ENG-1992-01-29 — Page 1

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OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 29 January 1992

The Council met at half-past Two o'clock

PRESENT

THE DEPUTY PRESIDENT

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

THE CHIEF SECRETARY

THE HONOURABLE GRAHAM BARNES, C.B.E., J.P.

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 SZETO WAH

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.

DR THE HONOURABLE LEONG CHE-HUNG

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 VINCENT CHENG HOI-CHUEN

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 MISS EMILY LAU WAI-HING 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

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

THE HONOURABLE HOWARD YOUNG

THE HONOURABLE ZACHARY WONG WAI-YIN

ABSENT

DR THE HONOURABLE PHILIP WONG YU-HONG

IN ATTENDANCE

MR YEUNG KAI-YIN, J.P.

SECRETARY FOR THE TREASURY

MR JOHN CHAN CHO-CHAK, L.V.O., O.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER

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

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

SECRETARY FOR RECREATION AND CULTURE

MR MICHAEL SZE CHO-CHEUNG, I.S.O., J.P.

SECRETARY FOR CONSTITUTIONAL AFFAIRS

MR BOWEN LEUNG PO-WING, J.P.

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS

MR STUART WREFORD HARBINSON, J.P.

SECRETARY FOR TRADE AND INDUSTRY

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. Subsidiary Legislation L.N. No.

Public Order Curfew (Variation) Order 1992........................ 10/92 Public Order Curfew (Variation) Order 1992........................ 10/92

Merchant Shipping (Safety) (Cargo Ship Safety

Equipment Survey) Regulations (Amendment

of Schedules) Notice 1992............................................. of Schedules) Notice 1992............................................. 11/92

Merchant Shipping (Safety) (Navigational

Warnings) Regulations (Amendment of

Schedule) Notice 1992.................................................. 12/92

Oral answers to questions

Institutional service for the severely mentally handicapped

1. MR VINCENT CHENG asked: Will the Government inform this Council: 1. MR VINCENT CHENG asked: Will the Government inform this Council:

(a) how many severely mentally handicapped persons are awaiting admission into (a) how many severely mentally handicapped persons are awaiting admission into residential institutions for the handicapped;

(b) whether these res (b) whether these res whether these residential institutions have the right to reject the more idential institutions have the right to reject the more severely handicapped; if so, what alternatives are available to these persons; and

(c) what measures, if any, the Government will take to reduce the shortage of (c) what measures, if any, the Government will take to reduce the shortage of places in these residential institutions?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I would begin by referring to the currently accepted definition of the term "severely mentally handicapped persons". This is to avoid any confusion of terms. "Severely mentally handicapped persons" are those with an IQ below 25 and/or those with no basic self-care skills thereby requiring personalized care and training in residential hostels.

As regards part (a) of the question, of the total number of 1 469 persons awaiting residential placement, 735 are severely mentally handicapped persons.

As regards part (b) of the question, there are two main criteria for admission. First, the individual must be assessed by a clinical psychologist to be severely mentally handicapped. Secondly, the individual must have special social needs, for example, those who are homeless, or come from an unfavourable home environment and who cannot live independently. Barring cases requiring medical care, severely

mentally handicapped persons are admitted as long as they satisfy the above criteria and as vacancies exist.

As regards part (c) of the question, the Administration has taken a number of measures to assist families to look after their severely mentally handicapped persons. Apart from increasing the number of residential places, for those who are not yet in these hostels, a higher disability allowance, presently at $1,450 per month per individual, has been introduced since 1987 to help parents look after those who need special care at home. Any severely mentally handicapped person who requires constant attendance in his/her daily life but is not receiving such care in a government or subvented institution is eligible for the allowance. Additionally, of the whole range of services for mentally handicapped persons, for example, centre-based programme or community-based rehabilitative programme, there are specifically five home-based training teams. These teams provide training to 400 families at any one time, to

help families to look after their severely mentally handicapped relatives at home.

More importantly, the Administration will keep up the effort to build new hostels until the demand is fully met. Three new hostels, providing 318 additional places, will be completed in the current financial year. Indeed, soon after the Chinese New Year, the Po Leung Kuk Y. C. Cheng Centre, a specially designed hostel cum day activity centre with a capacity of 200 hostel places, will be officially opened. Three new hostels and two expansion projects with a total of 149 additional places will come on stream in the next financial year. We plan to provide a further 390 additional places, of which 340 places are expected to be available by 1994-95. Additionally, we have just completed a pilot scheme on Respite Service and we plan to introduce a new care and attention service. Three such homes providing a total of 120 places are expected to be completed by 1995-96.

The fact that there is, and will continue to be, a constant supply of additional hostel places testifies to the strenuous effort and hard work we have put into the planning process over the years. The Administration has endeavoured, and will continue to endeavour, to meet the full demand for residential services for severely mentally handicapped persons. However, much still needs to be done. Not only do we need to care for the handicapped persons themselves, but also to help the carers. To tackle the problem expeditiously and effectively requires not only the Government, but also non-governmental organizations, the community at large and the parents who are the natural resources for rehabilitative services, to work together. The value of a co-ordinated joint effort has been advanced by many leading authorities in this field and has been recognized in the Sixth Asian Conference on the subject of services for mentally handicapped persons and, indeed, has been practised in Hong Kong.

MR VINCENT CHENG: Mr Deputy President, would the Administration consider helping Hong Kong voluntary agencies to set up such facilities across the border in Shenzhen to provide residential services for the more severely handicapped and mentally handicapped people, given the fact that there is indeed a shortage and also the fact that our financial constraints would dictate the need for cheaper costs which is achievable if it is done across the border?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, it is certainly a novel idea and might be worth exploring. If such an innovative approach were formally put up,

I would wish to examine it very carefully, in consultation with the relevant authorities. If I might add, lest it should be misunderstood, the services we provide in Hong Kong are of the right standard and quite cost effective. It is not a Rolls Royce service; it is not even a Rolls Royce service at the price of a Ford; if anything, it might be a free Ford. If I might also say, Mr Deputy President, notwithstanding the slings and arrows of criticism regarding lack of progress or speed, there is no quick fix in the provision of residential services. The Government, the non governmental organizations and the community, including the parents, are, I know, committed to the programme so that we can meet full demand as quickly as we can.

MR ERIC LI: Mr Deputy President, I am indeed pleased to hear about all this forward planning but I wonder, under the present environment of an austerity drive, whether these plans are shared by the Finance Branch. In particular, I understand that the Green Paper on rehabilitation is going to be a forum for such negotiation. In view of the reported delay in the release of this Green Paper, would the Administration inform this Council whether this would indicate that the Administration as a whole lacks the resources to actually implement these planned measures for already

established needs?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, first of all, before a Green Paper turns White, it is a policy options paper; it is for wide consultation. It provides various options for certain policies to be changed or adopted. It provides a new agenda for the future; new attitudes, persuading the community to share the attitudes together in terms of removing discrimination, giving the right

opportunities to people who are less fortunate than ourselves; but it is not a White Paper. In other words, it is not a government policy statement. It is certainly not a Finance Committee paper; so it does not provide funds for the provision of services. It is my intention very soon to lay the Green Paper before this Council to start the wide consultation as appropriate. As far as the services are concerned, whether or not we have the Green Paper is immaterial, because such services for the severely mentally handicapped people are already very high on our agenda. They are of high priority and will not be affected by the Green Paper or otherwise; so the speed of provision is not governed by the Green Paper. And we will do our best, as I said in my main reply, to keep on schedule with our programme, because for every project that we plan we need lead time. Purpose-built projects of a fair size will take about six to seven years. Projects in public housing take about two years. We are keeping

up with the plan. We are not tardy and it will not be held up by the publication or otherwise of any paper.

DEPUTY PRESIDENT: We have a large number of supplementaries awaiting answer and we have a very full agenda. I will not be taking any more supplementary questions on this main question.

MR WONG WAI-YIN (in Cantonese): Mr Deputy President, may I ask the Secretary how long is the normal waiting time for admission to residential institutions for the severely mentally handicapped? Just now the Secretary mentioned that the Administration had put in a lot of efforts in order that full demand could be met ultimately. Under the present financial constraint, and given the fact that distribution of resources in the public sector has all along been inequitable, when will the Administration expect to realize its desired if not almost fictitious goal mentioned by the

Secretary?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, may I take on the last part of the criticism first. I certainly hope that we all share the common ideal and common dream; if we do not, who will? But I will not call that "castles in the air", "building empty dreams" or "making empty promises". So let us be absolutely truthful on the time and waiting time. The waiting time is to a large extent dependent on the lead time in planning for the setting up of a hostel. Hostels in public housing take about, as I earlier mentioned, two to three years to build and complete. Purpose-built

hostels take about six to seven years because it involves three factors: find the land, find the people, find the money. And these factors are interlocked -- manpower resources, financial resources, premises suitable for such purpose. Because a lot of the severely mentally handicapped people are also physically handicapped, there is a need to provide access for the wheelchair. Some of the old hostels are not accessible to the wheelchair; so we have got to have all these factors taken into consideration.

Some facilities are completed faster than others because they are built with donation money and therefore it cuts short the processing time, but even then, that takes about 18 months. As regards the actual known figure of shortage, as I have said in my main reply, there is a long waiting list of over 700 people, and the list

is growing because for every single person who enters our list that person is allocated a slot for the future, if not for the present. And there is no turnover because once we are committed to caring for that person in a hostel, we must look after the person for the rest of his or her life. So the total known number of severely mentally handicapped people in Hong Kong at the moment is about 3 600. But out of this number, not all people require residential services; only slightly over 700 are really waiting for residential services. I must admit that I have this hope to overcome the problem in five years' time and to meet the full demand in 10 years' time. This is not too optimistic, but this is the goal which I and my colleagues are after and we are working very hard in that respect.

MR PANG CHUN-HOI (in Cantonese): Mr Deputy President, may I ask if the Administration has any plan to help the families of these severely mentally handicapped persons?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, as I said in my main reply, we really try to help the carers because the carers' fatigue is a real problem. So we have completed the pilot scheme on Respite Service which really relieves the pressure on the family but the numbers are so small at the moment, because it is still at the experimental stage. If it is successful, we hope that will give the parents some leeway to manoeuvre. In other words, parents who constantly look after their children at home are under tremendous strain; I appreciate that. At the same time we also have training teams that go out to the families to teach the family how to look after the handicapped people in their own home surroundings. But I admit that residential service is very much needed for those who cannot be looked after at home.

But here, I would like to also put the other point of view which is a moral p But here, I would like to also put the other point of view which is a moral point of view, and that is that residential places in hostels are not the be all and end all because very often such service may be seen as separation of the severely mentally handicapped person from his or her family. Indeed, we have some leading scholars, even in Hong Kong, who say, if I might quote:

"Putting away a mentally handicapped person in a residential institution is not the right answer as it defeats our goal of integration. It also discourages the parents and siblings to meet the challenge of life."

And separately, another scholar said:

"More and more parents will regard residential service as the ultimate solution and refuse to keep their mentally handicapped children at home. Efforts should be made to explore other means as a community-based training programme through the formation of small groups."

Now as I said earlier, there is no quick fix to the problem; so collaborative, co-operative, collective response to resolve the problem will enable us to see the future needs of the mentally handicapped people.

PROF FELICE LIEH MAK: Mr Deputy President, will the Administration inform this Council of the progress made in opening the facilities for the severely mentally handicapped in Tuen Mun Hospital?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, if I understand it correctly the question is one which relates to severely mentally handicapped people who require medical care; so it is under the Hospital Authority rather than the social welfare network. We have 200 places in Tuen Mun but we are expanding to 300 places in the reprovisioned Siu Lam and that should be completed within 18 months, I think.

MR EDWARD HO: Mr Deputy President, I wonder whether the scholars the Secretary has quoted have ever suffered the anguish of having severely mentally retarded children at home. But anyway my question is relating to the Secretary's reply to Mr Vincent CHENG's question. With respect, I do not think she has replied to the (b) part of the question which asks whether these residential institutions have the right to reject. The reply given by the Secretary only sets out the criteria for admission. The problem is that many of these institutions reject severely mentally handicapped people who are also physically handicapped. Would the Secretary please reply to that?

SECRETARY FOR HEALTH AND WELFARE: I think I did reply in my main answer to part (b) of the question because the two basic criteria are the criteria for admission and as long as there are vacancies the institutions will accept the applicants. But I am aware that during the whole of last year, there were only 24 cases which might

possibly be called rejections. In fact they were not rejections in the strict sense because 14 cases related to those who needed medical care and so they were referred to hospitals; there were other cases which were blocked because of the problem of access. As some of the severely mentally handicapped people need to be in wheelchairs and some of the older hostels do not have appropriate access facilities, so they were referred separately. The new homes do not have this problem of access but generally there is a shortage of these homes with access facilities. On the question of access, I think of the 16 hostels, six have access problems. So we are going to think of ways of building ramps for the wheelchair-bound. Therefore it is not a question of rejection. I am not aware that agencies have rejected applicants by abusing the criteria. If I were, I would certainly look into this. But if any rejected person considers the rejection to be unjustified, please let me know and I will look into it.

DR HUANG CHEN-YA (in Cantonese): Mr Deputy President, I am very pleased to learn from the Secretary the efforts made in this respect. My worry, however, is whether the services provided can keep up with the demand. First, will the Administration advise this Council what is the annual growth rate of the severely mentally handicapped population; and second, I am afraid that these "golden Rolls Royces" will not have four wheels, will they not? In other words, what kind of training is available to staff now working in hostels for the severely mentally handicapped? Will there be enough manpower when a number of new hostels are completed?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I do not have the details regarding the number of people working in the hostels. But I know of a fair-sized and purpose-built hostel requiring 29 people, including nurses, social workers, welfare workers and personal care people. In the whole environment of welfare services in Hong Kong there is currently less than full provision; there is still manpower shortage. So I suspect that manpower planning, in terms of future expansion, is equally high in our priority so as to make sure that the hostels are built and properly served. However, I do not have the figures to relate to the overall manpower planning for all the future hostels which are coming on stream, but I can reply in writing (Annex I). I do not think this is a matter which can be resolved by fear or worry; all it really needs is a dedication to build, to lay open our policy and to make sure that we keep to our schedule.

DR YEUNG SUM (in Cantonese): Mr Deputy President, I am glad to hear from the Secretary that six or seven hostels are going to be built. This would mean a lot to the disabled. However, I would like to draw the Secretary's particular attention to that group of disabled who, apart from being severely mentally handicapped, are also

wheelchair-bound for life. They are aged between nine and 16, attend special schools and have to return home after graduation. Thereafter, they have to be carried by their parents wherever they go. I hope the Secretary will have special regard to the fact that some severely mentally handicapped persons have nowhere to go because they cannot be admitted due to access problems in some hostels mentioned earlier. Though Siu Lam Hospital can provide 200 places, there are over a thousand on the waiting list, and vacancies would arise only in the vent of death of inmates. I hope the Administration will provide residential services for this particular group of people.

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I should like to thank the Honourable YEUNG Sum for his statement which I will note.

MR FRED LI (in Cantonese): Mr Deputy President, in view of the large number of severely mentally handicapped persons awaiting admission in the next few years, especially in the case of the "multiple-handicapped" mentioned by Dr YEUNG, will the Administration consider catering to the urgent need of the severely mentally handicapped by buying places from private hostels, in a similar way that the Administration buys places fro homes for the elderly, so as to alleviate the heavy burden of these parents?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, this is a very interesting idea which needs pursuing and I will undertake to pursue that.

MR PETER WONG: Mr Deputy President, in addition to having to worry about their offspring while waiting in the queue, parents have a genuine fear that qualified workers will emigrate leaving them unserviced in the future. So I am very pleased to note that there are now five training teams but they have to work at home. Would the Secretary advise what facilities there are to train the parents who are still

on the waiting list and, more importantly, whether there is provision for a place for the parents to meet so that they can engage in mutual help or self help in caring for their unfortunate offspring?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the teams I referred to in the main reply are specifically to help and train the parents in their home environment. In respect of the second part of the question which asks how we would help the parents to get together to engage in mutual or self help, I think that is indeed one of the innovative measures which we would want to pursue. We need, of course, additional funding and we are in fact joining hands with the parents and the Social Welfare

Department to consider how speedily we can get the first pilot scheme off the ground. I cannot make any promises but I do think this is one of the options open. This is one of the new ideas which we are exploring. And as I said in the main reply, it is a collective response and a collaborative effort, and it is in that direction that I welcome all the new suggestions. But may I also touch upon the idea of innovation. Innovation can be easily misunderstood as the Government shirking its responsibility. Please do not consider that to be one of the ways the Government avoids commitment. Innovation is additional to the Government's commitment. It is one way of dealing with a problem imaginatively and involving a social and community effort which is worth pursuing.

Hospital Authority's control on medical supplies

2. DR CONRAD LAM asked (in Cantonese): Will the Government inform this Council how 2. DR CONRAD LAM asked (in Cantonese): Will the Government inform this Council how the Hospital Authority monitors and supervises the operation of the hospitals to prevent them from running short of drugs and other essential medical supplies?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the Hospital Authority monitors the usage of drugs and medical supplies in hospitals through a combination of budgetary management as well as inventory control.

In terms of budgetary management, ex-government hospitals channel their usage patterns of drugs and medical supplies to the Authority through the Ledger Accounting Financial Information System (LAFIS) whilst ex-subvented hospitals maintaining their own accounting systems are required to submit monthly financial reports to the

Authority. Such information is then examined by the head office of the Authority to detect potential deficiencies and determine the need, if any, for redeployment of resources.

As regards inventory control, individual hospitals are charged with the responsibility to monitor their own supply and usage of drugs and to alert the Authority to the need for additional resources. This is effected in the main through Drug Monitoring Committees or Hospital Professional Committees comprising all key professional and management staff.

Furthermore, there is a fully computerized system for ordering and inventory Furthermore, there is a fully computerized system for ordering and inventory control at the five major ex-government hospitals, namely, Queen Mary Hospital, Queen Elizabeth Hospital, Princess Margaret Hospital, Prince of Wales Hospital and Tuen Mun Hospital. This provides essential data on stock level, usage rates and trends and optimal ordering intervals.

The Chief Pharmacist at the Authority head office regularly monitors the overall situation of medical supplies among these five hospitals through on-line facilities. Consideration is being given to extending this system to other hospitals and specialist clinics in the longer term.

DR CONRAD LAM (in Cantonese): Mr Deputy President, recently a doctor of the Prince of Wales Hospital stated that the hospital would be running out of money to buy drugs because it was about to sue up all the funds it received from the Government and this had caused considerable alarm in the community. But a spokesman for the Hospital Authority said that was untrue. Will the Administration advise this Council whether the public should believe the statement of the Hospital Authority's spokesman or that of the doctor? What would the Administration do if the hospital concerned really uses up all its funds?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, in respect of the famous Prince of Wales Hospital saga, I do not think one needs a Secretary for Health and Welfare, one needs the King of the Solomon Islands or King Solomon better -- in the historical sense. I think the Hospital Authority has already made clear its view which is that there is no question of services to patients being reduced through a lack of drugs. The Prince of Wales Hospital saga regarding the lack of drugs was caused by a

misunderstanding. I have done some preliminary investigation into the whole saga and I am given to understand that early this month there was a balance of two months' supply of drugs as well as $4.2 million in uncommitted funds for additional supplies. Furthermore, the Prince of Wales Hospital has been authorized to over-commit

expenditure by 25% of its allocation for contingency services. The question of lack of cure through lack of drugs will not arise.

DEPUTY PRESIDENT: I will not be taking any additional supplementaries beyond the list I have already got.

MR ANDREW WONG: Mr Deputy President, from the Secretary's answer, particularly that part about LAFIS and about budgetary management, the impression I get is that those who waste, for example the Queen Mary Hospital, will be rewarded with more cash and more supplies, and those who economize, for example the Prince of Wales Hospital, will be penalized. Will the Secretary confirm that my interpretation is correct? If it is not correct, could I be given a second impression as to what the whole saga is all about?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I am no King Solomon but I do not think that Mr WONG's understanding is correct. I do not think there is imbalance or inequity in allocation of funds for drugs or other medical supplies. The amount of resources provided to each hospital is not based on its ability to scream but is determined in accordance with a number of interrelated factors such as utility, utilization of beds, case-mix, and past pattern of expenditure. I have every confidence that our medical professionals and other related professionals, dedicated to the service of the public as they are, will do their best to monitor, counter-check and be on the alert to ensure there are enough drugs in store. So for this reason, I do not think that the alarm which has been caused by certain reports is something we need to really worry about. But I am still looking into this; my preliminary conclusion is that there is no question of patients not being looked after properly in our hospitals in Hong Kong.

MR TIK CHI-YUEN (in Cantonese): Mr Deputy President, recently there have been a lot of controversies over the allocation of resources between different hospitals. Will

the Administration inform this Council of the criteria and objective standards the Administration used in determining the allocation of resources? Is the Administration going to conduct a review on the existing allocation practice so as to explain to the public what has been happening?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I was trying to explain, perhaps not clearly enough, that there is no imbalance in the allocation of funds. Hong Kong is a society where a patient can go to any hospital. So the allocation of funds is not based on population in isolation; it is based, as I was saying in my previous supplementary reply, on a number of factors such as case-mix, population, pattern of expenditure, and the specialty of service existing in certain hospitals. The concept, therefore, of allocation of money really relates to the degree or pattern of utilization in the past. Now I can give figures to show that although the allocation may be large for some hospitals, there are very good reasons for that. I will, as an example, cite this year's revised estimates for four large hospitals. The Queen Mary Hospital's allocation this year for medical drugs is $70.65 million and specialist supplies, including supplies of items such as dressing, chemicals, medical instruments, laboratory equipment, bedding and linen is $69.57 million; these make up a total of $140.22 million. For the Queen Elizabeth Hospital, it is $69.25 and $62.2 respectively, making a total of $131.45 million. For the Princess Margaret Hospital, it is $35.97 and $39.49 respectively, making a total of $75.46 million. For the Prince of Wales Hospital it is $44.2 million and $48.99 million respectively, making a total of $93.19 million. From the figures one would know that the Queen Mary Hospital gets the most. But let us also recognize that the significantly higher provision for the Queen Mary Hospital is probably also due, among other factors, to its taking in more cancer and leukaemia patients, for whom the medication is very costly.

MR MICHAEL HO (in Cantonese): Mr Deputy President, the Secretary's reply just now has, I believe, put the heart of many of our colleagues at ease. I also think that the incident of the Prince of Wales Hospital has been clarified. However, concerning the control on the purchase of drugs, will the Administration inform this Council, if control is relaxed after this incident, whether this would lead to a significant increase in the cost of drugs because some controlling officers may be "over

generous"?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I would also, on behalf of the Hospital Authority, say that the Hospital Authority and its professional staff through the various committees referred to in my main reply, that is to say the Drug Monitoring Committees and Hospital Professional Committees, will do their utmost to ensure there is cost containment and no wastage.

MISS EMILY LAU (in Cantonese): Mr Deputy President, I would like to follow up the issue concerning the Prince of Wales Hospital in Shatin. I understand that the Secretary is no King Solomon. However, she will discover from this incident that there may be disputes between doctors or problems between the professors and the Hospital Authority. Can the Secretary clarify whether certain mechanisms will be introduced to facilitate good communication between the professors and the Hospital Authority, thus preventing disputes from arising? Since many people will panic if there is an announcement that hospitals are running short of drugs, and it takes time for the Administration to clarify, so if communication problems do exist, would the Secretary try to find a way to avoid misunderstandings?

SECRETARY FOR HEALTH AND WELFARE: I am very grateful for this point raised. I cannot speculate on how and why such reports came about. I read probably the same magazines and papers that the Honourable Miss Emily LAU read, but I do not comment on anything I do not understand or any motivation behind it which I cannot feel. But I do think there is probably a need for improving the communication network, and I am happy to report that both the Hospital Authority senior management and the professors of

different universities have shown goodwill and dedication to communicate so that they can forestall any misunderstanding before the misunderstanding actually arises. I am comforted by their goodwill and their collaborative effort in seeking a good communication channel with each other, and I will do my best to help if my help is needed.

DR LEONG CHE-HUNG: Mr Deputy President, I am thankful to the Secretary for clearing part of the worry in the air. As regards budgetary management, the current outcry in the media has highlighted the discrepancy in provision of funds in a certain hospital which has led to delay in patients' treatment, or to patients being sent to another hospital for treatment. Could the Secretary confirm to this Council the

validity of this allegation, explain why this has happened, and assure the public that the sick will get proper care in any hospital anywhere in Hong Kong?

SECRETARY FOR HEALTH AND WELFARE: I really cannot comment, Mr Deputy President, on a case which I have not looked into and therefore I cannot comment on this alleged case. However, through my consultations with the Hospital Authority and the University Hospital professors, I can assure the Hong Kong public that patients in Hong Kong are given every good and dedicated care that they can hope for. We cannot have better professional people anywhere else in the world than in Hong Kong. They are professionals of whom Hong Kong people should be proud, and I do not think our faith should be shaken by a few isolated cases which might, after all, have perfectly legitimate reasons -- but which are unknown to me because I do not know the case. But if Dr LEONG could speak to me afterwards to give me the details, I can provide a written answer to that.

MR MAN SAI-CHEONG (in Cantonese): Mr Deputy President, the Secretary has been acclaimed as "a prudent housewife", but "even a prudent housewife cannot cook without rice". I am worried by recent reports that the Administration had requested the Hospital Authority to cut its expenses by 1% to 2%. Is such report true and will the cut lead to shortage in drugs and other supplies in hospitals?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, first of all may I say, with respect, that the question has meandered outside the scope of the original question. I am not aware of any so-called cuts. The Hospital Authority will be given a large budget the rationale for which was debated when the Hospital Authority Bill came before this Council last year.

PROF FELICE LIEH MAK: Mr Deputy President, will the Administration inform this Council whether there is any attempt to ensure a more equitable distribution of resources? It is evident that a small number of people, mainly organ transplant patients and cancer patients, receive the most expensive drugs. In the face of limited resources, how will the Administration ensure that patients in the General Outpatient Department will not be deprived of the appropriate level of medication?

SECRETARY FOR HEALTH AND WELFARE: May I answer the question in two parts, Mr Deputy President. As regards the first part, the Hospital Authority, I understand, is now in the process of conducting a review of the overall provision of medical services in the territory; in the course of the review they will be looking at the resource allocation on an equitable and balanced basis. I cannot pre-empt the outcome of the review but I think the aspirations of this Council will be taken into account.

As to the wider question of financing medical and health services, I will be As to the wider question of financing medical and health services, I will be setting up a study group on the waiver and fee-charging system, not only for the health side but also the hospital and welfare side. I intend to gather all the strands of thought and put them in a Green Paper, which is an option paper, for discussion and tabling in this Council some time this year.

MR WONG WAI-YIN (in Cantonese): Mr Deputy President, it is known that different drugs can be used in the treatment of the same disease. At present, some hospitals prefer using more expensive drugs while others prefer less expensive ones. Is this situation true? Has the Administration issued a guideline for hospitals on the purchase of drugs?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the question of what drugs to give to patients is not an area where a humble Administrative Officer like me would dare to venture into. I will defer entirely to the judgment of the professionals in dispensing drugs.

MR PETER WONG: Mr Deputy President, the drug controller is the Chief Pharmacist and he sits and looks from on high in his office but he cannot control the quantity nor the quality of drugs which are prescribed by doctors at a hospital -- which point has just been explained. And the doctor's only prescribed occupation is to cure his patients quickly and effectively and he has no knowledge of costs, nor does he need to care about economy. So my question is: in these circumstances how can the Chief Pharmacist be accountable?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, that is a very difficult

question because the control of money, although it is theoretically in the hands of one person, is in fact through a whole network of controls, such as management control, budgetary control and inventory control. I think the philosophy of cost containment in fact is a culture which needs to be cultivated and understood. In a way I tend to agree with the question itself in my reply in that the culture is not yet fully understood in Hong Kong and the more it is discussed in the open the better it will be, so that people will realize that drugs really should be dispensed when absolutely needed, based on professional judgment. In answering this question I am in no way saying that there is any waste at the moment but I do think there should be much more awareness, that is to say a culture, to be cultivated in Hong Kong regarding cost containment; and it was indeed largely for this that the Hospital Authority was set up.

River training schemes

3. MR TIK CHI-YUEN asked (in Cantonese): Regarding the river training schemes 3. MR TIK CHI-YUEN asked (in Cantonese): Regarding the river training schemes designed to address the flooding problem in northern New Territories, will the Administration inform this Council:

(a) whether the training of Shenzhen River can only be (a) whether the training of Shenzhen River can only be whether the training of Shenzhen River can only be carried out with the carried out with the co-operation of the Chinese Authorities;

(b) if so, which department is responsible for negotiating with the Chinese (b) if so, which department is responsible for negotiating with the Chinese authorities, and for carrying out the works, and what progress has been made so far; and

(c) what measures will be (c) what measures will be what measures will be taken before the completion of the works in order to taken before the completion of the works in order to avoid or reduce the impact of flooding on the residents of North District?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the training of Shenzhen River was first conceived as a joint project between the Hong Kong and Shenzhen authorities and hence the involvement and co-operation of both parties are required. On the side of the Hong Kong Government, the Drainage Services Department is responsible for the project. Discussions had been held with the Shenzhen authorities over the past few years but there is no final conclusion on the commencement of the project.

With regard to the third part of the question, a number of measures are being introduced as recommended under the Territorial Land Drainage and Flood Control Strategy Study.

On structural measures, the Drainage Services Department is clearing up all the cross road drains and culverts to enable the drainage network to operate at maximum capacity. Drainage improvement works at Tai Hang, Ganges River, Kwu Tung and Muk Wu, costing $6.4 million, will be completed by mid-1994. Furthermore, a road

embankment to protect Sheung Shui Tsuen from flood water and a pump storage system to drain the low lying areas were completed in 1990 at a cost of $25 million. The total area protected by the scheme is 26 hectares. Long-term plans to introduce major channel improvements works at River Indus and other streamcourses in the North District are also being drawn up.

In addition, the Drainage Services Department is designing a comprehensive In addition, the Drainage Services Department is designing a comprehensive package of drainage management and development control measures for the benefit of the New Territories as a whole. These measures include a flood siren and a real-time flood forecasting system which will be implemented in May this year and February 1993 respectively. New legislation is being prepared for introduction to this Council towards the end of this year to empower government departments to gain access to private land to maintain watercourses. Finally, Drainage Impact Assessments have, since December 1990, been required of all new developments and development permission will not be given unless such developments will not aggravate the flooding problem in areas within drainage basins.

MR TIK CHI-YUEN (in Cantonese): Mr Deputy President, it was pointed out in the first paragraph of the Administration's reply that there were discussions with the Chinese authorities on the training of Shenzhen River but no final conclusion on the commencement of the project had been reached. Could the Administration inform this Council when a decision will be made? Will the training of Shenzhen River bring about any change or indistinctness to the existing boundary? If so, how will the problem be resolved? If the boundary is changed, who are those residents that will be affected and how will the Administration deal with this?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): We have not agreed on

a date for the commencement of the project because of a number of reasons, such as that of financial arrangements and fund allocation. We had in fact conducted a cost-effectiveness study and found that the fund required for the flood control project far exceeded the benefits to be gained. Of course, on the environmental side, we will also have to conduct an impact assessment.

As regards the second part of the question concerning the boundary, Shenzhen River forms a boundary between Hong Kong and Shenzhen. Any change in the river course must be looked at in the light of consequential change to the boundary and this is an issue that must be discussed. No date has hitherto been fixed for the commencement of the project.

MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy President, it was reported that Mr ZHU Shenlin, the newly appointed Guangdong Governor, had mentioned that the Shenzhen and Hong Kong authorities would join hands to train rivers and this had been included in the agenda for final approval by the State Council. Could the Administration inform this Council if the authorities concerned were aware of that? If so, will the Administration join forces with the Guangdong authorities to work out the projects,

so that the above problems can be solved?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): I cannot comment on what a Chinese official said in a newspaper.

MR GILBERT LEUNG (in Cantonese): Mr Deputy President, we all know that flooding in the North District is a very serious problem. In the past three years, there had been very serious flooding and large amounts of crops were damaged. Could the Administration inform this Council of the main causes of flooding in the North District and the remedial measures the Administration can take to bring the flooding problem under control?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr Deputy President, in a written reply I tabled before this Council on 18 December 1991 concerning the causes of flooding in Tuen Mun and Yuen Long, the causes mentioned then are also applicable to that of the North District. These include blockage of river courses

by plants and silt and filling of fishponds and the laying of unauthorized sewage systems. Furthermore, the dumping of crops into rivers had also caused blockage. In general, most of the floodings can be controlled by way of prevention projects or legislation. And improvements can also be made through development projects.

DR SAMUEL WONG: Mr Deputy President, would the package of drainage management and development control measures, as mentioned in the last paragraph of the Policy Secretary's reply, require additional resources? If yes, could these be provided, even though most government departments are having zero growth in the coming years?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Yes, Mr Deputy President, we have in fact, as I mentioned in the last paragraph of my main reply, funds to introduce a real-time flood forecasting system as well as a flood siren, and this will be implemented as indicated in my reply. I believe Dr WONG actually may be referring to the third paragraph of my main reply although he said the last paragraph, because the project covered in the last paragraph does not really require much money. I mentioned several projects in the third paragraph of my reply, namely, improvement works at Tai Hang, Ganges River, Kwu Tung and Muk Wu. Funds are provided and the projects should be completed on time. Actually, two of the projects were started last year. We do not have funds for the major channel improvement works at River Indus and the streamcourses in the North District for two reasons: the first one is that these improvement works are still being designed and therefore we are not yet in a position to correctly estimate the funds required; and the second reason is that we are still working on the planned start dates for these projects. However, I should issue a word of warning and that is that the present indications show that the major channel improvement works in those areas are likely to cost a very huge sum, to the tune of over $2 billion.

MR ALBERT CHAN (in Cantonese): Mr Deputy President, will the river training project affect the ecology and the farmland nearby; if so, what measures will be taken to adequately protect the natural environment and will compensation be given to those farmers whose land has been affected by the project?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr Deputy President,

regarding the ecological effects of the training of Shenzhen River the most seriously affected area will perhaps be Mai Po nature preserve. Moreover, with the widening of the river the interflow of river water will be slowed down. Since a proper assessment has yet to be made, we can only say at the present moment that they should have certainly need to have a detailed assessment on the environmental impact first. This is also one of the reasons for the delay in the commissioning of the project.

MR LEE WING-TAT (in Cantonese): Mr Deputy President, in the last paragraph of his main reply, Mr LEUNG has mentioned that "Drainage Impact Assessments have, since December 1990, been required of all new developments". But in last few years, with developments of flyovers and roadworks in the New Territories, flooding occurs very frequently during the rainy summer season. Could I ask the Administration whether the effectiveness of these assessments have been reviewed and which departments will be responsible for seeing to it that the rivers or drains will be duely cleared by the developers concerned if flooding occurs as a result of these development?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr Deputy President, the flooding in the North District was in fact not very serious in the last few years. I believe Members still remember that there have not been many rainstorms or typhoons in the last couple of years. As of today we have only recorded 21 cases of minor flooding, the most serious being the one in 1989 when Typhoon Brenda visited Hong Kong; the rest are of a much smaller scale. In general, whenever a report of flooding is received, staff of the Drainage Services Department will be sent to the affected areas to clear the drains nearby. The Highways Department will also examine whether the contractor should be responsible for the clearing work at the site. In most cases the Administration will very quickly arrange clearing and follow-up works to be done once a report of flooding is received.

REV FUNG CHI-WOOD (in Cantonese): Mr Deputy President, part of my question has already been answered; but may I ask whether the frequency of flooding in the North District has been increasing or otherwise in the last five years?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr Deputy President, as I have said just now, the scale and frequency of flooding depend very much on the

amount of rainfall in the territory. The last two years have been relatively dry in Hong Kong. Flooding was therefore less common in terms of numbers of floods occurred. If we look at the matter purely from statistical point of view the trend is that flooding is indeed decreasing in the last five years, but certainly its occurrence depends on the amount of rainfall in the territory. In 1988 and 1989 we had each year a typhoon which had brought about serious flooding in the northern part of the New Territories. Nevertheless rainfall became less in the last two years and there was an absence of typhoons, so complaints on flooding decreased drastically.

MR WONG WAI-YIN (in Cantonese): Mr Deputy President, part of my question has in fact been asked by Mr CHEUNG Man-kwong but the Secretary did not provide an answer. In the first paragraph of his main reply, Mr LEUNG said, "Discussions had been held with the Shenzhen authorities over the past few years but there is no final conclusion on the commencement of the project." Since discussions have been held for several years, could Mr LEUNG inform this Council in detail of the actual or specific

difficulties encountered in these years and the plans the Administration has to tackle these problems?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr Deputy President, there are several important points to which we must give consideration. The first is the funds required for the project; we have not enough financial resources to carry out the whole project at our present budget. Secondly, regarding the exchange of geotechnical and meteorological information, ample time should be allowed for the collection of information and necessary co-operation to take place. Moreover, staff deployment for the two sides in the course of the project, arrangement for works contractors and preparation for the project are also factors for consideration.

But the most important which I have mentioned just now is that we have examined But the most important which I have mentioned just now is that we have examined the cost-effectiveness of the project and discovered that the fund required far exceeds the benefits to be gained. So as far as fund allocation is concerned, this project is rather low on the priority list.

MR TIK CHI-YUEN (in Cantonese): Mr Deputy President, I am also very concerned about the progress of the training of Shenzhen River. Mr WONG Wai-yin has just now raised several points of doubt and from the official reply it seems that the Administration

also has a lot of questions in mind in respect of this project. Could I be enlightened as to whether these problems will lead to the shelving of the project; if not, whether the Administration will design a specific programme or schedule for this project, setting out in particular the discussions with the Chinese side on the project which, for instance, may include the date and agenda of the next meeting with the Chinese authorities?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS (in Cantonese): Mr Deputy President, in fact we have not fixed a date for the project; nor have we arranged a date for talks on the project to be resumed with the Chinese side. As a matter of fact the sums required for this project have not been made available in the vote, so it would appear premature to discuss the commencement of works at this stage. But the most important reason is that in consideration of this project we have other studies to make, one being the cost-effectiveness study and the other the environmental impact assessment. We have to be sure that the environment will not be seriously degraded before discussing the commencement of the project.

Written answers to questions

Control of high-powered speedboats

4. MRS RITA FAN asked: High-powered speedboats are key to sm 4. MRS RITA FAN asked: High-powered speedboats are key to sm MRS RITA FAN asked: High-powered speedboats are key to smugglers' operations and ugglers' operations and Hong Kong has outlawed the construction and use of such vessels. To stop the large number of vessels from continuing to intrude into Hong Kong waters, will the Government inform this Council what action has been taken to seek the co-operation of the relevant Chinese authorities to prohibit the construction, maintenance and repair of such vessels in Chinese territory and what progress has been achieved so far?

SECRETARY FOR SECURITY: Mr Deputy President, in 1991 the police held 10 formal meetings with the Chinese authorities. Smuggling and measures to control smuggling, including action against high-powered speedboats, were two of the principal concerns raised at these meetings. These concerns were also raised when the Director of the Guangdong Provincial Public Security Bureau visited Hong Kong and when the Commissioner of Police made a return visit. They have also been raised through border

liaison channels, most recently at the Annual Border Liaison Review meeting which took place on 27 January 1992.

We have passed to the Chinese authorities details of the locations from which we believe the speedboats are operating. We have also provided details of our legislation against the construction and use of speedboats designed for smuggling purposes.

The Chinese authorities have consistently affirmed their resolve to take action against smuggling activity, and have done so. We understand that about 200 speedboats were seized in crackdowns against smuggling in May to July and November 1991. We also understand that some districts on the Mainland are drawing up regulations to forbid the construction of speedboats used for smuggling.

We are continuing to press the Chinese to take further action against smuggling. We are pleased that there is increased co-operation between us in this regard.

Traffic situation at Man Kam To Border Crossing

5. MRS RITA FAN asked: Will the Government inform this Council whether it is 5. MRS RITA FAN asked: Will the Government inform this Council whether it is satisfied with the traffic situation at the Man Kam To Border Crossing following the full opening of the Lok Ma Chau Border Crossing on 8 August 1991, and if the answer is negative, what actions will be taken to improve the situation at the former crossing?

SECRETARY FOR TRANSPORT: Mr Deputy President, starting on 8 August last year, the operating period of the Lok Ma Chau border crossing was extended from eight to 12 hours per day, and the crossing was open to passengers as well as goods vehicles. Since then, the number of vehicle crossings has increased from under 5 000 to more than 5 500 per day. This increased utilization has resulted mainly from the continued diversion of vehicles from the Man Kam To crossing to Lok Ma Chau. For a while, this seemed to have eased the congestion problem at Man Kam To. However, taking advantage of the reduced traffic, drivers of goods vehicles with permits to use Man Kam To have been making additional trips through that crossing, thereby maintaining throughput close to its practical capacity of 9 700 vehicles a day. Peak hour congestion has therefore remained a problem.

To further reduce congestion at Man Kam To, the following measures have since been introduced or are being actively pursued:

(a) Issue of new cross-border vehicle permits (a) Issue of new cross-border vehicle permits

These will continue to be issued only for the Lok Ma Chau crossing. These will continue to be issued only for the Lok Ma Chau crossing. (b) Speeding up the processing time for vehicles (b) Speeding up the processing time for vehicles

Since 19 November 1991, officials on both sides have been processing vehicles at Man Kam To at the rate of about 200 to 250 per half hour. This improved rate has significantly reduced queue lengths and the associated waiting time. The new arrangement has now become permanent.

(c) Further diversion of vehicles to Lok Ma Chau (c) Further diversion of vehicles to Lok Ma Chau

Over 2 900 vehicles originally authorized to use Man Kam To have been diverted to Lok Ma Chau since the latter's opening in December 1989. This number will soon increase to 3 170. In addition, we are discussing with the Chinese side the possibility of further vehicle diversions.

Safety of the new airport

6. DR SAMUEL WONG asked: Will the Go 6. DR SAMUEL WONG asked: Will the Go DR SAMUEL WONG asked: Will the Government inform this Council: vernment inform this Council:

(a) whether, to provide for the safe operation of aircraft using Chek Lap Kok (a) whether, to provide for the safe operation of aircraft using Chek Lap Kok airport, consideration is still being given to removing certain topographical features and, for the 1525 metres runway separation, to effecting a cut of up to 2.08 million cubic metres over 11 hectares of land in both Tai Lam Country Park and Lantau; and

(b) whether the new airport will be a safe and modern one capable of serving Hong (b) whether the new airport will be a safe and modern one capable of serving Hong Kong for the next 30 to 50 years?

SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, in the initial years of the

new airport operation, specific procedures for handling the movement of aircraft have been developed in such a way as to limit the need for terrain cuts to the Brothers Islands, without compromising safety. Based on the current forecasts of air traffic growth and present technology, it is estimated that further terrain cuts on North Lantau and Tai Tam Country Park are unlikely to be required until 2005 and 2015

respectively.

No factor is more important than safety in the planning and operation of an a No factor is more important than safety in the planning and operation of an airport. The new airport has been planned to operate in accordance with the standards and recommended practices of the International Civil Aviation Organization (ICAO). It is designed to meet the forecast demand up to the year 2040. Recognizing that the aviation industry is a dynamic industry in terms of technological change, new aircraft types and sizes, and demand for new services, very close attention has been paid and will continue to be paid to designing an airport capable of adapting to future circumstances.

Driving offences on expressways

7. MR SIMON IP asked: With the introduction of the Road Traffic (Expressways) 7. MR SIMON IP asked: With the introduction of the Road Traffic (Expressways) Regulations on 1 October 1991 will Government inform this Council:

(a) what reso (a) what reso what resources have been allocated and what measures are being taken by the urces have been allocated and what measures are being taken by the police to monitor adherence to the new driving rules on the Tolo Highway;

(b) what has been the incidence of users of the Tolo Highway, especially heavy (b) what has been the incidence of users of the Tolo Highway, especially heavy goods vehicles drivers, breaching the new rules; and

(c) what steps are being taken to ensure the speed limit along the Tolo Highway (c) what steps are being taken to ensure the speed limit along the Tolo Highway is not exceeded and whether such steps can be further improved?

SECRETARY FOR TRANSPORT: Mr Deputy President,

(a) In recent years the police have been (a) In recent years the police have been In recent years the police have been provided with 35 additional posts and provided with 35 additional posts and 10 extra vehicles to maintain traffic discipline on those new trunk roads in the New Territories which are now known as expressways. This has allowed increased patrolling of these roads to enforce the new legislation effectively. In addition,

special police operations are mounted on the Tolo Highway and other New Territories expressways from time to time, targeted at specific traffic offences including those committed under the expressways legislation.

(b) For a one (b) For a one For a one-week period following the enactment of the new legislation, the -week period following the enactment of the new legislation, the police only warned and advised motorists who were in breach of the regulations. Thereafter, offenders have been prosecuted. Separate statistics are not maintained by the police for offences committed on the Tolo Highway, or for offences by heavy goods vehicle drivers against the new regulations. However, in the New Territories as a whole, there have so far been 520 prosecutions for expressway offences, including 412 cases of unauthorized use of the offside lane and 44 cases of overtaking in the nearside lane.

(c) The police use radar and other speed detection equipment to identify vehi (c) The police use radar and other speed detection equipment to identify vehicles exceeding the speed limits on the Tolo Highway. In the past three months, the police have acted on 10 567 speeding offences committed on New Territories expressways. The current level of law enforcement on the Tolo Highway in respect of this offence is considered adequate by the police.

Fresh water flushing

8. MR GILBERT LEUNG asked: Will the Governme 8. MR GILBERT LEUNG asked: Will the Governme MR GILBERT LEUNG asked: Will the Government inform this Council: nt inform this Council:

(a) of the areas in the territory which use fresh water for flushing purposes (a) of the areas in the territory which use fresh water for flushing purposes and the reasons for it;

(b) of the volume of fresh water used for flushing, separately as a percentage (b) of the volume of fresh water used for flushing, separately as a percentage of the total consumption of flushing water and as a percentage of the total consumption of potable water; and

(c) whether consideration will be given to reducing the use of fresh water for (c) whether consideration will be given to reducing the use of fresh water for such purposes so as to save as much potable water as possible?

SECRETARY FOR WORKS: Mr Deputy President,

(a) The areas using fresh water for flushing purposes and the reasons for this are (a) The areas using fresh water for flushing purposes and the reasons for this are

given below:

Wan Chai

About 20% of the flushing water consumption in this area is salt water. The other 80% is fresh water, to be replaced with salt water gradually upon extension of the salt water reticulation network. Constraints in opening up roads for mainlaying, and in financial resources, limit the speed of converting fresh water to sea water.

Shau Kei Wan

The salt water supply system being implemented is expected to be completed in early 1994.

Ap Lei Chau

A new salt water pumping station has just been commissioned. Conversion from fresh water to salt water for flushing will soon commence, and it is expected that within a few months about 50% of the flushing water in this area will be sea water. The remaining 50% will be converted gradually upon extension of the distribution system.

Pok Fu Lam

A salt water supply scheme is being planned. Subject to availability of funds, the scheme will be implemented in a few years' time.

Sha Tin and Ma On Shan New Town

The proposal to use treated sewage effluent for flushing was dropped in 1988, and the proposed salt water system is presently in the design stage. The scheduled completion date of the salt water system is by the end of 1994.

Tseung Kwan O New Town

The salt water pumping station will be built in conjunction with reclamation work in Area 86. The programmed completion date for this salt water system is presently mid-1995.

Tai Po New Town

The proposal to use treated sewage effluent for flushing was dropped in 1988, and planning of the salt water system is nearing completion. The scheduled completion date of the salt water system is by the end of 1995.

Yuen Long, Sheung Shui and Fanling

It is both impractical and uneconomical to provide salt water for flushing to these areas on account of their remoteness from the sea.

Sai Kung and Outlying Islands

The flushing demands of these areas are presently so small that it is uneconomical to provide salt water to these areas for flushing.

(b) The amount of fresh water used for flushing is currently 33.3% of the total (b) The amount of fresh water used for flushing is currently 33.3% of the total consumption of flushing water. The amount of fresh water used for flushing is 6.9% of the total consumption of potable water.

(c) When the proposed salt (c) When the proposed salt When the proposed salt water systems are progressively completed, by 1995, the water systems are progressively completed, by 1995, the percentage of territory's population using salt water for flushing will be about 90%. In the present circumstances, it is impractical and uneconomical to provide salt water for flushing for the remaining 10% of the population. Nevertheless, the situation will be closely monitored and reviews made whenever there are new circumstances.

Expansion of class size

9. MR NG MING-YUM asked: With regard to the recent announcement of the Education 9. MR NG MING-YUM asked: With regard to the recent announcement of the Education Department about its plan to expand the size of Primary I, Form I and Form IV classes with effect from the next school year, will the Government inform this Council:

(a) whether the appropriate education bodies, parents' organizations and the (a) whether the appropriate education bodies, parents' organizations and the general public were consulted prior to the formulation of this plan if so, what was the outcome of these consultations; if not, what are the reasons for not conducting such exercises;

(b) what are the policy objectives, justifications and rationale of this plan; (b) what are the policy objectives, justifications and rationale of this plan;

(c) what (c) what savings this plan is expected to have in the first three consecutive savings this plan is expected to have in the first three consecutive years of its implementation; whether the financial resources thus saved are to be deployed for use in specified areas of education services; if so, what are the areas of these services; if not, on what policy areas such savings will be spent; and

(d) whether any Government action has been taken to assess the possible (d) whether any Government action has been taken to assess the possible implications of this plan on the students, parents and teachers concerned; if so, what are the findings of the assessment; if not, what are the reasons for not making such an assessment?

SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, at this stage, the Government is consulting educational bodies on a plan to abolish the repeater allowance in the places allocation systems for schools, the effect of which would be to increase class size marginally. The final details of the measure itself and a decision on its introduction await the outcome of this consultation.

The answers to the specific questions raised by Mr NG are as follows: The answers to the specific questions raised by Mr NG are as follows:

(a) The Government has consulted schools councils, teachers unions, the OMELCO (a) The Government has consulted schools councils, teachers unions, the OMELCO Education Panel and the Board of Education on the plan. It is not seen as a positive step but there is also general acceptance that it is a realistic and probably unavoidable measure in the circumstances. Following initial discussions with interested parties, the original plan has been modified to cater for the special needs of pupils most in need of teacher support. These discussions are still on-going.

Parent associations and the general public have not been consulted specifically. This is partly because the proposed changes involve technical adjustments to the places allocation systems which may or may not affect them individually. The other reason is that schools and other representative bodies consulted by the Government already provide ample channels for parental views on the general thrust of the proposal to be aired.

(b) The justification for introducing the measure under consideration is (b) The justification for introducing the measure under consideration is budgetary. The fundamental principle governing the planning and control of public expenditure is that, over a period of time, the growth rate should be no greater than

the trend growth rate of the economy. We are now facing a period of relatively low economic growth. This in turn has imposed constraints on the rate at which government spending can increase. Against this background, the Government as a whole must produce savings of 2.6% of projected recurrent expenditure by 1994-95. In line with this government directive which applies across the board, the Education Department has been asked to produce savings of about $400 million over three years from 1992-93 to 1994-95.

The rationale of the plan is to increase the number of pupils allocated to a class from 38 to 40, thereby reducing the number of classes (and the costs involved) to be provided through the publicly funded school system. Schools wishing to accommodate repeaters will have to exercise the option of increasing class size up to 42. This plan has been proposed after exhaustive examination of alternatives and is considered the only realistic and least disruptive way to produce the necessary savings, while minimizing any adverse effects on the quality of education provided.

Although the repeater allowance of two pupils per class has been available Although the repeater allowance of two pupils per class has been available to schools for years, it has never been taken up in full. In 1991, only 29%, 49% and 54% of the allowance was taken up by repeaters at Primary 1, Secondary 1 and Secondary 4 respectively. Moreover, the average class size in schools has been

declining over the past decade and now averages 34.68 for primary schools and 36.7 for secondary schools. Of all classes in primary and secondary schools receiving students under the places allocation systems now, a significant proportion has less than 40 pupils(1).

Note (1)

Class Distribution

Primary 1 Secondary 1 Primary 1 Secondary 1 Secondary 1 Secondary 4 Secondary 4

Class Size

38 or less 40%) 38 or less 40%) 20%) 28%)

) 53% ) 33% ) 53% ) 33% ) 42% ) 42%

39 13%) 39 13%) 13%) 14%)

40 23% 30% 24%

Over 40 24% Over 40 24% 37% 34%

Against this background, the Government considers that it would be acceptable, as

a short-term measure, to dispense with the present repeater allowance. In addition to achieving the necessary savings, this measure would make it possible to reduce the number of floating classes in over-crowded secondary schools as well as free classrooms and teachers to meet the current policy target of providing Secondary 6 places for one-third of the relevant Secondary 4 enrolment.

(c) The estimate (c) The estimate The estimated savings arising from the plan are: d savings arising from the plan are:

1992-93 1993-94 1992-93 1993-94 1993-94 1994-95 1994-95 1994-95 Total

($ million) 51.4 ($ million) 51.4 141.0 214.0 406.4

These savings, as stated in (b) above, are aimed at scaling back the projected growth in recurrent expenditure and would not be available for redeployment within the education area or to other areas. In this connection, they are separate and different from earlier baseline savings which have already been redeployed on

improving education.

(d) An assessment of the po (d) An assessment of the po An assessment of the possible implications of this measure has been made. ssible implications of this measure has been made. There would be no implications for parents or classes with a high proportion of Band 5 pupils. There would be little effect on classes with an enrolment of 38 or less (see note (1)) and some effect on the other classes. In the latter case, the undesirable effect of a larger class of 42 would be marginal and can be expected to be reduced over time.

Individual teachers' workload may or may not increase depending on the size of classes taught. Any increase will, however, be slight. The Education Department estimates that about 860 teachers would be affected by the proposed reduction in the number of classes, but no redundancies will occur because they can be absorbed by the overall demand for teachers. The ranking of primary school heads will not be affected as a direct result of this measure.

Sea passages for civil servants

10. MR NG MING-YUM asked: Will the Government inform this Council: 10. MR NG MING-YUM asked: Will the Government inform this Council:

(a) of the criteria for granting sea passages to civil s (a) of the criteria for granting sea passages to civil s of the criteria for granting sea passages to civil servants and their family ervants and their family members;

(b) of the current minimum cost per passage; (b) of the current minimum cost per passage;

(c) of the financial involvement; the number of civil servants and the number (c) of the financial involvement; the number of civil servants and the number of their family members benefited under the scheme in the past five years;

(d) of the total n (d) of the total n of the total number of eligible civil servants who can claim sea passages umber of eligible civil servants who can claim sea passages before 30 June 1997; and the estimated expenditure involved;

(e) whether it has any plans to discontinue the grant of sea passages; if so, (e) whether it has any plans to discontinue the grant of sea passages; if so, what are the details and progress made; and

(f) wheth (f) whether this Council would be consulted prior to the implementation of these er this Council would be consulted prior to the implementation of these plans?

SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President,

(a) Overseas officers appointed before 1 December 1984 are eligible for a sea (a) Overseas officers appointed before 1 December 1984 are eligible for a sea passage to their country of origin when they leave the service in accordance with the following criteria:

(i) pensionable officers who retire at the age of 50 or over; and (i) pensionable officers who retire at the age of 50 or over; and

(ii) agreement officers aged 50 or over on satisfactory completion of not less (ii) agreement officers aged 50 or over on satisfactory completion of not less than 15 years of public service in Hong Kong or another dependent territory.

An officer's spouse and dependent children under the age of 19 are also eligible for a sea passage, subject to a maximum of five full-fare passages. At present, sea passages are only available between Hong Kong and the United Kingdom on the Canberra, which sails from Hong Kong once a year.

(b) The cost of a sea passage varies according to the route which may vary from (b) The cost of a sea passage varies according to the route which may vary from year to year and the grade of passage to which the officer is entitled. In 1992, the cost of a sea passage on the Canberra ranges from $39,200 to $68,502.

(c) Over the last five years, sea passages were granted to 98 civil servants and (c) Over the last five years, sea passages were granted to 98 civil servants and 92 dependents. The total expenditure, based on prevailing prices at the time, was $9.79 million.

(d) There are 1 63 (d) There are 1 63 There are 1 639 overseas officers who were appointed before 1 9 overseas officers who were appointed before 1 December 1984, of whom about 780 would have reached the age of 50 and completed 15 or more years of service by 30 June 1997. We estimate that at current prices, the cost up to 30 June 1997 would be about $29.5 million. The increase compared with the last five years is largely due to the increase in the number of eligible officers.

(e) There are plans to withdraw the provision of sea passages which is no longer (e) There are plans to withdraw the provision of sea passages which is no longer justified in present-day circumstances. We propose to grant an ex-gratia payment to eligible officers who could otherwise have enjoyed a sea passage at the time they leave the service. The total cost of ex-gratia payment will not exceed the cost of maintaining the present scheme. We have consulted the staff associations concerned, and will be seeking the advice of the Standing Commission on Civil Service Salaries and Conditions of Service and the other advisory committees on civil service pay and conditions of service. We hope to reach a decision within the next two months.

(f) The Council will be approached for funds to finance a scheme of ex-gratia (f) The Council will be approached for funds to finance a scheme of ex-gratia payment which will replace sea passages.

Visa for former Soviet Bloc citizens

11. MR MARTIN BARROW asked: Will the Government inform this Coun 11. MR MARTIN BARROW asked: Will the Government inform this Coun MR MARTIN BARROW asked: Will the Government inform this Council whether it has cil whether it has completed its consideration of visa procedures for citizens of the former Soviet Bloc and what steps it plans to take?

SECRETARY FOR SECURITY: Mr Deputy President, we have completed a review of our visa requirements for nationals of the former Soviet Bloc countries. Changes to simplify the procedures and reduce processing time will be introduced from 1 February.

We concluded last year a visa waiver agreement with Poland. Polish nationals may now enter Hong Kong for business or tourist visits of up to seven days without visas; Hong Kong residents with BDTC or BN(O) passports may similarly visit Poland without visas.

We are discussing reciprocal visa waiver arrangements with Czechoslovakia and Hungary; pending conclusion of such agreements, visas to visit Hong Kong for business or tourist visits can be issued to nationals of Czechoslovakia and Hungary within three working days.

Nationals of Afghanistan, Albania, Bulgaria, Cuba and Mongolia may also obtain both business and tourist visas for Hong Kong within three working days. Nationals of Cambodia, Laos, Romania, the former Soviet Union (including the Baltic states) and Vietnam can also come to Hong Kong for both business and tourist visits; the visa issuing time will in future be seven working days.

We have maintained our previous requirements for nationals of North Korea. Visas will be issued only for business visits; the time taken to issue such visas is normally six weeks.

Protection for foreign workers

12. MR LAU CHI-SHEK 12. MR LAU CHI-SHEK MR LAU CHI-SHEK asked: Will the Government inform this Council: asked: Will the Government inform this Council:

(a) whether there is any policy or legislation to protect the rights of foreign (a) whether there is any policy or legislation to protect the rights of foreign workers, and if so, which government department is responsible for ensuring compliance; and

(b) what are the channels throu (b) what are the channels throu what are the channels through which foreign workers can seek verification gh which foreign workers can seek verification when suspecting a discrepancy between the contract given to them by the employer and the one submitted to the Immigration Department for application purposes; whether the Immigration Department has prosecuted any employers for supplying such false information in the past two years, and if so, how many prosecutions have been

instituted?

SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, foreign workers are entitled to the same protection as local workers under the laws of Hong Kong. Both the Labour Department and the Immigration Department are responsible to ensure compliance with the provisions of the relevant labour or immigration legislation as well as specific conditions in the employment contract entered between the foreign

worker and the employer. The Labour Department offers its conciliation services when there is a dispute on conditions of employment between the foreign worker and his employer. The worker will be assisted to pursue his claim through the appropriate legal channels if both parties fail to reach settlement. Suspected breaches of the conditions set by the Immigration Department and suspected cases of provision of false information by the employing firm in its application to employ foreign workers are either taken up by the Immigration Department direct or through referral by the Labour Department.

The policy for protection of the rights of foreign workers is under constant review and adjustments are made to existing provisions and administrative measures as necessary. For example, an amendment Bill for increasing the maximum penalties for unlawful deduction and underpayment of wages from $10,000 and $20,000 to $100,000 and $200,000 respectively, plus a custodial sentence of one year, is expected to be introduced into this Council shortly. Additional resources are deployed for

enforcement of the conditions of the importation of labour schemes.

As regards the second part of Mr LAU's question, workers are advised to approach either the Labour Department or the Immigration Department should they wish to seek verification in case of labour disputes or suspected abuse. The Labour Relations Division of the Labour Department will provide assistance as required. As far as foreign domestic workers are concerned, 46 employers have been investigated for

furnishing false information in the past two years and 19 were prosecuted. In addition, the Immigration Department has prosecuted one construction company for furnishing false information in connection with the importation of workers from outside Hong Kong. The defendant was however acquitted due to insufficient evidence. Several cases are currently under investigation and additional measures have been taken with a view to securing successful prosecution.

Provision of one-person and two-person flats

13. MR HUI YIN-FAT asked: In view of the Housing Department's current practice to 13. MR HUI YIN-FAT asked: In view of the Housing Department's current practice to increase the supply of one-person and two-person flats by converting existing flats in public housing estates, will the Government inform this Council of:

(a) the number of "converted flats" that will be completed in 1992- (a) the number of "converted flats" that will be completed in 1992- 95;

(b) the number of such flats now available in each public housing estate and the (b) the number of such flats now available in each public housing estate and the date of their completion; and

(c) the vac (c) the vac the vacancy rate of these flats and the reasons, and whether the ancy rate of these flats and the reasons, and whether the Administration is satisfied with the situation?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the current conversion programme is a temporary measure to produce additional small flats to meet urgent operational requirements such as redevelopment and clearance. Under this programme, a total of 1 142 small flats will be produced between 1992 and 1995. All of these will provide self-contained facilities.

A total of 7 213 converted flats with shared facilities had been produced in the A total of 7 213 converted flats with shared facilities had been produced in the past on an ad hoc basis. Of which, 2 907 flats were produced in the last 12 months and a breakdown showing their location, number and date of completion is at the annex. In the short time available, it has not been possible to go back further to extrapolate information on those flats converted earlier.

Assuming that flats unlet after three months of handover are regarded as vacant, the average vacancy rate in respect of the converted flats is 25%. The main reason for the vacancy is that many prospective tenants are reluctant to accept accommodation without self-contained facilities. In addition, they have their locational

preference. The first concern is being met as all the new conversions will have separate toilets and cooking facilities. Locational preference has been accommodated as far as possible but it has not been possible to meet all the requests due to timing and resource constraints. For the longer term, the Housing Authority has recently approved a number of measures to address the overall supply and demand of small flats on a district basis. There will thus be no need for any further conversions beyond what is already included in the current programme.

Annex

Distribution of one-person flats by location and completion date under conversion programme

Date of

District Estate District Estate Number completion completion

Hong Kong West Wah Kwai Hong Kong West Wah Kwai Wah Kwai 250 9/91 Ap Lei Chau 18 Ap Lei Chau 18 6/91

Lei Tung 4 Lei Tung 4 7/91

Kowloon East Tsui Ping Kowloon East Tsui Ping Tsui Ping 54 8/91 Lok Wah South 82 Lok Wah South 82 8/91

Kowloon Central Tung Tau Kowloon Central Tung Tau Tung Tau 58 10/91 Lower Wong Tai Sin 50 Lower Wong Tai Sin 50 10/91

Chuk Yuen South 30 Chuk Yuen South 30 1/91

Kowloon West Chak On Kowloon West Chak On Chak On 68 9/91

Lai Kok 12 Lai Kok 12 2/91

Shep Kip Mei 10 Shep Kip Mei 10 7/91

Tseung Kwan O King Lam Tseung Kwan O King Lam King Lam 225 5/91

Tsuen Wan Cheung Hang Tsuen Wan Cheung Hang Cheung Hang 510 8/91

Tsing Yi 21 Tsing Yi 21 8/91

Cheung Hong 248 Cheung Hong 248 8/91

Sha Tin Kwong Yuen Sha Tin Kwong Yuen Kwong Yuen 180 10/91

Lung Hang 34 Lung Hang 34 5/91

Mei Lam 104 Mei Lam 104 7/91

Sun Tin Wai 34 Sun Tin Wai 34 7/91

Tai Po Tai Wo Tai Po Tai Wo 255 10/91

Sheung Shui Wah Ming Sheung Shui Wah Ming Wah Ming 660 2/91

Total 2 907 Total 2 907

Discretion exercised by the Attorney General

14. MR JAMES TO asked: Will the Government infor 14. MR JAMES TO asked: Will the Government infor MR JAMES TO asked: Will the Government inform this Council, during the period m this Council, during the period of tenure of office of the recent three Attorney Generals (including the incumbent):

(a) how many prima facie cases have been referred by the law enforcement agen (a) how many prima facie cases have been referred by the law enforcement agencies to the Attorney General to consider whether charges should be laid against the suspect; n how many of these cases did the Attorney General exercise his discretion not the charge the suspect; what is the nature of these cases;

(b) how many criminal cases committed or transferred to the High Court have been (b) how many criminal cases committed or transferred to the High Court have been discontinued at the instruction of the Attorney General; what is the nature of these cases;

(c) what were the Attorney General's reasons for deciding either not to lay (c) what were the Attorney General's reasons for deciding either not to lay charges or to discontinue proceedings in these cases; and

(d) when the Attorney Gene (d) when the Attorney Gene when the Attorney General exercised his discretion, who had he consulted and ral exercised his discretion, who had he consulted and what procedures had been followed in exercising this discretion?

ATTORNEY GENERAL:

(a) Statistics are not kept on such matters and the information could only be obt (a) Statistics are not kept on such matters and the information could only be obtained at disproportionate cost.

(b) Criminal cases in the High Court can be discontinued by or on the instruction (b) Criminal cases in the High Court can be discontinued by or on the instruction of the Attorney General in two ways. These are the offering of no evidence so that an acquittal will follow, and the entry of a nolle prosequi. No statistics are kept of the former. Statistics for the entry of a nolle prosequi have been kept since 1986. These show that in the period from 1 January 1986 to date, a nolle prosequi was entered in 26 cases in the High Court as follows:

Dangerous drug charges 10 Dangerous drug charges 10

Murder 1 Murder 1

Murder/wounding with intent Murder/wounding with intent er/wounding with intent 1

Murder/rape 1 Murder/rape 1

Attempted murder/robbery/rape 1 Attempted murder/robbery/rape 1

Rape 1

Incest/indecent assault 1 Incest/indecent assault 1

Robbery 2 Robbery 2

Robbery/handling stolen goods 1 Robbery/handling stolen goods 1

Conspiracy to rob 1 Conspiracy to rob 1

Conspiracy to rob/possession of firearm 1 Conspiracy to rob/possession of firearm 1

Attempted robbery/possession of firearm Attempted robbery/possession of firearm 1

Wounding with intent 1 Wounding with intent 1

Conspiracy to kidnap 1 Conspiracy to kidnap 1

Obtaining property by deception/false 1 Obtaining property by deception/false 1

imprisonment

Possession of forged documents 1 Possession of forged documents 1

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26

==

The yearly breakdown of the figures is as follows:

1986 14 1986 14

1987 4

1988 3

1989 1

1990 1

1991 3

1992 to date 0 1992 to date 0

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26

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(c) The factors that are taken into account when deciding whether or not to prose (c) The factors that are taken into account when deciding whether or not to prosecute in a particular case were given by my predecessor in this Council on 25 March 1987 (Hansard 1987 pages 1270-1271). They still apply today.

The circumstances in which a nolle prosequi may be entered were described by me in this Council on 18 January 1989 (Hansard 1989, pages 848-849).

(d) In deciding whether or not to commence proceedings or to discontinue particular (d) In deciding whether or not to commence proceedings or to discontinue particular proceedings that have already been commenced, the Attorney General, or his prosecuting counsel where relevant, may consult the appropriate authorities to seek their views but the decision remains that of the Attorney General. Until 1989, a

nolle prosequi could be signed by the Crown Prosecutor or one of his deputies under delegated authority, but the current practice is for the Attorney General personally to decide whether or not to enter a nolle prosequi.

Resisting arrest and assaulting police officers

15. REV FU 15. REV FUNG CHI-WOOD asked: With regard to allegations against members of the pu NG CHI-WOOD asked: With regard to allegations against members of the public for resisting arrest or assaulting police officers, will the Government inform this Council:

(a) how many prosecutions were preferred by the police against members of the (a) how many prosecutions were preferred by the police against members of the public for resisting arrest or assaulting police officers during the past three years; how many prosecutions eventually led to conviction; what penalties were imposed in general upon conviction; and

(b) under what circumstances members of the public will be cha (b) under what circumstances members of the public will be cha under what circumstances members of the public will be charged by the police rged by the police for such offences?

SECRETARY FOR SECURITY: Mr Deputy President, during the past three years, the police have instituted prosecutions of 3 413 cases for resisting arrest and 2 602 cases for assaults on police officers. The following is the annual breakdown:

1989 1990 1989 1990 1991

Resisting arrest 1 030 Resisting arrest 1 030 1 178 1 205

Assault on police 807 Assault on police 807 842 953

Details of conviction, acquittal and penalties for these offences are available only in cases where one of these offences is the principal charge, not in cases where it is subsidiary to a charge for a more serious offence. In such cases, details of conviction, acquittal and sentence have been as follows:

Resisting Arrest

1989 1990 1989 1990 1991 (Jan-June) 1991 (Jan-June)

Acquitted 97 Acquitted 97 117 53

Imprisonment 62 Imprisonment 62 84 58

Training Centre/Detention Centre 2 Training Centre/Detention Centre 2 4 3 Drug Addiction Treatment Centre 8 Drug Addiction Treatment Centre 8 10 8 Probation 3 Probation 3 10 5

Suspended Imprisonment 8 Suspended Imprisonment 8 28 13

Bound Over/Conditional Discharge 12 Bound Over/Conditional Discharge 12 28 14 Fine 89 Fine 89 121 53

Cautioned/Absolute Discharge 4 Cautioned/Absolute Discharge 4 5 3 Others 4 Others 4 6 7

Total 289 Total 289 413 217

Assault on Police Officers

1989 1990 1989 1990 1991 (Jan-June) 1991 (Jan-June)

Acquitted 186 Acquitted 186 292 105

Imprisonment 80 Imprisonment 80 99 42

Training Centre/Detention Centre 8 Training Centre/Detention Centre 8 11 - Drug Addiction Treatment Centre 38 Drug Addiction Treatment Centre 38 21 9 Probation 21 Probation 21 14 14

Suspended Imprisonment 8 Suspended Imprisonment 8 4 2

Bound Over/Conditional Discharge 49 Bound Over/Conditional Discharge 49 32 33

Fine 198 Fine 198 216 73

Cautioned/Absolute Discharge 4 Cautioned/Absolute Discharge 4 5 1

Others 5 Others 5 7 7

Total 597 Total 597 701 286

The circumstances in which members of the public will be charged by the police for the offences of resisting arrest or assaulting the police vary from case to case. The essential element in the offence of resisting arrest is a forcible attempt to avoid arrest; in the offence of assaulting a police officer it is the intentional offer of violence to a police officer.

Application for sponsorship of schools

16. MR CHEUNG MAN-KWONG asked: With regard to the sponsoring bodies' applications 16. MR CHEUNG MAN-KWONG asked: With regard to the sponsoring bodies' applications to run primary and secondary schools, will the Government inform this Council of the following:

(a) what criteria are being adopted by the Administration (a) what criteria are being adopted by the Administration what criteria are being adopted by the Administration in approving such in approving such applications;

(b) the number of applications approved in the past five years with a breakdown (b) the number of applications approved in the past five years with a breakdown of their respective years of approval, and the years in which these applications ere made, and

(c) the number of primary and second schools (c) the number of primary and second schools the number of primary and second schools now being run by each sponsoring now being run by each sponsoring body?

SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the answers to Mr CHEUNG's questions are as follows:

(a) The criteria for approving sponsoring bodies' applications to run primary (a) The criteria for approving sponsoring bodies' applications to run primary and secondary schools are that the applicant must be properly incorporated as a non-profit-making body and be exempted from taxes under section 88 of the Inland Revenue Ordinance. Its Memorandum and Articles of Association should include standard clauses and articles specified by the Director of Education. When these basic requirements are met and new schools are available for allocation to sponsors, selection is made on the merits of individual applicants, having regard to each organization's experience in education, financial condition (that is capability to contribute towards the funds required to set up the school, including furniture and equipment) and the number and locality of schools it is already operating. Other factors are also taken into account, such as the religious affiliation of the applicant, the need to re-provision its existing schools, as well as any special linkage between the organization and the district concerned.

(b) A total of 39 schools have been allocated to 28 sponors in the past five y (b) A total of 39 schools have been allocated to 28 sponors in the past five years. Of these applications 13 were approved in one year, 14 in less than five, eight in less than ten and four took 10 or more years. Details are shown in Appendix A.

(c) As at the 1991-92 school year, there are 287 sponsoring bodies running a t (c) As at the 1991-92 school year, there are 287 sponsoring bodies running a total of 449 secondary and 553 primary schools. A list of these sponsoring bodies with the numbers of schools run by each is at Appendix B.

Appendix A

Schools allocated and accepted

by sponsors since 1 January 1987

A. Secondary Schools

Number of

Year of Year of Year of Year of Year of schools schools

Name of sponsors application Name of sponsors application application approval approval approval allocated allocated

1. Bishop of the Roman Catholic 1. Bishop of the Roman Catholic Bishop of the Roman Catholic 1986 1987 1

Church in Hong Kong, Inc.

2. Church Body of the Chinese 2. Church Body of the Chinese Church Body of the Chinese 1980 1988 1

Anglican Church in Hong Kong Anglican Church in Hong Kong

3. Education Foundation of the 3. Education Foundation of the Education Foundation of the 1986 1990 1 CUHK Alumni Association, The UHK Alumni Association, The

4. Hong Kong Taoist Association 4. Hong Kong Taoist Association Hong Kong Taoist Association 1981 1987 1 5. Law's Foundation Limited 5. Law's Foundation Limited Law's Foundation Limited 1988 1990 1

6. Lok Sin Tong Benevolent 6. Lok Sin Tong Benevolent Lok Sin Tong Benevolent 1989 1989 1 Society, Kowloon, The

7. Pok Oi Hospital 7. Pok Oi Hospital Pok Oi Hospital 1987 1989 1

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7

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B. Primary Schools

Number of

Year of Year of Year of Year of Year of schools schools

Name of sponsors application Name of sponsors application application approval approval approval allocated allocated

1. Bishop of the Roman Catholic 1. Bishop of the Roman Catholic Bishop of the Roman Catholic 1979 1988 4 Church in Hong Kong, Inc. 1984 Church in Hong Kong, Inc. 1984 1989

1987 1990 1987 1990

1988 1990 1988 1990

2. Chinese Artist Association of 2. Chinese Artist Association of Chinese Artist Association of 1989 1990 1 Hong Kong Prim Hong Kong Prim Hong Kong Primary School ary School

Limited

3. Chiu Yang Residents' 3. Chiu Yang Residents' Chiu Yang Residents' 1981 1991 1 Assoication of

Hong Kong Limited

4. Church Body of the Chinese 4. Church Body of the Chinese Church Body of the Chinese 1987 1987 2

Anglican Church in Hong Kong 1985 Anglican Church in Hong Kong 1985 1988

5. Church of Christ in China, 5. Church of Christ in China, Church of Christ in China, 1986 1988 3 Hong Kong Council 1986 Hong Kong Council 1986 1988

1991 1991

6. Five Districts Business 6. Five Districts Business Five Districts Business 1986 1990 1 Welfare Association

7. Fong Shu Fook Tong 7. Fong Shu Fook Tong Fong Shu Fook Tong 1989 1989 1 Foundation

8. Hong Kong and Macau 8. Hong Kong and Macau Hong Kong and Macau 1989 1989 1 Lutheran Church Limited

9. Hong Kong Buddhist 9. Hong Kong Buddhist Hong Kong Buddhist 1983 1988 1 Association, The

10. Hong Kong Eng Clan 10. Hong Kong Eng Clan Hong Kong Eng Clansmen 1971 1988 1 Association School Limited

11. Lutheran Church - Hong 11. Lutheran Church - Hong Lutheran Church - Hong 1989 1989 1 Kong Synod Limited

12. Methodist Church, 12. Methodist Church, Methodist Church, 1982 1987 2 Hong Kong, The 1990) Hong Kong, The 1990) 1991

1991)

13. Po Leung Kuk 13. Po Leung Kuk Po Leung Kuk 1985 1987 2 1989 1990 1989 1990

14. Queen Elizabeth School Old 14. Queen Elizabeth School Old Queen Elizabeth School Old 1987 1991 1 Students' Association

Primary School Limited

15. Sik Sik Yuen 15. Sik Sik Yuen Sik Sik Yuen 1989 1991 1

16. Sir Robert Black College of 16. Sir Robert Black College of Sir Robert Black College of 1978 1988 1

Education Past Students'

Association Limited

17. Stewards' Company 17. Stewards' Company Stewards' Company 1977 1988 2

(Hong Kong) Limited 1989 (Hong Kong) Limited 1989 1990

18. Tai 18. Tai Pak Memorial School Pak Memorial School Pak Memorial School 1985 1989 1 Company

19. Tung Wah Group of Hospitals 19. Tung Wah Group of Hospitals Tung Wah Group of Hospitals 1983 1987 3 1989

1991

20. Yan Chai Hospital 20. Yan Chai Hospital Yan Chai Hospital 1987 1987 1

21. Yuen Long Public Middle 21. Yuen Long Public Middle Yuen Long Public Middle 1988 1988 1 School Alumni Association

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32

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Total A + B: 39 Total A + B: 39

Appendix B

List of sponsoring bodies operating

secondary and primary schools

(1991-92)

No. of No. of No. of No. of

Serial Secondary Serial Secondary Secondary Primary Primary

No. Name of Sponsor No. Name of Sponsor Name of Sponsor Schools Schools Schools Schools Schools

1. Aberdeen Baptist Church 1. Aberdeen Baptist Church Aberdeen Baptist Church 1 0

2. All Saints' Church 2. All Saints' Church All Saints' Church 2 1

3. Aplichau Kaifong Welfare 3. Aplichau Kaifong Welfare Aplichau Kaifong Welfare Association Association Association 0 1 4. Assemblies of God Mission (H.K. and Macao District) 4. Assemblies of God Mission (H.K. and Macao District) Assemblies of God Mission (H.K. and Macao District) 0 1

5. Association of the Directors and Fomer Directors of 5. Association of the Directors and Fomer Directors of Association of the Directors and Fomer Directors of 1 2 Pok Oi Hospital Limited

6. Baptist Convention of Hong Kong 6. Baptist Convention of Hong Kong Baptist Convention of Hong Kong 3 4

7. Bethel Mission of China, Inc. 7. Bethel Mission of China, Inc. Bethel Mission of China, Inc. 1 1

8. Bishop of th 8. Bishop of th Bishop of the Roman Catholic Church in Hong Kong, Incorporation e Roman Catholic Church in Hong Kong, Incorporation e Roman Catholic Church in Hong Kong, Incorporation 30 58 9. Board of Trustees of True Light Middle School 9. Board of Trustees of True Light Middle School Board of Trustees of True Light Middle School 1 0 10. Buddhist To Chi Fat She Limited 10. Buddhist To Chi Fat She Limited Buddhist To Chi Fat She Limited 1 1

11. Building Contractors' Association 11. Building Contractors' Association Building Contractors' Association 0 1

12. Canadian International School Foundation Limited 12. Canadian International School Foundation Limited Canadian International School Foundation Limited 0 1 13. Canossian Mission Canossian Mission Canossian Mission 1 1

14. Caritas - Hong Kong 14. Caritas - Hong Kong Caritas - Hong Kong 13 3

15. Castle Peak Buddhist School Limited 15. Castle Peak Buddhist School Limited Castle Peak Buddhist School Limited 0 1

16. Catholic Foreign Mission Society of America Marynoll 16. Catholic Foreign Mission Society of America Marynoll Catholic Foreign Mission Society of America Marynoll 3 2 17. Catholic Mission, Catholic Diocese of Hong Kong 17. Catholic Mission, Catholic Diocese of Hong Kong Catholic Mission, Catholic Diocese of Hong Kong 1 0 18. Cham Shan Monastery Limited 18. Cham Shan Monastery Limited Cham Shan Monastery Limited 1 0

19. Chan's Educational Organization 19. Chan's Educational Organization Chan's Educational Organization 1 0

20. Cheng Chek Chee Secondary School of Sai Kung and Hang Hou 20. Cheng Chek Chee Secondary School of Sai Kung and Hang Hou Cheng Chek Chee Secondary School of Sai Kung and Hang Hou 1 0 21. Cheung Chau Church 21. Cheung Chau Church Cheung Chau Church 0 1

22. Chi Hong Ching Yuen Limited 22. Chi Hong Ching Yuen Limited Chi Hong Ching Yuen Limited 0 1

23. Chi Kit School (USD Employees Association) 23. Chi Kit School (USD Employees Association) Chi Kit School (USD Employees Association) 0 1

24. Chi Lin Nunnery 24. Chi Lin Nunnery Chi Lin Nunnery 0 1

25. China Free Methodist Mission hina Free Methodist Mission hina Free Methodist Mission 0 1

26. China Holiness Church 26. China Holiness Church China Holiness Church 1 0

27. Chinese Artists Association of Hong Kong Primary School Limited 27. Chinese Artists Association of Hong Kong Primary School Limited Chinese Artists Association of Hong Kong Primary School Limited 0 2 28. Chinese Christian Church of Amoy, Kowloon, Hong Kong 28. Chinese Christian Church of Amoy, Kowloon, Hong Kong Chinese Christian Church of Amoy, Kowloon, Hong Kong 1 0 29. Chinese International School Foundation Limited 29. Chinese International School Foundation Limited Chinese International School Foundation Limited 1 1 30. Chinese Manufacturers' Association 30. Chinese Manufacturers' Association Chinese Manufacturers' Association 2 0

31. Chinese Muslim Cultural and Fraternal Association 31. Chinese Muslim Cultural and Fraternal Association Chinese Muslim Cultural and Fraternal Association 1 1 32. Chinese Rhenish Church Hong Kong Synod 32. Chinese Rhenish Church Hong Kong Synod Chinese Rhenish Church Hong Kong Synod 2 3

33. Chinese Sisters of the Immaculate Conception 33. Chinese Sisters of the Immaculate Conception Chinese Sisters of the Immaculate Conception 1 2 34. Chinese Young Men's Christian Association 34. Chinese Young Men's Christian Association Chinese Young Men's Christian Association 2 0

35. Ching Chung Taoist Association of Hong Kong Limited 35. Ching Chung Taoist Association of Hong Kong Limited Ching Chung Taoist Association of Hong Kong Limited 0 1 36. Chiu Chow Association Building (Property Holding) Limited 36. Chiu Chow Association Building (Property Holding) Limited Chiu Chow Association Building (Property Holding) Limited 1 0 37. Chiu Chow Residents' Public Association 37. Chiu Chow Residents' Public Association Chiu Chow Residents' Public Association 3 0

38. Chow Clansmen Association 38. Chow Clansmen Association Chow Clansmen Association 0 1

39. Christ Church 39. Christ Church Christ Church 1 1

40. Christian and M 40. Christian and M Christian and Missionary Alliance issionary Alliance issionary Alliance 0 1

41. Christian Education Carmel Association Limited 41. Christian Education Carmel Association Limited Christian Education Carmel Association Limited 1 0

42. Christian Missions in Many Lands (Stewards') Company, 42. Christian Missions in Many Lands (Stewards') Company, Christian Missions in Many Lands (Stewards') Company, 1 1 Hong Kong Limited

43. Christian National's Evangelism Commission (Hong Kong) Limited 43. Christian National's Evangelism Commission (Hong Kong) Limited Christian National's Evangelism Commission (Hong Kong) Limited 2 2 44. Christian Tin Yau 44. Christian Tin Yau Christian Tin Yau Association Limited Association Limited Association Limited 0 1

45. Chung Sang Educational Organization Limited 45. Chung Sang Educational Organization Limited Chung Sang Educational Organization Limited 2 0

46. Chung Sing Benevolent Society 46. Chung Sing Benevolent Society Chung Sing Benevolent Society 1 0

47. Church Body of the Chinese Anglican Church in Hong Kong 47. Church Body of the Chinese Anglican Church in Hong Kong Church Body of the Chinese Anglican Church in Hong Kong 25 31 48. Church of Christ in China Mongkok Church 48. Church of Christ in China Mongkok Church Church of Christ in China Mongkok Church 1 1

49. Church of Christ 49. Church of Christ Church of Christ in China Wanchai Church in China Wanchai Church in China Wanchai Church 0 1

50. Church of the Good Shepherd 50. Church of the Good Shepherd Church of the Good Shepherd 0 2

51. Cognitio College (1979) Limited 51. Cognitio College (1979) Limited Cognitio College (1979) Limited 2 0

52. Confucian Academy 52. Confucian Academy Confucian Academy 3 2

53. Confucius Hall of Hong Kong 53. Confucius Hall of Hong Kong Confucius Hall of Hong Kong 1 1

54. Congregation of the Immaculate Heart of Mary (Scheut M.C.) 54. Congregation of the Immaculate Heart of Mary (Scheut M.C.) Congregation of the Immaculate Heart of Mary (Scheut M.C.) 1 1 55. Congregation 55. Congregation Congregation of the Marist Brothers of the Schools of the Marist Brothers of the Schools of the Marist Brothers of the Schools 1 0 56. Conservatives Baptist Foreign Mission Society 56. Conservatives Baptist Foreign Mission Society Conservatives Baptist Foreign Mission Society 0 2 57. Council of St. Paul's Co-Educational College 57. Council of St. Paul's Co-Educational College Council of St. Paul's Co-Educational College 1 2 58. Daughters of Charity of the Canossian Institute, Incorporation 58. Daughters of Charity of the Canossian Institute, Incorporation Daughters of Charity of the Canossian Institute, Incorporation 6 10 59. Daughters of Mary Help of 59. Daughters of Mary Help of Daughters of Mary Help of Christians Hong Kong Incorporation Christians Hong Kong Incorporation Christians Hong Kong Incorporation 2 1 60. Diocesan Boy's School 60. Diocesan Boy's School Diocesan Boy's School 1 0

61. Diocesan Girls' School 61. Diocesan Girls' School Diocesan Girls' School 1 1

62. Diocesan Preparatory School Council 62. Diocesan Preparatory School Council Diocesan Preparatory School Council 0 1

63. Director in Hong Kong of St. Joseph's College 63. Director in Hong Kong of St. Joseph's College Director in Hong Kong of St. Joseph's College 5 3 64. Divine Word Missionaries 64. Divine Word Missionaries Divine Word Missionaries 1 0

65. Dominican Missi 65. Dominican Missi Dominican Missions 1 1

66. ED Foundation of the Frederation of the CUHK 66. ED Foundation of the Frederation of the CUHK ED Foundation of the Frederation of the CUHK 1 1 67. Emmanuel Church 67. Emmanuel Church Emmanuel Church 0 2

68. Encouragement of Character Training for the 68. Encouragement of Character Training for the Encouragement of Character Training for the 0 1

Youths of Hong Kong Limited

69. Endeavourers, Hong Kong 69. Endeavourers, Hong Kong Endeavourers, Hong Kong 0 1

70. English Schools Foundation 70. English Schools Foundation English Schools Foundation 3 5

71. Evangelical 71. Evangelical Evangelical Lutheran Church of Hong Kong Lutheran Church of Hong Kong Lutheran Church of Hong Kong 3 7

72. Evangelical School Development Incorporation Limited 72. Evangelical School Development Incorporation Limited Evangelical School Development Incorporation Limited 4 2 73. Evangelize China Fellowship 73. Evangelize China Fellowship Evangelize China Fellowship 2 2

74. Fish Marketing Orgaisation 74. Fish Marketing Orgaisation Fish Marketing Orgaisation 1 8

75. Five Districts Business Welfare Association 75. Five Districts Business Welfare Association Five Districts Business Welfare Association 2 6

76. Fong Shu Fook Tong Foundation 76. Fong Shu Fook Tong Foundation Fong Shu Fook Tong Foundation 0 1

77. Franciscan Fathers of Hong Kong 77. Franciscan Fathers of Hong Kong Franciscan Fathers of Hong Kong 1 2

78. Franciscan Missionaries of Mary (Franciscan Sisters) 78. Franciscan Missionaries of Mary (Franciscan Sisters) Franciscan Missionaries of Mary (Franciscan Sisters) 1 2 79. Franciscan Missionary Sisters of Our Lady of Sorrows 79. Franciscan Missionary Sisters of Our Lady of Sorrows Franciscan Missionary Sisters of Our Lady of Sorrows 1 1 80. French International School Association Limited 80. French International School Association Limited French International School Association Limited 1 1 81. Fukien Chamber of Commerc 81. Fukien Chamber of Commerc Fukien Chamber of Commerce 1 1

82. Fung Kai Public School 82. Fung Kai Public School Fung Kai Public School 2 2

83. General Chambers of Commerce and Industry of Tung Koon District 83. General Chambers of Commerce and Industry of Tung Koon District General Chambers of Commerce and Industry of Tung Koon District 1 1

84. Geman Swiss International School Association Hong Kong 84. Geman Swiss International School Association Hong Kong Geman Swiss International School Association Hong Kong 1 1 85. Gettons Investment Limited 85. Gettons Investment Limited Gettons Investment Limited 1 0

86. Godspeed Limited 86. Godspeed Limited Godspeed Limited 2 0

87. Gold and Silv 87. Gold and Silv Gold and Silver Exchange Society er Exchange Society er Exchange Society 0 1

88. Good Shepherd Sisters 88. Good Shepherd Sisters Good Shepherd Sisters 2 1

89. Grantham College of Education Past Student Association 89. Grantham College of Education Past Student Association Grantham College of Education Past Student Association 0 3 90. Hong Kong and Kowloon Chiu Chow Public Association 90. Hong Kong and Kowloon Chiu Chow Public Association Hong Kong and Kowloon Chiu Chow Public Association 1 0 91. Hong Kong and Kowloon Joint Kaifong Education Committee Limited 91. Hong Kong and Kowloon Joint Kaifong Education Committee Limited Hong Kong and Kowloon Joint Kaifong Education Committee Limited 1 1 92. Hong Kong Association for the Mentally Handicapped 92. Hong Kong Association for the Mentally Handicapped Hong Kong Association for the Mentally Handicapped 13 13 93. Hong Kong Baptist Church 93. Hong Kong Baptist Church Hong Kong Baptist Church 1 0

94. Hong Kong Christian Service 94. Hong Kong Christian Service Hong Kong Christian Service 1 1

95. Hong Kong Eng Clansmen Association School Limited 95. Hong Kong Eng Clansmen Association School Limited Hong Kong Eng Clansmen Association School Limited 0 1 96. Hong Kong Harbour Mission Church 96. Hong Kong Harbour Mission Church Hong Kong Harbour Mission Church 0 1

97. Hong Kong Juvenile Ca 97. Hong Kong Juvenile Ca Hong Kong Juvenile Care Centre re Centre re Centre 0 1

98. Hong Kong Resort Company Limited 98. Hong Kong Resort Company Limited Hong Kong Resort Company Limited 0 1

99. Hong Kong School for the Deaf 99. Hong Kong School for the Deaf Hong Kong School for the Deaf 1 2

100. Hong Kong Student Aid Society 100. Hong Kong Student Aid Society Hong Kong Student Aid Society 0 1

101. Hong Kong - Macao Conference of Seventh Day Adventists 101. Hong Kong - Macao Conference of Seventh Day Adventists Hong Kong - Macao Conference of Seventh Day Adventists 5 2 102. Heep Yunn School 102. Heep Yunn School Heep Yunn School 1 1

103. Heung Hoi Ching Kok Li 103. Heung Hoi Ching Kok Li Heung Hoi Ching Kok Lin Association n Association n Association 2 4

104. Heung To Middle School Limited 104. Heung To Middle School Limited Heung To Middle School Limited 2 1

105. Hildesheim Mission Germany 105. Hildesheim Mission Germany Hildesheim Mission Germany 2 2

106. Hong Kong and Kowloon Fresh Fish Trade General Association 106. Hong Kong and Kowloon Fresh Fish Trade General Association Hong Kong and Kowloon Fresh Fish Trade General Association 0 1 107. Hong Kong and Kowloon Kaifong Women's Association Limited 107. Hong Kong and Kowloon Kaifong Women's Association Limited Hong Kong and Kowloon Kaifong Women's Association Limited 0 1 108. Hong Kong and Kow 108. Hong Kong and Kow Hong Kong and Kowloon Schools for Workers' Children Limited loon Schools for Workers' Children Limited loon Schools for Workers' Children Limited 1 1 109. Hong Kong and Kowloon Restaurant and Teahouse Employees' Guild 109. Hong Kong and Kowloon Restaurant and Teahouse Employees' Guild Hong Kong and Kowloon Restaurant and Teahouse Employees' Guild 0 1

110. Hong Kong Chinese Women's Club 110. Hong Kong Chinese Women's Club Hong Kong Chinese Women's Club 2 1

111. Hong Kong Chiu Chow Chamber of Commerce 111. Hong Kong Chiu Chow Chamber of Commerce Hong Kong Chiu Chow Chamber of Commerce 0 1

112. Hong Kong Japanese School Limited 112. Hong Kong Japanese School Limited Hong Kong Japanese School Limited 1 1

113. Hong Kong Szeto Clan's Association 113. Hong Kong Szeto Clan's Association Hong Kong Szeto Clan's Association 0 1

114. Hong Kong Vernacular Normal Schools Alumni 114. Hong Kong Vernacular Normal Schools Alumni Hong Kong Vernacular Normal Schools Alumni 0 1 Association School Limited

115. Hong Kong Weaving Mills Association Education Fund 115. Hong Kong Weaving Mills Association Education Fund Hong Kong Weaving Mills Association Education Fund 2 1 116. HKUSD Staff General Association 116. HKUSD Staff General Association HKUSD Staff General Association 0 1

117. Hoi Ping Chamber of C 117. Hoi Ping Chamber of C Hoi Ping Chamber of Commerce of Hong Kong ommerce of Hong Kong ommerce of Hong Kong 1 1 118. Holy Carpenter Church 118. Holy Carpenter Church Holy Carpenter Church 0 1

119. Holy Trinity Church 119. Holy Trinity Church Holy Trinity Church 0 1

120. Hong Kong Buddhist Assoication 120. Hong Kong Buddhist Assoication Hong Kong Buddhist Assoication 13 10

121. Hong Kong and Macau Lutheran Church Limited 121. Hong Kong and Macau Lutheran Church Limited Hong Kong and Macau Lutheran Church Limited 0 3 122. Hong Kong Buddhist Sangha Association Limited 122. Hong Kong Buddhist Sangha Association Limited Hong Kong Buddhist Sangha Association Limited 2 0 123. Hong Kong 123. Hong Kong Hong Kong Cotton Spinners Association Prevocational School Trust Cotton Spinners Association Prevocational School Trust 1 0

124. Hong Kong Council of the Church of Christ in China 124. Hong Kong Council of the Church of Christ in China Hong Kong Council of the Church of Christ in China 27 26 125. Hong Kong Hok Shan Association Limited 125. Hong Kong Hok Shan Association Limited Hong Kong Hok Shan Association Limited 0 1

126. Hong Kong Institute of Language and Translation 126. Hong Kong Institute of Language and Translation Hong Kong Institute of Language and Translation 2 0 127. Hong Kong Red Cross 127. Hong Kong Red Cross Hong Kong Red Cross 6 14

128. Hong Kong Red Swastika Society 128. Hong Kong Red Swastika Society Hong Kong Red Swastika Society 2 2

129. Hong Kong Sea School 129. Hong Kong Sea School Hong Kong Sea School 1 1

130. Hong Kong Student Association Limited 130. Hong Kong Student Association Limited Hong Kong Student Association Limited 2 0

131. Hong Kong Sze Yap Comm and Ind Association Education 131. Hong Kong Sze Yap Comm and Ind Association Education Hong Kong Sze Yap Comm and Ind Association Education 3 3 Organisation Limited

132. Hong Kong Taoist Association 132. Hong Kong Taoist Association Hong Kong Taoist Association 4 6

133. Hong Kong Wong Clan Association ong Kong Wong Clan Association ong Kong Wong Clan Association 0 2

134. Hong Kong Young Women's Christian Association 134. Hong Kong Young Women's Christian Association Hong Kong Young Women's Christian Association 1 0 135. Hong Lok Yuen School International Association Limited 135. Hong Lok Yuen School International Association Limited Hong Lok Yuen School International Association Limited 0 1 136. Hop Yat Church, Church of Christ in China 136. Hop Yat Church, Church of Christ in China Hop Yat Church, Church of Christ in China 0 1 137. Hung Hum (Three Districts) Kaifong Associa 137. Hung Hum (Three Districts) Kaifong Associa Hung Hum (Three Districts) Kaifong Association 0 1 138. Indonesian Government 138. Indonesian Government Indonesian Government 1 1

139. Institute of the Marist Brothers 139. Institute of the Marist Brothers Institute of the Marist Brothers 1 0

140. International Church of the Foursquare Gospel - Hong Kong 140. International Church of the Foursquare Gospel - Hong Kong International Church of the Foursquare Gospel - Hong Kong 1 0 District Limited

141. Ju Ching Chu English College Limited 141. Ju Ching Chu English College Limited Ju Ching Chu English College Limited 3 0

142. Junk Bay English College Limite 142. Junk Bay English College Limite Junk Bay English College Limited 1 1

143. Kiangsu and Chekiang Residents (Hong Kong) Association 143. Kiangsu and Chekiang Residents (Hong Kong) Association Kiangsu and Chekiang Residents (Hong Kong) Association 3 1 144. King's College Old Boy's Association School Limited 144. King's College Old Boy's Association School Limited King's College Old Boy's Association School Limited 0 2 145. Kowloon City District Kaifong Welfare Association 145. Kowloon City District Kaifong Welfare Association Kowloon City District Kaifong Welfare Association 0 1 146. Kowloon Pentecostal Church Limited 146. Kowloon Pentecostal Church Limited Kowloon Pentecostal Church Limited 2 1

147. Kowloon Wome 147. Kowloon Wome Kowloon Women's Welfare Club n's Welfare Club n's Welfare Club 0 1

148. Kochow and Luichow Residents (Hong Kong) Association Limited 148. Kochow and Luichow Residents (Hong Kong) Association Limited Kochow and Luichow Residents (Hong Kong) Association Limited 1 0

149. Kow Kong Commercial Association 149. Kow Kong Commercial Association Kow Kong Commercial Association 0 1

150. Kowloon City Baptist Church 150. Kowloon City Baptist Church Kowloon City Baptist Church 0 1

151. Kowloon City Christians' Church 151. Kowloon City Christians' Church Kowloon City Christians' Church 1 0

152. Kowloon Tong Church of the Chinese C 152. Kowloon Tong Church of the Chinese C Kowloon Tong Church of the Chinese Christian and hristian and hristian and 3 5 Missionary Alliance

153. Kowloon Tong School 153. Kowloon Tong School Kowloon Tong School 1 1

154. Kwong Yuet Tong, Hong Kong 154. Kwong Yuet Tong, Hong Kong Kwong Yuet Tong, Hong Kong 0 1

155. Lai Chack Middle School Limited 155. Lai Chack Middle School Limited Lai Chack Middle School Limited 1 1

156. Law's Foundation Limited 156. Law's Foundation Limited Law's Foundation Limited 1 0

157. Ling Liang World-wide Evagelistic Mission 157. Ling Liang World-wide Evagelistic Mission Ling Liang World-wide Evagelistic Mission 1 1

158. Lingnan Educatr 158. Lingnan Educatr Lingnan Educatrrion Organization Limited rion Organization Limited rion Organization Limited 3 1

159. Lingnan University Alumni Association 159. Lingnan University Alumni Association Lingnan University Alumni Association 0 1

160. Local Church of Assembly of God 160. Local Church of Assembly of God Local Church of Assembly of God 0 1

161. Lock Tao Secondary School Limited 161. Lock Tao Secondary School Limited Lock Tao Secondary School Limited 1 0

162. Lok Sin Tong Benevolent Society, Kowloon 162. Lok Sin Tong Benevolent Society, Kowloon Lok Sin Tong Benevolent Society, Kowloon 8 6

163. Lotus Association of Hong Kong 163. Lotus Association of Hong Kong Lotus Association of Hong Kong 2 2

164. Lung Kong World Federation School (Hong Kong) Limited 164. Lung Kong World Federation School (Hong Kong) Limited Lung Kong World Federation School (Hong Kong) Limited 1 3 165. Lutheran Church - Hong Kong Synod Limited 165. Lutheran Church - Hong Kong Synod Limited Lutheran Church - Hong Kong Synod Limited 10 9

166. Man Kiu Association Limited 166. Man Kiu Association Limited Man Kiu Association Limited 1 2

167. Man Sun School Management Committee 167. Man Sun School Management Committee Man Sun School Management Committee 0 1

168. Management Committee of Hang Hau Central 168. Management Committee of Hang Hau Central Management Committee of Hang Hau Central 0 1

Shing Hang Fong Men Primary School Limited Shing Hang Fong Men Primary School Limited

169. Maryknoll Sisters of St. Dominic Incorporation in Hong Kong 169. Maryknoll Sisters of St. Dominic Incorporation in Hong Kong Maryknoll Sisters of St. Dominic Incorporation in Hong Kong 1 1 170. Mental Health Association of Hong Kong 170. Mental Health Association of Hong Kong Mental Health Association of Hong Kong 1 1

171. Methodist Church, Hong Kong 171. Methodist Church, Hong Kong Methodist Church, Hong Kong 6 7

172. Mission Covenant Church of Norway (Hong Kong Field) 172. Mission Covenant Church of Norway (Hong Kong Field) Mission Covenant Church of Norway (Hong Kong Field) Limited Limited Limited 1 0 173. Missionary Sisters of Our Lady of the Angels - Hong Kong Limited 173. Missionary Sisters of Our Lady of the Angels - Hong Kong Limited 1 1

174. Missionary Sisters of St. Columban 174. Missionary Sisters of St. Columban Missionary Sisters of St. Columban 2 2

175. Missionary Sisters of the Immaculate Conception 175. Missionary Sisters of the Immaculate Conception Missionary Sisters of the Immaculate Conception 2 2 176. Missionary Sisters of the Immaculate Heart of Mary 176. Missionary Sisters of the Immaculate Heart of Mary Missionary Sisters of the Immaculate Heart of Mary 0 1 177. Miu Fat uddhist Monastery 177. Miu Fat uddhist Monastery Miu Fat uddhist Monastery2 0

178. Mu Kuang School Limited 178. Mu Kuang School Limited Mu Kuang School Limited 1 1

179. Mulit-ed Limited 179. Mulit-ed Limited Mulit-ed Limited 3 1

180. Munsang College 180. Munsang College Munsang College 1 1

181. NCE Past Students Association School 181. NCE Past Students Association School NCE Past Students Association School 0 1

182. New Asia Educational and Cultural Association Limited 182. New Asia Educational and Cultural Association Limited New Asia Educational and Cultural Association Limited 1 0 183. New Life School Inco 183. New Life School Inco New Life School Incorporation Limited rporation Limited rporation Limited 1 0

184. Ng Clan's Association Tai Pak Memorial School Company Limited 184. Ng Clan's Association Tai Pak Memorial School Company Limited Ng Clan's Association Tai Pak Memorial School Company Limited 0 1

185. Ng Sing Tat Tso 185. Ng Sing Tat Tso Ng Sing Tat Tso 0 1

186. Ng Yuk Secondary School Limited 186. Ng Yuk Secondary School Limited Ng Yuk Secondary School Limited 1 0

187. Nim Wan Public Primary School Committee 187. Nim Wan Public Primary School Committee Nim Wan Public Primary School Committee 0 1

188. Ning Po Residents Association (Hong Ko 188. Ning Po Residents Association (Hong Ko Ning Po Residents Association (Hong Kong) Limited ng) Limited ng) Limited 2 0 189. North Point Kaifong Welfare Advancement Association 189. North Point Kaifong Welfare Advancement Association North Point Kaifong Welfare Advancement Association 0 1 190. Norwegian Lutheran Mission 190. Norwegian Lutheran Mission Norwegian Lutheran Mission 2 2

191. Norwegian Missionary Society 191. Norwegian Missionary Society Norwegian Missionary Society 0 1

192. NT Women and Juveniles Welfare Association Limited 192. NT Women and Juveniles Welfare Association Limited NT Women and Juveniles Welfare Association Limited 0 1 193. Oblates of Mary Immaculate 193. Oblates of Mary Immaculate Oblates of Mary Immaculate 1 1

194. Peng Chau Veget Farmers' Guild (Choi Yuen Hong) Peng Chau Veget Farmers' Guild (Choi Yuen Hong) Peng Chau Veget Farmers' Guild (Choi Yuen Hong) 0 1 195. Pentecostal Assemblies of Canada (South East Asia District) Limited 195. Pentecostal Assemblies of Canada (South East Asia District) Limited 1 0

196. Pentecostal Church of Hong Kong Limited 196. Pentecostal Church of Hong Kong Limited Pentecostal Church of Hong Kong Limited 1 0

197. Pentecostal Holiness Church Incorporation 197. Pentecostal Holiness Church Incorporation Pentecostal Holiness Church Incorporation 1 1 198. Po Leung Kuk 198. Po Leung Kuk Po Leung Kuk 13 18

199. Po On Commercial Association Non-profit Making Schools Limited 199. Po On Commercial Association Non-profit Making Schools Limited Po On Commercial Association Non-profit Making Schools Limited 1 2

200. Pok Oi Hospital 200. Pok Oi Hospital Pok Oi Hospital 2 0

201. Portugese Commuity Education and Welfare Foundation Incorporation 201. Portugese Commuity Education and Welfare Foundation Incorporation 0 1

202. Precious Blood Congregation 202. Precious Blood Congregation Precious Blood Congregation 3 6

203. Pui Ying Middle School of Hong Kon 203. Pui Ying Middle School of Hong Kon Pui Ying Middle School of Hong Kong 1 0

204. Pun U District Association 204. Pun U District Association Pun U District Association 0 1

205. Queen's College Old Boy's Secondary School, Limited 205. Queen's College Old Boy's Secondary School, Limited Queen's College Old Boy's Secondary School, Limited 2 0 206. Rural Training College Alumni Association 206. Rural Training College Alumni Association Rural Training College Alumni Association 0 1 207. S.K.H. Primary Schools Council 207. S.K.H. Primary Schools Council S.K.H. Primary Schools Council 0 2

208. Salesian Society Incorporation, Salesians of Don Bos 208. Salesian Society Incorporation, Salesians of Don Bos Salesian Society Incorporation, Salesians of Don Bosco 1 2 209. Salvation Army - Hong Kong and Taiwan Command 209. Salvation Army - Hong Kong and Taiwan Command Salvation Army - Hong Kong and Taiwan Command 1 2 210. Salvation Army - Hong Kong Command 210. Salvation Army - Hong Kong Command Salvation Army - Hong Kong Command 0 3

211. San Shui Natives Association School Fund Limited 211. San Shui Natives Association School Fund Limited San Shui Natives Association School Fund Limited 1 3 212. San Wui Commercial Association of Hong Kong 212. San Wui Commercial Association of Hong Kong San Wui Commercial Association of Hong Kong 2 2 Education Organisation Limited

213. Scheut Mission Congregation Scheut Mission Congregation Scheut Mission Congregation 1 0

214. Sha Tau Kok Central Primary School Limited 214. Sha Tau Kok Central Primary School Limited Sha Tau Kok Central Primary School Limited 0 1

215. Shamshuipo Kaifong Welfare Advancement Association 215. Shamshuipo Kaifong Welfare Advancement Association Shamshuipo Kaifong Welfare Advancement Association 0 1 216. Shamshuipo Schools Limited 216. Shamshuipo Schools Limited Shamshuipo Schools Limited 1 0

217. Shatin Public School Association Limited 217. Shatin Public School Association Limited Shatin Public School Association Limited 1 2 218. Shaukiwan Ts 218. Shaukiwan Ts Shaukiwan Tsung Tsin Church ung Tsin Church ung Tsin Church 1 0

219. Shek Wu Public School Limited 219. Shek Wu Public School Limited Shek Wu Public School Limited 0 1

220. Shue Yan College Limited 220. Shue Yan College Limited Shue Yan College Limited 2 0

221. Shue Tak Fratemal Association 221. Shue Tak Fratemal Association Shue Tak Fratemal Association 4 3

222. Sik Sik Yuen 222. Sik Sik Yuen Sik Sik Yuen 4 3

223. Singapore International School Foundation Limited 223. Singapore International School Foundation Limited Singapore International School Foundation Limited 0 1 224. Sino Nippon Cultural Centre Limi 224. Sino Nippon Cultural Centre Limi Sino Nippon Cultural Centre Limited 1 0

225. Sisters Announcers of the Lord 225. Sisters Announcers of the Lord Sisters Announcers of the Lord 2 1

226. Sisters of the Immaculate Heart of Mary 226. Sisters of the Immaculate Heart of Mary Sisters of the Immaculate Heart of Mary 1 1

227. Sisters of the Precious Blood Congregation 227. Sisters of the Precious Blood Congregation Sisters of the Precious Blood Congregation 0 1 228. Society of Boys' Centres 228. Society of Boys' Centres Society of Boys' Centres 2 3

229. Society of Jesus in Hong Kong 229. Society of Jesus in Hong Kong Society of Jesus in Hong Kong 2 0

230. Society of Natives of C 230. Society of Natives of C Society of Natives of Chiu Len hiu Len hiu Len 0 1

231. Society of St. Francis of Sales 231. Society of St. Francis of Sales Society of St. Francis of Sales 6 7

232. South Asian Lutheran Evangelical Mission Limited 232. South Asian Lutheran Evangelical Mission Limited South Asian Lutheran Evangelical Mission Limited 1 0 233. Spastics Association of Hong Kong 233. Spastics Association of Hong Kong Spastics Association of Hong Kong 2 3

234. SRBCE Past Students Association 234. SRBCE Past Students Association SRBCE Past Students Association 0 2

235. St. Basil's Technical Secondary School Council 235. St. Basil's Technical Secondary School Council St. Basil's Technical Secondary School Council 0 1 236. St. Paul's College Council 236. St. Paul's College Council St. Paul's College Council 2 1

237. St. Paul's Institution 237. St. Paul's Institution St. Paul's Institution 3 2

238. St. Stephen's Girls' College 238. St. Stephen's Girls' College St. Stephen's Girls' College 1 1

239. St. Stephen's Church 239. St. Stephen's Church St. Stephen's Church 0 1

240. St. Stephen's College 240. St. Stephen's College St. Stephen's College 1 1

241. Stewards' Company (Hong Kong) Limited 241. Stewards' Company (Hong Kong) Limited Stewards' Company (Hong Kong) Limited 0 3

242. Sun Wui Ku-Cheng Native's Asso 242. Sun Wui Ku-Cheng Native's Asso Sun Wui Ku-Cheng Native's Association ciation ciation 0 1

243. Sung Lan Middle School 243. Sung Lan Middle School Sung Lan Middle School 1 0

244. Swire Pacific Limited 244. Swire Pacific Limited Swire Pacific Limited 0 1

245. Tai Hang Residents' Welfare Association 245. Tai Hang Residents' Welfare Association Tai Hang Residents' Welfare Association 0 1

246. Tai Kwong Yeung Incorporation 246. Tai Kwong Yeung Incorporation Tai Kwong Yeung Incorporation 1 1

247. Tai Lam Chung Education Organisation Limited 247. Tai Lam Chung Education Organisation Limited Tai Lam Chung Education Organisation Limited 0 1 248. Tai Po Lam Tsuen Heung Educa 248. Tai Po Lam Tsuen Heung Educa Tai Po Lam Tsuen Heung Education Development Company Limited tion Development Company Limited tion Development Company Limited 0 1

249. Tai Po Old Market Public School Limited 249. Tai Po Old Market Public School Limited Tai Po Old Market Public School Limited 0 1

250. Tai Po Public School Limited 250. Tai Po Public School Limited Tai Po Public School Limited 0 1

251. Tai Po Shung Tak School Limited 251. Tai Po Shung Tak School Limited Tai Po Shung Tak School Limited 0 2

252. Tata Buddhist Association 252. Tata Buddhist Association Tata Buddhist Association 0 1

253. Textile Institute Section In Hong Kong (Educat 253. Textile Institute Section In Hong Kong (Educat Textile Institute Section In Hong Kong (Education) Limited ion) Limited ion) Limited 1 0 254. Ti-I Education Foundation Limited 254. Ti-I Education Foundation Limited Ti-I Education Foundation Limited 1 0

255. Tim Sum Valley United Village Office Limited 255. Tim Sum Valley United Village Office Limited Tim Sum Valley United Village Office Limited 0 1 256. Toi Shan Association EducationOrganisation Limited 256. Toi Shan Association EducationOrganisation Limited Toi Shan Association EducationOrganisation Limited 1 1 257. Toshin International School Limited 257. Toshin International School Limited Toshin International School Limited 1 1

258. True Light Middle School of 258. True Light Middle School of True Light Middle School of Hong Kong Hong Kong Hong Kong 1 1

259. Tsang Shing District Citizen's Association 259. Tsang Shing District Citizen's Association Tsang Shing District Citizen's Association 0 1

260. Tsing Yi Trade Association (School) Limited 260. Tsing Yi Trade Association (School) Limited Tsing Yi Trade Association (School) Limited 0 1

261. Tsuen Wan Chiu Chow Welfare Association 261. Tsuen Wan Chiu Chow Welfare Association Tsuen Wan Chiu Chow Welfare Association 0 1

262. Tsuen Wan Public School (Incorporated Body) 262. Tsuen Wan Public School (Incorporated Body) Tsuen Wan Public School (Incorporated Body) 1 1

263. Tsuen Wan Trade Associa 263. Tsuen Wan Trade Associa Tsuen Wan Trade Association Education Foundation Limited tion Education Foundation Limited tion Education Foundation Limited 0 1 264. Tsung Tsim Mission of Hong Kong 264. Tsung Tsim Mission of Hong Kong Tsung Tsim Mission of Hong Kong 4 4

265. Tsz Wan Shan Kaifong Welfare Association 265. Tsz Wan Shan Kaifong Welfare Association Tsz Wan Shan Kaifong Welfare Association 1 1

266. Tung Koon District General Association 266. Tung Koon District General Association Tung Koon District General Association 0 4

267. Tung Lin Kok Yuen 267. Tung Lin Kok Yuen Tung Lin Kok Yuen 2 2

268. Tung Wah Group of Hospitals 268. Tung Wah Group of Hospitals Tung Wah Group of Hospitals 16 14

269. United Christian College Limited nited Christian College Limited nited Christian College Limited 1 0

270. University of Shanghai Alumni Association of Hong Kong Limited 270. University of Shanghai Alumni Association of Hong Kong Limited University of Shanghai Alumni Association of Hong Kong Limited 0 1

271. Wai Chow Clansmen General Association of Hong Kong 271. Wai Chow Clansmen General Association of Hong Kong Wai Chow Clansmen General Association of Hong Kong 0 1 272. Wai Chow Sheung Shui Clansman Association Limited 272. Wai Chow Sheung Shui Clansman Association Limited Wai Chow Sheung Shui Clansman Association Limited 0 1 273. Wanchai Kifong Welfa 273. Wanchai Kifong Welfa Wanchai Kifong Welfare Association (Hong Kong) Limited re Association (Hong Kong) Limited re Association (Hong Kong) Limited 0 1 274. Wellwisher Foundation Limited 274. Wellwisher Foundation Limited Wellwisher Foundation Limited 0 1

275. Women's Welfare Club Western District, Hong Kong 275. Women's Welfare Club Western District, Hong Kong Women's Welfare Club Western District, Hong Kong 0 1 276. Woolrich Investment Company Limited 276. Woolrich Investment Company Limited Woolrich Investment Company Limited 0 1

277. Yan Chai Hospital 277. Yan Chai Hospital Yan Chai Hospital 2 3

278. Yan Oi Tong Limited 278. Yan Oi Tong Limited Yan Oi Tong Limited 2 1

279. Yan Ping 279. Yan Ping Yan Ping Industrial and Commercial Association School Limited Industrial and Commercial Association School Limited Industrial and Commercial Association School Limited 1 1

280. Yau Kung School 280. Yau Kung School Yau Kung School 0 1

281. Yau Yat Chuen School 281. Yau Yat Chuen School Yau Yat Chuen School 0 1

282. Yaumati Kaifong Welfare Advancement Association Limited 282. Yaumati Kaifong Welfare Advancement Association Limited Yaumati Kaifong Welfare Advancement Association Limited 0 1 283. Yuen Kong School Limited 283. Yuen Kong School Limited Yuen Kong School Limited 0 1

284. Yuen Long Chamber of Commerce 284. Yuen Long Chamber of Commerce Yuen Long Chamber of Commerce 1 2

285. Yuen Long Public Middle School Alumni Association Limited 285. Yuen Long Public Middle School Alumni Association Limited Yuen Long Public Middle School Alumni Association Limited 0 1 286. Yuen Long Tung Koon School, Limited 286. Yuen Long Tung Koon School, Limited Yuen Long Tung Koon School, Limited 0 1

287. Yuen Long Wai Chow School Limited 287. Yuen Long Wai Chow School Limited Yuen Long Wai Chow School Limited 0 1

----- ----- ----- -----

Total 449 Total 449 553

Services available for the needy in "Big Chills"

17. WONG WAI- 17. WONG WAI- WONG WAI-YIN asked: In view of the recent cold spelling in Hong Kong in which YIN asked: In view of the recent cold spelling in Hong Kong in which the temperature suddenly fell to below 10 degrees Celsius and claimed the lives of a few people, will the Government inform this Council:

(a) what services will be provided by the conce (a) what services will be provided by the conce what services will be provided by the concerned departments to those people rned departments to those people indeed during the cold weather, and what emergency measure will be taken should the temperature plummet in the middle of the night;

(b) how the departments concerned co-ordinate their services and liaise with the (b) how the departments concerned co-ordinate their services and liaise with the Royal Observatory;

(c) whether the departments concerned will consider distributing warm clothing (c) whether the departments concerned will consider distributing warm clothing and blankets and opening community halls to the needy in advance when the temperature is expected to drop sharply; and

(d) whether the Administration has investi (d) whether the Administration has investi whether the Administration has investigated complaints that the blankets gated complaints that the blankets handed out to street-sleepers by the Social Welfare Department are ineffective in keeping them warm?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, when it is forecast that the temperature will fall to 10 degrees Celsius or below during cold weather, the Social Welfare Department will distribute blankets and sleeping bags to street sleepers. The City and New Territories Administration will open shelters in community centres and estate community centres for persons who need shelter from the cold.

The Royal Observatory issues weather forecast bulletins twice a day (around noon and 4 pm) on weekdays to the Social Welfare Department. The City and New Territories Administration telephones the Observatory around 4.15 pm for a temperature forecast for the night when necessary. On Saturdays, Sundays and public holidays, the two

departments will contact the Royal Observatory by telephone for weather forecasts. If the weather changes unexpectedly, the Royal Observatory will contact the two departments.

There is very little demand for warm clothing. Accordingly, only blankets and sleeping bags are distributed during a cold spell. The present arrangements for distributing blankets and sleeping bags and opening shelters when it is forecast that the temperature will drop to 10 degrees Celsius or below are considered satisfactory.

The Social Welfare Department has received no complaints about the quality of its blankets and sleeping bags. Street sleepers can ask for more than one blanket if there is a need. They will be given adequate blankets to keep them warm. Additionally, persons who need shelter from the cold can go to the shelters in community centres.

Public housing rent increases

18. MR LEE WING-TAT asked: Re 18. MR LEE WING-TAT asked: Re MR LEE WING-TAT asked: Regarding the rent increase for public housing estates garding the rent increase for public housing estates announced by the Housing Authority on 16 January, will Government inform this Council of the following:

(a) the rates of increase for the estates in various districts; (a) the rates of increase for the estates in various districts; (b) the reason(s) for the incre (b) the reason(s) for the incre the reason(s) for the increase; and ase; and

(c) the additional revenue that the increase will bring to the Housing Author (c) the additional revenue that the increase will bring to the Housing Authority?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the maximum amounts of rent increase in various districts are:

* $6.0/sq m for Urban Area * $6.0/sq m for Urban Area $6.0/sq m for Urban Areas/Shatin/Tsuen Wan/Kwai Chung s/Shatin/Tsuen Wan/Kwai Chung

* $5.0/sq m for Tsing Yi/Tai Po/Tseung Kwan O/Ma On Shan * $5.0/sq m for Tsing Yi/Tai Po/Tseung Kwan O/Ma On Shan

* $5.0/sq m for converted blocks * $5.0/sq m for converted blocks

* $4.5/sq m for Fanling/Sheung Shui * $4.5/sq m for Fanling/Sheung Shui

* $4.0/sq m for Yuen Long/Tuen Mun * $4.0/sq m for Yuen Long/Tuen Mun

* $2.5/sq m for Outlying Islands * $2.5/sq m for Outlying Islands

With the increase, the rent levels of the estates in the above districts will With the increase, the rent levels of the estates in the above districts will be revised from $14.38 to $24.21/sq m to $16.88 to $30.21/sq m; 83% of the affected households will be required to pay between 12% and 26% more than their existing rent.

It is the Housing Authority's policy to charge domestic rents not exceeding a It is the Housing Authority's policy to charge domestic rents not exceeding a median rent-to-income ratio of 15% to 18.5%. The Authority reviews its rents every two years in order to bring them to more realistic levels. In all rent reviews, the Housing Authority gives regard to the value of the estate in terms of its location, amenities, environment, schools, employment opportunities, transportation and other facilities available on or in the vicinity of the estate, as compared with other estates. This is to ensure that rents for comparable estates are consistent.

As part of the regular rent review process, rents in 69 post-1973 estates were examined in May 1991. In deciding on the present rate of increase, the Authority took into account the following factors since the previous review in 1989:

(a) rents were inclusive of rates, with increases in rates being recovered (a) rents were inclusive of rates, with increases in rates being recovered retrospectively. Rates had increased by a uniform 25% in April 1990 and on average by a further 19% following the 1991-92 general revaluation;

(b) (b) the existing rent levels in these estates were only 23% of market rents; the existing rent levels in these estates were only 23% of market rents;

(c) the average market rent of comparable flats in the private sector had (c) the average market rent of comparable flats in the private sector had increased from $76/sq m to $100/sq m, representing an increase of 32%;

(d) the nominal wage i (d) the nominal wage i the nominal wage index had risen by 28%; ndex had risen by 28%;

(e) inflation had been 22%; and (e) inflation had been 22%; and

(f) (f) the estate working expenses had increased by 40%, mainly due to rising the estate working expenses had increased by 40%, mainly due to rising costs in management, maintenance, security and cleansing.

The median rent-to-income ratio would be 10.5% after the next increase. The median rent-to-income ratio would be 10.5% after the next increase.

The recently announced rent increase was originally scheduled to take effect on 1 September 1991. However, the Housing Authority decided to defer the implementation date to 1 March 1992, having regard to the moratorium on increases in departmental fees and charges imposed by the Government as part of its efforts to curb inflation. The level of rent increase have nevertheless not been adjusted to take account of increases in costs and other factors which have taken place since the review.

The additional revenue generated by the increase will be $491 million for the period up to 31 August 1993. After the rates payment of $298 million to the Government, the net gain to the Authority will be $193 million.

New type of lottery

19. MR HUI Y 19. MR HUI Y MR HUI YIN-FAT asked: In view of the Lotteries Board's plan to launch a new type IN-FAT asked: In view of the Lotteries Board's plan to launch a new type of lottery offering handsome prize money, which runs counter to the Government's consistent policy of not encouraging gambling, will the Administration inform this Council:

(a) of t (a) of the specific details of the proposal (including the objective and timing he specific details of the proposal (including the objective and timing of its implementation, sales plans and distribution of the proceeds etc.) and the progress made so far;

(b) what factors will be taken into account by the Government before deciding (b) what factors will be taken into account by the Government before deciding on whether to endorse the Lotteries Board's application; and

(c) whether the views of the public will be widely sought before a decision on (c) whether the views of the public will be widely sought before a decision on the plan is taken, just as the Government did when launching a pilot scheme on expanding the Mark Six sales network?

SECRETARY FOR HOME AFFAIRS: Mr Deputy President, the Hong Kong Lotteries Board has approached the Government with a proposal that they be permitted to conduct an instant lottery in Hong Kong.

I should like to explain the reason behind this proposal in simple terms. The I should like to explain the reason behind this proposal in simple terms. The

Board is concerned over the proliferation of instant lotteries offering non-cash prizes. These lotteries are mainly used for trade promotion purposes and are licensed by the Commissioner for Television and Entertainment Licensing under the Gambling Ordinance. In view of their popularity and in line with similar developments overseas, the Lotteries Board has suggested the establishment of a major instant lottery which would be able to channel funds into projects currently outside the ambit of the Lotteries Fund.

Turning to the other questions asked by the Honourable Member, my answers are as follows:

(a) The Board proposes that they be allowed to conduct the lottery during the (a) The Board proposes that they be allowed to conduct the lottery during the racing closed season, possibly in the summer of l993. We have received only a preliminary proposal. Further details would have to be provided by the Board before proper consideration could be given to it.

In broad terms; the lottery would be organized over a fixed period with various levels of cash prizes being available. Tickets could cost about $l0. Proceeds would be split between prize money, welfare and community agencies, betting duty and administrative costs. Exactly how the funds raised would be used has yet to be worked out in detail.

(b) At th (b) At this stage in our assessment, we are concentrating on the broad princi is stage in our assessment, we are concentrating on the broad principles of the proposal. Factors which are likely to affect our view include the Government's established policy on gambling.This has always been to restrict opportunities for gambling but to allow controlled outlets for such gambling activities as exist where a cogent need is established. The instant lottery proposal is being considered in this context. Other factors will include the likely effect of an instant lottery organized by the Lotteries Board on the Mark Six Lottery and the anticipated level of income which might be derived from this source. of income which might be derived from this source.

(c) If, at the end of our initial assessment of the proposal, the Government (c) If, at the end of our initial assessment of the proposal, the Government allows the Lotteries Board to develop their plans further, I would expect the Board to take into account public opinion on this matter. I can also assure Members that the Government will carry out a full assessment of public opinion before a final decision is taken on this or any similar proposal.

False allegations made by police officers

20. REV FUNG CHI-WOOD asked: Will the Administration inform this Council of the n 20. REV FUNG CHI-WOOD asked: Will the Administration inform this Council of the number of cases in the past three years in which police officers have been found to have or suspected to have wilfully made false allegations; how the police dealt with those police officers who have made such false allegations and whether any internal

disciplinary actions have been taken?

SECRETARY FOR SECURITY: Mr Deputy President, each case involving a complaint that a police officer has made a false allegation of a criminal offence against a person is thoroughly investigated. If there is evidence to show that an officer has indeed made such a false allegation, he is liable to criminal charges. In the past three years, 107 complaints against the police of fabrication of evidence were investigated. None of these complaints has been substantiated, though 15 remain under

investigation.

First Reading of Bills

STAMP DUTY (AMENDMENT) BILL 1992

INLAND REVENUE (AMENDMENT) BILL 1992

STAMP DUTY (AMENDMENT) (NO. 2) BILL 1992

MEDICAL REGISTRATION (AMENDMENT) BILL 1992

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

Second Reading of Bills

STAMP DUTY (AMENDMENT) BILL 1992

THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Stamp Duty Ordinance."

He said: Mr Deputy President, I move that the Stamp Duty (Amendment) Bill 1992 be read the Second time.

The main aim of this Bill is to exempt instruments of transfer in respect of s The main aim of this Bill is to exempt instruments of transfer in respect of shares registered or deposited in a recognized clearing house from having to be endorsed and from payment of stamp duty on transfer.

The Bill contains two main provisions. First, it would remove the need for a broker, when making a sale or purchase of stock held by a recognized clearing house, to endorse the instrument of transfer to the effect that stamp duty has been paid on the relevant contract note. Secondly, by exempting such transfer deeds from duty, the Bill would provide an incentive for settlements to be effected through a

recognized clearing house.

Separately, the Bill seeks to clarify existing provisions of the Stamp Duty Ordinance, which exempt from stamp duty persons buying properties on behalf of the Chinese members of the Joint Liaison Group and the Land Commission, the International Committee of the Red Cross, and the Chinese Visa Office.

Finally, the Bill would extend the period for submitting reports to the Collector of Stamp Revenue by users of licensed franking machines from once a week to once a month.

The Bill has no staffing implications for the Government. The exemption from stamp duty of transfers registered in a recognized clearing house would involve a notional revenue loss of between $6 million and $20 million a year.

Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.

INLAND REVENUE (AMENDMENT) BILL 1992

THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Inland Revenue Ordinance."

He said: Mr Deputy President, I move that the Inland Revenue (Amendment) Bill 1992 be read the Second time.

At present, yields from Hong Kong dollar denominated debt instruments, with the exception of Exchange Fund Bills and Government Bonds, are liable both to profits tax and stamp duty. The aim of the Bill before Members is to exempt from profits tax interest and profits arising from Hong Kong dollar denominated debt instruments issued by credit-worthy multilateral agencies. Later this afternoon, I shall be moving the Second Reading of the Stamp Duty (Amendment) (No. 2) Bill 1992, which would exempt the same instruments from stamp duty.

The Bill confines the exemptions to four multilateral agencies, namely, the Asian The Bill confines the exemptions to four multilateral agencies, namely, the Asian Development Bank, the International Bank for Reconstruction and Development, the International Finance Corporation and the European Investment Bank. The Bill also provides that additions may be made to the list of exempted agencies by resolution of this Council.

Of the four exempted agencies, only one, the International Bank for Reconstruction and Development, has previously issued Hong Kong dollar bonds in the Territory. The introduction of this Bill now before Members is particularly timely, because the Asian Development Bank has scheduled the signing ceremony for its first Hong Kong dollar bond issue at the Bank's Annual Meeting in Hong Kong in May. A successful launch may attract more first class issues by multilateral agencies in Hong Kong. This will in turn help towards the expansion of the Hong Kong dollar capital markets, and so further promote Hong Kong's development as an international financial centre.

The Bill has no staffing implications for the Government. The cost to general revenue is estimated at less than $10 million per year.

Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.

STAMP DUTY (AMENDMENT) (NO. 2) BILL 1992

THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Stamp

Duty Ordinance."

He said: Mr Deputy President, I move that the Stamp Duty (Amendment) (No. 2) Bill 1992 be read the Second time.

A short while ago, I moved the Second Reading of the Inland Revenue (Amendment) A short while ago, I moved the Second Reading of the Inland Revenue (Amendment) Bill 1992. The purpose of that Bill was to exempt from profit tax liability Hong Kong dollar debt instruments issued by certain multilateral agencies. The purpose of the Bill now before Members is to exempt these same instruments from stamp duty.

The Bill confines the exemptions to four multilateral agencies: the Asian Development Bank, the International Bank for Reconstruction and Development, the International Finance Corporation and the European Investment Bank. The Bill also provides that additions may be made to the list of exempted agencies by resolution of this Council.

Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.

MEDICAL REGISTRATION (AMENDMENT) BILL 1992

THE SECRETARY FOR HEALTH AND WELFARE moved the Second Reading of: "A Bill to amend the Medical Registration Ordinance."

She said: Mr Deputy President, I move that the Medical Registration (Amendment) Bill 1992 be read the Second time.

At present, the Medical Registration Ordinance provides that only a holder of a Hong Kong diploma, a holder of a United Kingdom, Irish or recognized Commonwealth diploma or a Licentiate may be registered to practise medicine in Hong Kong. In addition, a person who is in the full-time service of the Government or the Hospital Authority or for the purpose of teaching or hospital work in the Department of Medicine of the University of Hong Kong or The Chinese University of Hong Kong may be deemed to be registered.

While the law is intended to serve the community as a whole, it has become apparent

that there are certain groups whose needs should be served but those needs are either being met at the expense of other services or not being met adequately. One such group is the well over 50 000 Vietnamese migrants confined to remote camps and centres currently served by the Department of Health staff. Another are the various

non-English and non-Chinese-speaking ethnic groups in our community who live and work here and contribute to our society. In this connection, the Administration has received representations from the international business community through the International Business Committee, and from the Japanese Consul, to allow foreign doctors with currently unregistrable qualifications to serve foreign communities in Hong Kong.

Hong Kong, being a caring community, would surely not wish to ignore the need of these people for medical care. If locally registrable doctors cannot properly serve some groups, the Medical Council should be given suitable powers to ensure that such medical needs are met. For my part, I do not wish to fetter the Medical Council's ability to respond to the needs of all sectors of our community.

The Medical Registration (Amendment) Bill 1992 seeks to provide for limited The Medical Registration (Amendment) Bill 1992 seeks to provide for limited registration and to give the Medical Council discretion to permit doctors with acceptable overseas qualifications to practise here to meet specific community needs on specified conditions. Applications will be considered on the merits of each case individually. Limited registration will be granted for such purpose and period as the Council specifies.

The decision on whom to admit, and on what conditions, will rest entirely with the Medical Council. So as to maintain professional standards, the Council will be responsible for ensuring that limited registration is granted only to properly trained and duly qualified foreign doctors.

This amendment will not affect standards. It does not open the door to any q This amendment will not affect standards. It does not open the door to any quack or self-professed expert who wants to practise here. It will, however, enable us to admit those qualified practitioners whose special skills and experience can benefit our community.

Mr Deputy President, I move that the debate on this motion be now adjourned. Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.

NOISE CONTROL (AMENDMENT) BILL 1991

Resumption of debate on Second Reading which was moved on 11 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).

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

Resumption of debate on Second Reading which was moved on 15 January 1992 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).

STAMP DUTY (AMENDMENT) (NO. 4) BILL 1991

Resumption of debate on Second Reading which was moved on 4 December 1991 Question on Second Reading proposed.

MR EDWARD HO: Mr Deputy President, on 22 May last year, this Council carried a motion to take note of the public concern expressed over the speculation of pre-completed domestic units. Many Members have spoken on the prevalence of speculative activities in the uncompleted property market and asked the Government to put in place measures that would ensure that genuine home buyers would be able to buy a flat at a fair price and in a fair manner.

On 6 November following, the Financial Secretary announced in this Council the Government's intention to impose stamp duty on sale and purchase agreements of

property transactions as one of the measures to curb speculation. A Legislative Council ad hoc group was formed soon after to study the proposal having regard to the fact that timing would be of the essence in the legislative process. The ad hoc group was subsequently assigned the duty to scrutinize the Stamp Duty (Amendment) (No.4) Bill which was introduced into this Council on 4 December 1991.

The ad hoc group held a total of six meetings, including one before the publication of the Bill. It also set up a technical sub-group to study the technical aspects of the Bill and this sub-group held a total of four meetings. The ad hoc group invited submissions from various professional bodies and considered other representations received. Clarifications from the Administration on points of query and concern were also sought. I will not deal in detail with the views of individual organizations but I wish to record that their opinions have greatly facilitated the deliberations of the ad hoc group.

The Bill, as presently drafted, contains basically two sets of proposals, that is, anti-speculation measures dealing with sale and purchase agreements of property transactions, and anti-avoidance measures to catch transfers of shares of landholding companies which are, in essence, property transactions. In relation to its

anti-speculation objective, the Bill requires both vendor and purchaser to pay stamp duty, on an ad valorem sliding scale, on all sale and purchase agreements for residential property. This means that, in the case of a series of agreements in respect of the same property, the amount of duty payable will multiply. This will provide a disincentive for speculators. The Bill also takes the opportunity to close an existing tax avoidance loophole. In this respect, the landholding companies provisions seek to catch transfers of shares which are in essence property transactions, thus ensuring the proper level of duty. In view of the complexity and technicality of these latter provisions, the ad hoc group suggested at an early stage that the two sets of proposals be dealt with separately. I will leave it to my colleague the Honourable Marvin CHEUNG to give an account of how the conclusion to separate such provisions from the present Bill came about, but, very briefly, the ad hoc group is conscious of the need for a prompt decision on the Bill to make it a timely and effective instrument to combat speculative activities and does not wish to see it unnecessarily held up by technical details.

Mr Deputy President, I now turn to the other major issues which the ad hoc group has considered. These are the scope of the anti-speculation measures, the potential hardship that may be caused to the parties to a transaction by the imposition of stamp

duty on sale and purchase agreements and possible means of relief, the effect of unwritten sale agreements and agreements subject to contract, and the duration of the Bill.

Scope of anti-speculation measures

At its first meeting held in November 1991 prior to the publication of the Bill, the ad hoc group put to the Administration that the scope of anti-speculation measures to be introduced under the Stamp Duty Ordinance should be limited to the residential property sector where speculation was seen to be the most predominant. I am pleased that this point has been accepted by the Administration -- the present Bill provides that the liability to pay stamp duty on sale and purchase agreements is applicable only to residential properties.

The anti-speculation measures in the Bill seek to cover all residential properties. There is strong support within the ad hoc group for the imposition of stamp duty on sale and purchase agreements of uncompleted residential units. It is widely accepted that the speculative activities in this sector have distorted the market and measures are necessary to bring it to order.

The ad hoc group has considered with great care the case of coverage of completed residential units. Although there are no statistics to show the extent of speculation in completed properties, the Administration has provided a representative sample of developments showing that about 13% of assignments were sold through confirmors. In many cases, there were two or more confirmors which suggests that the property went through two or more speculators before being bought by the end-users. Furthermore, the ad hoc group took into account the Administration's view that in the absence of any regulation, speculators would quickly turn their attention to completed flats if that was where quick profits lay.

The group's main concern in regard to bringing completed flats within the Bill The group's main concern in regard to bringing completed flats within the Bill is the possible hardship which the parties to a transaction may encounter in case of a rescission of contract on valid grounds. The Bill provides for a refund of stamp duty on the ground of defective title but the group noted that there are many other reasons for a contract failing, such as the vendor holding imperfect but not defective title. To relieve such potential hardship to the parties concerned, the ad hoc group proposes that an escape clause be provided in the Bill to enable refund of stamp duty in fair and reasonable circumstances. My colleague the Honourable Moses CHENG will

elaborate on this when he moves the relevant Committee stage amendments.

The Administration has agreed to this proposal and has assured the ad hoc group The Administration has agreed to this proposal and has assured the ad hoc group that requests for remission or refund of stamp duty in cases of genuine abortive or aborted contracts will be handled speedily, efficiently and sympathetically to mitigate undue hardship to the parties involved. It has further clarified the position of parties buying a completed flat that the Bill in effect allows 14 days for completion of formal sale and purchase agreement and 30 days thereafter for completion of the assignment. This would in total give the parties 44 days to sort out potential problems. Furthermore, after discussion with the Administration, the ad hoc group is also satisfied that section 9 of the Ordinance which empowers the Commissioner of Inland Revenue to remit the whole or part of the penalty on late payment of stamp duty, would further alleviate possible difficulties for the parties involved.

Definition of residential and non-residential properties

The ad hoc group has sought clarification on the definition of "non-residential property" under clause 4 of the Bill and the classification of a composite building or a piece of land of unrestricted user for that purpose. According to the Administration, properties of which any part may be used for residential purposes, irrespective of whether they are actually used for those purposes, will be regarded as residential. The Administration further confirms that residential units and non-residential units of the same property can be covered in separate agreements. The group is satisfied with the explanation and assurance so given in this respect.

To summarize the position of the ad hoc group, I would say that having regard to the assurance given by the Administration and the inclusion of an escape clause to accommodate genuine abortive or aborted contracts, the majority of the ad hoc group supports the inclusion of completed residential properties within the Bill.

Unwritten sale agreements and agreements subject to contract

Under the proposed section 29B of clause 8 of the Bill, unwritten sale agreements are required to be reduced to writing so that they become chargeable to stamp duty. The ad hoc group was concerned that this may be contrary to the long and well accepted principle of English Law that agreements concerning immovable property should be in writing and signed before they become enforceable.

The Administration has clarified that the intention is not to force people to reduce oral agreements to writing to make them enforceable. It would only be an offence to fail to reduce the agreement to writing for the purpose of defrauding the Government. Thus an oral agreement for sale of land can remain in oral form as long as the appropriate stamp duty is paid on it. In such a form, it is not enforceable by legal action but it is effective in law.

The Administration also confirms that the provisions of the Bill will not be The Administration also confirms that the provisions of the Bill will not be applicable to agreements which are subject to contract because they are not contracts per se.

Exemption from the Bill

The ad hoc group is concerned that the Bill requires stamp duty to be paid in The ad hoc group is concerned that the Bill requires stamp duty to be paid in situations where a buyer nominates a close relation, for example, spouse, parent/children, whose name has not been included in the sale and purchase agreement, to become a party to the transaction at the completion stage. After discussion, the Administration accepts that such nominations should not be taken as a chargeable agreement. My colleague the Honourable Mrs Miriam LAU will deal with this point in her Committee Stage amendments.

Duration of the Bill

At the meeting of the ad hoc group prior to the publication of the Bill, the g At the meeting of the ad hoc group prior to the publication of the Bill, the group made the point that the onus should be on the Government to justify continuation of the new measures beyond a temporary period. I am pleased to note that this concern is reflected in the Bill. The proposed section 29I of clause 8 provides that the anti-speculation measures shall expire at midnight on 31 December 1993 unless the Legislative Council, by resolution, amends that date.

In conclusion, Mr Deputy President, the Bill is a very technical one which has required dedication, expert knowledge, sensitivity to the possible hardship to genuine home-buyers and a practical approach to make it effective with reference to its purpose and intention. I believe that the group has conscientiously fulfilled its duties in all these respects on behalf of the people of Hong Kong.

Finally, I have been given to understand that in his speech this afternoon, the

Secretary for the Treasury will, on behalf of the Administration, positively respond to the ad hoc group's points which I have outlined, including in particular the rescission of contracts on valid grounds. With these remarks, I support the Bill subject to the amendments which will later be moved.

MR RONALD ARCULLI: Mr Deputy President, it is relevant and interesting to note that in a survey done very recently in Hong Kong one of the key concerns of the people today is our economy, or put another way, the continued economic success and growth. In countries like the United Kingdom and the United States their governments are at their wit's end trying to resuscitate economic growth, or perhaps even more to the point, to revive confidence in their housing markets. Interest rates in the United States are virtually at an all time low. The British Government has introduced stamp duty relief in an attempt to revive the dismal state of the housing market. President BUSH in his State of the Union Address today announced a proposal in an attempt to do the same. Retailers are having an extremely tough time, bankruptcies have almost become a way of life; what does this all mean? Just really two words: consumer

confidence, or should I say, the lack of it. Confidence once shaken cannot be revived easily; yet today we are tampering with that very confidence.

By purchasing their home, whether acquiring a new one or upgrading their exis By purchasing their home, whether acquiring a new one or upgrading their existing one or making a new or additional investment in a flat, the people of Hong Kong have given their vote of confidence, not just at the time of purchase but, much more importantly, a tremendous vote of confidence in Hong Kong's future. Yet what are we doing here today? We are intervening in our basic and successful free market economy by trying to dampen speculation. The Administration has blamed speculation on high property prices. How can that be so, when inflation has been falling and property prices rising? Is it not much more plausible that it is because of inflation that residential property prices have been rising?

We are told that the measures under the Bill are to dampen speculation; but is We are told that the measures under the Bill are to dampen speculation; but is it more likely that they are to dampen confidence? Mr Deputy President, as we all know, confidence is a fragile creature and it is impossible to tell where confidence ends and despair begins. And it is for this reason, amongst others, that we should not interfere but should let market forces play their traditional role.

Mr Deputy President, my comments apply not just to the residential property market but also to all areas of our economy. I would therefore like to put on record that

I would have much preferred that none of the measures should have been introduced. The Administration has nevertheless shown some flexibility and I hope it will continue to do so by having a second look at the landholding company concept and to reconsider whether it should go any further.

Mr Deputy President, for the reasons I have referred to I find I am unable to support the Bill and I shall abstain from voting.

MR PETER WONG: Mr Deputy President, I rise to speak on the resumption of the Second Reading of the Stamp Duty (Amendment) (No. 4) Bill 1991.

I approve of the charging of stamp duty at the contract stage as being a good revenue raiser, particularly at a time when the Government is seeking additional sources of revenue. However, as a matter of principle, stamp duty should apply to the transfers of beneficial interests of all immovable property situated in Hong Kong, and not only to residential properties. This charge should therefore be a long-term feature and not one that should expire in December 1993.

Tax legislation should be designed simply to raise revenue and not to achieve the short-term social engineering objective such as curbing inflation and I am opposed to the use of complex tax legislation for righting what is perceived to be social ills.

On the other hand, I strongly believe that the legislation, to be effective in catching all beneficial transfers of Hong Kong real property, should apply to the transfer of shares in both Hong Kong and offshore landholding companies. However, the quarter-cooked draft legislation can only achieve a limited purpose of collecting duty where shares are transferred in Hong Kong companies.

The legislation with respect to landholding companies had been drafted too simplistically to achieve its purpose and is wide open to avoidance. If properties are transferred more readily and cheaply in the names of offshore companies rather than Hong Kong companies, then the Government is at risk of not only failing to collect significant amounts of duty under these new provisions, but also losing ancillary revenue as a result of a reduction in the number of Hong Kong companies which would need to be formed and maintained.

I take some comfort that the landholding provisions of the Bill have been excised but am troubled that the Government avows that this will be reintroduced at a later date. Apart from the more academic problem of whether this legislature can legislate for non-Hong Kong companies, experience elsewhere has shown that exceedingly lengthy and complex provisions are necessary to stand any chance of success. This will then run counter to Hong Kong's simple taxation policy.

So it is with great reluctance that I support this Bill as it is about to be amended and strongly urge the Government to heed the technical advice of the Joint Liaison Committee on Taxation before embarking on the problems of the landholding companies.

MR MARVIN CHEUNG: Mr Deputy President, as mentioned in the speech of the Honourable Edward HO, the Bill contains basically two sets of proposals. Mr HO has given a very detailed account of the ad hoc group's deliberations on the anti-speculation measures. Here, I shall concentrate on the landholding companies provisions and how the ad hoc group's recommendation to defer these provisions came about.

The landholding companies provisions seek to close an existing tax avoidance loophole. That is for one party to set up a company, the main or only asset of which is immovable property, and then to transfer part or all of his interest in that property by selling shares in his company to another person or company. To discourage this form of avoidance, the Bill fixes the stamp duty to be paid on the sale or purchase of such shares at the higher conveyancing rate. This means that parties using this "landholding company" device would be liable to pay $27.50 for every $1,000 of the consideration, as opposed to the present level of $5.

The ad hoc group reached a preliminary view at an early stage that given the complex, technical and potentially controversial nature of these provisions, this part of the Bill would require very careful study. The possibility was suggested to the Administration in November 1991 of taking these provisions out of the Bill for separate study. Most of the professional bodies, in their submissions to the ad hoc group, also advocated this approach. The Administration was however concerned that the prevailing tendency to use private companies as a vehicle to transfer

interests in property, thus avoiding the levels of stamp duty payable on assignments, would be widely exploited by speculators to avoid duty on sale and purchase agreements. It was felt that failure to tackle this problem at the same time might leave open such a large potential loophole that it would render the Bill ineffective. Whilst

Members of the ad hoc group did not entirely agree that the anti-speculation measures would lead to a proliferation of landholding companies as purchasers would be cautious to buy properties through such companies in view of hidden liabilities that might be involved, the group appreciated the Administration's concern and proceeded to consider the Bill as a package. However, having considered the landholding companies provisions in greater detail in the light of technical queries raised by the

professional bodies, the ad hoc group is convinced that there is a strong case for separating these provisions from the Bill so that the anti- speculation measures would not be unnecessarily held up.

As a member of the accountancy profession, I am of the opinion and I have poi As a member of the accountancy profession, I am of the opinion and I have pointed out to the Administration in definitive terms that the anti-avoidance measures, as presently drafted, will have many implementation problems. To name just a few examples, under the Bill, stamp duty will only be levied on the net asset value of a company rather than the value of the property being transferred, and there is the possibility of circumvention by using foreign shelf companies. These and other technical problems will require very detailed study and, unless satisfactorily addressed, will render the legislation ineffective.

In view of the urgent need to have measures in place to tackle property speculation, the ad hoc group proposes that landholding company provisions be deleted from the present Bill. I must emphasize, however, that it is not the recommendation of the ad hoc group to dispense with the anti-avoidance measures altogether. The suggestion is that they be revived as a subject of a separate Bill which, I would urge, should be introduced into this Council as soon as practicable for in-depth study.

With these remarks and subject to the amendments I am going to move at the Committee stage to delete the landholding companies provisions, I support the Bill.

MR TIK CHI-YUEN (in Cantonese): Mr Deputy President, in recent years the soaring rate of inflation has been a cause for concern to the general public. Inflation has added to the burden, more than anybody else, of the grassroots people. Although inflation has shown some signs of abating in recent days, it is still hovering at a double digit level. Therefore the Administration and this Council should continue in their

efforts to halt inflation.

Soaring property prices and rentals have been one of the principal causes of

inflation. Frenetic speculative buying and selling of property not only worsens inflation but it has also put domestic units beyond the the reach of most intending home buyers, not to mention that it will cause long-term adverse effects on the overall economy in general and property developers in particular. Therefore there is a

pressing need to curb speculative buying and selling of property. In this regard the Administration has shown a positive attitude. We should therefore support the Administration in it effort to curb speculation in property. Although the banks have reduced the lending ratio on mortgages which will go some way towards dampening

speculation, the present amendments to the Stamp Duty Ordinance will have a further cooling effect. The original Bill provided for levying of stamp duty at an early stage on property transactions involving uncompleted flats, completed flats and property holding companies. Meeting Point is of the view that since speculative activities are focused on uncompleted flats and completed flats alike and either kind of flats an substitute the other as the sole target for speculators, restrictions on resale of uncompleted flats would encourage speculators to turn to the spot market. Therefore the restrictions as are proposed in the Bill to apply to uncompleted and completed flats are fitting and reasonable. As regards the proposal to plug a tax avoidance loophole by making property holding companies, upon a transfer of shares

therein, liable to the full rate of stamp duty as if it was property transfer transaction, a number of professional bodies have given valuable views on it highlighting certain technical problems. Meeting Point agrees that these technical problems do require some time to look into and sort out. Yet Meeting Point would like to stress that technical problems relating to details should not be taken as a reason for giving up the proposed amendment. We would like to ask the Administration to grasp the technical problems involved and to devise a set of foolproof anti-avoidance measures to tackle them, which should be submitted as soon as possible to this Council for scrutiny and endorsement so that speculation in property could be effectively halted.

Finally, I would call upon property developers and the Law Society to co-operate Finally, I would call upon property developers and the Law Society to co-operate with the Consumer Council in monitoring and investigating complaints made after this amendment Bill has taken effect. To ensure the effective and healthy operation of the property market, we would suggest that the Administration should consider

legislating to regulate the role, the responsibility and the quality of service of estate brokers.

Mr Deputy President, with these remarks, I support the Stamp Duty (Amendment) Bill.

MR JAMES TO (in Cantonese): Mr Deputy President, the purpose of introducing the Stamp Duty (Amendment) (No. 4) Bill 1991 seems to be two fold:

Firstly, it seeks to curb speculative activities in the property market, thus helping the genuine home buyers to by flats;

Secondly, it serves as a measures to curb inflation.

At present, stamp duty is payable only when an assignment deed is signed but not on a sale and purchase agreement. Speculators therefore care little about stamp duty. A property if often sold and resold many times before an actual assignment is concluded. As a result, the price of residential flats has been pushed up to a very great extent.

On the other hand, the sharp increase of property prices is directly associated with the problem of inflation. Inflation is measured on the Consumer Price Index A in which housing (mainly rental) takes up 20% of the weighted total. Sharp rise of property prices will result in an increase of rent, which in turn will accelerate the rate of inflation.

The Bill seeks to increase immediately the costs of engaging in speculative The Bill seeks to increase immediately the costs of engaging in speculative activities. It also reduces the capital of speculators by the immediate imposition of stamp duty.

The Government thinks that the Bill will "reduce the possible profit of speculators but not affect the real demand for residential units". We the United Democrats believe the initial result of the Bill is only to increase the costs borne by the speculators. But we doubt whether it will cut down the profit of speculators because it really depends on the supply and demand of the market to determine whether the accumulative stamp duty will eventually fall on the end-users after many transactions.

According to some analyses, the rising market trend in the past year is mainly attribute to speculative activities. We have reason to believe this Bill will increase the costs of the speculators to a certain extent and cut down the speculative activities in the property market.

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