ENG-1992-02-19 — Page 1

LegCo Hansard 創例局 定例局 立法局議事錄 All

1 HONG KONG LEGISLATIVE COUNCIL -- 19 February 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 19 February 1992 HONG KONG LEGISLATIVE COUNCIL -- 19 February 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 19 February 1992 1

OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 19 February 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 SIR DAVID ROBERT FORD, K.B.E., L.V.O., 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.

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 STEVEN POON KWOK-LIM

THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN

THE HONOURABLE JAMES TO KUN-SUN

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

DR THE HONOURABLE YEUNG SUM

THE HONOURABLE ZACHARY WONG WAI-YIN

ABSENT

DR THE HONOURABLE LEONG CHE-HUNG

THE HONOURABLE NG MING-YUM

THE HONOURABLE HOWARD YOUNG

IN ATTENDANCE

MR DAVID ALAN CHALLONER NENDICK, C.B.E., J.P. SECRETARY FOR MONETARY AFFAIRS

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

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

SECRETARY FOR SECURITY

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

MR PAUL LEUNG SAI-WAH, J.P.

SECRETARY FOR RECREATION AND CULTURE

MR PETER LAI HING-LING, J.P.

SECRETARY FOR CONSTITUTIONAL AFFAIRS

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 Health and Municipal Services (Public

Pleasure Grounds) (Amendment of Fourth

Schedule) Order 1992.................................................. Schedule) Order 1992.................................................. 13/92

Abattoirs (Urban Council) (Amendment)

Bylaw

1992................................................................. 14/92 1992................................................................. 14/92

Hawker (Urban Council) (Amendment)

Bylaw

1992................................................................. 15/92 1992................................................................. 15/92 Slaughterhouses (Urban Council) (Amendment)

Bylaw

1992................................................................. 16/92 1992................................................................. 16/92

Public Swimming Pools (Regional Council)

(Amendment) Bylaw 1992............................................ (Amendment) Bylaw 1992............................................ 17/92

Kowloon-Canton Railway (Restricted Area)

Notice

1992................................................................. 18/92 1992................................................................. 18/92

Waste Disposal (Appeal Board) Regulation............................ 19/92

Waste Disposal (Chemical Waste) (General)

Regulation.................................................................. 20/92

Waste Disposal (Forms and Fees for Licences)

Regulation.................................................................. Regulation.................................................................. 21/92

Consular Relations (Privileges and Immunities)

(Commonwealth Countries and Republic of

Ireland) (Amendment) Order 1992................................ 22/92 Ireland) (Amendment) Order 1992................................ 22/92

Registration of Persons (Invalidation of Old

Identity Cards) Order 1992........................................... Identity Cards) Order 1992........................................... 23/92

Merchant Shipping (Prevention of Oil Pollution)

Regulations (Exemption) Notice.................................... 24/92

Sessional Papers 1991-92

No. 44 -- No. 44 -- Hong Kong Examinations Authority 1991 Hong Kong Examinations Authority 1991 Financial Statements for the year ended Financial Statements for the year ended

31 August 1991 with Programme of

Activities 1.9.1990 - 31.8.1991

No. 45 -- No. 45 -- The Hong Kong Academy for Performing Arts The Hong Kong Academy for Performing Arts Annual Report July 1990 to June 1991

No. 46 -- No. 46 -- Occupational Safety and Health Council Occupational Safety and Health Council Annual Report 1 April 1990 - 31 March 1991

No. 47 -- No. 47 -- Trustee's Report on the Administration of Trustee's Report on the Administration of the Education Scholarships Fund for the year ended 31 August 1991

No. 48 -- No. 48 -- Report by The Commissioner of Police on the Report by The Commissioner of Police on the Administration of the Police Welfare Fund Administration of the Police Welfare Fund

for the period from 1 April 1989 to 31 March 1990

No. 49 -- No. 49 -- Report of the Public Accounts Committee Report of the Public Accounts Committee on the Report of the Director of Audit on the

Accounts of the Hong Kong Government for

the year ended 31 March 1991 and the year ended 31 March 1991 and

the results of value for money Audits

January 1992 January 1992

P.A.C. Report No. 17 P.A.C. Report No. 17

No. 50 -- No. 50 -- Revisions of the 1991-92 estimates approved Revisions of the 1991-92 estimates approved by the Urban Council during the third quarter

of the 1991-92 Financial year

No. 51 -- No. 51 -- Urban Council Es Urban Council Es Urban Council Estimates of Revenue and timates of Revenue and Expenditure for the Financial Year 1992-93

No. 52 -- No. 52 -- Regional Council Estimates of Revenue and Regional Council Estimates of Revenue and

Expenditure for the year ending 31 March 1993

DEPUTY PRESIDENT: In addition to the business on the Order Paper there will be a statement from the Financial Secretary under Standing Order 20 after Question Time.

Addresses by Members

The Hong Kong Academy for Performing Arts Annual Report July 1990 to June 1991

MRS MIRIAM LAU: Mr Deputy President, the 1990-91 Annual Report of the Hong Kong Academy for Performing Arts for the year ended 30 June 1991 is tabled before this Council today.

As a member of the Council of the Academy during the period covered by the report, it is my great pleasure to present this report to you and Members of this Council.

The Academy established two new courses during the year, one on opera in September 1990 and one on television production in February 1991. Opera is central to classical musical experience and is an essential part of a singer's training. The new opera course offers classes in acting, movement, language and repertoire as well as

fully-staged performances. The new television production course covers camera and lighting skills as well as production management, editing and sound, and the theory of broadcasting and visual communication. Graduates from this course will help to meet the pressing demand for trained manpower from the local television and film industries.

An even more important development was the completion over the year of course An even more important development was the completion over the year of course restructuring in preparation for the Academy's transition to a degree-granting institution. Subject to the accreditation by a visiting panel of international experts next month, the Academy will be admitting its first degree level students in September this year. The ability of the Academy to offer degrees will not only testify to its high standards of professional training, but will also help to attract students of the highest calibre.

The Academy is committed to achieving international artistic standards. To keep The Academy is committed to achieving international artistic standards. To keep abreast of such standards, master classes were held by visiting lecturers, and staff and students took part in several overseas seminars and performances.

Public performance forms an important part of the training for students. In the Public performance forms an important part of the training for students. In the period covered by the annual report, the students presented no less than 266 public performances before audiences exceeding 35 000 people. This experience stands them in good stead. Academy graduates now play a major role in Hong Kong's performing arts.

Mr Deputy President, I am most gratified that the Academy had another very successful year. I am confident that the Academy will successfully go through the accreditation process next month and will become a degree-granting institution this summer.

Report of the Public Accounts Committee on the Report of the Director of Audit on the Accounts of the Hong Kong Government for the year ended 31 March 1991 and the results of value for money Audits January 1992 P.A.C. Report No. 17

MR STEPHEN CHEONG: Mr Deputy President, the 17th Report of the Public Accounts Committee, tabled today, has been compiled following the Committee's investigations into matters raised in the Director of Audit's report on the accounts of the Hong Kong Government for the year ended 31 March 1991 and the results of value for money audits.

On behalf of the Committee, I would like to pay tribute to our former Chairman, Mr Peter POON, who led this Committee so well during his term of office. I am privileged to be appointed his successor and would also like to thank my fellow members for their contribution to the work of the Committee in producing the 17th Report.

Mr Deputy President, we are very sorry to learn from the newspapers of Committee Member Mr Stephen NG's illness. I am sure all Members would wish him a speedy recovery.

Mr Deputy President, the Committee has been encouraged by the continuing improvement in standards of financial and resources management within the Government,

and by the positive attitude adopted by the Administration towards the Director of Audit's recommendations in his Report No. 17 and towards the implementation of many of our Committee's recommendations in previous reports. There remain, nonetheless, some areas of concern to the Committee, which I would like to highlight.

First, the Committee are concerned at the long-standing problem of the overloading of goods vehicles which, apart from causing considerable damage to roadways, has also been identified as one of the major contributory factors in serious traffic accidents. This problem was first raised in the Director of Audit's Report No. 11, tabled in this Council on 27 April 1988, but the various measures so far taken have apparently failed to achieve their intended objective. It is understood that a review on this issue was completed by the Transport Department in September 1991, and that new proposals have been put forward, which are now under consideration within the Administration. I look forward to the early implementation of effective measures in curbing this problem.

Another issue concerns the low productivity of regular reviews under the Public Assistance Scheme. This issue was initially raised by the Director of Audit in his Report No. 14, tabled in this Council on 15 November 1989. On this item, we are finally pleased to note that the Administration has introduced new review cycles and manning scales, thereby realizing considerable savings on staff resources. We commend the Administration on such efforts and would like to suggest that there could be ample scope in other areas within the Government where savings can be identified without affecting its provision of services to the public. We would urge the Administration to continue its efforts to this end.

Returning to the Director of Audit's Report No. 17, I should mention that in the Returning to the Director of Audit's Report No. 17, I should mention that in the course of the Committee's investigations, we came across a case in the Registrar General's Department, where the department's estimate of future workload in the computerization of urban land registration records was unrealistically overruled by the resource branch. The result has been that the intended improvements in the standard of services to the public cannot be realized. We would like to urge Branches of the Administration to take full account of the operating department's expertise and experience in assessing future workload estimates and do not exercise the axe just for short-term objectives.

We would also like to express our concern that there seemed to be a tendency for the Administration to rely on the employment of consultants to undertake tasks for

which the Administration may have sufficient in-house expertise. We would like to see that prior to the employment of consultants, the Administration would first seriously explore the feasibility of undertaking such tasks in-house. The work done by the Architectural Services Department in relation to the Stage III extensions and improvements at Queen Mary Hospital should be an example for other government departments to study.

Whilst still on the Director of Audit's Report No. 17, I should perhaps also say Whilst still on the Director of Audit's Report No. 17, I should perhaps also say a few words about the issues concerning the building of the Hong Kong University of Science and Technology (HKUST). Naturally, this particular subject has attracted much media as well as public interest. In view of the complexity of the issues, which involved not only the Administration but also other parties including the HKUST

Council and the Royal Hong Kong Jockey Club, our Committee has yet to conclude the examination of evidence. Indeed, a third public hearing has been scheduled for next Monday, 24 February, to elicit further information. There is, therefore, nothing much on this subject that we have included in our Report No. 17, which is being tabled today. Instead, I shall report back to this Council our conclusions and

recommendations once we have finalized our deliberations on this issue.

Finally, Mr Deputy President, allow me to reiterate that the function of the Public Accounts Committee, as a committee, has never been vindictive or punitive; and it should not be so in the future. The Committee would look forward, drawing lessons from the past, to arriving at recommendations that would lead to a more

efficient and economic use of public funds in the future.

I would also like to take this opportunity not only to thank our Members but also I would also like to take this opportunity not only to thank our Members but also the staff of the Audit Department and the Secretariat for all their help in the compilation of this particular report.

Thank you, Mr Deputy President.

Oral answers to questions

Legislation inconsistent with the Hong Kong Bill of Rights

1. MR SIMON IP asked: The Hong Kong Bill of Rights Ordinance came into force on 8 1. MR SIMON IP asked: The Hong Kong Bill of Rights Ordinance came into force on 8 June 1991 with six specific pieces of legislation being exempted until 8 June 1992. Will the Government please inform this Council:

(a) what progress the Government is making to introduce legislation to amend the (a) what progress the Government is making to introduce legislation to amend the Ordinances subject to the freeze under the Bill of Rights Ordinance; and

(b) whether the Government has reviewed comprehensively the laws of Hong Kong (b) whether the Government has reviewed comprehensively the laws of Hong Kong to ascertain what laws may contravene the Bill of Rights Ordinance; and if so, what action will be taken and priorities set to amend those laws?

SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr Deputy President, of the six Ordinances subject to the one-year freeze period under the Bill of Rights Ordinance, amendments to two of them, that is, the Prevention of Bribery Ordinance and the Independent Commission Against Corruption Ordinance, have been gazetted and will be introduced into this Council on 26 February 1992.

We are finalizing our proposals to amend the Crimes Ordinance, the Societies We are finalizing our proposals to amend the Crimes Ordinance, the Societies Ordinance and the Immigration Ordinance to avoid inconsistency with the Bill of Rights Ordinance. Subject to the advice of the Executive Council, the relevant amendment Bills will be introduced into this Council before the freeze period expires on 8 June 1992.

As for the Police Force Ordinance, most of the provisions which may cause problems under the Bill of Rights are related to police powers of stop and search, and arrest and detention. The Law Reform Commission has carried out extensive examination of the areas involved and will publish its report soon. Given the importance of the subject, it is both prudent and necessary to await the report before formulating our position on the Ordinance. We will consider the report as a matter of urgency, with a view to introducing amending legislation into this Council as soon as possible thereafter.

As to the second part of Mr IP's question, the Administration had conducted a review of the existing legislation of Hong Kong where problem areas were thought to exist prior to the enactment of the Bill of Rights Ordinance. We concluded that while certain provisions of the law could be at risk of being found to be incompatible with the Bill of Rights, ultimately this was a matter which could only be decided one way or the other by the courts. We therefore adopted the cautious approach of seeking to freeze the operation of the Bill of Rights Ordinance only in respect of a small number of Ordinances containing provisions which, if repealed upon a finding of

inconsistency with the Bill of Rights, would create an unacceptable operational vacuum particularly in the sphere of law enforcement. Our priority now is therefore to complete our examination of those six Ordinances subject to the freeze, and to introduce amending legislation where this is thought necessary. Our approach for other legislation is to deal with cases of possible or determined incompatibility with the Bill of Rights Ordinance as they arise, whether as a result of our own review and research or of cases decided by the courts.

In recommending legislative amendments in response to the Bill of Rights, we should bear in mind that the Bill of Rights legislation is an entirely new area of law for Hong Kong and a local jurisprudence is only just beginning to develop. A cautious approach is therefore justified, at least until we have more local judicial precedents to guide us.

MR SIMON IP: Mr Deputy President, the Secretary, in answer to the second part of my question, said that the Administration had conducted a review of the existing legislation where problem areas were thought to exist. Would the Administration be willing to release the result of that review so that the public would be aware of the laws that may contravene the Bill of Rights? If not, would that not be a reason to fortify the call for the setting up of a Human Rights Commission to review the laws of Hong Kong?

SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr Deputy President, the review to which I referred earlier in my main reply was conducted, as I said, prior to the enactment of the Bill of Rights Ordinance. At the time, we concluded that, on the basis of our examination, there were certain areas of Hong Kong's Ordinances which might be -- and I stress might be -- incompatible with the Bill of Rights Ordinance. A list of those Ordinances which might be incompatible with the Bill of Rights was passed to the Convenor of the Legislative Council ad hoc group on the Bill of Rights Bill in May 1990; and I see no reason why Members of this Council cannot get a copy of that list if they show any interest.

MR MARTIN LEE: Mr Deputy President, will the Administration admit that what it claims to be a cautious approach is really an irresponsible approach in that the Administration wants to leave problematic areas to the courts rather than to comply

with the provisions of the Bill of Rights by ensuring that no existing law in Hong Kong would infringe its provisions?

SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr Deputy President, the cautious approach to which I have referred is of course, in our view, perfectly justified, having regard to the fact that the Bill of Rights is a new area of law in Hong Kong. As to the question of whether any one of our existing laws is incompatible with the Bill of Rights, it is a matter for the courts to decide. The Administration certainly can examine, and is indeed examining, some areas of our law to assess the risk of their being judged by the courts to be incompatible. This assessment together with our operational needs will be taken into account in deciding whether amending legislation should be introduced.

MISS EMILY LAU: Mr Deputy President, in his main reply to Mr IP's question, the Secretary has said that the Government's approach to legislation outside those six Ordinances covered by the freeze period is to deal with cases of incompatibility as they arise. Would the Government agree that such cases have indeed arisen given that the Official Secrets Act and the Public Order Ordinance were picked out as being incompatible with the Bill of Rights at the two United Nations Human Rights Committee hearings held in November 1987 and in March 1991; if so, what action will the Government take to deal with these two cases specifically?

SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr Deputy President, I gather that the reference was to the Public Order Ordinance and the Official Secrets Act. These two statutes have been included in the list which we passed to the ad hoc group in 1990. All the Ordinances on that list are now under examination, some of which have been dealt with already, as in the case of decriminalization of homosexuality; and there are other cases where we are considering introducing amending legislation. So the Government is certainly not ignoring those two Ordinances mentioned by Miss Emily LAU.

MR JIMMY McGREGOR: Mr Deputy President, since many people are worried about what appears to be an increase in violent crime and triad related crime, can the Government give an assurance that proposed changes to the Ordinances affecting police and ICAC

powers, brought about as a result of the Bill of Rights Ordinance, will not significantly reduce the efficiency of these law and order agencies and their ability to serve the community effectively?

SECRETARY FOR CONSTITUTIONAL AFFAIRS: Yes, Mr Deputy President. In considering the approach towards amending legislation, we certainly take into account the balance between the need to protect the individual's human rights as provided for by the Bill of Rights Ordinance and the need to ensure that law and order is maintained effectively which, certainly, would relate to the operations of the Police Force and the ICAC.

MR LEE WING TAT (in Cantonese): Mr Deputy President, in past years, some student groups paraded on the streets without a permit or the approval of the Commissioner of Police to demonstrate that the Public Order Ordinance contravenes the Bill of Rights. Will the Administration inform this Council if it would conduct a comprehensive review on the Public Order Ordinance; if not, why not?

SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr Deputy President, as the Public Order Ordinance falls under the policy responsibility of my colleague, the Secretary for Security, I think he would wish to answer that particular question.

SECRETARY FOR SECURITY: Mr Deputy President, we have no immediate proposals to amend the Public Order Ordinance.

MR JAMES TO (in Cantonese): Mr Deputy President, the Administration mentioned that there would be reviews and examinations within different branches and departments and naturally they would be based on the rulings of the courts. May I know if there is a timetable drawn up within each branch or department, and thus setting a deadline for its review?

SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr Deputy President, in examining the six Ordinances subject to the freeze under the Bill of Rights Ordinance, we do have a timing which we need to bear in mind. In respect of other Ordinances, it is very

hard to draw up any overall timetable, bearing in mind that different laws may have different degrees of complexity and therefore might require different timing and effort in looking at them. But certainly every branch or department of the Government is fully aware of the fact that this is one area which they very much would like to deal with as soon as practicable.

Children left unattended at home

2. MR HUI YIN-FAT asked: Will the Administration inform this Council what follow-up 2. MR HUI YIN-FAT asked: Will the Administration inform this Council what follow-up actions it proposes to take having regard to the already available public responses to the Consultation Paper on Measures to Prevent Children from being left Unattended at Home?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the three-month public consultation on "Measures to Prevent Children from Being Left Unattended at Home" ended on 31 December 1991. A total of 190 written submissions were received.

The comments and suggestions received were analyzed and incorporated in a report which was submitted to the Social Welfare Advisory Committee for discussion on 20 January this year.

On the basis of the recommendations of the Social Welfare Advisory Committee, the Administration intends to take the necessary follow-up actions:

(a) First, child car (a) First, child car First, child care and other support services will be expanded. In order to e and other support services will be expanded. In order to help parents care for their children, a target of 1 400 day nursery places for children between the ages of two and six has been set annually until demand is fully met. At the same time, day creches for children under two years of age will be expanded by phases, particularly in new towns, to cater for young families. The idea of work-based child care centres will be promoted among industrial and commercial employers. The after-school care programme and the occasional child care service will also be

expanded.

(b) The establishment of a social network of informal care and support provided (b) The establishment of a social network of informal care and support provided by families, relatives, friends and neighbours will be encouraged. The concept of mutual help will be promoted. The Administration will examine the feasibility of exempting mutual-help groups from registration under the Child Care Centres Ordinance

(Chapter 243) to facilitate their formation by mutual aid committees, parents' groups and local organizations. With the assistance of the Housing Authority, suitable premises are being identified for the establishment of occasional child care services on a self-financing and mutual-help basis.

(c) Furthermore, public education on responsible parenthood will be promot (c) Furthermore, public education on responsible parenthood will be promot Furthermore, public education on responsible parenthood will be promoted. The Social Welfare Department, in conjunction with non-governmental organizations, will promote home safety and responsible parenthood as part of their regular family life education programmes. They will continue to conduct publicity and educational activities at both the central and district levels to educate parents not to leave their children unattended at home. A case in point, Mr Deputy President, is a recent publication entitled "Do Not Leave Me Unattended".

Whilst at the moment we do not intend to enact a special piece of new legisla Whilst at the moment we do not intend to enact a special piece of new legislation to punish parents who leave their children unattended at home, nevertheless, we intend to review the existing legislation to see whether it can be strengthened to deter parents from habitually putting their children at risk by leaving them alone. We are keeping an open mind on future options.

MR HUI YIN-FAT: Mr Deputy President, referring to the last paragraph of her reply, could the Secretary for Health and Welfare kindly inform this Council when the review on existing legislation with the object of preventing parents from habitually leaving their children alone will be completed? Can the findings be made known to the public?

SECRETARY FOR HEALTH AND WELFARE: As regards the review, Mr Deputy President, we have already started the preliminary spadework; and depending on the legislative requirement and the legislative programme, we hope to complete the review as soon as possible, certainly within this year. As regards the second part of the question, since the review may involve a change of law, we will certainly make the process as open as we can.

MRS MIRIAM LAU: Mr Deputy President, bearing in mind that the unpopularity of the present occasional child care service is partly due to the inflexibility of hours of operation and the relatively high fee structure of the centres offering such services, will the Administration, as a matter of urgency, review these areas to make sure that the services offered will be more attractive?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the flexibility in terms of admission and charges has been reviewed and changes will be introduced. The flexible approach, requiring perhaps lower fees for admission, will be implemented next month, that is to say, from l March.

DR LAM KUI-CHUN: Mr Deputy President, would the Secretary for Health and Welfare inform this Council of the latest position of the organizations offering work-based child care centres, as mentioned in item (a) of the third paragraph of her answer?

SECRETARY FOR HEALTH AND WELFARE: The work-based model is in fact a very new approach and it is a very important approach. Indeed, in respect of this new model, the Hong Kong Bank has introduced it voluntarily. This innovative approach will in fact benefit the organization itself. For instance, the model will help reduce staff turnover; it will enhance the image of the workplace and encourage more women, and perhaps single-parents, to work. As far as I can gather, there is another hospital which is also considering the introduction of a work-based child care centre within the hospital's compound. We will keep an eye on this innovation which promises great success for the future.

MR HENRY TANG: Mr Deputy President, in item (a) of the third paragraph of her reply, the Secretary has said that the idea of work-based child care centres will be promoted among industrial and commercial employers. Since the present Buildings Regulations prohibit the establishment of any child care centre in industrial buildings, does it mean that there will be a relaxation of these Buildings Regulations so that young parents will be able to leave their small children in these day care centres whilst attending an industrial workplace?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the welfare of the child will come first. When we talk about a work-based child care centre it may not necessarily be at the place of work. It could be, for instance, in an adjoining area but sponsored by the employer. The child care centre need not necessarily be operated by the

employer. In the case of Hong Kong Bank, we believe that the management of the centre has been contracted out to a non-government organization; similarly for the proposed

hospital arrangement, the centre is going to be managed by a non-governmental organization. We feel that in allowing a place to be used as a child care centre the premises must be suitable for child caring; so there is no question of relaxing the rules to open the child care centre.

MR TIK CHI-YUEN (in Cantonese): Mr Deputy President, in paragraph 3(b) of her reply, the Secretary has mentioned that some organizations and mutual aid committees will be encouraged to establish child care services on a self-financing and mutual help basis. Could I ask the Administration how it will ensure the services provided by these organizations will be safe and up to standard?

SECRETARY FOR HEALTH AND WELFARE: The objective of mutual-help and certain new models of service really is a way of enhancing the social network. But in enhancing the links between people for self-help, the safety of the child would come first. So we hope that whilst people will be encouraged to volunteer for service, the standard of personnel requirments may be different but certainly not the standard of service. The safety of the child is uppermost in our minds.

MR EDWARD HO: Mr Deputy President, in order to promote a better understanding of responsible parenthood amongst young people before they become parents, will the Secretary inform this Council whether there are courses in parenthood in the school curriculum?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, regarding the education system, I cannot answer on behalf of the Secretary for Education and Manpower; but certainly in the Social Welfare Programme on Family Life Education, the question of responsible parenthood is a theme of education for the parents.

MRS PEGGY LAM (in Cantonese): Mr Deputy President, in paragraph 3(a) of her reply, the Secretary has mentioned that there will be an annual increase of 1 400 day nursery places. Could I be informed of the date of commencement of the programme and the manpower and funding the Administration is prepared to devote to it?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I think Members will recall

that when the question of parents leaving their children unattended at home was debated in this Council on 18 December, I said that the fund for nursery and creche services was $119.6 million for the current year and that there would be an increase of $10.5 million to some $130.1 million the following year for such services. That includes provision for 1 400 additional day nursery places; additional day nursery places will be provided every year until the demand is fully met. This position remains the same.

MR MAN SAI-CHEONG: Mr Deputy President, will the Government consider adequate provision of child care centres as a policy measure and a long-term programme in the context of the economic emergence of women in the local labour market?

SECRETARY FOR HEALTH AND WELFARE: Yes, Mr Deputy President.

DR YEUNG-SUM (in Cantonese): Mr Deputy President, we are glad to hear that the Administration presently has no intention to legislate against parents leaving their children unattended at home. Women's groups will also be relieved to learn that. But in the long term, will the Administration consider using tax concession as an incentive to encourage some employers to provide child care services to their workers? For example, by providing child care services to their workers, employers will be granted some tax concessions, so that more women can join the workforce and at the same time their children will be looked after.

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the Honourable YEUNG Sum's question consists of two parts: first, whether the Government would encourage employers to contribute to child care services; second, if I understand it correctly, whether these employers would be granted tax concessions. As regards the first part of the question, employer participation has been recognized in the White Paper on Social Welfare Policy to be a new direction worth pursuing. That is to say, it is very compatible with the policy of encouraging society to participate; employers being part of society are welcome to participate and indeed should be encouraged to do so. We will provide all the necessary infrastructural and advisory help. This participation scheme in fact helps enhance the image of the employer; it also helps retain staff, reduce absenteeism and staff turnover. There are many models, for

instance, the consortium model where small industries can group together and use a common service provided perhaps by non-governmental organizations. These child care centres may not necessarily be in workplaces; they may be in residential areas, and the service may be sponsored or paid for by the employers.

As regards tax concessions, without wishing to trespass into the sacred ground of the Financial Secretary, I think the concept of tax concessions, as an incentive to employers, is incompatible with the simplicity of Hong Kong's tax system. (I say this because I have previously served my apprenticeship in the Treasury, so to speak, for seven years.) Hong Kong's tax system and the simplicity of the tax structure would be rendered very complicated if we were to grant tax concessions. Tax

concessions are neither simple to administer, nor indeed equitable within the Hong Kong system; but I must admit I speak without wishing to trespass into the sacred grounds of the Financial Secretary.

MR FRED LI (in Cantonese): Mr Deputy President, could the Secretary inform this Council of any concrete plan to implement the phased expansion of nursery services (which have been freezed for years)? How many additional nursery places will be provided annually and which districts in fact do "new towns" refer to?

SECRETARY FOR HEALTH AND WELFARE: Day creche services for children under two years of age, as different from child care centres for children between the age of two and six, will be expanded by phases, as I said, in the new towns, particularly I believe in places like Tuen Mun where there are many single-parent and young families. This expansion of service is in fact going to help the low income families with social needs, and other young families who may choose to use the service when the mothers take up employment. We hope to implement this new policy which requires some extended look into the Fee Assistance Scheme. At present the Fee Assistance Scheme, which is a scheme to help low income families with social needs according to a sliding scale commensurate with the ability to pay, applies to day care centres; but we hope to work out a way whereby this scheme can be extended to day creche as well. It is very difficult to assess the demand for day creche because we have to rely very much on the individual family's response and inclination, but we hope that 250 new aided day creche places will be planned for each year.

REV FUNG CHI-WOOD (in Cantonese): Mr Deputy President, would the Secretary explain why on the one hand she mentioned in paragraph 4 of her main reply that the Administration at present does not intend to enact legislation to punish parents who leave their children unattended at home while on the other said that consideration is being given to amend the existing legislation to deter parents from so doing? May I know what in fact these legislations are and whether they are relating to punishing parents of unattended children? Furthermore, when will amendments be introduced? Shall we have to wait until sufficient child care services or facilities are available in the community before introducing these amendments?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, perhaps I should answer the last part first. There are indeed sufficient day care centres; but if the supply matched perfectly with the demand, there would hardly be any need for any change in the law. We need to look after the interests of the child; and, in my opinion, one tragedy to a child is already one too many. I do not think we should only act or be goaded into action by sad happenings that we read from the newspapers. I think we should always act in such a way that the welfare of the child will be taken into account first. We need to keep up the effort and take sustained vigilant action in the interest of the right of the child.

As regards the existing law, we have at present two Ordinances which deal with cases of children abandoned or exposed to danger or being permanently left out of the social system or being victims of wilful neglect. One of these two Ordinances is:

The Offences Against the Person Ordinance which deals with cases of children abandoned, exposed to danger and permanent injury to health, and children being the victims of wilful neglect.

The other Ordinance is:

The Protection of Women and Juveniles Ordinance which provides for care and protection of children exposed to physical danger.

The question is whether physical danger should be the sole criterion; or should we include also psychological danger? At present, these two Ordinances provide for legal action. However, in considering whether or not to take legal action, the act would have to be viewed in the overall context of the child's general care and

well-being. Prosecutions or the making of a Child Care and Protection Order will seldom, if ever, be undertaken solely on the ground of a child being left unattended at home occasionally.

So the idea is whether we can expand the law in order to help the mother or p So the idea is whether we can expand the law in order to help the mother or perhaps even the father at home. We hope to facilitate a situation whereby if we detect certain children being perpetually or habitually left at home, assistance can be offered to the parents to find child care places for them. The idea is not so much to punish the parents as to educate them not to leave their children at home without seeking help.

MR PETER WONG: Mr Deputy President, will the Secretary confirm whether resources such as the capital cost of establishing suitable premises will be made available in 1992-93 for mutual help? Or will the parents, some of whom have handicapped children waiting for vacancies in training centres, still be left to their own devices, yet again?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, it is a very wide and open ended question. I cannot confirm anything without knowing the actual figure. Since we are talking about capital provision, it is really up to the Lotteries Fund Committee to allocate money when Lotteries Fund applications are made. Capital provisions are normally funded through the Lotteries Fund by the Director of Social Welfare.

Return of Hong Kong citizens for medical treatment

3. MR STEVEN POON asked: Given that a large number of Hong Kon 3. MR STEVEN POON asked: Given that a large number of Hong Kon MR STEVEN POON asked: Given that a large number of Hong Kong people work in g people work in Guangdong area, will the Administration inform this Council:

(a) whether there are emergency arrangements to return Hong Kong citizens (a) whether there are emergency arrangements to return Hong Kong citizens to the territory for medical treatment; and if so, what is the average time taken to return a Hong Kong citizen in case of emergency from, say, Dongguan County, Guangdong Province to Queen Elizabeth Hospital;

(b) of the number of cases requiring such emergency arrangements in the past five (b) of the number of cases requiring such emergency arrangements in the past five years; and

(c) whether any improvements to the arrangements a (c) whether any improvements to the arrangements a whether any improvements to the arrangements are necessary? re necessary?

SECRETARY FOR SECURITY: Mr Deputy President, the Hong Kong Government has no standing arrangements for the return of Hong Kong citizens from outside the territory for medical treatment. Such arrangements fall outside our responsibility. I am, however, aware that some private companies operating in China have their own arrangements for transferring their staff to Hong Kong for emergency treatment. Also some medical insurance policies offer repatriation as a benefit.

The Hong Kong Government's responsibility is to provide health care services to The Hong Kong Government's responsibility is to provide health care services to people within its borders. Therefore, if any person arrives in Hong Kong needing emergency care, an ambulance will be called to transfer that person to hospital. If the Fire Services Department (FSD) is given advance warning, an ambulance can be made ready at the point of entry to receive the patient.

On average the time taken to transport patients from the border, airport, helipads or ferry piers to the Accident and Emergency Department of the nearest public hospital is from 10 to 20 minutes, depending on the point of entry.

No record has been kept of the number of cases requiring emergency transfers to hospitals from Immigration Control Points. Therefore I cannot provide statistics covering the past five years. However, I have been able to ascertain that, since October 1991, a total of 105 cases involving 112 patients were conveyed by FSD

ambulances from the border to various hospitals. No similar statistics are available for other points of entry.

The existing arrangements are satisfactory and improvements are not considered necessary.

MR STEVEN POON: Mr Deputy President, there are many Hong Kong citizens working as managers, engineers and truck-drivers in the Pearl River Delta, and a large number of Hong Kong citizens travelling in package tours in Guangdong Province. When they have an accident or when they are injured at work, they will be left in a place far away from home and will be treated by a medical system which is not familiar to them. This will be the time they need Hong Kong most. As indicated in the reply of the

Secretary for Security, some large private companies have arrangements with emergency services companies for their employees to be escorted or evacuated to Hong Kong under medical emergency situations. Will the Administration inform this Council whether the Government, or its agents such as the Trade Development Council, is prepared to consider making similar emergency services for general use by Hong Kong people working in the Pearl River Delta? Secondly, short of a formal arrangement, what channels are open to a Hong Kong citizen who wishes to ask for Hong Kong Government's assistance for his or her speedy return to the territory for emergency medical treatment after an accident or injury?

SECRETARY FOR SECURITY: Mr Deputy President, I cannot speak for the Trade Development Council; but the Hong Kong Government has no plans to extend its emergency services into China. I believe that for persons employed in China the prime responsibility must lie with their employers. In addition, in the case of serious accidents where persons need emergency treatment, it is probably more appropriate that they should receive such treatment initially in China until they are fit to return to Hong Kong. However, I should add that exceptionally the Hong Kong Government has been able to assist persons requiring repatriation from Guangdong Province for medical treatment. This is done only where, on medical advice and after discussion with the doctor

treating the patient in China, we are satisfied that a genuine emergency exists, that evacuation is both necessary and advisable, and that no other means of returning the patient to Hong Kong is feasible. I believe that in recent years there have been very few, perhaps a handful, of such cases.

PROF FELICE LIEH MAK: Can the Secretary for Security inform this Council when the Fire Services Department ambulances are asked to convey patients from the point of entry to a hospital whether the service will be exclusively for conveying patients to public hospitals; if not, will consideration be given to conveying a patient to a private hospital as requested by the patient or his doctors?

SECRETARY FOR SECURITY: Mr Deputy President, the Fire Services would take patients to a private hospital if that was requested, or alternatively to the nearest public hospital.

DR CONRAD LAM (in Cantonese): Mr Deputy President, will the Administration hold discussions with China to the effect that patients clearing through customs will have

the formalities gone through quickly so as to enable them to return to Hong Kong as soon as possible for medical treatment?

SECRETARY FOR SECURITY: Mr Deputy President, certainly where patients arrive in Hong Kong in clear need of quick or emergency treatment, immigration formalities here are gone through very quickly, or even in some cases dispensed with for the present.

MR PETER WONG: Mr Deputy President, does the Secretary consider that it is the Government's duty to forewarn Hong Kong residents who work in or visit Guangdong Province that they would be well advised to make prior arrangements for repatriation in case of need for medical treatment?

SECRETARY FOR SECURITY: Mr Deputy President, I believe that responsibility for employees is primarily that of the employers, though clearly I expect that recent cases and recent publicity will have made people working in China more aware of the need to make these arrangements.

Written answers to questions

Law Reform Commission report on the Intestates' Estates Ordinance, Wills Ordinance and Deceased's Family Maintenance Ordinance

4. MRS ELSIE TU asked: Will the Government inform this Council what action has been 4. MRS ELSIE TU asked: Will the Government inform this Council what action has been taken, or when action will be taken, on the report made by the Law Reform Commission in May 1990 concerning the Intestates' Estates Ordinance, the Wills Ordinance and the Deceased's Family Maintenance Ordinance?

SECRETARY FOR HOME AFFAIRS: Mr Deputy President, the report by the Law Reform Commission concerning the Intestates' Estates Ordinance, the Wills Ordinance and the Deceased's Family Maintenance Ordinance contains about 70 recommendations to modernize certain aspects of family law.

Following its publication in May 1990 the Attorney General sought views from Following its publication in May 1990 the Attorney General sought views from

relevant policy Secretaries on the Report's recommendations. In the light of the views received, substantial work has already been undertaken towards the implementation of the bulk of the recommendations in the Report. A number of recommendations were, however, found to be more complex in nature and require careful consideration of the extent to which they would be acceptable to the community.

The City and New Territories Administration have very recently assumed the responsibility for the carriage of the Report. We are considering how best to take the legislative exercise forward.

Fund allocation to Colleges of Education

5. MR CHEUNG MAN-KWO 5. MR CHEUNG MAN-KWO MR CHEUNG MAN-KWONG asked: Regarding the allocation of funds to Colleges of NG asked: Regarding the allocation of funds to Colleges of Education in each of the past five years, will the Government inform this Council of the following:

(a) the amount of funds allocated and their respective shares of the total bu (a) the amount of funds allocated and their respective shares of the total budget for education; and

(b) the respective amounts and percentages of funds used on improving college (b) the respective amounts and percentages of funds used on improving college facilities and settling staff costs?

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

(a) The expenditu (a) The expenditu The expenditure on the four Colleges of Education under the Education re on the four Colleges of Education under the Education Department in each of the past five years, in absolute terms and as a percentage of total actual expenditure on the education programme area as a whole (that is, including universities and polytechnics, technical education and industrial training and schools education) was:

1986-87 1987-88 1986-87 1987-88 1987-88 1988-89 1988-89 1988-89 1989-90 1989-90 1989-90 1990-91 1990-91

Actual

expenditure

($M) 89.59 ($M) 89.59 101.14 113.95 136.26 156.72

% of total 1.1% % of total 1.1% 1.1% 1% 1% 1%

actual expen

diture on

education

programme area

(b) Within the expenditure shown under (a) above, the amounts and percentages (b) Within the expenditure shown under (a) above, the amounts and percentages used for improving college facilities and settling staff costs respectively were:

1986-87 1987-88 1986-87 1987-88 1987-88 1988-89 1988-89 1988-89 1989-90 1989-90 1989-90 1990-91 1990-91

Actual 5.30 Actual 5.30 7.90 9.67 14.25 14.42

expenditure (5 expenditure (5.9%) (7.8%) (8.5%) (10.5%) (8.5%) (10.5%) (10.5%) (9.2%)

on improving

college

facilities

($M and %)

Staff costs 81.84 Staff costs 81.84 90.53 101.20 118.94 139.33

($M and %) (91.4%) ($M and %) (91.4%) (91.4%) (89.5%) (89.5%) (89.5%) (88.8%) (88.8%) (88.8%) (87.3%) (87.3%) (87.3%) (88.9%) (88.9%)

The balances ($2.45M or 2.7% in 1986-87, $2.71M or 2.7% in 1987-88, and so on) were spent on other recurrent charges such as electricity and consumables.

Flushing water to culture live sea fish

6. DR CONRAD LAM asked: Regarding the complaint that many restaurants are using 6. DR CONRAD LAM asked: Regarding the complaint that many restaurants are using flushing water to culture their live sea fishes, will the Government inform this Council:

(a) whether investigation has been made into this alleged practice; (a) whether investigation has been made into this alleged practice; (b) whether there is legislation to prevent such a practice; (b) whether there is legislation to prevent such a practice;

(c) whether there is evidence that such practice is likely to put the consumers (c) whether there is evidence that such practice is likely to put the consumers whether there is evidence that such practice is likely to put the consumers'

health at risk; and

(d) if so, what measures the Government will take to protect the health of the (d) if so, what measures the Government will take to protect the health of the general public.

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the answer to the four-part question is as follows, seriatim:

(a) Yes, investi (a) Yes, investi Yes, investigation has been made into the alleged practice of flushing water gation has been made into the alleged practice of flushing water being used in restaurants to keep sea fishes. In a recent survey conducted by the Urban Services Department, a very small number of restaurant operators admitted that sea water was sometimes drawn in this way. However, this has not been confirmed or observed during restaurant inspections.

(b) There is no legislation which specifically prohibits the use of flushing (b) There is no legislation which specifically prohibits the use of flushing water for keeping live sea fish in restaurants. However, provision does exist in both the Food Business (Urban Council) By-laws and the Food Business (Regional Council) By-laws for persons engaged in any food business, including restaurants, to take all necessary steps to protect the food from risk of contamination.

(c) There is (c) There is There is no evidence of the consumers' health being put at risk. The no evidence of the consumers' health being put at risk. The Department of Health has not received any report of food poisoning relating to the consumption of fishes kept in flushing or any other type of water. Furthermore, the whole process of sea fish dishes preparation, including cleaning by fresh tap water, degutting and cooking, should eliminate the risk of bacterial contamination.

(d) In the interest of public safety, the Urban Services Department and Regional (d) In the interest of public safety, the Urban Services Department and Regional Services Department conduct regular inspections of restaurants to ensure a high standard of hygienic practices in restaurants. They also collaborate with the Department of Health in organizing regular health education programmes for persons engaged in the food business. The operators may also be prosecuted if the food they serve is found to be contaminated.

Centralized primary schools

7. MR GILBERT LEUNG asked: With regard to the setting up of centralized primary 7. MR GILBERT LEUNG asked: With regard to the setting up of centralized primary schools by regrouping the village schools scattered in rural areas which began in

the early 80's, will the Government inform this Council:

(a) of the number of centralized primary schools throughout the territory; (a) of the number of centralized primary schools throughout the territory;

(b) whether these existing centralized primary schools can achieve the (b) whether these existing centralized primary schools can achieve the objectives set by the Government; if not, what difficulties are involved; and

(c) whether the Government has any plan to set up more centralized primary sc (c) whether the Government has any plan to set up more centralized primary schools; if not, what other measures will be taken to improve education services in rural areas?

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

(a) There are at present three centralized primary schools, namely, the Sai Kung (a) There are at present three centralized primary schools, namely, the Sai Kung Central Primary School, the Hang Hau Central Shing Hong Fong Memorial Primary School and the Sha Tau Kok Central Primary School.

(b) The objective of establishing centralized primary schools with standard (b) The objective of establishing centralized primary schools with standard facilities is to replace small rural schools which had less than six operating classes, lacked facilities and were educationally inefficient. All three centralized primary schools were founded by amalgamating a number of small rural schools and the objective of setting them up has been achieved.

(c) The Education Department will continue to set up centralized primary schools (c) The Education Department will continue to set up centralized primary schools where this is necessary and feasible. A fourth centralized primary school, to be located in Sai Kung Town, is being planned for completion in 1994. This will enable the phasing out of another five rural schools in Sai Kung.

Where it is not feasible to set up a centralized primary school due, for Where it is not feasible to set up a centralized primary school due, for example, to insufficient demand in remote areas, special assistance is provided to village schools to enhance the quality of the education they provide. The assistance includes increased recurrent and non-recurrent grants, preferential provision of resource materials and equipment, a monthly inducement allowance given to teachers working in remote village schools, and priority given to teachers in these schools to attend in-service re-training courses.

School places in Tseung Kwan O

8. MR GILB 8. MR GILB MR GILBERT LEUNG asked: Will the Government inform this Council: ERT LEUNG asked: Will the Government inform this Council:

(a) among the 100 000 residents in Tseung Kwan O, how many of them are children (a) among the 100 000 residents in Tseung Kwan O, how many of them are children estimated to have reached the age for attending primary or secondary schools respectively;

(b) how many places are (b) how many places are how many places are provided respectively by the existing seven primary provided respectively by the existing seven primary schools and two secondary schools in the above district and how many children living there have to attend schools in other districts; and

(c) how many new primary and secondary schools will be built in (c) how many new primary and secondary schools will be built in how many new primary and secondary schools will be built in Tseung Kwan O Tseung Kwan O in the next five years and according to the projected data, how many children will receive schooling within the district by then?

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

(a) The latest statistics show that there are 93 870 residents in Tseung Kwan (a) The latest statistics show that there are 93 870 residents in Tseung Kwan O, including Tiu Keng Leng. Of these, 12 580 (13.4%) are of primary school age, and 8 090 (8.6%) of secondary school age.

(b) 13 950 and 3 450 places respectively are avail (b) 13 950 and 3 450 places respectively are avail 13 950 and 3 450 places respectively are available in the eight primary and able in the eight primary and four secondary schools in Tseung Kwan O (including one primary school and two secondary schools in Tiu Keng Leng). There are enough places in the locality to accommodate all primary school age children. As regards secondary school age children, there is a theoretical shortfall of some 4 500 places within Tseung Kwan O. Of these, some may have opted to enter employment after Secondary 3. Some of those who have recently moved to Tseung Kwan O may have chosen to continue their studies in their old schools. Under existing policy, those who require places in Tseung Kwan O but who are not allocated with such places are accommodated as far as possible in nearby districts, such as Kwun Tong and Wong Tai Sin.

(c) In the next five (c) In the next five In the next five years, three new primary schools and two new secondary years, three new primary schools and two new secondary schools will be built in Tseung Kwan O. In addition, two existing secondary schools will be reprovisioned and expanded. These changes will enable an additional 5 850 primary and 3 570 secondary school age children to study within the district.

Taxi licences

9. MR JIMMY McGREGOR asked: Will the Government advise this Council: 9. MR JIMMY McGREGOR asked: Will the Government advise this Council:

(a) what were the average prices obtained for new taxi licences in each tender (a) what were the average prices obtained for new taxi licences in each tender exercise from 1984 to 1991;

(b) how it i (b) how it i how it is ensured that a controlled supply of taxi licences each year can s ensured that a controlled supply of taxi licences each year can meet the high demand;

(c) what is the effect of high taxi licence premium in relation to taxi fare (c) what is the effect of high taxi licence premium in relation to taxi fare increases and inflation; and

(d) how it is ensured that there are no speculative activi (d) how it is ensured that there are no speculative activi how it is ensured that there are no speculative activities and triad ties and triad manipulation in the purchase of new taxi licences?

SECRETARY FOR TRANSPORT: Mr Deputy President,

(a) The average tender premium for new taxi licences from 1984 to 1991 is given (a) The average tender premium for new taxi licences from 1984 to 1991 is given in the Annex.

(b) Our policy objective is to ensure a sati (b) Our policy objective is to ensure a sati Our policy objective is to ensure a satisfactory level of taxi services r sfactory level of taxi services rather than to meet the demand for taxi licences. With the continued improvement of and expansion in rail and bus services, the 1990 White Paper on Transport Policy reaffirmed the need to impose a quota on the number of new taxi licences, balancing the increasing demand for taxi services against what our roads can bear in terms of mobility. Accordingly, the Governor in Council has decided to issue no more than 400 urban taxi licences every two years and up to 100 New Territories taxi licences from 1991 to 1992, subject to regular reviews by the Council. To determine the actual number of licences to be issued each year, the Transport Department conducts annual roadside and taxi stand surveys on the adequacy of taxi services and takes into account the financial position of the taxi trade and the traffic management implications.

(c) The taxi licence premium is not taken into account in assessing taxi fare (c) The taxi licence premium is not taken into account in assessing taxi fare increase applications. Although a high level of premium may indirectly exert pressure on fares in the form of higher rental charged by the taxi owners, there is

a limit to the level of rental that taxi drivers are prepared to pay in relation to the expected profitability of taxi operation. Taxi fare increase applications are subject to the scrutiny of the Transport Advisory Committee and the approval of the Governor in Council to ensure that any revisions will be acceptable to the public. The relationship, if any, between taxi licence premium and inflation is not

straightforward. Taxi fares, rather than the taxi licence premium, is covered by the Consumer Price Index (CPI). Spending on taxi services is only a small percentage (0.8%) of the average expenditure of households covered by the CPI(A).

(d) A working group has r (d) A working group has r A working group has recently been established under the Transport ecently been established under the Transport Advisory Committee to conduct a fresh review on taxi policy including the present taxi licensing system. Any questions of speculative activities and alleged malpractices will also be examined to safeguard the public interest.

Annex

Average Tender Premium (1984-1991)

Year Urban taxis Year Urban taxis Urban taxis NT taxis NT taxis NT taxis Lantau taxis Lantau taxis

1984 $164,885 (July) 1984 $164,885 (July) $164,885 (July) $8,865 $27,884 (Mar) $27,884 (Mar)

$18,400 (Dec)

1985 $199,255 (Jan) 1985 $199,255 (Jan) $199,255 (Jan) $25,000 (Jan) $25,000 (Jan) $25,000 (Jan) --

$219,771 (June)

1986 $292,140 (Jan) 1986 $292,140 (Jan) $292,140 (Jan) -- --

$372,042 (June) $372,042 (June)

Average Tender Premium (1984-1991)

Year Urban taxis Year Urban taxis Urban taxis NT taxis NT taxis NT taxis Lantau taxis Lantau taxis

1987 $449,530 (Jan) 1987 $449,530 (Jan) $449,530 (Jan) -- --

$596,189 (July)

1988 $600,886 (Jan) 1988 $600,886 (Jan) $600,886 (Jan) -- --

$694,443 (July)

1989 $820,546 (July) 1989 $820,546 (July) $820,546 (July) $44,136 (July) $44,136 (July) $44,136 (July) --

1990 $909,562 (Nov) 1990 $909,562 (Nov) $909,562 (Nov) -- --

1991 $1,512,055 (Dec) 1991 $1,512,055 (Dec) $1,512,055 (Dec) -- --

Open nullahs

10. MR JAMES TO asked: Will the Government inform this Council: 10. MR JAMES TO asked: Will the Government inform this Council:

(a) how many open nullahs there are in Hong Kong, Kowloon and the New Territo (a) how many open nullahs there are in Hong Kong, Kowloon and the New Territories respectively;

(b) how many complaint cases on open nu (b) how many complaint cases on open nu how many complaint cases on open nullahs have been received over the past llahs have been received over the past three years;

(c) what measures and actions the Administration has taken to reduce the impact (c) what measures and actions the Administration has taken to reduce the impact of the offensive smell from these open nullahs;

(d) whether the Administration has any plan to deck all the open nullahs (d) whether the Administration has any plan to deck all the open nullahs whether the Administration has any plan to deck all the open nullahs in the territory; if so, whether there is a time schedule for its implementation;

(e) what remedial action will the Administration take regarding the present (e) what remedial action will the Administration take regarding the present illegal practice of discharging sewage into the open nullahs; and

(f) whether the Administrat (f) whether the Administrat whether the Administration will accord priority to abate the long standing ion will accord priority to abate the long standing problem of stinking smell and foul water arising from the open nullah at Tonkin Street in Cheung Sha Wan; if so, what specific measures will be taken?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President,

(a) There are 30 open nullahs in Hong Kong, 10 open nullahs in Kowloon and 39 (a) There are 30 open nullahs in Hong Kong, 10 open nullahs in Kowloon and 39 open nullahs in the New Territories.

(b) In the past three years, the Drainage Services Department has received 47 (b) In the past three years, the Drainage Services Department has received 47 complaints of offensive smells from open nullahs; of the 47 complaints, 27 were about nullahs in the New Territories, 12 about nullahs in Kowloon, and eight about nullahs in Hong Kong.

(c) Various government departments are responsible for mitigating smells in open (c) Various government departments are responsible for mitigating smells in open nullahs:

(i) The Drainage Se (i) The Drainage Se The Drainage Services Department and Territory Development Department are rvices Department and Territory Development Department are responsible for maintaining the nullahs to ensure that they are hydraulically effective. This is done by conducting regular inspections and implementing desilting and desludging programmes. In some cases more substantial works are required. For example, in Yuen Long an inflatable dam is being constructed across the downstream end of the main nullah to prevent polluted waters flowing back into the nullah and creating an offensive smell. In addition, a pumping station is being constructed to remove polluted flows from the upstream section of the nullah to a section downstream from the inflatable dam and this project is scheduled for completion in May 1992.

(ii) The Environmental Protection De (ii) The Environmental Protection De The Environmental Protection Department have engaged consultants to partment have engaged consultants to carry out Sewerage Master Plan Studies which will, in time, cover the whole territory. These studies will, inter alia, include recommendations for dry-weather-flow interception schemes to remove expedient connections of sewage to the nullahs and this will reduce the amount of sewage flowing into the open nullahs and hence the offensive smell.

On completion of these studies, first aid measures are implemented shortly afterwards, which achieve some limited and temporary improvement to the nullahs, whilst the recommended sewerage upgrading schemes are implemented in stages. Work has commenced for some of the schemes and all the major ones are expected to be

completed by 1999 if funds are made available. In addition, the Environmental Protection Department can take action under the Water Pollution Control Ordinance to stop illegal discharges of polluting water into nullahs.

(iii) The Regional Services Department and the Urban Services Department (iii) The Regional Services Department and the Urban Services Department attend to the regular removal of refuse and take measures against rodent infestation. (d) The Administration does not plan to deck all the open nullahs in the terr (d) The Administration does not plan to deck all the open nullahs in the territory. Existing open nullahs are essentially hydraulic structures for discharging

stormwater during rainstorms. Regular inspection and desilting programmes can be conducted more effectively and economically in an open nullah than in a decked nullah. Decking an open nullah is a costly civil engineering exercise which also makes it more difficult to enter the nullahs and carry out desilting work with mobile plant. Decking would also increase maintenance costs. In addition, decking could

contribute to the problem of offensive smells by helping the retention of hydrogen sulphide, a gas which is potentially dangerous to the public and maintenance staff, and corrosive to the structure. There is, however, a proposal to deck the Tonkin Street nullah in Cheung Sha Wan -- between Fuk Wing Street and Po On Road -- for road widening purposes as part of the Cheung Sha Wan North Comprehensive Traffic and Public Transport Priority Scheme. However, this project is of relatively low priority and is unlikely to be implemented in the near future.

(e) For nullahs located within a declared water control zone (WCZ), the (e) For nullahs located within a declared water control zone (WCZ), the Environmental Protection Department is given the statutory power under the Water Pollution Control Ordinance (WPCO) to take enforcement action against the illegal

dischargers. Out of 10 WCZs in the territory, six have been declared; they are Tolo Harbour, Southern, Junk Bay, Port Shelter, Deep Bay and Mirs Bay WCZs. The seventh, North Western WCZ, is scheduled for declaration in April 1992. After the declaration of a WCZ, it normally takes about two years to achieve full control on all discharges. There are already improvements in the water quality of some nullahs located in the declared WCZs, for example, Shing Mun River, Fo Tan Nullah, and so on.

In areas that the WPCO does not yet cover, the Government relies on the enforcement of lease conditions and the Buildings Ordinance to tackle the illegal discharges. When the source of an illegal discharge is traced, the Buildings Ordinance Office seeks to persuade the discharger to correct his drains or to install a waste water treatment plant. In Tsuen Wan, Kwai Chung and Kwun Tong districts, the Government has set up industrial building management co-ordinating committees to identify problems and resolve them by cultivating a self-help spirit among the owners and by co-ordinating government action.

EPD is also implementing the Livestock Waste Control Scheme under the Waste EPD is also implementing the Livestock Waste Control Scheme under the Waste Disposal Ordinance. This will reduce much of the pollution load to some of the nullahs. Full controls are already in force in the prohibition areas, that is, urban areas, and the Tolo Harbour catchment, Mui Wo and Anglers Beach environs.

(f) The Administration has continued to take several measures to abate the smell (f) The Administration has continued to take several measures to abate the smell

nuisance from the open nullah in Tonkin Street and the Sham Shui Po District Board was briefed on these measures at its 17th meeting on 21 December 1990. A further report on these measures was given to the Secretary General, OMELCO on 28 June 1991. The present position is that the smell from the Tonkin Street nullah is due to polluted water discharging into the nullah through expedient connections of foul water to stormwater drains within the catchment areas. The solution is to stop the discharge of foul water at source. In this respect, the North-West Kowloon Sewerage Master Plan Study has recently been completed and the Study has recommended a Dry

Weather-Flow Interception Scheme to collect the polluted dry-weather-flow before entering the nullah and to divert it to the foul sewerage system. This Dry Weather-Flow Interception Scheme is presently being implemented by the Territory Development Department in association with their West Kowloon Reclamation project, which is scheduled for completion before 1996. Action under the WPCO against discharges into this nullah will also be possible when the Victoria Harbour Water Control Zone is declared in about 1995.

Complaints against police

11. REV FUNG CHI-WOOD asked: Will the Government inform this Council: 11. REV FUNG CHI-WOOD asked: Will the Government inform this Council:

(a) since both the targets of complaints and the staff of the Complaint Against (a) since both the targets of complaints and the staff of the Complaint Against Police Office (CAPO) are police officers, what measures are available within the Police Force to ensure that the investigation of complaints will be conducted in a fair and unbiased manner; and

(b) whether any appeal channels are available if the public are not satisfied (b) whether any appeal channels are available if the public are not satisfied with the decisions of the CAPO?

SECRETARY FOR SECURITY: Mr Deputy President, there are a number of measures to ensure impartial investigations of complaints against the Police.

Firstly, CAPO officers belong to the Complaints and Internal Investigations Branch of the force, which is separate from the rest of the force. The fact that CAPO officers are part of a different chain of command ensures their objectivity in dealing with complaints.

Secondly, a comprehensive set of procedures for dealing with various categories of complaints have been issued for CAPO to follow. In the case of complaints involving serious allegations against police officers, advice from the Attorney General's Chambers will be sought after the investigation is completed on the follow-up action to be taken.

Thirdly, the results of CAPO investigations, together with all relevant documents such as statements of witnesses, are passed to the Police Complaints Committee (PCC), an independent statutory body, for examination. The PCC is appointed by the Governor to monitor, and where necessary to review, the investigation of complaints against police officers. If necessary, the PCC may request CAPO to re-investigate cases until they are satisfied with the investigation results.

A complainant is informed by the CAPO of the result of investigation only after A complainant is informed by the CAPO of the result of investigation only after this has been endorsed by the PCC. If he is not satisfied with the result, he may petition the Governor.

Annual reports of government departments, statutory or advisory bodies 12. MR FREDERICK FUNG ask 12. MR FREDERICK FUNG ask MR FREDERICK FUNG asked: Will the Government inform this Council: ed: Will the Government inform this Council:

(a) whether all government departments are required to prepare annual reports, (a) whether all government departments are required to prepare annual reports, and if not, why such reports are not required of some departments;

(b) of the circumstances under which statutory or advisory bo (b) of the circumstances under which statutory or advisory bo of the circumstances under which statutory or advisory bodies are required dies are required to prepare annual reports;

(c) whether there are guidelines for the preparation of these annual reports; (c) whether there are guidelines for the preparation of these annual reports;

(d) of the circumstances under which these annual reports have to be presented (d) of the circumstances under which these annual reports have to be presented to this Council, and whether they can be made available to members of the public for inspection or purchases?

CHIEF SECRETARY: Mr Deputy President,

(a) Some departments, such as the Audit Department, are required by law to pu (a) Some departments, such as the Audit Department, are required by law to publish

an annual report. Where there is no such statutory requirement, a Head of Department may decide at his/her discretion whether to produce an annual department report, taking into account the cost of producing the report and the extent of public interest in the information contained therein. About half of the government departments

produce an annual report.

(b) Some statutory bodies are required by their ordinances to publish an annual (b) Some statutory bodies are required by their ordinances to publish an annual report. Other statutory or advisory bodies may decide at their own discretion whether to publish an annual report.

(c) Annual reports whic (c) Annual reports whic Annual reports which are required to be produced by law have to comply with h are required to be produced by law have to comply with the relevant legal provisions. Those government departmental annual reports which are non-statutory in nature follow certain editorial guidelines to ensure presentational consistency. Annual reports prepared by statutory or advisory bodies, which are not required by law, follow their own guidelines.

(d) Most annual reports required to be produced by law are also required to be (d) Most annual reports required to be produced by law are also required to be tabled in the Legislative Council. All departmental annual reports where available and which are not required to be tabled in the Legislative Council are separately circulated to Members by the Clerk to the Legislative Council. Copies of all

departmental annual reports are made available in public libraries and tertiary institute libraries for public perusal. In addition, some of the more popular reports, such as the Director of Audit's report and the Commissioner of Banking's report, are on sale to members of the public. Where they are not, requests for copies by members of the public will be entertained, subject to availability of spare copies. The circulation of annual reports produced by statutory or advisory bodies is decided by the bodies themselves but it generally follows the circulation list as applied to departmental reports.

Government expenditures and subsidies on education

13. MR FREDERICK FUNG asked: Will the Government inform this Council of: 13. MR FREDERICK FUNG asked: Will the Government inform this Council of:

(a) the following expenditure incurred by the Government in the past five (a) the following expenditure incurred by the Government in the past five financial years and estimated for the next three financial years (in terms of dollars per student):

(i) the annual recurrent and non-recurrent expenditure on subsidizing students (i) the annual recurrent and non-recurrent expenditure on subsidizing students of each tertiary institution, with breakdown by qualification levels (for example, Diploma, Bachelor degree) and subjects (for example, engineering, medicine);

(ii) the annual recurrent expenditure on subsidizing secondary school (ii) the annual recurrent expenditure on subsidizing secondary school students, with breakdown by the category of schools (for example, government schools, subsidized schools);

(iii) the annual recurrent ex (iii) the annual recurrent ex the annual recurrent expenditure on subsidizing primary school students, penditure on subsidizing primary school students, with breakdown by the category of schools;

(iv) the annual recurrent expenditure on kindergartens and child care cent (iv) the annual recurrent expenditure on kindergartens and child care centres; and

(b) if the amount of subsidy is different for different institutes offering (b) if the amount of subsidy is different for different institutes offering similar courses at the same academic level, the reasons for the difference?

SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I would like first to deal with questions relating to the tertiary sector. There are currently seven institutions of higher education which are funded through the University and Polytechnic Grants Committee (UPGC): the University of Hong Kong (HKU); The Chinese University of Hong Kong (CUHK); The Hong Kong University of Science and Technology (HKUST); the Hong Kong Polytechnic (HKP); the City Polytechnic of Hong Kong (CPHK); the Hong Kong Baptist College (HKBC); and Lingnan College (LC). These institutions are autonomous bodies which have freedom to manage their internal affairs within the constraints of their own statutes. They are largely supported by public funds which are channelled through the UPGC in the form of recurrent and capital grants.

In the past five academic years, the UPGC had funding responsibility for five of the institutions referred to in paragraph one above (excluding HKUST and LC which came under the UPGC with effect from 1991-92). The annual recurrent grants disbursed to these five UPGC-funded institutions, expressed in terms of total amounts and of unit grants per full-time equivalent (fte) student, are set out at Annex A.

From the data shown in the Audited Annual Accounts and other information submitted by the five UPGC-funded institutions for the past triennium, the UPGC has derived the unit costs per fte student at these institutions. These are set out at Annex B. They are broken down by major faculties/departments. Any further breakdown of

the figures between different levels of studies (sub-degree, first-degree and postgraduate) and between different subjects (for example, Chinese, English, and so on) would be artificial, in view of the considerable overlapping of teachers and other supporting resources among programmes of different levels and different subjects. This means that a direct comparison of the unit costs of different institutions is difficult, if not impossible.

As shown in paragraph three above, the institutions do not have the same range of faculties/departments. Even for the same faculty/department, the unit cost varies from one institution to another. The apparent discrepancies are accounted for by a variety of factors, such as:

(a) different mix of subjects -- the range of subjects for a particular (a) different mix of subjects -- the range of subjects for a particular faculty/department varies from institution to institution (for example, Geography is under the Arts Faculty in HKU, but subsumed within the Social Science Faculty at CUHK). Moreover, the number of students taking the same subject varies in different institutions (for example, the number of students for English Language at CUHK is not the same as the number at HKU);

(b) dif (b) different levels of studies -- the mix of different levels of studies also ferent levels of studies -- the mix of different levels of studies also varies from institution to institution. A course at sub-degree level is cheaper than the same course at first-degree level which, in turn, is cheaper than the one at postgraduate level. This contributes to the relatively higher unit costs at the universities which focus on first-degree and postgraduate studies;

(c) different staffing costs -- the salary scales for university staff are (c) different staffing costs -- the salary scales for university staff are currently more favourable than those being applied to the Polytechnics and HKBC; and

(d) different staffing structures -- student: staff ratios and senior: junior (d) different staffing structures -- student: staff ratios and senior: junior staff ratios applied to the universities generally are more favourable, commensurate with their stronger emphases on higher degrees and research. At a micro-level, an older faculty/department usually has more "senior" staff remunerated at higher salary points than a younger faculty/department. The situation can be further complicated by the fact that newly-established faculties/departments have different requirements for front-end loading.

The above examples are intended to be illustrative, rather than exhaustive. This demonstrates that unit cost figures are affected by a variety of factors in different

ways. The UPGC does not assess the recurrent grant requirements on the basis of unit costs. Instead, the Committee adopts a zero-based assessment methodology which is based on a set of uniform resourcing factors for different levels of studies, modes of attendance and programme areas. In the interest of institutional autonomy, the Committee does not disclose its own resourcing factors to the institutions nor does it give guidance on factors to be used internally. Each institution exercises its own discretion in respect of internal allocation of resources (paragraph one above refers) and its unit costs for different programmes are bound to be different from those of other institutions.

The student number targets approved by the Government for the seven UPGC-funded institutions, for the current and the next three academic years, and the corresponding recurrent grants approved by the Finance Committee of the Legislative Council are set out at Annex C. In accordance with normal practice, the institutions will report on their actual expenditures and the distribution thereof after the close of each academic year. Based on the information provided by the institutions, the UPGC will then be able to work out the unit cost figures at major faculties/departments.

The capital grants released by the UPGC in the past five financial years to the The capital grants released by the UPGC in the past five financial years to the five UPGC-funded institutions are set out at Annex D. The capital grants are provided to the institutions to finance new building projects. When assessing the requirements, the UPGC takes into account the total space already made available in an institution, the lead time required to construct the new buildings and the Government's budgetary situation. In all cases, an institution has to start work and incur expenditure on new projects in advance of, and in anticipation of, planned student growth in the future years. Since capital expenditure of the institution is not tied to the student numbers in the same financial year, it is not practicable to derive unit cost per fte student. As many buildings are shared by different faculties/departments (for example, Library, Canteen, Computer Centre, and so on), it is also not possible for the institution to disaggregate its capital expenditure between different faculties/departments or between different types of students.

As regards recurrent expenditure for the schools sector, the unit costs for different types of schools at various levels are set out at Annex E.

The higher cost per student in government schools when compared to the aided sector is due mainly to the following reasons:

(a) Government teaching staff are, on average, more experienced and have reached (a) Government teaching staff are, on average, more experienced and have reached a higher salary point on the master pay scale; and

(b) Government teaching staff, who are civil servants, are eligible for fringe (b) Government teaching staff, who are civil servants, are eligible for fringe benefits, for example, pension, housing allowance, medical and education allowances, and the staff on cost for these benefits is higher than the average provident fund contribution made by Government for aided teachers.

The cost per student in Bought Place Schools is lower than in aided schools p The cost per student in Bought Place Schools is lower than in aided schools prior to 1991-92 due mainly to the lower salaries of staff employed in the former. The projected costs of such schools for 1992-93 and beyond include the phased implementation of various improvement measures, such as the conversion and equipping of special rooms, improvements to the teacher class ratio and teachers' promotion prospects. These explain the relatively large increases in the projected unit costs.

The amount of subsidy payable in respect of students attending Direct Subsidy The amount of subsidy payable in respect of students attending Direct Subsidy Scheme schools is based on a banding system. Schools charging fees not exceeding the standard fee of an aided school together with an additional fee up to the equivalent of two-thirds of the unit cost of an aided place would receive the full subsidy; these are termed Band I schools. Schools which charge additional fees equivalent to or more than one and five-twelfths of the unit cost of an aided place (in addition to the standard fees charged for aided schools) would receive one-quarter of the maximum subsidy (Band III schools).

The unit costs/subsidy for kindergartens and child care centres are strictly not comparable because the purpose for which funds are provided by Government to each type of institution is different. The Government subvention for kindergartens comprises the refund of rent and rates to non-profit making kindergartens and, since September 1990, fee remission for eligible kindergarten children, which replaced the previous fee assistance scheme. In 1991-92 the average fee remission for successful applicants is $1,893 per annum. The figures for Child Care Centres represent the weighted average of both day nurseries and creches. Day nurseries provide full day care, and Government provides fee assistance equivalent to $697 per month, whereas creches, which provide for babies between 0-2, receive government subvention covering 65% of the operating cost.

Annex A

Recurrent Grants Disbursed to the

UPGC-funded Institutions, 1986-87 to 1990-91

1986-87 1987-88 1986-87 1987-88 1987-88 1988-89 1988-89 1988-89 1989-90 1989-90 1989-90 1990-91

Total Unit Total Unit Total Unit Total Unit Total Unit Total Unit grant grant grant grant grant grant grant grant grant grant grant grant

$m $ $m $ $m $ $m $ $m $

HKU 578.794 HKU 578.794 578.794 79,113 638.873 638.873 638.873 83,535 714.247 714.247 714.247 91,289 836.814 836.814 836.814 105,725 105,725 105,725 971.994 971.994 120,475

CUHK 445.487 CUHK 445.487 445.487 67,621 493.367 71,193 581.003 581.003 581.003 80,271 698.439 698.439 698.439 90,648 840.302 840.302 101,192

HKP 514.858 HKP 514.858 514.858 39,911 553.782 553.782 553.782 41,795 646.554 646.554 646.554 46,787 746.033 746.033 746.033 52,649 858.059 858.059 60,756

CPHK 171.648 CPHK 171.648 171.648 58,503 202.273 202.273 202.273 55,846 313.650 313.650 313.650 65,439 455.847 455.847 455.847 70,938 601.141 601.141 73,507

HKBC 87.654 HKBC 87.654 37,717 102.430 102.430 102.430 39,872 142.895 52,323 181.561 181.561 181.561 60,299 224.114 224.114 68,223

Annex B

Unit costs for full-time equivalent student

at the UPGC-funded Institutions, 1988-89 to 1990-91

(A) HKU (A) HKU

1988-89 1989-90 1988-89 1989-90 1989-90 1990-91 1990-91

$ $ $

Arts 92,152 Arts 92,152 100,645 100,645 100,645 111,289 111,289

Education 100,198 Education 100,198 100,198 117,297 131,595 131,595

Social Sciences 83,497 Social Sciences 83,497 85,702 92,639

Law 85,587 Law 85,587 89,984 96,267

Science 123,560 Science 123,560 123,560 124,458 124,458 124,458 138,170 138,170

Engineering 98,628 Engineering 98,628 103,455 103,455 103,455 124,105 124,105

Architecture 114,822 Architecture 114,822 114,822 117,904 117,904 117,904 122,956 122,956

Medicine 251,273 Medicine 251,273 251,273 250,419 250,419 250,419 272,013 272,013 272,013 ---------- ---------- ---------- ---------- ---------- ---------- -------- -------- --

Overall Overall 121,791 121,791 121,791 131,412 131,412 131,412 144,274 144,274

====== ====== ====== ====== ======

(B) CUHK (B) CUHK

1988-89 1989-90 1988-89 1989-90 1989-90 1990-91 1990-91

$ $ $

Arts 69,519 Arts 69,519 70,018 77,048

Education 84,350 Education 84,350 90,323 95,298

Business Administration 59,804 Business Administration 59,804 65,281 73,357

Social Science 72,900 Social Science 72,900 76,391 83,559

Science 93, Science 93,806 82,492 109,961 109,961

Medicine 243,268 Medicine 243,268 243,268 279,165 279,165 279,165 291,722 291,722

Engineering - Engineering - - 103,979 103,979

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

Overall 89,560 Overall 89,560 95,955 104,319 104,319

====== ====== ====== ====== ======

(C) HKP (C) HKP

1988-89 1989-90 1988-89 1989-90 1989-90 1990-91 1990-91

$ $ $

Applied Science & Textiles 47,511 Applied Science & Textiles 47,511 59,716 69,823 Business & Information System - Business & Information System - - 61,531 Construction & Land Use 50,586 Construction & Land Use 50,586 60,091 60,680 Engineering 50,310 Engineering 50,310 58,972 60,842

Health & Social Studies 58,283 Health & Social Studies 58,283 68,457 68,346 Communication 65,091 Communication 65,091 76,089 80,691

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

Overall 52, Overall 52,356 64,420 67,958

====== ====== ====== ====== ======

(D) CPHK (D) CPHK

1988-89 1989-90 1988-89 1989-90 1989-90 1990-91 1990-91

$ $ $

Accountancy 55,579 Accountancy 55,579 74,978 73,764

Applied Linguistics - Applied Linguistics - 109,388 109,388 109,388 103,561 103,561

Applied Mathematics 87,973 Applied Mathematics 87,973 100,067 100,067 100,067 91,613 Applied Science 74,360 Applied Science 74,360 92,455 80,024

Applied Social Studies Applied Social Studies al Studies 88,775 125,291 125,291 125,291 136,050 136,050 Bldg. & Construction 60,344 Bldg. & Construction 60,344 75,755 74,709 Business & Management 58,355 Business & Management 58,355 68,806 70,029 Computer Studies 59,168 Computer Studies 59,168 81,099 73,108 Electronic Engineering 65,746 Electronic Engineering 65,746 76,896 78,383 Information Systems - Information Systems - - 390,362 390,362

Law 128,260 Law 128,260 128,260 115,800 101,694 101,694

Manufacturing Engineering 86,509 Manufacturing Engineering 86,509 83,329 77,060

Public & Social Admin. 54,781 Public & Social Admin. 54,781 74,154 71,562

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

Overall 66,474 Overall 66,474 84,809 83,880

====== ====== ====== ====== ======

(E) HKBC (E) HKBC

1988-89 1989-90 1988-89 1989-90 1989-90 1990-91 1990-91

$ $ $

Arts (incl. Pre-music) Arts (incl. Pre-music) 56,062 62,877 68,543

Business 50,886 Business 50,886 58,683 60,891

Science 74,921 Science 74,921 105,637 105,637 105,637 111,941 111,941

Social Sciences 53,006 Social Sciences 53,006 61,718 72,062

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

Overall 57,669 Overall 57,669 70,170 76,111

====== ====== ====== ====== ======

Annex C

Approved Student Number Targets and Recurrent Grants

for the UPGC-funded Institutions, 1991-92 to 1994-95

1991-92 1992-93 1991-92 1992-93 1992-93 1993-94 1993-94 1993-94 1994-95 1994-95

Numbers Grants Numbers Grants Numbers Numbers Numbers Grants Numbers Numbers Numbers Grants Numbers Numbers Numbers Grants (fte) $m (fte) $m (fte) $m (fte) $m (fte) $m

HKU 8 899 HKU 8 899 1,123.928 1,123.928 1,123.928 9 690 1,317.249 1,317.249 1,317.249 10 588 1,393.945 1,393.945 1,393.945 11 500 1,438.154

CUHK 9 038 CUHK 9 038 973.224 973.224 973.224 9 887 1,206.359 1,206.359 1,206.359 10 700 1,248.022 1,248.022 1,248.022 11 535 1,259.190

HKUST 700 HKUST 700 302.471 302.471 302.471 1 840 621.794 621.794 621.794 3 450 836.241 836.241 836.241 5 070 995.741 995.741 HKP 13 881 HKP 13 881 922.527 922.527 922.527 13 785 1,067.323 1,067.323 1,067.323 13 606 1,009.633 1,009.633 1,009.633 13 544 927.772 927.772 CPHK 9 074 CPHK 9 074 720.414 720.414 720.414 9 910 757.860 757.860 757.860 10 835 790.922 790.922 790.922 11 700 779.997 779.997 HKBC 3 306 HKBC 3 306 254.243 254.243 254.243 3 532 302.945 302.945 302.945 3 776 303.891 303.891 303.891 4 023 292.030 292.030 LC 1 350 LC 1 350 84.320 1 504 113.244 113.244 113.244 1 657 119.141 119.141 119.141 1 806 115.563 115.563

Earmarked 100.000 Earmarked 100.000 100.000 122.000 122.000 122.000 144.000 144.000 144.000 144.000 144.000

Research

Grant

UPGC 4.750 UPGC 4.750 20.255 277.205 277.205 277.205 595.524

Central

Allocation

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

Total 46 248 Total 46 248 4,485.877 4,485.877 4,485.877 50 148 5,529.029 5,529.029 5,529.029 54 612 6,123.000 6,123.000 6,123.000 59 178 6,547.971

====== ======== ====== ======== ======== ====== ======== ======== ======== ====== ======== ======== ======== ====== ======== ========

Annex D

Capital grants released to the

UPGC-funded Institutions, 1986-87 to 1990-91

1986-87 1987-88 1986-87 1987-88 1987-88 1988-89 1988-89 1988-89 1989-90 1989-90 1989-90 1990-91 1990-91

$m $m $m $m $m

HKU 58.184 HKU 58.184 77.900 87.345 79.965 101.900 101.900

CUHK 17.530 CUHK 17.530 21.003 19.664 25.007 47.410

HKP 53.128 HKP 53.128 32.530 97.140 120.857 120.857 120.857 110.579 110.579

CPHK 35.505 CPHK 35.505 141.231 141.231 141.231 385.236 385.236 385.236 302.832 302.832 302.832 83.881

HKBC 8.778 HKBC 8.778 13.631 76.883 139.914 139.914 139.914 88.299

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

Total 173.125 Total 173.125 173.125 286.295 286.295 286.295 666.268 666.268 666.268 668.575 668.575 668.575 432.069 432.069

====== ====== ====== ====== ====== ====== ======

Annex E

Unit Costs for Different Types of Schools

1986-87 1987-88 1986-87 1987-88 1987-88 1988-89 1988-89 1988-89 1989-90 1989-90 1989-90 1990-91 1990-91 1990-91 1991-92 1991-92 1991-92 1992-93 1992-93 1992-93 1993-94 1993-94 1993-94 1994-95 1994-95 $ $ $ $ $ $ $ $ $

SECONDARY

a) Government a) Government Government 11,879 12,902 14,553 17,179 19,654 21,361 21,410 21,465 21,439

secondary schools

b) Aided b) Aided secondary secondary secondary 7,160 7,704 8,717 10,383 12,396 13,610 13,500 13,458 13,336 13,458 13,336

schools

c) Private schools c) Private schools Private schools 4,164 5,332 6,515 8,617 10,713 13,144 14,316 14,839 15,594 14,839 15,594

with bought places

d) Schools under the d) Schools under the

Direct Subsidy Scheme

(DSS)

(i) Band I N.A. (i) Band I N.A. N.A. N.A. N.A. N.A. 13,596 13,487 13,445 13,323 13,445 13,323

(ii) Band II N.A. (ii) Band II N.A. N.A. N.A. N.A. N.A. 3,399 3,372 3,361 3,331 3,361 3,331

PRIMARY

a) Government a) Government Government 6,663 7,321 7,960 9,298 10,902 12,412 12,396 12,371 12,343

primary schools

b) Aided primary b) Aided primary Aided primary 4,898 5,208 5,805 6,843 8,034 8,974 8,955 8,922 8,887 8,922 8,887

schools

PRE-PRIMARY

a) Kindergartens a) Kindergartens Kindergartens 194 227 261 318 407 487 487 487 487

b) Child care centres b) Child care centres Child care centres 2,564 2,653 2,648 2,950 3,470 3,961 4,059 4,025 4,016 4,025 4,016

Note (1) Note (1) All figures are on a financial year basis. All figures are on a financial year basis.

(2) The figures for 1986- (2) The figures for 1986- The figures for 1986-87 to 1991-92 are actual figures while those for 199 87 to 1991-92 are actual figures while those for 1992-93 to 1994-95 are projected figures based on 1991-92 price levels.

Oxygen injection scheme

14. MR FRED LI asked: The Environmental Protection Department has recently revealed 14. MR FRED LI asked: The Environmental Protection Department has recently revealed that the oxygen injection scheme was not effective in bringing about improvement to the long-standing problem of water pollution in the Kowloon Bay Typhoon Shelter. Will the Government inform this Council:

(a) why public money should continue to be spent on implementing this s (a) why public money should continue to be spent on implementing this s why public money should continue to be spent on implementing this scheme although environmental protection bodies and district board members had expressed reservation about the effectiveness of the scheme;

(b) whether it has examined the causes for the failure of the scheme, and if so, (b) whether it has examined the causes for the failure of the scheme, and if so, whether the relevant details can be provided to this Council for information; and

(c) how much money has been spent on the oxygen injection scheme and when the (c) how much money has been spent on the oxygen injection scheme and when the scheme has ceased to operate?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President,

(a) The oxygen injection s (a) The oxygen injection s The oxygen injection scheme ceased operation in July 1991. cheme ceased operation in July 1991.

(b) Yes, Mr Deputy President. The Government has examined the causes, and I will (b) Yes, Mr Deputy President. The Government has examined the causes, and I will ensure that members of this Council receive the relevant details.

(c) The project cost of the oxygen injection scheme was $6.2 milli (c) The project cost of the oxygen injection scheme was $6.2 milli The project cost of the oxygen injection scheme was $6.2 million and the on and the annual recurrent cost was $4.3 million. The project ceased in July 1991.

Security installations in public housing blocks

15. MR FRED LI asked: Will the Government inform this Council: 15. MR FRED LI asked: Will the Government inform this Council:

(a) what factors the Housing Department had taken into a (a) what factors the Housing Department had taken into a what factors the Housing Department had taken into account in making its ccount in making its earlier decision to allocate funds for security installations in Trident II blocks;

(b) of the reasons for the recent decision to reject the allocation of funds for (b) of the reasons for the recent decision to reject the allocation of funds for security installations in Trident III and the linear rental blocks; and

(c) whether the Housing Department had taken into consideration the prevailing (c) whether the Housing Department had taken into consideration the prevailing crime statistics of the two types of blocks in making both decisions and if so, whether this Council can be provided with the statistics and a comparative analysis?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the security installations referred to in part (a) of the question are additional grilles. They were fitted not only to Trident II blocks but also to Trident III and Linear blocks at the same time in 1988. The reason for the improvement works to all these three block types was to enhance their safety and security.

The design of the subsequent Trident III and Linear blocks was improved, and

according to tenants' feedback, became no longer as prone to easy external access as before. The Housing Authority's recent decision not to allocate a further $15 million to install additional grilles in the latter two block types took into account the improved block design and the relatively low number of burglary cases there, as well as the fact that all windows are already provided with anti-burglary bars. It has, however, agreed to provide a standard drawing for tenants who may wish to install additional metal grilles outside the flower box at their own expense.

In reviewing the adequacy or otherwise of anti-burglary measures for these three block types, the Authority has taken account of the recorded burglary cases arising from entry through windows. Since 1986, there have been a total of 293 such cases in the 107 808 flats in the three block types, or 0.27% of the flats. 146 cases have been recorded in the 49 473 Trident III flats, or 0.30%. 52 cases in the 23 447 Linear flats, or 0.22%, and 95 cases in the 34 888 Trident II flats, or 0.27%. It can be seen that the crime rate is low overall and there is no significant difference between the block types.

Controls to limit energy loss through building fabric

16. DR SAMUEL WONG asked: Will the Government inform this Council of the progress 16. DR SAMUEL WONG asked: Will the Government inform this Council of the progress or result of the feasibility study that it commissioned about a year ago on the introduction of controls to limit energy loss through the building fabric?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, a consultant was commissioned to conduct a feasibility study on the Introduction of Overall Thermal Transfer Value (OTTV) to Air-Conditioned Buildings in Hong Kong. The study, which was confined to commercial and hotel buildings, was completed in August 1991, with the production of a Final Report, together with a Draft Code of Practice on Calculation of OTTV to Building Envelope in Hong Kong. A Government in-house study was also carried out to examine the proposed OTTV control values and produced a Study Report in November 1991 which outlines an OTTV implementation plan.

The Energy Efficiency Advisory Committee, which is the advisory committee set up to advise Government on measures to promote energy efficiency in Hong Kong, discussed the report findings recently and has recommended that:

(a) OTTV controls should be introduced for new commercial and hotel buildings (a) OTTV controls should be introduced for new commercial and hotel buildings in Hong Kong. A handbook on OTTV calculations should be published initially, for a reasonably lengthy trial period, to refine the OTTV standards before any statutory control is introduced.

(b) The proposed OTTV control should be introduced as a first step to improve (b) The proposed OTTV control should be introduced as a first step to improve energy efficiency in new buildings, with a view to the eventual establishment of a comprehensive building energy code, of which OTTV controls would form but a part.

The above proposals will be put to the Executive Council shortly.

Bus franchise on Hong Kong Island

17. MR LEE WING-TAT asked: In respect of the consultation being conducted by the 17. MR LEE WING-TAT asked: In respect of the consultation being conducted by the Transport Branch on the bus franchise on Hong Kong Island after August 1993, will the Government inform this Council of the following:

(a) the information that will be provided by the Government to the public; (a) the information that will be provided by the Government to the public; the manner in which the information will be provided; and the places where citizens can obtain such information;

(b) whether it is possible for the Government to extend the consultation period (b) whether it is possible for the Government to extend the consultation period to the end of March 1992; if not, please explain why;

(c) whether the Transport Branch will consult the district boards on Hong Kong (c) whether the Transport Branch will consult the district boards on Hong Kong Island; if not, please explain why; and

(d) whether the Transport Branch will conduct public hearings in various (d) whether the Transport Branch will conduct public hearings in various districts on Hong Kong Island to collect directly the views of citizens; if not, please explain why?

SECRETARY FOR TRANSPORT: Mr Deputy President,

(a) A paper givin (a) A paper givin A paper giving CMB's performance records since 1986 was sent to the district g CMB's performance records since 1986 was sent to the district boards of Hong Kong Island on 28 January 1992. Contents of the paper were also

disseminated through the printed media, including two press releases highlighting the key issues on which public views would be sought. The consultation exercise has been the subject of extensive media coverage both before and after the Lunar New Year holidays. As already reported in the press, members of the public who wish to obtain the paper on CMB's performance records or the text of CMB's profit control scheme may contact the Transport Branch either by telephone or by mail.

(b) It would not be desirable in this case to extend the consultation period. It would not be desirable in this case to extend the consultation period. To keep open the option for a further opening up of the bus market on Hong Kong Island through competitive tendering of routes, enough lead time must be allowed for tenders to be called and assessed as well as for prospective contenders to line up buses and support facilities. We must also allow reasonable time for negotiations with CMB.

(c) On 11 February, the Transport Advisory Committee (TAC) met the Chairmen of (c) On 11 February, the Transport Advisory Committee (TAC) met the Chairmen of the district boards and their Traffic and Transport Committees on Hong Kong Island to hear their views on the subject. The four district boards are now further collating local opinions, with a view to presenting them to the TAC before 25 February 1992.

(d) Many channels already exist for members of the public to express their vi (d) Many channels already exist for members of the public to express their views, including direct representations to Government/TAC, through the district boards or the mass media. Full and proper use of these channels is considered adequate, particularly in view of the time constraint as explained in (b) above.

Work safety at construction sites

18. MR STEVEN POON asked: In view of the importance 18. MR STEVEN POON asked: In view of the importance MR STEVEN POON asked: In view of the importance of work safety at construction of work safety at construction sites and the common practice of sub-contracting in Hong Kong, will the Government inform this Council:

(a) of the number of accidents at construction sites in the past five years and (a) of the number of accidents at construction sites in the past five years and of these, how many were of workers employed by sub-contractors of government projects;

(b) what measures are being taken to ensure that workers employed by sub- (b) what measures are being taken to ensure that workers employed by sub contractors including those employed by the second or third sub-contractors, are properly trained in work safety; and

(c) whether th (c) whether th whether the Government has a system to disqualify sub-contractors who have e Government has a system to disqualify sub-contractors who have

poor safety records from undertaking government projects?

SECRETARY FOR WORKS: Mr Deputy President, I will reply to the question in the three parts.

(a) The total number of accidents on c (a) The total number of accidents on c The total number of accidents on construction sites for the last five years onstruction sites for the last five years (those requiring absence of work of more than three days) was:

Year All Sites* Year All Sites* All Sites* Government Sites Government Sites

1986 20 970 (60) 1986 20 970 (60) 20 970 (60) not available not available

1987 23 846 (55) 1987 23 846 (55) 23 846 (55) not available not available

1988 27 125 (58) 1988 27 125 (58) 27 125 (58) not available not available

1989 26 399 (59) 1989 26 399 (59) 26 399 (59) 4 873 (16) 4 873 (16)

1990 25 138 (58) 1990 25 138 (58) 25 138 (58) 4 943 (21) 4 943 (21)

* Private + Government

Figures for 1991 are not yet available. Figures in brackets give the number of fatalities. For 1990 the most recent year for full statistics, Government's share of the total number of accidents was 20%. This compares with its share of total construction expenditure of 35%.

The Employees' Compensation Ordinance (Cap 282) holds the principal contractor liable for payment of compensation to employees of sub-contractors in respect of work-related accidents. This protects workers because of the better financial position of the main contractor. Accordingly government statistics do not make any distinction between employees of main and sub-contractors. However as background information approximately 90% of the construction workforce are employed by sub contractors.

(b) In section 6A of the Factories and Industrial Undertakings Ordinance (b) In section 6A of the Factories and Industrial Undertakings Ordinance administered by the Labour Department, it is the duty of every proprietor of an industrial undertaking, which includes construction sites, to provide training on his employees to ensure the health and safety at work. The Labour Department is actively promoting safety training on construction sites as one of the measures main contractors can contribute towards improving construction site safety. Such

training should cover not only workers directly employed by the principal contractor but all those working in the site. The Labour Department is considering prosecuting contractors for contravention of the requirement to provide safety training to workers on construction sites.

Apart from this statutory requirement to provide safety training for employees, the Industrial Safety Training Centre within the Factory Inspectorate Division of the Labour Department also conducts safety training course to assist employers in the complying with the requirement. During the past five years, a total of 985

construction related safety training courses has been held with 29 671 participants from various sectors of the construction industry.

(c) The Government does not have any contractual relationship with sub- (c) The Government does not have any contractual relationship with sub contractors and since the responsibility for site safety including that of sub contractors rests with the main contractor, it does not have a system to disqualify sub-contractors who have poor safety records. However Government does have a system to disqualify main contractors from undertaking government projects who have poor safety records. If the main contractor fails to maintain a safe working environment this will be reflected in his performance reports and could influence his retention on the lists of approved contractors.

In conclusion, I, along with other members of the Administration, am very concerned at the continuing problem of construction site safety. In conjunction with the Labour Department, my works departments, other major construction authorities, the Hong Kong Construction Association and the unions, I intend to promote measures to improve the situation. The possibility of monitoring more closely the safety performance of individual sub-contractors is one such measure.

Medical service for Tseung Kwan O

19. MR ANDREW WONG asked: With the rapid development of Tseung Kwan O as a new town, 19. MR ANDREW WONG asked: With the rapid development of Tseung Kwan O as a new town, the area now has a population of over 100 000 but has only one government clinic which opens from 9.00 am to 5.00 pm with one doctor on duty. Will the Government inform this Council:

(a) what is the rationale for setting such level of medical service for Tseung (a) what is the rationale for setting such level of medical service for Tseung Kwan O; and

(b) what actions will be taken b (b) what actions will be taken b what actions will be taken by the Administration to improve medical service y the Administration to improve medical service in the area?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the provision of one government clinic for Tseung Kwan O, which has a population of 108 000, is consistent with the guidelines stipulated in the Hong Kong Planning Standard of one clinic for every 100 000 population. In addition, the district is served by the United Christian Hospital in Kwun Tong and the Prince of Wales Hospital in Sha Tin.

In determining the level of medical services for a particular district or area, In determining the level of medical services for a particular district or area, due account is given to the demographic pattern and size of population, the availability of alternative medical services from the voluntary and private sectors, the accessibility of such services, the utilization of existing facilities and availability of resources.

The requirement for additional medical facilities in Tseung Kwan O is constantly monitored. To cater for anticipated increase in population in Tseung Kwan O, a second government clinic is being planned for completion in October 1996. This is well ahead of the growth of the population in Tseung Kwan O to 200 000 in 1999.

Compensation for vegetation on resumption of Crown Land

20. MR TAM YIU-CHUNG asked: Will the Government inform this Council of the amount 20. MR TAM YIU-CHUNG asked: Will the Government inform this Council of the amount of compensation which has been paid in the past five years for plants cultivated by private individuals in the resumption of Crown Land and the criteria for the payment of such compensation?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, compensation paid for crops and fruit trees, including ex-gratia disturbance allowance paid to cultivators, in the five years from 1 April 1986 until 31 March 1991 as a result of the resumption and clearance of Crown Land is as follows:

New Territories New Territories $217.999 million $217.999 million

Urban Area $18.054 million Urban Area $18.054 million

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

Total $236.053 million Total $236.053 million

=============

The criteria for payment are generally that:

(a) the crops existed at the date of the pre-clearance survey carried out by s (a) the crops existed at the date of the pre-clearance survey carried out by staff of the Agriculture and Fisheries Department; and

(b) the land concerned had been cultivated for at least two years prior to the (b) the land concerned had been cultivated for at least two years prior to the pre-clearance survey.

The amount of payment in each case is assessed by staff of the Agriculture and Fisheries Department while the rate of payment is reviewed and updated periodically under delegated authority of the Finance Committee.

Statement

Liquidation of the Bank of Credit and Commerce Hong Kong

FINANCIAL SECRETARY: Mr Deputy President, I would like to inform this Council of the latest position on the takeover negotiations between the Provisional Liquidator of the Bank of Credit and Commerce Hong Kong (BCCHK) and the Hong Kong Chinese Bank.

As a result of the recent emergence of large unrecorded claims from the liquidators of BCC operations elsewhere in the world, I regret to inform Members that the takeover negotiations have now been frustrated, and have been brought to an end by mutual agreement between the Provisional Liquidator and the Hong Kong Chinese Bank. The Provisional Liquidator has conveyed this outcome to representatives of the depositors of BCCHK at a meeting this morning.

Ever since the closure of BCCHK, the overriding objective has been to secure the maximum payout for all creditors and depositors. A takeover offered the best prospects until the emergence of substantial new claims from other parts of the BCCI group in recent weeks. In the face of these new claims and the reluctance of the Abu Dhabi shareholders to provide a full guarantee against such liabilities, the balance has unfortunately now shifted in favour of liquidation.

As Members will recall, in July last year most BCCHK depositors received a first

payment of 25% of their deposits, subject to an upper limit of $500,000. With liquidation, it is hoped that all depositors will receive within the next six months an interim payout of 35% to 40%, which would include the interim relief already paid. Although it is impossible to predict accurately the outcome of a liquidation, the Provisional Liquidator believes that it is not unreasonable to expect a total payout, in the longer term, in the region of 70% to 75%. Though I recognize the concern and disappointment that will be felt by depositors at this outcome, these percentages are at least far better than BCC depositors elsewhere in the world can expect.

I am disappointed that the takeover negotiations cannot be taken forward. I believe that the depositors will have the sympathy of every Member of this Council. But it is the considered judgment of the Provisional Liquidator and the Hong Kong Chinese Bank that in the light of these new claims, the negotiations for the takeover cannot succeed.

I would like to take this opportunity to thank the Provisional Liquidator and the Special Managers for their painstaking efforts over the last few months in securing and safeguarding the assets of the bank and in their complex task over the negotiations for a possible takeover. Over $5 billion has since been recovered and a cash amount of over $4 billion remains on deposit locally and is earning interest at prevailing rates. I would also like to pay tribute to the effort and sincerity of the Hong Kong Chinese Bank throughout the takeover negotiations. It is a great pity that things cannot be taken forward because of circumstances beyond the control of both parties.

Mr Deputy President, the Provisional Liquidator will now be applying to the Court for directions as to the further conduct of the winding-up petition.

At this point Mr Jimmy McGREGOR declared interest as Vice Chairman of the Hong Kong Chinese Bank.

First Reading of Bills

SECURITIES (CLEARING HOUSES) BILL

CONTRACTS FOR EMPLOYMENT OUTSIDE HONG KONG (AMENDMENT) BILL 1992 EMPLOYMENT (AMENDMENT) BILL 1992

EMPLOYMENT (AMENDMENT) (NO. 2) BILL 1992

FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) BILL 1992

EMPLOYMENT (AMENDMENT) (NO. 3) BILL 1992

FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) (NO. 2) 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

SECURITIES (CLEARING HOUSES) BILL

THE SECRETARY FOR MONETARY AFFAIRS moved the Second Reading of: "A Bill to empower the Commission to declare clearing houses to be recognized clearing houses for the purposes of this Ordinance, to provide for the approval by the Commission of the rules of recognized clearing houses, to make provision for safeguarding the operations and procedures of recognized clearing houses, and to provide for matters incidental

thereto or connected therewith."

He said: Mr Deputy President, I move that the Securities (Clearing Houses) Bill be read the Second time.

The Securities (Clearing Houses) Bill seeks to provide a legislative framework for the operation of a central securities clearing and settlement system. The introduction of CCASS (an acronym for central clearing and settlement system) will increase operational efficiency, reduce market risk, lower transaction costs and enhance Hong Kong's status as a leading financial centre. The introduction of such a system was one of the core recommendations in the Securities Review Committee Report of May 1988 and the only major one which has yet to be implemented in whole or part.

The purpose of the Bill is to protect the netting and settlement operation of The purpose of the Bill is to protect the netting and settlement operation of CCASS from the effect of the statutory insolvency rules which would otherwise apply to the affairs of a participant which became bankrupt or went into liquidation. As the clearing company, through the process of novation, will become a principal

counterparty in each trade to both buying and selling brokers, any interference with the settlement process by a third party would cause serious disruption to the system and bring the netting process to a halt. Such claims could arise when a defaulting broker was involved in liquidation proceeding, as the liquidator would be able to demand that shares which had been put into CCASS for settlement be withdrawn. This would not only void the netting of trades and render the whole system unworkable, but also cause a chain reaction of financial defaults or even severe market disruption. It is therefore in the public interest that the smooth operation of CCASS be assured by appropriate legislation.

The Bill empowers the Securities and Futures Commission to declare clearing The Bill empowers the Securities and Futures Commission to declare clearing houses as recognized and to approve the rules of recognized clearing houses. A recognized clearing house is required to have "default rules" for the taking of action in the event of a participant being unable to meet his obligations entered into with the clearing house. The scope of the default rules and the broker's assets which may be subject to a market charge are prescribed by the Bill.

Under CCASS, securities certificates will no longer have to be physically transferred each time they are traded, but will be placed in custody with the clearing house depository for use in the settlement of transaction between brokers. Although these securities registered in the name of common nominee are held in fungible form, the Bill has expressly preserved shareholders' voting rights as well as any person's right to rectify a register of members under the Companies Ordinance.

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

CONTRACTS FOR EMPLOYMENT OUTSIDE HONG KONG (AMENDMENT) BILL 1992

THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: "A Bill to amend the Contracts for Employment Outside Hong Kong Ordinance."

He said: Mr Deputy President, I move the Second Reading of the Contracts for Employment Outside Hong Kong (Amendment) Bill 1992.

This is the first of six Bills the Second Reading of which I shall be moving this afternoon. Five of the six Bills are concerned, directly or indirectly, with safeguarding the interests of Hong Kong workers. Their introduction demonstrates the sincerity of the commitment which I gave in this Council on 29 January that the Government will not overlook the interests of the local workforce.

The purpose of the Bill before Members is to extend the protection of the Contracts for Employment Outside Hong Kong Ordinance to certain non-manual employees and also to clarify certain provisions of the Ordinance.

At present, the Contracts for Employment Outside Hong Kong Ordinance, which At present, the Contracts for Employment Outside Hong Kong Ordinance, which controls contracts of employment entered into in Hong Kong by workers proceeding to work wholly or partially outside Hong Kong, applies to manual workers only. It requires that the contracts be attested by the Commissioner for Labour before the worker proceeds to work outside Hong Kong.

In recent years, an increasing number of workers from Hong Kong have taken up non-manual jobs, such as technicians and supervisors, overseas. As no written and attested contracts exist for non-manual workers, they often find it difficult to claim their due entitlements in case of disputes. The Bill therefore proposes to extend the ambit of the Ordinance to give them protection. However, it is not proposed that the Ordinance should cover non-manual employees who work in professional or senior executive posts because they are generally capable of protecting their own interests by negotiating favourable employment terms. Bringing them under the control of the Ordinance will restrict their flexibility in negotiation and render attestation of their employment contracts mandatory.

The Bill proposes to empower the Secretary for Education and Manpower to set a monthly wage ceiling above which non-manual employees will not be covered by the Ordinance. Subject to the Bill being passed, I intend to set this ceiling initially at $20,000 a month. This wage ceiling will be revised from time to time, by notice in the Gazette, to keep it in line with wage movements.

Another phenomenon in recent years has been the increase in the number of Another phenomenon in recent years has been the increase in the number of employees working for local employers outside Hong Kong. As the Contracts for

Employment Outside Hong Kong Ordinance is only intended to give protection to Hong Kong employees taking up employment outside Hong Kong with foreign employers, the Bill seeks to spell out such intent in the application clause of the Ordinance. This also serves to make clear that employees engaged by foreign employers to work outside Hong Kong are excluded from the coverage of the Employment Ordinance while all

employees engaged by Hong Kong employers to work partially or wholly outside Hong Kong are protected by it. Such clarification will be in the interest of Hong Kong workers who work across the border in mainland China. An informal estimate shows that there are 50 000 to 60 000 workers in this category.

The Bill also proposes to rectify some minor inadequacies in the Contracts for Employment Outside Hong Kong Ordinance.

First, the Bill seeks to specify certain essential employment terms, such as paid First, the Bill seeks to specify certain essential employment terms, such as paid holidays and annual leave, notice or wages in lieu of notice on termination and compensation for injury, for employees falling under the ambit of the Ordinance. This is to ensure that their terms of employment are no less favourable than those obtainable under the Employment Ordinance.

Second, the Bill proposes to remove the requirement for certification by the Commissioner for Labour of the status of persons migrating for employment. This provision is out-of-date as migration to other countries is now well-documented.

Third, the Bill proposes to extend the time limit for prosecuting offences under the Ordinance from six months to one year to facilitate prosecution work.

Finally, in line with the terminology used in other employment legislation, the Finally, in line with the terminology used in other employment legislation, the Bill proposes to amend the term "workers" in the Ordinance to read "employees". It also seeks to make a consequential amendment to the Employment Ordinance to cover this point.

The Bill has the support of the Labour Advisory Board. The Bill has the support of the Labour Advisory Board.

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

EMPLOYMENT (AMENDMENT) BILL 1992

THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: "A Bill to amend the Employment Ordinance."

He said: Mr Deputy President, I move the Second Reading of the Employment (Amendment) Bill 1992.

The Bill seeks to improve the control on employment agencies by introducing a number of amendments to Part XII of the Employment Ordinance.

In recent years, employment agencies have become more sophisticated and some of them are multi-national operations. They have introduced new modes of operation unanticipated by the existing regulatory provisions in the legislation. Some of the provisions have become out-of-date and are incompatible with modern-day operations of employment agencies.

The first proposed amendment is to remove the requirement for employment agencies to obtain separate local and overseas licences for dealing with employment within and outside Hong Kong.

Secondly, the Bill seeks to make provision that an application for a licence by a company must be made by a director of the company on its behalf.

Thirdly, the Bill seeks to make provision for the licensing of branch offices Thirdly, the Bill seeks to make provision for the licensing of branch offices of an employment agency. The proposed amendment will enable an employment agency to operate with one licence for the main office and a duplicate licence for each branch office and display it at all times in a conspicuous place on the premises.

The fourth proposed change seeks to abolish the keeping of prescribed registers of job applicants and prospective employers and submission of returns on details of placements by employment agencies. Instead, agencies will be required to keep records of essential information on job applicants and employers and make such records available for inspection.

Fifthly, the Bill proposes to remove all restrictions on charges to employers. At present, an employment agency is not allowed to receive payment from an employer other than the prescribed registration fee before successful procurement.

Commission, which must be agreed upon beforehand, is payable only after the person introduced by the agency has been successfully employed. However, there is a practical need for employment agencies, in particular the so-called "head-hunting" companies, to charge a service fee as soon as the employer has placed a job order with the agency concerned in order to defray expenses incurred in recruitment. The existing restrictions on charges by employment agencies are out-of-date.

The sixth proposed change is to abolish the provision for charging of registration fee from job applicants. This is to protect job applicants from being charged by agencies which have no real intention or ability to help them procure employment.

Finally, the Bill proposes to permit an agency to share its commission with another agency to facilitate genuine business co-operation amongst agencies.

The Bill has the support of the Labour Advisory Board. The Bill has the support of the Labour Advisory Board.

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

EMPLOYMENT (AMENDMENT) (NO. 2) BILL 1992

THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: "A Bill to amend the Employment Ordinance."

He said: Mr Deputy President, I move the Second Reading of the Employment (Amendment) (No. 2) Bill 1992.

Loopholes have been identified in those provisions of the Employment Ordinance Loopholes have been identified in those provisions of the Employment Ordinance and the Factories and Industrial Undertakings Ordinance which are concerned with the protection of employees against discrimination or dismissal by employers on grounds that the employees have assisted in the enforcement of these Ordinances. Under

section 72B of the Employment Ordinance, employees are protected for having assisted in the investigation or proceedings concerning breach of the Ordinance. However the protection against victimization in section 72B of the Employment Ordinance does not cover matters relating to accidents to employees or safety at work. At the same time, although occupational safety is covered by the Factories and Industrial Undertakings Ordinance, that Ordinance only applies to premises classified as factories and

industrial undertakings.

To close this loophole, the amendment Bill seeks to extend the remit of the protection in section 72B of the Employment Ordinance so that employees giving assistance in proceedings against employers in connection with matters concerning accidents to an employee or safety at work will be protected from victimization. Thus occupational safety matters in employment settings outside factories and industrial undertakings are brought under the remit of protection against victimization.

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

FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) BILL 1992

THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: "A Bill to amend the Factories and Industrial Undertakings Ordinance."

He said: Mr Deputy President, I move the Second Reading of the Factories and Industrial Undertakings (Amendment) Bill 1992.

Earlier, in moving the Second Reading of the Employment (Amendment) (No. 2) Bill Earlier, in moving the Second Reading of the Employment (Amendment) (No. 2) Bill 1992, I said that certain loopholes in the protection against victimization afforded by the Employment Ordinance and the Factories and Industrial Undertakings Ordinance had been identified. The object of the Factories and Industrial Undertakings

(Amendment) Bill 1992 is to plug one of those loopholes.

Section 6 of the Factories and Industrial Undertakings Ordinance prohibits employers from discriminating against or dismissing employees who have assisted in the enforcement of the provisions of that Ordinance. However, the Ordinance does not contain a sanction against contravention of this provision. The Bill now in front of Members seeks to introduce a sanction against contravention of the provision, namely a fine of $20,000. This sanction is in line with that under a similar provision in section 63A of the Employment Ordinance.

Mr Deputy Present, I move that the debate on this motion be now adjourned.

Question on the adjournment proposed, put and agreed to.

EMPLOYMENT (AMENDMENT) (NO. 3) BILL 1992

THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: "A Bill to amend the Employment Ordinance."

He said: Mr Deputy President, I move the Second Reading of the Employment (Amendment) (No. 3) Bill 1992.

The Bill seeks to increase the penalties under the Employment Ordinance for The Bill seeks to increase the penalties under the Employment Ordinance for certain offences. Cases of unlawful deduction and underpayment of wages by unscrupulous employers have arisen under the labour importation schemes. In order to deter such malpractice, it is necessary to increase the maximum penalties under the Employment Ordinance for these offences.

The existing maximum penalty for late payment, underpayment or non-payment of wages is a fine of $20,000. For unlawful deduction from wages, failure to comply with requirements by an officer of the Labour Department in regard to examination of employment records and collection of evidence of an offence, and giving false information or withholding information, the existing maximum penalty is a fine of $10,000.

Since the implementation of the importation of labour schemes in 1989, a number of imported workers have not been paid their full wages. There has also been a number of complaints from imported workers who alleged that they were asked by employers to sign blank wage receipts or two different sets of wage receipts to cover up unlawful deduction or underpayment of wages.

During the first 11 months of 1991, the Labour Department received reports of 370 items of suspected irregularities concerning underpayment and unlawful deduction of wages and 48 of them were substantiated after investigation. Many of the remaining items are still under investigation. The availability and accuracy of the wage records and related documents kept by employers are essential in such investigations. As at 31 January 1992, five employers have been convicted for underpayment or unlawful deduction of wages in respect of a total of 14 summonses. The average fine imposed for these summonses was $1,000 which is unlikely to be an effective deterrent.

The Bill seeks to increase the maximum fines for unlawful deduction of wages from $10,000 to $100,000 and underpayment of wages from $20,000 to $200,000. The Bill also seeks to introduce for both offences the additional maximum penalty of imprisonment for one year. The maximum penalties for related offences of giving false information, withholding information and failure to comply with inspection requirements will be raised from a fine of $10,000 to $100,000 and imprisonment for one year. The criminal liability of employers will be clearly set out under a new section provided for in clause 6 of the Bill, which provides that directors, partners and responsible persons of companies and firms shall also be guilty of the offences of unlawful deduction and underpayment of wages or the related offences of giving false information and so on, where such offences are committed by their companies or a partner of the firm with their consent or connivance, or as a result of their negligence. This is in line with section 14 of the Factories and Industrial Undertakings Ordinance passed by this Council in December 1990. Clauses 5 and 7 contain consequential and technical amendments.

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

FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) (NO. 2) BILL 1992

THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: "A Bill to amend the Factories and Industrial Undertakings Ordinance."

He said: Mr Deputy President, I rise for the last time this afternoon to move the Second Reading of the Factories and Industrial Undertakings (Amendment) (No. 2) Bill 1992.

The Bill seeks to extend the coverage of the Factories and Industrial Underta The Bill seeks to extend the coverage of the Factories and Industrial Undertakings Ordinance by expanding the definition of "industrial undertaking" to include container handling activities. It also provides for a definition of "container", which follows closely that used in the International Convention for Safe Containers adopted by the International Maritime Organization.

At present, places used for loading, unloading and handling containers such as

container terminals and depots are within the ambit of the Factories and Industrial Undertakings Ordinance. However, open grounds used solely for storage of empty containers are outside the ambit of the Ordinance. Many of these are operated on uneven land in the New Territories. Empty containers are stacked one over another, often to a considerable height, in order to save space. Workers working on the roof of such containers are exposed to the same risk as other workers working at height.

Following a number of serious industrial accidents, an inter-departmental working party was set up to review the safety aspects of the existing system of control on container handling. The working party recommended, among other things, that suitable amendments should be made to the Factories and Industrial Undertakings Ordinance and Regulations in order to bring all container handling activities under control. The Bill seeks to achieve this.

For the proposed safety provisions to be effective, we shall also amend the Factories and Industrial Undertakings (Cargo Handling) Regulations concurrently to extend the coverage of the regulations to include container storage yards. The regulations will be submitted to this Council for approval upon passage of this Bill.

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

MAGISTRATES (AMENDMENT) 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).

TELEVISION (AMENDMENT) (NO. 2) BILL 1991

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

Question on Second Reading proposed.

MR ALLEN LEE: Mr Deputy President, the purpose of the Bill is in the main twofold. First, to give the Broadcasting Authority discretion in applying the residence requirement for principal officers of a television company and secondly, to allow advertising material to be broadcast during a programme (by the use of "teloping") where the licensee concerned has the permission of the Broadcasting Authority to do so.

After careful consideration of the provisions in the Bill and the explanations given by the Administration, the ad hoc group set up to study the Bill has recommended that the Bill be supported subject to the Administration's undertaking to formulate a set of guidelines for the Broadcasting Authority in exercising its discretion over residence requirements of principal officers of television companies.

Mr Deputy President, I would like to take the opportunity to briefly highlight the five major points which have been considered by the ad hoc group. The first involves the rationale for the proposed change with regard to the residence requirements of the principal officers of television companies. The Administration has explained to the group that the residence requirements were originally imposed on the off-air television companies because it was thought that local control was advantageous for such an influential medium. The proposed change in the Bill is purely to empower the Broadcasting Authority to waive the residence requirements of the principal officers of television companies, if necessary. Without this amendment, the law will remain unduly restrictive and overseas staff will continue to be excluded from the key posts even if there is a very strong case for them to be employed to contribute to the innovative programme concepts and techniques. The ad hoc group agrees with the Administration that the proposal will add flexibility by specifically empowering the Broadcasting Authority to give approval in the case of persons not fulfilling the residence requirements.

The second point concerns the statutory definition of "Principal Officer". The The second point concerns the statutory definition of "Principal Officer". The Administration has pointed out that as different television stations may have different senior management structures, it would be difficult to define the term "Principal Officer" in the legislation. The licensees understand that they should include the officer responsible for the selection of programmes as stated in section 10(e) of the Television Ordinance. The list of principal officers provided to the

Broadcasting Authority by the licensees on an annual basis, as required under section 40(1)(a) of the Ordinance, has always contained sufficient information. The ad hoc group is satisfied with the explanation provided by the Administration.

The third involves residence requirements imposed on television companies. According to the Administration, residence requirements apply to the directors of the Hong Kong Telephone Company Limited. However, there appear to be no statutory residence requirements imposed on any other utility or newspaper companies. Nor are such requirements imposed on the Star TV. There are also no statutory residence requirements on the principal officers of radio licensees in Hong Kong though the licences of Commercial Radio and Metro Broadcast require the chairman and managing director, and the majority of the directors, to be ordinarily resident in Hong Kong and to have been so resident for seven years, and for "the control of the licensee to be bona fide exercised in Hong Kong". In the Metro's case there is provision in the licence for the Broadcasting Authority to exercise its power to waive the requirement. The ad hoc group also notes that the Administration is conducting a comprehensive review with a view to consolidating the current legislation relating to television, radio, satellite television and subscription television into the Broadcasting Ordinance. I do hope that the Administration could complete the task as soon as possible.

The fourth is about guidelines for the Broadcasting Authority to exercise its discretion to waive residence requirements of the principal officers of television companies. Having regard to the original intention of residence requirements under the principal Ordinance, the ad hoc group considers that there should be a set of parameters for the Broadcasting Authority to exercise its discretion so as to ensure that the production of television programmes can best serve the interest of local people. In response, the Administration points out that the Broadcasting Authority would consider each application on its own merits. Besides, there are also other provisions in the existing legislation which would help ensure that the television companies serve the interest of the local people. Notwithstanding the explanation provided by the Administration, the ad hoc group remains of the view that the

Administration should be requested to undertake to inform Members of this Council of the guidelines for exercising such discretion by the Broadcasting Authority. I trust the Administration would accede to the request of the ad hoc group.

The last deals with the advertising during programmes on television. The The last deals with the advertising during programmes on television. The Administration points out that the intention of teloping is not to enhance the

revenue-generating capability of the licensees. While teloping would help maintain the continuity of the programme, it would still cause minor disruption to viewers. To allow teloped advertising without any quantity restriction would thus not be in the interest of viewers. It is therefore necessary to count the teloped advertising towards the 10-minute restriction on advertising in a clock hour. In endorsing the use of teloping as a form of advertising, the Broadcasting Authority has planned to review its operations in 12 months' time. The ad hoc group is satisfied with such arrangements.

Mr Deputy President, with these remarks, I support the Bill. Mr Deputy President, with these remarks, I support the Bill.

SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, I am grateful that after consideration of the various points outlined by Mr Allen LEE, the ad hoc group headed by Mr LEE is in support of this Bill. On the point about residence requirements for the principal officers in television companies, the Administration has noted the concern of the ad hoc group that the Broadcasting Authority, in exercising its

discretion to waive these requirements, should have reference to a set of guidelines. We have reflected this concern to the Broadcasting Authority which has agreed to this approach. We will, of course, inform Members of these guidelines once they are adopted by the Broadcasting Authority.

If I may now turn to the second amendment in this Bill, that is, to allow tel If I may now turn to the second amendment in this Bill, that is, to allow teloping as a form of advertising, I can confirm that the Broadcasting Authority will be reviewing the situation in 12 months' time. Naturally, any improvements required can be considered at that time.

As regards the consolidation of all our broadcasting legislation into one Ordinance, I can assure Members that we are proceeding with this exercise and will complete it as soon as we can.

With these remarks, Mr Deputy President, I commend this Bill to the Council. With these remarks, Mr Deputy President, I commend this Bill to the Council. Question on the Second Reading of the Bill put and agreed to. Bill read the Second time.

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

CRIMES (TORTURE) BILL

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

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

Committee stage of Bills

Council went into Committee.

MAGISTRATES (AMENDMENT) BILL 1991

Clauses 1 to 5 were agreed to.

TELEVISION (AMENDMENT) (NO. 2) BILL 1991

Clauses 1 to 4 were agreed to.

CRIMES (TORTURE) BILL

Clauses 1 to 9 were agreed to.

Schedule was agreed to.

Council then resumed.

Third Reading of Bills

THE ATTORNEY GENERAL reported that the

MAGISTRATES (AMENDMENT) BILL 1991

TELEVISION (AMENDMENT) (NO. 2) BILL 1991 and the

CRIMES (TORTURE) BILL

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

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

Member's motion

REVIEW OF THE TAXATION SYSTEM IN HONG KONG

MR FRED LI moved the following motion:

"That this Council urges the Government to set up a committee, with members representing a wide cross section of the community, to conduct a comprehensive review of the taxation system in Hong Kong."

MR FRED LI (in Cantonese): Mr Deputy President, I move the motion standing in my name that this Council urges the Government to set up a committee, with members representing a wide cross section of the community, to conduct a comprehensive review of the taxation system in Hong Kong.

Mr Deputy President, if the motion debate on a review of the taxation system was Mr Deputy President, if the motion debate on a review of the taxation system was conducted on 4 December 1991 as scheduled then I believe the result would be rather different. It is a pity that my motion has been politicized as the Budget Speech draws close. Undoubtedly, it has become a warm-up to the Budget debate.

I would like to clarify that what I am asking for is a taxation review for the development of the coming decade -- not for the Budget of 1992-93. Like my colleagues, Mr WONG Wai-yin and Mr TIK Chi-yuen, I am not going to make any proposals to the present taxation system nor any concrete proposals to the 1992-93 Budget. I urge Members

of this Council to adopt an open attitude in discussing the matter and also to put forward your precious views. We should not tangle over the rise of any particular tax item or tax concession.

First of all, let us discuss why we should review our taxation system. The present Inland Revenue Ordinance was enacted hastily after the Second World War. Since then there have been no major changes. Apart from some slight modifications of tax rates, there have not been much changes to the tax items. Our taxation system is characterized by its simplicity, low tax rates and high efficiency. Over the decades we have had three reviews on the Inland Revenue Ordinance, in 1952-54, 1966-67, and 1976. The reviews were conducted by the appointed Review Committees to look at the technical matters relating to direct taxes under the Ordinance. The ambit of the reviews was subject to many restrictions. The direct taxes under the Inland Revenue Ordinance only include profits tax, salaries tax, interest tax (which was abolished) and property tax. Indirect taxes like betting duty, entertainment tax, stamp duty, hotel accommodation tax, air passenger departure tax, rates, and so on, are within the ambit of other ordinances. The estate duty which is a direct tax is governed by another ordinance. So we can see that the Inland Revenue Ordinance reviews merely touched upon a few direct taxes and were very limited in scope.

Furthermore, the Financial Secretaries in the past regarded the Inland Revenue Ordinance reviews as only a technical review and not related to any fiscal policy. But this does not mean that the Government feels that our taxation system is satisfactory. When he appointed the Third Review Committee, the former Financial Secretary, Sir Philip HADDON-CAVE said in his Budget Speech that the problem was that the basic principles of enacting the Ordinance then were formulated 35 years before during the war and it was the time to consider whether the principles could still meet the needs of modern Hong Kong. Please remember the remark was made in 1976. But unfortunately since then the Government has not discussed these principles. Other Financial Secretaries adopted a similar attitude. Sir John BREMRIDGE, in his Budget Speech in 1986-87, rejected the proposal made by some Legislative Councillors to set up a Fourth Review Committee. He thought that the Government had the responsibility with regard to taxation and this responsibility should not be shared with others. Although he refused to establish the Review Committee, Sir John BREMRIDGE set up a Joint Liaison Committee on Taxation, serving as an advisory body to the Financial Secretary. It comprised representatives from the accounting profession, the legal profession, and the business circles. They did not have any statutory status. The meetings were held behind closed doors and the public had no

participation. Over the 15 years since 1976, there has been no public review of the Inland Revenue Ordinance.

Many of our colleagues and people from the business sector feel that we should continue our simple and low tax policy and that there should not be any changes because everything has been going well. I believe that this argument has ignored the significant economic, political and social changes in Hong Kong over the past decades. The taxation system should go hand-in-hand with the changes in our society and corresponding amendments should be made. Hong Kong witnessed a double-digit economic growth in the 1970s and early 1980s. Furthermore, apart from 1974 and 1983, when we had deficit budgets as a result of global recession, our tax revenue could basically meet the public expenditure. But in the 1990s the situation is different. The Government and the private sector expect that our economic growth in the 1990s will be only in the range of 5%. Hong Kong has entered an era of low growth. In fact, this is similar to that of the developed countries. During the years of low growth, we know that Hong Kong will still have to shoulder the enormous expenditure on infrastructure projects and it becomes an immense pressure on our fiscal strength. The Secretary for the Treasury, Mr K Y YEUNG, said on a public occasion that if there was no change to the taxation system, the deficit would be 6.44 billion in 1992- 93, 14.16 billion in 1993-94, and 13.17 billion in 1994-95. The persistent high inflation, together with the low economic growth rates in recent years, means that the living standard of the lower income group has been declining. The Gini Coefficient, an indicator to gauge the distribution of social wealth, was 0.409 in 1976 and reached 0.48 in 1991.

An important principle is that the taxation system, apart from yielding adequate An important principle is that the taxation system, apart from yielding adequate revenue to the Government, should be designed to perform a redistribution function. I must stress that it is one of the functions, not the only function. But this function has not been fulfilled over the past nine years because the increase of income tax allowance has not pegged with inflation. Admittedly, this is not a policy. But the Government has failed to listen to such pleas made by many people. I think that the Government should take a serious look at the taxation system. The fact is the Government will have to meet enormous expenditure. We have a rather narrow tax base: 8% of the salaries taxpayers pay 56% of the salaries tax, and the tax paid by less than 0.1% of the entrepreneurs accounts for one-third of the total profits tax. The narrow tax base cannot ensure a stable source of revenue. In times of recession the Government revenue will be jeopardized. This prompted the Government to study the feasibility of levying a sales tax some years ago. To promote our economic

development, we must also take into account the effects of any new tax or tax concession on industrial investment. In the past, taxation reviews were very limited in scope and could not go hand-in-hand with our economic development.

There is an urgent need to conduct a comprehensive review of our taxation sys There is an urgent need to conduct a comprehensive review of our taxation system. We believe such review should be conducted in a comprehensive manner. What I mean by comprehensive is the wide scope of the review and the necessity to enlist representatives from a wide spectrum of the community to sit on the Review Committee. The scope of the review should cover the taxation principles employed; the taxation philosophy; the concrete measures to be taken to broaden the tax base; the burdens imposed by different tax items on the different strata of our society; the effects of the taxation system on our economy; the possibility of using the taxation system to achieve certain social objectives, such as increasing tunnel toll to reduce traffic congestion and raising tobacco tax to improve the health of the public; and the ways to plug the loopholes with regard to tax evasion and tax avoidance.

The Joint Liaison Committee on Taxation is not representative enough to conduct a comprehensive review of the taxation system. The taxation system involves different sectors of our society and we should not rely on a handful of professionals to find the answer. Even people from the business sector may have different interests. To take sales tax as an example, in the Budget Debate on 27 March 1991, Mr Allen LEE supported the introduction of the sales tax at wholesale level. If Mr Allen LEE's position remains unchanged, I believe many of Mr LEE's friends or CRC members, such as Mr Howard YOUNG and Mr Martin BARROW, will be opposed to Mr LEE's view. As such, it is essential for the Government to appoint people with representativeness to the Review Committee. It will then be able to reconcile the different interests otherwise the Joint Liaison Committee will only be doing piecemeal work. I understand that the review of the taxation system is a very technical job and that the general public may not be able to understand it, but the social impact brought about by the outcome of the review would affect many people. Therefore we cannot leave the matter to a small group of experts. Through this motion debate, I hope that the Government will change its closed-mindedness in its decision-making process.

With the opening up of the Government, we should increase the transparency of the system in terms of the formulation of the tax policy, which affects the lives of the men in the street. A taxation review involves social, economic and political aspects. I think that we should set up a committee with its members coming from all walks of life. It should comprise Legislative Councillors and professionals while

including lawyers, accountants, representatives from the Taxations Institute, economists sepcialized in public finance, and people representing different social sectors. We should make it possible for such a committee to take different views into consideration and to look after different interests in order to establish a taxation system which can cope with our long-term development.

In the last few days I have read through the speeches of the Budget Debates in In the last few days I have read through the speeches of the Budget Debates in the past three years. I discovered that many Members in fact shared my views, but I wonder whether they will hold the same views when they vote on my motion. Let me quote a few of the comments from the Handards.

At the Budget Debate on 27-28 March 1991, Mr Andrew WONG, Mrs Peggy LAM, Mr M At the Budget Debate on 27-28 March 1991, Mr Andrew WONG, Mrs Peggy LAM, Mr Martin LEE, Mr TAM Yiu-chung, Mr CHUNG Pui-lam, and others, fully supported a taxation review by the Government. I do not wish to go into the details. Instead, I would like to quote particularly some remarks from other Members who made many proposals with regard to the reform of the taxation system. For instance, Mr Allen LEE was concerned about tax avoidance by companies. He supported a broadening of the tax base and the

introduction of a sales tax at wholesale level. Mrs Rita FAN asked for a careful consideration of levying capital gains tax. Mr ARCULLI expressed concern about the heavy tax burden on motorists and smokers. These views were fully reflected in their speeches. Mr ARCULLI said and I quote, "The Government should explore new revenue measures that have a greater per capita nature or basis." My emphasis is on new revenue measures. He also proposed that varying tariff could be based on the length of pleasure crafts. I think these were very good proposals. Members also discussed the ratio between direct tax and indirect tax, and they expressed their worries that the Government would emphasize too much on direct tax.

These proposals which cover an increase of tax items and the ratio between di These proposals which cover an increase of tax items and the ratio between direct tax and indirect tax mean that we need more than a review of the Inland Revenue Ordinance. What we need is a comprehensive review of the taxation system. I emphasize time and again that the Government should not carry out public consultation only about the introduction of a sales tax. I think the introduction of a sales tax will lead to a great change to our taxation system. To deal with the problem squarely, we should approach the taxation system comprehensively.

And if we look back one year further, on 25 April 1990, Mr NGAI Shiu-kit said and I quote, "It is wise of the Financial Secretary not to impose the sales tax. After all, our taxation system and its operation require a thorough review. Although there

is a need to extend the tax net, a comprehensive study has to be conducted to establish fair and effective taxation guidelines and to secure a creative environment in favour of our future economic prosperity."

To conclude, I would like to quote Mr Peter WONG's speech in 1991. I fully s To conclude, I would like to quote Mr Peter WONG's speech in 1991. I fully support his views and I think those of us from the liberal camp should learn from Mr WONG. As a member of the Joint Liaison Committee on Taxation (both Mr Peter WONG and Mr Eric LI are members of the Committee), Mr WONG said, "As a member of the Joint Liaison Committee on Taxation, I concur that the Committee is not the appropriate forum to do a comprehensive review of our tax structure. The fact remains that we have

inherited the old colonial tax model which is meant for an unsophisticated economy. As we progress towards democratic government in the foreseeable future, it will be the voter that, in the final analysis, decide the taxation policy. The taxation policy that evolves will, instead of tinkering with revenue measures, meet the

sophisticated needs as well as broad social objectives of our policy." These are also the words from my heart.

Mr Deputy President, I will comment on Mr Frederick FUNG's amendment later and will not do so now. I urge Members to put forward your views.

Thank you, Mr Deputy President.

Question on the motion proposed.

DEPUTY PRESIDENT: Mr K K FUNG has given notice to move an amendment to the motion. His amendment has been printed in the Order Paper and circulated to Members. I propose to call him to speak and to move his amendment now so that Members may debate the motion and the amendment together.

MR FREDERICK FUNG moved the following amendment to Mr Fred LI's motion: To add the following after "Hong Kong":

"with one of its main objectives being to reduce the tax burden of the lower and middle income groups"

MR FREDERICK FUNG (in Cantonese) : Mr Deputy President, I rise to move my amendment

Comments

Approved members can add comments, bookmarks, and private notes.

No comments yet.

Private Research Note

Private notes are available after approval.