1 HONG KONG LEGISLATIVE COUNCIL -- 26 February 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 26 February 1992 HONG KONG LEGISLATIVE COUNCIL -- 26 February 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 26 February 1992 1
OFFICIAL RECORD OF PROCEEDINGS
Wednesday, 26 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. DR THE HONOURABLE LEONG CHE-HUNG
THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E.
THE HONOURABLE PETER WONG HONG-YUEN, J.P.
THE HONOURABLE ALBERT CHAN WAI-YIP
PROF THE HONOURABLE EDWARD CHEN KWAN-YIU
THE HONOURABLE VINCENT CHENG HOI-CHUEN THE HONOURABLE MOSES CHENG MO-CHI
THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P. THE HONOURABLE CHEUNG MAN-KWONG
THE HONOURABLE CHIM PUI-CHUNG
REV THE HONOURABLE FUNG CHI-WOOD
THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA
DR THE HONOURABLE HUANG CHEN-YA
THE HONOURABLE SIMON IP SIK-ON, J.P.
DR THE HONOURABLE LAM KUI-CHUN
DR THE HONOURABLE CONRAD LAM KUI-SHING THE HONOURABLE LAU CHIN-SHEK
THE HONOURABLE MISS EMILY LAU WAI-HING
THE HONOURABLE LEE WING-TAT
THE HONOURABLE GILBERT LEUNG KAM-HO
THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING
PROF THE HONOURABLE FELICE LIEH MAK, O.B.E., J.P.
THE HONOURALBE MAN SAI-CHEONG
THE HONOURABLE STEVEN POON KWOK-LIM
THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN
THE HONOURABLE JAMES TO KUN-SUN
DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG
DR THE HONOURABLE YEUNG SUM
THE HONOURABLE HOWARD YOUNG
THE HONOURABLE ZACHARY WONG WAI-YIN
ABSENT
THE HONOURABLE LAU WAH-SUM, O.B.E., J.P. THE HONOURABLE NG MING-YUM
IN ATTENDANCE
MR GRAHAM BARNES, C.B.E., J.P.
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS
MR MICHAEL LEUNG MAN-KIN, C.B.E., J.P.
SECRETARY FOR TRANSPORT
MR YEUNG KAI-YIN, J.P.
SECRETARY FOR THE TREASURY
MR JOHN CHAN CHO-CHAK, L.V.O., O.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER
MR MICHAEL SUEN MING-YEUNG, J.P.
SECRETARY FOR HOME AFFAIRS
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
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.
Rectification of Errors Order 1992.................................. Rectification of Errors Order 1992.................................. 25/92
Dutiable Commodities (Liquor Licences)
(Specification of Fees) (Regional Council
Area) (Amendment) Notice 1992............................... 26/92 Area) (Amendment) Notice 1992............................... 26/92
Admission and Registration (Amendment)
Rules 1992.............................................................. Rules 1992.............................................................. 27/92
Admission and Registration (Amendment)
(No. 2) Rules 1992................................................... 28/92
Articled Clerks (Amendment) Rules 1992......................... 29/92 Articled Clerks (Amendment) Rules 1992......................... 29/92
Continuing Legal Education (Amendment) Continuing Legal Education (Amendment)
Rules 1992.............................................................. 30/92
Disciplinary Committee Proceedings
(Amendment) Rules 1992......................................... 31/92 (Amendment) Rules 1992......................................... 31/92
Legal Practitioners (Fees) (Amendment)
Rules 1992.............................................................. Rules 1992.............................................................. 32/92
Non-contentious Probate (Amendment)
Rules 1992.............................................................. 33/92
Solicitors' Practice (Amendment) Rules 1992..................... Solicitors' Practice (Amendment) Rules 1992..................... 34/92
Solicitors (Professional Indemnity)
(Amendment) Rules 1992......................................... 35/92 (Amendment) Rules 1992......................................... 35/92
Legal Practitioners (Amendment) Ordinance 1991
(Commencement) Notice 1992.................................. 36/92 (Commencement) Notice 1992.................................. 36/92
Sessional Papers 1991-92
No. 53 -- No. 53 -- Hong Kong Baptist College Hong Kong Baptist College
Annual Report 1990-91 with Accounts for the
year ended 30 June 1991
No. 54 -- No. 54 -- City Polytechnic of Hong Kong City Polytechnic of Hong Kong
Annual Report 1990-1991 with Financial Report
No. 55 -- No. 55 -- Li Po Chun Charitable Trus Li Po Chun Charitable Trus Li Po Chun Charitable Trust Fund
Annual Report for the Period 1 September 1990 to
31 August 1991
Address by Member
Hong Kong Baptist College Annual Report 1990-91 with Accounts for year ended 30 June 1991
DR SAMUEL WONG: Mr Deputy President, the Annual Report of the Hong Kong Baptist College for the year ended 30 June 1991 and the Auditors' Report for the same period are tabled before this Council today. As a member of the College Council, I take pleasure in presenting the reports to you and in highlighting a number of the significant
achievements of this institution in the year under report.
The major challenge for the College in the year 1990-91 was the institutional review visit by the Hong Kong Council for Academic Accreditation (HKCAA) which took place in January 1991. It was a periodic review required by the University and Polytechnic Grants Committee (UPGC) and the review panel's main term of reference was to assess the suitability of the College's academic environment and processes for the conduct and development of first, higher and research degrees.
At the end of the visit, the review panel confirmed that the Hong Kong Baptist College had a satisfactory environment for degree level work and for a gradual development of postgraduate programmes. The panel was impressed with the commitment of both staff and students and the substantial improvement in College resources and facilities. The College was congratulated on the successful management of its recent programme of change and expansion.
The visiting panel's very positive conclusion was a most timely and encouraging The visiting panel's very positive conclusion was a most timely and encouraging gift of recognition to the College community as it celebrated its 35th anniversary. It summarized the achievements of the College made in the past 35 years of its history and spurred both staff and students towards even greater heights.
In the 1990-91 year, there were altogether 10 undergraduate courses on offer, with a total of 30 academic majors/options. The number of full-time students enrolled in first degree courses grew by 9% to reach 3 269. There were 31 postgraduate students enrolled in the Master of Philosophy by research programme. Building on the
experience of supervising these students, the College decided to submit a proposal to the UPGC to launch a Doctor of Philosophy by research programme in 1992-93. I
am pleased to report that this proposal has now been accepted for PhD students to be enrolled from the spring of 1992. In addition to the full-time students, there were also 1 616 students taking the part-time degree conversion courses and some 50 000 separate registrations for courses offered by the College's School of Continuing Education. All of these part-time courses are offered on a self-financing basis.
The year 1990-91 was also one of hard work and good results in the area of re The year 1990-91 was also one of hard work and good results in the area of research. search. During the year, the College continued to enhance its infrastructure for research, which included the acquisition of research equipment, specialized library holdings, and more sophisticated computing facilities. The College allocated a sum of $3.853 million to support 50 research projects and provide partial assistance to the
operation of the four research centres. The College was also successful in the competitive bidding for funding from the UPGC's Research Grants Council, with a total of $3.311 million approved for five research projects out of eight project proposals submitted. Additionally, there were 273 smaller projects which made use of recurrent funds directly allocated to faculties and schools.
On the consultancy front, a major collaborative project entitled "Technology Road On the consultancy front, a major collaborative project entitled "Technology Road Maps for Hong Kong" was undertaken by the UPGC institutions. This project studied in depth four technology areas with particular potential for Hong Kong, and the College played an active part both in the steering group overseeing the project as well as in the technical investigations into environmental technology.
During the year the College was engaged in active negotiations with the UPGC and the Government on the equalization of the College's salary scale with that of the universities, a principle which has been accepted by the UPGC. Since academic staff of the College are fully qualified for university appointment and are totally engaged in degree and postgraduate level teaching and research, they should be given the same remuneration as their counterparts in the universities. I am delighted to learn that, subject to some financial technical arrangements, the common salary scale could be implemented with effect from the 1992-93 year.
For physical development, the College was granted a large site at Renfrew Road For physical development, the College was granted a large site at Renfrew Road just south of its present Waterloo Road campus for further expansion. Two new projects on this site progressed well on track during the 1990-91 year. The first was the joint outdoor sports ground to be shared with the two Polytechnics. The second was a group of academic buildings to accommodate an additional 1 000 students by 1994. This expansion is in line with the government-approved expansion plans to
bring the territory-wide first-year-first-degree student number to 15 000 by 1994.
During the 1990-91 year, many facets of the work of the College won favourable endorsement from its peers. To quote from the report of the institutional review panel cited at the outset, the College has "..... a positive corporate atmosphere among staff and students, with a strong sense of pride in, and allegiance to, the institution.
The staff are keen and committed; the students (are) impressive and enthusiastic .....". It is my firm belief that this positive corporate spirit will be an invaluable asset to the College as it continues in its development as an academic community which is committed to the international standards of academic excellence.
Mr Deputy President, with these remarks I submit to you and Members of this C Mr Deputy President, with these remarks I submit to you and Members of this Council the 1990-91 Hong Kong Baptist College Annual Report. I am sure you will find that there is much more contained in the Report which attests to the commitment of this institution to the provision of quality tertiary education for the youth of Hong Kong.
Oral answers to questions
Environmental protection
1. MRS PEGGY LAM asked (in Cantonese): In order to step up the implementation of 1. MRS PEGGY LAM asked (in Cantonese): In order to step up the implementation of the environmental protection policy in Hong Kong, will the Government inform this Council:
(a) wha (a) what measures are and will be adopted to reduce the use of household arti t measures are and will be adopted to reduce the use of household articles such as plastic bags which pollute the environment; and
(b) whether it will advocate and encourage the simplified packaging of (b) whether it will advocate and encourage the simplified packaging of commodities as far as possible, so as to minimize the production of unnecessary wastes?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, I am going to restrict my answer to the first part of Mrs LAM's question to plastic bags and paper, the most common household wastes. First plastic bags. There is some recycling of plastics, but it has progressed very little, because it involves waste separation and cleaning before the material can be used. So our efforts to reduce the use of
plastic have been mainly concentrated on propaganda through the inclusion of messages to use less plastic bags in all environmental campaign and literature. As it happens, one of the main messages which we will be trying to put across on World Environment Day on 5 June is "Use Less Plastic Bags", which will be backed by APIs, posters, leaflets and press advertisements. Prior to this, a survey of the public's attitude to various ways of reducing the use of plastic bags is being undertaken. So to this limited extent this is plastic bag year. We have also discussed with some of the bigger supermarket chains the proposition that they cease to issue free plastic bags to their shoppers. The discussions have not, I am afraid, resulted in any charging for use of plastic shopping bags or reduction in plastic bags issued, but it has encouraged one company to start a scheme for taking back its old plastic shopping bags, and these are subsequently recycled.
As for paper, we do better. A waste paper recovery scheme started in December last year has involved 16 public housing estates in recovering waste paper in privately-provided containers. We aim to expand the scheme to other estates, and the branch is negotiating with the public transport operators to spread it into stations and terminals and on board ferries. Already most of our office paper wastes in the main office areas are recovered and exported for recycling.
With regard to the second part of the question about packaging we will certainly consider encouraging simpler packaging for our products but see the persuasion of industry and the retail business to this point of view as a very uphill job.
MRS PEGGY LAM (in Cantonese): Mr Deputy President, will the Administration consider banning the use of non-recyclable plastic bags or the import of materials for the manufacture of such bags?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, we have seriously considered this possibility, particularly the possibility of banning non biodegradable plastic bags. But up till now the advice has been that non biodegradable plastics are more recyclable and the biodegradable ones less recyclable but yet they still take a long time to degrade. And the advantage gained in the environment would not justify the cost and the inconvenience to the consumer in introducing restrictions. That is the advice that we have had up to the present. But a community's values change and Hong Kong's values have been changing in respect of the environment, and the balance may well be different. So I agree entirely that
the possibility of prohibitions should be given another look.
MR STEVEN POON: Mr Deputy President, many countries, including the United States, use paper bags. Will the Administration inform this Council whether it will encourage supermarkets to use paper bags or to charge customers for every plastic bag they use?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, as I said in my main answer, we have discussed the possibility of charging for the use of plastic shopping bags in supermarkets. And of course one has to emphasize that supermarkets are not the whole problem in that the wet-market has a massive use of plastics also, and that is much more difficult to deal with. As I say, previously we have taken the view that the advantage gained to the environment would not be balanced by the inconvenience to the public. Moreover, Hong Kong has been traditionally slow to introduce measures which sort of interfere with the normal course of business. In reconsidering this matter, as I feel we have to from time to time, we will have to also consider the materials from which paper bags, if introduced into this area, would be made because there are also fairly strong views in the world -- and strong reasons too -- for avoiding the use of products which use non-renewable resources. Certainly, in this area, a fair amount of paper is made from forests which are not easily
renewable.
DR LAM KUI-CHUN: Mr Deputy President, my personal enquiry has revealed that biodegradable, and therefore environmentally friendly, plastic bags actually cost less than standard plastic bags. Would the Secretary for Planning, Environment and Lands inform this Council whether there is any difficulty, and if so what, in persuading operators of wet-markets and supermarkets to switch from standard plastic bags to biodegradable plastic bags?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the information which the Honourable Member has produced on the relative costs of biodegradable and non-biodegradable plastic bags is new to me and it absolutely amazes me that our Hong Kong businessmen have not discovered this for themselves and put this to immediate use because they are normally so quick on discovering cheaper sources of material.
But with that said, I am most grateful for the information and I feel sure that if it can be substantiated to the satisfaction of the businesses, the Administration would have a very much easier time in persuading the businesses to adopt the more environmentally friendly material and the Administration will certainly look into it.
MR HENRY TANG: Mr Deputy President, in his answer the Secretary states that in the main office areas paper is largely recovered and exported for recycling. Will the Secretary inform this Council whether the Government intends to set up its own recycling plant, and if not, why?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the Government has always considered that the recycling business is a business and as such is better done by the trade. As it happens, the economies of recycling seem to be better in our neighbouring countries than they are in Hong Kong, particularly where we always have some danger of limitations on water supply. There is not much of paper recycling in Hong Kong, and there are relatively few places in Hong Kong where a substantial paper recycling operation could be set up because of the question of water supplies. In so far as there is a market demand for exporting waste paper to other countries for recycling, there seems to be nothing really wrong with the present situation, which would justify the Government's special intervention in trying to introduce its own plant which might be a considerable business risk.
MR ALBERT CHAN (in Cantonese): Mr Deputy President, will the Administration inform this Council whether consideration would be given to devise, in consultation with the two municipal councils, a comprehensive waste collection and disposal system, so that waste will be disposed of in a more systematic and efficient manner?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, waste disposal is covered by an Ordinance -- I hope I will get it right -- the Waste Disposal Ordinance; I may have got it wrong. But I can assure the Honourable Member that this requires the Administration to consult with the two waste collection authorities, that is, the two municipal councils.
MR PETER WONG: Mr Deputy President, at this time when the Financial Secretary appears to want additional revenue to balance his Budget, has the Secretary considered helping by levying a tax on all plastic bags, so that the cost of their disposal can be taken care of?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, this is one of the ideas which have been, in a quiet sort of way, in the melting pot for several years. But I would say that in the White Paper on Pollution we did set our priorities, with what we felt to be the measures which would abate pollution most effectively being given the top priority. We have never really felt that the work on such
legislation -- which I have absolutely no doubt would turn out to be more complex than it sounds as we talk about it in this Chamber -- would, in terms of preventing pollution, be as productive as some of the efforts we are putting elsewhere.
MR MAN SAI-CHEONG (in Cantonese): Apart from our concern over plastic bags, will the Administration inform this Council whether it will follow the other administrations in introducing specific measures on this or enact legislation to make it mandatory for plastic manufacturers to attach different labels on plastic containers, so that users will know which ones are recyclable, thereby reducing the volume of waste and the need to take them to a landfill, and if not, why not?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, I have very little doubt that measures of the kind which Mr MAN is talking about will eventually be brought into operation in Hong Kong. But, as I have said before and I will say again, we do have to use both our technical and our administrative resources to the greatest effect and on our highest priorities in seeking to control pollution. We do not feel -- and for that reason we did not put it in our White Paper -- that the type of action proposed by Mr MAN should be tackled on a high priority basis, though we recognize that it should come.
So I can see that coming in the future but probably I cannot see anything effective being done in the next two years.
REV FUNG CHI-WOOD (in Cantonese): The Administration will involve 16 public housing estates in the waste paper recovery scheme. May I be advised when this scheme will be extended to other public housing estates; if not, why not?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, in my answer I said there are 16 estates so far. When the scheme is satisfactorily set up in all the estates in which it is being established at present, we will certainly move on to other estates. Because the scheme seems to have proved itself as a kind of pilot scheme, it seems to be worthwhile. It has very great dividends in terms of creating public awareness of the problems of environmental pollution in the estates, and for that reason we do feel it is worth taking a lot of trouble.
Redevelopment of Rennie's Mill
2. MR GILBERT LEUNG asked (in Cantonese): As regards the clearance of the existing 2. MR GILBERT LEUNG asked (in Cantonese): As regards the clearance of the existing cottage area in Rennie's Mill to make way for the development programme of that area, will the Government inform this Council:
(a) when the affected residents will be consulted about the details of when the affected residents will be consulted about the details of compensation; how the details of the compensation package will be worked out and in order to avoid confrontation, whether the case of the Kowloon Walled City Clearance will be taken into account in carrying out the clearance;
(b) whether all of the affected households and commercial undertakings will be (b) whether all of the affected households and commercial undertakings will be resettled in the same district;
(c) what offer will be made in the reprovisioning of community facilities and (c) what offer will be made in the reprovisioning of community facilities and schools; and
(d) what (d) what channels of appeal are available to those residents who feel aggrieved? channels of appeal are available to those residents who feel aggrieved?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the Administration will advise the residents affected by the clearance of the Rennie's Mill cottage area of the rehousing and other arrangements in September this year. It is not possible at this stage to reveal the details of the ex gratia compensation
package which are still being worked out but in general they will follow the normal terms for clearance of cottage areas, that is, housing needs for the eligible will be met by resettlement and ex gratia payments will be made to households and businesses eligible under standard rules. As Members will appreciate, the Kowloon Walled City clearance was not a cottage area clearance but a unique case by any standards. Its ex gratia compensation arrangements were never intended to be taken, and have not been taken, as a precedent for other government development clearances.
Rennie's Mill households affected will be offered rehousing in a new public Rennie's Mill households affected will be offered rehousing in a new public housing estate in Tseung Kwan O which is due to be completed in February 1993. There should thus be adequate time for housing before the physical clearances which will take place between May and October 1993. Requests for rehousing elsewhere will also be accommodated subject to availability and other commitments. As implied earlier commercial undertakings affected by the clearance will not be reprovisioned, but the operators, if eligible, will be paid ex gratia allowances.
The problems of relocating community facilities have been under discussion with The problems of relocating community facilities have been under discussion with their sponsors since 1990 and help with removal or reprovisioning will vary according to the needs of each case and an evaluation by the appropriate department of the service provided by each to the community. These discussions and arrangements are well in hand. Agreement has also been reached with the operators on the future of the schools affected. Two publicly funded schools are under construction in Tseung Kwan O and a site has been provisionally reserved for a privately funded one subject to satisfying certain land grant conditions.
The allowances payable for affected households and businesses are ex gratia and standardized, so that there is little scope for appeal over the rates, although these are revised regularly. If people are not satisfied with their housing allocation, there is an avenue of appeal to the Housing Authority's Management and Operations Committee.
MR GILBERT LEUNG (in Cantonese): Mr Deputy President, Rennie's Mill presently has a population of 6 500. Among them, over 1 300 are elderly aged above 60 and more than 300 of them are single and have to rely on public assistance. Will the Administration inform this Council how this group of old people will be resettled and what community facilities will be provided for them, so that they can be properly looked after?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, in every clearance of cottage areas or squatter huts there are of course elderly people, young people and able-bodied people. Therefore that is the reason why the reception estates also have to have community facilities for all types of people. As I said in my main answer, the operators of the community facilities in Rennie's Mill are all discussing with the authorities the question of removal, either to the new area or into Tseung Kwan O or elsewhere. But I think Mr LEUNG can be reassured that the Housing Authority plans to have the full range of facilities within the estate.
Regarding the needs of the old people themselves, again as far as clearance is concerned, the terms will be standard; if the old people do have special needs then it may be a question of special help on another network. As I said, the proportion of old people in this estate may be high, but nevertheless the clearance terms are designed for a cross section of population.
MR PANG CHUN-HOI (in Cantonese): I am glad to learn that the Administration has reached an agreement with the schools in Rennie's Mill. Will the Administration inform this Council whether it covers all the schools, including the subsidized and the private ones?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, I do not have all the details of the arrangements about these schools. I understand that in respect of the subsidized schools, agreement has been reached about their resettlement arrangements, and as far as the private school is concerned, the land terms are still under discussion.
MRS ELSIE TU: Mr Deputy President, the third paragraph of the reply says that there will be two public schools and one privately funded school. Would the Secretary inform us whether the schools provided will be both primary and secondary, and whether there will be any provision for pre-primary education and child care centres?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, I understand that
both secondary and primary schools are provided and the community facilities of which I spoke include pre-primary and kindergarten facilities.
MISS EMILY LAU (in Cantonese): Mr Deputy President, the residents of Rennie's Mill have mentioned to me time and again that there are special political and historical reasons for them to live in Rennie's Mill. They also presented papers to me to prove that the Administration had promised them that they could live there permanently. But now they have to move out of Rennie's Mill. They hope that they will be given an ex-gratia allowance though it may not be the same as that of Kowloon Walled City. Could I ask the Administration whether their demands are reasonable and whether they will be considered?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, in my answer I made it clear that the domestic allowances would be standardized and they would also be ex gratia. The Government is treating this clearance as a clearance of a cottage area, which it in fact is. Obviously, the ancient history of Rennie's Mill is part of the history of Hong Kong and the politics are well known. But as far as the
clearance is concerned, for many years now it has been a cottage area and for many years the Government has been clearing the cottage areas one by one. And as cottage area tenants, the security of tenure has been limited to that provided under the Cottage Area Tenancy Agreement. In the circumstances, as they are moving into modern public housing in Tseung Kwan O with good facilities and are receiving the kind of allowances that anybody else in Hong Kong in the same position would receive, I think that the treatment must be considered to be totally reasonable.
MR FREDERICK FUNG (in Cantonese): Mr Deputy President, expenditure on the site formation work of public housing estates has always been borne by the central Government. In the clearance and redevelopment of Rennie's Mill, the Government however is not going to have any commitments on the site formation and road network projects but instead would shift the responsibility to the Housing Authority. I understand that the site formation work of Rennie's Mill will cost about $1 billion. Could I ask the Administration whether consideration has been given to compensating the Housing Authority so that it can make better use of its financial resources in developing its public housing programme?
DEPUTY PRESIDENT: How is that a supplementary question to the main question or answer, Mr FUNG?
MR FREDERICK FUNG (in Cantonese): Because the Housing Authority stood the loss due to the clearance of the Rennie's Mill and we take that as important as any loss that may be incurred on the public.
DEPUTY PRESIDENT: Sorry, that is out of order, Mr FUNG.
MR LEE WING-TAT (in Cantonese): Mr Deputy President, the Secretary has mentioned in his reply that the Administration would try its best to rehouse the residents to nearby places. I understand that for historical and political reasons, there are many single elderly people living in Rennie's Mill. As there is a very limited supply of public housing units for single persons in Eastern and Central Kowloon, will the Administration assure this Council that the elderly will not be forced to share a unit or to live in some old units as a result of the clearance?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, I can only give some undertaking that the clearees of Rennie's Mill will be treated as clearees are by the Housing Authority in the normal way for a cottage area clearance.
Financial assistance to the Open Learning Institute
3. DR SAMUEL WONG asked: In view of the fi 3. DR SAMUEL WONG asked: In view of the fi DR SAMUEL WONG asked: In view of the financial stringency experienced by the Open nancial stringency experienced by the Open Learning Institute of Hong Kong, will the Government inform this Council whether, and if so, what financial assistance will be available to the Institute?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, our policy on funding for the Open Learning Institute (OLI) is based on the Finance Committee's decision of 14 December 1988, namely that the OLI should become self-financing at least on its recurrent account by 1993-94. As part of that decision, a setting up grant of $55.8 million was provided to the Institute to cover expenditure on capital items. In
addition, an annually recurrent but decreasing grant was made for the financial years 1989-90 to 1991-92, and provision for a further grant has been included in the 1992-93 Draft Estimates. It is our intention that no further government subvention would be given as from the 1993-94 financial year.
So far, in each of the three preceding financial years, the OLI has not found it necessary to seek supplementary funding from the Government; it has, in fact, had a small surplus on its recurrent account. This is clear testimony to the OLI management's skill and determination to develop within its budget ceiling.
However, the OLI's Development Plan for 1991-1996 indicates that it may not be However, the OLI's Development Plan for 1991-1996 indicates that it may not be able to be entirely self-financing by 1993-94 if it is to achieve all the goals set by the Planning Committee. The Institute is currently considering a number of cost saving and income generating strategies to overcome this problem. Nevertheless, it is already clear that the Institute will only be able to achieve its self-financing goal if, in addition to these strategies, it can be relieved of the burden of a
commercial rental for its premises. Payment of rent by the OLI represents roughly 10% of its recurrent expenditure.
The OLI has put forward a proposal to relieve itself of the burden of commercial rent by establishing a purpose-built headquarters. This proposal, which includes an application for a land grant, is being considered by the Government. We are also considering an application from the OLI for a loan to meet half of the cost of
constructing its own headquarters, which is very roughly estimated to cost $200 million. In addition, we have made available to the Institute an empty school building which, with certain alterations and renovations, could be used as extra classrooms and storage space.
DR SAMUEL WONG: Mr Deputy President, one of the reasons for placing the OLI on a financially short lease was the expectation that the OLI would derive material benefits, such as the use of space and library facilities from its consortium. The consortium is made up of the UPGC-funded institutions. Will the Government inform this Council how effective this consortium has been in minimizing the OLI's operating costs?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the original intention was that the OLI, operating in a consortium with the UPGC-funded institutions, would be able to achieve several things: first, to draw on the courses, research and teaching
expertise of the publicly funded institutions; secondly, to share access to library and other facilities where possible; and thirdly, to share development plans in order to avoid overlap in the provision of continuing education.
A recent report undertaken by the OLI's management consultants reveals that the consortium is not yet operating very effectively on a day-to-day basis. But it is early days and once the market for privately funded tertiary courses stabilizes, it could be expected that more collaboration will take place to ensure maximum mobility of students through credit transfer arrangements. The OLI does have access to the listings of library holdings in the UPGC-funded institutions. Meanwhile, the OLI has also had some success in establishing resource sharing arrangements with schools with spare space in non-school hours, which welcome access to OLI teaching equipment. This kind of co-operation may also be developed within the consortium. As the OLI seeks to meet the demands for higher level courses, it may explore the possibility of contracting out to the institutions of the consortium such higher level courses that it would not be so cost effective for the OLI itself to develop and run.
MR MOSES CHENG: Mr Deputy President, would the Secretary inform this Council whether the Government would be prepared to consider any form of financial assistance to needy students of the OLI?
DEPUTY PRESIDENT: That is slightly at a tangent to the main question. Secretary for Education and Manpower, do you have the answer?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the question was actually set down as one of the guidelines for the Planning Committee itself to consider. But basically the primary objectives for the provision of open education at post secondary level were largely to provide a second chance for those who had to forgo or were denied the opportunity of further education when they left school, to provide continuing education to update and enhance the training of those who completed their further education at the beginning of their careers and to provide retraining for those who need to change or extend their career or vocational skills later in life. Basically, the profile of students at the OLI is such that they are generally more mature: their average age is 29 years; 96% of them are in full-time jobs; and most of them have an average working experience of seven or eight years. Basically these
students, we reckon, should in most cases be well able to meet the cost of their own continuing education. At this moment in time, Mr Deputy President, there is no intention to provide financial assistance to students, but of course if a situation should arise where a need to consider such assistance is proven, then the Administration will as usual be prepared to look at it.
DEPUTY PRESIDENT: Will Members try to keep their supplementaries to financial assistance to the Institute?
MR ERIC LI: Mr Deputy President, I wish to declare my interest as the Treasurer of the OLI. In view of the fact that moving to a new purpose-built building will take a bit of time to materialize and that the rental agreement in respect of the premises owned by the Government is likely to expire before that happens, will the Government inform this Council whether it would consider freezing the rent or charging a more favourable rent than the commercial market rent to avoid the temporary moving costs?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I would not rule out this possibility although I would have to say that any such arrangement would amount to a hidden subsidy which would be contrary to the decision of the Finance Committee.
MR CHEUNG MAN-KWONG (in Cantonese): Since it is the Administration's intention to stop subventing OLI as from 1993-94, will the Administration inform this Council whether assistance will be provided by the Administration to enable OLI to proceed with its Development Plan in accordance with the established policy if, after adopting the cost saving and income generating strategies and being relieved of the burden of a commercial rental as have been mentioned in the main reply, the Institute is still unable to be entirely self-financing? If yes, what will be the form of
assistance; and if no, does that suggest that the Institute will have to abandon part of its development targets?
SECRETARY FOR EDUCATION AND MANPOWER (in Cantonese): Mr Deputy President, based on the past performance of the OLI and the financial estimates laid down in its Development Plan, the OLI will be able to generate income not only to cover its direct
costs but also the indirect ones. If only the Institute can continue identifying cost saving and income generating strategies and, most important of all, relieve itself of the burden of a commercial rental for its premises, there should not be any problem for the OLI to achieve a sound and healthy budget. As to whether there will be circumstances which require the Administration to re-examine the financial position of the OLI, I would prefer not to rule this out though, according to the information that we have, this should be very unlikely.
MR WONG WAI-YIN (in Cantonese): Mr Deputy President, I understand from the Secretary's reply that he would like the OLI to become self-financing very soon and to adopt some cost saving and income generating strategies. Could I ask whether this implies that income is to be generated by way of increase in course fees so as to enable the OLI to attain the target of self-financing? Moreover, given the high drop-out rate of OLI students recently, does the Administration have any measures to effect an
improvement and will a corresponding increase in financial assistance be given if no improvement can be made?
SECRETARY FOR EDUCATION AND MANPOWER (in Cantonese): Mr Deputy President, the OLI will be responsible for setting the level of course fees though the Administration will be consulted in this regard. Increasing course fees is only one way of generating income; others include co-operation with other tertiary institutions to maximize the utilization of available resources.
Regarding the drop-out of students, our information shows that basically the present completion rate of the courses in the OLI compares very favourably with that of similar institutions in other places or countries.
Moreover, in the case of the OLI, it is not uncommon that a student, upon completion of a course, will not enrol at once in another course. This cannot be taken as dropping out as students of the OLI are in full time jobs and the whole idea of open learning is to allow students to acquire knowledge at their own pace and by using their own time. After completing a course, a student may, for some personal or other reasons, say, getting married or because of job needs, choose to stop for a while before embarking on a new course. Moreover, the credits he has earned can be accumulated. So it is very likely that a student may choose to stop for a while, upon completion of a course, before continuing with his studies. This lapse period
in the course of a student's studies should in no way be regarded as dropping out.
MR TIK CHI-YUEN (in Cantonese): Mr Deputy President, several Members and I met with the representives of the student union of the OLI this morning and were told that the teaching facilities and the learning environment of OLI were far from favourable. They also said that students of the OLI had to pay high course fees because of the limited government financial assistance to the Institute. Could I ask whether the Administration will consider it necessary to review the policy it made in 1988
regarding the self-financing of the OLI?
SECRETARY FOR EDUCATION AND MANPOWER (in Cantonese): Mr Deputy President, at present we have no plan to carry out any comprehensive review. But certainly we have always been in close contact with the OLI and there are also representatives from the Education and Manpower Branch on the Council of the OLI. As I said a while ago, given the past and the projected financial position of the OLI, the Institute will not encounter any financial problem if ways can be identified to relieve OLI of the burden of a commercial rental.
As to the standard of some of the facilities, I believe that there will certa As to the standard of some of the facilities, I believe that there will certainly be improvement if the OLI develops to the stage of having its own campus or school premises.
MRS RITA FAN: Mr Deputy President, it appears that the OLI will not be able to become totally self-financing until it can be relieved of the burden of this commercial rental. Can the Secretary advise us when a decision will be taken on the land grant and the loan? And during the lead-time which is required for the headquarters to be built if the decision is a positive one, is the OLI expected to be running on a deficit budget?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I am unable to indicate a precise timing at the moment although I can assure Honourable Members that the matter is being looked at within the Government and is being looked at actively. As far as the expenditure on commercial rental is concerned, at the moment for 1991-92 the expenditure on rental is $17.5 million per year. It will remain at that level in 1992-93 and, as far as the budget is concerned, we expect that there would still be
a small surplus in 1992-93.
MR HOWARD YOUNG: Mr Deputy President, regarding the small surplus on the recurrent account of OLI, can the Secretary please advise this Council whether the intention is to claw back this surplus in one form or another, or whether the OLI will be allowed to spend this money as it sees fit in accordance with its objectives?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I do not think the question of a claw-back was considered. It was certainly not part of the Finance Committee decision.
MR JIMMY McGREGOR: Mr Deputy President, will the Secretary agree that the increases in fees for OLI students should be kept at the rate of inflation during the next few years?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the level of fees is a matter for the OLI Council to determine in consultation with the Government. I do not think that it would necessarily be right to lay down any hard and fast rule as regards tying the level of fees to inflation. There may be considerations which suggest at a particular time that the rate of increase should be higher or lower than the rate of inflation.
MR HENRY TANG: Mr Deputy President, I first would like to declare my interest, as a member of the UPGC. Will the Government inform this Council why the OLI should not be brought under the ambit of the UPGC so that a more co-ordinated effort can be made on its development? Under existing conditions there is every likelihood that the OLI and its interests could be taken as marginal in the course of expansion of tertiary education. This is detrimental to the long-term outlook of the OLI.
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the question of whether funding for the OLI should be channelled through the UPGC was actually considered in detail by the Planning Committee for the OLI. The Committee felt that while there were advantages in being funded through the UPGC, there were also conceptual and
practical difficulties. The Committee eventually concluded in its Final Report, and I quote:
"The advantages of UPGC association notwithstanding, the OLI should more appropriately be funded directly by the Government for the following reasons:
(a) The UPGC plans on the basis of a triennium. Th (a) The UPGC plans on the basis of a triennium. Th The UPGC plans on the basis of a triennium. The OLI which relies on being e OLI which relies on being able to respond quickly to market demands by adding or dropping programmes may not fit in comfortably with the normal UPGC planning cycle.
(b) The OLI is expected to become self-financing within a matter of only a few (b) The OLI is expected to become self-financing within a matter of only a few years. The provision of government funds on a regular and continuing basis is not required under these circumstances."
In any case, the OLI and UPGC-funded institutions have completely different goals and target groups. The OLI aims to provide a second chance of tertiary education, a channel for continuing education, and an opportunity of retraining for adults who generally have the ability to pay for their own education.
MR ALBERT CHAN (in Cantonese): Mr Deputy President, the lack of facilities of the OLI, such as that of a library, will adversely affect the students in their studies. Will the Administration consider giving the OLI additional funds so as to improve the situation?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, as I indicated in my main reply, the Government is looking at ways which will assist the OLI through, for example, finding ways of relieving it of the burden of paying a commercial rent: we are considering the application from the OLI for a loan to help construct its own headquarters; we have provided an empty school building to provide more space for study and storage purposes and so on. Although these do not necessarily take the form of financial provision or financial assistance, I believe that they are also very important and practical ways in which we can assist the OLI in achieving its objectives.
MR PETER WONG: Mr Deputy President, as Deputy Chairman of the OLI, I wish to thank the Government's generosity in considering a loan to meet half the cost of
constructing the OLI's own headquarters. Does the need for the OLI to become self-financing mean that it will have to make money out of its existing students so that the capital costs, such as the building, as well as development of new courses can be paid for?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I can only reiterate that the policy on funding for the OLI is that the OLI should become self-financing, at least on its recurrent accounts, by 1993-94. This is the current policy on the OLI and basically, I think, the guideline will continue to be that the OLI should be a self-financing institution. If, of course, there are particular capital items for which assistance is sought by the OLI, then the Administration will be prepared to look at it and consider it on a case-by-case basis.
Written answers to questions
Chek Lap Kok airport
4. DR SAMUEL WONG asked: As the second generation supersonic aircraft may be in 4. DR SAMUEL WONG asked: As the second generation supersonic aircraft may be in service by 2005, will the Government inform this Council whether steps will be taken to ensure that such aircraft will be environmentally and operationally compatible with the Chek Lap Kok airport?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, Chek Lap Kok airport is being planned as an airport for the future which will be capable of handling the future generations of aircraft while at the same time being an operationally safe, efficient and environmentally acceptable international airport.
On the basis of what we know at present about design considerations of the second generation supersonic aircraft, it is likely that these aircraft will be powered by engines whose noise emissions would be in full compliance with the noise standards currently set by the International Civil Aviation Organization. For such aircraft to be a commercially viable proposition, the manufacturers will, no doubt, have
considerable incentive to make them environmentally and operationally compatible with the world's major airports, of which Chek Lap Kok will be one.
For these reasons, the noise generated on landing and take-off by such aircraft For these reasons, the noise generated on landing and take-off by such aircraft is expected to be similar to that generated by the most modern subsonic aircraft such as the Boeing 747-400, MD-11 and Airbus 320 currently flying into Hong Kong. No special steps are envisaged to be needed to make them compatible with Chek Lap Kok.
Post-retirement employment of senior civil servants
5. MISS EMILY LAU asked: In view of the public's growing disquiet over senior civil 5. MISS EMILY LAU asked: In view of the public's growing disquiet over senior civil servants joining the private sector shortly after retirement, will the Administration inform this Council what policy guidelines are used to determine whether a retired senior civil servant may or may not work for a particular private company and whether the Government will consider tightening these guidelines in response to public
concern?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, under the provisions of the two Pensions Ordinances, a retired officer requires the Governor's prior approval before taking up any post-retirement employment or engaging in any business activity, the principal part of which is carried on in Hong Kong, within two years of his
retirement. In the case of an officer at Secretary level or above the period is five years. Non-compliance with this requirement may result in the suspension of pension.
An Advisory Committee on Post-Retirement Employment, which was appointed by the An Advisory Committee on Post-Retirement Employment, which was appointed by the Governor in October 1987, also considers and advises the Governor on all individual applications from directorate officers and on any other applications which may be referred to it by the Secretary for the Civil Service.
The basic principle is that there should be no impropriety in the proposed appointment, that is, there should be no conflict with the public interest. In this respect, account will be taken of:
(a) whether the (a) whether the whether the officer had been involved in policy formulation or decision, the officer had been involved in policy formulation or decision, the effects of which could have benefitted his prospective employer;
(b) whether the prospective employer might gain an unfair advantage over (b) whether the prospective employer might gain an unfair advantage over competitors because of the officer's previous knowledge and experience; (c) the public perception of the officer taking up the proposed appointment; and (c) the public perception of the officer taking up the proposed appointment; and
(d) especially for senior officers, whether the proposed appointment would (d) especially for senior officers, whether the proposed appointment would result in an undesirably high public profile.
A sanitization period from the cessation of active service may be applied to A sanitization period from the cessation of active service may be applied to directorate officers, where this is considered appropriate.
The Advisory Committee takes all possible care to see that no unfair advantage is gained, or impropriety arises, as a result of post-retirement employment. But it should be borne in mind that former civil servants with substantial working experience can be of considerable value to the community and the workforce as a whole and their continued employment in the private sector should not be discouraged.
The Administration has no plans to further tighten the policy guidelines for post-retirement employment.
Appointment of chairman of the Airport Authority
6. MISS EMILY LAU asked: In order to prevent conflicts of interest, will the 6. MISS EMILY LAU asked: In order to prevent conflicts of interest, will the Government inform this Council whether people who have business or contractual involvements in the new airport and related infrastructural projects would be considered for the job of Airport Authority Chairman?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, it is not proposed to consider for appointment as Chairman of the Airport Authority any person who has a major and direct business interest in the new airport. However, it would be unwise to establish any hard and fast rules such as eliminating from consideration any person who had an interest, however remote and minor, in the new airport. It would be necessary to consider the extent and significance of any involvement and whether such
involvement creates any real and unresolvable conflict of interest.
Services provided for single-parent families
7. MR NG MING-YUM asked: Will the Government inform this Council: 7. MR NG MING-YUM asked: Will the Government inform this Council:
(a) how many single-parent families there were in the territory and their (a) how many single-parent families there were in the territory and their distribution among individual administrative districts in each of the past three years; what the projected change in these figures in the foreseeable future is;
(b) what kinds of direct and indirect support services the Government is now (b) what kinds of direct and indirect support services the Government is now offering to these families, and what disparity, if any, there is between the actual provision of such services and that as planned by the Government;
(c) whether the Government has assessed the level of direct and indirect serv (c) whether the Government has assessed the level of direct and indirect services currently being provided for single-parent families; if so, what the detailed findings are; and
(d) what me (d) what me what measures will be taken and what resources will be deployed by the asures will be taken and what resources will be deployed by the Government in the foreseeable future to improve the provision of direct and indirect services for single-parent families?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the answer to the four-part question is as follows, seriatim:
(a) Statistics (a) Statistics
Statistics on single-parent families by administrative districts in 1991 are as follows:
Single-parent households by district board district in 1991
Central and Western 1 243 Central and Western 1 243
Wan Chai 1 096 Wan Chai 1 096
Eastern 2 868 Eastern 2 868
Southern 1 518 Southern 1 518
Yau Tsim 594 Yau Tsim 594
Mong Kok 1 069 Mong Kok 1 069
Sham Shui Po 2 302 Sham Shui Po 2 302
Kowloon City 2 365 Kowloon City 2 365
Wong Tai Sin 2 199 Wong Tai Sin 2 199
Kwun Tong 3 910 Kwun Tong 3 910
Kwai Tsing 3 262 Kwai Tsing 3 262
Tsuen Wan 1 465 Tsuen Wan 1 465
Tuen Mun 2 578 Tuen Mun 2 578
Yuen Long 1 362 Yuen Long 1 362
North 1 086 North 1 086
Tai Po 1 160 Tai Po 1 160
Sha Tin 3 388 Sha Tin 3 388
Sai Kung 641 Sai Kung 641
Islands 150 Islands 150
Total: 34 256 Total: 34 256
Note: Excluding 20 single-parent households in the marine population.
There are no available figures for 1989 and 1990. It is difficult to project changes in these figures in the foreseeable future.
(b) Support (b) Support Support services services
The support services offered to single-parent families include : (i) Financial assistance (i) Financial assistance
Single-parent families facing financial hardship can apply for assistance under the Public Assistance Scheme. In addition to the basic rate, special grants are provided to meet the needs of single-parent families, including fees for children to attend a day creche, day nursery or after school care programme or to participate in other social activities which help to alleviate the social deprivation caused by the absence of one parent. Since November 1991, a Child Supplement of $185 per child per month has been introduced to provide an allowance for dependent children of families on Public Assistance. Whenever necessary, grants can be made from charitable trust funds administered by the Department to meet other financial needs of single-parent families.
(ii) Housing assistance (ii) Housing assistance
Public housing can be arranged for eligible single-parent families on compassionate grounds. Since July 1991, persons with dependent children can be granted a conditional tenancy in a public housing estate, if they are undergoing divorce proceedings and have a genuine need for housing. The tenancy will be confirmed when
they have obtained legal custody of their children through court proceedings. (iii) Child care services (iii) Child care services
A variety of child care services, including day creches, day nurseries, the occasional child care service, after school care programmes, are available to lessen the burden of single parents in taking care of their children. If family circumstances warrant, residential care services for children from single-parent families can also be
arranged.
(iv) Family support services (iv) Family support services
Home help service, including home delivery of meals and assistance with household chores, is provided to those who need it. Family aide service can also be provided to single parents who require training in home management and child care.
(v) Counselling (v) Counselling
Along with other services, counselling is offered to single parents to help them cope with stress and emotional problems arising from single parenthood. Professional guidance on proper child care and discipline is also provided. Support and therapeutic groups are organized for single parents to provide them with a forum to share experiences and to discuss problems with others. Mutual help groups are also formed to provide single parents with a social network for mutual help and support.
Demand is fully met in most support services. Shortfalls are identified in the provision of day nurseries, day creches and family aide and home help services.
(c) Assessment (c) Assessment
Services for the family and child care, including support services for single-parent families, were reviewed in the White Paper on Social Welfare into the 1990s and Beyond. The plans for future development of services are set out in the White Paper.
(d) Expansion of services (d) Expansion of services
The Government is committed to expanding child care and family support services.
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 needy and single parent families. Expansion of family aide and home help services has also been
accorded priority. It is planned that 31 additional family aide workers and 44 additional home help teams will be provided by 1995-96.
Risk of windshear at Chek Lap Kok airport
8. MR ALBERT CHAN asked: Will the Government inform this Council of the conditions 8. MR ALBERT CHAN asked: Will the Government inform this Council of the conditions and the impacts of the windshear at the Chek Lap Kok airport site; whether arriving and departing aircrafts will be affected by the windshear conditions there and if so, what measures will be taken by the Government to reduce such impacts and what cost will be incurred?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, windshear, a change in wind direction and/or wind speed over a given distance, is an occasional occurrence usually associated with weather phenomena like thunderstorms. While windshear will occur at Chek Lap Kok in certain circumstances, its expected incidence is well within all accepted normal standards for the operation of an international airport.
When thunderstorms occur at Chek Lap Kok windshear will occur but its duration is likely to be short (a matter of minutes) and disruption to air traffic would be only minor.
The new airport may also be affected on rare occasions by "lee wave" windshear The new airport may also be affected on rare occasions by "lee wave" windshear which is caused by the topography of Chek Lap Kok Island and the high land immediately to the south of the airport. In the case of this type of windshear, disruption to airport movements is likely to last slightly longer. Extensive testing has shown that such interruptions will not exceed 0.5% of the airport operation time in total, a figure well within internationally-accepted guidelines
Most windshear conditions cause no threat to the operation of the type of large passenger aircraft which will be using the new airport. In severe conditions, however, aircraft movements would be subject to delay until conditions had improved.
To enhance the safety of aircraft operations, the Provisional Airport Authority's Master Plan Consultants have recommended that a system should be installed to detect windshear conditions and alert pilots to the presence of windshear and its severity. Pilots can then make informed decisions whether to proceed with the intended operation,
or to take action to avoid the windshear. The cost of the system recommended by the Master Plan Consultants is approximately HK$63 million. This includes the cost of further investigation and system design work as well as equipment cost.
Police courtesy
9. REV FUNG CHI-WOOD asked: 9. REV FUNG CHI-WOOD asked: REV FUNG CHI-WOOD asked: With regard to the manners of police officers, will the With regard to the manners of police officers, will the Government inform this Council:
(a) whether any basic training on courtesy to members of the public and those (a) whether any basic training on courtesy to members of the public and those under investigation is included in the training programmes for junior police officers; what the contents and standards of such training programmes are; and
(b) how complaints against police officers for bad manners such as the use of (b) how complaints against police officers for bad manners such as the use of abusive language are handled by the Police Office?
SECRETARY FOR SECURITY: Mr Deputy President, courtesy is emphasized during the basic training of junior police officers at the Police Training School (PTS) and in subsequent training. The training is conducted with the assistance of officers experienced in handling public relations.
During the training at PTS, lectures, discussions and video presentations are During the training at PTS, lectures, discussions and video presentations are organized for junior police officers on a wide range of topics relating to courtesy. These topics include the correct manner of dealing with members of the public in order to elicit their co-operation, and ways of avoiding friction and handling people who are unco-operative.
During subsequent in-service training sessions, junior police officers participate in case studies of substantiated complaints investigated by the Complaints Against Police Office (CAPO) involving rudeness, impoliteness and misconduct. Lectures on the proper conduct and manner of an officer in stop and search operations, raids and in taking statements are also organized for in-service
and promotion courses.
Complaints against police officers for bad manners such as the use of abusive Complaints against police officers for bad manners such as the use of abusive language are handled in the same way as other complaints investigated by CAPO. There are standard procedures for CAPO to follow in investigating complaints against police officers. Results of investigations by CAPO are examined by the Police Complaints Committee to ensure that the investigation has been conducted in a thorough and
impartial manner.
Funeral pavilion on Cheung Chau
10. MR LEE WING-TAT asked: Will the Government inform this Council o 10. MR LEE WING-TAT asked: Will the Government inform this Council o MR LEE WING-TAT asked: Will the Government inform this Council of the progress f the progress in the Government's consideration of granting a site for constructing a funeral parlour in Tai Shek Hau, Cheung Chau; and whether it will consider an alternative site on the peak of Cheung Chau near the cemetery for such facilities so as to minimize the nuisance to the residents?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, no decision has yet been taken by the Administration in response to a request made by the Cheung Chau local community for the construction of a funeral pavilion or hall (but not funeral parlour) with private funds. Several possible sites, including Tai Shek Hau and the peak of Cheung Chau, have been identified. The Administration is consulting the local community on the matter. But the issue is complex, as the views of the local community, the demand for a funeral pavilion, and the desirability to locate the site reasonably away from residential units while at the same time ensuring that it is relatively easily accessible, all must be taken into account as far as possible before a decision is made.
Government appointed directors on boards of statutory corporations and private/public companies
11. MR STEVEN POON asked: Will the Administration inform this Council: 11. MR STEVEN POON asked: Will the Administration inform this Council:
(a) of the statutory corporatio (a) of the statutory corporatio of the statutory corporations and private/public companies which have ns and private/public companies which have government appointed officials serving as members of their boards;
(b) how these officials deal with the likely conflicting role of looking after (b) how these officials deal with the likely conflicting role of looking after the interests of the statutory corporations and private/public companies and at the same time, protecting the interests of the Government and the public; and
(c) in view of the possible conflict of interests in their role, whether (c) in view of the possible conflict of interests in their role, whether consideration will be given to undertaking a review of the system in the near future?
CHIEF SECRETARY: Mr Deputy President,
(a) A list of public/private companies and statutory corporations with (a) A list of public/private companies and statutory corporations with Government appointed directors on their boards is at Annex.
(b) The role of government appointed directors is to represent the Government (b) The role of government appointed directors is to represent the Government and public interests and to provide a ready means whereby Government policies can be communicated effectively to the company or the corporation. Some of the Ordinances providing for the appointment of government directors, such as the Public Bus Services Ordinance (Cap 230) and the Ferry Services Ordinance (Cap 104), have express provisions requiring the government appointed directors to represent the interests of the Government and the public in priority to those of the company as a whole. Such provisions, where available, provide the necessary protection to the government directors against conflict of interest. When such express provisions are absent, the government appointed directors are given guidelines and instructions on their role and responsibilities on the boards and the procedure to follow should there be a potential conflict of interest -- depending on the circumstances, they should declare an interest and/or refrain from voting and, if in any doubt, seek advice from the Attorney General's Chambers.
(c) Government directors are appointed to public/private companies and statutory (c) Government directors are appointed to public/private companies and statutory corporations only where there are strong justifications for their presence on the boards to represent the government and public interests. It is intended that such appointments should, as far as possible, be provided for by statute with express provisions defining the role and responsibility of the government directors to ensure that their position on the board is properly safeguarded. Where such provisions are not available at present, consideration will be given to amending the law to include them when the opportunity arises, such as when the relevant Ordinance is next amended.
Annex
List of Companies and Statutory Corporations having Government Appointed Directors Public/private companies
1. China Motor Bus Company Limited 1. China Motor Bus Company Limited
2. Clothing Technology Demonstration Centre Company Limited 2. Clothing Technology Demonstration Centre Company Limited 3. Hong Kong Air Cargo Terminal Limited 3. Hong Kong Air Cargo Terminal Limited
4. Hong Kong Building and Loan Agency Limited 4. Hong Kong Building and Loan Agency Limited
5. Hong Kong Design Innovation Company Limited 5. Hong Kong Design Innovation Company Limited
6. Hong Kong IPM Manpower International Limited 6. Hong Kong IPM Manpower International Limited
7. Hong Kong Nuclear Investment Company Limited 7. Hong Kong Nuclear Investment Company Limited
8. Hong Kong Plastics Technology Centre Company Limited 8. Hong Kong Plastics Technology Centre Company Limited
9. Hong Kong Quality Assurance Agency 9. Hong Kong Quality Assurance Agency
10. Hong Kong Telecom International Limited 10. Hong Kong Telecom International Limited
11. Hong Kong Tele 11. Hong Kong Tele Hong Kong Telephone Company Limited phone Company Limited
12. Hong Kong and Yau Ma Ti Ferry Company Limited 12. Hong Kong and Yau Ma Ti Ferry Company Limited
13. Kowloon Motor Bus Company (1933) Limited 13. Kowloon Motor Bus Company (1933) Limited
14. Tate's Cairn Tunnel Company Limited 14. Tate's Cairn Tunnel Company Limited
15 New Hong Kong Tunnel Company Limited 15 New Hong Kong Tunnel Company Limited
16. New Lantao Bus Company (1973) Limited 16. New Lantao Bus Company (1973) Limited
17. Product 17. Product Productive Heat Treatment Company Limited ive Heat Treatment Company Limited
18. Provisional Hong Kong Industrial Technology Centre Company Limited 18. Provisional Hong Kong Industrial Technology Centre Company Limited 19. Star Ferry Company Limited 19. Star Ferry Company Limited
Statutory corporations
1. Hong Kong Export Credit Insurance Corporation 1. Hong Kong Export Credit Insurance Corporation
2. Hong Kong Industrial Estates Corporatio 2. Hong Kong Industrial Estates Corporatio Hong Kong Industrial Estates Corporation
3. Land Development Corporation 3. Land Development Corporation
4. Mass Transit Railway Corporation 4. Mass Transit Railway Corporation
5. Ocean Park Corporation 5. Ocean Park Corporation
Street sleepers
12. MR HUI YIN-FAT asked: Will the Government inform this Council whether the 12. MR HUI YIN-FAT asked: Will the Government inform this Council whether the following measures will be considered so as to facilitate a prompt solution to the problem of street sleepers:
(a) Speeding up the review being conducted by the Working Group on Street Sle (a) Speeding up the review being conducted by the Working Group on Street Sleepers so that the review report can be finalized and its recommendations implemented as soon as possible;
(b) Providing stre (b) Providing stre Providing street sleepers with the appropriate vocational training as far et sleepers with the appropriate vocational training as far as possible so that manpower can be fully utilized; and
(c) Setting up multi-disciplinary teams comprising psychologists, nurses, (c) Setting up multi-disciplinary teams comprising psychologists, nurses, social workers, and so on to reach out to street sleepers and help solve their problems?
SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the answer to the three-part
question is as follows, seriatim:
(a) Working Group on Street Sleepers
Since its establishment in September 1991, the Working Group on Street Sleepers Since its establishment in September 1991, the Working Group on Street Sleepers has met regularly to discuss issues concerning street sleepers. Some of its recommendations, such as the urban hostel scheme for street sleepers and more flexible application of compassionate rehousing criteria for street sleepers, have already been implemented. The Working Group intends to complete its deliberations soon and produce a report later this year.
(b) Vocational training
At present, there is no vocational training catering especially for street sleepers. However, the Vocational Training Council, the Clothing Industry Training Authority, the Construction Industry Training Authority and other training centres operated by non-governmental organizations do provide a wide range of vocational training open to all.
According to the Annual Survey on Street Sleepers 1991 conducted by the Social According to the Annual Survey on Street Sleepers 1991 conducted by the Social Welfare Department in March last year, unemployment was not one of the main reasons cited by street sleepers for being homeless. The provision of vocational training for street sleepers will probably not have any major impact on the problem of street sleepers.
As regards employment, a street sleeper with normal working ability can be referred to the Local Employment Service of the Labour Department for job placement. Street sleepers who are mentally handicapped or ex-mental patients can be referred to the Selective Placement Division of the Labour Department. Street sleepers with social problems, such as drug addiction in the past or personality problems, can be referred to the Employment Service of the Hong Kong Council of Social Service for job placement.
(c) Outreaching service
Outreaching service for street sleepers is provided by the Family Services Centres and Outreach Teams of the Social Welfare Department. The services provided include counselling, financial assistance, referrals for residential care,
compassionate housing, medical treatment, drug treatment and rehabilitation and job placement, and assistance in the replacement of lost Hong Kong Identity Cards.
Although no formal multi-disciplinary teams have been set up to reach out to Although no formal multi-disciplinary teams have been set up to reach out to street sleepers, there has always been close co-operation amongst government departments to ensure that concerted efforts are taken to help street sleepers.
Gini Coefficient
13. DR CONRAD LAM asked 13. DR CONRAD LAM asked DR CONRAD LAM asked: In view of a record high Gini coefficient of 0.48 in Hong : In view of a record high Gini coefficient of 0.48 in Hong Kong for the year 1991, which was initially worked out from the statistics provided by the 1991 census, indicating an increasingly great disparity between the rich and the poor, will the Government inform this Council:
(a) whether it is one of its policy objectives to narrow the gap between the rich (a) whether it is one of its policy objectives to narrow the gap between the rich and the poor; and
(b) if so, what corresponding measures the Government has in hand to reduce the (b) if so, what corresponding measures the Government has in hand to reduce the disparity between the haves and have-nots?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, the Gini Coefficient, as a summary measure of the distribution of income, could in theory range from zero to one, with a higher value reflecting greater income diversity. According to the results of the latest population census, the Gini Coefficient based on household income is estimated at around 0.476 in 1991. This is not particularly high by international standards. Information available suggests that it is broadly comparable to those of the United Kingdom and Singapore, and not too much above those of the United States and Australia. A degree of income diversity is common even in the most economically advanced countries.
While there has been an increase in the Gini Coefficient for Hong Kong over the years, of greater significance is the fact that median household income has risen by 56% in real terms over the past decade. Moreover, substantial income growth is recorded for all income groups, including the lower income group. In general, the community is sharing in the fruits of Hong Kong's economic growth and prosperity.
Our policies and programmes are directed towards fostering an economic environment in which people can develop their talents and potential to the maximum extent possible. There are many opportunities for personal advancement and higher income irrespective of the social background of individuals. Indeed this is a key driving force behind Hong Kong's economic success.
At the same time, we provide specific support for lower income groups. For At the same time, we provide specific support for lower income groups. For example, around half of all employees, who have relatively lower income, do not pay tax. 37% of all households live in heavily subsidized public rental housing whilst public assistance provides a safety net for those unable to work or to earn enough to support themselves and their families. No one need be deprived of education or medical care through lack of means.
The Government believes that it is in the best interest of the community if we continue to adopt policies that facilitate economic growth, encourage initiative and enterprise, ensure equal opportunities for all coupled with specific programmes to support the lower income groups.
Sky rail
14. MR MAN SAI-CHEONG asked: Will the Government inform this Council: 14. MR MAN SAI-CHEONG asked: Will the Government inform this Council:
(a) what the presen (a) what the presen what the present position regarding the proposal for a "sky rail" from Hu t position regarding the proposal for a "sky rail" from Hunghom Bay Reclamation to Tsim Sha Tsui is;
(b) what criteria it will consider in accepting and approving the application (b) what criteria it will consider in accepting and approving the application for the proposed "sky rail"; and
(c) whether it will require an Environme (c) whether it will require an Environme whether it will require an Environmental Impact Assessment to be submitted ntal Impact Assessment to be submitted together with the application, in order to forestall noise pollution problems if the proposed "sky rail" is to be routed adjacent to the municipal parks, museums, and the Hong Kong Cultural Centre?
SECRETARY FOR TRANSPORT: Mr Deputy President,
(a) A private sector consortium has proposed building and operating a (a) A private sector consortium has proposed building and operating a
4.7- km elevated light rail system from Hunghom Bay to Tsim Sha Tsui. Following preliminary discussions with the company, it was decided that the concept of building such a system should be supported in principle but that further discussions should be held with the company to obtain more information about the project, particularly on its environmental impact and financial viability. The company has since provided some of this information but more is needed. Once all the relevant details have been received and evaluated, a decision will be taken on whether or not the Administration should negotiate with the company to build and operate the system.
(b) The main considerations to be taken into account in evaluating the company's (b) The main considerations to be taken into account in evaluating the company's detailed proposals include whether the system will:
(i) provide a real transport benefit and can be successfully integrated into (i) provide a real transport benefit and can be successfully integrated into general planning for the Kowloon peninsula;
(ii) satisfy Government's environmental protection standards; (ii) satisfy Government's environmental protection standards; (iii) meet appropriate safety and operating standards; and (iii) meet appropriate safety and operating standards; and
(iv) be viable to build and operate on a self-financing basis, without any (iv) be viable to build and operate on a self-financing basis, without any government subsidy.
(c) The construction and operation (c) The construction and operation The construction and operation of the system will not be authorized without, a of the system will not be authorized without, among other requirements, the production of a full Environmental Impact Assessment showing that it will satisfy the Government's environmental protection standards.
Crime situation of public housing estates
15. MR FREDERICK FUNG asked: Will the Government inform this Council of: 15. MR FREDERICK FUNG asked: Will the Government inform this Council of:
(a) the statistics on the different types of crimes committed in pubic housing (a) the statistics on the different types of crimes committed in pubic housing estates in the past five years;
(b) the crime rate in public housing estates as compared to the ov (b) the crime rate in public housing estates as compared to the ov the crime rate in public housing estates as compared to the overall crime erall crime rate of the territory; and
(c) the measures taken by the police and the Housing Department to improve the (c) the measures taken by the police and the Housing Department to improve the
security in public housing estates?
SECRETARY FOR SECURITY: Mr Deputy President, crime statistics for the years 1987 to 1991 in public housing estates and territory-wide are shown in the Annex. The statistics show that the crime rate in public housing estates is generally much lower than in the territory as a whole.
The police and the Housing Department take measures to prevent crime in the d The police and the Housing Department take measures to prevent crime in the design of new public housing estates in order to minimize opportunities for committing crimes. As residents move in, they are reminded of the importance of neighbourhood security through briefings and a tenant's handbook. Estate assistants and security guards are employed to patrol public housing estates. Local crime rates and topical issues are reviewed at District Fight Crime Committee, Area Committee and Mutual Aid Committee meetings at which both the police and the Housing Department are represented. As a result, additional measures have been introduced to improve the security of public housing estates by the provision of metal grilles and by modifications inside lifts.
The police carefully monitor the crime trends in housing estates, so as to ensure The police carefully monitor the crime trends in housing estates, so as to ensure that new problems are identified at an early stage. Their Crime Prevention Bureau also offers advice to residents on measures to prevent crime.
Annex
Reported Crime Cases and Crime Rates by Type of Crime in
Housing Authority Rental Estates and Overall Hong Kong
Reported Crime Cases
1987 1988 1987 1988 1989 1990 1991
HA HA HA HA HA Rental Overall Overall Overall Rental Overall Overall Rental Overall Rental Overall Overall Rental Overall Overall Overall Rental Overall Overall
Type of Crime (1) Estates Type of Crime (1) Estates Estates HK Estates Estates Estates HK Estates Estates Estates HK Estates Estates Estates HK Estates Estates Estates HK
Violent crime 1 739 Violent crime 1 739 8 903 1 641 8 893 1 540 10 000 1 510 9 405 1 398 9 144 1 398 9 144
against persons
Violent crime 1 524 Violent crime 1 524 6 566 1 545 6 831 1 450 7 721 2 169 9 415 2 158 10 414 2 158 10 414
against property
Burglary, theft and 6 356 Burglary, theft and 6 356 44 704 5 814 41 421 4 625 40 889 6 185 45 045 6 129 045 6 129 45 712
handling stolen
goods
Serious narcotics 1 229 Serious narcotics 1 229 4 143 1 907 5 527 1 618 5 040 1 159 3 604 900 604 900 900 2 998
offences
Preventive crime 804 Preventive crime 804 804 4 481 605 605 605 3 079 622 622 622 3 763 894 4 311 894 4 311 676 676 676 3 743
Other crimes 1 988 Other crimes 1 988 14 117 1 956 14 108 1 684 14 395 2 243 16 520 2 066 16 648 2 066 16 648
Total 13 640 Total 13 640 82 914 13 468 79 859 11 539 81 808 14 160 38 300 13 327 88 639
Crime Rate (2)
1987 1988 1987 1988 1989 1990 1991
HA HA HA HA HA Rental Overall Overall Overall Rental Overall Overall Rental Overall Rental Overall Overall Rental Overall Overall Overall Rental Overall Overall
Type of Crime (2) Estates Type of Crime (2) Estates Estates HK Estates Estates Estates HK Estates Estates Estates HK Estates Estates Estates HK Estates Estates Estates HK
Violent crime 7.7 Violent crime 7.7 16.0 7.2 15.8 6.6 17.6 6.4 16.5 5.9 15.9 5.9 15.9
against persons
Violent crime 6.7 Violent crime 6.7 11.8 6.7 12.1 6.2 13.6 9.3 16.5 9.1 18.1 9.1 18.1
against property
Burglary, theft and 28.0 Burglary, theft and 28.0 80.1 25.4 73.6 19.8 71.9 26.4 79.0 25.8 79.0 25.8 79.4
handling stolen
goods
Serious narcotics 5.4 Serious narcotics 5.4 7.4 8.3 9.8 6.9 8.9 4.9 6.3 3.8 6.3 3.8 5.2
offences
Preventive crime 3.5 Preventive crime 3.5 8.0 2.6 5.5 2.7 6.6 3.8 7.6 2.9 7.6 2.9 6.5
Other crimes 8.8 Other crimes 8.8 25.3 8.5 25.1 7.2 25.3 9.6 29.0 8.7 28.9 8.7 28.9
Total 60.1 Total 60.1 148.6 58.8 141.9 49.5 143.9 60.4 154.8 56.2 154.1
Notes: (1) Notes: (1) Type of crime - Type of crime -
(a) Violent crime against persons includes rape, indecent assault, murder and (a) Violent crime against persons includes rape, indecent assault, murder and manslaughter, attempted murder, wounding, serious assault, assault on police, kidnapping and child stealing, cruelty to child and criminal intimidation.
(b) Violent crime against propety includes robbery with firearms, robbery with (b) Violent crime against propety includes robbery with firearms, robbery with pistol like object, other robberies, aggravated burglary, blackmail and arson.
(c) Burglary, theft and handling stolen goods include burglary with breaking, (c) Burglary, theft and handling stolen goods include burglary with breaking, burglary without breaking, theft (snatching, pickpocketing and shop theft), theft from vehicle, taking conveyance without authority, abstracting of electricity, theft from construction site, other miscellaneous thefts and handling stolen goods.
(d) Serio (d) Serious narcotics offences include manufacturing of dangerous drugs, us narcotics offences include manufacturing of dangerous drugs, trafficking in dangerous drugs, possession of dangerous drugs for trafficking and other serious narcotics offences.
(e) Preventive crime includes possession of arms and ammunition, possessio (e) Preventive crime includes possession of arms and ammunition, possessio Preventive crime includes possession of arms and ammunition, possession of offensive weapon, going equipped for stealing, possession of unlawful instrument, tampering with vehicle, unlawful pawning offences, unlawful possession and loitering.
(f) Other crimes include fraud and forgery, sexual offences, offences against (f) Other crimes include fraud and forgery, sexual offences, offences against lawful authority, serious immigration offences, and so on.
(2) The crime rates refer to number of cases per 10 000 persons. (2) The crime rates refer to number of cases per 10 000 persons.
Re-surfacing of West Kowloon Corridor
16. MR FREDERICK FUNG asked: In relation to the project to re-surface the West Ko 16. MR FREDERICK FUNG asked: In relation to the project to re-surface the West Kowloon Corridor with noise absorbent bitumen to reduce the noise level created by road traffic, will the Government inform this Council:
(a) of the progress and the completion date of the whole project; (a) of the progress and the completion date of the whole project;
(b) what difficulties have been encountered so far and what m (b) what difficulties have been encountered so far and what m what difficulties have been encountered so far and what measures will be t easures will be taken to solve the problems; and
(c) whether any action will be taken to accelerate the completion of the proj (c) whether any action will be taken to accelerate the completion of the project.
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the Environmental Protection Department found that three sections of the West Kowloon Corridor needed noise absorbent surfaces. The other portions which are near industrial buildings do not justify them.
Works on two portions (from Tai Kok Tsui Road to Tong Mi Road and where the Corridor runs above Tai Kok Tsui Road) started in June 1991 and were completed in September 1991, more than a month ahead of the original schedule. Resurfacing work for the third portion (from Kiu Kiang Street to Tai Kok Tsui Road) is scheduled to commence in late 1992 and will take approximately 14 weeks to complete. No difficulties have been encountered in implementing the works so far.
Preparatory work for resurfacing of the third portion of the West Kowloon Corridor is already at an advanced stage, and cannot be accelerated further.
Nuisances caused by water cooling towers
17. MR GILBERT LEUNG asked: Will the Government inform this Council: 17. MR GILBERT LEUNG asked: Will the Government inform this Council: (a) of the number of complaint cases concerning water cooling towers of air- (a) of the number of complaint cases concerning water cooling towers of air-
conditioning systems received in the past three years; what was the nature of these complaints;
(b) which department is responsible for handling complaints involving nuisances (b) which department is responsible for handling complaints involving nuisances caused by these water cooling towers; what actions have been taken in dealing with these complaints; and
(c) whether the Administr (c) whether the Administr whether the Administration is going to lay down the basic criteria and sa ation is going to lay down the basic criteria and safety guidelines for installing such water cooling towers; if not, what are the reasons for not doing so?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, no accurate statistics are kept of complaints relating to water cooling towers, since such complaints can fall into any one of a number of areas of complaint. The great majority of complaints received are believed to relate to the noise created by the towers: in each of the last two years approximately 500 complaints relating to noise were received, although the number of complaints received in 1989 was much lower. Complaints as to the structural safety of the towers, or as to nuisance caused by water dripping from them are believed to be few.
Complaints as to noise caused by water cooling towers are the responsibility of the Environmental Protection Department (EPD), as to the structural stability of the towers and their supporting framework the Buildings Ordinance Office (BOO), and as to nuisance caused by dripping of water either the Urban Services Department (USD) or the Regional Services Department (RSD) depending on the area in which the nuisance was found. When these departments receive a complaint, they investigate it to check that the complaint is justified: if it is, either a warning is issued or prosecution is initiated, depending on the severity of the problem. If warnings are ignored, enforcement action is normally then started. During the last year, about 50
prosecutions for excessive noise from water cooling towers were initiated.
The basic criteria for installing and operating water cooling towers are contained in the Circular Letter to All Registered Contractors and the Air Conditioning and Refrigeration Association of Hong Kong on "The Installation of Air-Conditioning Equipment in Existing Private Premises", and the Practice Note for Authorized Persons and Registered Structural Engineers No 116 issued by BOO, and in the "A Practical Guide for the Reduction of Industrial Noise" and "A Guide for the Reduction of Ventilating System Noise (including Cooling Towers)" issued by EPD.
Privatization plans
18. MR DAVID LI asked: Will the Administration inform this Council of the details 18. MR DAVID LI asked: Will the Administration inform this Council of the details of its current privatization plans?
SECRETARY FOR THE TREASURY: Mr Deputy President, in this reply, the term "privatization" does not mean the contracting out, by the Government to the private sector, of the operation of such undertakings as car parks, abattoirs and road tunnels. The contracting out of these undertakings involves no change in ownership of the assets, which is what privatization involves. Nor does the term include corporatization.
Normally, a government owned undertaking would be considered for privatization only in those cases where the undertaking has already taken the form of a company or corporation, and is essentially a business.
At the present time the Government is considering the possibility of privatizing only the Kowloon-Canton Railway. However, a great deal of work will need to be done before any decision can be taken. It will be necessary, for example, to consider how and to what extent the business of the KCRC might be regulated by the Government, so that the public interest may be safeguarded. It will also be necessary to consider carefully the Government's financial objectives. Only when all these complex policy issues have been fully considered would the Government be in a position to decide whether or not to take the actual steps leading to privatization (for example,
re-writing the KCRC Ordinance, valuation of the KCRC's assets and future business, private placement versus public placement, and so on).
Profits tax from sale of property
19. MR TIK CHI-YUEN asked: Will the Government inform this Council 19. MR TIK CHI-YUEN asked: Will the Government inform this Council MR TIK CHI-YUEN asked: Will the Government inform this Council:
(a) what criteria are employed at present in deciding whether proceeds from sale (a) what criteria are employed at present in deciding whether proceeds from sale of house property and flats should be subject to profits tax;
(b) whether the Department concerned would assess each and every case of sale (b) whether the Department concerned would assess each and every case of sale of house property and flats to decide whether profits tax should be levied, so that
there will be no omission;
(c) if not, what are the difficulties involved are, and how the Department will (c) if not, what are the difficulties involved are, and how the Department will overcome such difficulties; and
(d) in each of the past three years, how much tax can be a (d) in each of the past three years, how much tax can be a in each of the past three years, how much tax can be attributed to profits ttributed to profits from the sale of house property and flats, and how much of that amount is still outstanding?
SECRETARY FOR THE TREASURY: Mr Deputy President, profits from the sale of property are chargeable to Profits Tax if they arise from the carrying on of a business of property dealing or property trading. Profits arising from the sale of capital assets are expressly excluded from assessment to tax. Arguments can arise over whether the vendor of a particular property was carrying on a business of property dealing, or whether he was merely selling a capital asset. While a body of law has been developed by the courts to help in resolving such questions, most individual cases can only be determined by looking at the length of time between purchase and sale, whether the vendor has carried out other property transactions, the financing arrangements, the reasons given for purchase and for sale and other relevant circumstances.
The Inland Revenue Department examines all property transactions which come to The Inland Revenue Department examines all property transactions which come to its knowledge and decides whether, in its opinion, profits assessable to tax have arisen.
Although the Inland Revenue Department is fully capable of making appropriate assessments of profits tax liability on property transactions once these have been identified, there may be difficulty in some cases in finding out whether a transaction has actually taken place. However, following the recent enactment of the Stamp Duty (Amendment) Ordinance 1992, details of all transactions in residential properties must now be submitted to the Department's Stamp Duty Office. This new requirement will provide a source of information which will ensure the early identification of transactions likely to give rise to profits chargeable to tax.
The Inland Revenue Department does not keep separate statistics on property The Inland Revenue Department does not keep separate statistics on property dealing. For statistical purposes, the profits tax revenue from property transactions, including property development, is grouped with that from general investment and financial (other than banking) business. The tax assessed to this
sector for the past three years is as follows:
Year ended: 31.3.89 Year ended: 31.3.89 31.3.89 31.3.90 31.3.90 31.3.90 31.3.91 31.3.91
Tax assessed: 3 800 Tax assessed: 3 800 4 760 5 557
($ million)
The Department does not keep statistics showing the amount of tax owed by individual trades or businesses.
Student guidance teachers
20. MR NG MING-YUM asked: In view of the recommendation made by the Education 20. MR NG MING-YUM asked: In view of the recommendation made by the Education Commission in its No. 4 Report that in keeping with the implementation of the 'whole school approach', the majority of the Education Department's student guidance officers (SGO) currently based in primary schools should be transferred to serve as student guidance teachers (SGT) under the management of the respective schools, will the Government inform this Council:
(a) given the current (a) given the current given the current wastage rate and recruitment situation of SGOs, whether wastage rate and recruitment situation of SGOs, whether it is possible to achieve the targetted manning ratio of 1 SGT: 2 500 students by 1992; what the respective figures were in respect of the wastage rate and the number of new recruits in the year 90/91;
(b) how the Education Department can ensure recruiting sufficient SGTs without (b) how the Education Department can ensure recruiting sufficient SGTs without lowering the quality of the student guidance service;
(c) whether the Education Department has any fixed timetable for introducing its (c) whether the Education Department has any fixed timetable for introducing its policy of providing each school with one school-based SGT after the implementation of whole-day schooling in primary schools;
(d) how the Education Department is going to monitor the performance of the SGTs (d) how the Education Department is going to monitor the performance of the SGTs in their respective primary schools and to ensure their quality of services;
(e) what in-service training opportunities are currently provided by the (e) what in-service training opportunities are currently provided by the Education Department for SGTs; and
(f) what investigation, if any, has been made by the Education Department to find (f) what investigation, if any, has been made by the Education Department to find
out whether SGTs are required to take up teaching work in addition to their own duties?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the answers to Mr NG's questions are as follows:
(a) Implementation of the recommendations of Education Commission Report No. 4 (a) Implementation of the recommendations of Education Commission Report No. 4 will require most of the SGO posts in the Education Department to be transferred gradually to schools as additional posts to enable school heads to choose one of their teachers to serve as a SGT. Subject to funds being available, the target for the 1992-93 school year is to create 29 SGT posts in aided primary schools which, in addition to 173 SGO posts in the Education Department, will be enough to achieve the manning ratio of 1 SGT/SGO : 2 500 students. The rate at which the transfer of posts from ED to aided primary schools takes place will depend largely on the wastage rate of SGOs in the Education Department: the higher the wastage, the faster the rate of transfer of posts.
In 1990-91 a total of 38 SGOs reported for duty, having been recruited in 1989-90. No recruitment exercise was conducted in 1990-91 since SGO posts were to be gradually transferred to schools in 1992 as recommended in ECR 4. The wastage rate of SGOs for 1990-91 was 11.9%.
(b) SGTs will not be recruited by the Education Department but by the schools (b) SGTs will not be recruited by the Education Department but by the schools themselves. School heads will select one of their experienced teachers as a SGT. Since SGT posts are ranked at Assistant Master (AM) level, a promotion rank, no difficulties in filling them are expected.
The very concept of the whole school approach, involving the provision of The very concept of the whole school approach, involving the provision of guidance in schools by school-based guidance teachers working together with other teachers, is to improve the quality of the student guidance service. In addition, professional support and training for SGTs will be provided by the Professional
Support and Training Team of the Student Guidance Section of the Education Department to ensure that the quality of the service is maintained.
(c) The provision of one SGT to every school with 24 classrooms or more is an (c) The provision of one SGT to every school with 24 classrooms or more is an ultimate target which would be considered when whole-day schooling for primary schools has been implemented. There is as yet no fixed time-table for the implementation of this improved provision standard.
(d) It is up to individual schools to monitor the performance of (d) It is up to individual schools to monitor the performance of It is up to individual schools to monitor the performance of their teaching their teaching staff, including the SGTs. The Professional Support and Training Team of the Student Guidance Section of the Education Department will, however, provide support to SGTs. Members of the Team will pay regular visits to SGTs in schools to help them handle difficult cases, and will organize regular meetings and seminars to provide them with professional support and advice.
(e) Training opportunities are currently provided by the Education Department (e) Training opportunities are currently provided by the Education Department for SGOs rather than SGTs, since the latter posts have not yet been created. Upon implementation of the whole school approach to guidance, all SGTs will have the opportunity to receive pre-service training comprising a four month full-time course which includes fieldwork in schools over a 10-week period. This course will be followed by part-time training of five months in the organization of preventive programmes and student support groups. In addition, a 10-month part-time refresher training programme will be available for experienced SGTs.
(f) No investigation has yet been made. However, in implementing the SGT sch No investigation has yet been made. However, in implementing the SGT scheme, a number of measures will be taken to help the Education Department monitor whether the additional SGT posts are used as intended for the Whole School Approach. These include ensuring, through circulars to head-teachers, that the duties of SGTs are explicitly spelled out, and the regional officer-in-charge of the Student Guidance Section maintaining frequent contacts with head-teachers through school visits and meetings, as well as regular meetings with SGTs. If the posts were found not to be used appropriately, they would be withdrawn.
First Reading of Bills
PREVENTION OF BRIBERY (AMENDMENT) BILL 1992
INDEPENDENT COMMISSION AGAINST CORRUPTION (AMENDMENT) BILL 1992 DANGEROUS DRUGS (AMENDMENT) (NO. 2) BILL 1992
ACETYLATING SUBSTANCES (CONTROL) (AMENDMENT) BILL 1992
NURSES REGISTRATION (AMENDMENT) BILL 1992
MIDWIVES REGISTRATION (AMENDMENT) BILL 1992
PHARMACY AND POISONS (AMENDMENT) BILL 1992
Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).
Second Reading of Bills
PREVENTION OF BRIBERY (AMENDMENT) BILL 1992
THE ATTORNEY GENERAL moved the Second Reading of: "A Bill to amend the Prevention of Bribery Ordinance."
He said: Mr Deputy President, I move that the Prevention of Bribery (Amendment) Bill 1992 be read a Second time.
As Members are aware the Prevention of Bribery Ordinance and the Independent Commission Against Corruption Ordinance are two of the six Ordinances that were excluded from the operation of the Bill of Rights Ordinance 1991 for a period of one year from 8 June 1991. A comprehensive review of these two Ordinances has now been carried out. Our approach has been to identify those provisions which are almost certainly inconsistent with the Bill of Rights Ordinance. The amendments recommended as a result are contained in this Bill and the next Bill on the Order Paper namely the Independent Commission Against Corruption (Amendment) Bill 1992.
I now turn to the contents of the first of these two Bills. Clause 2 of the I now turn to the contents of the first of these two Bills. Clause 2 of the Prevention of Bribery (Amendment) Bill 1992 repeals those parts of section 16 of the principal Ordinance which enable an investigating officer to detain any person found in an office, registry or other room used by a public body, which the officer is empowered to search.
Clause 3 repeals those parts of section 17 of the principal Ordinance which empower an investigating officer to detain any person found in the premises or place which he enters and searches with a warrant.
Clause 5 repeals section 18 which presently enables a magistrate to issue a
warrant for the apprehension and admission to bail of a person who is the subject of an investigation and who is about to leave Hong Kong. A consequential amendment to 17C(3) is effected by clause 4.
Clause 6 amends section 30 of the principal Ordinance so that it will no longer be an offence to disclose the identity of a person who is the subject of an investigation or the details of that investigation after that person has been arrested. Careful consideration has been given to the suggestion that the prohibition on pre-arrest disclosure should also be removed. We believe, however, that there are good reasons for this prohibition to remain. Firstly, given the sensitive nature of investigations of corruption allegations, premature disclosure can compromise the entire investigation process. Secondly, the reputation of the person under investigation should be protected, particularly in cases where no criminal charges are subsequently brought.
As the Secretary for Constitutional Affairs explained at this Council last week, in recommending legislative amendments in response to the Bill of Rights Ordinance, 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 justified at this stage. In line with this approach the
amending Bill will either repeal or amend all provisions in the Ordinance which are almost certainly inconsistent with the Bill of Rights Ordinance. The possibility cannot be ruled out, nevertheless, that other provisions may still be at risk of being challenged as being incompatible with the Bill of Rights, but such challenges should be left for the courts to decide upon if they are made.
The Commissioner of the Independent Commission Against Corruption is satisfied that the amendments proposed by this and the next Bill will not have any adverse effect upon the operations of the Commission.
Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
INDEPENDENT COMMISSION AGAINST CORRUPTION (AMENDMENT) BILL 1992 THE ATTORNEY GENERAL moved the Second Reading of: "A Bill to amend the Independent
Commission Against Corruption Ordinance."
He said: Mr Deputy President, I move that the Independent Commission Against Corruption (Amendment) Bill 1992 be read a Second time.
I have already explained the approach we adopted in recommending the amendments I have already explained the approach we adopted in recommending the amendments contained in the Bill. Clause 2 repeals those provisions of section 10C of the principal Ordinance which presently enable an officer authorized by the Commissioner of the Independent Commission Against Corruption to detain any person found in the premises or place which he is empowered to search.
Clause 3 repeals that part of section 13 of the principal Ordinance which empowers the Commissioner to require any person to provide him with any information which he considers necessary.
Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
DANGEROUS DRUGS (AMENDMENT) (NO. 2) BILL 1992
THE SECRETARY FOR SECURITY moved the Second Reading of: "A Bill to amend the Dangerous Drugs Ordinance."
He said: Mr Deputy President, I move that the Dangerous Drugs (Amendment) (No. 2) Bill 1992 be read a Second time.
The purpose of the Bill is to amend the Dangerous Drugs Ordinance to meet the The purpose of the Bill is to amend the Dangerous Drugs Ordinance to meet the requirements of the International Covenant on Civil and Political Rights which are reflected in the Bill of Rights Ordinance.
Section 46 of the Dangerous Drugs Ordinance provides that any person found in possession of more than a specified amount of a dangerous drug is presumed to have been in possession of the drug for the purpose of trafficking.
Section 47 of the Ordinance provides presumptions of possession and knowledge of dangerous drugs under certain specified conditions.
The Court of Appeal ruled in September last year that some presumptions in sections 46 and 47 were inconsistent with the Bill of Rights Ordinance and, in consequence, had been repealed.
In response to the Appeal Court ruling, the Dangerous Drugs Ordinance has been In response to the Appeal Court ruling, the Dangerous Drugs Ordinance has been reviewed. Our objective has been to ensure that the Ordinance complies with the Bill of Rights Ordinance, and that we maintain our ability to bring successful prosecutions for drug offences. The Bill proposes to delete or amend provisions which were ruled to be inconsistent with the Bill of Rights Ordinance, and to delete or amend other provisions which may be vulnerable to similar challenges.
Specifically, the Bill seeks:
(a) to remove the separate offence of possession of dangerous (a) to remove the separate offence of possession of dangerous to remove the separate offence of possession of dangerous drugs for the drugs for the purposes of unlawful trafficking and to include it as a trafficking offence;
(b) to increase the maximum penalties for possession offences on indictment to (b) to increase the maximum penalties for possession offences on indictment to seven years' imprisonment and a fine of one million dollars;
(c) to amend and rep (c) to amend and rep to amend and repeal incompatible presumptions concerning manufacturing, eal incompatible presumptions concerning manufacturing, prescribed minimum amounts and divans; and
(d) to limit the scope of the presumption concerning possession of dangerous (d) to limit the scope of the presumption concerning possession of dangerous drugs.
Mr Deputy President, I move that the debate on this motion be now adjourned. Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
ACETYLATING SUBSTANCES (CONTROL) (AMENDMENT) BILL 1992
THE SECRETARY FOR SECURITY moved the Second Reading of: "A Bill to amend the Acetylating Substances (Control) Ordinance."
He said: Mr Deputy President, I move that the Acetylating Substances (Control) (Amendment) Bill 1992 be read a Second time.
The purpose of the Bill is to amend the Acetylating Substances (Control) Ordinance to meet the requirements of the International Covenant on Civil and Political Rights. The amendments follow, and are similar to, those in the Dangerous Drugs (Amendment)(No.2) Bill 1992.
Specifically, the Bill proposes to substitute a new section 10, so as to limit the scope of presumptions concerning possession of acetylating substances, and to delete section 11, so as to repeal the presumption concerning manufacturing.
Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
NURSES REGISTRATION (AMENDMENT) BILL 1992
THE SECRETARY FOR HEALTH AND WELFARE moved the Second Reading of: "A Bill to amend the Nurses Registration Ordinance."
She said: Mr Deputy President, I move that the Nurses Registration (Amendment) Bill 1992 be read the Second time.
This Bill seeks to empower the Governor in Council to make regulations prescribing the fees for furnishing, to any party to a disciplinary inquiry held by the Nursing Board, a copy of any record of the inquiry.
Subsidiary legislation made by the Governor in Council under the Nurses Subsidiary legislation made by the Governor in Council under the Nurses Registration Ordinance stipulates that a fee is to be charged for furnishing verbatim records. However, the Ordinance contains no provision for such regulations to be made. The amendment Bill is therefore necessary to rectify the position.
The two Bills which stand in my name following this one seek to rectify similar positions.
Mr Deputy President, I move that the debate on this motion be adjourned. Question on the adjournment proposed, put and agreed to.
MIDWIVES REGISTRATION (AMENDMENT) BILL 1992
THE SECRETARY FOR HEALTH AND WELFARE moved the Second Reading of: "A Bill to amend the Midwives Registration Ordinance."
She said: Mr Deputy President, I move that the Midwives Registration (Amendment) Bill 1992 be read the Second time.
The reason I have just given with regard to the Nurses Registration (Amendment) Bill also applies in this case.
Mr Deputy President, I move that the debate on this motion be adjourned. Question on the adjournment proposed, put and agreed to.
PHARMACY AND POISONS (AMENDMENT) BILL 1992
THE SECRETARY FOR HEALTH AND WELFARE moved the Second Reading of: "A Bill to amend the Pharmacy and Poisons Ordinance."
She said: Mr Deputy President, I move that the Pharmacy and Poisons (Amendment) Bill 1992 be read the Second time.
The reason I have just given with regard to the Nurses Registration (Amendment) Bill 1992 also applies herewith, save that it seeks to empower the Pharmacy and Poisons Board to make the regulation in question.
Mr Deputy President, I move that the debate on this motion be adjourned. Question on the adjournment proposed, put and agreed to.
PROFESSIONAL ACCOUNTANTS (AMENDMENT) BILL 1991
Resumption of debate on Second Reading which was moved on 23 October 1991.
Question on Second Reading proposed.
MR RONALD ARCULLI: Mr Deputy President, the Bill before us today seeks to provide the Hong Kong Society of Accountants with the necessary powers to operate a Practice Review system to examine the internal quality control policies and procedures adopted by its practising members for their audit procedures. The Bill also empowers the Society to commence disciplinary proceedings against any of its members who fails to comply with the requirements of a review, or who is found to be in breach of the professional standards of the Society. At present, the Society operates a reactive system of regulation and an inquiry into the work and conduct of a professional
accountant may only be carried out when a complaint is received by the Council of the Society.
A Legislative Council ad hoc group comprising 12 members was set up to examine the Bill. The group met eight times, including meeting the Administration and the Hong Kong Society of Accountants on four occasions, and meeting with the Society of Chinese Accountants and Auditors as well as a group of practising accountants.
The Bill has attracted much attention and reaction from the accountancy profession since its publication in the Gazette on 11 October 1991. During the past four and a half months, the ad hoc group received a total of 30 submissions from various organizations and individuals, many of these being accountancy bodies or members of the profession. Of these 30 submissions, the Securities and Futures Commission and the Deposit Taking Companies Association and five individuals consider that there is a strong case for the Society, as the profession's regulator, to standardize the quality of audit work at a higher level and are supportive of the proposals to use the Practice Review system to achieve this objective. The remaining 23 submissions are either opposed to the Bill or wish to see it amended. However, the group noted that those opposing were in favour of the introduction of the Practice Review system
if it were for the purpose of educating members of the profession without the possibility of disciplinary proceedings arising. Concerns were also expressed on the operational aspects of the Practice Review system. The points raised were carefully considered and discussed in detail with the Administration and the Society.
I would, however, only draw to the attention of this Council the essential points considered by the ad hoc group. I shall leave it to my honourable colleagues who come from the accountancy profession to elaborate on points of special interest to
the profession.
The first point that I shall deal with is the justification for legislating for a proactive system of regulation. The ad hoc group noted that the proposal for Practice Review was passed by a simple majority of 930 votes in favour and 759 against, with a large number of members (some 70%) not voting, at an Extraordinary General Meeting of the Hong Kong Society of Accountants in February 1991. Together with the views contained in the submissions received by the group, they pointed to a rather sizeable opposition from within the profession. In the wider context, the group felt that the proposed system might give rise to concerns on the individual's rights of privacy.
Against this background the ad hoc group invited the Administration and the Against this background the ad hoc group invited the Administration and the Society to justify the case for Practice Review. In reply, the Administration furnished the group with comments from various government departments reporting on incidents of suspected substandard reporting which they had come across in the discharge of their statutory duties. The group was advised that although the extent of the problem could not be precisely quantified, there was a substantial body of evidence pointing to a significant number of substandard reports in all fields of governmental activity involving tax assessment, the management of insolvent businesses and prudential supervision of certain industries. The group was also told that the Government strongly supports the Society's proposals as reflected in the Bill as being in the public interest. Externally, the development and attractiveness of Hong Kong as a regional financial centre would also be enhanced by the proposed system. The Society also furnished the ad hoc group with statistics on the level of complaints and referrals received. Because the complainants in many of these cases were restricted from providing details to avoid breach of professional or confidentiality rules, it had prevented the Society from investigating the individual cases. The Society seeks therefore the support of this Council for the proposed Practice Review system so that it would be able to enhance its self-regulating programme to ensure that professional standards are observed and maintained.
In a number of the submissions it was suggested that:
(1) the proposal for the Practice Review system could be introduced by the So (1) the proposal for the Practice Review system could be introduced by the Society making by-laws under section 8 of the Professional Accountants Ordinance;
(2) certain provisions of the Bi (2) certain provisions of the Bi certain provisions of the Bill would infringe the Hong Kong Bill of Rights ll would infringe the Hong Kong Bill of Rights
Ordinance;
(3) the rule as to confidentiality of clients' affairs might be broken if (3) the rule as to confidentiality of clients' affairs might be broken if reviewers were given access to such information; and
(4) the Practice Review system proposed was generally new and untri (4) the Practice Review system proposed was generally new and untri the Practice Review system proposed was generally new and untried elsewhere. ed elsewhere.
Mr Deputy President, my honourable colleagues in the accountancy profession will explain the details of the ad hoc group's deliberations on these aspects and the reasons why the group supports the Bill subject to amendments to be moved at the Committee stage.
One particular aspect was of concern to those who opposed the introduction of the Practice Review system and that is the possibility that disciplinary proceedings could be initiated upon irregularities discovered as a result of a practice review. The Administration, the Society and the ad hoc group understood the concern. However,
the ad hoc group felt it was unable in the public interest to support the suggestion that in no circumstances could disciplinary action be taken upon irregularities, however serious, being discovered as a result of a practice review. The ad hoc group therefore felt that some reasonable safeguard could be supported and during the
Committee stage amendments Members will note that the Council of the Society could refer matters to the Disciplinary Committee in limited circumstances, namely, when a resolution to do so has been passed by a three-quarter majority and then only in the case of serious professional misconduct (always assuming, Mr Deputy President, that such a case is ultimately proven). We believe that this will give some assurance to the profession that the long-term purpose of the Practice Review system is to constantly improve professional standards and not for what has been perceived by some within the profession as a witch hunt.
Mr Deputy President, many of the representations received by the group expressed concerns on the operational aspects of the Practice Review system. These concerns, which include powers of the reviewers, the composition of the Practice Review Committee and the Disciplinary Committee, the small practitioners' representation in the system, the checks and balances in the Practice Review system, channels of appeal and penalty for breach of secrecy, and so on, have been relayed to the Administration and the Society for consideration. The group noted that the Society had subsequently discussed with representatives of various accountancy bodies who opposed the Bill as presently drafted and came up with various recommendations to
address these concerns. The amendments to be moved during the Committee stage by my honourable colleagues reflect the results of these discussions and of the full consideration given by the Administration, the Society and the ad hoc group to representations received since the Bill was introduced.
Lastly, Mr Deputy President, there is however one representation from the Society of Chinese Accountants and Auditors, that was only made to the Honourable Peter WONG yesterday. The Society of Chinese Accountants and Auditors now asked that at least 75% of the members of the Practice Review Committee should hold practising
certificates and that they be elected by election among practising members and not by the Council. As to the first point an amendment will be moved at the Committee stage that two-thirds of the members of the Practicing Review Committee must be practicing accountants. As to the second point, it raises at the late stage an election mechanism that would appear to immediately divide the membership of the Hong Kong Society of Accountants into practicing and non-practicing members. For myself, I doubt the desirability and the practicality of such a proposal. My suggestion would be to allow the Practice Review system to run and should a good case be made that it is not working no doubt this Council would hear about it. Mr Deputy President, the ad hoc group is satisfied that the Bill can be supported. The consideration of the Bill has not been entirely easy or simple, and I am most grateful for the guidance given by the Administration, the Society and those who made representations including those who opposed the Bill. I am also grateful to members of the ad hoc group for their guidance but would like to make special mention of the wisdom and commonsense they showed when it came to considering issues that involve public interest. Both as the convener of the ad hoc group and in my personal capacity, I support the Bill.
MR PETER WONG: Mr Deputy President, I pledge my full support to the resumption of the Second Reading of the Professional Accountants (Amendment) Bill 1991 which seeks to introduce the Practice Review.
I have been involved with the workings of the Hong Kong Society of Accountants ever since its formation in 1974. Society members were charged with self-regulation of our profession and were privileged to enjoy an autonomy known by no other profession in Hong Kong. It is a privilege we guard jealously, and we trust, responsibly.
The first decade of our existence was spent in getting our standards and The first decade of our existence was spent in getting our standards and guidelines in place. By 1984, we realized that the standard setting was almost done
and we had to ensure that everyone followed and applied those standards. This was no easy task because we did not have a system of filing accounts for the inspection of the public at the Companies Registry and the Inland Revenue Department was bound by very stringent secrecy rules. We received a few but enough feedback from bankers, financial institutions and government departments about incidents of sub-standard work of our members but these never materialized into a complaint upon which a
disciplinary action can proceed. You will appreciate that any disciplinary action can be very damaging to a professional if it is undertaken in an unwarranted fashion and we must have a prima facie case with some concrete evidence before proceeding. Our dilemma was that we were guilty by inference and we could never demonstrate that the problem was really insignificant.
Highest standards
I welcomed the idea of Practice Review when it got more than a theoretical ap I welcomed the idea of Practice Review when it got more than a theoretical approval by the Council of the Hong Kong Society of Accountants because it is the only sure way of ensuring that every professional accountant was practising what he preached, and that is to uphold the highest professional standards in his work. This Practice Review, if properly done, will give the Hong Kong public the assurance that every professional accountant, in arriving at his opinion, will adhere to those standards and guidelines worked out by his peers after many years of hard work and experience. They are there to assist and protect both the auditors as well as the clients.
It was natural that we should query the intrusion on the sacred confidential relationship between the professional accountant and his client. But I see the Practice Review, if carried out properly, will in no way jeopardize this relationship.
Bill of Rights
Practice Review necessarily means that at some stage, the reviewer will have to look at real audit files to satisfy himself that whatever the Practice Unit says that it is doing has actually been done. This has Bill of Rights implications in that it would give reviewers access to the private financial affairs of clients. Legal opinion of Mr Anthony NEOH, QC and Mr Johannes CHAN which accompanied one of the submissions to the ad hoc group suggests that there is a prima facie violation of the right to privacy.
The Administration and the Attorney General have re-examined the Bill having
regard to the legal opinion mentioned above and maintained the view that it does not contravene the Bill of Rights. The Society of Accountants, in their submission to the group, also enclosed the separate legal opinions of Mr Henry LITTON, QC and Mr Denis CHANG, QC showing that in the Bill of Rights context, a moderate invasion of privacy which is not likely to cause prejudice to anyone is reasonable in the public interest. The Court of Appeal for British Columbia in the case of McPherson v. The Institute of Chartered Accountants of British Columbia on 26 April 1991 held that if the practice review system is reasonable then it is not against the Charter of Rights. It also highlighted that the paramount consideration is public interest and protection of that interest. The ad hoc group is satisfied with the information and explanations provided by the Administration and the Society on this aspect.
Enough safeguards
This leads onto the point about confidentiality. Concern was expressed over the security of the information contained in the audit files which may be of a sensitive nature and could be of commercial value to the reviewers. Many of the representations also raised the question of internal security. The ad hoc group noted from the
information provided by the Society that in the wider public interest, it is appropriate for a professional self-regulating body to have access to information normally bound by the accountant-client confidentiality code. On the question of internal security, the Society assured that a detailed operational manual for the proposed Practice Review system has been drawn up with particular emphasis on the preservation of confidentiality. Various safeguards built into the system and amended provisions of the Bill including criminal sanctions and heavy fines will ensure the protection of client confidentiality. For example, the reviewer picks the files to be reviewed randomly from a coded client list, and the identity of the practice unit remains anonymous to the Practice Review Committee unless and until a complaint has been lodged. The proposed section 32G of the Bill provides for the protection of client confidentiality by imposing criminal sanctions on breaches. The Administration has also agreed to increasing the fine in case of such breaches from $50,000 to $100,000. The presence of a criminal sanction should be grave enough to deter any reviewer who contemplates using the information thus gained to start a new practice unit since such an offence would surely debar him from such professional practice ever again.
The other major concern of accounting practitioners is that the Practice Review will be turned into a witch hunt by the large firms to drive the smaller firms out
of business. My colleague the Honourable Eric LI will address this in his speech, but I would like to emphasize that there are now sufficient safeguards to ensure that the review exercise is educational in the first instance for all but the most heinous breaches.
I appreciate that no system will ever be perfect at its initial stages and a I appreciate that no system will ever be perfect at its initial stages and a number of problems must always exist and need to be ironed out. My accountant colleagues in this Council and I will be ever ready to consider and put right whatever problem is identified in the practice review system.
MR MARVIN CHEUNG: Mr Deputy President, first of all, I must declare my interest as a member of the Hong Kong Society of Accountants and a Certified Public Accountant, and I am therefore directly affected by the Professional Accountants (Amendment) Bill. I would also like to state that I am a member of the Council of the Hong Kong Society of Accountants, and have been so, throughout the time when the idea of a practice review, which is the main thrust of the Bill, was formulated.
I fully support the Second Reading of this Bill. My colleagues, the Honourable I fully support the Second Reading of this Bill. My colleagues, the Honourable Ronald ARCULLI, Peter WONG, Eric LI and James TO, have spoken or will speak on various aspects of this Bill. I will confine my remarks to two areas.
Firstly, in a number of submissions it was suggested that it would be more appropriate for the legislative proposals in the Bill to be taken through the by-law route as provided under section 8 of the Professional Accountants Ordinance. Under this section of the Ordinance the Society may make by-laws regulating, among other things, the practice of accountancy by professional accountants in Hong Kong, subject to the approval of the Governor in Council and the support by a majority of two thirds of the professional accountants present and voting at a general meeting convened for the purpose. The Society, however, considered it necessary to put various proposals for public scrutiny because of the public interest involved. The Administration also confirmed that it would not be appropriate for the proposals to be taken through the by-law route, having regard to the criminal sanctions proposed for the breach of secrecy provisions. Indeed, doubt had been expressed as to whether section 8 would permit a Practice Review system to be introduced. Their clarifications were accepted by the ad hoc group.
The second area I wish to touch on concerns comparability of Practice Review with
other jurisdictions. A number of the submissions questioned why the Society has sought to introduce Practice Review which is generally new and untried elsewhere. They considered it premature to introduce such a scheme to Hong Kong and raised the concern that it would be interpreted by the public that Practice Review is required in Hong Kong because its professional standards are lower than those in other
countries. According to information provided by the Society, countries having a system similar to the Practice Review are:
Canada since 1980 Canada since 1980
Ireland since 1988 Ireland since 1988
New Zealand since 1990, and New Zealand since 1990, and
The United Kingdom since October 1991. The United Kingdom since October 1991.
Australia is planning to have Quality Assurance Reviews to begin in January 1 Australia is planning to have Quality Assurance Reviews to begin in January 1993. The aims and modus operandi of the system proposed in the Bill are similar to the United Kingdom scheme. The ad hoc group also noted that the International Federation of Accountants, of which the Society is a member, has issued a Proposed Statement of Policy of Council advising member bodies to adopt Quality Assurance Audits. The group accepted the view of the Society that the adoption of a monitoring programme for quality review to Hong Kong is in line with the international trend and is
satisfied that we have not embarked on some unique adventure. With these remarks, I support the motion.
MR ERIC LI: Mr Deputy President, at the outset I would wish to declare interest as a Council member of the Hong Kong Society of Accountants. Much of the representation received by the ad hoc group, referred to by our convenor, had been technical amendments on the operational aspects of the Practice Review System. These representations stemmed from an argument that the thrust of the Practice Review System should be educational rather than punitive in nature. In this respect there was actually very little difference in view between the opponents to the Practice Review System and the Hong Kong Society of Accountants. It is the declared intention of the Hong Kong Society of Accountants to place the main emphasis of the Practice Review System on this educational thrust. This common ground has actually enabled a number
of amendments to be made and will be proposed to honourable colleagues at the Committee stage. They are mainly to ensure that the operational aspects do reflect that educational spirit.
Since our honourable colleagues will be explaining the implications of each of these amendments during the Committee stage, I shall limit myself to dealing only with the broad principles behind these proposed amendments. The proposed amendments seek to address the following.
First, it is to restrict the scope of examination by the reviewer so that he cannot easily abuse his power and indulge in a witch hunt for mistakes.
Secondly, it stipulates the composition of the Practice Review Committee to ensure that it is well represented by practising accountants most affected by this Review Scheme and that it will be broadly independent of the Council of the Hong Kong Society of Accountants.
Thirdly, it is a safeguard against minor complaints arising from the first round of the Review, and the proposed amendment as described earlier by the Honourable Ronald ARCULLI will stipulate that such complaints will need to be ruled, by a three-quarter majority of the Hong Kong Society of Accountants Council members, as serious professional misconduct. We recognize that the term "serious professional misconduct" could lead to interpretational problems. The ad hoc group has deliberated at length on whether or not there can be better options; however they finally decided that on balance it would be better to leave the interpretation to the Council of the Hong Kong Society of Accountants, provided it is properly safeguarded by the three-quarter majority vote before it can be referred to the Disciplinary Committee.
Fourthly, it is to ensure that the practice unit under review gets a fair chance of representation and a copy of the reviewer's final report.
I will echo the remarks of the convenor, the Honourable Ronald ARCULLI, in thanking the accountants who have so readily come forward and provided us with well argued and constructive recommendations. I am hopeful that these amendments will allay the fears of the great majority of those who are opposed to the original Practice Review System. I am sure that even though these amendments may not meet 100% with their expectations, they will nevertheless be welcomed by all the parties concerned.
With these remarks, Mr Deputy President, I support the motion.
MR JAMES TO (in Cantonese): Mr Deputy President, not many members of the public are interested in the discussion of the Professional Accountants (Amendment) Bill on practice review, but the Bill has stirred up quite a controversy in the accounting profession. In fact, the information paper that the Government has provided to
members of the ad hoc group contains comments of many departments including the Inland Revenue Department, the Official Receiver's Office, the Companies Registry, the Office of the Commissioner of Banking and the Office of the Commissioner of Insurance. And the comments point out that these departments, in the discharge of their statutory regulatory duties, have come across many dubious or substandard audited tax files. According to further information released by the Government, an abundance of evidence from the course of assessment of tax, handling of insolvent companies and exercise of further regulatory control of banks and insurance companies shows that many reports in question are below par. As such, from the viewpoint of the ordinary citizen, we depend very much on the government departments to oversee the operations of certain lines of business. We are concerned, for instance, over companies formed by small investors, securities companies, banks and insurance companies. From the recent BCC incident, the general public has realized that, very often, we look to the Government
to safeguard our interests through auditors or certain audit systems. We have reasons to believe that a highly professional and reliable accounting or auditing service will definitely be good for the public.
Many bodies in opposition to the Bill are of the view that the Bill will undermine the confidentiality between accountants and their clients. Let me begin by saying that, in my opinion, despite the fact that the Bill before us appears to be an invasion of privacy and of confidentiality, we should not forget that confidentiality is not a paramount principle. Look at the laws that we now have. In common law, safeguards for confidentiality exist on a higher plane, in the form of a so-called prerogative of the legal profession. Still, some exceptions can be made because of an overriding consideration, namely, in the public interest. Under some of the existing statutes, for instance, the Inland Revenue Ordinance and the Prevention of Bribery Ordinance, accountants and other professional people may be required to disclose the
confidential information that they have received from certain clients, provided that this is done in the public interest and that there are strict precautions against any abuse. Very clearly, our entire argument rests on whether or not the Bill will
serve the overall public interest. As I have pointed out, a highly professional service will definitely be good for the public.
Information provided by the Society of Accountants shows that many countries implement similar review systems to ensure the service of professional accountants. They include Canada, which adopted the system in 1980, Ireland in 1988, New Zealand in 1990, the United Kingdom in October 1991 and Australia, which will adopt the system
in January 1993.
As to specific points of law, my colleague Mr Peter WONG just now has put for As to specific points of law, my colleague Mr Peter WONG just now has put forward the pros and cons of this matter. After study, we the United Democrats of Hong Kong think that the Bill is not in contravention of the Bill of Rights, particularly having regard to a precedent case, namely, the appeal case of April 1991 in Canada, which has been mentioned earlier. The main point of interest of that case is that the practice review system there is extremely similar to that in the Bill before us. In Canada, the court held that the precedent case is not against the Charter of Rights. There was also a 1985 precedent case involving peer review of practice in the medical profession. The Court was also of the opinion that the principles of confidentiality of the Charter of Rights were not violated. In fact, in these two precedent cases, the Court has laid down a very important principle: an appropriate and reasonable review system can ensure highly professional practice and is good for the public. Such a system is good not only for the public but also for clients who use the
professional service.
In addition, when the Bill is later reviewed at Committee stage, detailed provisions will be made to ensure that examiners will treat as confidential the information to which they have access during the review process. One particular thing I have to point out is that the penalty for violating such a provision will be increased to bring it in line with penalty applicable to other staff of public service who break the law. On the whole, the United Democrats of Hong Kong support the Bill.
SECRETARY FOR THE TREASURY: Mr Deputy President, I should like to place on record my appreciation for the time and effort that members of the ad hoc group devoted to this Bill. While recognizing the merits of the proposed system of practice review, the ad hoc group were also concerned that the additional powers to be conferred by the Bill should not exceed those required to secure the intended objective.
As a result of the various amendments that Members have proposed, which gener As a result of the various amendments that Members have proposed, which generally focus on defining more precisely how the proposed system of practice review should operate, I believe that the Bill has not only been improved, but that it now meets the concerns that have been raised.
Several Honourable Members have already alluded to the Bill of Rights aspects Several Honourable Members have already alluded to the Bill of Rights aspects of this piece of legislation. I should perhaps mention one other area and that is that during the past 12 months there has been the false spectre of the proposed practice review system being used as a mechanism by which the big fish in the profession could eat up the small fish. As a result of the ad hoc group's examination of this Bill and of the Committee stage amendments to be proposed I believe this spectre has been firmly laid to rest.
It will be noted that the amendments do not undermine the essential purposes of It will be noted that the amendments do not undermine the essential purposes of the Bill. That has been, and remains, to provide for a means to examine, or review, the methods and procedures of professional accountants, to determine whether they comply with the standards that have been laid down by the Hong Kong Society of
Accountants.
The amendments that Mr Peter WONG will be proposing are all acceptable to the Government. In particular, the proposed new section that provides for either a reviewer, or a practice unit, to refer disputes to the Practice Review Committee for determination is a useful and constructive improvement to the Bill.
As regards the amendments that Mr Marvin CHEUNG will be proposing, the most important concerns the course of action that the Practice Review Committee may take after it receives a report from a reviewer. Although it was always the Society's intention that no disciplinary action would be taken as a result of a first review, except in the case of serious misconduct, this will now become a statutory requirement. On the other suggested amendments -- including those which will ensure that a member of the Practice Review Committee who instigates a complaint cannot subsequently deal with that complaint as a member of a disciplinary committee -- these are all equally acceptable to the Government.
Likewise the amendments Mr Eric LI will be proposing. The most important of these is the requirement for a reviewer to attach to his report any representation made by the practice unit involved. This is a useful addition and, in the interests of
fair play, will ensure that such representation is seen by the Practice Review Committee.
Turning to Mr James TO's proposed amendments, the stipulation that any document containing privileged communication by or to a legal practitioner need not be disclosed to a reviewer is an improvement on the original provision. Additionally, the proposed increase in the fine for any breach of the secrecy provisions is also welcomed.
Finally, Mr Deputy President, I would like to add that, on each occasion the Finally, Mr Deputy President, I would like to add that, on each occasion the Government has met with the ad hoc group, the Hong Kong Society of Accountants has also been represented. They are fully conversant with the proposed amendments and, like the Government, fully support them.
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).
Committee stage of Bill
Council went into Committee.
PROFESSIONAL ACCOUNTANTS (AMENDMENT) BILL 1991
Clauses 1 and 5 were agreed to.
Clause 2
MR PETER WONG: Mr Chairman, I move that clause 2 be amended as set out under my name in the paper circulated to Members.
Proposed amendment
Clause 2
That clause 2(b) be amended, in the proposed definition of "professional standards" by deleting paragraph (a).
Question on the amendment proposed, put and agreed to.
Question on clause 2, as amended, proposed, put and agreed to.
Clause 3
MR ERIC LI: Mr Chairman, I move that clause 3 be amended as set out under my name in the paper circulated to Members.
Proposed amendment
Clause 3
That clause 3 be amended, in the proposed section 18A -
(a) by deleting subsection (1)(a); and (a) by deleting subsection (1)(a); and
(b) by deleting subsection (2)(a). (b) by deleting subsection (2)(a).
Question on the amendment proposed, put and agreed to.
Question on clause 3, as amended, proposed, put and agreed to.
Clause 4
MR PETER WONG: Mr Chairman, I move that Clause 4 be amended as set out under my name in the paper circulated to Members.
Section 32A(3) is amended to require two-thirds of the members of the Practice Section 32A(3) is amended to require two-thirds of the members of the Practice Review Committee to be holders of practising certificates and to limit the number of Council members to two. It is believed that this amendment will ensure that the standards of the Practice Review Committee will be set and judged by one's accountant
peers who are in practice and will act in the best interests of the profession and Hong Kong. The convener of the ad hoc group, the Honourable Ronald ARCULLI, has also referred to certain late representations made on this amendment and I shall not repeat them here.
Section 32A(8) is amended so that a sub-committee appointed by the Practice Review Committee is not empowered to make a complaint to the Registrar regarding the professional standards of a practice unit. It is felt that the power to make such a complaint should be entrusted solely to the Practice Review Committee.
A new section 32EA is added. The Bill, as drafted, is silent on the manner according to which a dispute regarding the exercise of powers by a reviewer could be handled. The proposed section 32EA provides that where a dispute arises in relation to whether or how powers of a reviewer may be exercised, either the practice unit or the reviewer concerned may refer the dispute to the Practice Review Committee for a ruling.
Proposed amendments
Clause 4
That clause 4 be amended --
(a) in the proposed section 32A- (a) in the proposed section 32A-
(i) by deleting subsection (3) and substituting - (i) by deleting subsection (3) and substituting -
"3 (a) The Practice Review Committee shall consist of such number of member The Practice Review Committee shall consist of such number of member The Practice Review Committee shall consist of such number of members, being not less than 5, as the Council shall fix and of whom not more than 2 may also be members of the Council.
(b) Of the members of the Practice Review Committee not less than 2/3rds s (b) Of the members of the Practice Review Committee not less than 2/3rds shall each hold a practising certificate."; and
(ii) in subsect (ii) in subsect in subsection (8) by adding "except the powers conferred on it by sec ion (8) by adding "except the powers conferred on it by section 32D(5)" after "powers";
(b) by adding after the proposed section 32E -
"32EA. Referral of disputes "32EA. Referral of disputes
(1) Subject to subsection (4), where a dispute arises in relation to whether or how (1) Subject to subsection (4), where a dispute arises in relation to whether or how a power or powers of a reviewer under section 32E may be exercised in a particular case, either the practice unit or the reviewer concerned, or both, may refer the dispute to the Practice Review Committee.
(2) Where a dispute is referred under subsection (1), (2) Where a dispute is referred under subsection (1), Where a dispute is referred under subsection (1), after considering any after considering any submissions or representations (which shall be in writing) made by the relevant practice unit or the relevant reviewer, the Practice Review Committee -
(a) shall determine the dispute and communicate such determination to each of (a) shall determine the dispute and communicate such determination to each of the parties to the dispute; and
(b) may issue directions relating to the matter in dispute to such practice unit (b) may issue directions relating to the matter in dispute to such practice unit or the reviewer concerned and require such unit or reviewer to comply with them.
(3) Where a practice unit or a reviewer is required to compl (3) Where a practice unit or a reviewer is required to compl Where a practice unit or a reviewer is required to comply with a direction under y with a direction under subsection (2)(b) and fails to comply with the requirement, the Practice Review Committee may make a complaint to the Registrar regarding any professional accountant concerned, and in case such a complaint is made it shall, for the purposes of Part V, be deemed to have been made under section 34(1).
(4) Nothing in this Part shall be construed as enabling thePractice Review Committee (4) Nothing in this Part shall be construed as enabling thePractice Review Committee or a reviewer finally to determine whether or not the provisions of section 32E(3) apply in relation to any record or document.".
Question on the amendments proposed, put and agreed to.
MR MARVlN CHEUNG: Mr Chairman, I move that clause 4 be further amended as set out under my name in the paper circulated to Members.
Sections 32B(l)(b) and (c) are technical amendments. Subsection (l)(d) is Sections 32B(l)(b) and (c) are technical amendments. Subsection (l)(d) is amended to make it clear that a reviewer must be a professional accountant. Section 32D(2) and (3) are deleted and are substituted by new subsections (2) to (7). The proposed amendments will provide that a second review may not be undertaken until
a period of at least six months has elapsed. Additionally, the section provides that no disciplinary action, except in the case of serious professional misconduct, may be taken as a result of the findings of the first review, and even then, with the safeguard that the Council of the Hong Kong Society of Accountants may only lodge a complaint with the Disciplinary Committee if it resolves so to do by a three-fourth majority rather than a simple majority as is the norm.
Proposed amendments
Clause 4
That clause 4 be further amended --
(a) in the proposed section 32B(1) - (a) in the proposed section 32B(1) -
(i) in paragraph (b) - (i) in paragraph (b) -
(A) by deleting "a review or an examination" and substituting "an examination (A) by deleting "a review or an examination" and substituting "an examination or a review,"; and
(B) by adding a comma after (B) by adding a comma after by adding a comma after "applied"; "applied";
(ii) in paragraph (c) by deleting "or (2)" and substituting ", (2), (3) or (ii) in paragraph (c) by deleting "or (2)" and substituting ", (2), (3) or (5)"; and
(iii) in paragraph (d) by deleting "person" and substituting "professional (iii) in paragraph (d) by deleting "person" and substituting "professional accountant";
(b) by deleting the proposed section 32D(2) and (3) and substituti (b) by deleting the proposed section 32D(2) and (3) and substituti by deleting the proposed section 32D(2) and (3) and substituting -
"(2) After receipt of a report under section 32C(3), the Practice Review Commi "(2) After receipt of a report under section 32C(3), the Practice Review Committee, having had regard to the report and submissions or representations (if any) attached to it, if thought fit, may make recommendations to the practice unit concerned regarding the application by it of professional standards.
(3) The Practice Review Committee, having had regard to a report issued by a revi (3) The Practice Review Committee, having had regard to a report issued by a reviewer and submissions or representations (if any) attached to it, may -
(a) issue an instruction to a reviewer to ca (a) issue an instruction to a reviewer to ca issue an instruction to a reviewer to carry out, within such period as may rry out, within such period as may
be specified in the instruction (which period shall not commence earlier than 6 months after the date on which the instruction is issued), a further practice review as regards the practice unit to which the report relates; and
(b) specify in the instruction, the matters as regards which the review is to (b) specify in the instruction, the matters as regards which the review is to be carried out.
(4) Nothing in section 32B(1) or 32C(2) shall be construed as preventing the Prac (4) Nothing in section 32B(1) or 32C(2) shall be construed as preventing the Practice Review Committee from issuing an instruction under subsection (3) and for the avoidance of doubt it is hereby declared that the powers conferred by subsection (1) shall operate as regards any practice review carried out pursuant to such instruction.
(5) Where after the conclusion of a practice review the Practice Review (5) Where after the conclusion of a practice review the Practice Review Where after the conclusion of a practice review the Practice Review Committee Committee is, having had regard to any report issued by a reviewer and submissions or representations (if any) attached to it, of the opinion that -
(a) in case the review related to a firm, any one or more or all of the partners (a) in case the review related to a firm, any one or more or all of the partners in the firm;
(b) in ca (b) in case the review related to a professional accountant practising on his se the review related to a professional accountant practising on his own account, that accountant,
may have failed to observe, maintain or apply, as the case may be, professional standards, then subject to subsection (7) the Practice Review Committee may make a complaint regarding such partner or other professional accountant concerned or, in case there is more than one such person concerned, a separate complaint in respect of each of them, to the Registrar.
(6) A complaint under subsection (5) shall, for (6) A complaint under subsection (5) shall, for A complaint under subsection (5) shall, for the purposes of Part V, be deemed the purposes of Part V, be deemed to have been made under section 34(1).
(7) Where - (7) Where -
(a) a complaint is made under subsection (5); and (a) a complaint is made under subsection (5); and
(b) immediately prior to the commencement of the relevant practice review - (b) immediately prior to the commencement of the relevant practice review - (i) the partner or other professional (i) the partner or other professional the partner or other professional accountant to whom the complaint relates accountant to whom the complaint relates
had not previously been a partner in any firm at any time when a practice review was carried out as regards that firm; and
(ii) a practice review had not previously been carried out as regards his (ii) a practice review had not previously been carried out as regards his practising on his own account,
the Council shall not refer the complaint to the Disciplinary Committee under section 34(1) unless it decides by a majority of 3/4ths of its members for the time being that, were the grounds of complaint or any such ground or any matter or matters complained of established, the relevant act or omission by such partner or other professional accountant would have amounted to serious professional misconduct.".
Question on the amendments proposed, put and agreed to.
MR ERIC LI: Mr Chairman, I move that clause 4 be further amended as set out under my name in the paper circulated to Members.
Regarding section 32C(3), this section is amended to require the reviewer to include in his report to the Practice Review Committee any written submissions or representations made on it by the Practice Unit and that a copy of the final report must be given to the Practice Unit reviewed, and so on.
Regarding section 32E(l)(a)(i), (c) and (d)(i), it is considered that for Regarding section 32E(l)(a)(i), (c) and (d)(i), it is considered that for a practice review things other than records and documents are not necessary. Accordingly, it is recommended that the words "other things" which may also be subject to abuse should be deleted from these sections.
Proposed amendments
Clause 4
That clause 4 be further amended --
(a) by deleting the proposed section 32C(3) and substituting - (a) by deleting the proposed section 32C(3) and substituting -
"(3) A reviewer who carries out a practice review pursuant to this secton shall "(3) A reviewer who carries out a practice review pursuant to this secton shall make a report to the Practice Review Committee at the conclusion of the practice review
and at any other stage thereof as may be required by the Practice Review Committee.
(3A) A review shall, before making a report required by subsection (3), send a (3A) A review shall, before making a report required by subsection (3), send a dated draft of the proposed report to the practice unit concerned and to each individual (if any) who is named in the report by registered post or recorded delivery addressed to the registered office or registered address of the practice unit or the individual, as the case may be.
(3B) Where - (3B) Where -
(a) a firm, a professional accountant practising on his own account or an (a) a firm, a professional accountant practising on his own account or an a firm, a professional accountant practising on his own account or any other y other individual is sent a draft of a proposed report pursuant to the requirements of subsection (3A), such firm, accountant or other individual may, within the period of 21 days beginning on the day after the draft report is so sent, make submissions or representations in writing to the reviewer concerned as regards the proposed report; and
(b) any submissions or representations are made under paragraph (a), they shall (b) any submissions or representations are made under paragraph (a), they shall be considered by the reviewer concerned.
(3C) A reviewer shall attach to a report r (3C) A reviewer shall attach to a report r A reviewer shall attach to a report referred to in subsection (3) submiss eferred to in subsection (3) submissions or representations (if any) made under subsection (3B) as regards the report in its draft form.
(3D) Where a reviewer makes a report under subsection (3) he shall send to the (3D) Where a reviewer makes a report under subsection (3) he shall send to the practice unit or the individual concerned a copy of such report by registered post or recorded delivery addressed to the registered office or registered address of the practice unit or the individual, as the case may be.";
(b) in the proposed section 32E(1)(a)(i), (c) and (d)(i) by (b) in the proposed section 32E(1)(a)(i), (c) and (d)(i) by deleting ", document or other thing" and substituting "or document".
Question on the amendments proposed, put and agreed to.
MR JAMES TO: Mr Chairman, I move that clause 4 be further amended as set out under my name in the paper circulated to Members.
The amendment to the proposed section 32E(3) aims at clarifying the wording which might have been interpreted so as to extend beyond the normal meaning of legal professional privilege. It is also proposed that the maximum fine for breach of the provisions of the new section 32G(3), that is, the preservation of confidentiality in relation to the performance or functions of practice review be increased from $50,000 to $100,000. The revised penalty will enhance the deterrent effect and will be in line with the penalty provided for conviction upon indictment under the Securities and Futures Commission Ordinance.
Proposed amendments
Clause 4
That clause 4 be further amended --
(a) by deleting the proposed section 32E(3) and substituting: (a) by deleting the proposed section 32E(3) and substituting:
"(3) Nothing in "(3) Nothing in Nothing in this section shall be taken to compel the production by a person this section shall be taken to compel the production by a person of a record or document containing a privileged communication by or to a legal practitioner in that capacity.";
(b) in the proposed section 32G(3) by deleting "$50,000" and substituting (b) in the proposed section 32G(3) by deleting "$50,000" and substituting "$100,000". "$100,000".
Question on the amendments proposed, put and agreed to.
Question on clause 4, as amended, proposed, put and agreed to.
Clause 6
MR MARVIN CHEUNG: Mr Chairman, I move that clause 6 be amended as set out under my name in the paper circulated to Members.
In support of new section 32A(4) which provides that a member of the Practice Review Committee cannot concurrently be a member of the Disciplinary Committee, new
section 34(3) provides an additional safeguard to ensure that the Disciplinary Committee operates more fairly by stipulating that after a person ceases to be a member of the Practice Review Committee he cannot take part in proceedings relating to a complaint referred during the currency of his membership of the Practice Review Committee.
Proposed amendment
Clause 6
That clause 6 be amended, by deleting clause 6 and substituting - "6. Disciplinary provisions "6. Disciplinary provisions
Section 34 is amended -
(a) in subsection (1) - (a) in subsection (1) -
(i) by adding "but subject to section 32D(7)" after "discretion"; and (i) by adding "but subject to section 32D(7)" after "discretion"; and (ii) by adding after paragraph (d) - (ii) by adding after paragraph (d) -
"(da) has failed or neglected to comply, without reasonable excuse, with any "(da) has failed or neglected to comply, without reasonable excuse, with any direction issued under section 32EA(2) and with which he was required by the Practice Review Committee to comply;
(db) has failed or neglec (db) has failed or neglec has failed or neglected to observe, maintain or otherwise apply any ted to observe, maintain or otherwise apply any professional standards;"; and
(b) by adding after subsection (2) - (b) by adding after subsection (2) -
"(3) A person who was a member of the Practice Review Committee at any time when "(3) A person who was a member of the Practice Review Committee at any time when a complaint was made by it under section 32D(5) shall not take part as a member of the Disciplinary Committee in any proceedings relating to such complaint.".".
Question on the amendment proposed, put and agreed to.
Question on clause 6, as amended, proposed, put and agreed to.
No comments yet.
Private notes are available after approval.