press conference, I too was surprised, because the ad hoc group responsible for this matter had in fact held a special meeting, and the Honourable Ronald ARCULLI is going to propose an amendment today. I had thought that the row was about the charging arrangement and that hopefully the original arrangement could be altered, that is, the charging arrangement be made on the basis of per vehicle instead of per tonne. I had thought that this was the apple of discord, which, in fact, is not the case. According to the two associations present on that day, they flatly rejected that they should be made to pay the upfront payment.
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Their strike lasted for 30 hours. I involved myself in the mediation endeavour. In the end, the Government took their point. But the Government pointed out that it would be technically impossible not to table the subsidiary legislation for the Council's discussion today. So the Government agreed that they would put the implementation process on hold even if this Council would pass the subsidiary legislation today. The Government would announce the coming into effect of the charging policy only after a solution is found through a tripartite meeting with the associations concerned and the waste producers.
From this incident, I find that during the process for our consultation we should garner more experience, and that we should examine why there should have been so many twists and turns along the line and even complications at the last moment. Furthermore, even if this Council passes this subsidiary legislation today, will there be a solution in the future for certain? Will the solution, if any, be accepted by the Government and the associations concerned? This is still an unknown factor.
To ameliorate and protect the environment is certainly everybody's responsibility, but the charging issue is a potentially controversial subject to the trades concerned. So I hope the Government will consult the parties concerned in a serious manner in order to work out a feasible solution. For this reason, I will abstain from voting on today's subsidiary legislation and on Mr ARCULLI's amendment, because the matter is still unsettled. Furthermore, since I was a witness to this incident, I might still need to discuss some of its aspects. Therefore, I have no wish of supporting the amendment for the time being.
REV FUNG CHI-WOOD (in Cantonese): Mr President, I am in support of the Honourable Ronald ARCULLI's motion.
Although either this motion or the Government's Regulation will be carried by this Council, the issue concerning the charges for disposal of waste at landfills is yet to be settled. Actually, the Government first started to discuss this issue with the industry two or three years ago. But up to this moment when the present Regulation is laid before this Council, they have yet to reach a consensus. The dumper truck drivers were strongly against the present proposed charging arrangement by the Government. One reason was that they had to pay the landfill charges upfront and be reimbursed later, which would hinder them from working effectively and many drivers might consequently lose their jobs. However, the Government paid no heed to these concerns but insisted on tabling this charging regulation to the Legislation Council, intending to carry out this charging arrangement that it considered feasible. Consequently, a big strike was launched, mainly by the two waste collectors associations, on 16 June which affected the operation of many landfills and refuse transfer stations. And some refuse is still being left uncollected.
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During the strike, the Government negotiated with the representatives of the associations. On 17 June, the Government promised to consult the people concerned in the industry and said that it would not put the charging arrangement into effect before obtaining the consent of the two waste collectors associations. I really hope that the Government can show its sincerity by discussing the charging arrangement for waste disposal at landfills with the people concerned again. Mr President, it is really disappointing that the charging arrangement has caused so much trouble. People who need to pay are willing to pay the charges levied by the Government. But it is a shame that the procedure as to how the charges are to be paid has given rise to so many problems.
Concerning the landfill issue, the Government introduced a measure in October 1993 to the effect that dumper trucks entering the landfills, if they carried more then 20% of inert material, mainly construction waste, would not be allowed to dump their loads in the landfills. Mr President, some lorry drivers also launched a strike at that time and the Government subsequently backed down which resulted in the measure being shelved indefinitely. Since then nobody has ever mentioned it again. This incident has left people wondering if the Government's policy does work as a precedent has been set. I hope that the Government will be practical and realistic and discuss with the people concerned to arrive at a workable arrangement in the future.
As for the charges for disposal of chemical waste, the Government had earlier suggested imposing a levy on the imported chemicals but later it changed the way of charging for chemical waste. Actually, the Government can also adopt a similar attitude and discuss with the people concerned to find a workable way.
Mr President, I hope that the Government will stick to the agreement it made with the two waste collectors associations on 16 June and negotiate for a feasible solution as soon as possible. We hope that the charging arrangement can be put into effect as scheduled as soon as possible. Even if this cannot be achieved, we still hope that they can work out a plan acceptable to all parties involved. We do not want to see these problems come up again.
MR FRED LI (in Cantonese): I am following up the case because an association of grab mounted lorries had petitioned the Legislative Council and a case conference was set up by this Council to deal with the matter. The conference was chaired by the Honourable Vincent CHENG with the Honourable Ronald ARCULLI and I as members. I have been following up the matter all the way.
Charging arrangements, based on the so-called "polluter pays principle", require that a rate of $43 per tonne of waste be paid on entry into a landfill. This amounts to half of the operating costs. Looking back, I have some strong feelings about the incident. On 16 June, truck drivers staged a strike and a blockade of some landfills. Finally the Administration was forced to sign a so-