XN000022-1996-11-06 — Page 21

We cannot afford to have Hong Kong become a haven for fugitives or to allow criminals to avoid justice and the rule of law by seeking refuge in other places. It is well recognised that if Hong Kong is to continue its success, to maintain its reputation as a law-abiding community, and to strengthen its status as an international commercial and financial centre, it is important that we should not allow any gap in the relations with our law enforcement partners on surrender of fugitive offenders after 30 June 1997. The Chinese side in the Joint Liaison Group have confirmed their agreement to this localisation of laws item at JLG XXXVII in September 1996. Our immediate task ahead is to ensure that this localised legislation can take effect as soon as possible and well before the handover. I therefore urge Members' urgent consideration and support for the Bill. The early enactment of the Bill would enhance the international community's confidence in the future of the rule of law in Hong Kong and our criminal justice system.

Thank you, Mr President.

End

Securities and Futures Commission Amendment Bill

Following is the speech by the Acting Secretary for Financial Services, Mrs Lessie Wei in moving the Second reading of the Securities and Futures Commission (Amendment) (No.2) Bill 1996 in the Legislative Council today (Wednesday):

Mr President,

I move the second reading of the Securities and Futures Commission (Amendment) (No.2) Bill 1996.

The Bill seeks to amend the Securities and Futures Commission Ordinance to provide more flexibility for specifying the levy on any transaction on the Stock Exchange of Hong Kong Limited and the Hong Kong Futures Exchange Limited.

Under section 52 of the Ordinance, the Governor-in-Council may specify different levy rates in respect of different classes of securities traded on the Stock Exchange, and different amounts in respect of different leviable transactions in futures contracts traded on the Futures Exchange. However, there is no provision for a fixed amount to be specified as the levy on the sale and purchase of securities. There is also no provision for a percentage of the consideration to be specified as the levy on the leviable transactions in futures contracts. These provisions are not sufficiently flexible, given the proliferation of products with entirely different characteristics and modes of operation in the market. Section 52 of the Ordinance therefore needs amending.