XN000022-1996-05-01 — Page 28

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Second, superannuation schemes of tertiary institutions. Members will wish to know that all UGC funded institutions have registered their schemes under the Occupational Retirement Schemes Ordinance. Admittedly, three of the schemes, namely those of the University of Hong Kong, the Polytechnic University and the Chinese University of Hong Kong, are currently registered under an "insolvent" status these schemes have yet to reach the standards of solvency stipulated in the Ordinance. But the institutions concerned are taking positive measures to improve the longer term financial viability of their schemes. We are confident that these schemes should be able to achieve solvency before the legislative deadline, i.e. 15 October 1998.

Third, advance accounts for the care and maintenance of Vietnamese migrants. Following the meeting of the Public Accounts Committee in November 1995, the Office of the United Nations High Commissioner for Refugees has given us another repayment and has issued a letter reiterating its commitment to repaying Hong Kong the outstanding amount and stating that this commitment is not bound by any timeframe. We understand the latter expression to mean that 1997 is not a factor in the UNHCR commitment. We therefore remain of the view that the advances are recoverable. The Financial Secretary, in the light of these developments, has re- affirmed that the advance account arrangement should continue.

We, nevertheless, fully appreciate Members' concern about the significant amount of outstanding advances accumulated over the years. I wish to assure Members that we shall continue to liaise very closely with the High Commissioner with a view to securing full repayment as soon as possible.

On the definition of "recoverable advances" under Section 20 of the Public Finance Ordinance, having regard to a genuine need to cater for all possible circumstances where recoverable advances need to be made and the fact that so far, all advances other than for the care and maintenance of VMs, have been cleared in a timely fashion, we do not consider it necessary to fetter the Financial Secretary's authority under the Ordinance.

Fourth, Public Cargo Working Areas (PCWAs). Let me say at the outset that the Administration shares the PAC's view that the first-come-first-served berth allocation system no longer meets the needs of the trade. However, we find it hard to accept the PAC's remark that we lack knowledge of operation of the cargo handling trade. As the Director of Audit has pointed out, the Director of Marine has undertaken a number of management studies with a view to finding suitable measures to improve the management of the PCWAS. We have attempted various management modifications but unfortunately with only limited success. The PAC is right to demand that we should devise an open, fair and economically viable system that best meets the needs of the trade as early as possible. We believe we have now come up with the solutions and we will redouble our efforts to make them work,