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14
Second, Clause 6 of the Bill seeks to deter the creation of mortgages or charges not authorised by the Housing Authority by making them void and rendering offenders liable to prosecution. Paragraph 4 of the Schedule to the Ordinance permits a flat purchaser under the Home Ownership Scheme or the Private Sector Participation Scheme to mortgage or charge the land only on such terms as are authorised by the Director of Housing. It has come to our notice that some mortgages for these flats have been created without the Director of Housing's authorisation. Legal advice is that it would not be appropriate to take prosecution action on the basis of this Schedule. We therefore propose the addition of a new section to clarify the legal position and to make people who borrow on the basis of unauthorised mortgages or charges liable to prosecution.
Third, Clause 3 of the Bill expressly empowers the Housing Authority to employ its own staff, consultants and advisers. Section 4(2)(k) of the Ordinance provides the Housing Authority with the general power to do all such acts as are reasonably necessary for the performance of its duties. Legal advice is that although existing contracts of employment can be justified under this section, the Housing Authority should be given specific power to employ its own staff and advisory services. This will put the validity of any future contract of employment beyond doubt.
The fourth amendment, under Clause 5, enables the Director of Housing to delegate any of his functions to officers of a specified class or description. This removes the need for him to appoint long lists of public officers frequently under section 10 of the Ordinance.
Thank you, Mr President.
End/Wednesday, January 25, 1995
Employees' Compensation (Amendment) Bill 1995
Following is the speech by the Secretary for Financial Services, Mr Michael Cartland, in moving the second reading of the Employees' Compensation (Amendment) Bill 1995 in the Legislative Council today (Wednesday):
Mr President,
1995.
I move the second reading of the Employees' Compensation (Amendment) Bill