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1 HONG KONG LEGISLATIVE COUNCIL -- 15 January 1992 HONG KONG LEGISLATIVE COUNCIL -- 15 January 1992 1

OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 15 January 1992

The Council met at half-past Two o'clock

PRESENT

THE CHIEF SECRETARY

THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P. (Presided at the sitting in the absence of the Deputy President)

THE FINANCIAL SECRETARY

THE HONOURABLE NATHANIEL WILLIAM HAMISH MACLEOD, C.B.E., J.P.

THE ATTORNEY GENERAL

THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P.

THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P.

THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE MRS RITA FAN HSU LAI-TAI, O.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P.

THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P.

THE HONOURABLE DAVID LI KWOK-PO, O.B.E., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E.

THE HONOURABLE TAM YIU-CHUNG

THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P.

THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, J.P.

THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, M.B.E., J.P.

THE HONOURABLE MRS MIRIAM LAU KIN-YEE, J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P.

THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E.

THE HONOURABLE PETER WONG HONG-YUEN, J.P.

THE HONOURABLE ALBERT CHAN WAI-YIP

PROF THE HONOURABLE EDWARD CHEN KWAN-YIU

THE HONOURABLE MOSES CHENG MO-CHI

THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P.

THE HONOURABLE CHEUNG MAN-KWONG

THE HONOURABLE CHIM PUI-CHUNG

REV THE HONOURABLE FUNG CHI-WOOD

THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA

DR THE HONOURABLE HUANG CHEN-YA

THE HONOURABLE SIMON IP SIK-ON, J.P. DR THE HONOURABLE LAM KUI-CHUN

DR THE HONOURABLE CONRAD LAM KUI-SHING THE HONOURABLE LAU CHIN-SHEK

THE HONOURABLE LEE WING-TAT

THE HONOURABLE GILBERT LEUNG KAM-HO

THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING

THE HONOURALBE MAN SAI-CHEONG

THE HONOURABLE NG MING-YUM

THE HONOURABLE STEVEN POON KWOK-LIM THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN

THE HONOURABLE JAMES TO KUN-SUN

DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG

DR THE HONOURABLE YEUNG SUM

THE HONOURABLE HOWARD YOUNG

THE HONOURABLE ZACHARY WONG WAI-YIN

ABSENT

DEPUTY PRESIDENT

THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., Q.C., J.P. THE HONOURABLE SZETO WAH

DR THE HONOURABLE LEONG CHE-HUNG

THE HONOURABLE VINCENT CHENG HOI-CHUEN

THE HONOURABLE MISS EMILY LAU WAI-HING

PROF THE HONOURABLE FELICE LIEH MAK, O.B.E., J.P.

IN ATTENDANCE

MR GRAHAM BARNES, C.B.E., J.P.

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS

MR MICHAEL LEUNG MAN-KIN, C.B.E.,J.P.

SECRETARY FOR TRANSPORT

MR ALISTAIR PETER ASPREY, O.B.E., A.E., J.P. SECRETARY FOR SECURITY

MRS ELIZABETH WONG CHIEN CHI-LIEN, I.S.O., J.P. SECRETARY FOR HEALTH AND WELFARE

MR CHAU TAK-HAY, J.P.

SECRETARY FOR TRADE AND INDUSTRY

MR JAMES SO YIU-CHO, O.B.E., J.P.

SECRETARY FOR RECREATION AND CULTURE

THE CLERK TO THE LEGISLATIVE COUNCIL MR LAW KAM-SANG

Papers

The following papers were laid on the table pursuant to Standing Order 14(2): Subject

Subsidiary Legislation L.N. No.

Road Traffic (Driving Licences) Regulations

(Amendment of Fourth Schedule) Order 1991................ 450/91

Junk Bay Water Control Zone Statement of Water

Quality Objectives (Amendment) Statement 1991............ 451/91

Port Shelter Water Control Zone Statement of

Water Quality Objectives (Amendment)

Statement

1991............................................................ 452/91

Southern Water Control Zone Statement of Water

Quality Objectives (Amendment)

Statement

1991............................................................ 453/91

Tolo Harbour and Channel Water Control Zone

Statement of Water Quality Objectives

(Amendment) Statement 1991....................................... 454/91

Statement of Water Quality Objectives (Deep Bay

Water Control Zone) (Amendment)

Statement

1991............................................................ 455/91

Statement of Water Quality Objectives (Mirs Bay

Water Control Zone) (Amendment)

Statement

1991............................................................ 456/91

Pneumoconiosis (Compensation) (Computation of

Earnings) (Amendment) Regulations 1991...................... 457/91

Trustee Ordinance (Amendment of Second Schedule)

Order

1991................................................................. 458/91

Designation of Libraries (Regional Council Area)

(No. 3) Order 1991...................................................... 459/91

Pilotage (Dues) (Amendment) Order 1991............................ 460/91

Public Health and Municipal Services (Public

Pleasure Grounds) (Amendment of Fourth

Schedule) (No. 9) Order 1991....................................... 461/91

Chinese Permanent Cemeteries (Amendment)

Rules

1991.................................................................. 462/91

Fixed Penalty (Traffic Contraventions)

(Amendment) (No. 2) Ordinance 1991

(Commencement) Notice 1991...................................... 463/91

Road Traffic (Amendment) (No. 4) Ordinance 1991

(Commencement) Notice 1991...................................... 464/91

Port Control (Public Water-Front) Order 1992..................... 1/92

Shipping and Port Control Ordinance (Exemption)

(Amendment) Notice 1992............................................ 2/92

Fish Culture Zone (Designation) (Amendment)

Order

1992................................................................. 3/92

Shipping and Port Control (Specification of Areas)

(Amendment) Notice 1992............................................ 4/92

Sessional Paper 1991-92

No. 36 -- The Open Learning Institute of Hong Kong

Annual Report 1990-1991

CHIEF SECRETARY: Good afternoon, Members. I am chairing this meeting this afternoon because the Deputy President is indisposed.

Address by Member

The Open Learning Institute of Hong Kong Annual Report 1990-1991

MR PETER WONG: Sir, as Deputy Chairman of the Council of the Open Learning Institute (OLI) of Hong Kong, I am pleased to have the honour of presenting to you the second

annual Report and Audited Accounts of the Institute for the year ended 31 March 1991 which are tabled before this Council today.

The report gives a comprehensive account of the Institute's achievements during the period in question, but I wish to highlight for you some of the major milestones of 1990-91, which was the first full year of the OLI's existence, and a year of development and growth.

The continued enthusiasm of Hong Kong citizens for degree level study by open and distance learning is evidenced by the increasing numbers of students enrolled in the Institute in the year under review: from 9 500 in April 1990 to 13 000 in October 1990. In order to cater for this demand, the Institute increased the number of course places on offer to 25 835 and employed 1 038 part-time tutors to deliver the courses. In the first academic year, all courses were offered in the English language,

but plans were well advanced for launching the first Chinese courses in October 1991. Financial sufficiency

In June 1990, the Institute moved into five floors of the Trade Department Tower in Mong Kok which enabled all but one section of the OLI to be housed under one roof for the first time. Open access student facilities including the library, which offer self study space, personal computer and science laboratories, were located at the Institute's headquarters. The Institute continues to rent from other secondary and tertiary institutions to fulfil the requirements for evening and weekend teaching and laboratory accommodation. Although conveniently situated, the premises are

expensive to rent: rental of the Trade Department Tower and warehouse accounted for $13.7 million or 12% of the expenditure in the year in question.

A second major event of the year under review was the Institutional Review conducted by the Hong Kong Council for Academic Accreditation in December 1990. The report of the review panel complimented the Institute on the progress it had made towards providing a suitable distance learning environment for degree study in Hong Kong, particularly in respect of its stringent academic quality control mechanisms; and I am pleased to report that accreditation of its degree programmes is scheduled for 1992.

A further focus of activity during the year was the preparation of the Institute's Development Plan for the next five years. The plan was prepared on the basis of the Institute's commitment to offer courses leading to five Bachelor degrees -- the

degrees of Bachelor of Arts in Western Arts and Humanities, Bachelor of Arts in Chinese Arts and Humanities, Bachelor of Social Sciences, Bachelor of Business Administration with specialist strands in Accounting, Business Information Systems, Human Resources Management and Marketing, and Bachelor of Science in Applied Computing, Electronics, Engineering Mechanics, Materials and Design, Mathematics and Environmental Studies. The need to achieve financial self-sufficiency by 1993-94 dictated the Institute's proposed strategies for making higher education available to all those Hong Kong residents aspiring to it, regardless of gender, race or previous qualification,

without sacrificing the level and quality of its courses or its support to students.

Government subvention to the Institute in 1990-91 covered only 36.4% of recurrent expenditure in comparison with 59.0% in 1989-90, while direct costs as a percentage of the tuition fees were reduced from 65.3% to 48%, thanks to economies of scale and tight budgetary control. To achieve this cost-effective higher education, the OLI remains under constant pressure to attract large numbers of students. It cannot however afford to replace the diminishing and ultimately disappearing government subvention by fee increases alone, and measures to seek sponsorship for various

projects will be implemented in the coming years.

Academic achievement

Studying for a degree by distance learning can be a lonely process for the adult learner, and the achievement of the ultimate goal of a Bachelor degree may last up to six or more years in the future. The OLI expects its first graduates in 1993, but in 1990 it held its first Outstanding Students Awards ceremony. The wide range of educational background and occupations of OLI students and the challenges of

studying with the OLI created much interest in the media which helped OLI to gain proper recognition as a full member of the tertiary institutions community in Hong Kong.

The year under review also marked the departure of the founding Director, Professor Don SWIFT and the Associate Director (Administration), Mr Gerald BURKE. The success of the Institute in its first two years bears witness to the dedication and commitment of all its full and part-time staff whose vision and hard work ensured the growth and development that have been achieved. We must pay tribute here to all the early pioneers, as the Institute faces the growing challenge of attracting and retaining good staff in an increasingly competitive environment.

Sir, I am confident that the international reputation of OLI as a provider of quality higher education in Hong Kong will continue to grow as it builds on the achievements detailed in this report.

Oral answers to questions

Traffic congestion in the northwest New Territories

1. MR NG MING-YUM asked (in Cantonese): In view of the fact that the existing road network covering the northwest New Territories and linking this part with Tsuen Wan, especially the Tuen Mun Highway and the parts of Castle Peak Road around Sam Shing Estate and Hung Shui Kiu, is frequently congested particularly during rush hours, will the Government inform this Council:

(a) whether consideration has been given to improving the traffic flow on the relevant sections of these roads through various short-term measures; if so, what progress has so far been made on these considerations;

(b) whether consideration would be given to relaxing the speed limit on Tuen Mun Highway so that the flow of traffic along this road can be improved; and

(c) what progress has been made on the feasibility study to construct the country park section of Route 3 as a longer term solution to the congestion problem?

SECRETARY FOR TRANSPORT: Sir, we are committed to improving the road system in the northwest New Territories to meet present and future traffic demands. To this end, several major road construction projects are in hand. These include:

(a) first, the final section of the New Territories Circular Road from Au Tau to Fan Kam Road, for completion by July this year;

(b) second, the Yuen Long/Tuen Mun Eastern Corridor, for completion by October 1993; and

(c) third, the Yuen Long Southern By-pass, for completion by June 1994.

This means that by mid-1994, the Tuen Mun Road will be linked to the New Territories Circular Road via new dual two-lane expressways, which will greatly increase road capacity.

In addition, a number of short-term road improvements are in hand. These include:

(a) first, widening the section of Castle Peak Road adjacent to Sam Shing Estate for completion by mid-1993; and

(b) second, introducing by stages some 20 local improvement schemes for the Castle Peak Road between Tuen Mun and Yuen Long, work on which has just started. These include road widening, traffic re-routing, junction modifications and traffic signal timing adjustments. On completion at the end of this year, these measures will relieve traffic congestion considerably, particularly in the section of road near Hung Shui Kiu.

In addition, the construction of a new dual two-lane road fronting Belvedere and Bayview Gardens in Chai Wan Kok, will relieve congestion in a section of Castle Peak Road. Work will start by the end of this year for completion in 1994.

As regards the speed limit in Tuen Mun Road, a recent review has concluded that this might be relaxed from the existing 70 km to 80 km per hour at certain sections. Detailed proposals will be put to the district boards shortly for advice.

Finally, Sir, as regards the construction of the Country Park Section of Route 3, a feasibility study was completed in early 1990, following which an alignment from Au Tau through the Tai Lam Country Park to Ting Kau was selected. The programme for constructing the road is now being reviewed in the context of the updating of the Second Comprehensive Transport Study. We also intend commissioning a financial

consultancy to consider how best this large scale project may be financed, including the possibility of privatization. The results of this consultancy should be available later this year.

MR NG MING-YUM (in Cantonese): The Secretary mentioned in the sixth paragraph of his reply that the Administration intended to commission a financial consultancy to undertake a feasibility study. May I ask further if this feasibility study report

by the financial consultancy will be released when it is completed? And if it goes for privatization, will the Administration carry out a public consultation on the details of works to be undertaken and will it fully consider the views of the public before it comes to any decision?

SECRETARY FOR TRANSPORT (in Cantonese): Sir, as regards any project that will affect any particular area, the Administration will, as a normal practice, adequately consult those affected. Wide consultations in relation to financial arrangements and feasibility will be carried out, we hope, when the financial feasibility study on the northern section of Route 3 is completed, after which we would decide whether we would proceed and if so how we are going to do it.

MR LAU WONG-FAT (in Cantonese): Sir, will the Administration consider speeding up the project of widening the section of Castle Peak Road between Tuen Mun and Tsuen Wan so as to relieve traffic congestion?

SECRETARY FOR TRANSPORT (in Cantonese): Sir, as I have said, as regards short-term road improvements for Castle Peak Road, works on a number of projects have commenced. They include road widening, traffic re-routing, junction modifications and traffic signal timing adjustments. Furthermore, we hope that the widening of the section of Castle Peak Road between Tsuen Wan and Tuen Mun will start shortly. Subject to availability of resources, works will commence as soon as possible.

MR LEE WING-TAT (in Cantonese): Sir, the Country Park Section of Route 3 will contribute a lot in terms of traffic improvements to the New Territories West, Kwai Tsing and Tuen Wan. There are also requests made by a number of Members and residents' groups that the Country Park Section of Route 3 and the Airport Core Project be completed at the same time. Will the Administration inform this Council, apart from the need to further study the financial arrangements for the Country Park Section, what other problems it has to further look into and whether they can be resolved?

SECRETARY FOR TRANSPORT (in Cantonese): Basically, the northern section of Route 3 is outside the ambit of the Airport Core Project and should be considered separately.

Of course, what the Administration has to take into account is the financial implications as a whole and the availability of resources to undertake the project.

First of all, we need to study whether the road network of the project is feasible; second, we need to decide the financial arrangements and third, we should ascertain whether these financial arrangements are acceptable to the public. We have already come to a preliminary decision on this, that is, we will start with the mapping out of the road network. Then we will forecast the possible improvements to the traffic flow as a result of the project and finally we will have a preliminary review to see if we can have more details of the financial position before a financial study is being undertaken. We hope these steps will be completed in the next few months before a tentative decision is made.

MRS MIRIAM LAU: Sir, my question has partly been asked by Mr LAU but I would wish to follow up. Would the Secretary advise whether the Administration has any plans to widen the entire stretch of the Castle Peak Road instead of just merely sections?

SECRETARY FOR TRANSPORT: Sir, as I mentioned in my main reply, parts of this section of Castle Peak Road are being widened and certainly there are plans to improve it further, subject to funds being made available. But as I said, there are certain interim improvements which have already been put in place, such as road widening and traffic re-routing. I also mentioned that in that part of Castle Peak Road near Chai Wan Kok we are adding a new two-lane expressway for completion in about two years time. We will certainly consider whether there are other sections of the road which we could improve, and if funds are available we will certainly consider further

extending the improvements to other areas.

MR WONG WAI-YIN (in Cantonese): Sir, the use of Tuen Mun Road has reached saturation point now. Besides, after the full opening of the Lok Ma Chau Crossing last August, container-trucks frequently use Tuen Mun Road and serious traffic accidents occur from time to time. Could I ask the Administration what contingency measures will be taken if serious traffic accidents take place on Tuen Mun Road? Besides, how can the Administration inform the public of those contingency measures within the

shortest time?

SECRETARY FOR TRANSPORT (in Cantonese): Basically, there are several arrangements. First, apart from Tuen Mun Road, we can use Tolo Highway at Tai Po to provide traffic relief. The main route here is to divert the traffic from Tuen Mun Road by using the New Territories Circular Road that connects traffic to Tolo Highway. Second, we will increase the ferry services between Tuen Mun and Central. Third, in view of the fact that the use of Tuen Mun Road is almost, if not entirely, saturated we hope the interim improvement measures I have just mentioned will be implemented

shortly, so as to relieve the problem. But I would also like to encourage more container-truck drivers to use Tolo Highway. We are now considering whether more effective road signs, such as warning signs, should be put up. If resources are made available, we will put up some roadside warning signs as soon as possible so that truck drivers will know in advance when they can use Tuen Mun Road and when they should turn to Tolo Highway.

MR SIMON IP: Sir, would the Secretary advise whether the speed limit on Tuen Mun Road is a significant cause of congestion, and if not, whether it would be prudent to increase the speed limit which may cause more accidents and thus delay and congest further the traffic?

SECRETARY FOR TRANSPORT: I think, Sir, the simple answer is no. The speed limit is not in fact a constraint on the road capacity. I believe that because of the number of vehicles using it at certain times of the day which are not busy, there is a case for relaxing the speed limit provided that safety is not compromised. This is why we are considering relaxing it and we wish to consult the district boards first before we consider that point very carefully.

DR SAMUEL WONG: Sir, referring to the Yuen Long Southern By-pass, could the Secretary for Transport confirm whether design has been put in hand or not, and if the answer is in the affirmative, could the completion date of June 1994 be brought forward so as to ease the heavy traffic in that particular section?

SECRETARY FOR TRANSPORT: Sir, with regard to the Yuen Long Southern By-pass, we have already let the contract and in fact work has started. The completion date is the

earliest we aimed at which is June 1994.

MR MICHAEL HO (in Cantonese): Sir, the Secretary has just mentioned in his reply that a road widening project of a particular section of Castle Peak Road is now under consideration. Would the Administration also consider widening certain sections of Tuen Mun Road?

SECRETARY FOR TRANSPORT (in Cantonese): Sir, we have also considered the possibility of widening certain sections of Tuen Mun Road; it is hoped that an additional carriageway will be provided in a particular section of the road. But the problem is that traffic congestion may further aggravate in the course of road widening and therefore careful examination is warranted before the project is given the go-ahead. Yet I can confirm that consideration is being given as to whether an additional carriageway can be provided in a particular section of Tuen Mun Road so as to improve the existing traffic condition.

REV FUNG CHI-WOOD (in Cantonese): Traffic congestion is at present very serious in the district but the relevant facilities will not be in place two or three years from now. Could I ask whether the Administration has underestimated the seriousness of the traffic congestion in the district; why a forecast failed to be conducted at an earlier time; and whether the Administration can anticipate how serious traffic

congestion will be during construction period?

SECRETARY FOR TRANSPORT (in Cantonese): I have made myself clear just now by saying that we have in hand numerous short, medium and long-term measures which will ease traffic congestion on the highway. Clearly, it stands to reason that no forecast will be fully accurate and we have already done our best to improve the present

situation. What we are now doing is to try every possible temporary short-term measure and aim at the earliest completion of the medium and long-term projects with the object of increasing road traffic capacity. Yet we must not forget that Tuen Mun Road is not the only route available; there are others such as Tolo Highway. Moreover ferry services are also available to help improve the situation. So Tuen Mun Road is not the only carriageway we can use.

DR CONRAD LAM (in Cantonese): Sir, traffic congestion may be brought about by vehicles running at too low or too high a speed, the latter of which may cause road accidents; vehicle breakdowns may also be a cause for traffic congestion. Could I ask the Administration whether there are effective measures to improve the situation?

SECRETARY FOR TRANSPORT (in Cantonese): This relates to a very fundamental question which involves the improvement of traffic management including road safety, regulation of traffic flow, road design and a comprehensive transport strategy, namely, how we should expand new road networks, relieve existing traffic congestion, take care of the safety of the drivers and so on. I believe the White Paper has already given a full account on this. The whole strategy is there and what need to be done is promotion of road safety education with a view to enhancing drivers' safety, stricter enforcement actions against traffic offences and arrangements of other temporary improvement measures such as diversion of traffic and so on. We hope that all drivers can co-operate by driving carefully to avoid accidents so that congestion could be relieved.

MR MAN SAI-CHEONG (in Cantonese): Given that many heavy-duty vehicles are at present using Tuen Mun Road, has the Administration considered restricting such vehicles from using the road during peak hours when congestion is most likely the case?

SECRETARY FOR TRANSPORT (in Cantonese): We have laid particular emphasis on prosecutions against overloaded heavy-duty trucks. As we all know, the police have already installed a number of weighing stations along major highways such as Tolo Highway and Tuen Mun Road. With more prosecutions taken out against these vehicles, we hope that vehicle breakdowns or other problems arising from overloading which is a cause for congestion will be minimized. We will, within a short period of time, introduce a Bill to raise the fines for vehicles' overloading in the hope that such instances will be minimized. We hope that this Bill will be introduced to this Council for consideration as soon as possible.

MR STEPHEN CHEONG: Sir, given that the Government has always indicated that the building of extra kilometres of roads to cater for increased traffic always tends

to lag behind the growth of the total number of vehicles, can the Government inform this Council what measures, if any, can be taken to tackle the root of the problem, that is, the unchecked growth of the total number of vehicles using a finite number of kilometres of the road system in Hong Kong?

SECRETARY FOR TRANSPORT: Sir, the White Paper published in 1990 set out the full strategy for tackling our transport problems in three ways, that is, building new roads and the infrastructure, providing public transport, and managing the entire system. The last mentioned way, of course, is no less important, which is how to manage the growth of vehicles so as to keep them within the capacity of our road system, bearing in mind that funds are not unlimited, that the road system cannot expand forever, that railways are very expensive to build, and that we must not let this resource be wasted by the unlimited growth in vehicles. Clearly, we need to look at ways and means of containing and restraining the growth, and of course managing the vehicles more efficiently. For example, we will shortly be using automatic toll collection at a number of tunnels in Hong Kong, trying this first at the Aberdeen Tunnel in the next few months. The purpose is to speed up the flow of traffic through these tunnels by a system which collects the tolls automatically without using

manpower but using electronic means. We hope to try this in other tunnels as well, as a means of helping the smooth flow of traffic and also the entire management system. This is one of our initiatives which we will try in the very near future.

MR HOWARD YOUNG (in Cantonese): Sir, in the fifth paragraph of his main reply, the Secretary said that the speed limit in Tuen Mun Road might be relaxed from 70 km to 80 km per hour and, in response to Mr Simon IP's question, he also mentioned that speed limit did not seem to be a cause for congestion. As regards Tolo Highway, I understand that the speed limit is 100 km per hour for the section between Tai Po and Sheung Shui and the same limit applies to parts of the section between Sheung Shui and Yuen Long. Could I ask whether the upper limit of 80 km per hour is imposed just because Tuen Mun Road was completed earlier and that speed limit for Tuen Mun Road will be relaxed to as high as 100 km per hour in the future?

SECRETARY FOR TRANSPORT (in Cantonese): Sir, Tuen Mun Road and Tolo Highway are two completely different highways. Basically the gradient and physical structure of the two roads are different. Tolo Highway is straight and level; so there can be greater

flexibility in speed limit. But in the case of Tuen Mun Road which is quite steep and winding, any relaxation of speed limit may lead to traffic accidents. So what we can do is to consider relaxing the speed limit at certain sections of the road with a lower gradient as total relaxation is impossible having regard to the

difficulties which will be encountered in other sections of the road.

MR WONG WAI-YIN (in Cantonese): Could I ask the Secretary to elaborate more on his answer to my earlier supplementary question, namely, should serious accident occur on Tuen Mun Road, how will the authorities concerned inform the public not to use this congested highway or how will the public be advised against taking public buses which will use Tuen Mun Road? Moreover, in his answer to Mr NG Ming-yum's question, the Secretary has said that one of the improvement measures is to adjust traffic signal timing. At present traffic congestion at the section of Castle Peak Road between Tuen Mun and Yuen Long is due to the swift changing of traffic signals for the purpose of facilitating the movement of light rail trains; could the proposed signal timing adjustments possibly imply that the privilege for light rail transit to use that section of the road will be removed?

SECRETARY FOR TRANSPORT (in Cantonese): Sir, regarding diversion of traffic and public announcement of traffic conditions, we have in place several detailed arrangements in the form of radio news bulletins to inform the public and the drivers of the special traffic conditions. We will be doing our best to give more coverage in this respect in the hope that drivers can be informed of the traffic congestion at the first opportunity and therefore take other routes instead. If accidents occur, emergency actions will be taken to relieve the traffic congestion with the help of the police.

Regarding traffic signal timing, our concern is how improvement can be made in terms of priority given to the use of Castle Peak Road with the object of co-ordinating traffic at road junctions where light rail trains and other vehicles meet so as to relieve traffic and ensure safety. This is our prior consideration before we would look into the adjustments of traffic signal timing under the condition that operation of the light rail system will not be affected.

Use of firearms against suspected smugglers

2. MR PETER WONG asked: Will the Government inform this Council whether the armament on our patrol boats has been used against suspected smugglers and if not whether there is any intention to do so?

SECRETARY FOR SECURITY: Sir, officers of the Marine Police are subject to Police General Orders governing the use of firearms. These provide that a police officer may discharge a firearm either to protect himself or another person from death or serious injury, or to effect the arrest of any person who he has reason to believe has committed a serious and violent crime, provided that no lesser degree of force can achieve these objects. Acting in accordance with these General Orders, police officers fired at smugglers or smugglers' boats on six occasions in 1990 and 1991.

MR PETER WONG: Sir, the Secretary in his reply said that a shot may be fired "..... to effect the arrest of any person who he (the police officer) has reason to believe has committed a serious and violent crime, provided that no lesser degree of force can achieve these objects." Can the Secretary explain why the traditional warning of a shot across the bows of a fleeing suspected smugglers' boat has not been used, but instead wait until personal life and limb of our marine police officers is

threatened before small arms are used? Further, would the Secretary elucidate whether the main armament of our patrol boats was ever used in 1990 and 1991, and if so, how many times?

SECRETARY FOR SECURITY: Sir, Mr WONG has referred to the traditional firing of a warning shot but I have to say that there is no such tradition. The police have never had the practice of firing warning shots. As regards the second part of the question, I am not sure what Mr Wong means by "main armament". In the six incidents I have referred to, there have been occasions in which the police have used submachine guns and there have been cases in which the police have used shotguns, and there have been cases in which the police have fired revolvers.

MRS RITA FAN: Sir, if I understand his answer correctly, the Secretary means that the Marine Police are not supposed to fire until the other vessel, which is a high-speed vessel, rams at the police vessel, or the suspected smugglers fire at the Marine Police. Now taking into account, Sir, the fact that these vessels are travelling at a much higher speed than can ever be reached by our police vessels,

would the Secretary advise how the Marine Police can stop these vessels which are travelling so fast without any warning shots?

SECRETARY FOR SECURITY: Sir, I do not think that Mrs FAN should come to the conclusion, as she has done, regarding the circumstances in which the police would open fire. I have explained the circumstances in which the police would open fire; these do not necessarily mean that they only open fire when a police boat is threatened to be rammed or when somebody has fired at them first. There are a number of plans which the police and the Anti-Smuggling Task Force have for trying to deal with the problem of very fast speedboats but I would not want to go into the details of these here.

MR JAMES TO (in Cantonese): Sir, the Secretary mentioned in his reply six incidents in which firearms were discharged. Will the police review the adequacy of its firepower in the light of the reports on these incidents? Also, in cases other than those six where there was no discharge of firearms, did the police sound out the views of the frontline police officers to see if they think the rules governing the use of firearms are too strict?

SECRETARY FOR SECURITY: Sir, the police do regularly review the adequacy of their armaments and other equipment. There is at present no intention to make any change; neither do the police see any need to make any change at the moment to the Police General Orders governing the use of firearms.

MRS SELINA CHOW: Sir, in his answer the Secretary says, "A police officer may discharge a firearm ... to effect the arrest of any person who he has reason to believe has committed a violent crime". Now can the Secretary advise this Council whether smugglers carrying firearms and travelling in high-speed vessels, which are outlawed in Hong Kong, are considered to have committed a serious and violent crime, given the fact that these smugglers have consistently proved themselves to be cold-blooded murderers by ramming their high-speed vessels into police boats resulting in death and injury of police officers?

SECRETARY FOR SECURITY: Sir, all I can say is that it would have to depend on the

circumstances of each case. I do not think I could give a general answer on that one way or the other. The circumstances are so varied that it would have to depend on what they were in any particular case. Clearly, there have been cases when the police have felt justified in using firearms and I have explained that they have done so on a number of occasions in the last two years.

MR HUI YIN-FAT: Sir, could the Administration inform this Council why, in the face of the seriousness of such cases and the rising incidence of such cases, the police or the Secretary for Security still does not see a need to review the procedures and Police General Orders governing the use of firearms?

SECRETARY FOR SECURITY: Sir, the procedures and the tactics for dealing with the problem of speedboats are under regular review. We have made a number of changes; we have introduced new legislation in the past year; we will continue to review them. But neither the police nor the Government sees any reason at the moment to change the Police General Orders governing the use of firearms.

MRS PEGGY LAM (in Cantonese): Sir, will the Administration inform this Council of the number of police officers injured in the course of carrying out their duties against smugglers in 1990 and 1991 because they could not match the smugglers in firepower? If the answer is in the affirmative, will the Administration upgrade the armaments of the police?

SECRETARY FOR SECURITY: Sir, I do not have with me details of the number of cases of police being injured in smuggling incidents in 1990 and 1991. I will give a written reply to that. (Annex I)

MR SIMON IP: Sir, would the Secretary advise whether the Marine Police consider that they have sufficient firepower and other equipment effectively to combat smuggling, and if not, what is being done about it?

SECRETARY FOR SECURITY: Sir, I believe that the police do believe, as I have said,

that there is no reason or need to increase their armament. The police and the Government as a whole are very concerned at the problem of smuggling which appeared to have been effectively combatted last summer but which has since risen quite considerably in the last four months. We are reviewing what we can do, both in terms of tactics and equipment, to combat this more effectively. Of course we are also consistently liaising with the Chinese authorities to get them to take more effective action against these boats. The pattern has changed since last year in that boats which were previously based in Hong Kong and operating from Hong Kong are now no longer doing so; they are based in and operating from China.

MR FREDERICK FUNG (in Cantonese): Sir, the Secretary mentioned in his reply that a police officer can use his firearms only when no lesser degree of force can achieve his objects. May I know if the police have reviewed this rule? Have there been cases in which police officers were injured as a result of their inability to fire first; or cases in which smugglers managed to get away because of this restraint?

SECRETARY FOR SECURITY: Sir, I believe not. What that phrase in my answer meant was that the police have to justify the amount of force they use. They are not expected to use an excessive amount of force. Clearly, they are able to use a necessary amount of force and in that context "necessary" would mean necessary to prevent death or injury.

MR CHEUNG MAN-KWONG (in Cantonese): Sir, I find the existing rules on the use of firearms far from specific. Besides, the fact that a marine police officer has to give a report whenever he opens fire, or merely opens a firearm receptacle will discourage him from using firearms in the discharge of his duties. Will the Administration inform this Council what can be done to enable marine police officers to use firearms appropriately in the execution of their duties without undue mental stress?

SECRETARY FOR SECURITY: Sir, opening fire is of course a very serious act and has to be justified in the circumstances. It is something that all policemen face and it is something that they are trained and equipped to take a decision on. I believe that the present practice and procedures and policy, as set out in the Police General

Orders to which I have referred, have served the police and Hong Kong and everybody well. And as I have said, there is no intention of changing these Orders at present.

MR MOSES CHENG: Sir, would the Secretary please inform this Council whether relaxation of the existing rules or orders to allow the firing of warning shots would improve the effectiveness of police officers in arresting smugglers who use very fast speedboats?

SECRETARY FOR SECURITY: Sir, I believe that the conclusion of the police is that no relaxation to allow more indiscriminate use of firearms would be effective and it is not recommended by the police.

DR CONRAD LAM (in Cantonese): It seems that in his earlier reply to a Member's supplementary, the Secretary has dodged the question on the number of marine police casualties resulted from their attempts to arrest alleged smugglers. May I know if the Secretary will take any measures to achieve better result and to minimize casualties in effecting arrest of alleged smugglers?

SECRETARY FOR SECURITY: Sir, I did not dodge the question. I said I did not have the information and would provide it in writing. As regards the second part of the question, as I have said in answer to earlier supplementaries, we do constantly review the effectiveness of police equipment, tactics and other measures to combat smuggling, and we will continue to do so. Clearly, one of the objectives in reviewing procedures and equipment is to minimize the risk of injury to police officers engaged in this sort of work, though I do not believe that the risk can ever be entirely eliminated.

MR PETER WONG: Sir, it is all too apparent that smugglers take small arms fire with impunity. Is there not a compelling case for increasing the size of armaments on police vessels to make them effective deterrents?

SECRETARY FOR SECURITY: Sir, I believe that the armaments on police vessels are appropriate and adequate for the work in which they are engaged. Apart from the

normal service revolvers carried by the individual policemen, there are more powerful weapons carried on most of the larger police vessels; these include rifles, Sterling submachine guns and shotguns. And of course in any particular case the police, in prior planned operations, do, if necessary, have access to other high-powered weapons where they consider that there may be a need to use these.

MRS RITA FAN: Sir, in answer to my earlier question the Secretary has said that there have been vessels intercepted. Is the Secretary aware that these vessels intercepted were intercepted because they were suffering from engine trouble, and that when there is no engine trouble our law enforcement agents can only watch them speeding away as our law enforcement agents are prevented from making tactical use of their

armament?

SECRETARY FOR SECURITY: Sir, I do not think that that is a completely accurate portrayal of the situation. Certainly, some interceptions have been made because smugglers' boats have suffered some kind of engine failure or engine malfunction, but at the same time the police have also successfully intercepted other boats.

Section 301 and Special 301 actions

3. MR NGAI SHIU-KIT asked (in Cantonese): In view of the fact that the Section 301 and Special 301 investigations conducted by the United States on trading activities of China will have profound implications on the economy of Hong Kong, will the Government inform this Council whether any action will be taken to help the industrial and commercial sectors of Hong Kong to cope with the extremely uncertain prospect in trade and steer our economy clear of sudden setback?

SECRETARY FOR TRADE AND INDUSTRY: Sir, in a situation where Hong Kong's two major trading partners are engaged in bilateral trade disputes which could lead to retaliatory action affecting Hong Kong's interests, a degree of uncertainty is inevitable.

As an interested third party we find ourselves in a particularly difficult position: we have a great deal at stake but no role in the negotiations themselves.

In spite of this, we have conveyed to the two sides our concerns, our hope that they will be able to reach an agreement, and the need to avoid harm to Hong Kong.

Specifically, on Special 301, which has been given a deadline of 16 January by the United States authorities, we have impressed upon the United States Administration the need to ensure that Hong Kong is not made the innocent victim of their differences with China. We have analysed the preliminary United States list of products for retaliation and disseminated our analysis both to those in Hong Kong having an interest and to the United States Administration. We have encouraged our private sector representatives to make their views known to the United States Administration, and I am pleased to say that many did so with their customary vigour and forthrightness in the public hearings held in Washington last week.

On Special 301, the potential danger to our economy from United States retaliation is significant but manageable in itself. The real danger lies in a downward spiral of retaliatory actions from both sides. We have therefore asked both sides to take our interests fully into account in deciding on their next course of action. Both Ambassador Carla HILLS, the United States Trade Representative, and Madam WU Yi, China's Chief Negotiator on Special 301, have indicated in public that Hong Kong's interests would be taken into account.

On Section 301, the uncertainty is of a longer-term nature because the investigation and bilateral talks between China and the United States can continue until October this year. We have no means of estimating the possible adverse effects at this stage but are monitoring the situation closely.

In short, Sir, we are fully aware of both the difficulties caused by the uncertainty and the potential for damage to Hong Kong's interests. We have been doing everything we can to minimize these, and will continue to do so in future.

MR NGAI SHIU-KIT (in Cantonese): Sir, the Secretary mentioned in the last paragraph of his reply that the Administration would be doing everything it could to minimize these effects. Can the Administration consider requesting the United States Administration to consult the Hong Kong Administration on the finalized list of affected products before announcing any punitive tariff on Chinese goods, so as to ensure that the effects on Hong Kong's businessmen are minimized?

SECRETARY FOR TRADE AND INDUSTRY: Sir, our best hope is that the two sides will be able to reach an agreement. In the unfortunate event that they cannot do so and the United States should feel obliged to resort to retaliatory measures, we would of course like to be given advance notice of the list of products which would be affected. Indeed we have already passed such a request to the United States authorities.

Whether or not they will do so is of course up to them but I do not think we can ask them to consult us before they finalize the list.

MR JIMMY McGREGOR: Sir, since Section 301 action could be even more restrictive than Special 301 action, can the Government give this Council an indication of the present status of the United States Section 301 investigation on trading access problems with China? Is Hong Kong in any way involved in these investigations -- in an advisory capacity, possibly? And when will possible punitive action be taken if the United States decides on this course?

SECRETARY FOR TRADE AND INDUSTRY: Sir, as far as I know, negotiations between the two sides on Section 301 were held in November last year and since then they have not resumed negotiations on this particular subject but have instead concentrated on Special 301. To the best of my knowledge, at present there is no United States action actually taking place on this issue of Section 301. And as indicated in my main answer, the investigation and bilateral talks between the two sides can go on until October, after which I think the United States Administration will have about one month in which to decide whether or not to retaliate.

MR FREDERICK FUNG (in Cantonese): Sir, the Secretary mentioned in his reply that the Administration had conveyed our concerns to the two sides. The real danger lies in the fact that the more bitter the dispute between the two sides becomes, the greater will be the damage to us. The Secretary's reply has also indicated that the

initiative we took was more on the side of encouraging our private sectors to make their views known to the United States Administration. May I ask the Secretary if the Administration has appealed to the private sectors to make their views known to the Chinese side as well, since their attempt will be fruitless if one side stands its ground?

SECRETARY FOR TRADE AND INDUSTRY: Sir, I think the private sector organizations and representatives are fully aware of the need for the two sides to compromise in order to reach an agreement and I have no reason to believe that they will not pass on their own views to the Chinese authorities.

DR HUANG CHEN-YA (in Cantonese): In view of the problems arising from Section 301, more lobbying delegations will have to be sent to the United States and China to present Hong Kong's case. Is the Administration aware that some of the businessmen who recently went to Washington alleged that the Hong Kong Administration had provided very little assistance and had not adequately played its co-ordinating role in the lobbying. Are such allegations true? In what way will the Hong Kong Administration strengthen its support for these lobbying groups in the future?

SECRETARY FOR TRADE AND INDUSTRY: Sir, first of all I would like to explain the difference between 301 and other United States actions on which we might need to do lobbying. 301 action, including Special 301 and Section 301, are actions on which the United States Administration has the sole authority to decide. The Hong Kong businessmen and private sector representatives who went to Washington last week did not go there to lobby; they went there to appear in front of a public hearing organized by the United States Administration and they did so in order to present their views on the likely effects of retaliation on the products in which they are interested. I can say categorically that there is no truth in the allegation that they were not given any assistance or adequate assistance. Before they left, actually it was the Hong Kong Government, mainly through the Trade Department, which provided all the necessary information to them on the products on the United States list. The Trade Department held many meetings with these people and also encouraged them to make

representation to Washington. I can also inform this Council that after their arrival in Washington the Hong Kong Government Office in Washington arranged, on the morning of the hearing, a breakfast meeting at which these people were fully briefed on what they should say or should do whilst they were in Washington. I therefore do not agree with these allegations.

MR MARTIN BARROW: Sir, as the British Government can sometimes take a somewhat weak stand with the United States on issues of concern to Hong Kong, could the Secretary inform this Council if Her Majesty's Government is committed to pressing the United

States on these issues and what specific help they are giving?

SECRETARY FOR TRADE AND INDUSTRY: Sir, the first point I would like to make is that in matters of external trade policy the Hong Kong Government of course has full autonomy and we do exercise our own rights and obligations. But having said that,

I can inform this Council that the British Government has on several occasions, through the British Embassy in Washington, expressed its concerns over the possible damage to Hong Kong of United States action against China under this Special 301 investigation.

MR HENRY TANG: Sir, according to government estimates, if the United States were to carry out Special 301 actions against Chinese goods, US$200 million worth of income and up to 7 200 jobs will be affected. Will the Administration inform this Council whether, if such actions were to go ahead, it will have a contingency plan on how to minimize the impact? And moreover, considering that China's MFN status will be up for renewal in a few months, will the Administration inform us what efforts it is making in order to persuade the United States not to put any conditions on MFN so that it will not have any severe impact on Hong Kong?

CHIEF SECRETARY: I think you are widening the scope of the question with the second question, Mr TANG. But I will ask the Secretary to answer the first of the two questions.

SECRETARY FOR TRADE AND INDUSTRY: Sir, we will continue to keep the business and manufacturing sectors fully informed of any action that the United States might decide to take, and we would of course continue to do whatever is possible to assist, principally in terms of advice and facilitation. But fundamentally, the individual businesses affected will have to cope with the situation themselves. This may mean adjusting their operations, looking for new markets, relocating part of their investments and production facilities, and so on.

MR HOWARD YOUNG: Sir, in the fourth paragraph of the Secretary's reply, it is stated that the potential danger to our economy from retaliation is "significant but

manageable" in itself. Would the Secretary tell us whether the Administration has made any attempt to broadly try and quantify this danger, and if so, whether it coincides with the figures just quoted by Mr TANG?

SECRETARY FOR TRADE AND INDUSTRY: Sir, I have used the word "manageable" because, according to our analysis, if the United States did retaliate against China and did so in respect of all the products set out in their preliminary list, then the maximum loss to Hong Kong would be in the order of about 7 200 jobs and loss of income, which means loss of GDP, of about HK$1.6 billion, which is only about 0.3% of GDP. Now this is the worst case scenario; it is not going to happen because the United States authorities themselves have stated publicly that if they should retaliate, the value of the products against which retaliation would take place would be about half of that in the original list. And then of course depending on the exact products which they pick for inclusion within the final list, the potential damage to Hong Kong might be even further reduced.

MR STEPHEN CHEONG: Sir, given that Section 301 investigation is going to take some time, that 1992 is an election year in the United States, and that lobbying is a very important and accepted form of activity in the United States, what increased resources,

if any, are being considered to be provided by the Administration to help representatives from Hong Kong present their case to the United States authorities as well as Senators, Congressmen and their staff?

SECRETARY FOR TRADE AND INDUSTRY: Sir, as far as Section 301 action is concerned, there is no need for us to lobby members of Congress because, as I said in an earlier reply, the decision is entirely one for the United States Administration to make. And in that respect, Sir, I believe that our existing resources are adequate for us to cope with the situation.

MR JAMES TO (in Cantonese): Sir, the Administration said that the impact of Special 301 is manageable. But when it comes to Section 301, the Administration maintains that till now it has no means of estimating its effects on Hong Kong though it will follow the development of the case. Since there is no telling what sort of actions will be taken and presently there is no way to assess the possible effects of 301

actions, may I ask the Administration whether it will separately assess the likelihood of the United States implementing each of these measures and analyse the effects each will have on our existing manpower policy such as that relating to the importation of labour?

SECRETARY FOR TRADE AND INDUSTRY: I do not think that is possible, Sir, because in the absence of any indication by the United States authorities themselves of the estimated loss to United States interests resulting from China's general trade regime it is simply not possible for us to conduct any analysis.

DR CONRAD LAM (in Cantonese): Sir, in the second paragraph of his reply, the Secretary mentioned that we had conveyed our concerns to the two sides. May I know the level or levels of contacts made, for example through the Secretary himself, the Governor, or the British Embassy that we had had our concerns conveyed to the Chinese side?

SECRETARY FOR TRADE AND INDUSTRY: Sir, I can inform this Council that we have mentioned this problem to Chinese officials on more than one occasion and that the last occasion on which I did this personally was yesterday.

MR TAM YIU-CHUNG (in Cantonese): Sir, I am very much concerned about 301 and Special 301 because should the negotiations fail, 7 200 local jobs will be affected. What does the Government have in store to deal with this? Will it put aside the expansion of the labour importation scheme?

SECRETARY FOR TRADE AND INDUSTRY: Sir, the figure of 7 200 is only the maximum possible figure. We are hoping, first of all, that the two sides will reach an agreement and that there will be no retaliation; but even if there was to be retaliation, we believe that the figure would be at least half of that, if not even much lower. And in that situation I do not think that the loss of employment would be on such a scale as to require measures over and above the provision of existing facilities which the Labour Department is responsible for, such as placement and so on.

MR NGAI SHIU-KIT (in Cantonese): Sir, as more and more Sino-US trade issues affecting Hong Kong's interests will come up this year, will the Administration inform this Council if it has any plan to set up a central co-ordinating body to bring all the existing advisory bodies and trade associations' representatives under one

organization so as to put their heads together to devise ways to cope with the situation in order to avoid confusion or waste of resources?

SECRETARY FOR TRADE AND INDUSTRY: Sir, I myself, as Secretary for Trade and Industry, am the focal point for co-ordinating Hong Kong's lobbying activities in 1992 and I will of course make sure that there will not be any confusion or waste of resources.

DR YEUNG SUM (in Cantonese): Sir, Sino-US trade relations are always affected by factors like politics, human rights situation and trade deficits. Bearing this in mind and if we look beyond the issue of Section 301, will the Administration consider stepping up lobbying activities in Washington?

SECRETARY FOR TRADE AND INDUSTRY: Yes, Sir, we do have a strategy in respect of lobbying members of the United States Administration and members of Congress in Washington in relation to this year's renewal of China's MFN status, and we do intend to step up our lobbying activities.

Written answers to questions

Redevelopment of Haven of Hope Hospital

4. MISS EMILY LAU asked: The Government informed this Council on 4 December 1991 that "plans are in hand to redevelop the Haven of Hope Hospital (HOHH) into a 316-bed hospital providing services in acute, rehabilitation, tuberculosis, chest, hospice and convalescent care" and the project is scheduled to start in 1992-3. Since the HOHH has not received any instruction from the Government in planning for acute care facilities such as accident and emergency department and has not received any

financial commitment from the Government, will the Administration inform this

Council:

(a) when the HOHH will be given details of the proposed changes in the redevelopment project;

(b) how much money will be allocated to this project; and

(c) when is the project expected to be completed?

SECRETARY FOR HEALTH AND WELFARE: Sir, in medical services, the term "acute" carries two meanings: one refers to the timing of onset of disease, the other refers to the intensity of medical care required.

The redevelopment of the Haven of Hope Hospital will not have an Accident and Emergency Department. It will have 30 acute beds for TB and chest patients who may require intensive medical treatment during hospitalization.

Turning to the specific questions raised, the answers, seriatim, are as follows:

(a) Plans for the redevelopment of the Haven of Hope Hospital have been developed in close consultation with the hospital administration. The hospital administration has therefore actively participated in the planning process. There is no question of the staff of the Hospital not being adequately informed of the precise scope of the project;

(b) $462 million has been earmarked for the project; and

(c) According to present timetable, the project is expected to be completed in 1996.

Loansharking

5. MR NG MING-YUM asked: Will the Government inform this Council:

(a) how it monitors the effectiveness of the policies and legislation dealing with loansharking;

(b) how many loansharking cases were reported to the police in the past three years; how many of such cases led to prosecution; how many of these prosecutions were successful and what penalties were imposed on the convicted;

(c) whether the Government has conducted any review on the effectiveness of the policies and the adequacy of resources allocated to curb loansharking activities; if so, what the detailed findings are; and

(d) what amount of manpower, support and financial resources the Government will deploy in the near future and what changes, if any, will be made to the relevant policies to deal with loansharking activities?

SECRETARY FOR SECURITY: Sir,

(a) There is no specific criminal offence of loansharking. The term is generally taken to mean lending money at usurious interest rates. As such, loansharking is an offence under section 24(1) of the Money Lenders Ordinance (Cap 163).

The Government monitors the effectiveness of this provision and its policy towards loansharking on the basis of the prevalence of loansharking cases reported and detected. We also put out publicity to advise the public not to borrow money from loan sharks and to encourage the public to report loansharking cases to the police.

(b) 223 loansharking cases were reported to the police in the past three years. From 1 January 1989 to 30 June 1991, 80 persons were prosecuted. Of the 42 persons convicted, 12 were sentenced to imprisonment of six months or less, one was conditionally discharged, eight were given a suspended sentence of imprisonment, and 21 were fined. The average fine was $5,700. Further details are given in the Appendix.

(c) Much loansharking is linked to organized crime. Triad societies are involved in fringe activities such as intimidation and debt collection. The police have initiated a study into loansharking with these particular features in mind. The

study is scheduled to be submitted to the Fight Crime Committee for discussion later this year.

(d) Loansharking activities remain a prime target of the Organized Crimes and Triad Group of the police. The study referred to in (c) above will indicate whether any operational or policy changes are required.

Appendix

Statistics on loansharking offences

Year

1989 1990 1991 Total

Cases reported to the police 78 78 67 223

Until 30 June 91

Persons prosecuted 42 32 6 80

Sentence:

- Acquitted 17 15 6 38

- Suspended imprisonment 44-8

- Conditional discharge1--1

- Imprisonment

- Less than six months 23-5

- six months 7--7

- Fine 11 10 - 21

Hong Kong students studying overseas

6. MR ERIC LI asked: Will the Government inform this Council of the number of students who left Hong Kong to take first degree courses in overseas universities last year and their distribution by countries?

SECRETARY FOR EDUCATION AND MANPOWER: Sir, we do not have complete data on the number of students leaving Hong Kong to study in overseas educational institutions. However, an estimate may be made based on student visa statistics provided by foreign consulates and commissions in Hong Kong.

The United States, Canada, the United Kingdom and Australia are the four major destinations which together receive over 95% of all Hong Kong students going overseas. During the 12-month period ended 30 September 1991, a total of 18 900 visas were issued for Hong Kong students to study in these four countries. According to a survey on their educational attainment, the visa recipients could be classified into three groups:

(a) 8 300 students who have completed secondary education or below and who would be enrolled in courses below degree level;

(b) 4 300 students who have completed sixth form in Hong Kong and who would be enrolled in first degree studies;

(c) 6 300 students who were graduates from tertiary institutions or post-secondary colleges in Hong Kong. About two-thirds of these were degree holders and would be pursuing postgraduate studies abroad. Others may be enrolled for advanced years of first degree courses or postgraduate programmes, depending on the admission requirements of individual overseas institutions.

The distribution of student visa recipients by issuing country and by educational attainment is as follows:

Education Attainment of Hong Kong Student Visa Recipients

(October 90 -- September 91)

Issuing Secondary Sixth Post-secondary/ All

country or below form university levels

United States 700 1 800 3 400 5 900

Canada 3 300 1 000 300 4 600

United 2 000 500 1 900 4 400

Kingdom

Australia 2 300 1 000 700 4 000

Total 8 300 4 300 6 300 18 900

The remaining 5% of students to whom visas are issued mainly attend courses in western European and other Asian countries. Reliable figures for this group are not available.

Recruitment of junior police officers

7. MR VINCENT CHENG asked: Will the Government inform this Council of the number of applications and the intake and wastage figures for junior police officers in 1991 as compared with the figures in the previous years?

SECRETARY FOR SECURITY: Sir, in 1991, a total of 9 271 applications for junior police officer posts were received. This compares with 5 109 applications in 1990.

As a result, recruitment has also improved. 1 246 officers were recruited in 1991, 45% more than in 1990. The intake each month in 1991 consistently exceeded the intake for the corresponding month in 1990.

Wastage has decreased. The number of junior police officers leaving the force in 1991 was 1 299. This represents an average of 108 officers each month, approximately 20% less than in 1990.

The past few months in particular have seen a full intake of junior police officers into the Police Training School, and new recruitment has substantially exceeded wastage. We hope that this trend will continue in 1992.

A table showing the recruitment and wastage statistics for 1989, 1990 and 1991 is at Annex.

Annex

Junior police officers recruitment and wastage statistics

Year No of applications Intake Wastage

1989 6 324 1 237 1 568

1990 5 109 862 1 611

1991 9 271 1 246 1 299

Chater Road pedestrian precinct

8. MRS PEGGY LAM asked: Will the Government inform this Council what measures will be taken to rectify the unsatisfactory situation in the pedestrian precinct in Chater Road which has been turned into a hawker bazaar on Sundays and holidays, with large crowds of people gathering and even blocking the flow of visitors?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Sir, the main priorities of the Urban Services Department in Chater Road, Chater Garden and Statue Square areas on Sundays and holidays are directed at keeping the area as clean as possible during the day, mounting large scale clean-ups after the crowd has dispersed, and helping to keep pedestrian passageways clear of obstruction caused by hawking activities.

Because there may be up to 20 000 people collected in these areas at these times, the Department deploys three times as much manpower and other resources in preventing obstruction by hawkers on Sundays and public holidays than on weekdays. The staff are deployed on patrol from before 8 am in the morning until after 9 pm in the evening

every Sunday and public holiday. The areas of patrol extend from the Star Ferry Concourse and Connaught Garden in the north to Queen's Road Central and beyond in the south, and from Chater Garden in the east to Peddar Street in the west. Particular attention is paid to locations where pedestrian traffic is relatively busy. The patrols disperse any illegal hawkers found trying to trade and, if the warnings are not heeded, arrest the hawkers and seize the goods. In addition, joint raiding

operations with support from the police are mounted from time to time.

In 1991, the Urban Services Department made 327 arrests in the area in question for hawking without a licence. In each case, the goods were confiscated. There were also 437 cases of seizure of goods without arrest during the same period. In addition, the Department issued 245 summonses against persons found hawking inside the Urban Council pleasure grounds in the vicinity. These measures have gone some way towards easing the hawking problem.

Education is also important. Over the past year, the Urban Council has organized jointly with the Philippines Consulate and voluntary groups a number of community involvement schemes to launch clean-up campaigns in this area. The Urban Services Department will continue to disseminate warnings against illegal hawking, in English, Tagalog and Chinese, through broadcast vans and notice boards set up in prominent locations. The Department is considering whether to increase such warning messages.

Backlog of priority projects endorsed by Social Welfare Advisory Committee

9. DR LAM KUI-CHUN asked: Will the Administration inform this Council when and in what order the backlog of priority projects endorsed by the Social Welfare Advisory Committee will be implemented?

SECRETARY FOR HEALTH AND WELFARE: Sir, of the priority projects endorsed by the Social Welfare Advisory Committee, the following will be implemented shortly: (a) the first phase of the expansion of the Community Service Order Scheme, which will be implemented in early 1992;

(b) the provision of eight additional home help teams, which has been included in the "working targets" and will be implemented in 1992-93; and

(c) the provision of three additional infirmary units, which has been included in the "working targets" and will be implemented in 1992-93.

Three other projects have been accorded priority, but no definite implementation dates have been set. They are:

(a) the provision of a medical officer visit service for infirmary units in care-and-attention homes,

(b) the provision of occupational therapists for infirmary units in care and-attention homes, and

(c) the provision of two additional outreaching social work teams a year.

Additionally there are other projects of a legislative nature which are being considered in the context of new or amending legislation. These include provisions for updating and amending the Protection of Women and Juveniles Ordinance (Cap 213) and provisions for maintaining the standard and control of residential care homes for the elderly. It is our aim to introduce the relevant legislation to the

Legislative Council during the current Session.

Tung Chung New Town

10. MR FREDERICK FUNG asked: In the light of the Government's recent request for the Housing Authority to allocate funds to finance the infrastructural projects (including site formation, road works and school facilities) in the Tung Chung New Town in the next 10 years, will the Government inform this Council:

(a) whether the Government has changed its established policy of financing infrastructure in the new towns by passing the financial commitments in this regard directly onto the public housing tenants and flat-owners of the Home Ownership Schemes from whom the revenue of the Housing Authority derives; and

(b) whether the Housing Authority, if required to allocate funds to finance infrastructural projects in the new towns, will be reimbursed part of the proceeds from land sale in new towns for use as funds to increase its production of public housing units?

SECRETARY FOR THE TREASURY: Sir, the Government has not changed its policy of financing infrastructural development in the new towns. However, we have always taken the view that, if the Housing Authority were to begin obtaining surpluses in excess of what it requires to support immediate needs and planned development within existing policies, then it would be in the interests of co-ordinated development that these surpluses should be used to fund social and engineering infrastructure related to housing development. The Financial Secretary is empowered under section 13(2) of the Housing Ordinance (Cap. 283) to require these surpluses to be returned to General Revenue, but the Government is as keen as the Housing Authority to see excess funds used to enhance the provision of housing-related infrastructure when it is appropriate to do so.

In response to part (a) of the question, we have recently put to the Housing Authority proposals that they should undertake a small number of specific, housing-related infrastructural projects. The reason behind this is that the Authority is programming its housing development in these areas for earlier completion than the Government is programming the necessary social infrastructure. By inviting the Housing Authority to undertake these works, we are offering it the opportunity to co-ordinate all the housing and housing-related infrastructural development in the areas in question. In this way, the Housing Authority will be able to ensure that it is able to provide not only housing, but a proper community infrastructure within its programmed timeframes, something that cannot be assured with the Government's current timeframes and availability of resources. It is entirely up to the Authority to decide whether it wishes to accept this invitation. The Authority is already aware that, if it does so, it will be necessary to fund this development from its own resources.

The funding of these housing-related infrastructural developments will not add to the financial burden of public rental housing tenants. These tenants enjoy heavily-subsidized housing and, regardless of the Authority's decision, will continue to do so. Similarly, the prices of Home Ownership Scheme flats are fixed with the criterion of affordability being one of the factors taken into consideration. We do not envisage any change in the method of calculating affordability levels.

Turning to part (b) of the question, I mentioned earlier that the Housing Authority has been invited to undertake the development of some housing-related

infrastructure. There is no question of the Government requiring the Authority to undertake these works.

Under the Joint Declaration the part of land sales income which is retained by the Hong Kong Government is deposited in the Capital Works Reserve Fund by which all public works programmes are funded. As stated earlier it is because the Government's and Authority's programmes of work do not coincide that the Authority has been invited to consider financing certain housing-related infrastructural works to avoid a delay in its own construction programmes.

The case of Lorrain OSMAN

11. MR JIMMY McGREGOR asked: Will the Government advise this Council of the present position regarding the extradition to Hong Kong of Lorrain OSMAN and provide the following information:

(a) when is it expected that Mr OSMAN may arrive in Hong Kong to face criminal charges, and what avenues of appeal are still open to him;

(b) will the Hong Kong Government continue to seek his extradition given that he has already spent over six years in a British prison;

(c) what is the cost of this case to date that has had to be paid from Hong Kong public revenue; and

(d) how any other criminal proceedings in Hong Kong against other defendants are being held up pending Mr OSMAN's extradition, and how serious are any such cases?

ATTORNEY GENERAL: Sir,

(a) Mr OSMAN's sixth application for a writ of Habeas Corpus was found to be an abuse of process and dismissed by the Divisional Court in England on 14 November 1991. His application to the Divisional Court for leave to appeal to the House of Lords was rejected on 28 November 1991. On 11 December 1991 he filed a petition in the House of Lords for leave to appeal to the House of Lords. It is likely that this

will be considered by the Lords within the next few weeks. It cannot be predicted at this stage as to when Mr OSMAN will be returned to Hong Kong or what further legal proceedings he may bring.

(b) The Hong Kong Government will continue to seek Mr OSMAN's extradition. Mr OSMAN faces charges of a serious nature. As I said in this Council on 30 May 1990, it is Mr OSMAN's own use of the appeal channel which has resulted in the extradition proceedings being prolonged.

(c) The cost thus far of the extradition proceedings is approximately $15.8 million. It should be borne in mind that the Hong Kong Government has been awarded costs in a considerable number of applications and appeals brought by Mr OSMAN, including the six Habeas Corpus proceedings. Strenuous efforts are being made to recover those costs.

(d) Mr OSMAN is co-accused with Mr George TAN in respect of serious allegations of fraud and corruption arising out of funding of the Carrian Group by Bumiputra Malaysia Finance Limited. Inorder for them to be tried jointly, it is essential to have Mr OSMAN returned to Hong Kong.

Shortage of judges

12. MR PANG CHUN-HOI asked: Will the Government inform this Council:

(a) of the average time required for cases to be heard in courts at different levels;

(b) of the number of persons being detained for more than two months while awaiting trial during the past year;

(c) whether the current waiting time reflects the shortage of judges;

(d) if so, what measures the Government will take in the next few years to improve the situation; and

(e) if not, why the time required for court cases to be heard cannot be shortened?

CHIEF SECRETARY:

(a) The average waiting times in 1991 were :

(days)

Court of Appeal

Criminal 90

Civil 87

High Court

Criminal 268

Appeal from Magistracies 131

Civil 256

(days)

District Court

Criminal 165

Civil 198

Magistracy 52

Labour Tribunal 26

Small Claims Tribunal 49

Coroner's Court 43

Obscene Articles Tribunal 21

Lands Tribunal 82

(b) In the period 1 July 1990 to 30 June 1991, 333 persons were detained for more than two months while awaiting trial in the High Court. This represents 58% of the total number of accused persons dealt with in criminal cases in the High Court in that period. In the same period, 38 persons were being detained for more than two

months while awaiting trial in the District Court. This represents 2% of the total number of accused persons dealt with in criminal cases in the District Court. No person was being detained for more than two months while awaiting trial in the Magistrates Court.

(c) The waiting time for trials in the High Court is not satisfactory, and does reflect a need for additional High Court Judges. The principal reason for the deterioration of waiting times for criminal trials in the High Court has been the significant increase in the number of criminal cases set down for trial in the last five years and the increasing complexity of cases, both criminal and civil, generally. The figures are:

1987 234

1988 296

1989 387

1990 356

1991 419

The establishment of judges and magistrates in the other courts is considered satisfactory.

(d) Given the inadequacy of the High Court Judges, a proposal for the creation of three additional High Court Judge posts will be submitted to the Establishment Sub-Committee of the Finance Committee of the Legislative Council in the near future. The establishment of judges and magistrates will continue to be closely monitored by the Administration and the Judiciary.

As a further step to speed up the judicial process, the Judiciary is conducting an Information Systems Strategic Study to suggest ways in which modern technology may be used to increase the efficiency of the judicial system. The study will be completed soon.

(e) See reply to (d) above.

Wanted criminals among Vietnamese boat people

13. MRS PEGGY LAM asked: Will the Government inform this Council

(a) whether there are means to identify from the screened-out Vietnamese boat people stranded in Hong Kong those who are criminals wanted by the Vietnamese Government;

(b) if so, whether the Government will make arrangements for those wanted criminals amongst the boat people to be repatriated to Vietnam as soon as possible, so as to stop them from taking refuge in Hong Kong; and

(c) if not, whether the Government will send the personal particulars of the boat people to the Vietnamese Government for vetting, so that the wanted criminals identified can be repatriated to Vietnam as soon as possible, thus promoting co

operation between the two Governments in their fight against criminals and alleviating the burden on the detention centres in Hong Kong?

SECRETARY FOR SECURITY: Sir, we have no reliable means of identifying those among the Vietnamese migrants in our detention centres who may have committed crimes in Vietnam. We do not have an extradition agreement with Vietnam, nor are we likely to be ready to conclude one in the near future. In these circumstances, we do not solicit information from Vietnam about those in our camps who may have committed crimes in Vietnam or have been convicted of crimes there.

Under the Statement of Understanding signed by Britain, Hong Kong and Vietnam on 29 October 1991, all screened-out Vietnamese migrants will in due course be repatriated under the Orderly Return Programme. Our intention is that all Vietnamese illegal immigrants, including fugitive offenders from Vietnam, should be repatriated to Vietnam as soon as possible.

Exchange of criminal intelligence with China

14. MR JAMES TO asked: Will the Government inform this Council:

(a) whether Hong Kong has any reciprocal arrangement with Mainland China for the supply or exchange of crime information and personal data on suspected criminals and prisoners; if yes, what types of information are involved;

(b) under what circumstances and conditions the Government agrees to supply or

exchange such information; whether these circumstances and conditions will also apply to other citizens who have not committed any crime;

(c) whether the Government will notify the persons concerned; if so, through what channels the notification will be given; and

(d) to what extent the Government will take into account the provisions relating to privacy in the Bill of Rights in the exchange of information?

SECRETARY FOR SECURITY: Sir,

(a) Hong Kong has no formal bilateral arrangements with the People's Republic of China governing the exchange of the kind of information referred to. However, both Hong Kong and the People's Republic of China are members of Interpol and information passes between the two sides through this channel. Under the Interpol arrangement there is no obligation on members to comply with requests received from others. The types of information exchanged through Interpol include documentary evidence such as medical reports, physical evidence such as weapons and statements by consenting witnesses.

(b) We are concerned to ensure that mainland residents who commit serious crimes in Hong Kong do not evade justice simply by returning to the mainland. So as a general rule, we are prepared to supply information when requested by the Chinese authorities in cases where they have arrested a mainland resident for serious offences committed in Hong Kong; such as murder or armed robbery.

(c) The persons concerned are not notified by the Hong Kong authorities.

(d) In providing information we take care to ensure that we act in accordance with the laws of Hong Kong, including the Bill of Rights.

Flyover project in Sai Kung

15. MISS EMILY LAU asked: In view of the concern expressed by Sai Kung District Board (SKDB) members over the slippage in the flyover project designed to improve traffic flow between Hiram's Highway and Clear Water Bay Road, will the Government inform

this Council:

(a) what has happened to the assurance given to SKDB Traffic and Transport Committee on 13 January 1989 that the flyover would be built by mid-1991;

(b) whether the project has been indefinitely shelved, and if so, why; and (c) when will construction commence?

SECRETARY FOR TRANSPORT: Sir, this flyover originally formed part of the first phase of a package of measures to improve traffic flow on Hiram's Highway and Clear Water Bay Road. Other works in the first phase, including the construction of a climbing lane between Wo Mei and Clear Water Bay Road, are now nearing completion.

The flyover, however, had to be excluded from these works because of strong local objections to its expected impact on the Tai Po Tsai burial ground. A revised proposal for the flyover, avoiding the burial ground, was presented to the Traffic and Transport Committee of the Sai Kung District Board at its January 1989 meeting. The committee accepted the new proposal and was advised that this could be completed by mid-1991 provided no new objections were received.

Additional funds for the revised proposal had to be sought. However, in 1990, a bid for funds to cover the increase in cost did not succeed and, in 1991, the balance of funds for the flyover was diverted to other more urgent projects.

The project is now in Category C of the Public Works Programme with an estimated cost of $61m. If it succeeded in gaining high priority and was funded, the earliest that the flyover could be completed would be 1995.

In the interim, improvements have been made to conditions at the junction of Hiram's Highway and Clear Water Bay Road. These include lowering the speed limit, better traffic signs and an improved road surface.

Bedspace apartments

16. MR HUI YIN-FAT asked: Will the Administration inform this Council:

(a) of the progress of the action plan to resolve the problem of bedspace apartments, in particular the timetable for legislation to regulate the operation of such apartments since the motion debate on the subject held in this Council on 27 February 1991; and

(b) whether the actions taken are effective in achieving the intended results?

SECRETARY FOR HOME AFFAIRS: Sir, the key factor in any successful action plan is the setting up of sufficient urban hostels for those to be decanted from overcrowded bedspace apartments. Towards this end, the City and New Territories Administration (CNTA) and the Social Welfare Department have made concerted efforts to secure

suitable premises for use as singleton hostels.

The first of a series of hostels targetted at able-bodied lodgers in existing bedspace apartments was opened in October last year in Wan Chai in premises made available by the Tung Wah Group of Hospitals. The second hostel is being set up in Kwun Tong in flats made available by the Hong Kong Housing Society. It will be

operational in a couple of months. In addition, a flat in a private residential building in Yau Ma Tei has been purchased with money donated by the Chinese Temples Committee. Renovation plans for this flat are being drawn up.

The Agency for Volunteer Service is the management agency for these hostels and for those to be set up in premises secured by CNTA.

As regards the elderly lodgers in bedspace apartments, the Housing Department has offered premises at Cheung Sha Wan Estate and Siu Sai Wan Estate for use as hostels for them. The premises at Cheung Sha Wan Estate have been allocated by the Social Welfare Department to the Salvation Army to operate the hostel, which will come into operation in April or May this year. The premises at Siu Sai Wan Estate will also be allocated by the Social Welfare Department to a non-government welfare

organization to provide a similar service in about August or September this year.

The Royal Hong Kong Jockey Club has generously donated $15.6 million towards the capital costs for setting up these hostels for the elderly lodgers.

The action plan is making headway in relieving the problem of overcrowding in bedspace apartments. However, it is still early to assess its effectiveness,

particularly as singleton hostels in areas where they are most needed, such as Yau Ma Tei, Sham Shui Po and Mong Kok, are yet to be opened.

Government's intention to subject bedspace apartments to licensing once there are sufficient alternative accommodation available for the displaced lodgers was set out in the motion debate on 27 February 1991. As I expect that the decantation exercise will be reasonably completed in about two years, I will seek to introduce the necessary legislation for a licensing scheme into this Council in mid-1993.

Solvent abuse

17. MR GILBERT LEUNG asked: In view of the death of a schoolboy from sniffing of lighter fuel gas, will the Government inform this Council:

(a) whether there are any statistics relating to solvent abuse such as sniffing volatile solvents from gases; if no, whether the Government can provide any estimated figures;

(b) whether legislative control will be introduced requiring the inclusion of bilingual warning labels and indication of proper usage for the sale of lighter gas refill canisters (or other gases with similar volatile solvents); if not, please give the reasons for not doing so; and

(c) whether and how a publicity campaign will be conducted to make known the harm of solvent abuse?

SECRETARY FOR SECURITY: Sir, according to information received by the Government's Central Registry of Drug Abuse from a wide range of reporting agencies, no cases of abuse of lighter fuel gas were reported in 1989; two cases were reported in 1990; and, apart from the case referred to in the question, no other cases were reported in the first nine months of 1991.

A total of 19 cases of abuse of other organic solvents, all of them involving the substance commonly known as thinner, were reported in the past three years. All 22 known solvent abuse cases in the last three years involved young people under the age of 21. Most were reported by outreach social workers.

As regards the second part of the question, at the conclusion in November last year of an enquiry into the death of the 13-year-old boy who had died as a result of sniffing lighter fuel, the Coroner's Court suggested that:

(a) canisters of lighter fuel should bear a label, both in English and Chinese and in clear and bold words, on the dangers of abuse, pointing out that it could be fatal and should be kept away from children; and

(b) the sale of canisters of lighter fuel should be restricted.

The Director of Electrical and Mechanical Services, who is the Gas Authority, is conducting a detailed study of the full record of the Coroner's Report, including the suggestions for the inclusion of a bilingual warning label and restrictions on the sale of refill canisters. He will make his recommendations after consulting the Gas Safety Advisory Committee.

As regards the third part of the question, although the abuse of solvents is low, both the Government and the Action Committee Against Narcotics are concerned about the problem. We publicize the dangers of this form of abuse through drug education talks given to secondary school children (which are being extended to Primary Six students next year) and displays at anti-drug exhibitions, carnivals and other

publicity events and functions. Organic solvents, including lighter fuel gas, are also included as common drugs of abuse on a poster recently put on public display. We have also produced a Drug Education Teaching Kit, incorporating video tapes, reference materials and follow-up lesson plans, which aims to make young persons more aware of the harmful effects of abusing psychotropic and other substances, including organic solvents. We have recently issued a Guidebook on Drug Abuse for professionals involved in the fight against drugs. A separate section is devoted to organic solvents. We will continue to direct our publicity campaign against abuse of all substances, including solvents.

Employment of officers relieved from Home Ownership Scheme conveyancing duties

18. MRS SELINA CHOW asked: In view of the recent transfer of Home Ownership Scheme (HOS) conveyancing work from the Registrar General's Department and the Housing Department to private solicitors firms, will the Government inform this Council:

(a) what savings are envisaged as a result of the transfers, in terms of officers previously undertaking HOS conveyancing duties; and

(b) what measures have been taken to ensure that those officers previously undertaking HOS conveyancing duties remain productively employed?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Sir,

(a) To answer this question, it is necessary to go back a little in history. The Home Ownership Section of the Land Office of the Registrar General's Department was set up in June 1978 with an establishment of 19 staff to deal with the execution, stamping and registration of assignments built under the HOS.

The workload of the section has increased significantly since 1978 owing to an increase in the number of HOS flats put up for sale: 13 718 flats were offered for sale in 1991 as compared to 8 373 in 1978, an increase of 63.8%. In addition, the section has been assigned ancillary work which was not envisaged when it was set up in 1978 and for which no additional staff has been provided.

Despite this, there has not been any increase in staff resources. On the contrary, the existing establishment of the section is now only 16 as against 19 in 1978, a reduction of 15.8%. The resultant effect is that the section has not been able to complete the work in time.

As a stringent time schedule had to be met for the sale and execution of assignments of HOS flats and an increasing number of HOS flats were being put out for sale, some 16 officers of the Housing Department were loaned to the HOS Section of the Land Office to assist in the work of execution of assignments during the period

from November 1989 to December 1991 as and when considered necessary by that department. Despite this arrangement it was still not possible for the Land Office to handle the total volume of the work and backlogs resulted. It was ultimately decided to contract out the arrangements for execution of the assignments to individual purchasers to private solicitors firms. The contracting-out commenced with Phase 13B flats in October 1991. The Land Office continues to prepare all legal documentation for each HOS court, in addition to the backlog of work.

The "savings" therefore take the form of relieving the HOS Section from the huge volume of work and backlogs, which would otherwise call for the addition of permanent staff resources. Also, with the transfer of conveyancing to the private sector, the Housing Department staff on loan to the section were returned to their own department in December 1991.

(b) There is no lack of work for the existing staff in the HOS Section. At present, they are actively engaged in:

(i) preparatory work relating to 3 180 Phase 13A assignments which will be executed in 1992-93. These assignments are dealt with by the HOS Section because agreements for sale and purchase were signed by purchasers as long ago as June 1991 when they were informed that the Land Office administrative fee would be charged;

(ii) clearing backlogs of work, as at the Annex; and

(iii) completing the receipt clauses in about 7 500 assignments of HOS flats built under Phases 12A, 12B and 12C. It is estimated that about 7 500 receipt clauses can only be completed in 1992-93.

In the longer term, consideration will be given to contracting-out the remainder of the non-administrative aspects of the conveyancing work detailed above to private firms. This however will have to wait until after it is proved that the initial contracting-out of the bulk of the conveyancing is working smoothly.

Annex

Backlogs of work as at 8 January 92

Average Average

monthly monthly Existing

Activity intake output backlog

(i) Drafting, engrossing 57 35 196

and arranging execution

of assignments for the

Housing Authority

to buy back HOS flats

from owners

(ii) Drafting, engrossing 39 40 79

and arranging execution

of assignments for the

resale by the Housing

Authority of HOS flats

in (i)

(iii) Scrutinizing draft 24 18 132

assignment from

owners of HOS

flats to other family

members

(iv) Scrutinizing variations 2 2 0

to draft Legal Charges

from the standard form

requested by certain banks

(v) Scrutinizing draft staff 26 27 13

Housing Loan Mortgages

(vi) Scrutinizing draft 20 15 107

replacement Legal

Charges on change of

employment by owners

Counselling services for candidaties failing enrolment at local tertiary institutions

19. MR ERIC LI asked: The Secretary for Education and Manpower indicated in his reply to my question in this Council on 18 December 1991 that 18 629 candidates who met the minimum entry requirements for admission to degree courses in three of our tertiary institutions in 1990-91 failed to be enrolled. In this connection, will the Government inform this Council whether the Government provides any counselling

services for these candidates on further studies and careers which match their qualifications in order to fully develop their potential; and if so, what are they?

SECRETARY FOR EDUCATION AND MANPOWER: Sir, in the reply I gave to Mr LI's question on 18 December 1991, I said that of the total 23 056 applications received in 1990-91 by the Hong Kong University, the Chinese University of Hong Kong and the Baptist College, 18 629 applications (not candidates) were unsuccessful. Prior to the introduction of a joint admission system in 1991, candidates applied separately to individual institutions and most applied to more than one. Thus the total number of applications received by all UPGC-funded institutions always exceeded the number of eligible candidates. By the same token, the number of candidates failing to gain a degree place would be substantially less than the figure of 18 629 referred to above, particularly if we were to take into account the number admitted by the two

polytechnics.

On the question of counselling services, the Government provides each secondary school with a careers master/careers teacher to advise students on further studies and career planning.

For students who met the minimum entry requirements for degree courses but failed to get enrolled in such courses in any of the publicly funded tertiary institutions, the alternative options included further study at degree level at the Open Learning Institute and at non-degree level at institutions such as the polytechnics, the

approved post-secondary colleges, and the Colleges of Education. These options would have been made known to them through their careers teachers. Overseas study opportunities would also have been introduced as another option for students whose families can afford the cost. As for those wishing to enter employment, counselling on career choices based on their individual interest and ability would have been given. They would also have been advised on how to improve themselves through part-time continuing education.

The careers teachers are backed up in their delivery of counselling work by both the Education Department and the Labour Department, which organize frequent training in careers counselling skills for them. The teachers are also sent up-to-date information on careers and further study opportunities.

Students who need further help can obtain counselling and advisory services from

the Careers and Guidance Services Section of the Education Department. In the year 1990-91, 2 700 Form VII students received individual counselling.

Dangerous slopes

20. MR ALBERT CHAN asked: Will the Government inform this Council what criteria are being adopted for designating dangerous slopes; whether different criteria are being applied in designating dangerous slopes affecting squatter areas, residential developments or roads in general; and if so, to what extent they are different and why?

SECRETARY FOR WORKS: Sir, a slope affecting a residential development or a road is designated as dangerous by the Geotechnical Engineering Office where it has an inadequate margin of safety as determined by a quantitative stability assessment, or by visual criteria, and where slope failure would involve a significant risk to life. Existing slopes and retaining walls which are found to be unsafe are rectified under the Government's long-term Landslip Preventive Measures Programme. The programme also includes stabilization of some unsatisfactory government slopes and retaining walls, the collapse of which could indirectly cause loss of life by major disruption to essential services, or lead to major economic disruption. In addition, a great deal of stabilization work has been done in association with new government projects and by the private sector.

The criteria adopted for designating dangerous areas occupied by squatters are based on the general geotechnical characteristics of the affected hillsides, as measured in terms of topographical, geological and hydrological properties. To explain the reasons for the different criteria, it is necessary to describe the history of the Government's preventive action in squatter areas over the last decade.

For decades, squatter dwellings have been commonplace on steep hillsides, which are prone to landslips during intense rainstorms. Even small landslips in crowded squatter settlements can cause casualties, as was evident in 1982, when 26 people lost their lives in squatter settlements during the severe May rainstorm. Many of the victims were occupying flimsy wooden huts struck by debris from small landslides in adjacent earthworks or whose foundations were swept away by debris-laden flood water.

A study subsequently carried out by the Geotechnical Control Office revealed that there were about 57 000 squatters living on steep hillsides in the urban area which were especially vulnerable to landslips during heavy rainfall. These slopes could not be rectified under the Landslip Preventive Measures Programme because the

majority of the squatters needed to be cleared before the necessary large scale works could be carried out. These clearances could obviously only be undertaken within the capacity of the Government's housing programme.

Very significant improvements in squatter safety from landslides have now been achieved. The Housing Department's squatter clearance programme has resulted in almost all of the hillsides which are especially vulnerable to landslips having been cleared in the urban area over the past seven years. The Geotechnical Engineering Office is now carrying out studies of landslip hazards to squatters in some of the less dangerous hillsides in the urban area and in the New Territories, and squatters vulnerable to landslip hazards are cleared on a need basis.

Although landslip hazards to squatters have been greatly reduced in recent years, the Geotechnical Engineering Office recognizes that there may continue to be casualties from landslips as long as any squatters live on slopes. Accordingly, the Government's Landslip Warning System is in use again this year to provide adequate warning of the probable occurrence of landslips on steep hillsides, and to urge squatters to be concerned for their safety and to take refuge in the temporary shelters provided by the Government.

First Reading of Bills

MAGISTRATES (AMENDMENT) BILL 1991

ROAD TRAFFIC (AMENDMENT) (NO. 5) BILL 1991

TELEVISION (AMENDMENT) (NO. 2) BILL 1991

Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).

Second Reading of Bills

MAGISTRATES (AMENDMENT) BILL 1991

THE ATTORNEY GENERAL moved the Second Reading of: "A Bill to amend the Magistrates Ordinance."

He said: Sir, I move that the Magistrates (Amendment) Bill 1991 be read a Second time. The purpose of this Bill is twofold:

- first, to enable a computerized system for the issue of summonses to be introduced into the Magistrates Courts; and

- secondly, to empower the Governor to refer a criminal case or a matter arising in such a case which has been decided by a magistrate, to a judge of the High Court for reconsideration.

At present the processing of summonses in magistracies is done manually. In 1990, over 300 000 summonses were issued. In many magistracies, a delay of several weeks can elapse between the receipt of a complaint and the issue of the summons. The amendments proposed will enable summonses to be issued by computer and processed by magistrates or by authorized officers. It is anticipated that the introduction of a computerized system will greatly reduce the waiting time for the issue of summons and will enhance the efficient administration of justice.

The Bill will also empower the Governor to refer any decision of a magistrate in a criminal case to a judge of the High Court for his consideration. At present he has no such power. This is anomalous since the Governor already has power to refer High Court and District Court cases to the Court of Appeal. Such references are usually made on my advice. A common situation giving rise to a reference is where fresh evidence comes to light after conviction which suggests that the conviction might be unsafe. This power of reference provides the only means whereby possible instances of injustice can be rectified after all channels of appeal available to the person convicted have been exhausted. I might add that it is not the purpose of reference to seek an increase in a sentence already imposed.

Where a reference is made it will be the courts that will determine the outcome.

The reference will be treated as an appeal and the court's determination will be based entirely on the merits both as to conviction and sentence.

Sir, I move that the debate on this motion be now adjourned.

Question on the adjournment proposed, put and agreed to.

ROAD TRAFFIC (AMENDMENT) (NO. 5) BILL 1991

THE SECRETARY FOR TRANSPORT moved the Second Reading of: "A Bill to amend the Road Traffic Ordinance."

He said: Sir, I move that the Road Traffic (Amendment) (No. 5) Bill 1991 be read a Second time. The main purpose of the Bill is to provide for the private management of government vehicle examination centres. The opportunity is also taken to improve certain administrative practices relating to vehicle examinations.

Under the Road Traffic Ordinance, the Commissioner for Transport may designate any place as a vehicle examination centre. There are six such centres operated by the Government at present. These are used to examine annually all public service vehicles and goods vehicles manufactured before 1983, to ensure that they are

roadworthy.

We intend to contract out the management of the newest of the Government's vehicle examination centres, at Kowloon Bay, in order to achieve greater efficiency and cost effectiveness in the use of such facilities. This centre is used for the annual inspection of goods vehicles and public service vehicles.

Clause 6 of the Bill provides for the private management of a government vehicle examination centre under a written agreement, and subject to such terms and conditions as the Commissioner for Transport may specify. To safeguard the public interest, the Commissioner is empowered to give general directions to the private operator concerning the operation of the centre and to suspend or revoke his appointment if necessary. Inspection fees will continue to be set by the Government, but will be collected by the private operator.

Clauses 2 to 5 of the Bill seek to improve certain administrative practices in

the operation of vehicle examination centres. These include the publication of notices in the press requiring the production of vehicles for examination as an alternative to serving such notices in writing. They also include the serving of suspension of vehicle licence orders and vehicle repair orders on the person who produces the vehicle for examination, as an alternative to serving such orders on the owner.

Sir, I move that the debate on this motion be adjourned.

Question on the adjournment proposed, put and agreed to.

TELEVISION (AMENDMENT) (NO. 2) BILL 1991

THE SECRETARY FOR RECREATION AND CULTURE moved the Second Reading of: "A Bill to amend the Television Ordinance."

He said: Sir, I move the Second Reading of the Television (Amendment) (No. 2) Bill 1991. The purpose of this Bill is two-fold. Firstly, it gives the Broadcasting Authority the discretion to waive the residence requirements for principal officers of television stations licensed under this Ordinance. Secondly, it allows such stations to super-impose advertising materials on the screen in certain circumstances.

Section 10(e) of the Television Ordinance states that the principal officers of a television company, including the officer responsible for the selection of programmes, shall be a person who satisfies the requirements of paragraph (b) of that section as to residence. Paragraph (b) states that such a person is to be ordinarily resident in Hong Kong and to have been so resident for at least one continuous period of not less than seven years. Similar requirements are not found in the legislation governing satellite television and radio broadcasters.

The Broadcasting Authority has reviewed this provision and has concluded that it is not only too rigid but is also inequitable. To exclude overseas staff from key posts of a television company would deprive it of new and innovative programme concepts and techniques. They should not be hindered by such restrictions, and should

instead concentrate their efforts on recruiting staff of the highest calibre, wherever they are to be found. The present amendment proposes to give discretion to the Broadcasting Authority in applying the residence requirements for the principal officers of a television company. Other provisions in the Television Ordinance which ensure that the control of television companies rests in Hong Kong hands are not affected by this amendment.

I would now like to turn to the second amendment in the Bill. The Bill proposes amendments to the Ordinance to allow "teloping" as an alternative to conventional advertising. "Teloping" is an industry term referring to the super-imposition on the screen of material not related in subject matter to the programme being shown at the time. It normally takes the form of words or characters being run across the bottom of the screen whilst a programme is being aired. Members may have already seen teloping in the form of essential information, announcing special news items or programme changes, super-imposed on the screen by our TV stations from time to time, but the current legislation does not provide for teloping for advertising

purposes. There have been complaints concerning the showing of advertisements on TV during live programme such as sports, thus disrupting the programmes to the annoyance of viewers. Allowing the teloping of advertising material would not cause such disruption but would still enable the TV stations to exercise their right to carry advertising. This is clearly in the overall interests of the viewer.

To guard against abuses, the Bill requires the TV licensees to seek the prior approval of the Broadcasting Authority which may control the amount of such advertising by the application of a Code of Practice. Furthermore, any such advertising broadcast will count towards the maximum limits on total advertising in any hour or 24 hour period as specified in section 24(1)(a) and (b) of the Ordinance. This will ensure that teloping as advertising does not lead to an increase in the total amount of advertising to be broadcast.

Clause 2 of the Bill amends section 10(e) of the Ordinance to give the Broadcasting Authority the discretion in applying the residence requirements for the principal officers of a television company, on a case by case basis.

Clause 3 of the Bill amends section 23 of the Ordinance to allow advertising material to be broadcast during a programme by teloping or other techniques with the permission of the Broadcasting Authority.

Clause 4 of the Bill makes a minor consequential amendment to the Television (Advertising) Regulations.

Sir, I move that the debate on the Second Reading of this Bill be adjourned. Question on the adjournment proposed, put and agreed to.

LEGAL PRACTITIONERS (AMENDMENT) (NO. 2) BILL 1991

Resumption of debate on Second Reading which was moved on 18 December 1991 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.

Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).

DANGEROUS DRUGS (AMENDMENT) (NO. 2) BILL 1991

Resumption of debate on Second Reading which was moved on 11 December 1991 Question on Second Reading proposed.

MR DAVID LI: Sir, as convener of the ad hoc group established to study the Dangerous Drugs (Amendment) (No. 2) Bill 1991, I would like to discuss briefly for Members' consideration the scope, intent and implications of this Bill.

This Bill seeks to provide the Director of Health with discretion to give unregistrable medical practitioners operating in exempted clinics permission to supply, possess and procure 11 benzodiazepene drugs. These drugs comprise minor tranquillizers.

This Bill was made necessary by the recent changes to Part I of the First Schedule to the Dangerous Drugs Ordinance. These changes re-classified these drugs as dangerous drugs, with effect from 18 January 1992. Without this Bill, unregistrable medical practitioners would be denied access to the 11 benzodiazepene drugs which

are commonly used in the treatment of patients.

An ad hoc group comprising seven Members was formed to study the Bill, which was introduced into this Council on 11 December 1991. The group held two meetings, including one with the Administration, and received a written representation from the Association of Medical Practitioners of Societies' Clinics Limited.

After their deliberations, Members of the ad hoc group unanimously agreed to endorse passage of the Bill. Key among the group's considerations were:

First, that the number of unregistrable medical practitioners has been declining steadily, from more than 400 in 1963 to about 165 today;

Second, that the 11 drugs specified in the Bill are commonly used in the treatment of patients; and

Third, that the Administration has provided assurance that the use of these drugs by unregistrable medical practitioners and exempted clinics will be closely monitored by the Director of Health.

Understandably, this Bill has raised some concern over the status of unregistrable medical practitioners vis-a-vis their registrable counterparts. This, however, is well outside the scope of this Bill and merits separate review by the Administration.

With these remarks, I support the Bill.

Question on the Second Reading of the Bill put and agreed to. Bill read the Second time.

Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).

THE PRINCE PHILIP DENTAL HOSPITAL (AMENDMENT) BILL 1991

Resumption of debate on Second Reading which was moved on 18 December 1991

Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.

Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).

Committee stage of Bills

Council went into Committee.

LEGAL PRACTITIONERS (AMENDMENT) (NO. 2) BILL 1991

Clauses 1 to 4 were agreed to.

DANGEROUS DRUGS (AMENDMENT) (NO. 2) BILL 1991

Clauses 1 to 13 were agreed to.

THE PRINCE PHILIP DENTAL HOSPITAL (AMENDMENT) BILL 1991

Clauses 1 to 3 were agreed to.

Council then resumed.

Third Reading of Bills

THE ATTORNEY GENERAL reported that the

LEGAL PRACTITIONERS (AMENDMENT) (NO. 2) BILL 1991

DANGEROUS DRUGS (AMENDMENT) (NO. 2) BILL 1991 and

THE PRINCE PHILIP DENTAL HOSPITAL (AMENDMENT) BILL 1991

had passed through Committee without amendment and moved the Third Reading of the Bills.

Question on the Third Reading of the Bills proposed, put and agreed to. Bills read the Third time and passed.

Member's motion

COMPREHENSIVE REVIEW OF TOWN PLANNING ORDINANCE

MR EDWARD HO moved the following motion:

"That this Council supports the Comprehensive Review of the Town Planning Ordinance and urges the Administration to take into careful consideration the views of Members of this Council and the public in drafting the new planning legislation to ensure that it is relevant and beneficial to the changing social, economic and political environment of Hong Kong."

MR EDWARD HO: Sir, I rise to move the motion standing in my name on the Order Paper.

The consultative document for the Comprehensive Review of the Town Planning Ordinance was published in July 1991 and the consultation period was to end on 30 November 1991. This was subsequently extended to 11 January 1992. In order to gain a better understanding of the proposals contained in the consultative document, an ad hoc group of the Legislative Council was formed in October 1991. The group met 10 times, received submissions and met with representatives from a number of professional bodies and interested groups. As convener, I am most grateful for the dedicated efforts of members of the ad hoc group in studying and analysing the consultative document, but since the purpose of the group was not to arrive at consensus or even majority opinions, I do not on this occasion speak on behalf of the group.

The consultative document is the result of a comprehensive review of the Town Planning Ordinance, and a wide range of changes to the Town Planning Ordinance have been proposed. Many of these proposals would have far-reaching financial and social

implications, and before final proposals for legislation are put to this Council, the Government should take into careful consideration opinions expressed on the subject by Members of this Council and the public.

The Town Planning Ordinance has remained in its present form with few fundamental changes since it was enacted in 1939. Few would disagree that, since that time, Hong Kong's social, economic and political environment has changed drastically and that a comprehensive review is now overdue. Most visibly, what has changed is the physical dimension of Hong Kong as a city, in terms of population, density and development. As a result of decades of intensive development, Hong Kong will now have to deal with environmental problems associated with such changes. The more prosperous society that we have today also heightened people's aspirations for a better quality of life, and be involved in issues perceived to have an effect on that quality.

It should be remembered at the outset that the Town Planning Ordinance does nothing more than providing a legal framework for the preparation of town plans, processing planning approvals, and possibly enforcement: it is ultimately the content of the plan that will determine whether it can promote the orderly growth of a city so that its people can live and work in an ideal environment, and people and goods can move about efficiently to facilitate trade, commerce and industry.

On the other hand, an unsuitable set of legal framework will adversely affect the quality of the town plans, and inhibit development.

The Constituency that I represent is most concerned that the Town Planning Ordinance must achieve the right balance: the balance between individual rights and public interests, between public participation and efficiency, between flexibility and certainty, between authority and the abuse of powers. In my speech, I shall be examining the various proposals in the consultative document to see whether such kind of balance can be achieved.

The plan-making process

Planning in Hong Kong is carried out on three basic levels: territorial, sub-regional and local district planning. The consultative document only deals with outline zoning plans (OZP) and development permission area (DPA) plans. It is not right that the public should only be consulted at the local district level. The public's input at the territorial and sub-regional plans level would facilitate the

understanding and acceptance of Outline Zoning Plans at a later stage. Contents of statutory plans

It is essential that details of what is and what is not permitted in any given plan should be clearly stipulated to provide certainty to landowners, developers and the public at large. Using this approach, I propose that the schedule of Notes attached after OZP's should contain two columns listing uses always permitted and uses always prohibited. If the plans define developments which are always permitted, special planning approvals need not be obtained. Any use not within these two columns: developments that fall into areas of special control, or designated developments requiring environmental protection assessments, would need planning applications.

Under paragraph 3.4 in Chapter 3 of the consultative document, it was suggested that express provisions should be incorporated in the new Ordinance to confirm the Board's powers to control all the relevant elements of development to be embraced by the term "types of building", notably plot ratio, site coverage, building height, location, flat size, floor area, spacing, character, external appearance and use of buildings. This power is too wide-ranging: it would be dangerous to give the Board power to determine even such things as character and external appearance of buildings. These matters should be left to the professionals designing the buildings, while plot ratio and site coverage should be stipulated in regulations as they directly affect the development rights of the land owners. This point will be discussed further later on in my speech. In essence, the Planning Board should only be dealing with land planning and not micro planning pertaining to building designs.

The Planning Board

Of necessity, the Planning Board will have to be vested with powers the exercise of which will have far-reaching impact on the physical development and many other aspects of life in the community. In order for it to be seen to be independent of the Planning Authority, it should be chaired by a non-government member. Its

membership should also be composed of a mix of government officials, nominees from the Legislative and the Municipal Councils, district boards, professionals nominated from the relevant professional institutions and individually appointed members.

New plan-making process

Exhibition of draft plan

It has been proposed that, during the two-month exhibition period of the draft plan, the issuance of the planning approvals would be withheld. Also, planning approvals would be withheld for objection sites during the proposed nine-month period of consideration of such objections.

It is accepted that the freezing of development for objection sites would safeguard development from going ahead even though there were objections. On the other hand, this procedure can cause unnecessary delay which can have serious financial consequences such as in the case of frivolous or malicious objections. The Government should examine whether the nine-month period of consideration and hearing of representations can be shortened. Where objections are of a similar nature on a given site, then group hearings should be held in order to minimize delay.

Planning applications

At present, there is little public involvement in the planning application system. It is accepted that individual planning applications can affect the public. On the other hand, the public would only be adversely affected by "bad neighbour" type of developments, that is, refuse collection points, massage parlour, funeral parlour or developments which would pose environmental problems. Therefore, only planning applications for this type of development should be publicized so that the public can be given an opportunity to submit their views on the applications directly to the Planning Board. The rest can be dealt with by the Planning Board in the usual manner.

"Bad neighbour" development should be set out in the form of regulations to be made by the Governor in Council. This would circumscribe the degree of discretion that can be exercised by the Planning Board and would reduce the time needed to decide every time whether an application would require public notification. Thus, public participation is addressed without the loss of efficiency and certainty.

The planning permission system

When we discuss the planning permission system, we should remember that, broadly speaking, there are two major categories of such systems practised in well-developed countries: the permission through zoning control system, and the comprehensive

permission system. Hong Kong uses the zoning control system. This form of control provides a reasonable degree of certainty to landowners and developers.

This system allows certain developments to proceed without special planning permission as long as they comply with and are compatible with the zoning of the outline zoning plans. This has resulted in an efficient system which facilitates the fast growth of Hong Kong. The clear-cut zoning enables a higher degree of consistency yet with flexibility being maintained. Through the enactment of the Town Planning (Amendment) Ordinance 1991, the Ordinance is now extended to cover the whole of the territory, and OZP's will be prepared for those areas that have not been so covered.

The planning certificate

As I have suggested earlier in discussing contents of statutory plans, it is better to improve on the zoning system so that the OZPs give the maximum amount of information as to what is allowed and what is not allowed. If this can be clearly defined, a Planning Certificate System need not be introduced. Under the current system, where building plans are processed under the central processing system of the Building Authority, the Authority co-ordinates the requirements of different government departments including the Planning Department and can disapprove the

building plans where they contravene the Town Planning Ordinance.

Thus, the planning certificate does not add to the degree of control by the Planning Authority, as it is being already consulted in the present system. In the case that sketch or concept plans would be submitted for planning certificates, then it is difficult to see how such certificates can be issued as, at this stage, detail designs are not done and calculations of plot ratio, site coverage and so on cannot be undertaken. Therefore a planning certificate based on sketch or concept plan would only be academic and does not give real assistance to the potential developer.

I am concerned that the Planning Certificate System would add another layer of bureaucracy to the development process. I am more concerned that we should not move towards the comprehensive permission system as practised in the United Kingdom. Under that system, all applications are considered on their merits and before the decision of the Planning Authority is known, a landowner or property developer cannot be certain of what will or will not be permitted. It is instructive to note that the Planning and Compensation Act 1991 in United Kingdom has received the Royal Assent

on 25 July 1991, and under the new Act, all local Councils will be required to prepare local plans covering the whole of their areas and that planning applications shall conform as far as possible to development plans; thus they are moving closer to our system.

The Planning Certificate System has aroused some strong reactions from the developers, the architects and the surveyors. Many of them fear that the Planning Authority would use this "weapon" to impose its subjective planning and aesthetic judgements on building volume and design. These fears may be unfounded; the Planning Certificate System can be an effective tool for planning administration, especially for areas outside of the OZP areas for special planning approvals and for enforcement. Yet, the case for its introduction is not sufficient to offset the potential problems of such a system.

Density control

It has been suggested that development density control stipulations in the Building (Planning) Regulations 19 to 23 should be transferred to the new Planning Ordinance. This would consolidate control matters in one Ordinance. Planning matters would then be considered by the Planning Authority, side by side with the Building Authority that would then be involved in only the safety and sanitation aspects of the building design. Although I have no basic "in principle" objection to this proposal, it is essential that the present approval system, the central processing system operated by the Building Authority, should be retained, as the system has worked well in the past, is efficient and well understood by professions practising in the field.

Regulations setting out maximum plot ratio and site coverage for density zones 2 and 3 areas and for other special control areas should be set out as well. Density control affects directly individual interests and property rights. They should be debated and decided by the Legislative Council and should not be left to the discretion of the Planning Board.

Compensation and betterment

Of all the topics in the consultative document, this is the most controversial: it is argued whether private interest should be subordinated to public interest. It is acknowledged in the Law Society's representations that the general rule is that

"legislation does not normally give rise to a right to compensation in the absence of express provision". It went on to say that "if it were not so, most legislation would be very expensive since a large proportion of legislation affects somebody's rights, with financial consequences". In Hong Kong, where the Government is also the landlord, the right to compensation (or the lack of it) is less well-defined.

Under the present system, there are broadly speaking two types of leases: the unrestricted lease where express development rights have not been provided and the lease that provides express development rights. For the unrestricted lease, it is difficult to argue that development has not been subject to control, for instance, under legislation on environmental protection, building safety and sanitation, fire safety, planning and the like.

For leases that expressly provided certain development rights, the Government, as the landlord, has the obligation to respect its contractual obligations when such development rights have been reduced through legislation. In the case of the reduction of development rights by the statutory OZP on certain newly auctioned properties in Kwai Chung where the lease provided express rights, the Special Committee on compensation and betterment has suggested that "there clearly are problems" and the particular case is being dealt with by the Government.

Where individual rights are subordinated to serve public interest, it is important to establish who should determine "public interest". I believe that the Legislative Council should be the body to determine "public interest". Therefore,

all decisions that affect public interest should be debated in the Legislative Council, and such matters as plot ratios and site coverages that directly affect an individual landowner's development rights should be stipulated in legislation. These matters should not be decided at the discretion of the Planning Board.

Where developments have been sterilized because of the fact that the site has been zoned as Government/Institution/Community (GIC) or open space, then after a reasonable period of time, there should be some form of mandatory resumption. The present system of freezing development for such sites for an indefinite period of time and that compensation only takes place by administrative measures is clearly unfair to the property owners.

On the subject of compensation, it is clear that the Government will have to consider compensation to be paid for in certain circumstances. Indeed, this has

already been provided for under different Ordinances such as in the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance and the Road (Works, Use and Compensation) Ordinance and so on. Where compensation is required, it does not have to be purely in cash; it can be in such forms as partial exchange of development rights, bonus plot ratios, or land exchange. This would mitigate the effect on the public purse, and would avoid the inability to implement planning improvements due to lack of funds.

Areas of special controls

I support the designation of Special Design Areas to enhance civic design and to conserve areas of special architectural, or historical interest. Those designated would require special controls and such controls should be exercised outside of the Planning Board by a special committee comprising architects, planners, professionals and experts from the relevant fields to ensure that there is proper input.

Due to the time limitation, it is quite impossible to cover all of the subjects in the 114 pages of the consultative document. We are all too aware that the social, economic and political environment has changed drastically, and is changing at an ever faster pace. The consultative document would have achieved its purpose if it has stimulated constructive comments for Government's careful consideration so that the new planning legislation will not only cater for our changing environment, but will provide a framework to positively enhance that environment.

With these remarks, Sir, I move the motion.

Question on the motion proposed.

MR STEPHEN CHEONG (in Cantonese): Sir, for the purpose of improving the living and working environments of the public, I support the spirit of the comprehensive review of the Town Planning Ordinance. As a Member of the Legislative Council, I consider that, in scrutinizing a Bill, attention should be given not only to the spirit of the Bill itself, but also to its practicability and possible impacts on Hong Kong from the macroscopic point of view.

Since the publication of the Consultative Document on Comprehensive Review of the Town Planning Ordinance, a number of local professional organizations have

expressed their views on the issue. Their experience aggregated over years of work in connection with town planning is something to be reckoned with. It is the practice of professional bodies in Hong Kong to handle things prudently and sedately. I believe they would never jump to rash conclusions before looking into relevant policies and would by no means raise objection to anything indiscriminately in a bid to attract public attention and win public applause.

Some professional organizations consider that if the procedures for examining and approving town planning proposals as set out in the consultative document are accepted, the time required for approving a proposal will be longer than that under the existing arrangements. In addition to the two months during which a proposal submitted must be displayed for the public to raise objections, if any, the Executive Council will need another nine months to consider and decide on any proposal against which objections have been raised. During this period, the plans submitted by the applicant will not be examined and endorsed. As such process will take at least a further six months to accomplish, a proposal may take as long as 17 months to go through all necessary procedures. And 17 months is a very long time in terms of investing on any development projects. It would certainly be a factor which the investors or developers would take into account. The professional bodies consider that this is detrimental to the investment environment of Hong Kong.

It is proposed in the consultative document that in addition to occupation permits, future building developments also need to possess planning certificates issued by the Town Planning Board.

In the past, examination and approval procedures were carried out through central co-ordination so as to reduce alleged bureaucracy and enhance efficiency. Yet in terms of the time required for processing applications, are those proposed arrangements in the consultative document less efficient than the existing procedures? As such arrangements are likely to be regarded as running counter to the spirit of past practice, will they subject the Administration to accusations of further bureaucratization? If this issue gives rise to a controversy eventually, then the object of promoting public participation is but empty talks that cannot produce any practical effects.

Professional organizations believe that this will definitely slow down the pace of land development and will very likely affect the regular pattern of demand and supply of properties. As this artificially imposed manipulation may affect the

demand and supply situation in the market, we should consider carefully whether they are the most appropriate and necessary arrangements for the people of Hong Kong.

Lastly, I would like to say a few words about power. Proposals in the document have prompted us to think of excessive power. I agree with some professional organizations that if excessive powers of intervention are given to the Town Planning Board, its authority will override the existing rights covered by the title deeds. Under such circumstances, property owners and investors cannot be certain as to whether their rights will be safeguarded. Eventually this will bring about uncertainty and adverse effects to the future investment environment of Hong Kong.

Although the Administration should play an important role in town planning, it would be inappropriate and insensible that only the Administration or one government department should involve and take decisions on matters concerning town planning which have far reaching impacts on the territory. Professional bodies that have commented on the issue have requested earlier for extension of the consultation period to facilitate their scrutiny of the document. In debating the motion on this

important and complicated document today, this Council should adopt the same down to earth attitude, fully consider their views and suitably amend the relevant arrangements so as to produce a piece of more satisfactory legislation.

With these remarks, Sir, I support the motion.

MR LAU WONG-FAT (in Cantonese): Sir, first of all, I would like to declare that I am the Chairman of the New Territories Heung Yee Kuk and also I am a landowner.

In the past few decades, there have been repeated requests in the community for a comprehensive review of the obsolete and rigid Town Planning Ordinance. But not until today did the Government carry out any review to seek improvement. This reminds me of cases in which countries attempt to change from the planned economy they have practised for a long time to market economy in the shortest span of time. The two are similar in that they will inevitably encounter more difficulties in removing long-standing problems and have to pay a considerable cost. On the issue of town planning, I hope the measures to be adopted by the Government will not be too drastic or stringent, so as to avoid any grave impact on the community.

The current comprehensive review of the Town Planning Ordinance undoubtedly

covers a wide range of issues. But just as the case in last year when amendment to the Ordinance was made, the question of whether affected landowners should be compensated remains a crucial problem to be solved. Before I express my views on this issue, I would like to comment on other areas covered by the consultative document.

Heung Yee Kuk has thoroughly and carefully studied the consultative document on Comprehensive Review of the Town Planning Ordinance and submitted its views to the Legislative Council ad hoc group. As regards development control and planning certificates, we are of the view that existing land leases and Building Ordinance both contain planning provisions, resulting in a two-tier control. Hence future legislation should streamline the existing system instead of making it more complicated. We suggest that the Government should co-ordinate the procedures of land administration, building regulations and planning criteria. A "centralized" system should be established. The legislation on planning, building and land administration should be amended concurrently to avoid confusion and complication which will hamper the development of Hong Kong as a whole.

We believe that while it is reasonable to assess the environmental impact of a development as proposed, the requirements for environmental protection should not be too harsh in rural areas and should be appropriately adjusted to take local views into consideration, so as to ensure that the residents of rural areas can have a reasonable opportunity to upgrade their quality of living.

Moreover, as some village houses are immediately adjacent to buildings which have monumental significance, the Special Design Area will affect the redevelopment of these houses. We feel that before designating an area as a Special Design Area, consideration should be given to reprovisioning the affected village houses or

allocating a site for their redevelopment.

Sir, I am very concerned about the issue of non-conforming existing uses and amortization discussed in the consultative document.

The consultative document refers to the concept of "amortization" as adopted in some municipalities in the United States, which provides for the compulsory termination without compensation of a non-conformity at the end of a specified period of time. After deliberation, Heung Yee Kuk found that such measure has been constantly challenged in the United States. Some general principles in the

application of "amortization" have been developed from court cases over the past few decades. It is stipulated that "amortization" can be applied only if the criteria of legality, propriety, essentiality and necessity are met. In other words, consideration should be given to the following questions: whether the measure is unconstitutional; whether the period of time is adequate and whether the problem of relocation has been solved; whether the planned uses will affect public health, safety and moralities and whether it is a cause of nuisance to the public; whether other methods such as licensing and resumption of land can be used apart from "amortization".

"Amortization" should not be applied if any of the above criteria cannot be met.

On the basis of the above principle, we feel that if "amortization" is to be applied to an area used for open storage, that area should become a "residential" zone in the first instance. Moreover, the amortization period should be determined on a case by case basis and should not be decided unilaterally by the Government. Arrangements for removal and relocation should first be sorted out.

Amortization is undeniably a practice which forcibly deprives the owners of their rights without compensation. In the United States, amortization can only be applied in very limited circumstances with safeguards provided by the Constitution. If such measure is introduced into Hong Kong, it is believed that owners will be compelled to sue the Government for breach of lease conditions. We therefore consider that amortization should not be adopted if there are other measures to deal with non conforming uses.

Sir, the Town Planning Ordinance, by its previous amendment to introduce Interim Development Permission Area and Development Permission Area as well as the system of planning application, has cast a serious and far-reaching impact on the property rights and leasehold interests of private landowners in Hong Kong including the New Territories. The designation of Development Permission Area by the Town Planning Board in effect puts a freeze on all uses of land which would otherwise be permitted by the terms of the Crown Lease. However, no compensation is to be paid to the

landowners affected.

In the current comprehensive review of the Town Planning Ordinance, the Administration should make reasonable arrangement for the payment of compensation, otherwise the review as a whole will not be able to achieve its anticipated effect.

As Hong Kong is operating under a capitalistic system, private property rights should be respected and protected.

Other than those belonging to the Crown or resumed by the Government, all land in the New Territories are held under Block Crown Leases. The Block Crown Leases control the uses of land by providing that the lessee and successors shall not "use, exercise or follow upon the land any noisy, noisome or offensive trade or business whatever ...... and that the lessee shall not erect or construct any building or structure of any description .... without first having obtained the approval" of Government. Apart from the above, there are no other restrictions.

Presently landowners can use their land lawfully according to the Crown Lease. The imposition of control by the Government on the lawful use of land by means of planning restrictions is tantamount to a unilateral breach of the Block Crown Lease on the part of the Government. This will erode the property rights of the landowners and will seriously affect their livelihood. In such circumstances, it will be

grossly unfair if the affected landowners are not compensated.

If the Government finally decides not to pay compensation on the grounds that the huge amount involved is beyond its financial capacity, the foundation of our capitalistic society may be undermined. If it is accepted that the private property or property rights of certain people can be sacrificed or deprived of for the sake of the overall interests of the community, today the Government can apply this

principle to the Town Planning Ordinance to deny the rights of the landowners and tomorrow it can also deny the interests of industrialists, merchants, high-income earners and rich people in the name of providing better retirement benefits, medical services and education facilities for the community. If this happens, the spirit of capitalism will be eroded. It will be detrimental to the maintenance of the social and economic system of Hong Kong. From the constitutional point of view, non

provision of compensation is also against the spirit of the provision regarding the protection of private property rights in the Basic Law.

Sir, as regards the payment of compensation, Heung Yee Kuk is of the view that the "purchase notice" system of the United Kingdom should be adopted in Hong Kong. Landowners should have statutory rights to require the Government to resume their land when the use of such land is sterilized by planned uses or when the property rights or leasehold interests attaching to their land are confiscated or reduced to such an extent that their land has become incapable of reasonably beneficial use.

The Government must take into account the potential development value of the land to be resumed when it offers compensation under the system of "purchase notice".

As regards the issue of betterment, the existing practice is that the Government would charge premium from the landowner who applies for development to permit a higher value use or a higher development density. Obviously, the land premium system is equivalent to betterment. . I think the existing system is fair, simple and effective. Other forms of betterment will be complex and difficult to implement. The main reason is that before a charge can be made by the Government in respect of a particular property, it is necessary to prove that the property has increased in value owing to the operation of a particular provision in a planning scheme or to the execution of a particular project under the scheme. Besides, how to calculate the rate of increase in value will give rise to major disputes and confusion.

Sir, democratic countries attach great importance to the protection of private property rights and regard this as a basic principle. Hong Kong is now moving towards a more democratic direction. The Administration should fully take into account this point in drafting the new Town Planning Bill.

Sir, with these remarks, I support the motion.

MR RONALD ARCULLI: Sir, I would be very surprised if there was a significant body of opinion that held the view that a comprehensive review of the Town Planning Ordinance was not necessary, for it cannot be disputed that there is such a need. The publication of the consultative document is therefore not just timely but long overdue and despite its shortcomings it serves as a useful discussion paper. While I have no wish to dwell on the reasons for such need, I believe it will be useful to touch on this point. I will then deal with the truly important points which are:

(1) The need for an economic and financial impact study;

(2) The drastic change in the existing land development system as proposed in the consultative document;

(3) The implications of the proposals in the consultative document; (4) Compensation and betterment;

(5) The proper and the best way forward.

Sir, I shall now deal with the need for review.

Currently, planning is covered by piecemeal legislation which, to say the least, is neither efficient nor does it provide the desired level of certainty from everyone's point of view.

Secondly, there are a number of areas that are not satisfactory under the existing system, for example, the principle of compensation and betterment, the right of appeal to an independent tribunal, elimination of conflicting land uses, control of temporary land uses, to name but a few.

Thirdly, planning on a territorial or sub-regional basis is presently an administrative process. This is undesirable because this is planning at the highest level and consultation is at best piecemeal, apart from the difficulty of ascertaining whether opinions expressed are accepted, whether wholly or in part. One consequence is that where properties are down-zoned their owners, particularly private

individuals, are often ignorant of the fact of down-zoning and are therefore unable to raise objections in time.

I now turn to deal with the need for economic and financial impact studies. The consultative document recognizes that the planning process is concerned with land use. In view of the unusual circumstances that we have in Hong Kong, two of which are a sizeable population and a restrictive supply of land, any planning process will definitely have a significant effect on land values. Therefore if planning is to be carried out fairly, equitably and properly, it must be carried out with fiscal responsibility. This responsibility is hardly reflected in the existing planning system and seems to find no place at all in the consultative document. Compensation and betterment is referred to in the consultative document as an area of concern but has, in my view, been made the subject of a separate consultation for purely tactical reasons. It is not possible to separate into two the inextricably linked issues of planning on the one hand and compensation and betterment on the other. If we want to decide on a new planning system, particularly where the object of the exercise is to have a fairer and more effective statutory planning system, it seems to me that the consultative document is incomplete for it fails to take into account the fiscal effects of the planning processes it proposes.

The next point concerns the drastic change in the existing land development system if what is proposed in the consultative document is to be adopted. At present, development of land is controlled through some basic mechanisms: the land tenure system, the Building Planning Regulations, and the Town Planning Ordinance. This is an arrangement that has gone on for some time and is quite well understood by those associated with the development process. Nevertheless, in recent years planning seems to override contractual rights and obligations under Crown leases and our laws in that new limitations have imposed density rather than land use without any form of compensation to the owner. The consultative document proposes to extend these powers even further without considering a cost benefit analysis or compensation to private property owners. All this is to be carried out under the guise that it is for the public good but the real question is this, and I quote: "Is it for the public good, and can the public afford it?"

I shall now deal with some of the implications of the proposals outlined in the consultative document. Picking up from the question that I asked, and that is: "Is it for the public good, and can the public afford it?", it seems to me that it is necessary to assess the overall implications of any resulting legislation if

proposals outlined in the consultative document were made law. One obvious result would be a significant increase in the time involved through extensive public consultation as well as processing time. This would increase additional resource requirements within the Administration, additional professional fees, but most importantly incredible time being devoted to this process. The immediate effect would be to slow down the production of new and much needed residential flats at a time when there is great public pressure on the Government to release additional land. One does not have to be a genius to conclude that the prices of homes will therefore increase due to a reducing supply of new flats. Surely, this is not what the public expects.

Another aspect outlined in the consultative document is the planning certificate system which is essentially modelled on the comprehensive planning system in the United Kingdom and is one which gives a huge discretion to the proposed Planning Board. Such a planning certificate system will result in a two-tier land value system, namely, sites with planning permission and those without. Is this what Hong Kong really wants? It seems extraordinary for Hong Kong to move in this direction at a time when Royal Assent was given to the Planning and Compensation Act 1991 in the United Kingdom which actually moves the planning system in the United Kingdom towards the system presently used in Hong Kong.

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