OFFICIAL RECORD OF PROCEEDINGS
ミ猭Ы穦某筁祘タΑ魁
Wednesday, 6 March 1996
せるせら琍戳
The Council met at half-past Two o'clock
とだ穦某秨﹍
MEMBERS PRESENT
畊某
THE PRESIDENT
THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P.
畊独Щ祇某O.B.E., J.P.
THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P.
腜某C.B.E., J.P.
THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P.
㏄辩睶┥某O.B.E., J.P.
THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P.
琖皇某Q.C., J.P.
DR THE HONOURABLE DAVID LI KWOK-PO, O.B.E., LL.D. (CANTAB), J.P.
瓣腳某O.B.E., LL.D. (CANTAB), J.P.
THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P.
ぶ城某O.B.E., J.P.
THE HONOURABLE SZETO WAH
畕地某
THE HONOURABLE LAU WONG-FAT, O.B.E., J.P.
糂祇某O.B.E., J.P.
THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P.
︙┯ぱ某O.B.E., J.P.
THE HONOURABLE RONALD JOSEPH ARCULLI, O.B.E., J.P.
甃ㄎ瞶某O.B.E., J.P.
THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P.
糂胺祸某O.B.E., J.P.
DR THE HONOURABLE EDWARD LEONG CHE-HUNG, O.B.E., J.P.
辩醇翬某O.B.E., J.P.
THE HONOURABLE ALBERT CHAN WAI-YIP
朝岸穨某
THE HONOURABLE CHEUNG MAN-KWONG
眎ゅ某
THE HONOURABLE CHIM PUI-CHUNG
糕蚌┚某
THE HONOURABLE FREDERICK FUNG KIN-KEE
毒浪膀某
THE HONOURABLE MICHAEL HO MUN-KA
︙庇古某
DR THE HONOURABLE HUANG CHEN-YA, M.B.E.
独綺笽某M.B.E.
THE HONOURABLE EMILY LAU WAI-HING
糂紌某
THE HONOURABLE LEE WING-TAT
ッ笷某
THE HONOURABLE ERIC LI KA-CHEUNG, J.P.
產不某J.P.
THE HONOURABLE FRED LI WAH-MING
地某
THE HONOURABLE HENRY TANG YING-YEN, J.P.
璣某J.P.
THE HONOURABLE JAMES TO KUN-SUN
襖略ビ某
DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., F.Eng., J.P.
独篿某M.B.E., F.Eng., J.P.
DR THE HONOURABLE PHILIP WONG YU-HONG
独﹜グ某
DR THE HONOURABLE YEUNG SUM
法此某
THE HONOURABLE HOWARD YOUNG, J.P.
法У地某J.P.
THE HONOURABLE ZACHARY WONG WAI-YIN
独岸藉某
THE HONOURABLE CHRISTINE LOH KUNG-WAI
嘲糠某
THE HONOURABLE JAMES TIEN PEI-CHUN, O.B.E., J.P.
バ玊某O.B.E., J.P.
THE HONOURABLE LEE CHEUK-YAN
某
THE HONOURABLE CHAN KAM-LAM
朝挪狶某
THE HONOURABLE CHAN WING-CHAN
朝篴篱某
THE HONOURABLE CHAN YUEN-HAN
朝胞糭某
THE HONOURABLE ANDREW CHENG KAR-FOO
綠產碔某
THE HONOURABLE PAUL CHENG MING-FUN
綠癡某
DR THE HONOURABLE ANTHONY CHEUNG BING-LEUNG
眎▆某
THE HONOURABLE CHEUNG HON-CHUNG
眎簙┚某
THE HONOURABLE CHOY KAN-PUI, J.P.
讲蚌某J.P.
THE HONOURABLE DAVID CHU YU-LIN
Χギ棚某
THE HONOURABLE ALBERT HO CHUN-YAN
︙玊く某
THE HONOURABLE IP KWOK-HIM
腑瓣辆某
THE HONOURABLE LAU CHIN-SHEK
糂ホ某
THE HONOURABLE AMBROSE LAU HON-CHUEN, J.P.
糂簙煌某J.P.
DR THE HONOURABLE LAW CHEUNG-KWOK
霉不瓣某
THE HONOURABLE LAW CHI-KWONG
霉璓某
THE HONOURABLE LEE KAI-MING
币某
THE HONOURABLE LEUNG YIU-CHUNG
辩模┚某
THE HONOURABLE BRUCE LIU SING-LEE
郭Θ某
THE HONOURABLE LO SUK-CHING
霉睲某
THE HONOURABLE MOK YING-FAN
馋莱某
THE HONOURABLE MARGARET NG
艷祸某
THE HONOURABLE NGAN KAM-CHUEN
肅繟某
THE HONOURABLE TSANG KIN-SHING
纯胺Θ某
DR THE HONOURABLE JOHN TSE WING-LING
谅ッ闹某
THE HONOURABLE LAWRENCE YUM SIN-LING
ヴ到圭某
MEMBERS ABSENT
畊某
THE HONOURABLE CHENG YIU-TONG
綠模磁某
THE HONOURABLE SIN CHUNG-KAI
虫ヲ昂某
THE HONOURABLE MRS ELIZABETH WONG CHIEN CHI-LIEN, C.B.E., I.S.O., J.P.
独窥ㄤ军某C.B.E., I.S.O., J.P.
PUBLIC OFFICERS ATTENDING
畊そ戮
THE HONOURABLE MRS ANSON CHAN, C.B.E., J.P.
CHIEF SECRETARY
︽現Ы某ガ現朝よネC.B.E., J.P.
THE HONOURABLE DONALD TSANG YAM-KUEN, O.B.E., J.P.
FINANCIAL SECRETARY
︽現Ы某癩現纯疆舦ネO.B.E., J.P.
THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P.
ATTORNEY GENERAL
︽現Ы某現皑碔到ネC.M.G., J.P.
MR MICHAEL SUEN MING-YEUNG, C.B.E., J.P.
SECRETARY FOR HOME AFFAIRS
現叭甝喘ネC.B.E., J.P.
MR HAIDER HATIM TYEBJEE BARMA, I.S.O., J.P.
SECRETARY FOR TRANSPORT
笲块纉ゅネI.S.O., J.P.
MR DOMINIC WONG SHING-WAH, O.B.E., J.P.
SECRETARY FOR HOUSING
┬独琍地ネO.B.E., J.P.
MRS KATHERINE FOK LO SHIU-CHING, O.B.E., J.P.
SECRETARY FOR HEALTH AND WELFARE
徖ネ褐繬霉璼O.B.E., J.P.
MR RAFAEL HUI SI-YAN, J.P.
SECRETARY FOR FINANCIAL SERVICES
癩竒ㄆ叭砛くネJ.P.
MR JOSEPH WONG WING-PING, J.P.
SECRETARY FOR EDUCATION AND MANPOWER
毙▅参膚ッキネJ.P.
MISS DENISE YUE CHUNG-YEE, J.P.
SECRETARY FOR TRADE AND INDUSTRY
坝玕﹙┥J.P.
MR BOWEN LEUNG PO-WING, J.P.
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS
砏购吏挂現辩腳篴ネJ.P.
MR KWONG KI-CHI, J.P.
SECRETARY FOR THE TREASURY
畐叭馣ㄤвネJ.P.
MR LEE SHING-SEE, J.P.
SECRETARY FOR WORKS
叭ムネJ.P.
MRS CARRIE YAU TSANG KA-LAI, J.P.
SECRETARY FOR SECURITY
玂ぷ纯古腞J.P.
CLERKS IN ATTENDANCE
畊
MR RICKY FUNG CHOI-CHEUNG, SECRETARY GENERAL
毒更不ネ
MR LAW KAM-SANG, DEPUTY SECRETARY GENERAL
捌霉繟ネネ
PAPERS
The following papers were laid on the table pursuant to Standing Order 14(2):
Subject
Subsidiary Legislation L.N. No.
Child Care Centres (Amendment) Regulation 1996 79/96
Food and Drugs (Composition and Labelling)
(Amendment) Regulation 1996 80/96
Water Pollution Control (Victoria Harbour
(Phase Three) Water Control Zone) Order 81/96
Water Pollution Control (Victoria Harbour
(Phase Three) Water Control Zone)
(Appointed Days) Order 82/96
Statement of Water Quality Objectives (Victoria
Harbour (Phase Three) Water Control Zone) 83/96
Hong Kong Academy of Medicine Ordinance
(Amendment of Schedule) Order 1996 101/96
Solicitors' Practice (Amendment) Rules 1996 102/96
Travel Industry Compensation Fund (Procedure for
Ex Gratia Payments) (Amendment) Rules 1996 103/96
Travel Industry Compensation Fund (Amount of
Ex Gratia Payments and Financial Penalty)
(Amendment) Rules 1996 104/96
Criminal Procedure (Amendment) Ordinance 1995
(69 of 1995) (Commencement) Notice 1996 105/96
Import and Export (Strategic Commodities)
Regulations (Amendment of Schedule 1) Order 1996
(L.N. 17 of 1996) (Commencement) Notice 1996 106/96
District Court Civil Procedure (General)
(Use of Language) Rules (L.N. 589 of 1995)
(Commencement) Notice 1996 107/96
Matrimonial Causes (Amendment) Rules 1995
(L.N. 590 of 1995) (Commencement) Notice 1996 108/96
Employees' Compensation (Rules of Court)
(Amendment) Rules 1995 (L.N. 591 of 1995)
(Commencement) Notice 1996 109/96
Lands Tribunal (Amendment) Rules 1995
(L.N. 592 of 1995) (Commencement)
Notice 1996 110/96
Criminal Appeal (Amendment) Rules 1995
(L.N. 53 of 1996) (Commencement) Notice 1996 111/96
Criminal Procedure (Appeal Against Discharge)
(Amendment) Rules 1995 (L.N. 55 of 1996)
(Commencement) Notice 1996 112/96
Criminal Procedure (Applications Under Section 16)
(Amendment) Rules 1995 (L.N. 57 of 1996)
(Commencement) Notice 1996 113/96
Criminal Procedure (Reference of Questions of Law)
(Amendment) Rules 1995 (L.N. 59 of 1996)
(Commencement) Notice 1996 114/96
Official Languages (Authentic Chinese Text)
(Maintenance Orders (Reciprocal Enforcement)
Ordinance) Order (C) 15/96
Official Languages (Authentic Chinese Text)
(Traffic Accident Victims (Assistance Fund)
Ordinance) Order (C) 16/96
Official Languages (Authentic Chinese Text)
(Third Parties (Rights Against Insurers)
Ordinance) Order (C) 17/96
Official Languages (Authentic Chinese Text)
(Tax Reserve Certificates Ordinance) Order (C) 18/96
Official Languages (Alteration of Text)
(Electoral Provisions Ordinance) Order 1996 115/96
Official Languages (Alteration of Text)
(Legislative Council (Electoral Provisions)
Ordinance) Order 1996 116/96
Administration of Justice (Miscellaneous
Provisions) Ordinance 1995 (13 of 1995)
(Commencement) Notice 1996 117/96
Official Languages (Authentic Chinese Text)
(Electoral Provisions Ordinance) Order (C) 19/96
Official Languages (Authentic Chinese Text)
(Legislative Council (Electoral Provisions)
Ordinance) Order (C) 20/96
Pilotage (Amendment) Order 1996 118/96
Securities (Exchange - Traded Stock Options)
(Amendment) Rules 1996 119/96
Tax Reserve Certificates (Rate of Interest)
Notice 1996 120/96
Residential Care Homes (Elderly Persons)
Ordinance (Cap. 459) (Commencement)
Notice 1996 121/96
ゅン
ゅン沮盽砏材14(2)兵砏﹚τ矗ユ穦某畊凝
兜ヘ
妮猭ㄒ 猭そ絪腹
1996ギㄠいみ璹砏ㄒ 79/96
1996の媚Θだ┪夹乓
璹砏ㄒ 80/96
γ琕恨蝴ㄈ翠材戳
借恨跋 81/96
γ琕恨蝴ㄈ翠材戳借恨跋
﹚ら戳 82/96
借夹羘蝴ㄈ翠材戳
借恨跋 83/96
1996翠洛厩盡厩皘兵ㄒ
璹 101/96
1996畍磅穨璹砏玥 102/96
1996笴穨竭纕膀祇倒疭磃竭纕祘
璹砏玥 103/96
1996笴穨竭纕膀疭磃竭纕肂の籃蹿
璹砏玥 104/96
1995ㄆ禗砠祘璹兵ㄒ
1995材69腹
1996ネら戳そ 105/96
1996秈驹菠珇砏ㄒ
璹11996材17腹猭そ
1996ネら戳そ 106/96
よ猭皘チㄆ禗砠祘蹦ノ粂ゅ砏玥
1995材589腹猭そ
1996ネら戳そ 107/96
1995盉禗砠璹砏玥
1995材590腹猭そ
1996ネら戳そ 108/96
1995沟干纕猭皘砏玥璹砏玥
1995材591腹猭そ
1996ネら戳そ 109/96
1995糵掉矪璹砏玥
1995材592腹猭そ
1996ネら戳そ 110/96
1995ㄆ禗璹砏玥
1996材53腹猭そ
1996ネら戳そ 111/96
1995ㄆ禗砠祘癸秨睦掉∕ぃ狝禗
璹砏玥1996材55腹猭そ
1996ネら戳そ 112/96
1995ㄆ禗砠祘沮兵ㄒ材16兵τ矗ビ叫
璹砏玥1996材57腹猭そ
1996ネら戳そ 113/96
1995ㄆ禗砠祘盢猭拜肈矗ユ禗猭畑σ納
璹砏玥1996材59腹猭そ
1996ネら戳そ 114/96
猭﹚粂ゅいゅ痷絋セ暮緄
ユが眏磅︽兵ㄒ (C) 15/96
猭﹚粂ゅいゅ痷絋セユ硄種端
穿膀兵ㄒ (C) 16/96
猭﹚粂ゅいゅ痷絋セ材
玂繧纕舦兵ㄒ (C) 17/96
猭﹚粂ゅいゅ痷絋セ
纗祙ㄩ兵ㄒ (C) 18/96
1996猭﹚粂ゅэゅセ
匡羭砏﹚兵ㄒ 115/96
1996猭﹚粂ゅэゅセ
ミ猭Ы匡羭砏﹚兵ㄒ 116/96
1995猭馒兜砏﹚兵ㄒ
1995材13腹
1996ネら戳そ 117/96
猭﹚粂ゅいゅ痷絋セ
匡羭砏﹚兵ㄒ (C) 19/96
猭﹚粂ゅいゅ痷絋セ
ミ猭Ы匡羭砏﹚兵ㄒ (C) 20/96
1996烩翠璹 118/96
1996靡ㄩ羛ユ┮禦芥戳舦
璹砏玥 119/96
1996纗祙ㄩ瞯そ 120/96
ρ皘兵ㄒ材459腹
1996ネら戳そ 121/96
Sessional Papers 1995-96
No. 63 Draft Estimates for the year ending 31 March 1997;
Volume IA and Volume IB General Revenue Account
No. 64 Draft Estimates for the year ending 31 March 1997;
Volume II Fund Accounts
き︓せ穦戳ず矗ユゅン
材63腹 篒︓るらゎ癩現
箇衡ヒの场
現┎Μ眀ヘ
材64腹 篒︓るらゎ癩現
箇衡膀眀ヘ
WRITTEN ANSWERS TO QUESTIONS
Performance Control of Public Works Contractors
1. 霉睲某拜玴紈恏癸秨︽ぱ爵縱戳丁厄沮秆赣祘┯坝钡莉盢瓁緿跋現┎祘碞現┎セЫ
(a) 赣┯坝のㄤ妮そ筁┕┮┯钡現┎の┬〆穦珹砍その﹡祘いΤぶ纯祇ネ種
(b) 現┎у祘琌Τσ納┯坝筁┕瞷疭琌ㄤ魁璝礛讽祘種靡琌パ┯坝波┛τ硑Θ現┎穦σ納穝糵琩赣┯坝┮┯钡ㄤ祘
(c) 挪Τ厨旧孔さΩ種琌羬や琜瞷拜肈┮ま璓現┎癸ㄏノ单羬や琜Τ甅夹非ㄑ浪–兜祘秨甶玡А浪琩赣单や琜уㄏノの
(d) ゼ琩種玡現┎穦σ納既いゎ┮Τ摸祘
SECRETARY FOR WORKS: Mr President, my answer to the respective parts of the question is as follows:
(a) Wan Hin and Company Limited has undertaken 11 Public Works Contracts and nine Housing Authority Contracts in the past three years. Of these, there were one (the recent one in Tseung Kwan O) fatal accident in the former and two in the latter.
(b) The past performance of the lowest three tenderers are assessed in detail before tender recommendations are made. One important aspect of the tenderers' performance is their safety performance in previous contracts. Tenderers' site safety convictions under the Factory and Industrial Safety Regulations will also be considered before recommending award of contract.
Where the cause of a major accident can be clearly identified, it is our practice to make the circumstances known to all works departments, the Housing Authority and other agencies who are or may be responsible for similar contracts.
(c) The exact cause of the accident has yet to be identified and investigation is being actively undertaken by the police and the Labour Department with assistance from the Territory Development Department. In order to ensure temporary works such as supporting props are properly designed and constructed, the contractor is required under the contract to engage a professionally qualified independent checking engineer to check and certify the different stages of the design and construction of the temporary works. Accordingly, the contractor has to ensure that all temporary works throughout all construction stages are constructed in accordance with the certified design.
(d) The in-situ casting of concrete decks and beams above carriageways in use has been used successfully in previous projects, in particular where circumstances have been against the use of precasting within a reasonable distance or in view of undesirable closure of busy roads during the erection of the precast beams. Following the tragic accident at Tseung Kwan O, we have advised departments with projects involving works over roads to be especially vigilant. However, there are currently no project with casting the beams in-situ above their final position similar to Tseung Kwan O and, were any to arise, we would reassess the methodology in the light of this accident.
Correctional Services Department Staff of Vietnamese Unit
2. 綠模磁某拜挪翠┎龟琁Τ缓禫玭差チ現郸孩翠差チ计ヘら痲搭ぶ禫玭差チ霹痙いみョ硋˙闽超硂癸璽砫恨差チ胓毙竝戮盢硑Θ紇臫碞現┎セЫ
(a) 胓毙竝瞷Τぶ戮刘妮禫玭差チ舱(Vietnamese Unit)
(b) 禫玭差チ霹痙いみ场闽超胓毙竝穦︙竚刘妮禫玭差チ舱戮琌穦盢-
锣盽砏戮璝礛︓さΤぶ刘妮禫玭差チ舱戮锣盽砏戮の
(c) 瞷刘妮禫玭差チ舱戮璶锣盽砏戮琌斗穝ビ叫戮τも尿穦籔ㄤ穝―戮璝礛或璶逼現┎穦э跑瞷暗猭-
甧锣盽砏戮
SECRETARY FOR SECURITY: Mr President,
(a) At present, the Correctional Services Department (CSD) has a total strength of 903 staff serving in the Vietnamese Migrants (VM) Division. The Division comprises 614 regular disciplined staff, four Common Grades staff, 42 General Grades staff, 226 VM staff (employed specifically to man Vietnamese Migrant Detention Centres) and 17 technical grades staff.
(b) With the gradual closure of the VM camps, the service of most of the staff in VM camps will no longer be required. The regular staff and the Common Grades staff will be posted back to penal institutions to fill existing and anticipated vacancies. The General Grades staff will either be absorbed by the CSD or returned to the central government. The VM staff and the technical grades staff will be absorbed by the CSD as far as possible. Those who wish to continue working in the Civil Service will be helped to find job placements; they will be given priority for appointment if they are found suitable to fill the vacancies. Those who do not wish to work in the Civil Service will be offered retirement on abolition-of-office terms. The staff have been fully briefed on these arrangements.
To reduce the number of surplus staff, the CSD has been actively recruiting VM staff to join the regular stream, subject to their willingness and suitability. Over the years, a total of 171 VM staff have been appointed to similar ranks in the regular stream. Efforts to encourage the rest of the VM staff to apply to switch will continue.
(c) In line with the normal practice in the Civil Service, VM staff who wish to apply to work in the regular stream will follow the same basic application procedure as for new recruits. If they fulfil the basic entry requirements and are found suitable by the Department, we will accept them readily. We have examined the transfer arrangements carefully. There is no need to change the existing arrangements given the ongoing successful transfer of a larger number of VM staff to the regular stream.
Prison Escapes
3. 襖略ビ某拜Τ闽デ発胓毙┮拜肈現┎セЫ
(a) 眖セ翠胓毙┮Θ発ǐデ计ぃ阶ㄆ
(b) 戳丁镑発デ计ぶ
(c) 発ǐデ┮狝戳キАデ発ǐ﹟ゼ狝骸戳キАΤの
(d) 沮胓毙竝┮デ発ǐ璶︙
SECRETARY FOR SECURITY: Mr President,
(a) Over the past three years, 14 prisoners have escaped, including two Training Centre (Cape Collinson) inmates. The table below shows the breakdown by institution:
Institution Number of
escaped prisoners
1993 1994 1995
Medium Security
Hei Ling Chau
Correctional Institution 1
Ma Po Ping Prison 3
Minimum Security
Cape Collinson
Correctional Institution 2
Lai Sun Correctional
Institution 3 2
Pik Uk Prison 3
--- --- ---
Total 2 4 8
(b) Of these 14 persons, 12 have been recaptured.
(c) The terms of sentence of the two Training Centre inmates were not fixed: they should serve a period of no less than six months, but no more than 36 months, depending on their performance in the course of their training. The 12 prisoners, who were given fixed sentences, were serving 22 months on average.
In respect of the two Training Centre inmates, the average remaining length of sentence was no more than 29 months. The average remaining sentence of the 12 prisoners was 10 months.
(d) The main reasons given by the recaptured prisoners were that they felt homesick or they claimed they had to take care of important personal matters outside the institution.
New Territories Land Categories
4. 糂祇某拜パ菌穝砆ぃ贺摸ㄒ玌嘿"侣""侣у""笰"单碞現┎セЫ
(a) 穝だぶ摸現┎︙秨﹍盢Τ闽だ摸の︙ЧΘ
(b) 贺摸瞶沮のㄤㄏノ兵ンだ︙の
(c) 現┎Τ浪癚Τ闽蝶︳赣单ノ硚琌才瞷さ惠璶
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,
(a) lots in the New Territories can be classified into two broad categories, namely, old schedule lots (that is, those held under Block Crown Leases) and new grant lots (that is, those other than old schedule lots).
Old schedule lots were covered by a survey the Government undertook between 1899 and 1903 in respect of all privately-owned land holdings in the New Territories. Following the survey, the land was granted by means of Block Crown Leases. Within each Block Crown Lease, the land was further subdivided into lots, classified mainly as "building" or "agricultural" land according to the then current use.
New grant lots are simply land that was granted after the above survey. They can be subdivided into pre-war new grant lots and post-war new grant lots;
(b) as explained in (a) above, the categorization of land arose out of historical reasons. The permissible land use of a lot in each category is governed by the relevant conditions as well as statutory plans prepared under the Town Planning Ordinance.
Development on old schedule lots are subject to covenants contained in Block Crown Leases. These covenants prohibit building without the prior approval of the Land Authority. Developments on pre-war new grant lots are subject to the conditions contained in the General and Special Conditions of Sale of Land in the New Territories prevailing at the time when the lots were disposed of. Developments on post-war new grant lots are, as a general rule, subject to a set of general and special conditions which have been drawn up for each grant.
As regards statutory planning control over land use, the statutory plans are prepared on the basis of findings from various strategic and district planning studies and are revised from time to time to cater for changing needs and circumstances; and
(c) we have no intention to re-categorize lots in the New Territories. But as explained in (b) above, the statutory plans which govern land use in the New Territories are revised from time to time to cater for changing needs and circumstances. Where the existing lease conditions of a lot are not consistent with the current statutory plans and administrative controls, the Government is prepared to consider applications for lease modifications. They may be approved subject to such terms and conditions as imposed by the Government, including the charging of premium.
Appointment of District Board Members to Public Advisory Bodies
5. 讲蚌某拜現┎セЫ
(a) 筁現┎渤吭高〆穦いΤぶΘ琌跋糷跋τㄤいΤぶ琌チ匡跋某の
(b) 現┎琌穦〆ヴ跋糷跋吭高〆穦現┎矗ㄑ種ǎ璝礛︳璸せ︓赣摸〆ヴ计糤碩︙璝︙
SECRETARY FOR HOME AFFAIRS: Mr President,
(a) For the purpose of this reply, we have taken major local community groups to mean District Boards, Area Committees, Rural Committees and District Fight Crime Committees. The number of members from these local groups who were appointed to sit on government advisory bodies over the past three years is as follows:
1993 1994 1995
97 77 82
Of the above, the number of elected district board members is as follows:
1993 1994 1995
27 25 31
(b) When making appointments to advisory boards and committees, the Government's overriding objective is to ensure that the best persons capable of meeting the specific requirements of the concerned advisory bodies are appointed. To this end, appointments are made on the basis of the merits of the individuals concerned taking account of their personal ability, expertise, experience, integrity, commitment to public service and their overall suitability for appointment. The experience and background of those people from local community groups will also be taken into consideration. It is not possible to predict whether an increase in appointment of such people will take place next year. However, the Government will continue to keep in view the suitability of the members from local community groups for appointments to advisory bodies.
Container Thefts
6. 糂胺祸某拜挪砯耫ア叛ㄆンΤ祇ネ現┎セЫ
(a) 筁牡よ钡Τ闽砯耫ア叛ンΤぶ﹙Θр砯耫碝Τぶ﹙
(b) 現┎Τ︙︽笆┪惫琁ゴ阑摸竜ňゎ砯耫ア叛拜肈碿て磷Τ闽砯㎝砯耫笲块そ籜ぃゲ璶穕アの
(c) い瓣嘲挂ず祇瞷ア叛砯耫牡よ穦璶―い瓣讽Ы逼盢砯耫ユセ翠
SECRETARY FOR SECURITY: Mr President,
(a) The police only started to capture separate statistics on theft of containers since September last year. Before that, these statistics were grouped under theft or miscellaneous thefts. From September 1995 to February 1996, a total of 120 containers was reported stolen and 28 of them have been recovered. The breakdowns by police regions are set out below:
Number of Containers Reported Stolen
and Recovered September 1995 - February 1996
Number of Number of
Police Regions Containers Containers
Reported Stolen Recovered
New Territories North 107 27
New Territories South 13 1
Kowloon East NIL NIL
Kowloon West NIL NIL
Hong Kong Island NIL NIL
Marine NIL NIL
Total 120 28
(b) The police have accorded high priority in tackling container thefts and adopted the following measures:
(i) Proactive intelligence-led operations
Evidence indicates that the vast majority of these thefts were committed by syndicates. Dedicated units have been set up to collect intelligence and mount operations against targeted suspects in a number of blackspots;
(ii) Detection at Border Crossing Points
The police maintain close liaison with the Immigration Department and the Customs and Excise Department to detect stolen containers at the various border crossing points when they are being smuggled across the border;
(iii) Preventive Measures
With the assistance of insurance companies and the container tractor drivers' associations, the police provide advice on crime prevention to operators in the trade to heighten their awareness on container thefts.
(c) The police maintain close liaison with the Chinese authorities to combat cross-border crimes. In the event that stolen tractors or containers are found in China, the police will request for their return. So far, the Chinese authorities have returned to us a total of 22 container tractors, one trailor and one container which were stolen in Hong Kong and recovered from different areas of Guangdong Province during their anti-crime operations.
Extension of Kowloon Motor Bus Franchise
7. 糂ホ某拜碞┑尿纒ぺΤそ虏嘿"ぺ"盡犁舦ㄆ現┎セЫ
(a) 現┎籔ぺ碞┑尿盡犁舦坝癚秈甶︙珹某僚ぺ柬恨璸购程穝秈甶箇璸Τ闽坝癚︙ЧΘ穦碞Τ闽拜肈吭高セЫの
(b) 現┎穦σ納琵ㄤぺそ籔ぺ竒犁隔絬眏膙
SECRETARY FOR TRANSPORT: Mr President,
(a) The Kowloon Motor Bus Company Limited (KMB)'s current franchise will expire on 31 August 1997. The Administration expects to award a new franchise to KMB and has started negotiations with the company. Our intention is to abolish the current profit control scheme in this new franchise. As requested by Honourable Members, and now stipulated under section 6(2A) of the Public Bus Services Ordinance, a recommendation on a bus franchise renewal should be put to the Governor in Council not less than nine months before the expiry of the franchise, that is, before December 1996. We are working towards and should meet this timetable. As part of this exercise, we shall consult both the Transport Advisory Committee and the Transport Panel of this Council.
(b) In general, it is the Government' policy to encourage competition. However, in so far as bus services are concerned, it is not practicable nor viable to allow for a complete duplication of bus routes. Franchised bus operators like KMB are required to operate a network of services, some of which are profitable and some are not. Allowing an additional operator to run parallel services throughout the same network would affect the operating efficiency and financial viability of the franchisee. There are also other practical problems such as the difficulty in finding suitable depot sites for bus operations.
Policemen Running into Debts
8. 眎ゅ某拜癸牡璽杜拜肈現┎セЫ
(a) 牡叭筁–牡诡纗籛が蹿计肂叫ㄌ┮妮牡跋戮膜
(b) 琌眡牡叭筁–礟蝗︽┪癩叭そ蹿计肂璝礛叫ㄌ┮妮牡跋戮膜
(c) 筁琌Τ祇瞷牡獶猭蔼禪蹿璝礛叫ㄌ┮妮牡跋戮膜┮计肂
(d) 牡钉恨瞶糷琌Τ碞牡禪薄猵秈︽だ猂璝礛牡禪Τど镣墩Τ╯牡璽杜の︙э到牡禪拜肈の
(e) 牡钉恨瞶糷Τ︙菏服惫琁ňゎ璽杜牡砆デ竜栋刮ノ甡牡钉磅猭
SECRETARY FOR SECURITY: Mr President, the answer to the five parts in this question is as follows:
(a) The Police Credit Union currently has assets of over $490 million. These assets are in fact savings of Police Force members. The amount of loans borrowed from the Union in the past three years are:
1993 $295.8 million
1994 $344.7 million
1995 $433.5 million
The increase in loan over the years was mainly due to a steady increase in membership. The police do not keep statistics on the breakdown of loans by police regions or ranks of the officers.
(b) There is no requirement for police officers to disclose details of their private loans as this would constitute an arbitrary interference with their privacy. We therefore do not have the amount of loans borrowed by police officers from licensed banks or financial institutions.
(c) In the past three years, a total of five police officers were found and disciplined for obtaining loans from illegal money-lenders including loan sharks. The breakdowns are as follows:
Year Rank Region Amount
1993 NIL NIL NIL
1994 Police Constable Kowloon West $20,000
Police Constable Hong Kong Island $22,500
1995 Police Constable New Territories South $240,000
Police Constable Hong Kong Island $180,000
Sergeant Kowloon West $20,000
(d) The Force monitors closely the situation of unmanageable debts among police officers by conducting six monthly surveys. The number of cases of unmanageable debts had dropped from 145 for the second half of 1994 to 132 for the first half of 1995. The survey for the second half of 1995 showed a further decrease to 87. Overspending and gambling were the main reasons for having unmanageable debts.
The Commissioner of Police maintains a strict policy on indebtedness of police officers as serious pecuniary embarrassment might compromise the integrity of the officer concerned. Police officers are required to be prudent and temperate in their financial affairs and encouraged to adopt a healthy lifestyle.
Accordingly, the Force has developed a comprehensive strategy for preventing, identifying and dealing with the indebtedness of police officers. It includes briefings and seminars for new recruits and serving officers on indebtedness and personal budgeting. Where appropriate, counseling will also be offered. Officers who are indebted under the following circumstances may be subject to criminal or disciplinary proceedings:
(i) betting, gambling, or otherwise related indebtedness;
(ii) having financial obligation to any person or organization other than as permitted by the Acceptance of Advantage (Governor's Permission) Notice or the Police General Orders.
The Force has also issued an administrative guideline outlining steps to be taken at different levels of management to monitor and tackle indebtedness. A list of indicators of indebtedness has been drawn up to heighten the awareness of the management on the extent of indebtedness of individual officers.
(e) In addition to (d), there are well-established measures to prevent police officers from being exploited by criminals:
(i) Vetting
Officers posted to sensitive posts, for example, anti-triad or anti-vice units, are vetted to ensure only officers of high integrity are placed in these positions;
(ii) Unofficial association with criminals
The Police General Orders specify that police officers, other than in the course of their duty, shall not associate with known criminals or triad personalities. If proved to have done so, an officer can be subject to disciplinary action;
(iii) Turnover of posting
An officer in a sensitive post will not normally be allowed to remain in that post for an excessive period;
(iv) Cross-territorial operations
Officers from different units are allowed to conduct raids and make arrests in other Divisions, Districts and Regions;
(v) Organizational structure reviews
Organizational structures are constantly reviewed to minimize opportunities for corruption.
Occupational Deafness Compensation Scheme
9. 币某拜戮穨┦ア羙干纕璸购きる秨﹍タΑ钡ビ叫現┎セЫ
(a) 戮穨┦ア羙干纕恨瞶Ы(虏嘿"赣恨瞶Ы")盢︙祇干纕倒уビ叫干纕ア羙沟の莉眔干纕计︙
(b) 赣恨瞶Ы–Μ计の赣恨瞶Ы–る︽現秨や禣ノ︙
(c) 赣恨瞶Ы癸礚猭矗ㄑ┮惠沟沟ノ靡ビ叫倒ぉㄏㄤビ叫莉钡の
(d) ビ叫玡沟產そ┪沟穦σ納钡-
┘が靡靡沮
SECRETARY FOR EDUCATION AND MANPOWER: Mr President,
(a) As of 29 February 1996, 45 applications for compensation payment have been approved under the Scheme. The first batch of payments by the Occupational Deafness Compensation Board for nine of these applications were made in early February 1996.
(b) In 1995, the Government provided a funding injection of $100 million to the Board and an interest-free loan of $115 million as a start-up fund for the Occupational Deafness Compensation Scheme. As for its recurrent income, the Scheme is funded by an across-the-board levy of 1.5% on the insurance premia of all employees' compensation policies which employers are required to purchase, in accordance with the Employees Compensation Ordinance. This levy income is collected by the Employees Compensation Insurance Levies Management Board and distributed to the Occupational Deafness Compensation Board (the Board) at quarterly intervals. The first quarterly levy income was distributed to the Board in December 1995 and the estimated levy income for the whole year is around $30 million. As of 29 February 1996, the average monthly administrative expenses incurred by the Board amount to $520,000.
(c) and (d)
According to section 14 of the Occupational Deafness Compensation Ordinance, a person who suffers noise-induced deafness and who wishes to claim compensation under the Scheme has to satisfy a requirement that before the date of application, he has had at least 10 years of employment in aggregate in noisy occupations in Hong Kong as defined under the Ordinance.
Apart from the references from employers, the Board will take into account statements made by co-workers of the applicant, as well as other documentary proofs such as tax returns, employment contracts, and wage records in deciding whether the applicant meets this requirement. The Board will also seek information from other relevant parties during the verification process as and when necessary.
Immigration Clearance Time
10. 糕蚌┚某拜現┎セЫ
(a) 瞷チ挂ㄆ叭矪快瞶–ㄓ翠挂も尿キА惠
(b) ヘ玡快瞶赣单も尿┮惠丁籔穝℡のらセㄢゑ耕薄猵︙の
(c) チ挂ㄆ叭矪穦σ納罽祏瞷矪瞶砐翠挂も尿丁矗ㄑΤ瞯狝叭
SECRETARY FOR SECURITY: Mr President, processing time may refer to waiting time, which is the standard used in our performance pledge, or time required to process each transaction. I shall include both references in my reply.
(a) The average time required to clear the immigration procedure for each visitor at the airport is 90 seconds on arrival and 50 seconds on departure. During the months of November and December 1995 and January 1996, on average 92% of arriving visitors were cleared within the target waiting time of 30 minutes. For departing passengers, our performances has consistently been close to 100%.
(b) We have approached the Japanese and Singaporean authorities to obtain the information, which is still not available at the time this reply is issued. We will separately provide the information to the Council when it is available.
(c) The Government is committed to providing an efficient immigration clearance service to facilitate ease of travel by overseas visitors to Hong Kong. In September 1995, the Immigration Department implemented a new computer system to process machine readable passports by optical scanners. This results in a reduction of 20 seconds of the time required for each transaction involving a machine readable passport. Apart from the transaction time, we have also taken steps to reduce the overall waiting time of visitors. At the airport, we have taken the following improvement measures:
(i) the addition of 51 staff to increase the number of counters from 116 to 128;
(ii) adjustment of the roster and staggering meal breaks of counter staff over a longer period to maximize the number of counters that can be manned at any one time;
(iii) the Civil Aviation Department is seeking funds to implement a serpentine queuing arrangement (single queue for multiple counters) at the departure level;
(iv) a consultancy on the current system, conducted from October to December 1995, has identified measures for further improvement; and
(v) during festive rush periods such as Easter, Christmas and the Chinese New Year, all roster leave for the staff is suspended so as to deploy additional staff to cope with the heavy workload.
Education on Appreciation of Chinese Culture and History
11. DR DAVID LI asked: According to a recent survey commissioned by the Curriculum Development Council, 10% of primary school pupils thought there was no need to respect Chinese traditions. Moreover, the survey found that the pupils' civic knowledge was generally confined to classroom teaching. In this connection, will the Government inform this Council:
(a) how it plans to reinforce pupils' appreciation of Chinese culture and history, which is vital for developing national identity; and
(b) what specific programmes will be implemented by primary schools to enhance pupils' awareness of civic issues?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President,
(a) Primary students learn about Chinese culture and Chinese history through different subjects such as Social Studies and Chinese Language, extra-curricular activities, school assemblies and class teacher periods. The Education Department encourages schools to organize civic education related extra-curricular activities, such as interest clubs and inter-school competitions, by providing advisory services, co-ordination and financial assistance as necessary.
From September 1996, the Government will reinforce learning in these areas through the introduction of a new set of Guidelines on Civic Education which is now under public consultation. One of the five areas in the suggested curriculum framework is on China. This will enhance the students' understanding of Chinese culture and Chinese history, and give them a better knowledge of China's political, economic and administrative systems.
To support teaching of these areas, the Education Department will provide teaching kits to schools on different aspects of China from the school year 1996-97. These will be supplemented by Education Television Programmes covering a range of topics on Chinese society and culture.
(b) We will implement additional measures to promote civic education in both primary and secondary schools. Specifically at primary level, we will introduce a new core subject of General Studies in the 1996-97 school year. It aims to equip our primary children with the basic knowledge relating to the individual, family, society, and science and technology; and to develop in them study and life skills, problem solving capability and analytical thinking. At Primary Five and Six, the content extends from the individual and society to Hong Kong, China and the world as a whole.
Under the proposed new Guidelines on Civic Education, emphasis will be put on promoting our students' critical thinking. In handling a topic on civic education, school teachers will be advised to present different views and to assist students to discover and evaluate their own values through reflection. At primary level, the teaching objectives will progress from helping students to recognize their role within the school, family and community to developing their concern for major events in Hong Kong, China and the world.
To prepare teachers to implement the new Guidelines on Civic Education through classroom teaching and extra-curricular activities, we will organize in-service teacher training starting around May 1996.
Emergency Co-ordination
12. 朝挪狶某拜拉偿そ堕﹉畃ら玡祇ネㄆンま癬カチ闽猔現┎场珸毕︽笆のㄆ洛励筁祘单よだ秸Τǎの現┎セЫ
(a) ︙盡莱ㄆ珿τ砞ミガ現竝候ㄆ珿参膚いみㄆ祇讽ら⊿Τ笲赣参膚いみ或薄猵穦笲
(b) 琌Τ惠璶浪癚毕臔斗盢端癳┕碞洛皘┪禘┮獀励ま穦浪癚讽ら盢端栋いパ嘲隔癳┕焊吹克洛皘逼Τ┑粇毕
(c) 現┎︙⊿Τ璶―緉翠璣瓁珸毕端┪ど诀盢端だ床癳┕洛皘︙贺薄猵穦璶―璣瓁
(d) 摸ㄆ珿い洛皘恨瞶Ы┮ш簍秸à︹︙︙穦瞷嚎腞洛皘Τブ涧纗τ焊吹克洛皘玱璶そ秨㊣苸カチ秘ブ涧薄猵の
(e) Τ︙惫琁э到ň矪毕臔硄癟砞称の秆∕毕臔ó矪瞶縉端種祸竟ぃì拜肈
SECRETARY FOR SECURITY: Mr President,
(a) The Government's emergency response system is built upon professional, well-trained disciplined services staff (primarily Fire Services and police), on call 24 hours a day to respond to emergencies. The Government's emergency services are mobilized by departmental command and communication centres (CCCs) operating 24 hours a day. Through these CCCs, the emergency services involving different departments and agencies are well co-ordinated to provide the necessary response in most emergencies. The Government Secretariat Emergency Co-ordination Centre (GSECC) is opened only when the scale of response required is likely to be in excess of that which can be dealt with by the emergency services under their normal operating conditions. The GSECC is required to operate in situations which are usually of a territory-wide nature (for example, rainstorms) to facilitate inter-departmental liaison; and to ensure all relevant information is gathered centrally to facilitate any decision to be made in the Government Secretariat as necessary. In the case of the Pat Sin Range hill fire, as it was largely a localized incident, the Fire Services Communication Centre (FSCC) quickly involved the police, Civil Aid Services, Agriculture and Fisheries Department, Government Flying Services, Auxiliary Medical Services, the Hospital Authority, Information Services Department, Education Department, Social Welfare Department and the Home Affairs Department.
To provide an effective and efficient response to emergencies, it is essential to keep emergency command and communication systems as simple as possible. The Security Branch Duty Officer was informed by the FSCC and the Secretary for Security was kept informed through this channel and through his talks directly with the Director of Fire Services. As the response was under proper and effective co-ordination by the Department, we did not consider it necessary to activate the GSECC to add an extra layer to the communication process.
(b) The practice of taking patients to the nearest accident and emergency facility is a standard procedure that has been developed by the Fire Services Department, in consultation with the Hospital Authority and the Department of Health. Getting the earliest possible life-saving aid to casualties is in their best interests, even if patients subsequently need to be transferred to receive more specialized treatment. A decision was made to transfer patients to the Prince of Wales Hospital (PWH) by land, because they could then receive continuous ambulance care and treatment en route. This form of transfer, in fact, allowed the patients to be delivered to PWH as quickly as any alternative. The investigation team appointed by the Director of Fire Services will report on this practice and will consider what improvements may be made.
(c) We would ask the Commander, British Forces for assistance when we know that the Government's resources are insufficient or inadequate to deal with a situation effectively and within a reasonable period. On this occasion, the Government Flying Services (GFS) had sufficient helicopters to perform all the necessary duties and did not, therefore, need to seek additional assistance from the British Forces. The area where rescue services were being conducted was very small. In order to ensure flight safety in the operational area, there was a practical limit on how many helicopters could be deployed. With reinforcement from Civil Aid Services to form the rescue teams, it was not considered necessary to seek assistance from the British Garrison on rescue support.
(d) The Hospital Authority Head Office (HAHO) is responsible for liaison to ensure that adequate medical resources are provided. On this occasion, the HA implemented its contingency plans when the FSCC notified it of the need to treat the casualties. An emergency medical team was despatched immediately to the scene and supporting staff were mobilized in PWH to prepare for admission of the burn patients. To ensure speedy and effective treatment of these patients, HAHO also co-ordinated efforts to support the hospital by making contingency arrangements to transfer patients to other hospitals if necessary, and providing emergency funding for additional supplies of medical consumables and equipment.
There was a sufficient supply of skin in the public hospital system to cater for the short-term skin graft requirements of all the burn patients admitted to PWH. Transplant co-ordinators facilitated access to the skin banks. The public appeal for skin donations was made in anticipation of the long-term requirements for the management of the burn patients.
(e) All ambulances have radio telephones to communicate with the FSCC. For on-site communication, the incident commander, the incident ambulance officer and the officers leading working crews have hand-held radios to communicate with each other and with the Incident Command post.
All ambulances have, as standard equipment, cling film and burn sheets to treat burns. They also have analgesic apparatus to reduce pain. The ambulancemen's objective is to cover burns, to reduce the risk of infection and to prevent fluid loss in the time before patients reach hospital.
The need for additional equipment on ambulances will be one of the issues that will be addressed in the report on the Pat Sin Range hill fire. We will study the recommendations before deciding what improvements may be necessary.
Task Force on Services Promotion
13. 產不某拜羆服琁現厨い矗の癩現砞ミ盡砫舱璽砫﹚セ翠狝叭穨秈˙祇甶よ皐糵稸钮坝㎝Τ闽盡產種ǎ現┎セЫ
(a) 舱Θミ︓さ羭︽ぶΩ穦某の笷Θ或ㄣ砰挡阶狝叭穨祇甶
(b) 舱纯吭高ㄇ坝種ǎΤㄇ種ǎ莉眔钡の
(c) 穦σ納–Ω舱穦某そガ癚阶某肈の┮笷Θ挡阶眏舱硓
SECRETARY FOR TRADE AND INDUSTRY: Mr President, the Task Force on Services Promotion has met five times since its establishment in August 1995. Details of the preliminary results of the Task Force's work are set out in a public document.
The Government is fully aware of the need to have the benefit of the views of the business community in the formulation of the Task Force's recommendations. For this reason, the Financial Secretary has set up an Ad Hoc Consultative Group with prominent business leaders, professionals and academics. In addition, a symposium co-organized by the Government and the business community will be held on 12 March to enable further exchange of ideas relating to the development of the services sector and the facilitating role of the Government.
The public document which I referred to earlier serves to keep the community informed of the work of the Task Force. It also provides a basis for extensive public discussion on this important sector of the economy. Views from the public and the services sector are pivotal to the deliberations of the Task Force which, on completion of its work, will publish a final report for public information.
Eligibility for Occupational Deafness Claims
14. 辩模┚某拜らΤア羙ねщ禗戮穨┦ア羙干纕恨瞶Ы(虏嘿"赣恨瞶Ы")ビ干纕璶―戈筁腨ぃぶね瘤Τ唉φΨア羙玱ごぃ才ビ叫干纕戈沮眡ねそミ洛皘の╬產禘┮秖ㄓキА钮穕ア┕┕Τ畉禯Τǎの現┎セЫ
(a) 赣恨瞶ЫパΘミ︓さ钡莉ぶ﹙ビ叫ごσ納いΤぶ﹙
(b) 瞷そミ洛皘の╬產禘┮琌蹦ノよ猭秖ねキА钮穕ア璝礛硂甅よ猭琌妓璝︙
(c) 挪剐甁↖帝痜干纕膀┦借籔戮穨┦ア羙干纕膀︙玡ビ礚斗︑︽煤禣秈︽代刚τビ玱斗︑︽煤禣秈︽钮代喷の
(d) ㄌ沮或非玥砏﹚戮穨┦ア羙干纕ビ斗眖ㄆ程ぶ蔼靖
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, the Occupational Deafness Compensation Scheme is a collective liability compensation scheme which was set up under the Occupational Deafness (Compensation) Ordinance in April 1995, with the objective of compensating employees who suffer from noise-induced deafness by reason of their employment. The Scheme came into operation in July 1995.
To be eligible for compensation under the scheme, a claimant is required under the Ordinance to fulfill the following disability and occupational requirements:
(a) he should be suffering from sensorineural hearing loss amounting to not less than 50 dB in each ear, where such loss is due in the case of at least one ear to noise and being the average of pure tone losses measured by audiometry over the 1, 2 and 3 kHz frequencies; and
(b) he should have
(i) at least 10 years of employment in aggregate in specified noisy occupations in Hong Kong; and
(ii) a period of continuous employment in a noisy occupation at any time either within the 12 months preceding the application for compensation or within the 72 months before the date of implementation of the scheme, that is, 1 July 1995, provided that he submits his application for compensation within 12 months after the commencement of the Scheme, that is, by 30 June 1996.
As regards Part (a) of the question, up to 29 February 1996, the Occupational Deafness Compensation Board (the Board) has received 231 applications for compensation of which 142 are under consideration, 45 have been approved, 39 were rejected, and five withdrawn by the applicants.
As regards Part (b) of the question, according to Section 15 of the Ordinance, a claimant who applies for compensation under the Scheme and who fulfills the occupational requirements has to undergo a hearing test at a hearing test centre designated by the Board for the purpose of assessing the degree of hearing loss suffered by the claimant. The Yaumati ENT Clinic of the Hospital Authority is the only clinic which has been designated by the Board under Section 36 of the Ordinance as the hearing test centre for the Scheme.
The audiological facilities and calibration methods being used in the hearing tests conducted at the Yaumati ENT Clinic conform with well-established international standards. Moreover, as an administrative rule, the Board requires each claimant who applies for the hearing test to be away from excessive noise at work for at least 24 hours prior to taking the audiometric test, so that the measurements can truly reflect his/her permanent hearing disability. This rule is also in line with international standards. As regards tests conducted by private clinics, we have no information on the audiological facilities and calibration methods which may be used to determine hearing loss. Nevertheless, the results of hearing tests conducted by any of these private clinics will not be accepted for the purpose of compensation under the Scheme.
Part (c) of the question concerns the requirement that the claimant has to pay for the hearing test under the Scheme. This requirement was drawn up as a means to prevent abuse of the hearing test arrangement, having regard to the limited audiological resources in Hong Kong. However, all claimants who have passed the hearing test conducted by the hearing test centre designated by the Board will be reimbursed the full amount of the cost and will not be required to pay for the cost of the subsequent medical examination which will be fully borne by the Board.
It is not appropriate to compare this aspect of the Scheme with the Pneumoconiosis Compensation Scheme (PCS) another collective liability compensation scheme established by statute for persons who are diagnosed after 1 January 1981 to be suffering from pneumoconiosis. The incidence of pneumoconiosis suffered by claimants under the PCS is usually identified through a lengthy curative process. Patients have normally been suffering from chest diseases and receiving medical care for a considerable time. When their medical conditions have become stabilized, their attending physicians (usually doctors in the Government chest clinics) will be in a position to diagnose that they may have contracted pneumoconiosis and refer them to the Pneumoconiosis Medical Board (a body established for the determination of the degree of incapacity of eligible pneumoconiotics under the PCS) for consideration. In other words, these claimants have already undergone the necessary screening procedure during the treatment process. It is therefore not necessary to require them to pay for the cost of a pulmonary function test.
As regards Part (d) of the question, an occupational requirement was required so as to establish a casual relationship between a claimant's deafness and his occupation. This is essential because the objective of the Scheme is to provide compensation for persons suffering for noise-induced deafness by reason of their employment.
The occupational requirement was set at 10 years on the basis of medical advice that this time period was considered appropriate for the development of the minimum sensorineural hearing loss of 50 dB measured at 1, 2, and 3 kHz frequencies as specified under the Scheme. This was also determined with reference to the same requirement used in the United Kingdom and Singapore for their own occupational deafness compensation schemes.
In the light of its operational experience, we will conduct a review on all the various aspects of the Scheme after it has been in operation for one year.
Government Relief in Chills
15. MRS ELIZABETH WONG asked: Arising from the large numbers of deaths of old people, suspected to have been caused by hypothermia, over the Lunar New Year holiday period, will the Government inform this Council whether it has conducted an investigation into the appropriateness of the Government's action to meet the needs of the vulnerable groups in the recent cold spell experienced in the territory; if so, what is the outcome of the investigation; if not, why not?
SECRETARY FOR HEALTH AND WELFARE: Mr President, hypothermia was not reported as the cause of death of any of the elderly people who died during the recent cold weather. Post mortems show that other underlying medical problems were the cause of death in these cases. The low temperatures may have contributed to exacerbating such medical problems.
The Government has reviewed the actions taken during this period to meet the needs of people vulnerable to such cold weather.
One of the most vulnerable groups were street-sleepers. In accordance with standing arrangements, the Home Affairs Department opened shelters for anybody who needed them. They were opened on a 24-hour basis and provided blankets, ground mats, mattresses, hot drinking water and hot meals. Staff also offered street sleepers transport to take them to the shelters. Social Welfare Department staff distributed blankets to street sleepers who were also given information regarding how to obtain further assistance if needed. All street sleepers have been offered alternative accommodation as a matter of policy. The Subventions and Lotteries Fund Advisory Committee is about to consider a request to start in this month an outreaching multi-disciplinary team to encourage elderly street sleepers to accept housing and reintegration into society.
The other main vulnerable group was identified as elderly persons living alone. This group is vulnerable at all times and especially so in cold weather. In the recent cold spell, Social Welfare Department staff at district level contacted voluntary agencies providing services to the elderly and all local government welfare offices to make a special effort to contact known elderly persons living alone to check that they were alright.
Various new initiatives are being taken or existing programmes speeded up to improve the care of elderly persons living alone, for example:
(a) the Social Welfare Department will take the lead to introduce measures to mobilize a higher level of community and volunteer support to develop a better social networking system to support the elderly and other vulnerable groups. It will build on the network of multi-service centres for the elderly and the experience already gained in various volunteer pilot programmes already in hand. The ongoing expansion of home help teams will also bring practical benefit to elderly people living alone.
(b) Steps are being taken to identify those single elderly persons and other at-risk recipients of Comprehensive Social Security Assistance (CSSA) who may not have a telephone to encourage and assist them to apply for one. CSSA grants are available to cover both the installation and recurrent costs of telephones for those in need. The cold weather highlighted how important it is for vulnerable groups to have easy access to telephones to call for help.
(c) Since 1990, the Housing Department has been fitting alarm bells in public housing units occupied by elderly persons living alone. The Department is now considering a system which would link such alarm devices to a central control system.
The review concluded that the immediate measures taken by the Government during the cold weather constituted an effective and practical response to an emergency situation. But there are always things that can be done better and lessons have been learnt. It is clear that it cannot be left to the Government alone to act in such circumstances. The family and the community as a whole have a vital role to play in showing care and concern at such times by checking on elderly relatives, neighbours and friends. In the final analysis, there are simply not enough professional social workers and others to knock on every door. The Government and non-governmental organizations can and do provide a comprehensive range of professional services but they will always rely, to a certain extent, on caring members of the community to act as referral agents to bring the vulnerable into contact with the professional advice and services which are available to help them.
Clearance of Cottage Areas
16. 腑瓣辆某拜現┎セЫ
(a) 現┎Τ璸购睲╊ヘ玡翠﹟キ┬跋
(b) 璝(a)兜氮﹚キ┬跋睲╊丁抖︙τ睲╊紇臫キ┬跋﹡チ盢眔︙贺Α竚の
(c) 璝(a)兜氮﹚現┎穦σ納﹚竚キ┬跋﹡チ环現郸
SECRETARY FOR HOUSING: Mr President, there are six cottage areas (CAs) in the territory, namely, Fo Tan, Tung Tau, Lai Chi Kok, Mount Davis, So Kon Po and Tiu Keng Leng. Clearance of Tiu Keng Leng CA to allow for the development of Tseung Kwan O new town, including major public housing projects, was announced in April 1995. Partial clearance of So Kon Po CA and Mount Davis CA was announced in April and July 1995 respectively for slope safety reasons. There is no plan to clear the remaining CAs.
It is the Govesnment's policy that no one will be rendered homeless as a result of government clearance operations. Eligible residents will be offered public rental housing, or given priority to buy Home Ownership Scheme flats, or allowed to join the Home Purchase Loan Scheme to buy flats in the private sector. Ineligible residents in need will be offered accommodation in temporary housing areas.
We will keep the need to clear the remaining CAs under review, taking into account also the availability of our rehousing resources.
Respiratory Diseases
17. 霉不瓣某拜現┎セЫ
(a) 翠┮眞璶㊣╰参痚痜︙
(b) セ翠眞贺㊣╰参痚痜τ计琌ら镣糤の
(c) Τ︙惫琁毙旧カチ︙箇ň摸痚痜
SECRETARY FOR HEALTH AND WELFARE: Mr President,
(a) The major respiratory diseases which have affected the people of Hong Kong in recent years are lung cancer, pneumonia and chronic obstructive pulmonary diseases including asthma. Tuberculosis has undergone a resurgence in many parts of the world in recent years and remains a threat.
(b) The death rate from the major respiratory diseases has remained relatively stable over the past three years.
(c) Cigarette smoking is a very significant health hazard and is a recognized cause of bronchitis, emphysema and other lung diseases as well as being implicated in a number of cancers and significant disease conditions. The Government has, since 1982, been taking active and increasingly stringent measures to combat smoking, including the banning of smoking in public places, the requirement to display health warnings and tar contents on cigarette packs, the restriction of tobacco advertisements in the electronic media and the establishment of non-smoking areas in restaurants. The Hospital Authority has also identified chronic lung diseases as one of the priority health areas targeted for concerted action. Public hospitals have taken the initiative in launching smoking reduction and cessation programmes to reduce the risk of cigarette smoking, particularly to those who are already suffering from respiratory diseases.
Turning to the other major preventable respiratory disease, that is, tuberculosis, the Government has in place a universal vaccination programme for preventing tuberculosis and a dedicated service for early detection, control and treatment of the disease. In addition, patient education on respiratory diseases is given through the Central Health Education Unit of the Department of Health, at government out-patient clinics, specialist out-patient clinics and patient resource centres of public hospitals. The setting up of the Health Care and Promotion Fund to further the promotion of a healthy lifestyle, including suitable nutrition and exercise, is also likely to benefit those prone to respiratory illnesses.
Smuggling Prohibited Articles into Prisons
18. ㏄辩睶┥某拜挪Τ厨旧胓毙竝戮敖笲笻窽珇秈菏夯ま癬闽猔現┎セЫ
(a) 筁胓毙拟盿笻窽珇秈菏夯τ砆胓毙竝祇瞷Τぶ
(b) 胓毙竝蹦ノ︙贺惫琁琩胓毙Τ秈︽瓃獶猭笆
(c) 璝祇瞷Τ闽秈︽瓃獶猭笆胓毙竝穦︙矪瞶の
(d) 胓毙竝穦蹦︙贺惫琁眏菏夯玂
SECRETARY FOR SECURITY: Mr President, the answer to the four parts in this question is as follows:
(a) In the past three years, there were six cases of Correctional Services Department (CSD) staff caught smuggling unauthorized articles into prisons.
(b) The CSD maintains a high degree of vigilance to prevent and to identify such smuggling activity. Detectors and prescribed search methods are used to check the belongings of every person, including staff, entering an institution. Training courses and simulation exercises are conducted to enhance the staff's skills in detecting smuggling activity. Prison staff who show signs of becoming "at risk" due to financial difficulties are interviewed and given necessary counselling. Inmates' cells are searched regularly, and if unauthorized articles are found, a thorough investigation will be carried out.
(c) Apart from internal investigation, the CSD refers all smuggling cases involving staff to the Independent Commission Against Corruption (ICAC) for follow-up action. Of the six cases, three have been convicted, one is awaiting trial and two are on bail pending further ICAC investigation.
(d) Security measures mentioned in (b) above are taken in each penal institution to prevent and to detect smuggling activity. Throughout the Department, a comprehensive intelligence gathering network is maintained to monitor possible smuggling activity. The Department also regularly reviews its measures and improves its training material in the light of the cases referred to the ICAC in order to prevent similar recurrences of smuggling. Besides strengthening security, it is also important to deter smuggling through education. Refresher courses are organized regularly to remind staff of the serious consequences of smuggling unauthorized articles into penal institutions.
Occupancy Rate of Hong Kong Industrial Technology Centre
19. 独綺笽某拜現┎セЫ
(a) ヘ玡翠穨мいみずㄑノ縩琌竒场璝礛Τぶそ近い璝ノ瞯︙
(b) ㄏノ赣いみΤぶ叫盢︽穨籔沟计だ摸膜の
(c) 琌Τ璸购砍材穨мいみ璝礛盢︙辅龟砏家穦耕瞷мいみ箇衡笆ノ蹿兜ぶ璝琌穦や籔╬祇甶坝砍材いみ
SECRETARY FOR TRADE AND INDUSTRY: Mr President,
(a) The Technology Centre is 96% leased out. This is broken down into 98% occupancy for regular tenants who pay market rents and form the majority of occupants and 85% for incubatees who pay discounted rents. At present, there is no waiting list for new occupants since the Centre is not yet full. Nevertheless, the Centre has received numerous enquiries from companies about taking up the remaining available space. However, since these companies have yet to submit formal applications and indicate their respective space requirements, it is too early to say how many of them will eventually be admitted and accommodated.
(b) There are a total of 33 tenants and 20 incubatees which are classified as follows:
Breakdown by sector
Regular tenants Incubatees
Software and systems 12 37% 6 30%
Microelectronics and components 4 12% 3 15%
Telecommunications 5 15% 3 15%
Multi-media and Networking 5 15% 8 40%
Others 7 21% - -
Total 33 100% 20 100%
Breakdown by number of employees
Regular tenants Incubatees
10 employees or less 9 27% 16 80%
11 - 30 17 52% 4 20%
31 - 50 3 9% - -
51 - 70 2 6% - -
71 - 90 2 6% - -
Total 33 100% 20 100%
(c) The Board of the Hong Kong Industrial Technology Centre Corporation has proposed the construction and management of a second technology centre. It comprises an eight-storey office building, with a gross floor area of about 32 500 sq m (compared to 21 850 sq m for the existing centre), to be built at an estimated cost of $520 million (at 1995 prices), by way of a direct capital injection from the Government to the Corporation. The proposal is being considered by the Administration.
BILL
First Reading of Bill
APPROPRIATION BILL 1996
Bill read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).
Second Reading of Bill
APPROPRIATION BILL 1996
THE FINANCIAL SECRETARY to move the Second Reading of: "A Bill to apply a sum not exceeding $157,157,323,000 to the service of the financial year ending on 31 March 1997."
He said: Mr President,
INTRODUCTION
I move that the Appropriation Bill 1996 be read a Second time.
2. This is a very proud, a very privileged moment for me. Proud because I am the first Financial Secretary who grew up here. Privileged because I am delivering this Budget to the first fully-elected Legislative Council in Hong Kong's history. The fact that I, like all the Members of this Council, am very much part of this community gives the Budget special meaning and gives all of us a special responsibility. I say this because Hong Kong is our community. It is our home. And its future is our future.
3. A Budget is not simply an accounting exercise. It is not just a routine report on the territory's economic and financial well-being. It is, with the Governor's policy address, one of the two set-piece occasions each year when we in the Government:
o account for our stewardship of Hong Kong's economic and social affairs;
o address the concerns of the community, which Members of this Council have articulated so forcefully; and
o discharge our duty of leadership by offering a clear vision of what the future holds for Hong Kong.
4. I shall have a lot more to say this afternoon about Hong Kong's future and about my vision of what can be achieved if the Government, this Council and the business leaders can go on working together in the best interests of the community we serve. I spoke of a duty of leadership. It is a duty which I and my colleagues in the Civil Service take very seriously. To put it simply, it is our duty to offer our community a clear description of what can be achieved and what we need to do to make our vision a reality.
5. My distinguished predecessor, Sir Hamish MACLEOD, made personal consultations with every Member of the Legislative Council a central feature of his budget preparations. In preparing my first Budget, I have continued this practice. The responsibility for the Budget is mine, of course, but the valuable contributions of Honourable Members have made my task a great deal easier. I am also grateful for the support and sheer hard work of my colleagues in the Civil Service in preparing my Budget.
6. But I have broken with Sir Hamish's approach in one respect. I want to make the Budget more accessible. I want to make it easier for the community, as well as for Members of this Council, to get at the facts, the assumptions and the policy proposals which it contains. So, besides producing the entire set of budget documents in both English and Chinese for the first time, I have adopted a very simple, three-part structure.
o In the first part, I shall look back at the trends and developments which have shaped our economy and our way of life and brought us the prosperity we enjoy today.
o In the second part, I will describe the current performance of the economy and look at the prospects for the year ahead.
o In the final part, I will describe how, in the next century, Hong Kong can achieve its full potential as a world-class service economy.
As a consequence, my revenue and expenditure proposals do not appear in a single section as in previous budgets. They are set out in the second and third parts. In another break with tradition, I will deliver the conclusion to my speech in Cantonese.
HONG KONG PAST
A Tradition of Success
7. The economic history of Hong Kong can be summed up very simply. Manufacturing formed the backbone of our economy for three decades from the 1950s. During these years, the "Made in Hong Kong" label came to mean high-class fashions instead of cheap textiles. This transformation became a symbol the world over of our determination to lay the foundations of the economic and social success we now enjoy. But, over the past 15 years, we have undergone a second revolution in the way we earn our living. By last year, 72% of our total workforce was employed in the services sector, and 83 % of our GDP came from services. Even if we exclude the public sector, services still account for an astonishing 73% of GDP. So swift has this change been that it has taken us policy-makers time to catch up with the new economic reality. Perhaps in a free-market economy, this was inevitable. Entrepreneurs and markets, and not Financial Secretaries, must lead economic change. I believe that the time has come to give the services sector the place it deserves in our economic policies.
8. Let us be clear about what we mean by a service economy. Quite simply, it means that we now earn our living by selling our skills, our creativity, our enterprise, our professionalism and our reputation for integrity. To put it another way, we have moved up market as an economy and as a community.
o We now have a well-educated and skilled workforce. Our recurrent spending on education has increased 61% in real terms in the past 10 years.
o We are now prosperous not only by the standards of our own past but prosperous by the standards of the developed world. Our per capita GDP has increased by 65% in real terms in the past 10 years.
Per capita GDP at current market prices
9. And we have put our prosperity to good use by investing in our social as well as our physical infrastructure. As a result, we have increased our recurrent spending on health, welfare and housing programmes by 117% in real terms in the past 10 years.
10. The results of these improvements are self-evident. For example,
o In the past 10 years, we have built about 400 000 new public housing units.
o Over the same period, the proportion of the relevant age group studying for degrees has risen from 4% to 18%.
o Since 1984, life expectancy at birth has increased by two full years. Our life expectancy rates are now among the longest in the world.
11. Hong Kong has much to be proud of. We have exercised self discipline, and we have made the investments that have brought us our success. But we should recognize that this success would not have been possible without three fundamental economic developments which took place outside Hong Kong.
o The first has been the success of the GATT in opening up world trade and keeping protectionism at bay. World trade has doubled every six years since 1969.
o The second has been the dramatic surge in China's growth. Thanks to its "open-door policies", China's real GDP has doubled every eight years since 1979. Our links with the Chinese economy have grown so rapidly and so extensively that we now play a vital part in the world's most dynamic economy.
o The third has been the take-off into sustained economic growth of our neighbours in Asia. Our trade with them has doubled every four years since 1966.
Real growth in exports of goods and services 1985-95
Later in my speech, I shall have more to say on our future prospects and how we must build on past achievements. We cannot rest on our laurels. Past success is no guarantee of future prosperity.
The Government's Contribution
12. Over the last 40 years, Hong Kong has developed its own way of managing its economic and social affairs. We have our own blend of enterprise and regulation, our own balance between the public and the private sectors, our own formula for individual liberty and social responsibility. I do not think it is going too far to say that there is a distinct Hong Kong model of economic and social development. We might describe this model most simply as a commitment to markets and enterprise but with a recognition that, for these to work fairly and effectively, the Government cannot be passive. The community wants vigour and inspiration from its government, not lethargy.
13. The Government's contribution has been:
o to provide the legal and regulatory infrastructure which underpins free and fair markets;
o to encourage enterprise through small government and low, stable and predictable taxation; and
o to manage our public finances to meet the community's priorities for a modern infrastructure, better homes, health care, better schools and social welfare.
1995 Performance
14. There is no better testimony to our success of the Hong Kong model than the simple fact that we have enjoyed unbroken economic growth since we began to compile GDP figures in 1961. Of course, growth in some years has been faster than in others. We achieved a real GDP growth of 4.6% last year. This outcome, though lower than we had originally hoped, was still robust. Growth was dampened by a sharp slowdown in domestic consumption and reduced private sector building activities as the property market consolidated. We experienced, as in the past, a cyclical adjustment following a period of particular buoyancy in these two areas.
15. Nevertheless, total exports of goods grew by 12% in real terms. Imports of goods, however, grew more rapidly, by 14% in real terms. The visible trade deficit thus widened to 10% of the value of imports, somewhat above the average for the past decade. This increased deficit reflected in part a 15% increase in retained imports of raw materials for production and infrastructure construction, and in part to an impressive 20% growth of investment in machinery and equipment. We should draw considerable encouragement from this fact. Our balance of trade has deteriorated principally because we have been investing in the expansion of our productive capacity. In due course, this will show itself in increased output, a growth in exports and higher GDP. We should also draw encouragement from an 11% growth in real terms in our exports of services, and from the fact that the substantial invisible trade surplus largely offset our visible trade deficit.
Inflation
16. The average rate for inflation during 1995, as measured by CPI(A), was 8.7%. Underlying this was a sharp fall, from 10.1% in January to 6.6% at the end of the year. The easing of inflation owed a great deal to the way in which the US dollar gained strength in the latter part of the year. Also contributing were more stable world commodity prices, as well as a significant moderation in China's inflation. In addition, locally-generated inflationary pressures eased. Specifically, rents and labour costs moderated, while the prices of consumer goods softened.
Consumer Price Index (A)
The Labour Market
17. Last year, we experienced an uncomfortable rise in the rate of unemployment. The increase in the number of people looking for jobs was caused not so much by the lower than expected rate of GDP growth, but was largely a consequence of changes in the labour supply situation.
o The total supply of labour increased by over 3% in each of the last two years. More emigrants returned from overseas and more immigrants arrived from China. Also, there has been a larger proportion of women entering the workforce.
o Total employment had also increased healthily in 1995. But at 2%, the rise was not sufficient to keep pace with the additional labour supply.
o Consequently, the unemployment rate rose to 3.5% at the end of the year.
Employment and labour supply 1991-95
18. We cannot be complacent about the employment situation, low though our rate is by international standards. In the latter part of the year, the private sector was still reporting 50 000 vacancies. Thus, the problem seems to be less a lack of jobs than a mismatch between the skills on offer by the unemployed and the skills required by potential employers. I shall have more to say on this mismatch and how we can overcome it later in my speech.
The Residential Property Market
19. The residential property market continued to consolidate during 1995. I now believe that, following the successful implementation of the measures devised by the 1994 Task Force, the property market has stabilized. By the end of the year, the average prices for residential flats were 24% lower than the peak levels reached in the early part of 1994. Although prices were some 20% above the levels seen at the end of 1992, they were still lower in real terms than three years earlier. Thus, flats have become generally more affordable to home-buyers, and speculation has subsided. The ground has been laid for the healthy development of the market in the future.
Residential property prices 1991-95
Financial Markets
20. Our financial markets performed well in 1995.
o The stock market was the best performing in the region, with a 23% increase in the Hang Seng Index for the year.
Hang Seng Index 1995
o The futures market recorded over five million contracts for the year, an all-time high, although this was a year of reverses for overseas futures markets generally.
o The banking sector saw solid gains. Total deposits and loans both rose by around 14%. The Hong Kong dollar debt market increased by 29% over the year to reach $197 billion, an indication of its impressive liquidity.
Outstanding amount of HK$ debt issues
21. Last year was also important because of the further reassurance of the resilience of our financial institutions it offered. I refer in particular to the linked exchange rate. The fall-out from the Mexican currency crisis in early 1995 affected a number of Asian currencies. Hong Kong was not immune from the turbulence. The Hong Kong Monetary Authority handled these pressures decisively and demonstrated the effectiveness of its contingency measures to defend the linked rate. During the year, the Monetary Authority took further steps to reinforce the stability of our financial institutions. It has strengthened ties with other regional central banks. Arrangements are now in place to exchange information with them on currency speculation, as well as for formal repurchase agreements to increase the liquidity of each parties' official reserves. The lessons of last year should be very clear. Our commitment to the linked exchange rate at its current parity is absolute. We will not allow speculators to undermine the stability of our financial system. We have both the expertise and the resources that we need to defeat them.
The Exchange Fund
22. As Members know, the Administration is committed to openness and transparency in the operations of the Exchange Fund. Last year, for example, we increased the frequency with which we publish information about the Fund. We are now doing so quarterly. I am happy to take this opportunity to inform Members that the underlying foreign exchange assets in the Exchange Fund rose again in the last quarter of 1995. They now stand at US$57.2 billion. This is 12% higher than the corresponding total for the year before. These are impressive figures indeed.
The 1995-96 Outturn
23. I will complete my review by providing Members with details of our public finances for the financial year 1995-96. We are now forecasting a deficit for the current year of $2.5 billion. This is virtually the same as the deficit we originally estimated. In overall terms, this outcome has arisen because a reduction in revenue of $8.2 billion has been offset by an underspending of $8.3 billion. However, the original estimates for both revenue and expenditure included the Post Office and the Office of the Telecommunications Authority. During the year, these became trading funds. As a result, we have to account for their revenues and expenditures in the books of the new Trading Funds rather than, as previously, in the General Revenue Account. After eliminating the effect of this accounting change, revenue for the year is $6.4 billion less than originally estimated, while underspending amounts to $6.6 billion.
Expenditure
24. On the expenditure side, there are two main reasons for the underspending.
o First, there has been underspending of $4.5 billion from the Capital Works Reserve Fund. This is a result of reduced expenditure on land acquisition of $1.5 billion and a slippage in capital works of $3.0 billion.
o Second, there has also been underspending of $1.8 billion from the Loan Fund. This arises as a result of the payment of loans to the Housing Society being made in March 1995 rather than in the current financial year as anticipated when preparing the original estimates.
25. The underspending of $4.5 billion in the Capital Works Reserve Fund amounts to 12% of the original estimate. This is the third year in which underspending has been reduced from the high levels of over 30% experienced in both 1991-92 and 1992-93.
Revenue
26. On the revenue side, we have seen a shortfall in both capital and recurrent revenues as a result of two main factors:
o First, land revenue. During the year, land prices have generally been in line with our expectations. Indeed, the total land premia collected in the year will exceed the original estimate. However, the premia for several sites will not be collected until the final quarter of the current financial year. Because of the sharing arrangements with the future Hong Kong Special Administrative Region Government, the Administration will not receive the proceeds of these land premia collected in the final quarter until the next financial year. As a result, our actual receipts of land revenue in 1995-96 will be $3.0 billion less than the original forecast.
o Second, recurrent receipts are lower than originally forecast, reflecting the slower pace of economic growth in 1995. The principal shortfalls in receipts are those from motor vehicle first registration tax of $1.5 billion, duties of $0.5 billion and internal revenue of $0.9 billion.
HONG KONG PRESENT
1996-97 Prospects
27. I now turn to the second part of my speech in which I shall review our current situation and the prospects for the year ahead.
1996 Forecasts
28. For 1996, I forecast that GDP will grow by 5% in real terms. This represents an improved performance from last year, to a level in line with the medium-term trend. I also expect inflation, as measured by the CPI(A), to ease appreciably further, to an annual rate of 7.5%. The moderating trend in both domestically-generated and imported inflation that has emerged in the latter part of last year is expected to carry over into the current year. The level of unemployment will continue to depend primarily on the labour supply. On current indications, it seems unlikely that the unemployment rate will revert quickly to the very low levels to which we are more accustomed. However, I believe that the better economic prospects that I am forecasting will bring a gradual improvement.
The Trading Environment
29. The general external environment for our trade looks favourable. Economic growth in our major overseas markets, including the United States, Europe and Japan, is generally improving. The recent easing in interest rates is helpful in this respect. In the Asia-Pacific region, growth continues to be dynamic, and trade liberalization is gathering momentum, though one cloud on the horizon remains the annual threat to China's most-favoured-nation status in the United States market. The APEC initiatives on trade liberalization are now winning wider support. A key objective of China's Ninth Five-Year Plan is to ensure steady growth and to keep inflation in check. This should provide a solid foundation for the continuing healthy development of our trade and other economic links with China.
30. Overall, I forecast our total exports of goods to grow this year by 10% in real terms. I expect a growth of only 0.5% in domestic exports but a 12% growth in re-exports. For our exports of services, I forecast continued robust growth also at 10% in real terms. Overall, the surplus on invisible trade would be enough to offset the deficit on visible trade.
The Domestic Economy
31. Domestically, the business prospects also look favourable. Wages and salaries are rising more moderately, and property prices and rentals are unlikely to rebound sharply. Together with the recent substantial investment in machinery and equipment, all this promises well for holding down our costs of doing business and enhancing our competitiveness. On domestic consumption, my forecast is for an accelerated growth in consumer spending to 4% in real terms for 1996 as a whole, with probably a stronger pick-up in the second half of the year. Consumer sentiment is expected to turn better following the rebound in both the stock and the property markets. This will be helped further by the recent easing in interest rates. On domestic investment, construction work on our Airport Core Programme will peak this year, while private sector building activity is expected to bottom out. On the other hand, expenditure on machinery and equipment is likely to rise at a more moderate pace after two consecutive years of substantial growth. I forecast the growth in our fixed asset investment to be slightly less rapid than last year, at around 6% in real terms.
Social Concerns
32. Overall then, our immediate economic prospects remain good. But I cannot ignore what has been called the "feel bad" factor: the concerns about unemployment and persistent inflation and the cautious attitude on consumption, even though the situation has improved somewhat. The economic statistics of higher GDP, lower inflation, stabilized unemployment rate, rising exports and increased investment are of little comfort to those who have lost their jobs or to businesses under pressure as consumers hold back spending. In his policy address last October, the Governor announced a series of measures aimed at tackling directly the problems of unemployment and low incomes. Let me assure Members of this Council and the community that this Budget makes provision for funding all the measures announced by the Governor. Where possible, I shall be proposing that we go even further in improving and expanding these programmes.
Getting People Back to Work
33. The first priority is to get the unemployed back to work. As I explained earlier, a major challenge is matching skills to jobs. In 1992, we set up an Employees Retraining Scheme to provide retraining for displaced workers. To date, the Employees Retraining Board has provided over 100 000 places on its courses, teaching workers new skills or helping them to upgrade their existing skills. In 1992, we made a grant of $300 million to the Board as its reserve. But its primary source of income is the levy imposed on employers of imported workers admitted under the various importation of labour schemes. The freeze since April 1995 on the allocation of quotas under the General Importation of Labour Scheme has reduced the income of the Board from its levy. Consequently, the Board has begun to draw down the $300 million reserve, which now stands at $186 million. The General Scheme has been replaced by the Supplementary Labour Scheme. This provides for the entry of a limited number of imported workers, which will further reduce the income available from the levy. I propose to inject another $300 million into the Board's reserves to ensure that it has the financial resources to expand its programmes.
34. But retraining is only part of the solution. When people have skills to offer which the market needs, workers have to be put in touch with potential employers. This is why our Job Matching Programme is so crucial. We have now extended the scope of this Scheme to cover all job-seekers. Its success rate has been increasing steadily, and has now reached 71%.
Safety Net
35. The Governor also presented the interim results of a review of the Comprehensive Social Security Assistance (CSSA) Scheme during his address to this Council last October. Members will recall that, based on the findings from the first six-months data from the Household Expenditure Survey, he announced a package of major improvements to certain CSSA standard rates. The higher rates will come into force on 1 April, and they will cost about $300 million.
36. In announcing these increases, the Governor pledged that we would seek this Council's endorsement for any additional benefits recommended on completion of the CSSA review. We have now completed that review and identified areas in which further improvements in CSSA are necessary. This is not the place to spell out the detailed results of the review. The Secretary for Health and Welfare, together with the Director of Social Welfare, will be doing so on Friday. But I feel I should give Members this afternoon a brief summary of the main benefits we will provide, including our additional improvements to the CSSA Scheme which will cost an extra $200 million a year on top of the amount pledged by the Governor.
o For adults not expected to work (for example, those in ill-health, single parents or family carers), taking into account the increases announced by the Governor, the current monthly standard rate will be increased by $600. This will be adjusted for inflation, as approved by Members. As a result, the new rate will be $1,935 a month for a single person and $1,760 for a family member from 1 April. These new rates represent real increases of between 50% and 57%.
o For adults expected to work but currently without jobs, taking into account the increase announced by the Governor, the current monthly standard rate will be increased by $300. Together with the inflation adjustment approved by Members, the new rate will be $1,615 a month for a single person and $1,440 for a family member from 1 April. These new rates represent real increases of between 25% and 29%.
o For adults with a 50% disability living in a family, the current monthly standard rate will be increased by $140. Together with the inflation adjustment approved by Members, the new rate will be $1,760 a month. This new rate represents a real increase of 9%.
37. The standard rates are only one aspect of the review exercise. A number of other improvements are being recommended. For example,
o Higher rent allowances will be available to CSSA recipients living in private housing.
o A new special grant of $320 a year will be payable to the elderly to reimburse their spending on social and recreational activities. They will also be paid a special allowance of $200 at Chinese New Year.
o The current rules will be revised to permit the elderly to receive CSSA standard rates and long-term supplements if they retire to China.
38. Taking into account the proposed increases in standard rates and the special grants payable to those in need (such as rents, school expenses of children, water charges, and so on), the Director of Social Welfare estimates that, from 1 April 1996,
o a singleton household will on average receive $2,940 a month; and
o a four-person household will on average receive $10,270 a month.
Estimated average monthly CSSA Payment 1996-97
As I have said, the full details of the improvements will be announced on Friday. My purpose today has been to report progress on the initiatives announced by the Governor last October.
Care for the Elderly
39. We have been reminded in recent weeks that the elderly are particularly vulnerable members of our community. It is for this reason that we are providing substantial resources to meet their needs. For example,
o This year, we have provided $9 billion both on financial assistance and on health and welfare services for the elderly. This represents an increase of 50% in real terms over 1992.
o Next year, expenditure on welfare services for the elderly will increase by 17%.
We are putting these resources to good use.
o By the end of next year, we will be subventing 16 455 residential care places, more than three times as many as 10 years ago.
o We will provide an additional 43 social centres for the elderly, six multi-service centres and three day care centres.
o We have already provided four elderly health centres and three more will come on stream by 1997.
40. Concern expressed over the welfare of elderly persons in the recent cold spell has focused attention on the issue of outreaching to elderly persons living alone. In emergency situations like this, the Social Welfare Department mobilizes a large number of professional staff to reach out, for example, those serving in Family Service Centres. In normal times, in addition to the two elderly outreach teams in operation, staff of the Home Help service are in regular contact with elderly persons since 80% of their clients are elderly. Through these home visits, elderly persons with special needs are identified and referred by home helpers to other welfare services as necessary. We have doubled the number of these teams over the past six years. Next year, we will increase the total number to 126 team, enabling us to serve about 12 000 elderly people. We are currently also using volunteers to reach out to elderly persons at risk through experimental programmes for older volunteers and other volunteer workers. This month, on a pilot basis, we will establish a multi-disciplinary team to provide intensive outreach services to elderly street sleepers.
41. As a new initiative, we will provide financial support for selected multi-service centres for the elderly to organize new services to reach out to elderly people at risk. The Director of Social Welfare is now examining how best to take this forward through voluntary agencies who will be encouraged to make full use of volunteers to supplement the efforts of professional social workers.
42. Finally, and as a direct result of our experience of the recent cold spell, the Director of Social Welfare is looking at ways to speed up the provision of special grants for such items as telephones for elderly CSSA recipients. In addition, we shall provide the resources needed to improve the facilities at temporary shelters operated by the Home Affairs Department.
43. Our programmes have been guided by a clear-sighted strategy. This is based on the landmark report in 1994 by the Working Group on Care for the Elderly chaired by the Honourable Mrs Elizabeth WONG when she was Secretary for Health and Welfare. The Working Group made a total of 71 recommendations. We have funded, and are implementing, every single one of these recommendations. But we cannot afford to stand still when it comes to taking care of the elderly members of our community. Next month, we will launch an important follow-up study into the needs of the elderly. I want to make it plain to Honourable Members today that our commitment to providing resources for the services our elderly need will continue. Caring for the elderly is, and will remain, a major priority.
44. After this review of our initiatives on unemployment, support for those with low incomes and help for the elderly, I would like to summarize our plans for expanding our other social service programmes in the current year.
o There will be further improvements in our education programmes, on which we propose to spend $34.5 billion in recurrent expenditure.
o There will be major improvements in our medical and health services, on which we propose to spend over $22.6 billion in recurrent expenditure.
o There will be major improvements to our social welfare programmes, on which we propose to spend over $16.5 billion in recurrent expenditure. This will represent an increase of 14.7% in real terms.
45. I want to make it absolutely plain to this Council and the community that we are in the fortunate position of being able to make all these improvements to our social welfare, health and educational programmes without breaching our budgetary guidelines. Indeed, if there had been any danger of breaking our guidelines because of these improvements, we would not have made them. The new wealth generated by our robust economic performance will fully fund all these measures. We continue, I can assure Honourable Members, to live well within our means, even after responding to the community's aspirations for improved social services.
Expenditure Estimates 1996-97
46. When account is taken of the additional spending initiatives which I have just announced, and others which I will detail shortly, I estimate that, in 1996-97, government expenditure (excluding payments from the Capital Investment Fund) will total $183.7 billion. This is an increase of $22.1 billion over the revised estimate for 1995-96. This increase is comfortably within the level of expenditure permitted under our expenditure guideline, that is, that expenditure, over time, should grow at a rate no faster than the economy. Appendix A to the printed version of my speech demonstrates this clearly.
Real growth in government expenditure vs real growth in GDP
Revenue Proposals
General Principles
47. I turn now to my revenue proposals. I will start by restating the principles which are the foundations of the management of our public revenue. Members are fully aware of them and I call them the "seven heavenly virtues". We must:
o continue to retain a low, simple and predictable tax regime;
o raise sufficient revenue to meet known spending commitments;
o maintain a rigorous "user pays" system for setting fees and charges so as to keep tax rates low;
o keep adequate fiscal reserves to provide a cushion against future uncertainties;
o combat tax avoidance and evasion;
o provide concessions where most needed; and, finally,
o minimize the inflationary impact.
The Government has not devised these principles in isolation. I believe that they represent a community consensus. They have served us well in the past, and I am convinced that they must remain our guide for the future. These are the principles upon which I have framed my revenue proposals in this year's Budget.
Living within Our Means
48. From time to time, there have been calls for the Government to implement bold revenue measures in order to "stimulate the economy", to reduce inflation and to cut unemployment. I have no doubt that the motives of those making such suggestions are genuine, and we share their concerns. But do they make practical sense in Hong Kong's circumstances? Total public spending as a proportion of GDP is 18%. Government spending itself is only about 14% of GDP. In consequence, we have been able to maintain low taxes.
49. With the standard rate of salaries tax at 15% and corporate profits tax at 16.5%, our tax rates are among the lowest of any advanced economy in the world. Together they provide about 40% of our total revenue. As a result, the Government's ability to directly influence the overall level of economic activity through fiscal means is very limited. In order to achieve any appreciable impact on GDP, taxes would have to be cut very substantially indeed. For example, to engineer an increase of one percentage point in GDP, we would have to slash taxes by over 10 percentage points, throwing the Budget and our financial guidelines into serious disarray. This is simply unrealistic, especially considering there is no guarantee that it would work and no guarantee that the money released would not go straight into savings instead of into spending. We do better far, far better in the long run to stick with our tried and tested formula of living within our means and keeping taxes low and predictable. We do best of all by maintaining our commitment to free markets and minimal government interference.
Fees and Charges
50. I mentioned earlier the need to maintain a rigorous "user pays" principle for setting government fees and charges. Our policy on this issue is simple, practical and, I believe, fair. Where there are overwhelming social considerations, we subsidize heavily, providing services free or at a tiny fraction of their cost. This is the basis on which we provide hospital services, education and public housing. But for other services which the Government provides, where there is no overriding social need, we must maintain the principle of user pays and full cost recovery. Those who use these services, often for commercial purposes, should pay the full cost. I can see no case for taxpayers subsidizing such services. The "user pays" principle is an integral part of our system of public finances. It is part of the balance we have to strike if we are to go on providing heavily-subsidized services while, at the same time, keeping taxes low. Short-term gestures made at the taxpayers' expense would only jeopardize the fundamentals of our public finances.
The Reserves
51. There have also been calls for us to dip into our reserves. The appropriate level of reserves over the long run can be a matter of debate. But let me state unequivocally. This is not the time, with all its inherent uncertainties, to reduce the cushion of healthy reserves that Hong Kong at present enjoys. Our reserves underpin the soundness of our financial system and must be maintained. Following a recent visit by the International Monetary Fund, its report wholeheartedly endorsed our commitment to maintaining Hong Kong's long-established fiscal policies. Indeed they emphasized, and I use their words, the need to preserve the reserves for "torrential downpours not the mild showers" that Hong Kong is currently experiencing.
Areas of No Change
52. Let me turn next to my specific revenue proposals for the coming year. I shall start with those areas where I do not propose to make changes at present.
Tax Enforcement
53. On tax enforcement, we have recently introduced legislation to counter the use of service companies to avoid or significantly reduce tax liability. We have also legislated to specify the minimum records which all businesses must keep for taxation purposes. I am confident that the new legislation is achieving its aims, and I do not propose any further measures for the time being.
54. Over the past three years, the Inland Revenue Department's investigation and field audit staff have tackled some 3 700 cases and collected about $3 billion in back taxes and penalties. In the coming year, we will step up our efforts in this area by establishing an additional field audit team, increasing the total to nine.
Source Concept
55. Some tax experts have proposed that I should introduce legislation to clarify the territorial source concept which underlies our tax system. In brief, this concept means that only those profits which originate in Hong Kong are liable to tax here. I have considered the arguments very carefully. I have concluded that legislation on this subject is unnecessary and would not even be helpful. Where further clarification is necessary, I believe we should rely on administrative measures, such as Practice Notes issued by the Commissioner of Inland Revenue.
Tax Relief for Housing-Related Expenditure
56. During the Budget consultations, some Members asked me to consider introducing an allowance for expenditure on mortgage interest or rental payments. Some others have suggested that we should at least provide concessions to first-time home buyers. I share their enthusiasm for encouraging home ownership. Indeed, the Government already does a great deal to provide decent homes for Hong Kong people.
57. My colleagues and I have considered these ideas very carefully. The total cost over five years of the various suggestions made by Members on this could be as high as $17.5 billion. This is a significant sum. Also, there would be serious difficulties in defining first-time home buyers without creating the potential for widespread abuse. I believe we should continue to invest in our existing housing programmes in order to provide direct assistance to those genuinely in need. Thus with great regret, I cannot agree to provide a concession of such a nature. However, I will later discuss one concession to further alleviate the burden on home buyers, one which I hope Members will agree is worthwhile and affordable.
Profits Tax
58. I do not propose to make any change this year in the level of corporate profits tax. Comparisons with other countries in the region continue to support my view that our level of profits tax is already very low. I note, too, that a recent survey of senior executives in 16 industries found that 93% of them are happy with our current tax arrangements. In any case, the cost to the revenue of reducing the rate of profits tax would be substantial. A one percentage point reduction would mean $1.7 billion of revenue forgone in 1996-97 and over $11 billion up to 1999-2000. Nor do I consider that we should provide further tax concessions to encourage expenditure on research and development. Expenditure on scientific research is fully deductible. As Members will hear later, the Government can do more to stimulate research and development but the tax system would be the wrong vehicle.
59. Although I have said that I do not propose any changes to the rate of profits tax, I accept that other changes in the taxation regime for businesses are justified. I will be discussing these later when I come to talk about how we can improve the business environment to encourage future growth and development.
Depreciation Allowances
60. Last year, we asked the Board of Inland Revenue to review the classification of items that fall into the existing three categories for an annual depreciation allowance. The Board has largely completed its review. It has concluded that, on the basis of the estimated useful life of plant and machinery, the present classification is over-generous and should be changed for some items. The result would be to reduce the annual allowance for these items. I am grateful for the work of the Board. However, I accept that the change could affect investment in plant and machinery, in particular in the manufacturing sector. In consequence, I propose to ask the Board to examine how the rationalization of the classification should best be implemented in order to ameliorate the impact on investment in plant and machinery. Any changes to be introduced as a result will be subject to approval by Members of this Council.
Stamp Duty on Stock Transfers
61. We reduced the stamp duty on stock transfers for three consecutive years from 1991 to 1993, from 0.6% to 0.3% for a complete transaction, where it stands now. In practice, the overall cost of stock transfers in the local market is largely the brokerage cost. This is not high compared with other markets in the region, and our market remains competitive. I do not propose to change the stamp duty on stock transfers for the time being. But I am prepared to review the issue next year if there are initiatives from the securities industry to reduce the brokerage cost in order to make our market even more competitive.
Rates
62. Rates are significant as a relatively progressive tax and a stable source of revenue. It is important that we should go on adjusting the rates charged to reflect the changing rental values of different types of properties and in different locations. We will conduct our routine three-year rates revaluation this year, with any changes coming into effect on 1 April 1997. I will also consider if it is necessary to introduce a suitable rates relief scheme to cushion the effect of the revaluation on those experiencing large increases in rateable values.
63. It is far better to make regular adjustments in the rates than to introduce substantial increases at less frequent intervals. In the concluding speech to the 1994-95 Budget debate, my predecessor said that we would look at the option of indexing rateable values between revaluation years, so as to soften the impact of any large increase immediately following a general revaluation. We have examined this issue. I have concluded that a better option might be to consider conducting a revaluation on an annual basis. I am seriously considering the feasibility of conducting annual revaluations after the completion of the forthcoming revaluation exercise.
Alcohol Duty
64. We introduced a simple ad valorem duty system on alcoholic beverages in April 1994. The new system has benefited ordinary consumers through the effects of greater competition, especially at the lower end of the market. There was a drop in duty revenue immediately after the introduction of the new system, as most products enjoyed a duty reduction. But I note that the situation has changed, and duty revenue from alcoholic beverages has gradually picked up. I do not propose any change to the duty system.
Tax and Duty Increases
65. Having dealt with the revenue items where I do not intend to make any changes this year, I now turn to a limited number of areas on the revenue side where I believe modest increases in taxes and duties are justified for inflation and other reasons.
Tobacco Duty
66. The anti-cigarette smuggling task force established in the Customs and Excise Department in April 1994 has proved to be extremely effective in tackling the problem of cigarette smuggling. There has been a substantial increase in seizures of contraband cigarettes, and the black market price of cigarettes has continued to increase. These are sure signs that we are hurting the smugglers at current rates of duty. I consider it appropriate that we should adjust the duty rate of tobacco broadly in line with the rate of inflation. This will preserve the deterrent effect on smoking habits whilst not providing a further incentive for smuggling. I propose to increase tobacco duty by 9%.
Fuel Duty
67. There has been an increase in the smuggling and illegal use of diesel oil. We have provided resources to the Customs and Excise Department to set up additional investigation and enforcement teams in 1996-97 to tackle the problem. The situation should improve, and I consider it appropriate to increase the duty on petrol and other hydrocarbon oils by an amount broadly in line with the rate of inflation. I propose to increase fuel duty by 9%.
Bets and Sweeps Tax
68. There has been no increase in betting tax since 1992. I consider that it is now appropriate to raise the tax from 11.5% to 12% for standard bets and 17.5% to 18% for exotic bets. This is a modest increase, and I have asked the Royal Hong Kong Jockey Club to absorb the cost of the increase by reducing its betting commission. There will be no reduction in the prize money pool, so this should not give any encouragement to the activities of illegal bookmakers. The increase should take effect from the beginning of the next racing season in September.
Air Passenger Departure Tax
69. We reduced the air passenger departure tax from $150 to $50 in the 1994-95 Budget. Some Members in this Council felt that the reduction was excessive and unjustified, and criticized us. With hindsight, these criticisms had some validity. (Laughter) The reduction obviously affected revenue. But it did not achieve the intended purpose of encouraging transit passengers to leave the transit halls so as to enhance the business of our retail trade and alleviate congestion at the airport. Statistics also show that an increase or a decrease in the tax has absolutely no effect on passenger throughput. The current level of the tax at $50 is well below the average for the region. I propose to increase the tax to $100, which was the level when the tax was first introduced in 1983. This will bring the tax more in line with the level charged by other places in the region. I am aware of the concerns that the tourism industry might have at this point. Let me say now that it is not my intention to ignore their interests in my Budget, and I shall give details later of measures that the tourist industry should welcome.
70. I must emphasize that the proposed increases in tobacco and fuel duties, betting and air passenger departure taxes are essential in order to allow us to fund the various revenue concessions that I propose to introduce in this Budget. They are an integral part of my Budget package.
Tax Concessions
71. Having set out the areas where I do not propose to make changes, and the very modest tax and duty increases I believe are necessary, I now turn to a number of tax concessions which I believe are justified.
Salaries Tax
72. I start clearly with salaries tax. The last three Budgets have already provided substantial benefits to salaries taxpayers. As a result,
o There has been a real increase of 34% in both the basic and the married person's allowances.
o The proportion of the total workforce with no liability to pay salaries tax has increased from 46% to 60%.
o The proportion of standard rate taxpayers has decreased from 6% to 2% of the workforce.
o The average effective rate of tax paid by salaries taxpayers has decreased from 9% to 8%.
73. These have been substantial improvements. But I share Members' views that, whenever possible, we should give priority to salaries taxpayers when it comes to tax concessions. I say this because they are the largest single group of taxpayers and they, including the Financial Secretary, are by no means the wealthiest sector of the community. (Laughter) I shall be proposing a wide range of concessions on personal taxation.
o I propose to increase the basic allowance from $79,000 to $90,000 and the married person's allowance from $158,000 to $180,000. The allowances will rise by 14%, well above the rate of inflation in 1995.
o I propose to increase the allowance for the first and second child by 11%, from $22,000 to $24,500.
o I propose to increase the allowance for the third to ninth child by 14%, from $11,000 to $12,500.
o I propose to increase the basic and the additional allowance for dependent parents and grandparents from $22,000 and $6,000 by 11% and 17%, to $24,500 and $7,000 respectively.
o I propose to increase the single parent allowance by 13%, from $40,000 to $45,000.
o I propose to increase the disabled dependant allowance by 36%, from $11,000 to $15,000.
74. I have two further concessions.
o I propose to introduce a new allowance of $24,500 for a taxpayer maintaining a brother or sister for whom no child allowance is being claimed, with an additional allowance of $15,000 where the brother or sister is disabled. This concession will strengthen our family values.
o I also want to respond to Members' calls for recognition of the changing nature of the economy and the need to upgrade skill levels. I propose to introduce a specific deduction to allow taxpayers to claim as a deductible item fees for training courses attended at approved institutions, up to a maximum of $12,000 a year.
75. Taken together these improvements will reduce the tax burden for some 95% of salaries taxpayers. What will these proposed concessions mean in practice? Let me give you a few examples.
o A single person with a monthly income of $15,000, with two dependent parents living with him and a dependent brother or sister still receiving full-time education, will have his tax bill cut by over 98%. He will pay less than $5 a month in tax.
o The salaries tax bill for a single-parent family earning $16,000 a month with one child and a dependent parent living together will be reduced by 97% to less than $2 a month.
o The typical "sandwich-class" family of four with monthly earnings of $25,000 will have its tax bill cut by some 43%. It will pay $556 only a month in tax.
76. I estimate that these concessions will cost $1.9 billion in 1996-97 and $12.4 billion up to 1999-2000. Full details of the concessions are set out in the supplement to the printed version of this speech, together with further examples of their effects on different categories of taxpayers.
Estate Duty
77. Last year, we revised the rates of estate duty to offset the effect of inflation. This year, I propose to further increase the level below which no duty is payable from $6 million to $6.5 million. Above that level, I propose that estate duty be payable at 6% on estates between $6.5 million and $8 million; 12% for estates between $8 million and $9.5 million; and 18% on estates over $9.5 million. The width of the two bands will thus be increased from $1 million to $1.5 million. The cost of this proposal will be some $50 million in 1996-97 and $240 million up to 1999-2000.
Stamp Duty on Property Transactions
78. Many Members have suggested that I should make various changes to reduce the impact of stamp duty on property transactions in order to benefit home-buyers. I have examined these ideas with some sympathy but concluded that they are not feasible. It is more practical to focus on reviewing the structure of stamp duty rates in order to relieve the burden on the home-buyer. Accordingly, I propose to reduce the impact of stamp duty in a manner which will directly benefit buyers of lower and medium-value flats with property values of up to $3.5 million. This will be of particular assistance to buyers of Home Ownership Flats and Sandwich Class Housing Scheme properties. Let me explain the changes I propose, which will bring relief to home-buyers, particularly at the lower to middle end of the market.
o The limit below which only the nominal fee of $100 is charged will be raised from $500,000 to $750,000.
o The rate of 0.75% will apply to properties with a value of $750,000 to $1.5 million.
o The rate of 1.5% will apply to properties with a value of $1.5 million to $2.5 million.
o The rate of 2% will apply to properties with a value of $2.5 million to $3.5 million.
o The threshold at which the maximum rate of 2.75% begins to apply will be raised from $3 million to $3.5 million.
Stamp duty on selected properties before/after concessions
79. As a result of the proposed adjustments, the stamp duty paid on a typical $1.5 million flat under a Home Ownership Scheme will be halved, from $22,500 to $11,250. I estimate that about 54 000 property transactions will benefit from the proposal each year. These concessions will cost $550 million in 1996-97 and $2.7 billion up to 1999-2000. Details of the new schedule of stamp duty rates are set out in the supplement to the printed version of this speech.
Motor Vehicle First Registration Tax
80. There are now over 40 000 private vehicles which are ten or more years old. Most of these vehicles run on leaded fuel and are not fitted with catalytic converters. They are a significant source of pollution. I propose to introduce a scheme to encourage owners to scrap their old vehicles. If the owner of a private vehicle of 10 or more years old decides to scrap his old car and replace it with a new one, he may enjoy a reduction in First Registration Tax of 20% of the tax payable or $30,000 whichever is the lower amount. This initiative is designed to help to improve air quality by reducing the number of old vehicles without increasing the total vehicle fleet. We have devised a number of measures to safeguard against abuse of the scheme. The scheme will only apply to private vehicles. Commercial vehicles seldom have an economic life exceeding 10 years, and, in any case, they pay a much lower First Registration Tax. We will review the effect of the proposed scheme after 12 months.
81. While still on vehicles, it has become apparent that some motor vehicle dealers have been manipulating their first registration tax liability. They artificially suppress the retail price of the standard motor vehicle and over-declare the value of tax exempted items like vehicle accessories and distributor's warranties. I intend to stop this abuse and ensure that all vehicle dealers can operate on a level playing field. I will introduce an amendment Bill into this Council within this Legislative Session so that we can set a reasonable ceiling value for these tax exempted items. The excess of the value of these items over the ceiling value will be subject to First Registration Tax.
Refurbishment Allowance for Hotels
82. Finally, I propose to adjust the taxation of refurbishment expenditure incurred by hotels. At present, such expenditure is subject to a commercial rebuilding allowance of just 2%, meaning that it can only be written-off over 50 years. I recognize that, for a hotel, refurbishments have only a limited life before the hotel has to be renovated again to maintain quality and standards. Our tourist industry needs good hotels. I propose the introduction of a specific allowance to enable hotels to deduct refurbishment expenditure over a five-year period using an annual 20% write-off. The cost of this proposal is estimated to be $2 million in 1996-97 and $100 million up to 1999-2000.
Implementation
83. The proposed increases in tobacco duty and fuel duty come into immediate effect under a Public Revenue Protection Order issued today. Under similar authority, my proposals on estate duty, stamp duty and air passenger departure tax will come into effect on 1 April this year. My proposals on salaries tax and profits tax will take effect from the year of assessment starting on 1 April 1996, and my scrapping incentive to replace old private vehicles will be implemented as soon as the necessary legislative and administrative measures have been put in place.
Overall Financial Position 1996-97
84. After taking account of the revenue and spending proposals I am making today, including those to be mentioned later in my speech, I expect that we will see a surplus in 1996-97 of $1.6 billion. This is lower than my predecessor's forecast in his 1995 Budget. Nevertheless, as he predicted, we will have drawn on our reserves only in 1995-96 when our investment in the Airport Core Programme has been at a peak. In 1996-97, we will see a return to a surplus, albeit a very modest one.
Medium Range Forecast
85. I have published my Medium Range Forecast in Appendix A to the printed version of this speech. This is our forecast of revenue and expenditure over the next four years. I must emphasize that this is a forecast only. It has been prepared to reassure ourselves that the proposals which I have put forward today are affordable, both in the context of the next financial year and over the medium term. It does not impose any commitment on the future Special Administrative Region Government (SARG).
86. After taking account of the revenue proposals which I have announced this afternoon, I am making the following forecasts.
o First, as I have already mentioned, we will see a return to a small surplus in 1996-97.
o Second, I envisage that the future SARG will enjoy substantial surpluses throughout the remainder of the forecast period. It will benefit from the retention of the full proceeds from land premia and the collection of rents from the extension of the New Territories leases.
87. Our fiscal reserves on 31 March 1997, three months before the change of sovereignty, are expected to stand at a healthy $150 billion. By the end of the forecast period in March 2000, total reserves including the SARG Land Fund are forecast to be in excess of $365 billion.
88. In presenting these figures, I must point out that one of the probable calls on these funds will be the need for capital injections into the KCRC and perhaps even the MTRC towards the cost of the priority railway development projects. At the present time, the precise cost, timing and mode of financing of these projects are uncertain. In the circumstances, I have made no allowance for such payments in my Medium Range Forecast.
89. The economic growth I am forecasting for the period up to March 2000, and the corresponding growth in our expenditure, will enable us to go on enjoying the fruits of our success. As I have explained earlier, these increases in our real expenditure and the benefits that they bring, can and will be funded by the Government's share of the wealth that our successful economy will generate.
HONG KONG FUTURE
90. Traditionally, budget speeches usually come to an end at this point. I want to break with this tradition because, in the third part of my speech this afternoon, I want to address an issue which is very much on all our minds. I want to talk about the future; about our prospects as a community as we prepare ourselves for the change of sovereignty and for the next century. I shall now describe our economic prospects and outline proposals for creating a more business-friendly environment. In particular, I shall discuss how the Government intends to support our high value-added, technology-based manufacturing sector and a world-class services sector.
Economic Prospects
91. I start with our economic prospects. After all, it is our economic success which makes everything else possible; everything we hope for as a community; everything we want to achieve.
East Asia
92. I am truly enthusiastic about what has been called the "Asian Miracle". How could we, as part of Asia, feel anything other than pride at the spectacular success of our region over the past two decades.
o During this period, literally hundreds of millions of people in East Asia have been lifted out of poverty and subsistence by rapid economic expansion. The economic growth rate for the region over the past five years has been twice as high as the OECD average.
o If our recent past has been impressive, our future promises to be spectacular. East Asian growth rates are set to out-perform the rest of the world well into the next century. Even by the year 2000 in East Asia, average GDP per head is expected to reach US$5,200, compared with only US$2,500 in 1990.
What this means for Hong Kong is that, increasingly, our economic growth will be derived from regional trade in goods and services. Our traditional markets will remain important to us. But it is East Asia that will provide the fresh dynamism for our economy.
Economic Developments in China
93. If we can take pride as part of the region in East Asia's progress, Hong Kong can take even greater pride in the economic progress made by China. China will continue to offer the prospect of high and sustainable rates of growth well into the next century. We, in Hong Kong, are part of China's past success and its future prospects. This year is the start of China's Ninth Five-Year Plan. This envisages annual real growth rates for the economy of between 8% and 9% a year. The Plan acknowledges Hong Kong's special status, which is a welcome restatement of the Chinese Government's commitment to the Joint Declaration and Basic Law. The Plan also provides encouraging indications of the areas in which Hong Kong can do most to contribute to China's economic development. In making its contribution, Hong Kong will also benefit substantially.
A Modern Business Environment
94. So East Asia in general and China in particular are set to continue their momentous growth. We in Hong Kong stand to benefit from this expansion. What our neighbours need from us is our expertise in organizing production, in marketing and design, in technology, accounting and law. They also want our services particularly those of financial markets. We have to go on developing our infrastructure of skills and creating the environment in which a skills-based economy can flourish. In essence, this means getting right the blend of commercial freedom and regulation which encourages rather than stifles enterprise and innovation.
Protecting IPR
95. The international business community is particularly concerned about the protection of intellectual property rights (IPR). The Government shares these concerns. Our goal is to develop a modern and internationally-accepted framework to protect such rights. We will update the legislation on the protection of trade marks, patents, copyright and registered designs to bring it into line with prevailing international standards. The Secretary for Trade and Industry will introduce draft legislation to this effect by the end of 1996.
96. We will continue to step up enforcement against copyright piracy and trade marks counterfeiting. We are setting up a new 24-strong team in the Intellectual Property Investigation Bureau of the Customs and Excise Department to strengthen intelligence-gathering, border operations and co-operation to hit hard at piracy and counterfeiting.
A Business-Friendly Government
97. Over the past five years, there has been a quiet revolution in the way we in the Government have approached our work. We have increasingly recognized that our role is to "Serve the Community" and that this concept must be central to all our policies and procedures. I believe that we can do more to help the business community in generating the wealth on which our future prosperity depends. We should set ourselves the task of making the Government, as far as possible, user-friendly for business.
Review of Existing Government Procedures and Practices
98. As a first step, I will be asking all the Policy Branches and their Departments which directly serve the business community to carry out a high-level review of their current policies and procedures. The goal will be to create an environment which is positively business-friendly. This review will not be done in a vacuum. I expect Policy Branches and Departments to consult extensively with their customers and partners in the business world. They will be expected to identify opportunities:
o to streamline existing services through new technology and process re-engineering;
o to eliminate any over-regulation and unnecessary bureaucracy;
o to transfer services to the business sector where market conditions make this possible; and
o to introduce new services which meet the needs of the business sector.
99. We must not confine our efforts to those parts of the Government which are directly involved in serving the business community. I believe the whole of the Government has a duty to provide a business-friendly environment. So I will be asking all Policy Branches and Departments to make their contributions. In particular, and in response to concerns expressed by Members in recent debates in this Council, they will be asked:
o to review the processes and costs associated with the provision of services for which the Government levies a fee or charge; and
o to use the improvements identified by these reviews as the basis for specific efficiency plans.
100. I am determined that Hong Kong should have a government which is truly "business-friendly". Resources will be provided to make sure that these initiatives move forward rapidly and effectively. The Secretary for the Treasury will chair a task force serviced by the Efficiency Unit to allocate these resources to priority areas and to ensure that we get results at an early date.
Tax Concessions
101. As a first contribution to this new programme, I propose to offer three tax concessions which should benefit business firms directly.
o First, I propose to halve the ad valorem fees on company registration from the current level of 0.6% to 0.3%.
o Second, I propose to double the maximum average monthly turnover levels below which businesses are exempt from payment of business registration fees from $15,000 to $30,000, for the sales of goods.
o Third, where the profits of the business are mainly derived from the sale of services, I propose to raise the exemption level by 150%, from $4,000 to $10,000.
102. I believe these concessions will make a direct contribution to reducing the cost of capital, as well as the operating costs of small businesses. These two measures will cost $190 million in 1996-97 and $930 million up to 1999-2000. They will come into effect on 1 April this year.
A World-Class Infrastructure
103. To take the fullest advantage of the special opportunities which rapid Asian and Chinese economic growth will bring, Hong Kong needs a world-class infrastructure. This means that we must equip ourselves with the skills and technological know-how to compete in the international market place. But we must also develop our physical infrastructure the railways, the port, the airport and the support services. Investments in our skills and our physical infrastructure make a very real contribution to our competitiveness.
Physical Infrastructure
104. The Government accepts that it must continue to improve Hong Kong's physical infrastructure to sustain trade and economic growth.
o We are moving forward with planning for the three rail links recommended in the Railway Development Strategy.
o The Government will allocate $15 million in 1996-97 to provide additional staff resources to the Transport Branch and related departments to handle the appraisal and planning work involved.
o Nearly 90% of our total trade goes through the port, and demand is forecast to rise steadily. We must continue building more container terminals to meet this higher demand. We shall need to have in place not only CT9 but also CT10 and the first berths of CT11 before the century is out.
o We must ensure that our airport is able to handle efficiently the increasing flow of passengers and goods in and out of Hong Kong by air. We are on track to achieve the target opening date of April 1998 for the new airport at Chek Lap Kok. The Airport Authority, in conjunction with the Government, is looking further into the future and examining air traffic forecasts to determine the timing for developing the second runway at Chek Lap Kok.
Telecommunications
105. These investments in our physical infrastructure, once completed, will make a contribution to every service and product that we sell. The same is true of our telecommunications and other support services. Our fully digitized telephone system and comprehensive optical fibre network are among the most advanced in the world. Our penetration rates for mobile phone and paging services are among the highest in the world. Competition brought about through the deregulation of local fixed network services in July last year will bring investment of more than $32 billion over the next 10 years from new operators, and they will improve still further our basic telephone network. We shall continue to discuss with the Chinese side our proposal to license new mobile the communication services to relieve congestion in the existing networks. We need to increase our capacity to meet the strong local demand for mobile phone services. This will ensure that Hong Kong continues to lead the region in having the best and most advanced telecommunications services. The Government will continue to pursue a pro-competition policy in telecommunications which has already reduced the real cost of domestic line rentals by 32% over the last 10 years and of international calls by up to 75%.
Human Infrastructure
106. However, while we have achieved remarkable progress in upgrading the hardware of our infrastructure, our airport, roads and the port, we must not forget the key software package which makes the infrastructure work. I mean the people of Hong Kong. The results of our earlier investments are paying dividends now. Productivity per manufacturing worker has increased by 227% over the last decade. We must go on investing in education and in skills training. The Government and the private sector must work together. For its part, the Government is reviewing the New Technology Training Scheme under which employers can obtain matching grants for training their employees in new technology in local or overseas institutions. We are considering a number of proposals, including raising the levels of grants and widening the eligibility for application. The object is to allow more people to receive training and to widen the range and level of skills to be covered by the Scheme.
Labour productivity in manufacturing
Language Skills
107. Hong Kong will not be able to maintain its position as an international centre for trade and finance if it allows its language skills to slip. We need English for much of our international trade and financial services. We need Putonghua for our Chinese future. Education Commission Report No. 6 (ECR6) has made a convincing case on the urgent need to improve our language skills.
108. We need to make an early start on some of the recommendations in ECR6 dealing with English. I have earmarked funds in the Draft Estimates of $14.2 million, rising to $29.1 million on a full-year basis. This money will enable the recruitment of some 100 native English speaking teachers for our schools and the organisation of intensive English language courses for an additional 11 300 Secondary Six and Seven students. These will bring their English proficiency up to the level required for entry to tertiary institutions.
109. ECR6 also makes important recommendations on Putonghua education. I have included a provision of $10 million annually in recurrent expenditure to enable the introduction of a new Putonghua curriculum in September 1998. This will cover all levels from Primary One to Secondary Five in our schools. This new curriculum will prepare students for the new examination in that subject in the HKCEE in the year 2000. In the interim and starting in 1996, the Education Department will organize Putonghua summer courses for our students with some $30 million voted for the project by this Council last November. In parallel, the Language Fund has helped to organize similar projects both for students and people in full-time employment. Over the past two years, 15 000 individuals have benefited from such courses. We will provide some of these community projects in the future. We shall be enhancing in-service teacher training in Putonghua, starting in 1996.
Manufacturing
110. As we make our plans for the future, we have to support our manufacturing sector in its drive to compete in the high-value added and high-technology market place of the next century. Our manufacturers have already relocated to Southern China the lower-skilled, lower value-added production operations. The priority for manufacturing in the future must be to move further up-market. Manufacturers, of course, already recognize this and are devoting more attention to applied research and development, product design, prototypes, quality control and the sourcing of materials and components. These high-value processes are essentially creative in nature and technology-based. We must also take full advantage of our strategic location. China is much more than a low-cost production base. It contains a large pool of technological and research expertise which can make a major contribution to our own development.
111. The Government has a part to play in this. Our immediate aim is to encourage manufacturers to get into the business of applied research and development with enthusiasm. The Applied Research Council already operates two funding schemes which, in effect, are a form of venture capital fund. More than a dozen projects are being supported through loans or equity investments for individual firms.
112. We should, of course, do more to secure an advanced technology base. There are several potential projects which we will be taking forward to do exactly that.
o First, a science park. This will bring together local and international technology-based businesses. It will provide the right environment for exploiting the enormous potential from the convergence of technologies. We will decide on the most appropriate site quickly and put the institutional arrangements in place.
o Second, the Government has accepted the case for developing a second industrial technology centre. The first established in 1993 has been so successful that it cannot meet in full the strong market demand for its facilities. We will identify a suitable site quickly to enable detailed planning to proceed.
o Third, the Government has also accepted the case for developing a fourth industrial estate. Detailed planning is about to begin.
o Fourth, the Government has offered to help finance a private sector initiative to study our long-term industrial development prospects and identify promising new industries for Hong Kong.
As I have said, the Government is moving forward on these initiatives. But I want to emphasize that industry must make the best case for these initiatives. Each of them is intended to support manufacturers in the market place, and they are very much in line with our established policy of minimizing government intervention and maximizing its support for business.
Services
113. As with manufacturing, so with services. Markets and enterprise have already made Hong Kong a regional and global service centre in the premier league of service providers. The challenge now is to compete and to rise within the premier league. Standing still is simply not an option, and the Government will play its part in supporting the market momentum already created by the private sector.
A Task Force on Services Promotion
114. My predecessor, Sir Hamish MACLEOD, promised in his last Budget speech that the Government would look for ways in which it could contribute to the further development of Hong Kong as a world-class service centre. With his full backing, last August I established a Task Force on Services Promotion. I shall be reporting on this work in a moment. Before doing so, I want to emphasize a point central to our work. Our aim has been to identify ways which we in the Government can facilitate the success of our services sector. Our aim has not been, and never will be, to direct development, to "pick winners" or to second-guess markets and entrepreneurs. To ensure that the Task Force is kept close to business realities, I have set up an Ad Hoc Group with prominent business leaders, professionals and academics to provide us with their input. And to expand the range of outside views and contributions, a symposium will be organized jointly with the major trade and industrial associations on 12 March to discuss specific issues confronting the services sector.
115. Among the Budget documents published today is the first concrete outcome from the Task Force's work. This new document, "The Services Sector: Support and Promotion", sets out:
o an eight-point "Framework for Action". This describes the strategic thrust of the Government's support for this sector; and
o 14 individual "Action Agendas". They describe the current performance of key service sectors. They state the Government's current commitments to them and outline the directions for future policy. They also set out the principal initiatives taken by the private sector and the major challenges that lie ahead.
116. Let me give Members just a few examples of what the "Framework for Action" and the individual "Action Agendas" are proposing.
o We must do more to promote our trade in services. The Trade Development Council has already done an outstanding job in promoting our visible trade. It has agreed to expand its work in promoting trade in services, particularly the export of services. This will complement the work of the Trade Department and our 10 economic and trade offices overseas in gaining market access under the multilateral trading regime for our service exporters.
o We must do more to promote inward investment in the services sector. The Industry Department is already very successful in attracting inward investment for the manufacturing sector. It will in future undertake a similar role for the services sector.
o We must do more to maintain Hong Kong's position as the premier tourist destination in the region. The Hong Kong Tourist Association has recently formulated a visitor and tourism strategy to help us achieve that in the increasingly competitive environment in which we operate. We will continue to give it support in this.
o The Export Credit Insurance Corporation has developed a range of facilities to support the services sector in its drive for new markets abroad. It will bring these vital services to the attention of the whole of the sector which has, so far, not made the fullest use of the Corporation's facilities.
o We must do more to support the small and medium enterprises employing less than 50 workers which make up the bulk of the services sector. We shall work with the private sector to formulate new initiatives to enhance productivity, upgrade management systems, identify financing options and make market information more accessible.
117. We need to be very cautious in committing public funds to support what are essentially commercial projects. There can be no question of feather-bedding business or bailing out failed enterprises. But there is a good case for providing financial support to specific projects which could make a general contribution to the competitiveness of our services sector. We already have an Industrial Support Fund, and I believe the time has come to set up a parallel Services Support Fund with an initial allocation of $50 million. There is also a good case for providing additional funds to the Hong Kong Tourist Association to help it implement the visitor and tourist strategy. I therefore propose to make a one-off grant of $50 million to the Association to set up a Tourism Development Fund for the purpose.
A Mortgage Corporation
118. Improving the efficiency and reducing the risks in financial intermediation is one of our core strategies in promoting the financial services sector. In the area of housing finance, there is a strong case for establishing a mortgage corporation which will offer the following benefits:
o it will reduce the concentration and liquidity risks of mortgage lending by banks;
o it will increase the availability of mortgage funds to home buyers and widen their choice of mortgage products; and
o it will issue high quality securities which help to improve the depth and the liquidity of the local debt market.
119. The establishment of a mortgage corporation in Hong Kong will be no simple task. However, the benefits of such an institution are large enough to warrant further, detailed study. We have engaged the Federal National Mortgage Association, the United States' largest and most profitable mortgage corporation, to assist us in studying the business and technical issues involved. The Hong Kong Monetary Authority will then prepare a detailed proposal for consultation with the banking community, capital market participants and other relevant parties. Subject to the outcome of the consultation, I would hope that preparatory work for the actual setting up of such a corporation could commence as soon as possible.
Revenue Measures for Financial Services
120. Finally, I believe there is room for two more tax concessions to encourage the further development of our financial services.
o First, I propose that the interest income and trading profits derived from certain debt instruments be subject to a concessionary tax rate equivalent to 50% of the normal profits tax rate. Instruments qualifying for this concession must be lodged with and cleared through the Hong Kong Monetary Authority, carry a suitable rating, have an original maturity of five years or more and a minimum denomination of $500,000. This concession should help to attract overseas issuers to Hong Kong, enlarge our debt market and enhance our competitiveness vis-a-vis other financial centres in the region.
o Second, I propose to waive stamp duty for market makers on stock transactions for the purpose of hedging options transactions. This will help to increase trading volume, improve market liquidity and the quality of risk management, and reduce the underlying price volatility of stocks.
I estimate that these two measures will reduce revenue by $30 million in 1996-97 and $135 million up to 1999-2000. They will come into effect as soon as the necessary legislation has been put in place.
121. I also intend to amend the Inland Revenue Ordinance to reflect existing practice. I will
o include a specific exemption for certain income derived from bona fide offshore funds managed in Hong Kong; and
o exclude stock brokers from potential profits tax liability in respect of share trading profits derived by non-resident investors for whom they act as agents.
Promoting Services
122. This afternoon, I have outlined a package of measures designed not simply to make the Government more business-friendly but to tackle key areas where we can contribute directly to business efficiency. Members will find further details in the new Budget document to which I have already referred. I want to emphasize that this is not the end of our work. This document, and the Task Force's deliberations, should be taken as the first steps only, a first step towards developing a policy support for the services sector, without neglecting manufacturing, well into the next century.
CONSULTATIONS WITH CHINA
123. Before concluding, I want to say something about consultations with the Chinese side. Last March, my predecessor outlined a four-stage programme for the purpose. In essence, this programme involves a steady intensification of work from a general background briefing in stage one, to the specific subject-related seminars in stage two, the detailed introduction of the budgetary cycle in stage three, and full consultation in the preparation of the 1997-98 Budget in stage four. An Expert Group has since been set up under the Sino-British Joint Liaison Group to carry this forward. This Expert Group has gone through the first three stages of the programme of work in a pragmatic and co-operative manner. We expect this to continue in the final stage of the programme. As previously envisaged, we will strengthen co-operation with the Chinese side in the preparation of the Budget for 1997-98 to ensure a smooth transition.
124. I have outlined, this afternoon, a bold range of proposals, particularly for developing the manufacturing and service industries. In the near future, we shall consider these proposals in greater detail. In doing so, the views of Members of this Council and of the community as a whole will be invaluable. But obviously many of the proposals have financial implications beyond 1997. They will have to be considered and, if appropriate, carried forward by the future Hong Kong Special Administrative Region Government. As our consideration progresses, I will ask the Secretary for the Treasury to discuss those proposals having expenditure implications for the 1997-98 Budget in the Expert Group. I also stand ready to explain these proposals personally to the Chief Executive (Designate) as soon as he or she is appointed. I shall deliver the rest of my speech in Cantonese.
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o 崩︽甅侯毙▅琵ぃ闹厩ネだ祇甶肩礚阶厩砃盡穨㎝戮穨癡絤よА笷璓瓣悔粄夹非莱セ翠竒蕾ぃ耞锣跑惠璶
134. 硂琌龟借糤痷タ種竡竒蕾糤┮盿ㄓ龟眔痲ゲ斗ノэ到チネэ到カチ胺眃ネ借毙▅キ㎝戮穨玡硚蝴硂妓龟借糤ㄓ常琌и-
璶ヘ夹瞶稱и-
ネキら痲矗蔼カチ矗ㄑ狝叭ョぃ耞э到┮惠秨や常穦パ現┎┯踞τ硂ㄇ戈方穦ㄓ︑セ翠竒蕾祇甶┮盿ㄓ穝糤癩碔い現┎┮だㄉ场だи-
荡ぃ穦糤硂场だゑ籔╬犁诀篶膙硋戈方璶翠尿羉篴砍и-
セ碞ぃ惠璶硂妓暗虹い笵瞶碞琌虏虫
135. 畊ネи-
翠カチゲ斗┹甶竒蕾э到チネ砞盢ㄓи程稰猋饥琌и-
常睲贰產ヘ夹ョ笵︙霍み璓龟瞷硂ヘ夹и略矗某┿臛阶硂兜某
PRESIDENT: I now propose the question to you and that is: That the Appropriation Bill 1996 be read the Second time. And in accordance with Standing Order 54(2), the debate on the Second Reading of the Appropriation Bill 1996 is now adjourned. Arrangements have been made for the Finance Committee to examine the draft Estimates in the meantime. I now suspend the sitting for one hour.
4.25 pm
Sitting adjourned.
5.25 pm
Council then resumed.
MEMBER'S MOTIONS
INTERPRETATION AND GENERAL CLAUSES ORDINANCE
MRS SELINA CHOW to move the following motion:
"That the Ferry Services (The "Star" Ferry Company, Limited) (Determination of Fares) (Amendment) Order 1996, published as Legal Notice No. 40 of 1996 and laid on the table of the Legislative Council on 24 January 1996, be amended in section 2 by repealing paragraphs (a) to (k)."
MRS SELINA CHOW: Mr President, I move the first motion standing in my name on the Order Paper. The motion seeks to amend the Ferry Services (The "Star" Ferry Company, Limited) (Determination of Fares) (Amendment) Order 1996.
A Subcommittee, chaired by me, was formed on 26 January 1996 to study eight items of subsidiary legislation (including this one) tabled in the Legislative Council on 24 January 1996. On 9 February 1996, it took on the study of another item of subsidiary legislation tabled in the Legislative Council on 7 February 1996. All items involve fee increases. The Subcommittee, with a membership of 15, has held four meetings, including three with the Administration.
Some Members alleged that the "Star" Ferry has reneged on its promise made in 1994 not to seek another fare increase in 1995. They are dissatisfied with its explanation on the significant discrepancy between the profit and loss forecasts made in 1994 and 1995. The "Star" Ferry argues that the 1994 undertaking was made on the condition that its profit for 1995 would turn out to be more or less the same as forecast and that is approximately HK$10 million (with maximum of 10% variance). In actual fact, the Company suffered a loss in 1995. The discrepancy in forecasts is mainly due, as was explained, to decline in patronage and increasing operating costs arising from higher than expected vessel repair and pier expenses.
After detailed study of the "Star" Ferry's arguments and its Profit and Loss Account presented to the Subcommittee in confidence, Members held divided views on its proposed fare increase of 18.9%. Mr WONG Wai-yin, representing the Democratic Party's view, opposed the increase, advocating the granting of pier development rights to the Company by the Government to subsidize its operation. Dr LAW Cheung-kwok supported neither the fare increase nor a pier development package for the "Star" Ferry. He was of the opinion that if the Company discontinued the ferry service, it should be taken over by the Administration or the Government. Miss CHAN Yuen-han, on behalf of the Democratic Alliance for the Betterment of Hong Kong (DAB), reserved their position, because she found it difficult to form a judgment there and then on the basis of the figures provided by the "Star" Ferry. Mrs Miriam LAU, on behalf of the Liberal Party, supported the proposed fare increase on the grounds that pending a long-term strategy, the "Star" Ferry has to survive and the proposed increase is reasonable. In conclusion, the Subcommittee decided by a majority vote that the proposed fare increase in section 2(a) to (k) should be repealed.
In section 2(1) of the Order, a monthly ticket for the route between Hung Hom and Edinburgh Place at the rate of $125 is proposed. Members of the Democratic Party on the Subcommittee indicated their support to the introduction of a monthly ticket for this route, but at a reduced rate. A motion will be moved separately by Mr WONG Wai-yin to that effect.
Mr President, as I was elected chairman of the Subcommittee scrutinizing this Order, it falls on me to move the resolution to repeal the Order, which reflects the majority decision of the Subcommittee. However, as I entirely agree with Mrs Miriam LAU's opinion and decision to support the Order, I shall be voting against it. I rely on Mrs LAU to explain the reasons for the Liberal Party's support for the fare increase. I hope the wisdom of the minority in the Subcommittee will enjoy the support of the majority in this Council here and now. Star Ferry provides the cheapest cross-harbour service. It is not a monopoly. It is making a loss. If the Legislative Council refuses its request to raise fares, we send a worrying signal to businesses that we fail to balance the interests between consumers and business operators, and that we do not ensure fairness in the rules of the game of capitalism.
Mr President, while calling on my colleagues to oppose this motion, I beg to move.
Question on the motion proposed.
PRESIDENT: Mr WONG Wai-yin has also given notice to move a motion under the Interpretation and General Clauses Ordinance to amend the same order, that is, the Ferry Services (The "Star" Ferry Company, Limited) (Determination of Fares) (Amendment) Order 1996. Mr WONG's motion has been printed on the Order Paper. As the contents of Mrs CHOW's and Mr WONG's motions relate to the same subject, I propose to have them debated together in a joint debate.
The two motions shall now be debated together in a joint debate. Members can now speak on either or both motions. At the end of the debate, we will vote on Mrs Selina CHOW's motion first. Thereafter, Mr WONG Wai-yin will be called upon to move his motion, but the question on Mr WONG's motion will be put without further debate.
独岸藉某璓勉畊ネぱ琍近菌眣耕稧Μ禣翠カチ矗ㄑ筁寸近狝叭癸痁Ω繵盞臟㎝筁繥笵ぺ縀疨膙羇礛Μ禣稧ぱ琍近膙ご礛砆玠畓ㄢ兵璶絬い吏︓‵〤のい吏︓戛秖硋蝴近そタ盽犁笲ぱ琍近А斗矗碩差禣碩笷︓Μやキ颗の┏ぱ琍近獽だ矗蔼差禣22.9%㎝13.7%τさ┏玥矗ビ叫糤差禣18.9%
ぱ琍近狦さぃ基︳璸パせ秨﹍そ獽穦瞷莲穕Τㄇ某┪現囊穦粄癸ぱ琍近硂丁╬犁诀篶ㄤ穨叭莲穕薄猵狦ご礛ぃуㄤ基摧г㎝ぃ瞶チ囊猭玱Τ┮ぃи-
粄颗秖琌やそユ硄ㄣ基埃璶闽猔そ穨叭Τ瞷莲穕秖璶琌ゲ斗秆穨叭莲穕璶礛癸痝媚ぃ耞蹦ㄇ獀夹ぃ獀セ快猭琌祏跌暗猭癸秆∕拜肈セ礚干ㄆ
ぱ琍近穨叭瞷莲穕ㄆ龟耴㏒そゼΤ北竒犁Θセ㎝穨叭ぃ耞典罽硂ㄢ
ぱ琍近┏ミ猭Ыビ叫基纯и-
ユそ癸ゼㄓ计犁笲薄猵︳璸计沮讽赣そボ狦るΘ糤布基13.7%︳璸きのせだ寥1,030窾じの850窾じ柬酚ぱ琍近癸きのせ柬箇代瞶莱玡ぃ惠基τ讽ぱ琍近ョ┯空きずぃ穦ビ叫基さ┯空辅きるи-
ΩΜぱ琍近ビ叫矗蔼布基18.9%ビ叫癸さΩゅンずΤ闽计沮и-
玱祇瞷ぱ琍近き羆Μ琌9,050窾じ箇璸せ羆Μ玥钡9,200窾じ籔┏基┮矗计沮箇代きのせ羆Μ璓ぱ琍近矗基箇代柬籔瞷┮眔畉ぃ笷ウ┮箇璸莉眔柬さΩ近そ玱沮近そきるら倒и-
ゅン┮ボ近そ讽ゼ竒计璸衡き穦Τ33,000じ淮稬柬箇璸せ盢穦莲穕κせ窾じ灿ㄓぱ琍近き龟悔竒犁Θセゑそ┏矗基┮箇代窾じ箇代籔龟悔竒犁Θセ秨や熬畉畉澈笷窾じ龟佩琌伐ぇぃ瞶
ぱ琍近さ璶基18.9%ㄆ龟琌辣干竒犁Θセ碩ど狦せ近そ竒犁Θセ碩禬箇衡そキ颗Μやτぃ穦瞷穕莲さуぱ琍近基某琌穦钡近そ矗碩基ビ叫㎡
癸ㄤユ硄ㄣ膙ぱ琍近寸近狝叭よ祇甶ゲ礛琌Ττチ囊荡癸ぃ穦や硓筁ぃ耞基ㄓ蝴寸近狝叭タ盽犁笲暗猭ㄆ龟ぱ琍近ョ睲贰ㄏさミ猭Ыуウ基18.9%琵近そ︓箂箂箂镑莉眔キА7%瞶厨瞯そ︳璸の箂箂箂ョ璶だ盢布基秸蔼32%14%79%の9%ぃ耞矗蔼Μ禣セ碞琌獀夹ぃ獀セ快猭癸㎝ぱ琍近祇甶捣睝⊿Τ痲矪
狦近そ⊿Τヴ︙穝祇甶よ㎝郸菠狝叭借⊿Τэ到はτ差禣膥尿ぃ耞碩糤程ョ穦秖秈˙秈˙瑈アê近そ竒犁螟チ囊粄現┎莱赣荷е浪癚翠寸近狝叭の璹环寸近現郸狦讽Ы粄ぱ琍近ごΤネ基碞ゲ斗稱快猭癸寸近狝叭ぃ耞典罽拜肈и-
某現┎ラ癸猳弚近暗猭σ納倒ぉぱ琍近絏繷籠穨祇甶舦琵ぱ琍近盢祇甶穨┮眔柬猔戈寸近狝叭搭ぶㄤ莲穕铆﹚布基э到狝叭
ぱ琍近さ矗18.9%碩Ч琌竒犁Θセ碩禬ㄤㄓ箇衡┮璓ぱ琍近ゼΤ北竒犁Θセ琌そセō岿粇パτま璓穕ア荡癸ぃ莱赣パ┯踞и-
は癸ぃ耞矗蔼差禣ㄓ蝴ぱ琍近タ盽犁笲硂暗猭チ囊辨現┎㎝近そ縩伐荷е╯秆∕寸近狝叭ぃ耞典罽癸郸チ囊∕﹚∕ぱ琍近さ18.9%基ビ叫
畊ネさΩビ叫基ぱ琍近穝糤パ稲躇約初︓戛絬る布狝叭布基125じパ125じ琌沮パ稲躇約初︓戛絬糷Θ虫祘布基穝Μ禣2.5じ璸衡皌チ囊璶―挡ぱ琍近絬狝叭某セ矗タ盢赣兜穝糤る布狝叭Μ禣璹沮瞷︽稲躇約初︓戛絬糷Θ虫祘布基じ璸衡赣絬る布Μ禣莱赣琌100じ硂璹籔チ囊璶―挡┮ΤΜ禣琌璓セ祔矗タ盢赣兜穝糤る布Μ禣パ某125じэ100じ
畊ネセ略朝勉
糂胺祸某璓勉畊ネ玡ぱ琍近ビ叫基碩琌13.8%讽瘤礛ぱ琍近眔せκ窾じぱ琍近癸玡春ご礛骸辨粄秖–穦糤2%τ基ぱ琍近き盢穦禬筁1,000窾じ厨瞯笷11.2%讽ミ猭Ы珹チ囊某钡ぱ琍近基ぃ筁ぱ琍近種衡絃ゴぃ臫程沧ぱ琍近眔κ窾じτきぱ琍近ぃ虫ゎ⊿Τ⊿Τ厨はτ莲籯κ窾じ狦さΩ基ぃΘ杠せ莲穕穦蔼笷κ窾じ箇璸ㄏさΩΘ基18.9%ぱ琍近せョ穦Μやキ颗⊿Τ或ēиぃフ︙场だ讽ぱ琍近Ττ箇璸穦Τご砛ㄤ基ㄆささらぱ琍近腨莲籯薄猵澈礛は癸基斑秆睦碞琌-
琌は癸τは癸┪砛琌匡チユτは癸
狦虫は癸そノㄆ穨基琂﹚ミ初щ布σ納さΩ基臛阶セ睝礚種竡は癸基某Ν﹚ㄓ碞琌ぃ臮そ犁笲薄猵ぃ瞶そ莲籯﹚璶挡基
讽某绑礛礛は癸ぱ琍近基-
纯カチユ睲贰-
は癸︽笆ま璓狦ㄏ近そ暗籯セネ種环ㄓ弧獶カチぇ褐籯セネ種街腀種暗そ籯セ钡甡埃狥ぇ临Τそ戮-
羱礚辨セ璸购發羱筍Μ狦そ籯セτ氨快程甡琌ぱ琍近硂程獽﹜寸ㄣΘ某穦現獀碾珇カチ砆эㄤ耕禥ユ硄ㄣ臟┪ぺ筁璝硂薄猵瞷カチ莱赣街拜砫㎡
讽礛そ籯セ獶基斑σ納狝叭借ョ琌璶吏程猳弚近基拜肈は癸基某碞狝叭ろ瞶稱τ硑ゅ彻さΩ┷癸ぱ琍近碞ぃいノぱ琍近き11るΤ﹙щ禗τ筁碭ぱ琍近瘤礛犁笲ろ瞶稱ご礛ぃ耞璓э到狝叭の眏砞琁俱砰ㄓ弧荡场だ癸ぱ琍近狝叭弧琌骸種粄Τ┮薄猵狦и-
ご礛绊は癸ㄤ基碞琌犁笲祇繧獺暗眔ぃ㏕礛ぃ莱赣基暗眔ョ⊿Τ眔Τ窥寥讽礛ぃ基籯セョぃ甧砛硂妓癸犁笲そキ盾狦ミ猭Ыぃ耞祇硂妓獺临穦Τщ戈腀種щ戈そノㄆ穨盾и纯竒矗筁Ω硂иΩ狡碞琌基拜肈и-
ゲ斗キ颗щ戈籔カチぇ丁痲щ戈惠璶瞶厨カチ惠璶▆㎝Τ┮狝叭狦臮璶狝叭程獽﹜τぃ瞶щ戈临穦Τ腀狝叭矗ㄑ盾
さΩは癸ぱ琍近基斑穐"瞶パ"琌ぱ琍近┏ビ叫基纯癸糂ホ某琘ㄇぃ基┯空иゲ斗癸犁笲籔某秈︽"齘┏ユ"Ч琜セЫユ硄ㄆ叭〆穦硂暗猭ボ眏疨ぃ骸ぃ筁既篔秨硂ぃ酵и-
ぱ琍近筁或┯空の-
琌痷タ笻璉┯空近そるら倒笲块獺ンい睲贰そ┯空琌狦そきずㄤ箇代笷︓筁窾じキ玥そぃ穦σ納きずビ叫基狦ゼ笷︓箇代キそ琌絋の睲贰玂痙きるビ叫基舦陪硂琌Τ兵ン┯空τㄆ龟耚泊玡Τ闽兵ン礚猭龟瞷┯空ョи-
у蝶近そ癩現箇代畉玪и-
ぱ琍近筁贾芠ㄆ龟秖約Μ禴絏繷の差钉蝴┮惠肂秨や单常獶そ北絛瞅ず近そ箇衡ア非龟妮薄Τи獺狦匡拒杠近そ荡癸穦匡拒笷︓き箇戳Μ痲τぃ穦匡拒きぇずビ叫基陈沸︗某
ぱ琍近ビ叫基琂礚ю阑程临珼琌基碩ぱ琍近ビ叫基35%竒ユ硄吭高〆穦糵某碩玠搭某у基18.9%︽現Ыョу硂碩度琵ぱ琍近せΜやキ颗膥尿ネ
ㄓ18.9%硂碩琌环环蔼硄等龟悔荡场だ–祘斗を窥30玡ぱ琍近"ゆ箂"纯竒ま癬猧讽"ゆ箂"临禦窲フ蛋兵猳兵瞷を窥禦或㎡を窥琌穦癸カチ硑Θ↖璽踞㎡程璶カチ琌痷眏疨は癸ぱ琍近硂を窥㎡は筁ㄓカチを窥ぱ琍近碞膥尿犁笲カチご礛Τ诀穦匡拒硂贺程獽﹜寸ユ硄ㄣ30玡禦窲フ蛋禦兵猳兵"ゆ箂"牟祇忌笆и荡癸ぃ稱ささらヴ︙狥﹁常禦ぃを窥せゆ箂穘笆щ戈癸翠坝穨竒犁吏挂獺み硂妓荡癸琌癸翠ぃ硂薄猵и赖叫︗某ぃ璶㏕磅辨-
み锣種やぱ琍近基ビ叫
ㄏさΩ基眔硄筁ぱ琍近玧眏ネぱ琍近玡春ごゼǎ贾芠い吏恶祘ぃ耞紇臫ぱ琍絏繷笲﹁繥硄ó癸ぱ琍近篶Θǎゼㄓぱ琍近秖尿Μ搭ぶ虫綼碩秸俱布基﹍沧獶郸布基糤ぃ虫ゎ璽踞ョ玠畓ぱ琍近セō膙現┎ゲ斗のΝσ納环秆∕快猭猳弚近絏繷籠祇甶﹚丁ず铆﹚布基τ現┎ョ眏秸獶纔磃猳弚近Τ闽基琌カ初基络﹚и辨現┎σ納琵ぱ琍近钡妓逼硓筁絏繷籠祇甶Μ痲干禟寸近狝叭搭淮基溃現┎莱赣荷е﹚环寸近現郸穝络﹚寸近俱砰ユ硄笲块い┮ш簍à︹ㄏ寸近狝叭Τよ┦祇甶铆胺Τ縩伐カチ矗ㄑ狝叭
畊ネи略朝勉は癸㏄辩睶┥某㎝独岸藉某某やぱ琍近览某基碩
MR PAUL CHENG: Mr President, I rise to support the Star Ferry increase proposals. I am very concerned about this Council overly politicizing every single issue because that is not in the interests of Hong Kong's overall progress and Hong Kong's future if we begin to get involved with commercial endeavours. For example, I know the Star Ferry Company is struggling to make a profit. They do not have to stay in business. They can easily close the service, and by closing the service, there will be more unemployment in Hong Kong.
In addition, we must remember that the Star Ferry is a major tourist attraction in Hong Kong. It is a landmark in Hong Kong, and if we close that service, there may also be impact on our tourist industry as a whole.
So I would like to encourage some of my colleagues who are against the fare increase to think carefully. We are talking about 30 cents. Maybe 18% sounds like a big number in percentage terms. But we are talking about only 30 cents. Let us be more realistic and let us not over-politicize every single issue in this Council. It is not in the interests of Hong Kong's future. And it is about time we all wake up to that fact.
Thank you, Mr President.
朝挪狶某璓勉畊ネぱ琍近ミ猭Ыビ叫基18.9%狦虫眖碩计絋琌讽蔼ぃ筁チ羛ぃ種琘ㄇ刮砰┪現囊暗猭琌虏虫盢碩籔硄等瞯ゑ耕τЧぃ瞶穦基ビ叫ㄣ砰瞶沮碞矗挡基璶―
チ羛糵某現┎Μ禣のそㄆ穨基ビ叫硄等瞯ぃ琌и-
σ納斑非玥パセ翠ヘ玡竒蕾ご礛癵и-
癸そㄆ穨基ビ叫Τ砮ミ初碞琌璶キ颗炊霉蒥チの竒犁㎝坝痲チ羛粄Τ緇诀篶莱ち龟σ納籔翠蒥チ"羮"︑笆挡布基τ瞷莲穕玥甧砛酚薄猵ビ叫瞶碩
秆蒥チぷㄤ琌竒盽ㄏノぱ琍近癸さΩ基種ǎチ羛るい︓るΟだパ縒ミ秸琩诀篶筿杠┾妓砐拜のパチ羛Θぱ琍近秈︽拜秸琩ㄢ兜秸琩挡狦А祇瞷场だ砆砐常癸ぱ琍近基贺放㎝篈ぃ眏疨は癸秸俱布基τ粄狦近そ瞷莲籯杠琌莱赣琵ㄤ基
沮翠蒥初秸琩きる秈︽兜秸琩挡狦陪ボ翠ユ硄ㄣい蒥チ癸ぱ琍近狝叭蝶だ琌度Ωㄢ臟の筿óτぱ琍近筁15仓縩布基糤碩ョぃ筁琌8.5%度Ω臟隔
沮ぱ琍近ミ猭Ы矗ユ戈陪ボパ蝴の竒犁Θセ害赣そき︓せ莲穕笷璓479窾じ璝さぃ秸俱杠盢穦莲籯750窾じㄏ基18.9%ョ笷Μやキ颗τ基某и-
笵Τ90%惠︓àи-
秸琩い场だ砆砐常粄碩﹟ぃ衡蔼
沮ぱ琍近箇代ㄤ竒犁玡春ㄤユ硄ㄣ膙の絏繷穐綞单紇臫せ羆秖穦パき3600窾Ω︓3560窾Ωτ﹁跋┏繥笵い硄ó秖ョ盢穦秈˙禴
ぱ琍近ㄓ狝叭А眔蒥チ蔼蝶基赣そ筁きキА厨瞯琌菠蔼5%チ羛粄琂礛ぱ琍近そ琌︑パ蒥初竒蕾坝穨竒犁玥笲そㄆ穨诀篶и-
莱甧砛ぱ琍近Τ瞶厨の基诀ΜΘセ㎝笷璓瞶柬
チ羛蝶︳セ翠ヘ玡竒蕾猵ぱ琍近竒犁猵㎝玡春蒥チ癸近狝叭骸種祘の癸布基┯踞单よ粄ぱ琍近さΩ基琌钡︓独岸瘀某矗Τ闽る布璹и-
粄琌ぃち龟悔и-
ぃ穦や璹ぇ竒莉纔磃る布Μ禣籔–祘龟借畉禯盢穦禫ㄓ禫τ璹琌酚Τ布基τ璹
畊ネㄇ刮砰┪現囊"硔ゲは"ッ环琌癸眖さΩ秸琩挡狦ǎㄤ龟荡场だ翠蒥チ常琌讽瞶┦-
σ納そㄆ穨基ビ叫埃碩ョ穦σ納Τ闽诀篶竒犁猵㎝基龟借紇臫∕﹚и粄︗璽砫ヴミ猭Ы某璽砫ヴ現囊碞莱瞶┦σ納–兜基ビ叫ㄣ砰瞶沮穦俱砰痲∕﹚
らи-
钮Τㄇ種ǎ弧チ羛癸ぱ琍近基拜肈ミ初ぃ﹚τ纯竒ボぃ穦や基ビ叫у蝶и-
琌チ種"锣浹"ぃ岿チ羛钡ぱ琍近ビ叫基戳近そ┮矗ㄑ戈τぱ琍近纯竒籔チ囊某╬┯空硂拜肈﹟ゼ坚睲珿チ羛讽ボ瓃薄猵ぃ穦や基ビ叫τи-
ョ纯竒Ω眏秸穦秈˙ぱ琍近秆Τ闽薄猵㎝秈︽╯Τ粄チ羛穦ヘは癸┏и-
粄琌"碵薄腀"τ╫チ羛ミ初琌チ薄τ琌キ颗そㄆ穨诀篶㎝蒥チ俱砰痲τ∕﹚
и-
粄搭淮近そ竒犁Θセぃ耞糤現┎莱赣┯踞场だ絏繷蝴禣ノパセ翠瞷癸そㄆ穨笲の菏恨⊿Τ甅购夹非の菏恨チ羛某翠┎把酚瓣悔珇借挪﹚夹非﹚甅続ノ┮Τそㄆ穨诀篶狝叭キの菏恨夹非ㄏ竒犁Τ┮ㄌ碻э到狝叭借τ現┎ミ猭Ы㎝蒥チョ镑菏诡
畊ネセ略朝勉
讲蚌某璓勉畊ネ瘤礛嘲ユ硄呼蹈ら坎Ч到场だ蒥チ圭腀匡拒禣ノ耕禥耕よ獽寸ユ硄ㄣ琌翠ず絬ご礛Τ眔玂痙纔翴ヘ玡ぱ琍近狝叭ご礛琌程獽﹜寸ユ硄ㄣτウ絋癸覸絯嘲ユ硄溃癬ぃノ
セ翠竒蕾祇甶酱玨ぱ琍近螟癸Τ耕蔼箇代堡の竒蕾菲℡続硔絏繷穐綞の癸膙吏挂耕碿瑈秖糤氨孩ぃ玡眔猔種琌ぱ琍近獶胋耞カ初τ琌璶癸ㄤ膙癸も疭琌臟の繥笵ぺ璝粄基碩ぃ瞶杠匡拒ㄤユ硄ㄣτ讽程沧紇臫穦琌赣そよㄤ竒犁Θセ玱ぃ耞糤ㄤい珹戈蝴の玂緄蔼害Θセ狦布基ゼ秸俱┤穦羬莲穕诀璝穨獶パㄤ竒犁ぃ到τ琌竒犁吏挂э跑τ莲穕τи-
ぃσ納龟悔薄猵"硔ゲは"挡ㄤ基ビ叫硂盢坝陪ボ伐胊獺紇臫┮のㄏщ戈の坝А穦癸竒犁硂摸そ犁ㄆ穨Τ┮玂痙硂盢癸俱砰穦盿ㄓぃ
沮秆ヘ玡计А骸種ぱ琍近┮矗ㄑ狝叭沮兜秸琩翠そユ硄ㄣい癸ぱ琍近蝶だ琌耕蔼さΩ現┎矗碩18.9%絋龟琌耕蔼κだゑ礛τ沮ㄣ砰计キА90%斗肂煤ㄢà︓à差禣硂碩﹟妮放㎝蒥チは癸基ぇ羘ぃ縀疨τ沮兜秸琩陪ボ计А钡硂碩セやさΩぱ琍近矗基ビ叫
畊ネセ略朝勉
郭Θ某璓勉畊ネセチや挡ぱ琍近基
иビチミ初碞琌は癸ヴ︙穦紇臫カチネ渤璽踞基チ粄さ琌螟戳獶盽戳珿は癸紇臫チネ基
︑┏ㄓセ翠竒蕾絯ア穨瞯胟ど硄等ご蝴8.7%蔼キ蔼硄等蔼ア穨瞯蛮ゴ阑カチネ弧琌κょぃそノㄆ穨ぃ耞基琌辅かホチぃ稱ぃгǎ硂薄猵珿璶―さ"挡"┮Τそノㄆ穨既氨基
チ某ぱ琍近さ┏Ω矗基ビ叫τさ碞浪癚︑竒犁よΑの祇甶郸菠狦現┎Τ︙ㄣ砰铆﹚ぱ琍近布基碩某ョ莱籔ぱ琍近坝癚矗ユセЫ糵某チョ璶―現┎﹚俱砰寸近現郸
セ略朝勉
PRESIDENT: I now invite Mr WONG Wai-yin to speak for the second time since after the joint debate, he will not be given the opportunity to speak when moving this motion. But I am sure Mr WONG will be brief and not repetitive. Mr WONG Wai-yin, do you wish to speak?
独岸藉某璓勉畊ネさΩぱ琍近基拜肈籔ㄤそㄆ穨诀篶のそユ硄诀篶基妓ㄤ龟チ囊チ郭Θ某┮粄さ琌翠カチ癸羮螟ㄨи-
笵坝ずㄇ癩刮柬⊿Τ┕ê或ぶ寥ㄇ琌ぃ㎡и-
谋眔ぃ琌ㄇそㄆ穨诀篶щ戈ぃ琌и-
俱ぱ弧ぱ琍近タ莲穕硂琌ウ材癸莲穕薄猵ウ玡寥и-
或ぃσ納ず㎡
Τㄆ弧チ囊"硔ゲは"┋糂胺祸某秨﹙竡弧るぱ琍近ビ叫基チ囊纯ボや讽ぱ琍近Τ薄猵и-
やウ基琌и-
纯籔ぱ琍近の現┎よ秈︽癚阶辨近そ讽基13%柬笷璓箇戳1,000窾じ沮讽计沮璸衡ウ︓礚斗基カチ计ずㄉΤ铆﹚布基讽チ囊や近そ基ビ叫硂タタは琈チ囊ぃ琌"硔ゲは"硂杠иぃ弧ぶΩ硂碪и-
琌拦ぃ
畊ネㄤ龟さΩ基拜肈Τㄇㄆ矗ぱ琍近莲穕ぃ琵ウ基琌ㄇ诀篶莲穕и-
獽琵ウ基τぃノσ納基瞶パ膀セ琌籔ウセō竒犁瞷拜肈Τ闽㎡и竒眏秸ぱ琍近る矗基セㄓ箇代ゼㄓㄢだΤ1,000窾じの850窾じ緇瞷玱莲籯计κ窾じ籔箇代计畉1,500窾じ癸丁そㄓ弧硂1,500窾じ畉禯﹚琌そセō箇代の北Θセよ瞷拜肈τ瞷玱璶パㄓ┯踞и-
ㄆ临瞶Ё弧近そ莲籯τ琵ウ基琌弧璶ㄓ┯踞и-
谋眔ぃ莱赣虫そ莲薄猵
畊ネ临Τㄆ弧龟悔糤ㄢàぃ岿癸Ыず畒ㄇㄆㄓ弧ㄢà痷ぃ窥ㄢじじ︓κじ癸-
ぃ衡琌或癸ㄇ–る寥きじ┪る羱硂计ヘㄓ弧–を窥璶ぃぃ臮の碩τ龟悔┮ㄢàи疭眏秸ㄏ碩琌ㄢΘ-
粄龟悔计肂ㄢàぃ近そ箇衡基79%龟悔计肂琌じΤㄇㄆ穦粄计肂ぃи-
琌や近そ基79%ぱ琍近穐絏繷腨莲穕
畊ネ程и稱酵酵さΩぱ琍近基拜肈и╒Ω猳弚近基竒喷箇籔囊某癚阶埃︑パ囊︑パ囊ミ初睲贰и╬┏纯籔糂某坝酵祇谋產硂基拜肈螟酵眔胠┮и琌籔チ羛羛穦幅チの单現囊坝酵и纯钡牟チ羛ユ硄現郸祇ē眎簙┚某の羛穦朝胞糭某-
ㄢ︗и睲贰ボチ羛籔羛穦常穦やさΩ挡基某ぃ穦琵ぱ琍近基讽眎簙┚某睲贰ボチ羛琌竒筁癚阶硂挡阶朝挪狶某弧狦チ羛琌ヘは癸┏玥琌и-
チ囊碵薄腀稱猭и獺硂ぃ琌и-
碵薄腀稱猭τㄆ龟琌チ羛籔羛穦Ыず纯そ秨矗種ǎ朝胞糭某瞷ぃ畒Ы纯そ秨弧-
や挡基程チ羛虑兜秸琩弧チ種粄さΩ基ぃび蔼钡┮チ羛やさΩ基-
さΩ┮秸琩礚阶琌筿杠の龟秸琩琌1 000オΩ猳弚近ビ叫基瞒畄﹡チ盿6 000は癸基獺ンㄓミ猭Ы叫腀狦チ羛谋眔チ種璶-
硂或跌チ種碞莱赣钮6 000瞒畄﹡チ種ǎ挡猳弚近基讽礛さΩ硂ㄆン琵и秆瘤礛產ㄆ玡纯癬癚阶程∕临"锣浹"иぃ笵眎簙┚某琌チ羛ユ硄現郸祇ē硂拜肈∕﹚ы┪琌チ羛ㄤΘ程沧∕﹚
畊ネи獺チ羛"锣浹"セΘ挡ぱ琍近基硂某诀穦ぃセЫ硄筁ぃ筁и辨產やиê兜Τ闽る布虏虫タㄏノる布常琌ㄇ竒盽穎近沮チ羛秸琩-
琍戳穎︓ㄢΩぱ琍近讽竒盽穎狦琌硂妓杠玥–ぱ穎碞琌"伐"竒盽穎る布癸硂ㄇㄓ弧Τ伐腊и-
辨虑搭ㄇ竒盽穎近カチネ溃
畊ネセ略朝勉チ囊や㏄辩睶┥某舱〆穦矗挡ぱ琍近基某
眎簙┚某璓勉畊ネパ独岸藉某礷Ω矗и-
ぇ丁坝酵┮и谋眔璶続讽莱
琵иビチ羛そㄆ穨糤Μ禣拜肈ミ初チ羛璶―Τ緇そㄆ穨そ笆挡糤Μ禣狦そΤ┮莲穕杠ウ-
ビ叫基и-
碞穦み㎝糵稸硋兜矪瞶и-
σ納珹Τ闽そ狝叭キ莲穕の筁┕Μ痲キさΩぱ琍近ビ叫基и-
Ν戳絋⊿Τ磝搐絋龟计沮┮Τは癸ぱ琍近糤Μ禣渡τ硂琌渡そ秨初и-
Τи-
渡は癸近そ糤Μ禣戳и-
秈˙秆戈絋﹚さぱ琍近癩現猵Τ470窾じ莲穕の箇戳盢ㄓΤ莲穕薄猵и-
谋眔Τ惠璶穝σ納и-
渡チ羛ず场ㄇ秸琩粄斗钮チ種秆炊霉カチ猭の-
癸ぱ琍近狝叭キ種ǎ程∕﹚
チ羛秈︽チ種秸琩カチ常癸ぱ琍近狝叭稰骸種チ羛竒筁σ納筁兜粄⊿Τ瞶パは癸丁狝叭キカチ钡τ瞷莲穕そㄆ穨诀篶基ビ叫チ羛俱筁祘い⊿Τ"锣浹"硂瞷チ羛糵某ㄆ薄常琌糵稸㎝瞶醇醇∕﹚
谅谅畊ネ
纯胺Θ某璓勉畊ネи稱坚睲翴狦痷琌⊿Τ"锣浹"杠и赖叫チ羛ㄆ本隔娩れ狾"挡禣玂チネ"ぇ珹腹"狦莲籯獽禣"硂弧杠
谅谅畊ネ
腑瓣辆某璓勉畊ネ癸纯胺Θ某種ǎи獺ぃノ毙チ羛妓暗狦и-
粄莱妓暗и-
穦︑︽∕﹚妓暗
独岸藉某矗ㄢà癸翠炊霉渤糷カチ琌ンㄆτぃ琌и-
ㄇ某┮弧琌ンㄆ┪ぃ谋眔琌或ㄆи-
癸ㄢà碩猭ぃ琌咎稱禜弧硂琌计ヘτ琌и-
秸琩い睲贰カチ癸ㄢà碩琌钡疭琌狦竒犁诀篶瞷莲籯薄猵-
琌穦钡Τ60%钡70%砐АΤ硂贺種ǎи辨独岸藉某︑ョ莱チ種镣ぃ璶超硑ó弧ㄢà癸炊霉渤琌计ヘ
Τ闽Ω猳弚近基弧Τ6 000帽やは癸猳弚近基иゲ斗睲贰и-
癸êΩ基纯だ糵稸╯纯钮瞒畄跋某穦癸硂よ種ǎи獺瞒畄跋某穦琌チ種诀篶τи-
钮チ種種ǎ┮∕﹚ìボи-
钮チ種и-
⊿Τ┛跌せ硂よ種ǎи-
璶颗秖チ種のチ種膀娄だ猂眖穦は臫и-
荡癸Τ瞶パ獺Ω┮∕﹚琌タ絋
SECRETARY FOR TRANSPORT: Mr President, some Members of this Council seem to enjoy the merry-go-round. Virtually every time when proposals to revise fees and charges are tabled in this Council or when applications are submitted by public transport operators to increase their fares, we have to box and cox. The Administration does not begrudge Honourable Members the right to examine and scrutinize such proposals indeed, it is because we fully recognize this to be a legitimate discharge of their responsibilities that we in turn do our best to provide all the information that is necessary and can be made available to facilitate the process. However, after all the facts and figures have been provided and it has been clearly demonstrated that a public transport operator needs a fare increase because the company would otherwise sustain a loss, the stubborn adherence to indefensible principles on the part of some political parties and Members, and their continued attempts to frustrate fare adjustments is beyond comprehension and certainly not in the wider public interest. This scenario applies to the motion now before the Council pertaining to the Star Ferry Company Limited.
I fully share the Honourable Paul CHENG's views on the dangers of politicizing such cases.
Mr President, the Administration's fundamental policy on public transport is that all such services should be provided by the private sector without any subsidy. This formula has served Hong Kong well and we risk changing this at our peril. There have been many debates on this subject. The arguments and counter-arguments have been rehearsed over and over again and are well documented in the Hansard. Likewise, Members are fully aware of the consultative process and the criteria which the Administration has adopted in processing applications for fare increases. There is no need for me to reiterate these points again today. Instead, let me focus on the basic facts pertaining to the present application from Star Ferry. At this juncture, let me particularly thank the Honourable Mrs Miriam LAU and the Honourable CHAN Kam-lam for so clearly expressing the views of the Liberal Party and the Democratic Alliance for the Betterment of Hong Kong (DAB) respectively, and for so convincingly demonstrating why the fare increase sought is totally justified.
Let me now try to echo some of these points and explain why the Government likewise believes that the Star Ferry's application merits full support.
First, the Company's undertaking its commitment not to seek another fare increase in 1995 was subject to the caveat that its profits would remain at more or less the same level as forecast. As the Honourable Mrs Selina CHOW and the Honourable Mrs Miriam LAU have pointed out, there can be no misunderstanding since this was explicitly stated in the Star Ferry's letter dated 7 December 1994 which has been circulated to Members of this Council. Although the Company's forecast of its financial performance has not been accurate, the actual position today is that its audited accounts show that it made a small profit in 1994 but incurred a loss of $4.79 million in 1995. The Company has not therefore reneged on any promise in seeking an adjustment in fares now.
Second, the amount of the fare increase although this appears to be excessive in percentage terms, the real impact is better described and understood in monetary sums. About 90% of the 96 000 daily passengers will pay but 20 to 30 cents extra per trip. This is minimal and affordable. Senior citizens, comprising 6% of Star Ferry's commuters, will continue to enjoy free rides. It is also worth pointing out that there has been no protest from commuters and no adverse editorial comment on the proposed fare increase. Indeed, even with this increase, Star Ferry will still provide the cheapest public transport mode for cross-harbour services.
I am glad for the survey undertaken by the DAB and I thank them for their initiative as we confirm the public acceptability for the fare increase now sought.
Third, Star Ferry's performance the Company has consistently provided a high level of services, in both terms of adequacy and quality. Its ferries are clean and comfortable, and certainly good value for money. This is borne out by the fact that in the calendar year 1995, there were only three complaints.
Fourth, Star Ferry's own efforts to economize the Company has made conscious efforts to keep operating costs down. These include a bridge control automation programme completed in 1994 and special training for its coxswains on measures to safeguard the fender system, resulting in cost savings of $4 million per year. This clearly demonstrates Star Ferry's willingness to cut costs whilst striving to maintain its services to commuters. Unfortunately, even with such internal economy measures, total costs have still gone up, necessitating a fare rise.
Fifth, a pier development package some Members have asked why not grant Star Ferry pier development rights to help redress the situation, particularly since there is already a precedent vis-a-vis the Hong Kong and Yaumati Ferry Company (HYF). The answer is that we are not comparing like with like. In Star Ferry's case, modest adjustments in fares at regular intervals would suffice, but not so for HYF which requires a substantial injection of funds to make their services viable and even then they would require annual fare increases in line with inflation. In short, a transport justification to support a pier development package for Star Ferry has not been established.
Several Honourable Members have suggested that the Government should be more proactive in supporting ferry services, for example, by taking on some responsibilities for pier maintenance. I shall certainly follow this up. I also look forward to the motion debate on the review of long-term ferry policy which I understand the Honourable Mrs Miriam LAU has given notice to propose. This will provide an opportunity for a further exchange of views.
Mr President, Star Ferry's submission has been vetted very meticulously by the Subcommittee chaired by the Honourable Mrs Selina CHOW. May I record the Administration's appreciation to her and to all Members for their time and interest. Not surprisingly, and possibly because of the predetermined stance on the part of the Democrats and the Association for Democracy and People's livelihood to deny any fare increase, an unanimous view could not be reached.
May I add a personal observation on this point. I am surprised that the Honourable WONG Wai-yin has attempted to criticize the DAB for changing their minds. In fact, credit is due to them for their preparedness in analyzing the facts and coming to the right decision.
Mr President, we therefore have to be realistic and pragmatic. The very modest fare increase sought by Star Ferry is fully justified. I urge Honourable Members to vote against both resolutions.
㏄辩睶┥某璓勉畊ネ玌粂Τお"ō件獽ぃ璶睹耏ホ繷"独岸藉某眏疨ю阑チ羛ミ初иㄤ龟稰縀チ羛秈︽ê兜チ種秸琩ウ﹚靡︑パ囊猭琌タ絋τそ渤癸俱ンㄆ薄ョΤ﹚猭チ羛秈︽赣兜秸琩產癸硂ㄆ薄Τ耕睲贰猭и谋眔и-
莱赣癸ㄤ碙
件ず独岸藉某ㄤ龟癸禣ミ初ぃǎ眔讽绊﹚纯Ωそ秨籔╬弧チ囊纯籔︑パ囊碞禣拜肈坝酵τ-
讽琌種挡現┎禣ぃ筁-
瞷玱э跑種弧璶だ秨或禣穦や或禣碞ぃや弧籔チネΤ闽獽や籔チネ礚闽獽ぃや单窖摸弧杠и-
ぃ笵現┎弧狝Τ眏и-
ウ丁
羆τēぇи㊣苸セЫㄆは癸и硂兜某のは癸独岸某某硂妓痷痷タタ兜才戈セ竡穦玥続讽∕﹚
谅谅︗
Question on Mrs Selina CHOW's motion put.
Voice vote taken.
THE PRESIDENT said he thought the "Noes" had it.
Mr WONG Wai-yin and TSANG Kin-shing claimed a division.
PRESIDENT: Council shall now proceed to a division.
PRESIDENT: I would like to remind Members that they are now called upon to vote on the question that Mrs Selina CHOW's motion, moved in the capacity of Chairman of the Subcommittee, be approved. Will Members please register their presence by pressing the top button in the voting units and cast their votes by pressing one of the three buttons below?
纯胺Θ某叫拜笆某某某щは癸布
PRESIDENT: Of course, he or she may.
PRESIDENT: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed.
Mr Martin LEE, Mr SZETO Wah, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Mr LEE Cheuk-yan, Mr Andrew CHENG, Dr Anthony CHEUNG, Mr Albert HO, Mr LAU Chin-shek, Dr LAW Cheung-kwok, Mr LAW Chi-kwong, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr MOK Ying-fan, Mr TSANG Kin-shing, Dr John TSE and Mr YUM Sin-ling voted for the motion.
Mr Allen LEE, Mrs Selina CHOW, Dr David LI, Mr NGAI Shiu-kit, Mr LAU Wong-fat, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Dr LEONG Che-hung, Miss Emily LAU, Mr Eric LI, Mr Henry TANG, Dr Samuel WONG, Dr Philip WONG, Mr Howard YOUNG, Miss Christine LOH, Mr James TIEN, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Mr Paul CHENG, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr IP Kwok-him, Mr Ambrose LAU, Mr LEE Kai-ming, Mr LO Suk-ching, Miss Margaret NG and Mr NGAN Kam-chuen voted against the motion.
THE PRESIDENT announced that there were 25 votes in favour of the motion and 29 votes against it. He therefore declared that the motion was negatived.
Suspension of Standing Order 36(4)
DR LEONG CHE-HUNG: Mr President, I rise to seek your consent for me to move without notice a motion to enable the duration of the division bell for certain divisions to be shortened. On 1 March 1996, the House Committee unanimously agreed that I move such a motion to reduce to one minute the duration of the division bell in the event of further divisions being claimed in respect of the remaining motions to be moved under the Interpretation and General Clauses Ordinance at this sitting.
PRESIDENT: You have my consent.
DR LEONG CHE-HUNG: Mr President, I move that in the event of further divisions being claimed in respect of the remaining motions to be moved under the Interpretation and General Clauses Ordinance at this sitting, Standing Order 36(4) be suspended so that the President may order that the Council do proceed to each of such divisions immediately after the division bell has been rung for one minute.
Question on the motion proposed, put and agreed to
PRESIDENT: I now order that in the event of further divisions being claimed for the remaining motions to be moved under the Interpretation and General Clauses Ordinance at this sitting, the Council do proceed to each division immediately after the division bell has been rung for one minute.
MR WONG WAI-YIN to move the following motion:
"That the Ferry Services (The "Star" Ferry Company, Limited) (Determination of Fares) (Amendment) Order 1996, published as Legal Notice No. 40 of 1996 and laid on the table of the Legislative Council on 24 January 1996, be amended in section 2(1) by repealing, in the new item 4A, "$125" and substituting "$100"."
独岸藉某璓勉畊ネи笆某硄筁某ㄆ祘┮更и某
Question on Mr WONG Wai-yin's motion proposed and put.
Voice vote taken.
THE PRESIDENT said he thought the "Noes" had it.
Mr WONG Wai-yin and Mr LEE Wing-tat claimed a division.
PRESIDENT: Council shall now proceed to a division.
PRESIDENT: I would like to remind Members that they are now called upon to vote on Mr WONG Wai-yin's motion. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below?
PRESIDENT: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed.
Mr Martin LEE, Mr SZETO Wah, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Mr LEE Cheuk-yan, Mr Andrew CHENG, Dr Anthony CHEUNG, Mr Albert HO, Mr LAU Chin-shek, Dr LAW Cheung-kwok, Mr LAW Chi-kwong, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr MOK Ying-fan, Mr TSANG Kin-shing, Dr John TSE and Mr YUM Sin-ling voted for the motion.
Mr Allen LEE, Mrs Selina CHOW, Dr David LI, Mr NGAI Shiu-kit, Mr LAU Wong-fat, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Dr LEONG Che-hung, Miss Emily LAU, Mr Eric LI, Mr Henry TANG, Dr Samuel WONG, Dr Philip WONG, Mr Howard YOUNG, Miss Christine LOH, Mr James TIEN, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Mr Paul CHENG, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr IP Kwok-him, Mr Ambrose LAU, Mr LEE Kai-ming, Mr LO Suk-ching, Miss Margaret NG and Mr NGAN Kam-chuen voted against the motion.
THE PRESIDENT announced that there were 25 votes in favour of the motion and 29 votes against it. He therefore declared that the motion was negatived.
INTERPRETATION AND GENERAL CLAUSES ORDINANCE
MRS SELINA CHOW to move the following motion:
"That -
(1) the Land Registration Fees (Amendment) Regulation 1995, published as Legal Notice No. 35 of 1996 and laid on the table of the Legislative Council on 24 January 1996, be amended -
(a) in section 5 -
(i) by repealing subsection (3);
(ii) by repealing subsection (4);
(iii) by repealing subsection (5) and substituting -
"(5) Regulation 4(1) is amended by adding before paragraph (a) -
"(aa) item 10(1) of the Schedule for supplying a copy of a folio of a New Territories Land Registry register,".";
(b) by repealing section 6 and substituting -
"6. Schedule amended
The Schedule is amended -
(a) in item 7, by adding ", New Territories Land Registry register," before "or diazo copy";
(b) in item 10(1), by adding "or folio of a New Territories Land Registry register" after "Crown lease";
(c) in item 10(2), by adding ", or a hard copy from a microfilm," after "copy".";
(2) the Land Registration (Amendment) Regulation 1996, published as Legal Notice No. 39 of 1996 and laid on the table of the Legislative Council on 24 January 1996, be amended by repealing section 2(2)."
MRS SELINA CHOW: Mr President, I move the second motion standing in my name on the Order Paper. The motion seeks to amend the Land Registration Fees (Amendment) Regulation 1995 and Land Registration (Amendment) Regulation 1996. These Regulations, together with three others on Land Registration, have been studied by the Subcommittee I mentioned in my first motion today.
The five Land Registration Regulations under study aim to consolidate the land registration fee structure for the urban and New Territories, and to rationalize and update the existing fee structure for various services by the Land Registry on a cost recovery basis. It was put to us that the overall average increase is about 10%.
Having studied the additional information provided by the Administration on the proposed fee increases, Members consider that the Regulations involving policy issues on restructuring of registration fees cannot be thoroughly studied by the Subcommittee within the short scrutiny period allowed for subsidiary legislation. They agree that the Administration should justify in detail the proposals in the Regulations at the Legislative Council Panel on Planning, Lands and Works.
Members unanimously decide to:
(a) repeal the new schedule of fees under section 6 of Land Registration Fees (Amendment) Regulation 1995 (L.N. 35 of 1996) in the interest of time;
(b) make, as a consequence of such repeal, other amendments as are necessary to allow the existing fee structure to apply to both the urban and New Territories areas; and
(c) preserve as far as possible other Administration's proposals that are not inconsistent with the existing fee structure as reinstated.
Mr President, I beg to move.
Question on the motion proposed.
朝岸穨某璓勉畊ネ痷稱ぃ⊿Τ或某Τ砍届碞硂拜肈祇ē琌さぱ癩現箇衡び弘眒
闽爹砏ㄒ璹癸現┎Τ闽璹タΑそガ玡⊿Τヴ︙そ秨吭高㎝癚阶и稱ボチ囊ぃ骸︓祅舅厨のミ猭ЫΤ闽舱〆穦秈︽糵某и-
常⊿Τだ㎝ì镑丁╯Τ闽璹τ硑Θぃ瞶㎝ぃそキ薄猵
Τ闽舱〆穦╯硂兜璹粄Τ闽爹禣ノ穦疉の挡篶俱現郸拜肈珿種莱Τ闽ㄆ叭〆穦ず冈灿哪瓃砏ㄒ某硂琌璽砫糵某硂兜璹舱〆穦ず叭〆穦矗ユ厨ず種ǎΤ闽ㄆ叭〆穦ミ猭Ы砏购現の祘ㄆ叭〆穦パ丁候祏丁ずさと羭︽Ω疭穦某癚阶硂拜肈癚阶戳丁и-
栋い╯硂Ω禣ノ秸俱Τ紇臫┪э琂﹚現郸さぱ场だ畊硂Ω穦某Θ膀セ常谋眔現┎矗硂兜璹俱砰㎝玥⊿Τэ跑現郸︓Θ琌觅Θ禣玥琌ㄆи眏秸俱砰現郸⊿Τэ跑爹矪硂Ωэ膀セ琌蛤繦Θミ爹膀膀セ玥沮ノ︑︑倒︑ìぃ莱瞷が干禟薄猵のΤ闽兜Μ禣莱︑璽莲单兜玥硂琌現┎秆睦哪瓃硂Ω璹琌蛤繦筁┕ㄢΩΜ禣璹隔⊿Τэ跑
琂礛現郸⊿Τэ跑и-
Μ禣龟悔拜肈兜Μ禣いチ囊玥癸ㄢ兜Μ禣Τ疭種ǎㄤ龟せるら穦某虫ヲ昂某チ囊矗某材碞琌Τ闽爹禣璹現┎某рセΜ禣キэ购Μ禣チ囊粄硂э跑癸ㄇセ煤禣ぃそキ┮и-
某莱эㄢΜ禣種琌ぃ禬筁75窾じ穨爹禣莱﹚230じτ禬筁75窾じ穨爹禣玥﹚450じ
闽そ爹禣よ現┎穝某琌盢ㄤ﹚キ┮Τ虫︗そ爹禣常琌2,000じチ囊粄硂琌び秈э跑ぃだ瞶耕螟钡и-
某現┎蹦ノ亥秈Αэ家Α禬筁虫︗加そ爹禣﹚2,000じ現┎穝某虫︗┪加そ爹禣玥莱搭1,000じ
и┮弧硂ㄇ某せるら穦某秈︽癚阶現┎讽ョ氮莱钡膀祘拜肈さぱぃ蛤眖и某秈︽э狦現┎さぱ硄筁穝Μ禣荷е穝碞и矗某秸俱穝某ゼタΑ龟︽玡ご礛膥尿猽ノセ侣Μ禣爹禣だそ爹禣玥玂痙60じキ︓穝某蛤眖и矗某辅龟ゎ狦現┎硂妓┯空チ囊獽穦は癸㏄辩睶┥某某
谅畊ネ
MR RONALD ARCULLI: Mr President, I would like to seek a clarification from the Honourable Albert CHAN. I could not quite understand whether he is suggesting that if in fact the proposal of the Administration is passed today, he is actually asking the Administration not to enforce it but to follow the old regime which would have been revoked by passing of the resolution today.
朝岸穨某璓勉畊ネ甃ㄎ瞶某瞶秆琌タ絋沮и瞶秆瘤礛現┎さぱ砏ㄒ莉硄筁狦㏄辩睶┥某某砆∕ê或祅舅厨Μ禣碞琌Τぃ筁パ龟琁ら戳琌パ現┎︽現∕﹚現┎笲ノ︽現舦ぃミ龟琁︓穝Μ禣穝祅舅厨
狦現┎祔硂┯空タи┮弧и-
穦や現┎セ俱砰Μ禣硂疉のよΜ禣τぃ虫琌и┮矗のㄢ场だи-
琌癸赣ㄢ场だΤ疭種ǎ
MR RONALD ARCULLI: Mr President, I think in my seven years here, it is probably the first time that I have heard it suggested to the Government to actually not enforce something that is passed today.
In terms of the commencement period, the reason why we are dealing with the resolution today is that I believe there is in fact a time limit. If there is no objection by this Council, presumably the resolution would have gone ahead. But be that as it may, clearly the Democratic Party, if they choose to adopt this rather unusual line, so be it. For myself, and indeed for the Liberal Party, I do not think we can subscribe to breaking with tradition in encouraging the Administration not to enforce, or not to implement, any measures passed by this Council, whether we are talking about the resolution today or indeed any other laws. If in fact there is a clear mandate to the Administration for it to choose the implementation of an ordinance which quite often there is, be it in the Governor or be it with the relevant Secretary whether as the whole or part of any ordinance, then the Committee and this Council deliberating that particular bill or bills would have in fact taken that into consideration. And I think this is why the Subcommittee in its deliberations actually decided to recommend to this Council that we reject the current proposal but have made it quite clear to the Administration that they can come back in fact with a new proposal. And indeed the proposal put forward by the Democratic Party of a two-tier rather than the three-tier charge was not a proposal that the Administration thought was acceptable to them. But they simply considered it because Members put it forward. So what the Administration's position on the two-tier rather than three-tier proposal is, as a member of the Subcommittee, I am not in the know so to speak. So all I can say is that we need time to consider the policy implications in the proposal and that is why it was referred to the relevant Panel.
I disagree with the Honourable Albert CHAN when he says that there is no policy implication. There is policy implication, in fact, in the current proposal. Certainly from a legal point of view, I can see a difference in policy proposals. So I would urge Members to reject the proposal of the Administration.
Thank you, Mr President.
琖皇某璓勉畊ネㄤ龟甃ㄎ瞶某ぃノび候眎и獺ㄤ龟㏄辩睶┥某蛤兜某妓辨и-
は癸矗某┮チ囊穦は癸
ッ笷某璓勉畊ネи稱莱ㄢ翴甃ㄎ瞶某矗の拜肈のи-
琌硂拜肈ぃ碙ず叭〆穦∕﹚癸–讽現┎Τ猭ㄒ某┪∕某穦锣ユ〆穦硂暗猭и-
Τぃ種ǎㄤ龟и-
琌種硂暗猭硂琌琖皇某某ぃ筁拜肈琌癚阶–兜猭ㄒ∕某┪妮猭ㄒㄇ衡琌疉の現郸拜肈и-
Τぃ種ǎ甃ㄎ瞶某粄硂兜Μ禣э跑疉の現郸拜肈и-
粄ぃ疉の現郸τさぱΝ〆穦癚阶粄ぃ疉の現郸拜肈┮и-
谋眔硂Ω∕筁祘いぃ虫陪ボㄆ癸硂兜Μ禣某猭陪ボ-
癸硂兜Μ禣某琌疉の現郸拜肈渡安畒ㄆ粄硂兜∕某┪妮猭ㄒセō疉の現郸拜肈и獺-
ぃ穦甧砛ㄤ祏丁ず硄筁и谋眔硂Ω∕セōは琈ㄢ渡и谋眔甃ㄎ瞶某弧眔ゑ耕腨и-
ㄤ龟⊿Τ癸硂ボヴ︙種ǎ
谅谅畊ネ
朝挪狶某璓勉畊ネи-
硂Ω糵某筁祘い祇瞷現┎硂犁笲膀筁ㄢΤ讽伦玴緇┮и-
粄現┎硂犁笲膀瞷顶琿ぃ莱Μ禣秸俱︓Μ禣ず场だΤㄇㄆョ矗秸俱Μ禣诀旧璓场だΜ禣碩ㄏㄤΜ禣斗碩秸どㄓ綞碞俱砰糤碩笷璓10%и-
粄硂暗猭琌ぃび讽и-
竒筁糵稸σ納ぃ種現┎硂Ωビ叫
谅谅畊ネ
砏购吏挂現璓勉畊ネи谅砏ㄒ舱〆穦︗Θ╯㎝糵某1995爹禣ノ璹砏ㄒ1995爹穝禣ノ紀埃砏ㄒ1995爹禣ノ璹砏ㄒ1996璹砏ㄒ1995爹穝禣ノ紀埃砏ㄒ1996璹砏ㄒの1996爹璹砏ㄒ
礛τиぃ觅さぱ┮矗Τ闽1995爹禣ノ璹砏ㄒの1996爹璹砏ㄒ∕某硂兜∕某莉眔硄筁龟悔狦单紀埃爹矪兜璹禣ノ某硂ぃ穦瘆胊爹矪犁笲膀笲癸赣矪カチ矗ㄑ狝叭ョ穦盿ㄓぃ▆紇臫
и稱兜璹禣ノ某ヘ琌璶ㄏ爹矪蝴︑倒︑ì家Α笲矗ㄑΤ┮狝叭め惠―俱砰某琌ΜΘセノ︑が干禟膀娄硂兜現郸琌犁笲膀兵ㄒ膀セ玥るらセЫや硄筁犁笲膀兵ㄒ爹犁笲膀るΘミㄓ膀笲常琌宽眖硂兜現郸ㄒる㎝きる秸俱Μ禣ヘ碞琌璶硋˙Μ矗ㄑ狝叭场Θセ㎝玠搭が干禟さΩ某Μ禣⊿Τ熬瞒硂兜現郸
浪癚瞷Μ禣薄猵и-
祇瞷ㄤい琘ㄇΜ禣Τが瑉禟薄猵Τゲ璶璹沮Μ场Θセ玥ㄓ璹Μ禣琌辨ㄏΜ禣挡篶跑眔瞶搭ぶぃ狝叭Μ禣ぇ丁が瑉禟薄猵の莱硄等糤Μ禣硂妓ㄇΜ禣穦糤ㄇ玥蝴ぃ跑τ璶爹禣穦秸俱砰糤碩琌10%и-
粄硂糤碩ぃ穦癸硄等┪カチネ硑Θ紇臫
絋玂爹犁笲膀胺癩現笲и-
膀璹ヘ夹戈玻厨瞯瞷ヘ夹厨瞯琌10%τ硂琌キАヘ夹Τ–龟悔笷厨瞯穦祔蔼┪ヘ夹厨瞯狦Τ緇杠緇斗щ膀ずや膀ら盽秨やのщ戈э到狝叭璸购ず程沧ヘ琌璶矗蔼狝叭瞯㎝借狦さΩ某禣莉眔钡τせ︓箂箂箂–常沮硄等秸俱杠и-
︳璸ゼㄓ–犁笲膀笷戈玻厨瞯Τ9.5%オ
и稱さΩ秸俱Μ禣癸场だ禦芥加カチτē琌Τ┮眔痲穝爹Μ禣–﹙加禦芥惠璶や爹禣盢搭ぶ9%Τ闽琩禣ノ玥蝴ぃ跑┮и-
粄穝Μ禣ぃ穦紇臫チネ
︓さぱ∕某и-
粄ぃ钡硂兜∕某笻はノ︑玥癸琘ㄇ狝叭τēㄇ狝叭ㄏノ斗瑉禟ㄤㄏノ硂琌ぃそキ璝∕某莉眔硄筁玥瞷Μ禣穦蝴ぃ跑ョヘ玡场だ狝叭ㄏノ斗瑉禟ㄇ狝叭ㄏノぃТ到薄猵盢穦蝴
材硂兜∕某Τ笻爹矪沮犁笲膀兵ㄒ砞ミ犁笲膀弘穦紇臫赣矪崩︽穝璸购㎝穝狝叭
穝Μ禣箇璸穦爹矪盿ㄓ–ぱ3,390窾じ肂Μ紀埃穝Μ禣某盢穦钡紇臫爹矪犁笲膀癩現铆胺猵せ︓и-
箇犁笲膀穦瞷1,200窾じí硂ㄇ薄猵爹矪瞷σ納贺矗蔼瞯惫琁ㄒр场爹ゅン锣筿紇钩の矗ㄑ阁跋琩狝叭单璸购盢斗┑戳崩︽︓爹矪临斗現┎ョ丁钡祙戈
材硂兜∕某ㄏカチぃ耕稧禣ノㄉノ爹矪狝叭羭ㄒㄓ弧и-
某р爹矪程ㄏノ狝叭┮Μ禣ノ璶爹禣ノパ530じ搭︓420じ1995爹禣ノ璹砏ㄒ材8(b)兜砏﹚琩爹矪祅癘称а魁ら粁–セΜ禣150じ硂琌爹矪瞷矗ㄑ祅癘称а魁ら粁兜ヘ戈倒め匡拒и-
ヘ琌耕稧Μ禣矗ㄑ狝叭よ獽惠璶眖セ祅癘称а魁ら粁琩綷秖兜ヘ参璸┪︳基ノ硚めぃ筁∕某某盢俱紀埃硂妓爹矪盢礚猭耕稧Μ禣カチ矗ㄑ硂よ狝叭
朝岸穨某矗舱〆穦ずΤ兜某穦秈˙璹ㄏи-
某璶爹禣玂痙瞷ㄤいㄢ狦穨基75窾じ爹禣э450じ穨基75窾じ爹禣э230じそ爹禣だㄢ贺キΜ禬筁虫︗加そ爹禣琌2,000じ虫︗┪加そ爹禣琌1,000じ硂兜某舱〆穦い秈︽癚阶и-
˙粄某某琌︽の钡狦現┎さぱビ叫禣眔硄筁и-
盢穦秈˙冈灿σ納瓃璹某紇臫τи-
惠璶吭高︽現Ы玈眔︽現Ыуи-
穦р硂ㄢ兜璹Μ禣祅舅厨の矗ユセЫ糵某
и稱Ω矗眶︗某セЫ∕硄筁犁笲膀兵ㄒ┮沮玥琌膀眖禣ノΜいΜ矗ㄑ狝叭┮惠场Θセ癩叭〆穦ョ琌挪爹矪犁笲膀眖禣ノΜいΜΘセの纕临禪蹿у爹矪犁笲膀挤1.607货じ禪蹿赣矪э到狝叭戈セщ戈瞷某ㄏ爹矪礚猭ΜΘセ㎝纕临禪蹿カチ﹚穦稰螟瞶秆
某矗硂兜Μ禣纯砏购現の祘ㄆ叭〆穦い癚阶某矗さΝ秈︽癚阶τ現┎よ矗ㄑ冈灿戈㎝秆睦и谅ㄆ叭〆穦さΝ種и-
某琌ぃ疉の現郸э拜肈
畊ネ程и稱弧琌硂兜∕某穦癸爹矪犁笲膀笲篶Θぃ▆紇臫Τ穕赣矪狝叭借и某︗某ぃ璶や硂兜∕某谅谅
バ玊某畊ネи钮筁辩腳篴ネ祇ē稱坚睲┮弧杠碞钩蛤チ暗ネ種弧チ某眖Μ禣эㄢ钡琌弧璶竒筁︽現Ы硄筁ㄆ龟狦и-
さぱ硄筁獽ネ琌㎝チ暗ネ種狦チは癸㏄辩睶┥某某現┎Μ禣莉眔硄筁獽ぃ穦だΜ禣璶︽現Ы硄筁эㄢ讽硂碭ぱㄆ⊿Τ祇ネ筁
琖皇某и稱叫バ某坚睲,或琌㎝チ暗ネ種?
バ玊某畊ネи贾種莱朝岸穨某......
PRESIDENT: Mr TIEN, please resume your seat, I permitted Mr James TIEN to make a fairly long point in seeking elucidation from the Secretary, because he had not spoken earlier. Mr TIEN, do you wish to speak or do you wish to simply seek elucidation. In future, when seeking elucidation, be brief and concise on the point that you wish to seek elucidation.
MR JAMES TIEN: Mr President, ......
PRESIDENT: Are you seeking elucidation or are you speaking?
MR JAMES TIEN: I am responding to Mr Martin LEE's point.
PRESIDENT: I did not permit Mr Martin LEE to speak.
MR JAMES TIEN: I see. You have not permitted him to speak, so I do not have to respond to him. Is that right?
PRESIDENT: I was asking you a question. Were you making a speech or were you seeking elucidation?
MR JAMES TIEN: I am seeking elucidation from Mr LEUNG.
砏购吏挂現畊ネи獺и-
さぱ┮癚阶琌現┎ユミ猭Ы闽爹砏ㄒΜ禣糤碩㎝某某祔∕莱碞現┎某σ納︓ネら戳и獺碞琌某拜肈┮и-
セゅン弧眔睲贰硂兜砏ㄒ穦パ爹矪矪舅厨祅ら戳ネら戳τぃ琌弧さぱ硄筁ぱ獽ネらи-
临穦舅厨祅ネら戳
PRESIDENT: I would have to reconsider whether or not to permit Members to seek elucidation after speeches. Elucidation may only be sought while a Member is speaking and if that Member is prepared to yield. And as it is now, points of elucidation have been made as a guise for making speeches and these shall not be permitted in future.
MRS SELINA CHOW: Mr President, I was hoping that, in view of the unanimous recommendation on the part of the Subcommittee endorsed by the House Committee, we were not going to debate the resolutions today. Unfortunately, I think that events have had it that we are drawn into a sort of debate.
But I would like to draw the attention of Members to the fact that the unanimous recommendation of the Subcommittee to the House Committee, which was accepted by the House Committee, was in fact that the Administration should justify in detail the proposals in the Regulations at the relevant Legislative Council Panels. In other words, it was not just for the Panels to be looking at whether the Regulations are in line with policy or not. That is not the only purpose. The purpose is for the Administration to justify in detail the proposals in the Regulations. I submit that this had not been achieved in today's Panel meeting.
Going a little into the point about policy, I know that we have different views as to whether the Regulations are in line with policy. But I urge Members to stick to the original recommendation of the Subcommittee as well as the endorsement of the House Committee, and that is, we need more time to look at these Regulations.
Just to put to Members some of the facts contained in the Regulation, the Administration told us that there are certain decreases in fees. I am telling Members that there are items in which fees are increased from $90 to $210, from $60 to $2,000, from $520 to $2,000, and from $10 to $50. And this is by no means the minority. In fact, there are increases in the majority. So what happens is that under one of the items, that is, item 1, we have a deduction of $29.3 million in revenue. But as a total, the net gain, as far as the Administration is concerned, is $33.9 million. In other words, even though there is a decrease in a certain item, all the other items have increases that made up for the decrease plus some more. In fact, the result is a decrease in one item and increases in the majority of items, some of which are five-fold, four-fold. That is why, we feel in the Subcommittee, it is extremely difficult for the Subcommittee to recommend. That is why we feel that time is needed. That is why we feel that the Panel should be looking at it.
As far as the Panel is concerned, I think we know that and here I must pay a compliment to the Land Registration Trading Fund General Manager they (the Trading Fund) have been very professional and they have abided by certain commercial principles in administering the Fund. But the fact of the matter is, and I do not know whether this fact is clear, at the end of this financial year, they will have achieved an 14.7% return on their average net fixed assets. This surpasses the guiding 10% or whatever was quoted by Mr LEUNG earlier. They told us that it is an overall 10% increase. I have already shown Members that it is not. On average they could argue that so many items, so much money at 10%, but in some of the items, we are looking at four-fold, five-fold increases. Also I think that the Government, on top of the 14.7% return on fixed assets, is also making interest from the fund that it has lent to the Trading Fund at prime rate. On top of that, I think that Members would probably realize you know when you are talking about a fee which increases from $60 to $2,00 there has been a restructuring of the fee in terms of the basis on which to calculate a certain fee.
Now all these things, I think, need to be looked at in much more detail. The Administration's argument, I must let Members know, for the increases is that such increases only affect professionals and not livelihood. They actually reiterated this in the Panel. It has been put to the Administration in the Subcommittee and also today in the Panel that in fact all professional fees which are expenses incurred on behalf of the client would be passed directly onto the client. And you cannot say that such increases, four-fold increases, five-fold increases would not impact on consumers. Such arguments certainly cannot stand.
What we are in fact arguing that the Administration should do is to give us more time. They can come back next week or the week after. But I think that what is clear is that there are many many question marks. In fact they have actually shifted the goal posts. The Admininstration can argue that whether it is to charge on the basis of a page or the entire document, or whether that has nothing to do with policy. But it is certainly a deviation from past practices.
I urge Members to give the Subcommittee or whichever Subcommittee Members choose to designate the task to enough time to look at it, so that the people who had ultimately to pay the fees who are actually the consumers will not be short-changed. We want more time and we think that this is important, that it should be given to the Subcommittee and to Members. I think in fairness to the House Committee, I do not think the thinking, the views or the arguments have actually been adequately put even to the House Committee. And I think that this is most unfair to Members as a whole. So I urge Members to support my motion to repeal. Thank you.
Question on the motion put.
Voice vote taken.
THE PRESIDENT said he thought the "Ayes" had it.
Mr Albert CHAN and Mr LEE Wing-tat claimed a division.
PRESIDENT: Council shall now proceed to a division.
PRESIDENT: I would like to remind Members that they are now called upon to vote on Mrs Selina CHOW's second motion on the Land Registration Fees (Amendment) Regulation 1995 and Land Registration (Amendment) Regulation 1996. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below?
PRESIDENT: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed.
Mr Allen LEE, Mrs Selina CHOW, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Dr LEONG Che-hung, Mr Frederick FUNG, Mr Henry TANG, Mr Howard YOUNG, Mr James TIEN, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr CHEUNG Hon-chung, Mr David CHU, Mr IP Kwok-him, Dr LAW Cheung-kwok, Mr LEE Kai-ming, Mr Bruce LIU, Mr MOK Ying-fan, Mr NGAN Kam-chuen and Mr YUM Sin-ling voted for the motion.
Mr Martin LEE, Mr SZETO Wah, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LAU, Mr LEE Wing-tat, Mr Eric LI, Mr Fred LI, Mr James TO, Dr Samuel WONG, Dr Philip WONG, Dr YEUNG Sum, Mr WONG Wai-yin, Miss Christine LOH, Mr LEE Cheuk-yan, Mr Andrew CHENG, Dr Anthony CHEUNG, Mr CHOY Kan-pui, Mr Albert HO, Mr LAU Chin-shek, Mr LAW Chi-kwong, Mr LEUNG Yiu-chung, Mr LO Suk-ching, Miss Margaret NG, Mr TSANG Kin-shing and Dr John TSE voted against the motion.
THE PRESIDENT announced that there were 22 votes in favour of the motion and 28 votes against it. He therefore declared that the motion was negatived.
INTERPRETATION AND GENERAL CLAUSES ORDINANCE
MRS SELINA CHOW to move the following motion:
"That the Lifts and Escalators (Safety) (Fees) (Amendment) Regulation 1996, published as Legal Notice No. 42 of 1996 and laid on the table of the Legislative Council on 24 January 1996, be repealed."
MRS SELINA CHOW: Mr President, I move the third motion standing in my name on the Order Paper. The motion seeks to repeal the Lifts and Escalators (Safety) (Fees) (Amendment) Regulation 1996. These Rules have been studied by the same Subcommittee mentioned in my first motion.
Members of the Subcommittee note that the Lift and Escalator Contractors Association considers that some of the proposed fees are high but can be justified with improved productivity. In general, the proposed fees are acceptable. However, some Members are concerned that the proposed fee increases on the contractors will eventually be transferred to the consumers and that there is cross-subsidization in the proposed fees. Members decide, by a majority vote, to repeal the Regulation.
Mr President, I beg to move.
Question on the motion proposed.
独綺笽某璓勉畊ネ硂Μ禣砏ㄒ琌┯坝㎝祘畍Μ爹禣ノτ硂兜Μ禣琌爹戳丁煤ユ礚斗–やи-
粄硂兜砏ㄒ癸チネ┪硄等ㄤ龟⊿Τ或紇臫τ碩ョぃ┯坝癸め禣虑┮и-
は癸㏄辩睶┥某某
砏购吏挂現璓勉畊ネи癑み辨セЫ︗某穦癸紀埃1996ど诀の︑笆辫禣ノ璹砏ㄒ某щは癸布
硂兜砏ㄒΞ秸俱ㄢ摸禣ノ材摸琌ど诀祘畍︑笆辫祘畍ど诀┯坝の︑笆辫┯坝爹禣ノ材摸琌烩ど诀の︑笆辫浪琩の代刚靡禣ノ
獺︗某常笵ど诀┪︑笆辫祘畍┪┯坝斗快瞶爹Ωр-
Τ闽爹魁ず传杠弧爹禣琌-
币穨┮惠掸禣ノど诀┪︑笆辫祘畍爹禣ノ糤碩ㄤ龟琌籔硄等瞯才ョ︽ぇ"ノ︑"の"ìΜΘセ"玥︓┯坝爹禣ノ糤碩礚粄琌蔼硄等硂琌Τだ瞶パ現┎絋玂ビ叫爹才砏﹚惠璶Τ闽初跌诡琌兜糤碩斗σ納秈︽跌诡初才籔禣ノ籔穨ず竒犁Θセゑ耕и-
某糤碩伐稬﹚ぃ穦癸ヴ︙篶Θ璽踞糤碩癸俱砰硄砯勘等紇臫稬ぃì笵ョぃ疉のチネ癸タ盽笲ど诀┪︑笆辫ㄓ弧斑璶﹚戳煤禣ノ琌沮砏ㄒ材26(1)(b)兵帽祇靡禣ノ硂兜Μ禣某糤碩琌パ210じ糤︓220じ–斗煤ユ10じ
и临璶干翴и-
纯吭高穨ず舱麓の盡穨刮砰-
Ч⊿Τは癸某禣ノ秸俱紀埃璹砏ㄒョボи-
璶ㄏノ祙窥ㄓ瑉禟êㄇ穨ず犁τぃ惠璶現┎戈┯坝程и璶Ω玃叫︗某щ布は癸硂兜某
Question on the motion put.
Voice vote taken.
THE PRESIDENT said he thought the "Noes" had it.
Mr James TIEN claimed a division.
PRESIDENT: Council shall now proceed to a division.
PRESIDENT: I would like to remind Members that they are now called upon to vote on Mrs CHOW's third motion to repeal the Lifts and Escalators (Safety) (Fees) (Amendment) Regulation 1996. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below?
PRESIDENT: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed.
Mrs Selina CHOW, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Mr Henry TANG, Mr Howard YOUNG and Mr James TIEN voted for the motion.
Mr Martin LEE, Mr SZETO Wah, Dr LEONG Che-hung, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LAU, Mr LEE Wing-tat, Mr Eric LI, Mr Fred LI, Mr James TO, Dr Samuel WONG, Dr YEUNG Sum, Mr WONG Wai-yin, Miss Christine LOH, Mr LEE Cheuk-yan, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr Andrew CHENG, Dr Anthony CHEUNG, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr Albert HO, Mr IP Kwok-him, Mr LAU Chin-shek, Dr LAW Cheung-kwok, Mr LAW Chi-kwong, Mr LEE Kai-ming, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr LO Suk-ching, Mr MOK Ying-fan, Miss Margaret NG, Mr NGAN Kam-chuen, Mr TSANG Kin-shing, Dr John TSE and Mr YUM Sin-ling voted against the motion.
THE PRESIDENT announced that there were seven votes in favour of the motion and 41 votes against it. He therefore declared that the motion was negatived.
INTERPRETATION AND GENERAL CLAUSES ORDINANCE
MRS SELINA CHOW to move the following motion:
"That the Minor Employment Claims Adjudication Board (Fees) (Amendment) Rules 1996, published as Legal Notice No. 67 of 1996 and laid on the table of the Legislative Council on 7 February 1996, be repealed."
MRS SELINA CHOW: Mr President, I move the fourth motion standing in my name on the Order Paper. The motion seeks to repeal the Minor Employment Claims Adjudication Board (Fees) (Amendment) Rules 1996. This set of Rules, which was tabled in the Legislative Council on 7 February 1996, have been studied by the same Subcommittee referred to in my first motion.
The Minor Employment Claims Adjudication Board was established in December 1994 and the proposed fee increase of about 10%, with an estimated additional revenue of $6,000 per annum, is on the basis of the Government Consumption Expenditure Deflator movement from 1994-95 to 1995-96, pending a detailed costing review in the next financial year. The Subcommittee queries whether the "full-cost recovery" principle should be strictly observed in these minor employment claims not exceeding $5,000 per claimant, mostly lodged by small employees. Members are of the opinion that this should more be a service for the public; and unanimously decide to repeal the Regulation.
Mr President, I beg to move.
Question on the motion proposed.
独綺笽某璓勉畊ネ㏄辩睶┥某穦蔼砍и-
チ囊や硂兜某肂羱筍纕ヲ掉矪禣ノ璹砏玥臮竡琌沟肂羱筍τ斗┕ヲ掉矪и-
粄硂摸ヲ掉矪莱カチ矗ㄑ狝叭沟砆ろ硄┪安戳单ч衡羱筍τㄓヲ掉矪-
ㄤ龟竒琌甡現┎ぃ薄临虑ΜΘセ竡ㄏ甡ぶΜ掸窥龟螟钡и-
や㏄辩睶┥某某
毙▅参膚璓勉畊ネ肂羱筍纕ヲ掉矪るΘミ疉のき┪–纕蹿兜ぃ禬筁5,000じ肂羱筍纕矗ㄑе倍㎝稧﹜ヲ掉狝叭篒︓せるらヲ掉矪糵掉1 890﹙
肂羱筍纕ヲ掉矪禣ノ砏玥璹ヲ掉矪秈︽猭祘斗Μ禣禣ノ︑龟琁ㄓゼΤ秸俱
現┎玥琌ゲ斗竒盽浪癚Μ禣и-
せるら盢1996肂羱筍纕ヲ掉矪禣ノ璹砏玥矗ユミ猭Ы凝某盢Τ闽Μ禣矗蔼10%
и-
︳璸瞷パきじ︓50じΜ禣Μ羆Θセ场だ某Μ禣碩パきà︓きじぃ单ョぃ筁琌蝴瞷︽Μ禣龟悔基
иゲ斗眏秸琌肂羱筍纕ヲ掉矪禣ノ砏玥材3兵璹叭ヴ搭Μ祇临┪┑筐Μ禣ノ纕竒蕾螟瞶パビ叫僚煤ユ禣ノヘ玡ゎヲ掉矪ゼ钡ヴ︙硂摸ビ叫
某い糤Μ禣荡癸ぃ穦紇臫カチ渤ネョぃ穦癸硄砯勘等盿ㄓ捣睝紇臫
и略叫セЫ某∕硂兜某
谅谅畊ネ
Question on the motion put and agreed to.
ADJOURNMENT AND NEXT SITTING
PRESIDENT: In accordance with Standing Orders, I now adjourn the Council until 2.30 pm on Wednesday, 13 March 1996.
Adjourned accordingly at twenty-seven minutes past Seven o'clock.
LEGISLATIVE COUNCIL - 6 March 1996
40
ミ猭Ы せるせら
LEGISLATIVE COUNCIL - 6 March 1996
1
ミ猭Ы せるせら
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