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HONG KONG URBAN COUNCIL
the case of food establishments. This lack of flexibility has resulted in the operating of unlicensed cinemas.
(5) As existing penalties for unlicensed cinemas have no deterrent effect, operators are indirectly encouraged to make use of grey areas and operate without licenses. We can look at several examples to see that the penalties have no deterrent effect. In one case of an applicant who first applied for a license in 1994, 13 prosecutions with 9 convictions were recorded with the fine ranging from a low $3000 to a high $7000 by single count. In other words, the daily fine was $100 at the low end and $200 at the high end. The nine convictions resulted in a total fine of $136,550. On average, the sum ranged from $9400 to $19,400. If we take the average per day (a total of 531 days), it only amounted to $257. One can say that the cinema could cover the fine by selling two more tickets a day. It is really not of any deterrent effect at all.
Even prosecutions are of no deterrent effect either. Coming back to the same case, there were 13 prosecutions in the past 4 years. Each prosecution took an average of 8 to 9 months to the handing down of a court ruling. In other words, although the court eventually made a ruling that the cinema was operating illegally, the operator just carried on doing business. If the Council does not decisively take action and tolerate unlicensed cinemas to operate, it is leniency to illegal operators but cruelty to the general public. Moreover, it is an encouragement to unlicensed cinemas.
In response to a request by the Urban Council, the Executive Council took a positive step in February this year in the form of a Public Entertainment Amendment Bill empowering the two municipal councils to apply for court orders for the closure of unlicensed cinemas. When the Bill was debated at the Legislative Council, cinema operators raised their objection. As far as we know, the matter is still being stalled. I feel that the situation of unlicensed cinemas in operation should not be allowed to exist. It is something irregular for consumers, cinema operators or even the licensing authority. There is no reason whatsoever to tolerate such an irregularity. It will be too late if we try to attach responsibility after an untoward incident and the loss of lives and properties. We should in no case allow grey areas to exist for unlicensed cinemas. I think there are only two options for the Council as follows:-
(1) Formally issue the licenses within the time frame for licensing procedures, or issue provisional licenses to applicants who meet basic requirements, especially fire protection requirements. Applicants should be required to complete all necessary procedures within the validity of the provisional licenses.
(2) The Council should enforce stringently the closure of cinemas without provisional or formal licenses. No grey area should exist. In order to enforce the legislation, relevant government departments should strengthen manpower for licensing, streamline procedures as well as enhance work efficiency.
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