1 HONG KONG LEGISLATIVE COUNCIL -- 29 April 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 29 April 1992 HONG KONG LEGISLATIVE COUNCIL -- 29 April 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 29 April 1992 1
OFFICIAL RECORD OF PROCEEDINGS
Wednesday, 29 April 1992
The Council met at half-past Two o'clock
PRESENT
THE DEPUTY PRESIDENT
THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., Q.C., J.P.
THE CHIEF SECRETARY
THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P.
THE FINANCIAL SECRETARY
THE HONOURABLE NATHANIEL WILLIAM HAMISH MACLEOD, C.B.E., J.P.
THE ATTORNEY GENERAL
THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE MRS RITA FAN HSU LAI-TAI, O.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P.
THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. THE HONOURABLE DAVID LI KWOK-PO, O.B.E., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E.
THE HONOURABLE SZETO WAH
THE HONOURABLE TAM YIU-CHUNG
THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P.
THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, J.P.
THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, M.B.E., J.P.
THE HONOURABLE MRS MIRIAM LAU KIN-YEE, J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P.
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 YEUNG SUM
THE HONOURABLE HOWARD YOUNG
THE HONOURABLE ZACHARY WONG WAI-YIN
ABSENT
THE HONOURABLE NG MING-YUM
DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG
IN ATTENDANCE
MR DAVID ALAN CHALLONER NENDICK, C.B.E., J.P. SECRETARY FOR MONETARY AFFAIRS
THE HONOURABLE EDWARD BARRIE WIGGHAM, C.B.E., J.P. SECRETARY FOR THE CIVIL SERVICE
MRS ANSON CHAN, C.B.E., J.P.
SECRETARY FOR ECONOMIC SERVICES
MR MICHAEL LEUNG MAN-KIN, C.B.E., J.P. SECRETARY FOR TRANSPORT
MR JOHN CHAN CHO-CHAK, L.V.O., O.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER
MR ALISTAIR PETER ASPREY, O.B.E., A.E., J.P. SECRETARY FOR SECURITY
MRS ELIZABETH WONG CHIEN CHI-LIEN, I.S.O., J.P. SECRETARY FOR HEALTH AND WELFARE
MR CHAU TAK-HAY, J.P.
SECRETARY FOR TRADE AND INDUSTRY
MR JAMES SO YIU-CHO, O.B.E., J.P.
SECRETARY FOR RECREATION AND CULTURE
THE CLERK TO THE LEGISLATIVE COUNCIL MR LAW KAM-SANG
Papers
The following papers were laid on the table pursuant to Standing Order 14(2): Subject
Subsidiary Legislation L.N. No. Subsidiary Legislation L.N. No.
Marine Fish (Marketing and Exportation)
(Amendment) Regulation 1992...................................... 93/92
Merchant Shipping (Registration) (Fees and
Charges) (Amendment) Regulation 1992........................ Charges) (Amendment) Regulation 1992........................ Amendment) Regulation 1992........................ 94/92
Public Health and Municipal Services (Public
Pleasure Grounds) (Amendment of Fourth
Schedule) (No. 3) Order 1992....................................... 95/92
Births and Deaths Registration Ordinance Births and Deaths Registration Ordinance
(Amendment of First Schedule) Order 1992................... 96/92 (Amendment of First Schedule) Order 1992................... 96/92
Banking (Specification of Public Sector
Entities in Hong Kong) Notice...................................... 97/92
Electricity Ordinance (Cap. 406)
(Commencement) Notice 1992...................................... (Commencement) Notice 1992...................................... 98/92
Electricity (Registration) Regulations (Cap. 406
Sub. Leg.) (Commencement) Notice 1992...................... 99/92 Sub. Leg.) (Commencement) Notice 1992...................... 99/92
Electricity (Wiring) Regulations (Cap. 406
Sub. Leg.) (Commencement) Notice 1992...................... Sub. Leg.) (Commencement) Notice 1992...................... ..................... 100/92
Road Traffic (Registration and Licensing of
Vehicles) (Amendment) (No. 2)
Regulation
1992........................................................... 101/92 1992........................................................... 101/92
British Nationality (Miscellaneous Provisions)
Ordinance (Amendment of Schedule) Ordinance (Amendment of Schedule)
Order
1992................................................................. 102/92 1992................................................................. 102/92
Immigration (Places of Detention) (Amendment)
Order
1992................................................................. 103/92 1992................................................................. 103/92
Immigration (Treatment of Detainees) (Amendment) Immigration (Treatment of Detainees) (Amendment)
Order
1992................................................................. 104/92 1992................................................................. 104/92
Immigration (Vietnamese Refugee Centres)
(Designation) Order 1992............................................. 105/92
Immigration (Vietnamese Refugee Centres) Immigration (Vietnamese Refugee Centres)
(Departure Centre) (Amendment) Rules 1992................. 106/92 (Departure Centre) (Amendment) Rules 1992................. 106/92
Import and Export (Carriage of Articles)
Regulations (Amendment of Schedule)
Order
1992................................................................. 107/92 1992................................................................. 107/92
Import and Export (General) Regulations
(Amendment of Schedules) Order 1992.......................... 108/92 (Amendment of Schedules) Order 1992.......................... 108/92
Public Health and Municipal Services (Public
Pleasure Grounds) (Amendment of Fourth
Schedule) (No. 4) Order 1992....................................... Schedule) (No. 4) Order 1992....................................... 109/92
Public Swimming Pools (Urban Council)
(Amendment) Bylaw 1992............................................ 110/92
Solicitors (Professional Indemnity) (Amendment)
(No. 2) Rules
1992....................................................... 111/92 1992....................................................... 111/92
Sessional Papers 1991-92
No. 70 -- No. 70 -- Report of the Director of Audit on the results of Report of the Director of Audit on the results of value for money audits March 1992
Director of Audit's Report No. 18
No. 71 -- No. 71 -- Mass Transit Railway Corporation Mass Transit Railway Corporation
Annual Report 1991 Annual Report 1991
No. 72 -- No. 72 -- Report of the special meetings of the Finance Committee Report of the special meetings of the Finance Committee on the Draft Estimates of Expenditure 1992-93
Address by Member
Mass Transit Railway Corporation Annual Report 1991
FINANCIAL SECRETARY: Mr Deputy President, in accordance with section 16(4) of the Mass Transit Railway Corporation (MTRC) Ordinance, the Annual Report and Accounts of the Mass Transit Railway Corporation for the year ending 31 December 1991 are tabled today.
In 1991, the MTRC carried about 726 million passengers. Total revenue was $3 In 1991, the MTRC carried about 726 million passengers. Total revenue was $3,553 million, 12% higher than that in 1990. Total operating costs also increased by 12%, owing mainly to rising wages and railway maintenance costs.
I am pleased to report that in 1991 the MTRC registered a net profit even without any contribution from property developments, for the first time. This has been achieved two years earlier than previously forecast. The total net profit for the year was $67 million, compared with a net loss of $108 million in 1990.
At the end of 1991, the Corporation's loans and finance liabilities stood at $ At the end of 1991, the Corporation's loans and finance liabilities stood at $18.4 billion. The year-end debt to equity ratio was 2.7 to 1. Despite the tight financing environment worldwide in 1991, the MTRC was able to raise funds in local and overseas markets successfully. This bears testimony to the high reputation the MTRC continues to enjoy in the international financial community.
The Corporation's results in 1991 are consistent with its long-term financial targets. By the turn of the century, it expects to be able to retire all debts on existing loans.
After the signing of the Memorandum of Understanding on the new airport and related projects, the Government entered into negotiations with the MTRC on the financing, construction and operation of the Airport Railway. Apart from providing a fast, efficient and convenient rail link with the new airport, the Airport Railway will also relieve the MTR Nathan Road Corridor which is already operating close to capacity during peak hours.
The financial support we propose for the Airport Railway project should enable The financial support we propose for the Airport Railway project should enable the Corporation to borrow on acceptable terms the sums needed to finance the project. The principal credit rating agencies have already indicated that they would maintain the MTRC's existing credit ratings on the basis of the financial support proposed.
Over the next five years, the MTRC has budgeted to spend $5 billion on major capital projects to upgrade the existing system through the provision of new facilities and application of modern technology. This underlines its commitment to operating and maintaining a first-class railway.
I would like to take this opportunity to thank the Board, management and staff of the MTRC for their achievements in the past year.
Member's motion
STANDING ORDERS OF THE LEGISLATIVE COUNCIL OF HONG KONG
MRS ELSIE TU: Mr Deputy President, may I have your consent to move that Standing Order 11(1) be suspended to enable the motion on the Order Paper standing in my name to be moved before the asking and answering of questions put to the Government?
DEPUTY PRESIDENT: You have my consent.
MRS ELSIE TU: Thank you, Mr Deputy President. There is a motion standing in my name on the Order Paper to amend Standing Order 16(3) relating to the number of questions for oral answer at question time. It has been thoroughly discussed by the working group on Legislative Council procedures and it has the support of Members. The
Administration has helpfully co-operated to enable it, if agreed to by Council, to be put into practice for today's question time. I will deal with the details of the amendment when I move the motion. However, Standing Order 11(1) provides that motions are normally dealt with after questions. Therefore it is necessary to suspend Standing Order 11(1) to enable the motion to amend Standing Order 16(3) to be moved before question time so that, if agreed to, the amendment is effective for today's question time.
Mr Deputy President, with these remarks, I beg to move.
Question on the motion proposed, put and agreed to.
MRS ELSIE TU moved the following motion:
"That the Standing Orders of the Legislative Council of Hong Kong be amended in Standing Order No. 16(3) by repealing "three" and substituting "six"."
MRS ELSIE TU: Mr Deputy President, I move the motion standing in my name on the Order Paper.
Standing Order 16(3) provides that where, in the opinion of the President, there will be a debate on a substantive motion, no more than three questions shall require an oral reply. As Members are aware, there will be debates on substantive motions at all regular Legislative Council sittings up to the end of the current Session. If the number of oral questions is limited to three, Members will have to wait for a long time before they can raise an oral question in this Council. In order to remedy the situation, Members of the Legislative Council In-House
Meeting agreed that Standing Order 16(3) be suspended at the Legislative Council sittings on 11 March 1992 and 8 April 1992 on a trial basis to allow six oral questions on the Order Paper to be raised. The trial arrangement has proved to be satisfactory, and it is now proposed to amend the Standing Order accordingly.
The proposal was discussed at the Legislative Council In-House Meeting on 24 April 1992 and it was decided that the amendment to Standing Order 16(3) should be moved in the Legislative Council on 29 April 1992, that is today.
Mr Deputy President, I beg to move.
Question on the motion proposed, put and agreed to.
Oral answers to questions
Contingency plan for radiation leakage of Daya Bay nuclear power plant 1. REV FUNG CHI-WOOD asked (in Cantonese): Will the Government inform this Council 1. REV FUNG CHI-WOOD asked (in Cantonese): Will the Government inform this Council
what contingency measures are in hand to ensure that Hong Kong will not be affected in the event of a radiation leakage at the Daya Bay Nuclear Power Station and how the Government assesses whether these measures are practicable and effective?
SECRETARY FOR SECURITY: Mr Deputy President, we have prepared a detailed contingency plan to ensure that we have the necessary machinery and resources to cope with any accident resulting in radiation leakage from the Daya Bay Nuclear Power Plant. We have had expert advice from a number of national and international agencies in
preparing this contingency plan.
We conducted an exercise in November 1990 to test the adequacy of the plan. Experts from the United Nations International Atomic Energy Agency (IAEA) were fully involved in the exercise and its evaluation. They concluded that the exercise had provided a comprehensive test of all the main features of the plan, and that the plan was basically sound.
Since that time work has continued on revising and improving the plan in the light of experience gained in the exercise and in the light of advice from the IAEA. Close contacts have also been maintained with authorities in the United Kingdom, and with other nuclear regulatory authorities and power companies which have provided
information, technical advice and training.
We aim to test the revised contingency plan in a further exercise prior to the We aim to test the revised contingency plan in a further exercise prior to the commissioning of the Daya Bay Nuclear Power Plant, now scheduled for mid to late 1993; to ensure that the plan meets the highest international standards, we shall once again invite evaluation from the IAEA.
REV FUNG CHI-WOOD (in Cantonese): Mr Deputy President, will the Administration inform this Council of the concrete measures laid down in the contingency plan, and whether the details can be released so that members of the public have a part to play and can make early preparations, if necessary?
SECRETARY FOR SECURITY: Mr Deputy President, the plan covers many measures. Perhaps to start with I should say that we do not envisage any large-scale evacuation in the unlikely event of a leak from the Daya Bay Nuclear Power Plant. The standard normally
adopted is to plan for evacuation only up to 10 miles from the site. The east coast of the New Territories is some 20 miles from the site and the main urban areas of Tai Po and Sha Tin are a considerably further distance than that. The only possible evacuation that we are planning for is for Ping Chau in Mirs Bay which has a normal population of less than 10. But we are planning also for the possibility -- and it is very unlikely that this will be necessary -- of the sheltering of people; and we are also planning for the monitoring of food and water supplies at all points of entry into Hong Kong to ensure that no contaminated supplies reach Hong Kong.
We also, of course, need to plan for providing treatment to any returning Hong We also, of course, need to plan for providing treatment to any returning Hong Kong residents who may have been working at or near the nuclear plant and may have been affected by any accident. We also, of course, have to plan for regular monitoring of radiation in the atmosphere.
We do not intend to make the details of the operational plan public but we We do not intend to make the details of the operational plan public but we certainly do intend to inform the public and educate the public on the main elements of our contingency plan.
MR LAU CHIN-SHEK (in Cantonese): Mr Deputy President, what did the Administration learn from the exercise conducted in November 1990 and what was the advice the International Atomic Energy Agency gave?
SECRETARY FOR SECURITY: Mr Deputy President, we learnt a number of things from the exercise. Certainly, we learnt of a number of areas in which improvements could be made, in communication and in the dissemination of information. We have taken account of those and are working those into the revised contingency plan. I suppose that the main lesson we learnt was the crucial importance of having expert advice immediately available to the decision makers so that as information came in it could be assessed by experts in a number of disciplines and explained fully to the decision makers who may not be fully conversant with all the technical knowledge necessary to evaluate information coming in.
DR HUANG CHEN-YA: Mr Deputy President, will the Government inform this Council how many nuclear medicine teams are available, what training they have received in dealing with this kind of problems, what decontamination facilities are available, and how many people can be handled by the facilities and teams available?
SECRETARY FOR SECURITY: Mr Deputy President, I do not have the information to answer that question in detail. All I would say is that we have planned for the possible need to treat people returning from China who may have been affected by the accident. We have arranged for decontamination centres, if necessary, and also for the supply of iodine tablets, if necessary.
DR HUANG CHEN-YA: May I have a written reply, please?
DEPUTY PRESIDENT: A written reply, Secretary for Security?
SECRETARY FOR SECURITY: Yes, Mr Deputy President. (Annex I)
MR MARTIN BARROW: Mr Deputy President, could the Secretary be a little more forthcoming about the links with the Chinese authorities -- including the Shenzhen authorities -- on this subject, and also as to the sort of hotline or other procedures that will be in place?
SECRETARY FOR SECURITY: Mr Deputy President, those are matters which we still have to discuss with the Guangdong authorities. We have now arranged to have a liaison meeting to discuss cross-border arrangements and we expect that the first meeting will be held in June.
MR MAN SAI-CHEONG (in Cantonese): Mr Deputy President, does the Administration have any further contingency measure if the water and food supplied as part of the continency plan are also contaminated? If not, when will this be considered?
SECRETARY FOR SECURITY: Yes, Mr Deputy President, we have planned measures to deal with that problem and, indeed, that was simulated in the exercise we held in November 1990. We have full arrangements for the monitoring of food and water entering Hong Kong from China.
Appointment of Director of Audit
2. MR PETER WONG asked: Will the Government inf 2. MR PETER WONG asked: Will the Government inf MR PETER WONG asked: Will the Government inform this Council of the criteria used orm this Council of the criteria used in the recent exercise to fill the post of Director of Audit; and in particular how much weight was given to the need for a professionally qualified person to head the Audit Department and to the need to implement the avowed aim of localization of key posts?
SECRETARY FOR THE CIVIL SERVICE: The post of Director of Audit is not included in the civil service establishment. The appointment is made by the Governor, as required by section 3 of the Audit Ordinance, and is not subject to the advice of the Public Service Commission. These procedures are different from those which apply to other heads of department.
The criteria normally used for the appointment of heads of department are to select the best person for the job in terms of ability, knowledge and experience. In this case, it is not necessary for the Director of Audit to be a qualified accountant. The previous Director was not so qualified.
Under the Government's localization policy, preference is given to local Under the Government's localization policy, preference is given to local candidates at the recruitment level, and in considering whether to renew the contract of an overseas officer. However, in filling posts at promotion level, local and overseas officers are considered on equal terms, since the overriding aim is to select the best person available, irrespective of their terms of appointment.
The Basic Law stipulates that a foreign national may not fill the post of Director of Audit. The appointment now of an expatriate as the Director of Audit will not prevent the appointment of a local director before l997 so as to satisfy the requirement in the Basic Law. The new Director is a contract officer and will be 57 this year. There will be ample time for a local officer to succeed him when he retires in the normal course in l995.
MR PETER WONG: Mr Deputy President, I am surprised that in the answer to my question
about the criteria used, nothing was said about the independence or perceived independence of the Director of Audit. Did the Governor consider the fact that the appointee was the Senior Principal Assistant Financial Secretary and probably had a hand in many decisions about allocation and use of resources and that it could be said that any work he may undertake to check such allocation and use could be questioned on a lack of impartiality? I would add that this concern is also shared by the Council of the Hong Kong Society of Accountants.
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, as I indicated in my main answer, the Director of Audit is an appointment made by the Governor. I find it difficult to put myself in the mind of the Governor but I have no reason to doubt that the Governor selected the person who, in his judgment, was the best person available in terms of both ability and experience. In other words, I am sure that the Governor has
satisfied himself of the integrity and independence of the individual so appointed. As Mr Peter WONG is aware, the Audit Department operates independently of the Administration and that independence is guaranteed by legislation. The relevant Ordinance allows the Director access to any information he may require, and, above all, it provides that in the performance of his duties and the exercise of his powers the Director shall not be subject to the direction or control of any other person or authority.
As far as conflict of interest is concerned, I must say that the new appointee has unrivalled knowledge of the Government's financial operations. Far from being a conflict, his experience for 18 years in involvement in the government accounts has given him the ability to take over the duties very smoothly.
MR MARVIN CHEUNG: Mr Deputy President, will the Administration advise this Council whether the former Director of Audit made any recommendations as to the choice of his successor and, if so, whether his recommendation was followed?
SECRETARY FOR THE CIVIL SERVICE: Again, I must point out, Mr Deputy President, that this was an appointment by the Governor. I am not myself aware of a recommendation made in that situation.
MR MARTIN LEE: Mr Deputy President, bearing in mind that the Public Accounts Committee of this Council is still examining a report by the former Director of Audit in which he criticized the Government, inter alia, for cost overrun in relation to the construction of the Hong Kong University of Science and Technology, does the Administration not feel that the timing of this appointment and the appointment itself could easily be misunderstood by the public that the Government is trying its best to hamper the independent functioning of the Audit Department?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, the appointment of a new Director was necessitated by the retirement of the incumbent. The timing was out of our hands and in the hands of the then Director. I have already, in an earlier answer, touched on the independence of the Audit Department and the Director of Audit in particular; I might say that in addition to those statutory safeguards, the Director's independence is further protected by his accountability to this Council and, in particular, its Public Accounts Committee.
MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy President, in view of the fact that the independence of the Director of Audit is of vital importance and the post was filled through internal promotion in the past, will the Administration inform this Council why the post left vacant with the retirement of the former Director of Audit has to be filled by a senior official from the Finance Branch instead of through internal promotion, thus undermining the morale of the staff in the Audit Department?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, as I indicated in my earlier answer, the overriding aim in making any senior appointment is to select the best person for the job. Often that person might come from within the Department, although there is no fixed rule in that respect. The appointment of someone from outside the Department is no reflection on the expertise and the dedication of staff in the
Department. It was, as I say, an appointment decided on the basis of making the best use of the talent available. I can understand that the staff might have felt some disappointment. I can only say, from my own experience, that the Administration often has to take difficult, unpopular decisions in the wider interests.
MR TAM YIU-CHUNG (in Cantonese): Mr Deputy President, the appointment has dealt a blow to the morale of the staff within the Department. Will the Secretary explain the decision to the staff or the staff association concerned?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, the staff were informed once the decision had been taken by the Governor, and I myself have also seen the then Acting Director, now Deputy Director.
MISS EMILY LAU (in Cantonese): Mr Deputy President, I was surprised to learn that the new Director will be 57 this year since I had always thought that 57 is the normal retirement age of overseas officers. Will the Administration inform this Council if overseas officers, including the Chief Secretary who has just turned 57 and is now shaking his head, have to retire when they reach 57? Do we still have any
statutory age of retirement within the Civil Service? In addition, will the Administration clarify whether the former Director of Audit had an early retirement and if so, why?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, the answer of course depends on whether the individual concerned is on the Old Pension Scheme or the New Pension Scheme; different arrangements apply. Under the New Pension Scheme an individual can opt to take 60 as his normal retirement age. And 60 is the age which applies throughout the Civil Service, with some exceptions in the disciplined services.
However, in addition to the statutory arrangement, we have introduced our own administrative guideline in the light of the provisions in the Basic Law which allow overseas Administrative Officers, in most cases, to retire at around the age of 57. As far as contract officers are concerned, of course that does not apply, but we would nonetheless apply a normal retirement age of 60.
DR YEUNG SUM (in Cantonese): Mr Deputy President, the Administration expresses its concern about the independence of the Audit Department but the point is whether the man in the street would also find it "independent". Now that a senior official from the Treasury is appointed as the Director of Audit, will the Department's image of independence be tarnished as the people may think that the independence of the
Department is not maintained as a result of the appointment?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, I believe I have answered much
of that question in my reference to independence and the position under the relevant Ordinance of both the Director and his department. In addition, I might repeat that the monitoring function over the Director and his department and his report lies very clearly within this Council.
MR PETER WONG: Mr Deputy President, the Secretary said in answer to me that the new Director is supremely good at checking his own work. Can he explain to this Council how one can be impartial when checking one's own work or decisions that one has made during a previous posting with another department?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, I do not recall saying that the present incumbent would be checking his own work. I believe they were the words of Mr Peter WONG. As I have said on a number of occasions now, the independence is guaranteed by legislation. In his previous job, the present Director was concerned with controlling the Government's expenditure and with ensuring value for money. The value for money activity is one of the prime activities of the Director of Audit and his department. It seems to me this does not conflict with his role but is
complementary to it. I might also add that the responsibility for the use of public funds is vested in Controlling Officers who report to the Finance Committee and the Public Accounts Committee of this Council. The new Director was never a Controlling Officer.
Student suicide
3. MR ERIC LI asked (in Cantonese): Will the Government inform this Council of the 3. MR ERIC LI asked (in Cantonese): Will the Government inform this Council of the following:
(a) the number of student suicide cases in each of the past five years; (a) the number of student suicide cases in each of the past five years;
(b) the number of cases where (b) the number of cases where the number of cases where the students who committed suicide had already been the students who committed suicide had already been referred by their teachers to school social workers or the school discipline and guidance office for counselling; and
(c) whether the Education Department has formulated any guidelines on referring (c) whether the Education Department has formulated any guidelines on referring students to school social workers, advising on the most opportune time to make such
referrals; if not, what the reasons are and whether such guidelines will be formulated in future?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the number of attempted suicides by students reported by schools to the Education Department in each of the past five school years is as follows. In 1987-88 there were 35 reported cases of which eight were fatal; in 1988-89 there were 25 cases of which two were fatal; in 1989-90 there were 26 cases of which one was fatal; in 1990-91 there were 35 cases of which three were fatal; and so far in 1991-92, that is to say, from the beginning of September 1991 until 31 March 1992, there have been 35 reported cases of which 12 were fatal.
I regret that I do not have complete figures for the five years regarding the number of cases where the students who attempted to commit suicide had already been referred by their teachers to school social workers, school discipline and guidance teachers or student guidance officers for counselling. Our records show that
there were 13 such cases in the 1990-91 school year, and 15 such cases so far in the 1991-92 school year.
The Education Department has formulated guidelines on referring students to The Education Department has formulated guidelines on referring students to school social workers. A circular entitled "Guidance Work in Secondary Schools -- A Suggested Guide for Principals and Teachers" was issued in 1986, and another one addressing the up to date situation entitled "How To Help Pupils With Problems" was issued on 1 April 1992. The first of these circulars advised schools how to deploy new guidance staff allocated to them and set up a mechanism to cope with crisis situations amongst students. The second circular gives detailed and practical guidance to teachers on how to develop a more positive and proactive approach to solving students' problems, particularly those that might lead to suicide, before they get out of hand. It also includes specific guidance on when and how to refer students for professional guidance.
MR ERIC LI (in Cantonese): Mr Deputy President, the number of student suicide cases has been increasing rapidly lately, and many members of the public comment on the way parents, principals and the teachers concerned handled the matter, based on what they learnt from news reports. However, nearly all such comments are arguing for the victims, giving a false impression to students and the public that they have no
responsibility to bear and there is no way to help the students in difficulty. Can the Administration inform this Council whether the circular issued recently spelt out the effective measures provided to encourage students to seek help from principals, teachers, social workers or parents when they are in difficulty?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, student suicides are always intensely sad and totally unnecessary. The causes of student suicides are multi-faceted and all parties in society, including the relevant government departments, teachers, parents, voluntary agencies, the media, society at large, can contribute positively to teach children to value their lives. This is something which the Government for its part, and particularly through the Education Department, is addressing. Among the many other steps which are being taken by the Education Department there are plans to produce an educational film entitled "The Philosophy of Life" aimed at inculcating in children the correct attitude towards the value of their existence.
MR VINCENT CHENG: Mr Deputy President, has the Government analysed the reasons behind these tragedies and what action has been taken by the schools to help those who are fortunate enough to remain alive after their attempts to commit suicide?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, various studies have been undertaken by various parties. As I said in my earlier reply, each case has of course its own different background. The problem is basically a societal one and the causes of individual cases can be extremely varied. With regard to action taken by the Government to assist those who have attempted suicide but who are fortunately still alive, the services rendered obviously will have to be tailored to the needs of each individual case; they include counselling, psychological therapy and such
professional help as is considered to be best suited to the individual case.
MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy President, as can be observed in some of the past cases of student suicide, there is nothing unusual about the students in question both in academic performance and conduct and thus might not have aroused the attention of school social workers. Can the Administration inform this Council whether and how it will promote in schools on a wider basis education on the value
of life, in order to prevent students from committing suicide suddenly when they show no outward sign at all that may arouse attention?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, among the measures which are being taken or planned, as I said earlier in my answer to Mr Eric LI's question, the Education Department is planning to produce a film on "The Philosophy of Life" which will be for widespread screening. There have also been other steps taken such as leaflets issued to parents, educational posters and book-marks which are issued to students with appropriate messages and a number of hotlines which students can approach for assistance when they feel that they have a problem which they cannot solve.
DR LAM KUI-CHUN: Mr Deputy President, as different from adult cases, suicide by children usually is impulsive in nature and an understanding of the precipitating causes of such suicide would lead to timely prevention. Would the Secretary for Education and Manpower inform this Council how many of such suicides in the last five years as he has listed were precipitated by academic reasons, family reasons or other social reasons?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I am afraid I have not attempted an analysis of the cases which have occurred over the past five years. At the same time I can refer Dr LAM to a recent study which was undertaken by two members of the Hong Kong University. This was a study published in January 1992 which sought to analyse why some students resorted to suicide. The report concludes that triad influences, academic difficulties, parental separation and family breakdown were areas where students felt most helpless.
MR EDWARD HO: Mr Deputy President, I am quite surprised to find from the second paragraph of the reply that the Secretary does not have complete figures for the cases referred by teachers to counsellors. Since apparently no record of such counselling is made, how can the Government be satisfied that counselling has not been done in a half-hearted manner or on an ad hoc basis?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, in my reply I did say that I do not have the complete figures. I am still researching and trying to find out if those figures do exist. If they do, then I should be pleased to supply the figures to this Council in writing. (Annex II)
PROF FELICE LIEH MAK: Mr Deputy President, in cases of suicide, it is the usual practice to conduct what is technically known as a "psycho-social post-mortem" on the case. Was this done by the schools involved in each of the cases and, if yes, were the results made known to the Education Department?
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I think, as far as I understand, in most of these cases the schools themselves have probably not conducted such studies, although they would no doubt have contributed to coroner's inquiries and so forth. There is a Task Force on Student Suicides within the Education Department which conducts detailed studies into the causes of each incident. There is also, within the framework of the Board of Education, an Advisory Committee on School Guidance and Support Services which undertakes such studies.
Gas safety
4. MR EDWARD HO asked: In view of t 4. MR EDWARD HO asked: In view of t MR EDWARD HO asked: In view of the potential safety hazards posed by gas leak he potential safety hazards posed by gas leakage, will the Government inform this Council what measures are being taken to ensure that gas supply pipes in buildings or under roadways are up to the required standard and are properly installed to prevent leakage?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, gas supply pipes laid underground carry either the gas produced by the Hong Kong and China Gas Company or liquified petroleum gas supplied by the major oil companies. Such installations are controlled under the Gas Safety (Gas Supply) Regulations made under the Gas Safety Ordinance.
The Hong Kong and China Gas Company constructs, tests and maintains its underground piping in accordance with standards approved by the Gas Standards Office of the Electrical and Mechanical Services Department. Surveillance of the system
is carried out by the company using extremely sensitive equipment for detecting leakages. The frequency of surveys is determined in accordance with criteria agreed with the Gas Standards Office but all residential, commercial and industrial areas are surveyed at least twice a year.
The provision of underground piping for liquified petroleum gas is generally restricted to private developments that can provide the necessary storage space and security. Construction, repair and operation of such installations require the prior approval of the Gas Standards Office. The piping is pressure tested every three years by the relevant oil company to ensure that it continues to be leak free.
The gas supply pipework inside buildings includes meters, valves and appliances and is controlled under the Gas Safety (Installation and Use) Regulations. The Gas Safety (Registration of Gas Installers and Contractors) Regulations require that any person who undertakes work on any gas fitting inside a building must be registered as a "gas installer" and be employed by a registered gas contractor. The technical competence of the installers is monitored by the Gas Standards Office. Any unsafe installation detected by a registered gas installer can be made safe or shut off and labelled against use. The rubber tubing used to connect an appliance to the gas supply has to meet requirements more stringent than the relevant British Standards before it may be sold in Hong Kong.
Mr Deputy President, it will be apparent that the Government, in setting up the Gas Standards Office, backed by comprehensive gas safety legislation, and the gas supply companies, in undertaking regular surveys of their piping, take the potential hazards posed by gas leaks very seriously and are taking every practicable measure to safeguard the public against such hazards.
MR EDWARD HO: Mr Deputy President, I am most reassured by the Secretary's reply that the Government is taking every practical measure to safeguard the public against gas leakage hazards. But in view of the recent gas explosion tragedy in Mexico, can the Secretary please advise this Council that similar problems would not occur in Hong Kong?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I would have thought that the risk of such an explosion would be considerably minimized by the extensive controls
over gas installations and maintenance available under the Gas Safety Ordinance and the subsidiary legislation. I have also, in my principal reply, referred to the need for regular surveys and the fact that sensitive equipment is in use to detect leakages promptly so that the fault can be put right promptly. In addition, the Drainage Services Department also has sensitive checking equipment to detect gas leakage and will respond immediately to complaints. In addition to the Gas Safety Ordinance, there are a number of other Ordinances, for example the Dangerous Goods Ordinance, which also control gas installations and maintenance. And I believe that under the Water Pollution Control Ordinance it is also possible to pick up solvents poured into the drainage system and thereby ensure that the necessary remedial action is taken.
MR LEE WING-TAT (in Cantonese): Mr Deputy President, will the Administration inform this Council whether it will step up its efforts in its surveys of piping in industrial areas like Tsing Yi where underground liquified petroleum gas pipes had been installed, and if so, how the surveys will be carried out?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, we believe that the controls imposed under the Gas Safety Ordinance and its subsidiary legislation are adequate to cope with the installations that Mr LEE referred to.
MR PETER WONG: Mr Deputy President, unlike towngas, LPG is odourless and colourless. Should certain requirements as to tracer gases -- which have a high smell factor only unburnt -- be made necessary so as to make detection of leaks easy?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I believe that the Gas Standards Office is currently satisfied that the detailed controls and requirements imposed under existing legislation is adequate to control LPG.
MR EDWARD HO: Mr Deputy President, will the Secretary please advise this Council whether there were incidents of gas leakages leading to potential hazards in the past three years, and how soon they were detected and rectified?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, in the past three years, that is 1991, 1990 and 1989, there were no casualties or fatalities involving incidents with underground gas mains. There were however 34 casualties in 1991, 19 in 1990, and 52 in 1989 involving incidents inside buildings. These of course also included accidents caused either by the carelessness of users or by deliberate acts on the part of the users. I am afraid I am not able to respond immediately as to how quickly these incidents were put right, but I believe that they were put right very promptly in view of the dangers involved.
Infrastructural support for polluting industries
5. MR NGAI SHIU-KIT asked: Mr Deputy President, will the Government inform this 5. MR NGAI SHIU-KIT asked: Mr Deputy President, will the Government inform this Council if any concrete steps have been taken by the Government to provide necessary infrastructural support to industries with high water consumption and environmental impacts, such as bleaching, dyeing and other related industries?
SECRETARY FOR TRADE AND INDUSTRY: Mr Deputy President, a number of steps have been taken to meet the needs of such industries.
Several sites have been sold to heavy water users in the last few years by the Hong Kong Industrial Estates Corporation, particularly in its second industrial estate in Yuen Long. Provision has also been made for the Corporation's third industrial estate in Tseung Kwan O to have an increased water supply and adequate effluent treatment facilities to allow about 10 to 15 hectares of land to be used by water intensive industries. The first sites in this new estate should be ready for sale in early 1994.
The Government has earmarked 12.5 hectares of land for heavy water users in the new industrial zone to be reclaimed at Tuen Mun adjacent to the Tap Shek Kok power station. We are also considering providing more land for water intensive industries in other new industrial areas.
In addition, the Industry Department has recently commissioned a consultancy study to look at the needs of Hong Kong's industries for infrastructural support in the light of environmental protection measures in Hong Kong. The findings of the study are expected to be available in early 1993.
MR NGAI SHIU-KIT: Mr Deputy President, according to the Secretary's reply, the findings of the study are expected to be available in early 1993. But I understand that the said consultancy study was commissioned in early 1991; so may I ask why it takes so long to complete this study?
SECRETARY FOR TRADE AND INDUSTRY: Mr Deputy President, the consultancy study has a very long and complicated set of terms of reference. It would require the consultants to look at all aspects related to the implementation of the White Paper on Pollution in Hong Kong -- A Time to Act which was issued some time ago, and that is why the study will take until early 1993 to complete.
PROF EDWARD CHEN: Mr Deputy President, unless the pollution industries are of extreme importance or generating significant external effects to the economy, otherwise the public should not be subsidizing these industries from general revenue. Would the Secretary advise to what extent and in what way the expenditure on such
infrastructural support has been recovered or will be recovered through levies imposed on the industries concerned?
SECRETARY FOR TRADE AND INDUSTRY: Mr Deputy President, the industries that we are talking about include paper manufacture, bleaching and dyeing, printing and finishing of fabrics, food and beverages, printed circuit manufacture, electroplating and so on. Some of these industries, especially the textile finishing industry, are of great importance to Hong Kong's economy because these particular industries provide an important linkage for the clothing industry; as we all know, the clothing industry in Hong Kong, because of quotas with our bilateral partners which require them to be manufactured in Hong Kong, cannot be moved offshore out of Hong Kong. And the finishing industry in Hong Kong is in a position to respond rapidly to the demands of the clothing industry and that is one of the reasons for the success of the clothing industry in Hong Kong.
MR HENRY TANG: Mr Deputy President, I understand that we are all very concerned about the environment; so would the Secretary advise whether the sites that are sold to
the water intensive industries are adequately protected against effluent discharge? And also, if the sites are not sold to these water intensive industries, how many jobs would be affected in Hong Kong?
SECRETARY FOR TRADE AND INDUSTRY: Mr Deputy President, I cannot provide a precise answer to the last part of Mr TANG's question, but I can say that in 1989, which is the latest year for which I have statistics, the water intensive industries in Hong Kong did provide employment for 46 000 workers in Hong Kong and did contribute close to HK$18 billion worth of industrial output. As regards the first part of the
question, the answer is yes if the industries concerned happen to discharge into waters which have already been declared a water controlled zone.
REV FUNG CHI-WOOD (in Cantonese): Mr Deputy President, will the Administration inform this Council whether there are new effluent treatment facilities in the new industrial zone near Tap Shek Kok? If not, why not?
SECRETARY FOR TRADE AND INDUSTRY: Mr Deputy President, the Tap Shek Kok project is a long way from completion; yet it is envisaged that the first phase of this new industrial zone will not be ready until 1995-96. Therefore at present there are no pollution treatment facilities within that area. But I have no reason to believe that when the new industrial zone is ready for occupation there would not be adequate facilities to treat effluents which might pollute.
MR JIMMY McGREGOR: Mr Deputy President, would the Secretary agree that the dyeing and finishing industries in Hong Kong represent an importance to the economy far beyond their actual employment and output in that they are a link industry between the spinning and weaving industries and the garment industry?
SECRETARY FOR TRADE AND INDUSTRY: Yes, Mr Deputy President, I agree entirely with Mr McGREGOR that the finishing industry contributes to the economy to an extent far greater than its actual output.
MR PETER WONG: Mr Deputy President, since water is one of our scarcest resources and is mostly imported, should it be the Government's policy to encourage the further setting up of water intensive industries in Hong Kong, especially if they are not linked to existing industries?
SECRETARY FOR TRADE AND INDUSTRY: Mr Deputy President, we are not encouraging the setting up of more water intensive or polluting industries. The position remains that the Government does not intervene in decisions made by manufacturers on whether or not to invest in particular industries or whether they should invest in those industries in Hong Kong or outside Hong Kong.
PROF EDWARD CHEN: Mr Deputy President, am I to understand from the Secretary's answer to my last question that no levy will be imposed or has been imposed on such industries to recover part of the cost of infrastructural support? I think that question has not been answered at all.
SECRETARY FOR TRADE AND INDUSTRY: Mr Deputy President, there are at present no plans to do so.
Redevelopment of the Hong Kong Stadium
DEPUTY PRESIDENT: Before we come to the last question, Members ought to be aware of my interest in the question as Deputy Chairman of the Jockey Club. I had thought of stepping down when this question was asked. But under Standing Orders the senior ex officio Member present shall then preside; and as the Government always has an interest in questions, that is not a solution. So I fear I shall have to preside over this question.
At this point Mr Ronald ARCULLI declared interest as a steward of the Jockey Club.
6. MR CHEUNG MAN-KWONG asked (in Cantonese): In view of public concern over the 6. MR CHEUNG MAN-KWONG asked (in Cantonese): In view of public concern over the redevelopment of the Hong Kong Stadium, will the Government inform this Council:
(a) whether the stadium's redevelopment costs, including costs incurred as a (a) whether the stadium's redevelopment costs, including costs incurred as a result of inflation be borne entirely by the Royal Hong Kong Jockey Club, and whether there is a need for the Hong Kong Government to undertake to pay any of the costs;
(b) how the stadium will be used after its redevelopment; and in case of oper (b) how the stadium will be used after its redevelopment; and in case of operating losses, which institution will bear the losses incurred?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, the costs for redeveloping the Hong Kong Stadium will be borne solely by the Royal Hong Kong Jockey Club. The Hong Kong Government will not be required to make any contributions.
The new stadium, when it is completed, will be used for sporting and mass entertainment activities that will attract large crowds. The authority responsible for the management of the new stadium will have to bear all operating costs.
MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy President, given that the management authority of the new Hong Kong Stadium is not a note issuing authority, will the Administration inform this Council whether taxpayers' money will be used to fund any operating loss if the decision in excluding an athletic track in the design of the new stadium should prove to be wrong and lead to underutilization? Will anyone be held responsible for the inadequate design? Furthermore, since there will not be an athletic track in the redeveloped stadium, can the Administration inform this Council how it will ensure that an up-to-standard venue will be provided for school or joint-school sports events, the latter of which would involve more than 10 000 participants, so that normal school athletic activities will not be affected?
DEPUTY PRESIDENT: Secretary for Recreation and Culture, have you got all the questions?
SECRETARY FOR RECREATION AND CULTURE: Yes, Mr Deputy President. The existing Hong Kong Stadium is, under the Memorandum of Administrative Arrangements entered into between the Government and the Urban Council, managed by the Urban Council, and at present it is suffering a net deficit in its management costs. Under that same
memorandum, the Urban Council will have first call for managing the new redeveloped stadium and my understanding from discussions with the Urban Council is that they would wish to carry on managing the stadium. So I presume the management costs of the new stadium will be totally borne by the Urban Council.
As regards the second part of Mr CHEUNG's question, an arrangement has already been worked out between the Urban Council and the Schools Authority to make available adequate facilities to accommodate the requirements of schools. These arrangements include making available spare capacity at existing Urban Council sports grounds. Also, the Urban Council has agreed to open up the Wan Chai Sports Ground for school use in general and, in addition, the Urban Council has agreed to upgrade the Aberdeen Sports Ground to provide for a seating capacity of 12 000 and also to build an
additional sports ground either at Siu Sai Wan or at Tai Hang Tung to accommodate school athletic activities which may require a large capacity.
MR MARVIN CHEUNG: Mr Deputy President, will the Administration confirm to this Council that no government funds out of the General Revenue Account will be involved in funding any operating losses of the stadium, including any additional grants or subsidies which will need to be given to the authority responsible for its management to fund those losses, if for any reason the Urban Council is not given the responsibility to manage the stadium?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, I think it is early days yet to make the presumption that the Urban Council would not agree to manage the new stadium. My understanding, as I said earlier, from discussions with the Urban Council, is that they are interested in carrying on the management of the new stadium.
MR HOWARD YOUNG: Mr Deputy President, could the Secretary confirm that the provision of a running track in such stadiums usually has the effect of increasing losses rather than mitigating losses? And also, could he inform us if any studies have shown that the stadium is going to be a loss maker or that it is actually going to return some profits?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, the experience of the Urban
Council in managing the existing stadium has indicated that the inclusion of an athletic track in the stadium is likely to result in added management costs. And because the new stadium will not have an athletic track, it is likely that the total management costs will be significantly reduced.
MR FREDERICK FUNG (in Cantonese): Mr Deputy President, the new stadium is designed for mass spectator sports or mass entertainment events which may not be so popular in Hong Kong. Given that the Urban Council relies on rates as its source of revenue, if the Urban Council will have first call for managing the stadium and should there be financial difficulties in the future, it will mean that public money will be used to fund those events or other activities that can hardly relate to the purpose for which the new stadium is built. Has the Administration given thought to who should be responsible for the loss?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, I would like to say that the Jockey Club has undertaken a consultancy study on the future viability of the redeveloped stadium based on the fact that it will be used for mass spectator sports and mass entertainment events, and the consultancy study indicates that the
management of the stadium will be viable and that there is likely to be a surplus arising out of the management of the stadium. I would also like to point out that, as indicated in an earlier answer to this question, the Urban Council is at present already suffering a loss in its management of the existing stadium and that deficit is being borne by the Urban Council through the rates.
MR MAN SAI-CHEONG (in Cantonese): Mr Deputy President, will the Administration inform this Council in what way the redeveloped stadium can really promote the development of sports in the territory and serve as a venue mostly for athletic events rather than for concerts, which in fact is what the Hong Kong Coliseum and the Queen Elizabeth Stadium have been doing?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, I think this is a matter
for the future management authority to promote but the facilities to be provided in the new stadium will clearly make it much more attractive for mass entertainment sports like soccer, rugby, five-a-side football and various other mass spectator sports of that kind to take place.
MR LEE WING-TAT (in Cantonese): Mr Deputy President, will the Administration confirm to this Council that any deficit in management costs each year will be borne by the Jockey Club upon redevelopment of the stadium?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, I think I have answered this question earlier. The costs of management of the new stadium will be borne by whichever authority that has accepted the management of the stadium and will not be borne by the Royal Hong Kong Jockey Club.
MISS EMILY LAU (in Cantonese): Mr Deputy President, could the Administration inform this Council of the number of days out of a year the redeveloped stadium will be filled to capacity? I have some reliable source of information which says that, according to estimate, there will only be four days out of a year when rugby is held that we will have full house in the stadium. Could I ask whether this is accurate or does the Administration have other data to substantiate the claim of a higher utilization rate?
SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, I do not think we have figures to indicate how many days out of a year the new stadium is likely to be filled; it all depends on the usage made of the new stadium by the various sporting associations, like the Hong Kong Football Association, the Hong Kong Rugby Association and other sports bodies. But we have undertaken a consultancy study and that has shown that the number of days to be used for mass spectator sports, together with a sprinkling of mass entertainment events, will ensure that the stadium is going to be a viable concern.
Written answers to questions
Industrial accidents
7. MR LAU CHIN-SHEK asked: With regard to casualty and emergency cases handled by 7. MR LAU CHIN-SHEK asked: With regard to casualty and emergency cases handled by public hospitals, will the Government inform this Council of the following:
(a) the number of cases caused by accidents in each o (a) the number of cases caused by accidents in each o the number of cases caused by accidents in each of the three years from 1989 f the three years from 1989 to 1991; and how many of these cases are related to industrial, household and traffic accidents respectively; and
(b) among the cases involving industrial accidents, how many are related to (b) among the cases involving industrial accidents, how many are related to injuries to the eyes, limbs, head and back respectively?
SECRETARY FOR HEALTH AND WELFARE: The following is a breakdown of traumatic Accident and Emergency (A&E) cases handled by public hospitals between 1989 and 1991:
1989 1990 1989 1990 1991
No of No of No of No of No of No of No of No of
A&E In-patients A&E In-patients In-patients A&E In-patients In-patients In-patients A&E In-patients In-patients
Cause attendances Cause attendances attendances admitted admitted admitted attendances attendances attendances admitted admitted admitted attendances attendances attendances admitted admitted Industrial 106 692 Industrial 106 692 106 692 14 241 100 482 100 482 100 482 11 706 103 649 103 649 103 649 10 123
Domestic 77 555 Domestic 77 555 12 565 75 226 11 152 79 014 10 074
Traffic 23 725 Traffic 23 725 3 939 22 342 3 190 22 736 2 973
Others* 9 818 Others* 9 818 6 172 52 979 6 173 49 312 4 706
Total 217 790 Total 217 790 217 790 36 917 251 029 251 029 251 029 32 221 254 711 254 711 254 711 27 876
* Others refer to assault, sport, animal bite, insect bite and other traumatic cases. Meanwhile, the number of work-related accidents reported to the Employees' Meanwhile, the number of work-related accidents reported to the Employees'
Compensation Division of the Labour Department are 97 450 for 1989, 94 938 for 1990 and 87 827 for 1991.
The following is a further breakdown of traumatic A&E cases involving industrial accidents for 1989 and 1991:
1989 1990 1989 1990 1991
Total Total Total Total Total
Injuries attendances Injuries attendances attendances % attendances attendances attendances % attendances attendances attendances %
Skull 10 809 Skull 10 809 10.13 9 376 9.33 11 710 11.30
Face and neck 7 302 Face and neck 7 302 6.85 6 141 6.11 6 630 6.40
Hand 34 722 Hand 34 722 32.54 32 834 32.68 33 174 32.00
Arm 10 531 Arm 10 531 9.87 9 877 9.83 9 414 9.08
Leg and foot 23 189 Leg and foot 23 189 21.74 22 118 22.01 23 135 22.32 Trunk 11 858 Trunk 11 858 11.11 12 334 12.28 12 446 12.01
Eye 5 174 Eye 5 174 4.85 4 954 4.93 4 343 4.19
Others 3 107 Others 3 107 2.91 2 848 2.83 2 797 2.70
Total 106 692 Total 106 692 106 692 100.00 100 482 100 482 100 482 100.00 103 649 103 649 103 649 100.00
Regular attendance of Branch Secretaries at Legislative Council sittings
8. MR JIMMY McGREGOR asked: Will the Government inform this Council whether, sub 8. MR JIMMY McGREGOR asked: Will the Government inform this Council whether, subject to any necessary amendments to Standing Orders, it will consider arranging, on a regular basis, say, once a year, for Branch Secretaries to attend public sittings of the Council at which Members may discuss matters in the Branch Secretaries's
respective policy areas?
CHIEF SECRETARY: Mr Deputy President, arrangements already exist for Branch Secretaries and their senior staff to brief Legislative Councillors regularly on their respective policy areas through meetings of the various OMELCO panels and at special meetings of the Finance Committee to examine the annual Estimates of Expenditure. Moreover, policy matters can be raised at sittings of the Council
during question time and at the debates on the Governor's address and on the Budget. If a majority of Members wished these arrangements to be supplemented or replaced by regular meetings with Branch Secretaries we would be prepared to consider such a proposal.
Reclamation in Central and Wan Chai Districts
9. MR WONG WAI-YIN asked: In view of the reclamation works to be undertaken along 9. MR WONG WAI-YIN asked: In view of the reclamation works to be undertaken along Central and Wan Chai Districts, will the Government inform this Council of the following:
(a) the affected (a) the affected the affected area and commencement date of the reclamation project; area and commencement date of the reclamation project; (b) which ferry piers will be affected or even need to be relocated; and (b) which ferry piers will be affected or even need to be relocated; and
(c) what measures the Government will take to ensure that the project will not (c) what measures the Government will take to ensure that the project will not affect sea transport services along Central and Wan Chai Districts?
SECRETARY FOR TRANSPORT: Mr Deputy President,
(a) The contract for Phase 1 of the Central and Wan Chai Reclamation is planned (a) The contract for Phase 1 of the Central and Wan Chai Reclamation is planned to start in September 1992. The scope of the works is shown in the map at the Annex. The start dates for subsequent phases of the reclamation have yet to be decided.
(b) The Phase 1 reclamation will cut off marine access to the piers now located (b) The Phase 1 reclamation will cut off marine access to the piers now located between Rumsey Street in the west and the General Post Office in the east. They comprise the Government Pier near Harbour Building, the Outlying District Ferry Services Pier, the Central Harbour Ferry Services Pier, the Jubilee Street Ferry Pier and the Blake Pier.
(c) These piers provide berthing points for 13 ferry services. Sufficient (c) These piers provide berthing points for 13 ferry services. Sufficient replacement piers will be provided on the new waterfront for all existing ferry services to the outlying islands and those inner-harbour services which remain financially viable.
As the Phase 1 reclamation will be done in two stages, the existing piers will remain in use until all the affected ferry services have been relocated either
to the new piers on the first stage of the reclamation or to temporary berths nearby. There will therefore be no break in services.
Departments concerned are working out the detailed phasing of works and Departments concerned are working out the detailed phasing of works and transitional traffic arrangements to ensure that the safety and operation of the ferry services is maintained and any inconvenience to passengers minimized.
Annex
Committee on Legislative Priorities
10. MR PETER WONG asked: Will the Government inform this Council of the workings of 10. MR PETER WONG asked: Will the Government inform this Council of the workings of the Committee on Legislative Priorities and its membership?
CHIEF SECRETARY: Mr Deputy President, the Committee on Legislative Priorities was established in August 1991 with the objective of co-ordinating and determining the Administration's legislative priorities. The Committee's main task is to draw up well in advance of the beginning of each legislative Session a tentative legislative programme for the Session, on the basis of proposals from branches and departments. Thereafter it regularly reviews progress and makes adjustments where appropriate.
The Committee is chaired by me. Its members include the Financial Secretary, the Attorney General, the Law Draftsman, the Director of Administration, the Information Co-ordinator and the Clerk of Councils.
Renewal of driving licences
11. MR TIMOTHY HA asked: Given that full driving licences must be renewed annually 11. MR TIMOTHY HA asked: Given that full driving licences must be renewed annually or every three years, will the Government inform this Council:
(a) of the number of persons who were: (a) of the number of persons who were:
(i) served with Fixed Penalty tickets, and (i) served with Fixed Penalty tickets, and
(ii) summonsed and convicted for driving with an expired licence in each of (ii) summonsed and convicted for driving with an expired licence in each of the past three years;
(b) of the reason for giving one and three-ye (b) of the reason for giving one and three-ye of the reason for giving one and three-year renewal options only; and ar renewal options only; and
(c) whether consideration will be given to additional five, seven, ten-year or (c) whether consideration will be given to additional five, seven, ten-year or even life options in order to minimize inconvenience to drivers and to reduce administrative costs; and if not, why not?
SECRETARY FOR TRANSPORT: Mr Deputy President,
(a) The number of persons who were served with Fixed Penalty tickets and summ (a) The number of persons who were served with Fixed Penalty tickets and summonses for driving with expired driving licences in the past three years are as follows:
Year Fixed Penalty Tickets Year Fixed Penalty Tickets Fixed Penalty Tickets Summons Summons
1989 7 976 1989 7 976 828
1990 8 03 1990 8 036 806
1991 9 466 1991 9 466 562
Figures on convictions are not available, but the number of acquittals is believed
to be small.
(b) The main reason for allowing only one and three-year renewal options is to (b) The main reason for allowing only one and three-year renewal options is to maintain an up-to-date record of drivers' addresses to facilitate correspondence and serving summonses for traffic offences. It also helps to ensure the prompt payment of fines imposed for traffic offences.
(c) The Government has previously considered the possibility of extending the (c) The Government has previously considered the possibility of extending the validity period of driving licences on several occasions, but has concluded that this should not be pursued. The main reasons, which remain valid today, are:
(i) notwithstanding their legal obligation to notify the Transport Department (i) notwithstanding their legal obligation to notify the Transport Department of any change in address, in practice most drivers report changes only when they renew their licences. Extending the validity period of driving licences would mean that the recorded addresses of many drivers would be out of date, thus causing difficulties in serving summonses, and so on; and
(ii) under the Fixed Penalty (Traffic Contraventions) and Fixed Penalty (ii) under the Fixed Penalty (Traffic Contraventions) and Fixed Penalty (Criminal Proceedings) Ordinances, the Commissioner for Transport may refuse the renewal of a driving licence until the holder has paid all outstanding fines for traffic offences. An extension of the validity period may lead to a greater accumulation of fines due to the Government.
On the question of administrative costs, if all driving licences were valid for a longer period of say 10 years, the Government would achieve a small saving estimated at $0.4 million each year. It is likely however that such saving would be more than offset by the loss in unpaid fines. As for convenience to drivers, in 1991, 47% of applications for renewal of a full driving licence were for a period of one year, while the remaining 53% were for three years. This shows that despite the greater convenience of the three year licence, almost half of motorists would still prefer to renew for only one year.
Airport Core Programme projects
12. MR HENRY TANG as 12. MR HENRY TANG as MR HENRY TANG asked: In view of the recent statement by the Secretary for Eco ked: In view of the recent statement by the Secretary for Economic Services that Kai Tak Airport might not reach saturation in 1993 as earlier predicted, will the Government inform this Council whether consideration will be given to
rescheduling the Airport Core Programme projects in order to reduce the inflationary pressure which will be brought about by these projects when they are all in the course of implementation?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, earlier predictions that Kai Tak might become saturated as early as 1993 were based on the assumption of a continuing trend in growth in air traffic of around 10% per annum. As a result of the Gulf War and a continuing downturn in world economies in 1991, air traffic volumes worldwide slumped in 1991 and Kai Tak recorded an increase of only about 2.5% in air passengers and 3.7% in aircraft movements in that year. As a result, it is safe to assume that the situation at Kai Tak is likely to be less critical in 1993 than previously expected. Nevertheless, it is still likely that, by mid-1994, severe problems will emerge as airlines become unable to find acceptable landing slots at Kai Tak. Problems in this respect are already occurring at Kai Tak; it is only a matter of degree. By mid-1994, the situation is likely to have become so serious that the economy as a whole will begin to suffer significant disbenefits as it becomes impossible to provide airport capacity to meet growing air traffic demands.
It remains our view that even one year of "saturation" at Kai Tak should be a It remains our view that even one year of "saturation" at Kai Tak should be avoided if at all possible, let alone the three years now expected. There is, therefore, no case for relaxing the timetable for the implementation of the Airport Core Programme in economic terms.
Every effort will continue to be made to implement the programme of works in a Every effort will continue to be made to implement the programme of works in a way that eases any inflationary impact they may have. Stringent cost controls and the importation of labour are important measures which will assist in meeting this objective.
Siting of British Consulate in Hong Kong after 1997
13. MR HENRY TANG asked: Will the Government inform this Council whether the land 13. MR HENRY TANG asked: Will the Government inform this Council whether the land on which Colvin House now stands will be granted to the British Government as the site for her consulate in Hong Kong after 1997, and if so, will it inform this Council of the terms and conditions of such grant?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the Hong Kong Government has agreed to grant by private treaty the Colvin House site of about 6 500 sq m for the post-1997 British Consulate-General. The lease will be for a period up to 30 June 2 047 at a premium of $1,000. Land rent up to 30 June 1997 will be $1,000 per annum and thereafter at 3% of the rateable value of the lot. The user will be restricted to the British Consulate-General, ancillary accommodation and the British Council.
New immigrants from China
14. DR CONRAD LAM asked: In view of the large number of new immigrants from China 14. DR CONRAD LAM asked: In view of the large number of new immigrants from China to Hong Kong each year, will the Government inform this Council:
(a) of the number of these immigrants, and their age distribution, in the past (a) of the number of these immigrants, and their age distribution, in the past three years;
(b) what corresponding actions have been taken by the Government to meet the n (b) what corresponding actions have been taken by the Government to meet the needs of these new immigrants in respect of education, employment and services for the elderly;
(c) what channels are available to the Government to understand the way in which (c) what channels are available to the Government to understand the way in which these new immigrants live in Hong Kong; and
(d) to the knowledge of the Government, what the most difficult problems facing (d) to the knowledge of the Government, what the most difficult problems facing these immigrants in integrating into the society are; and what the Government has done to help them overcome these difficulties?
CHIEF SECRETARY: Mr Deputy President,
(a) There are 81 953 new immigrants from China in the past three years. The age (a) There are 81 953 new immigrants from China in the past three years. The age distribution is at Annex.
(b) The Go (b) The Government, in planning future provision of education, employment and vernment, in planning future provision of education, employment and elderly services, as well as other services and facilities, takes into account the impact of Chinese immigrants on local population projection and demographic profile to ensure that their needs are taken into account in the projected demand for services.
(c) The demographic profile of the immigrants, the types of services and (c) The demographic profile of the immigrants, the types of services and assistance they commonly seek from government departments and voluntary agencies, and statistics collected by voluntary agencies help to provide information about the life and needs of new immigrants from China.
(d) From the demands for services provided by the Social Welfare Department and (d) From the demands for services provided by the Social Welfare Department and voluntary agencies, the most common problems faced by new immigrants from China include language, adjustment to the local culture and life style, schooling of children, and employment. To help new Chinese immigrants overcome their difficulties, the Social Welfare Department provides counselling service and other assistance programmes through the 53 government run and subvented families services centres in the territory. Special services directed at new Chinese immigrants are also provided through subvented agencies. For example, the International Social Service offers a comprehensive range of services to new immigrants. These include migration counselling, briefings and film shows to help immigrants integrate into the local community; Cantonese and English classes, and orientation tutorial groups for children of immigrant families; and a Travellers' Aid Service counter at Hung Hom Railway Station to help new arrivals to contact their families and relatives, as well as giving general advice and help.
Annex
Distribution of legal immigrants from China by age
and by sex in 1989, 1990 and 1991
1989 1990 1989 1990 1991
Age Group Sex Age Group Sex No. % No. % No. %
Under 15 M Under 15 M 4 492 16.48 4 597 16.43 4 143 15.50 F 3 702 F 3 702 13.58 3 814 13.63 3 442 12.84
15 - 24 M 15 - 24 M 2 404 8.82 2 439 8.72 2 374 8.88
F 2 251 F 2 251 8.26 2 106 7.81 2 180 8.20
25 - 34 M 25 - 34 M 1 603 5.88 1 579 5.64 1 637 6.13
F 4 598 F 4 598 16.87 4 985 17.83 4 828 18.07
35 - 44 M 35 - 44 M 1 098 4.03 1 194 4.27 1 099 4.11
F 3 093 F 3 093 11.35 3 407 12.46 3 369 12.61
45 - 54 M 45 - 54 M 460 1.69 472 1.69 467 1.75
F 1 495 F 1 495 5.49 1 404 5.02 1 456 5.45
55+ M 482 1.77 495 1.77 448 1.69
F 1 562 F 1 562 5.73 1 303 4.66 1 250 4.70
Unknown M Unknown M 6 0.02 6 0.02 6 0.02
F 9 0.03 15 0.05 15 0.05
M 10 545 M 10 545 38.69 10 782 38.54 10 174 38.08
Total F Total F 16 710 61.31 17 194 61.46 16 548 61.92
T 27 255 T 27 255 100.00 27 976 100.00 26 722 100.00
Public housing for civil servants
15. MR GILBERT LEUNG asked: In connection with the public housing quota arrangement 15. MR GILBERT LEUNG asked: In connection with the public housing quota arrangement for civil servants, will the Government inform this Council:
(a) of the annual quota of public housing units for application by junior civil (a) of the annual quota of public housing units for application by junior civil servants in the past five years; what the eligibility criteria are;
(b) of the number of applications received from civil servants each year for (b) of the number of applications received from civil servants each year for allocation of such units and the length of service normally required for successful allocation;
(c) whether the Administration will (c) whether the Administration will whether the Administration will increase the quota of such units for increase the quota of such units for applications from civil servants in the foreseeable future; and
(d) whether the Administration is going to offer any assistance to those civil (d) whether the Administration is going to offer any assistance to those civil servants who have over ten years of service but are still unsuccessful in getting their housing units after repeated applications so that their housing problem may be solved?
SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President,
(a) Since 1985-86, the annual quota of public housing units for civil servants (a) Since 1985-86, the annual quota of public housing units for civil servants has remained at 1 700 units, of which 600 (the Special Quota) are earmarked for the rank and file of the disciplined services who are occupying departmental quarters and are within 10 years of retirement.
Under the General Quota (1 100 units), all civil servants with at least two Under the General Quota (1 100 units), all civil servants with at least two years of service and whose income does not exceed MPS Pt. 21 ($14,740 per month) or equivalent may apply. Rank and file officers of the disciplined services who have at least two years of service and are not occupying departmental quarters may also apply under the General Quota. Dependants of officers who died in service whilst occupying departmental quarters are given priority in the allocation of flats.
(b) About 7 000 applications are received each year. The chances of success d (b) About 7 000 applications are received each year. The chances of success depend mainly on the length of service of the applicant and the choice of housing estate. The average length of service of successful applicants is nine years, but some officers with five years of service have also been successful in obtaining units in less popular estates.
(c) The Housing Authority is unlikely to provide more public housing units for (c) The Housing Authority is unlikely to provide more public housing units for civil servants in the foreseeable future in view of the overall supply and demand situation.
(d) All civil servants with at least 10 years of pensionable service may a (d) All civil servants with at least 10 years of pensionable service may apply for a housing loan equivalent to the maximum commuted pension gratuity earned at the time of application. The loan is repayable over a period of ten years with interest at a concessionary rate. Junior civil servants with 20 years of service may also apply for the Home Purchase Scheme which is subject to an annual quota of 1 800 places.
Flood prevention
16. MR LEE WING-TAT asked: With the advent of the rainy season, will the Government 16. MR LEE WING-TAT asked: With the advent of the rainy season, will the Government inform this Council:
(a) whether preventive measures will be (a) whether preventive measures will be whether preventive measures will be taken to clear all drains, so that in taken to clear all drains, so that in
the event of heavy rain no flooding will occur as a result of blocked drainage; and
(b) whether construction sites will be inspected to ensure that no silt, sawdust (b) whether construction sites will be inspected to ensure that no silt, sawdust and other construction wastes will flow from the sites into the drains causing blockage?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the Drainage Services Department operates a preventive maintenance programme to inspect major stormwater drains, culverts, nullahs and blockage blackspots regularly. Any silting and blockage inside the drains is cleared and defects and damage are repaired before the rainy season so as to minimize flooding. In 1991 the Department inspected 300 km of stormwater drains, culverts and nullahs, 90 km of which were subsequently
cleared with a total of 75 000 cu m of silt being removed.
Construction sites which involve significant earthworks may cause sand and silt to be washed into the public drainage system during heavy rain. Where government departments are in charge of sites, they are responsible for ensuring that adequate measures are taken to prevent erosion, for constructing temporary drainage systems to intercept surface runoff, and for providing sand traps and vehicle washing
facilities to prevent silt and debris from flowing into the public drainage system. Such preventive works are normally carried out by contractors and are supervised and inspected regularly by government staff. A standing instruction is promulgated before every rainy season to remind all resident site staff to ensure that contractors' works are designed and maintained to prevent flooding. As regards private sector construction sites, authorized persons and registered contractors are responsible for similar precautionary measures. A reminder is sent by the Director of Buildings and Lands to all authorized persons and registered contractors before the onset of the rainy season to this effect.
Consultancy studies commissioned by the Economic Services Branch 17. DR SAMUEL WONG 17. DR SAMUEL WONG DR SAMUEL WONG asked: Will the Government inform this Council: asked: Will the Government inform this Council:
(a) what consultancy studies have been commissioned by the Economic Services (a) what consultancy studies have been commissioned by the Economic Services Branch in the past five years;
(b) what are the purposes, the areas of study, and the cost of each study; and (b) what are the purposes, the areas of study, and the cost of each study; and
(c) briefly wha (c) briefly wha briefly what action has been taken in the light of the findings of each s t action has been taken in the light of the findings of each study?
SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, over the past five years the Economic Services Branch has commissioned four consultancy studies of which two were related to telecommunications and two on the environmental aspects of the Daya Bay Nuclear Power Plant. Details of each of these studies are as follows:
Consultancy studies on telecommunications
In 1989 Arthur D. Little Asia Pacific was commissioned to undertake a technical In 1989 Arthur D. Little Asia Pacific was commissioned to undertake a technical and financial evaluation of proposals, received in response to a government invitation issued in 1988, to provide a combined cable TV and competing second local telecommunications network. This evaluation was required to assist the Government in selecting a franchisee to undertake the project concerned. The Government's recommendations were put to the Executive Council in mid-1989 in the context of the cable TV/second television network proposals which subsequently led to the selection of Hong Kong Cable Communications Limited to undertake the project.
A second study in the field of telecommunications policy was conducted in 1991. Further to the work they had carried out in 1988 under a study commissioned by the Post Office, Booz, Allen & Hamilton Inc. was commissioned to provide an economic evaluation of the broad options available for the further development of
telecommunications services in Hong Kong. The study encompassed a survey of regulatory trends overseas and an assessment of the implications of technological development for further liberalization of the telecommunications market. Its findings have made an important contribution to the review of telecommunications policy which is now being undertaken by the Economic Services Branch.
Consultancy studies related to the Daya Bay Nuclear Power Station
The United Kingdom Atomic Energy Authority was engaged to conduct two consultancy studies on environmental aspects of the Daya Bay Nuclear Power Station. The purpose of the first study, conducted in 1987, was to provide advice on contingency planning to deal with the potential consequences for Hong Kong of a major nuclear reactor accident at Daya Bay. The study's recommendations have formed the basis for the contingency plan currently being developed by the Secretary for Security.
The purpose of the second study, conducted in 1990, was to assess the risks to Hong Kong from possible accidents at the Daya Bay Nuclear Power Station. The study concluded that the health risks associated with accidents at Daya Bay are much lower, by a very large margin, than others encountered by Hong Kong people in everyday life. The assessment has been noted and taken into account in our contingency planning.
In addition to the above consultancies, the Economic Services Branch has rece In addition to the above consultancies, the Economic Services Branch has recently also been responsible for steering the airport financial consultancy commissioned by the Finance Branch. Wardley Capital Limited and a Canadian sub-consulting team: Marshall Macklin Monaghan were appointed to conduct this study which commenced in August 1990 and has just been completed. The primary objectives of the study were to provide an analysis of the financial viability of the project and to recommend an appropriate financing strategy. Its results, taken together with the outcome of discussions which have taken place recently between the Government and the
Provisional Airport Authority, have provided the basis for the financial plan for the new airport project on which Members of the Legislative Council Ad Hoc Group to Study the Financial Arrangements for the New Airport and Related Projects will be briefed by the Administration shortly.
The total cost of the above consultancy studies, including the one commissioned by the Finance Branch, is of the order of $18 million.
Signposting for Convention and Exhibition Centre
18. MR HOWARD YOUNG asked: With an increasing number of international conferences 18. MR HOWARD YOUNG asked: With an increasing number of international conferences and exhibitions being held at the Convention and Exhibition Centre, attended by overseas delegates, will the Government inform this Council what measures are being taken to improve signposting directing visitors to the Centre?
SECRETARY FOR TRANSPORT: Mr Deputy President, ten new directional signs were installed recently to direct pedestrians and visitors to the Convention and Exhibition Centre. These extend from the Wan Chai MTR station to the Centre, and should assist overseas visitors in particular.
Clearance of Temporary Housing Areas
19. MR PANG CHUN-HOI asked: Regarding the clearance of Temporary Housing Areas 19. MR PANG CHUN-HOI asked: Regarding the clearance of Temporary Housing Areas MR PANG CHUN-HOI asked: Regarding the clearance of Temporary Housing Areas and the resettlement of residents thereof, will the Government inform this Council:
(a) whether there are plans to clear all Temporary Housing Areas by 1995-96; if (a) whether there are plans to clear all Temporary Housing Areas by 1995-96; if so, what the timetable for these clearances is;
(b) which departments are responsible f (b) which departments are responsible f which departments are responsible for the environmental hygiene and regular or the environmental hygiene and regular inspection and maintenance of all the facilities in the Temporary Housing Areas yet to be cleared; how often these inspections are conducted; and
(c) whether the Government is currently adopting a policy of "local (c) whether the Government is currently adopting a policy of "local whether the Government is currently adopting a policy of "local rehousing" rehousing" for residents affected by the clearance of Temporary Housing Areas?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, the Housing Authority started a clearance programme of Temporary Housing Areas (THAs) in 1988 with a view to rehousing an average of about 14 000 residents each year. Under this programme, 39 THAs have been cleared and nearly 40 000 residents rehoused so far. The programme aims to clear about 90% of the present 67 000 THA residents by 1995-96. The remaining few thousand will be rehoused as soon as possible thereafter.
The Housing Department is responsible for the environmental hygiene, cleansing, security and maintenance of THAs. THAs are inspected regularly by the management staff to ensure the structures and facilities are maintained to an acceptable standard.
It is not to be feasible to offer local rehousing to all those affected by THA clearances, particularly in the urban area where the supply of reception accommodation is limited. The current policy is to rehouse those affected by urban clearances in the urban or extended urban areas, such as Sha Tin, Tseung Kwan O, Tsuen Wan and Kwai Tsing.
Effect of cessation of rates relief on CPI
20. MR FRED LI asked: Will the Government inform this Counc 20. MR FRED LI asked: Will the Government inform this Counc MR FRED LI asked: Will the Government inform this Council of the effect of the il of the effect of the cessation of the rates relief scheme on the Consumer Price Index (A) and on the annual general revenue in the coming five years?
SECRETARY FOR THE TREASURY: Mr Deputy President, the cessation of the rates relief scheme on 31 March 1992 had no direct impact on the Government's revenue forecasts. This is because it was approved by the Legislative Council in 1991 as a temporary measure only, designed to cushion ratepayers of certain premises from the effect of the revaluation of their properties. It is, of course, likely that future
revaluations will be accompanied by similar short-term relief schemes, but, in the long term, all premises must contribute their fair share of the rates burden.
Were the rates "cap" to be extended for one more year, the cost to the revenue Were the rates "cap" to be extended for one more year, the cost to the revenue would reach nearly $900 million. This would consist partly of lower rates revenue for the Government, and partly of payments to the Municipal Councils to offset the reduction in their rates revenue. Only about 6% of domestic households would benefit from such an extension.
It is difficult to forecast the hypothetical effects on general revenue of extending the existing rates relief scheme until 1996-97. The forecasts in the Budget documents already assume the cessation of the rates relief scheme.
The effect on the Consumer Price Index (A) of not extending the rates relief scheme would be marginal: a "one-off" impact of less than one-twentieth of one percentage point.
First Reading of Bills
BANKING (AMENDMENT) BILL 1992
OCCUPATIONAL RETIREMENT SCHEMES BILL
ROAD TRAFFIC (AMENDMENT) (NO. 2) BILL 1992
TOYS AND CHILDREN'S PRODUCTS SAFETY BILL
Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).
Second Reading of Bills
BANKING (AMENDMENT) BILL 1992
THE SECRETARY FOR MONETARY AFFAIRS moved the Second Reading of: "A Bill to amend the Banking Ordinance."
He said: Mr Deputy President, I move that the Banking (Amendment) Bill 1992 be read a Second time. The main purpose of the Bill is to extend the existing system of reporting by external auditors of authorized institutions to enable reports to be made on the internal control systems of the institutions.
The importance of monitoring the quality of the internal control systems of b The importance of monitoring the quality of the internal control systems of banks has increasingly been recognized by banking supervisors worldwide. The effectiveness of such systems is essential in ensuring prudent management and compliance with various legislative requirements. Participation of auditors in this process will not only enable knowledge and opinion to be pooled, but also avoid unnecessary duplication of work, thereby reducing overall costs.
So that the Commissioner of Banking can require a report on various aspects of an institution's internal controls, clause 4 would amend section 59 of the Ordinance by enabling the Commissioner to require a report on matters pertaining to the exercise of his functions under the Ordinance from an auditor appointed by an authorized
institution to be nominated or approved by him. Our intention is that such reports would be commissioned only on a need basis.
Clause 5 would enable the Commissioner to require reports on specific aspects of internal controls under section 63. For instance, whether the controls ensured that an institution compiled its prudential returns correctly and complied with its various duties under the Banking Ordinance. Auditors would also be required to state whether there appeared to have been any material contravention by the institution of its duties under the Ordinance.
The new provisions would take effect only after the Commissioner had published a guideline in consultation with the Hong Kong Society of Accountants and the banking sector on how the mechanism was expected to work.
The Bill also introduces a number of miscellaneous technical amendments to the The Bill also introduces a number of miscellaneous technical amendments to the Ordinance. I shall now identify those of significance.
Clause 3 is intended to streamline the existing arrangements whereby the Commissioner reports a banking crisis to the Governor in Council under section 52(1)(D). A review of the provisions of the Ordinance governing the Commissioner's powers of control over authorized institutions was undertaken following the closure of Bank of Credit and Commerce (Hong Kong) Limited in July last year. This revealed that some improvements could be made to certain procedural matters. As an alternative to the normal seven days' notice to the institution concerned, the new provision would allow the Commissioner to give shorter notice. Such flexibility could prove to be particularly useful when it was necessary to take timely action to preserve the assets of a failing institution. Appropriate safeguards will be available to ensure that such powers are exercised only when necessary.
Clause 8 introduces a new section 92(4A) and provides a defence for persons who Clause 8 introduces a new section 92(4A) and provides a defence for persons who have published an advertisement which contained false information in breach of section 95(5)(c). In reviewing the provision, we have concluded that it would be unfair to hold, say, the advertising media responsible for the veracity of the information provided by an overseas deposit-taker when they might not be in any position to check it.
The proposed amendments are part of our on-going efforts to ensure that Hong Kong's system of banking supervision countinues to measure up to the highest international standards.
Mr Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
OCCUPATIONAL RETIREMENT SCHEMES BILL
THE SECRETARY FOR MONETARY AFFAIRS moved the Second Reading of: "A Bill to establish a registration system for certain occupational retirement schemes, to ensure that such schemes are properly regulated, to make certain matters relating to such schemes whose proper law is not the law of Hong Kong justiciable in the High Court, and to provide for related matters."
He said: Mr Deputy President, I move that the Occupational Retirement Schemes Bill be read a Second time.
Private retirement schemes are not at present subject to any regulation. In Private retirement schemes are not at present subject to any regulation. In the past when some employers have experienced financial difficulties, it has resulted in the employees losing part or all of their accrued benefits. This is unsatisfactory and a regulatory framework is required to ensure that all retirement benefits are paid when they fall due.
The Bill before Members today is a simplified version of the one which was introduced into this Council in May last year. The Legislative Council ad hoc group which was then formed to scrutinize the Bill was supportive of the principles behind it but was concerned about its complexity. The present Bill is the product of a working group comprising government officials and representatives of professional and industry organizations, including the Society of Accountants, the Actuarial
Association, the Law Society and the Federation of Insurers. We are most grateful to these bodies for their valuable advice.
The new Bill retains all the basic principles endorsed by the Legislative Council The new Bill retains all the basic principles endorsed by the Legislative Council ad hoc group last year, namely:
- separation of retirement scheme assets from the employer's business; - separation of retirement scheme assets from the employer's business; - adequate funding; - adequate funding;
- restrictions on self-investment; - restrictions on self-investment;
- prohibition against loans to the employer and his associates; - prohibition against loans to the employer and his associates; - at least one indep - at least one indep at least one independent trustee; endent trustee;
- independent annual audit; - independent annual audit;
- disclosure of information to employees and, where appropriate, - disclosure of information to employees and, where appropriate, - periodic actuarial review. - periodic actuarial review.
In redrafting the Bill, we have taken the opportunity to incorporate two new provisions into the Bill in the light of market practice and advice from the professional bodies. These are, respectively, special arrangements for the registration of "pooled" retirement schemes and more flexible funding arrangements for defined benefit schemes.
Let me begin with the "pooled" retirement schemes. In essence, these are sch Let me begin with the "pooled" retirement schemes. In essence, these are schemes covered by a master trust deed or insurance policy, with their assets pooled together for investment and administration purposes. Each individual scheme's share of the asset value of the pool is nonetheless readily identifiable.
There are a considerable number of small establishments in Hong Kong. Where these have retirement benefits for employees they are generally provided through "pooled" retirement schemes. A simplified registration process for "pooled" schemes would therefore be useful. In this connection, the Bill provides that applications for registration of individual participant schemes will only need to be accompanied by a master statement from the solicitor and a master report from the auditor, subject to confirmation by the scheme administrator that the scheme is part of the pooling agreement.
As regards the funding requirements for defined benefit schemes, a more flexible arrangement has been incorporated into the Bill. Actuarial reviews of defined benefit schemes are conducted every three years. If upon review a scheme is found to have a shortfall, it is a general rule that the employer must top up the scheme so that the shortfall is removed within three years from the date of the review. If it were to remain insolvent after the three years, it would be liable to deregistration.
The Actuarial Association has suggested that some flexibility should be provided before the provisions for deregistration are triggered, since there may be factors outside the control of the employer which prevent a scheme from attaining solvency within the three year period. As a result, the Bill now allows a further period of three years where a continuing shortfall arises from factors beyond the control of
the employer. Where, however, any part of this shortfall arises from a failure of the employer to implement the actuary's recommendations the general rule will apply.
Mr Deputy President, I have outlined the two major new features of the Bill. Other improvements include the strengthening of the provisions in respect of the winding up of a scheme. The Bill now includes statutory guidelines for the Court to order the winding up of a scheme domiciled in Hong Kong and give directions on the distribution of its assets.
The provisions regarding preferential claims status of retirement benefits have also been modified to hold the employer responsible only for any unpaid contributions due from him. Any shortfall arising from negligence of scheme managers or other factors will only rank as general claims.
Members will, I believe, find that the Bill is now set out in a way which will help scheme operators to identify the steps they will need to take in order to comply with the statutory requirements. The documents required for registration are set out in the Schedules. Bearing in mind the complexity of the subject matter, we have made every effort to ensure that the Bill is "user-friendly". Before the legislation is put into operation, explanatory pamphlets will also be published to help employers to understand their statutory duties.
My Deputy President, I move that the debate on this motion be now adjourned. Question on the adjournment proposed, put and agreed to.
ROAD TRAFFIC (AMENDMENT) (NO. 2) BILL 1992
THE SECRETARY FOR TRANSPORT moved the Second Reading of: "A Bill to amend the Road Traffic Ordinance."
He said: Mr Deputy President, I move that the Road Traffic (Amendment) (No. 2) Bill 1992 be read a Second time. The purpose of the Bill is to prohibit the use of vehicles used predominantly for displaying commercial advertising.
At present, the Commissioner for Transport may issue permits authorizing the use of vehicles for advertising purposes, subject to such terms and conditions as he
thinks fit.
At present there are 17 such vehicles operating with permits. They serve no transport purpose. These vehicles are usually adapted from flat bed trucks and carry large billboards. The billboards are colourful and often brightly illuminated by floodlights or spotlights, which may distract the attention of drivers and
pedestrians. To achieve maximum advertising effect, they may be parked or driven slowly in densely populated urban areas where traffic is already heavy. They aggravate present road congestion and are also a potential road safety hazard.
Given the increasing level of congestion on our limited road space, it is considered necessary in the public interest to prohibit the use of these vehicles. Any need for mobile commercial advertising is already met by other forms of transport such as buses, taxis and trams. It is proposed, however, that permission may be given for such vehicles to operate in exceptional cases where they may be needed for certain non-commercial purposes, such as election campaigns or approved charity purposes.
Clause 3 of the Bill prohibits the use of an advertising vehicle without a permit or in contravention of the permit conditions. It empowers the Commissioner for Transport to issue a permit only for the display of non-commercial advertising and subject to such conditions as he considers necessary.
Clause 4 provides transitional arrangements for the continued use of permits now in force until their expiry.
The Transport Advisory Committee has considered the proposal and supports it on The Transport Advisory Committee has considered the proposal and supports it on traffic management grounds. We have also briefed the OMELCO Transport Panel and discussed with the trade. As regards representations made by the trade, the Attorney General's Chambers have confirmed that they are satisfied the legislative proposals in respect of advertising vehicles are consistent with the Bill of Rights.
My Deputy President, I move that the debate on this motion be adjourned. Question on the adjournment proposed, put and agreed to.
TOYS AND CHILDREN'S PRODUCTS SAFETY BILL
THE SECRETARY FOR TRADE AND INDUSTRY moved the Second Reading of: "A Bill to provide for safety standards for children's toys and safety standards for specified chattels used in association with children, and to provide for other powers to enhance the safety of children."
He said: Mr Deputy President, I move that the Toys and Children's Products Safety Bill be read the Second time.
The purpose of this Bill is to provide for safety requirements for toys and children's products in order to protect children from unsafe toys or children's products. It seeks to do so by making it an offence to manufacture for consumption in Hong Kong, to import into Hong Kong or to supply in Hong Kong toys and children's products which do not meet prescribed safety standards or a general safety requirement. The Bill will be enforced by the Commissioner of Customs and Excise who will act on receipt of complaints.
The Bill is based largely on the recommendations of a working group on toy safety, whose members included representatives from the toy industry, the Consumer Council and relevant government departments.
The working group had compared different sets of safety standards for toys and recommended the adoption of the International Voluntary Toy Safety Standard established by the International Committee of Toy Industries. This standard is comprehensive, internationally accepted and very similar to the safety standards adopted in the United States, the European Economic Community, Japan and South Korea. Clause 3 of the Bill will make this standard applicable to all toys supplied in Hong Kong.
Apart from toys, the working group identified certain products which are used by children and which should also be controlled under the Bill. These products are listed in the Schedule to the Bill. Unlike toys, there are no international safety standards for children's products. The group recommended that standards established by the British Standards Institution be adopted as they are widely used and highly regarded by the international trading community. Clause 5 will make these standards applicable to children's products listed in the Schedule when supplied in Hong Kong.
The Schedule of children's products and the safety standards prescribed in the The Schedule of children's products and the safety standards prescribed in the Bill are by no means exhaustive. Under clause 35, regulations may be made, when the
need arises, to designate a product as a children's product so as to bring it within the scope of the Bill. Under the same clause, additional safety standards applicable to both toys and children's products may be made to cope with changing technology and the emergence of new products.
In addition, clause 8 stipulates a general safety requirement which imposes a duty on suppliers to ensure that their products are reasonably safe. This is to cater for emergency situations where unsafe toys or children's products are found, in respect of which there are no prescribed safety standards, and new safety regulations cannot be made swiftly.
Suppliers of toys and children's products may, to facilitate compliance with the Suppliers of toys and children's products may, to facilitate compliance with the prescribed safety standards, have their products tested by a laboratory approved by the Director-General of Industry. It is intended that approved laboratories will include laboratories accredited under the Hong Kong Laboratory Accreditation Scheme and those overseas laboratories with equivalent standing. Testing results showing that a product complies with the relevant safety standard will create a presumption that the product is safe and may be used by the supplier as a defence of due diligence in court.
We realize that there will be a time gap between the discovery of unsafe toys and children's products and any subsequent conviction in court as prosecution proceedings take time. The Bill provides for remedial measures through a notice system to protect children from toys or children's products which are suspected to be unsafe. It enables the Commissioner of Customs and Excise to issue a "notice to warn", requiring suppliers to publish a warning that a specified toy or children's product may be unsafe unless certain steps are taken; a "prohibition notice" to stop the sale of a toy or children's product; and, in extreme cases, a "recall notice" to recall those products already sold which constitute a significant risk to children. It will be an offence if a person does not comply with any such notices served on him.
Any person aggrieved by decisions made or notices issued by the Commissioner of Customs and Excise may appeal to an appeal board. The appeal board will be chaired by a legal practitioner, with members including a general consumer, a scientist with relevant expertise and a person from the toys or children's products industry. In addition, clause 27 stipulates that if the goods seized or detained by the enforcement authority are subsequently found to be safe, the Government may be liable to
compensate the owner of the goods for any loss suffered by him as a result of the
seizure or detention.
To give the industry and trade time to adjust, there will be a grace period of To give the industry and trade time to adjust, there will be a grace period of one year before the Bill comes into operation.
Mr Deputy President, I move that debate on this motion be adjourned. Question on the adjournment proposed, put and agreed to.
SECURITIES AND FUTURES COMMISSION (AMENDMENT) (NO. 2) BILL 1991 Resumption of debate on Second Reading which was moved on 4 December 1991 Question on the Second Reading proposed.
MR PETER WONG: Mr Deputy President, this Bill provides the Securities and Futures Commission with the power to disclose information relating to an auditor to the Hong Kong Society of Accountants for the purpose of any disciplinary proceedings relating to the auditor and to disclose information to an auditor or former auditor in order to enable or assist the Commission to discharge its functions. This is part of the continuing co-operation between the Commission and auditors to effectively monitor and regulate the securities industry.
The Legislative Council ad hoc group studying this Bill is satisfied that such power will enhance the protection of the interests of investors and the preservation of the integrity of the markets and it is of the view therefore that the Bill should be supported without any amendments.
Mr Deputy President, with these remarks, I support the motion. Mr Deputy President, with these remarks, I support the motion.
SECRETARY FOR MONETARY AFFAIRS: Mr Deputy President, I am most grateful to Mr Peter WONG and members of the ad hoc group for their careful consideration of, and support for, this Bill and for two related Bills on which I shall be speaking shortly, namely the Commodities Trading (Amendment) (No. 2) Bill and the Securities (Amendment) (No. 3) Bill. I believe that taken together these will improve communication between auditors and the Securities and Futures Commission to the benefit of investors.
Mr Deputy President, I beg to move.
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).
COMMODITIES TRADING (AMENDMENT) (NO. 2) BILL 1991
Resumption of debate on Second Reading which was moved on 4 December 1991 Question on the Second Reading proposed.
MR PETER WONG: Mr Deputy President, the Legislative Council ad hoc group formed to study the Commodities Trading (Amendment) (No.2) Bill 1991 has also been charged with the responsibility to examine the Securities (Amendment) (No.3) Bill 1991 since the intended purpose and the wording of the two Bills are virtually the same. So, what I am going to say will cover both Bills. I will start by briefly reporting the work of the ad hoc group and then explain in more detail how it has arrived at the conclusion that the Bills should be supported subject to some minor amendments to be moved at the Committee stage by the Administration.
Since its formation on 6 December 1991, the ad hoc group has held three meetings, including meetings with the Administration, the Securities and Futures Commission (SFC) and the Stock Exchange of Hong Kong Limited. The group has also considered a total of four submissions received from the Hong Kong Society of Accountants, the Stock Exchange and two non-trading members of the Exchange.
The submissions made by the Stock Exchange and two other individual non-trading members of the Exchange mainly concern the amendments in clause 2 of the Bills which deal with revocation of registration. Their concerns could be broadly categorized into five main areas as follows:
(a) the intent of the current provisions; (a) the intent of the current provisions;
(b) the draconian consequences of the (b) the draconian consequences of the the draconian consequences of the proposed amendments; proposed amendments;
(c) the deviation from the recommendations of the Securities Review Committee; (c) the deviation from the recommendations of the Securities Review Committee; (d) the encroachment on existing private rights; and (d) the encroachment on existing private rights; and
(e) the inconsistency with the treatment of other professions. (e) the inconsistency with the treatment of other professions.
I will explain one by one how these five areas of concerns were satisfactorily I will explain one by one how these five areas of concerns were satisfactorily addressed by the parties concerned.
First, the intent of current provisions.
The current wording of the relevant sections of the Commodities Trading and Securities Ordinances states that the SFC can revoke the registration of a registered person if that person "ceases", I repeat "ceases to carry on business in Hong Kong".
The Stock Exchange alleges that when the legislation was enacted, it was clearly the legislature's original intention that a person who obtained a licence, carried on business for a while and then stopped should be liable to revocation but not a person who never carried on business after obtaining a licence.
In view of the Stock Exchange's submission, the ad hoc group has asked the Administration to check their old files to find out the reasons why the word "cease" was used when the legislation was originally drafted. In response, the Administration confirms that it was merely an oversight at the time when the legislation was drafted that persons who have never commenced business were not also referred to in the relevant provisions.
The Administration's confirmation is accepted by the ad hoc group.
I now turn to the second concern of the Stock Exchange, that is: the draconian consequences of the proposed amendments.
The Stock Exchange points out that the proposed revocation has serious consequences on the 36 non-trading members of the Exchange. Members whose registration is revoked are subject to disciplinary action by the Exchange, and members disciplined are in peril of being expelled from the Exchange. If expelled, a member is not eligible for readmission, and his share may be disposed of by the
Council of the Exchange in any manner it sees fit.
Having carefully considered the Stock Exchange's concern, the ad hoc group notes Having carefully considered the Stock Exchange's concern, the ad hoc group notes that there are other avenues open to the Exchange that would preserve the ability of its members whose registration has been revoked to obtain value for their shares and to retain their link with the Exchange.
These avenues are:
(a) the creation of a category of "honorary members", as suggested by the SFC, (a) the creation of a category of "honorary members", as suggested by the SFC, which would allow non-trading members to retain their shares with no voting rights; and
(b) the amendment to the Stock Exchange's Article of Association (b) the amendment to the Stock Exchange's Article of Association the amendment to the Stock Exchange's Article of Association so as to allow so as to allow a member who has been expelled from the Exchange to be re-admitted.
I am glad to report that at a meeting held on 20 January 1992, at the suggestion of the ad hoc group, representatives of the Stock Exchange who include, among others, its chairman, agreed to seriously consider these two measures with a view to reducing the concern of the 36 non-trading members should the Bill eventually be enacted.
The third concern of the Stock Exchange is deviation from the recommendations of the Securities Review Committee (SRC).
The Stock Exchange points out that the proposals, if enacted, would run against the recommendations of the SRC which advocated taking away the voting right but not the Exchange membership of a non-trading member.
The ad hoc group notes that the Exchange's observation is factually correct and The ad hoc group notes that the Exchange's observation is factually correct and has therefore sought clarification from the SFC.
The SFC, while admitting that it has departed from the SRC's recommendation, explains that it did so only after it became clear that it was impossible to implement the changes exactly recommended by the SRC because of the expected resistance from the Stock Exchange. Every effort, however, was made to ensure that the proposed approach would not have the draconian consequences envisaged by the Stock Exchange.
The ad hoc group feels that the two measures that I have just mentioned, that is, the creation of a category of "honorary members" and the amendment to the Stock
Exchange's Article of Association, if adopted by the Exchange, can to some extent address the concern of the Exchange without having to deviate largely from the recommendations of the SRC.
Besides, the ad hoc group has been assured that, if the Bills are enacted, the SFC will give at least nine months notice of any intended revocation of the registration of the non-trading members of the Stock Exchange who have never traded. The person whose dealer's licence has been revoked for non-trading could apply for a dealer licence once they intend to resume business.
The ad hoc group has also been assured that the SFC will continue to honour the The ad hoc group has also been assured that the SFC will continue to honour the undertaking that persons who were registered before 1986 would not be subject to the minimum education and experience requirements for securities dealers if they apply for a licence after having had their licence revoked for non-trading. We look forward to the Secretary for Monetary Affairs' confirmation of this agreement in his reply.
The fourth concern of the Stock Exchange is the encroachment of existing private rights.
The Stock Exchange asserts that the proposed amendments, having regard to the The Stock Exchange asserts that the proposed amendments, having regard to the consequential loss of rights and privileges resulting from the exercise by the SFC of their power under the amended provisions, is an unjustifiable encroachment on existing private rights.
In response, the Administration points out that there is nothing in law to prevent the enactment of provisions which directly or indirectly detract from rights and privileges enjoyed under the existing law.
The ad hoc group considers that this response is reasonable in that the question The ad hoc group considers that this response is reasonable in that the question of "existing rights and privileges" must be looked at in the actual context of the situation and the reasons for the proposed changes.
The last but not the least concern of the Stock Exchange is the inconsistency with the treatment of other professions.
The Stock Exchange submits that it is not unusual for there to be members of a professional organization who are authorized or permitted to "trade", and yet do not do so.
A detailed research on the law and practice in respect of other professions has A detailed research on the law and practice in respect of other professions has been conducted by the SFC at the ad hoc group's request. The results of the research show that the law and practice varies in different professions: in some professions, such as the law, persons are allowed to hold practising certificates if they do not actually practice; in others, such as accounting, they are not.
Given the differences revealed, the ad hoc group feels that it serves no useful purpose comparing different professions, including the securities dealers.
The ad hoc group decided, however, that it would be useful if comparison with The ad hoc group decided, however, that it would be useful if comparison with the legislative provisions in other jurisdictions could be made and has accordingly written to overseas securities regulatory authorities.
The replies from the United Kingdom and Singapore authorities indicate that the The replies from the United Kingdom and Singapore authorities indicate that the practices there correspond with the proposed amendment.
In the United Kingdom, if a firm never commenced business, the authority may terminate its registration (and thus the registration of individuals registered with it) 12 months after its election. It is also unlikely that a firm may remain an Exchange member after its registration has been revoked.
In Singapore, the authority can revoke a dealer's licence upon the dealer ceasing business. The authority has not actually revoked any licensee on the basis that the licensee has not commenced business for which he was licensed. The authority advises, however, that should such situation occur, the authority would ask the licensee to return his licence to the authority. It is also confirmed that a dealer whose licence has been revoked cannot remain a member of the Stock Exchange of Singapore.
Having considered the points raised by the Stock Exchange, the responses of the Administration and the SFC, the Stock Exchange's consent to explore ways to preserve its link with non-trading members (should their registration be revoked after the enactment of the Bill) and the practice adopted in other jurisdictions, the ad hoc group feels that clause 2 of the Bills should be supported.
Mr Deputy President, I will now turn to the submission made by the Hong Kong Society of Accountants.
In its submission, the Hong Kong Society raises two points on clauses 4 and 5 of the Bills concerning communication by auditors with the SFC. These two points
are:
(a) in clause 4, it is not clear as to what constitutes an "immediate" notice; (a) in clause 4, it is not clear as to what constitutes an "immediate" notice; and
(b) in clause 5, it is not clear as to what information or opinion was consid (b) in clause 5, it is not clear as to what information or opinion was considered relevant to the function of the SFC.
At the ad hoc group's suggestion, the Administration discussed with the Hong Kong At the ad hoc group's suggestion, the Administration discussed with the Hong Kong Society direct to clarify the points raised by the Society. The ad hoc group has been advised that as a result of the discussion, the Hong Kong Society is content for the Bill to proceed as presently drafted subject to the following:
(a) clause 4 of the Bills to be amended with a view to tightening up the wording (a) clause 4 of the Bills to be amended with a view to tightening up the wording so that the notification requirement will arise if and when an auditor decides not to seek re-appointment; and
(b) guidelines be iss (b) guidelines be iss guidelines be issued by the Hong Kong Society of Accountants to spell out ued by the Hong Kong Society of Accountants to spell out clearly the circumstances under which matters are to be communicated to the SFC. Such guidelines will be issued within six months after the enactment of the Bills.
The ad hoc group is satisfied with the results of the discussion between the The ad hoc group is satisfied with the results of the discussion between the Administration and the Hong Kong Society of Accountants and has no objection to the amendments.
Mr Deputy President, the fact that this Bill and also the Securities (Amendment) (No.3) Bill 1991 can resume their Second Reading debates today is a clear indication of the willingness of the Administration, the SFC, the Stock Exchange and the Hong Kong Society of Accountants to listen to one another, to understand and to reach concensus. I am grateful to all parties concerned.
With these remarks, and subject to the Committee stage amendments which will be moved later by the Administration, I support the Bill.
MR CHIM PUI-CHUNG (in Cantonese): Mr Deputy President, the Stock Exchange of Hong Kong Limited was formed in 1986 by the merging of four stock exchanges, namely, the Hong Kong Stock Exchange, the Far East Exchange, the Kam Ngan Stock Exchange and the
Kowloon Stock Exchange. The history of these four stock exchanges, if they were in operation up to this point, can be traced back to 20 years to a century. The members of the present Stock Exchange of Hong Kong Limited, apart from those who bought their licences from other securities dealers, have indeed got their membership from these four stock exchanges. In other words, their privileges and memberships are not
unconditionally granted by the Administration but a retention of their original privileges. Furthermore, after the formation of the Stock Exchange of Hong Kong Limited, it is obligatory for them to pay a monthly membership fee and to observe all the regulations and rules of the Securities and Futures Commission (SFC) and the Stock Exchange. They have not breached any regulations or rules, only that they have not been engaged in business or have ceased part of their trading. Therefore, the SFC's move of revoking their membership by means of legislation will be utterly unfair to some of the securities dealers who belonged to the four stock exchanges, having regard especially to a free place like Hong Kong.
Being the representative of the financial sector, I have to voice their grievances on their behalf in the hope that the SFC will not make things difficult for the members who have ceased or never commenced trading but now decide to start trading. Also, there should be some recognition for the encouragement and the contribution by those members who have been lending support to the securities business from the times of the four stock exchanges up till the present. The members of the Hong Kong Futures Exchange Limited who have ceased or never commenced trading must have had their own difficulties. As the monitoring authority, the SFC has the obligation to understand their difficulties with a view to helping them resolve their problems, instead of laying an overriding emphasis on controls. I hope that the SFC will examine whether it has acted ultra vires, and the Secretary for Monetary Affairs should especially monitor the SFC in this respect. I must point out that even the Royal Hong Kong Jockey Club has never stipulated that its members must make a bet. What counts most is members of the Stock Exchange should abide by all the laws of Hong Kong. As for the SFC, there are a lot of important matters deserving its attention, for example, the safeguard of the interests of small investors, so the SFC should not become
preoccupied with the enactment of such minor provisions against some of the members. Although I support this Bill, I would like to remind the Administration that there are a lot of important matters which warrant the attention of the relevant authority and the enactment of the provisions concerned is only a trivial matter. Thank you, Mr Deputy President.
MR JAMES TO (in Cantonese): Mr Deputy President, the United Democrats of Hong Kong (UDHK) are concerned about the situation as mentioned by Mr CHIM Pui-chung of some securities brokers or futures dealers who have never commenced business. But after a careful study of the Bill, we found that the spirit of the Bill should be supported, because it not only plugs the loopholes of certain ordinances, for example mending some oversight in wording, but also goes further by examining whether the members of the Stock Exchange who have never commenced business should enjoy the same rights as those of the active members in participating in the affairs of the Exchange,
especially in the election matters of the Stock Exchange Council. The Securities Review Committee (SRC) has in fact highlighted a very important point in paragraph 4.6 of its report, in which the members of the SRC had already expressed their grave concern about the fact that one-fourth of the voters in the election held by the Stock Exchange were not trading in the market. Given that the aim of the Council of the Stock Exchange is to ensure a healthy and fair market operation, we therefore believe that non-trading members should not be allowed to take part in the election of the Council members. Besides dealing with registration matters, this Amendment Bill now before us can put the development of the Stock Exchange elections, especially the election of its Council, in a more healthy and equitable course, ensuring us a healthy and fair market. Therefore, the UDHK support this Amendment Bill. Thank you.
SECRETARY FOR MONETARY AFFAIRS: Mr Deputy President, Mr Peter WONG's comments are a clear indication of the care that the ad hoc group has taken in examining the Bill and the Securities (Amendment) (No. 3) Bill and I am most grateful. As Mr WONG has identified, the Society of Accountants, whilst indicating their support in principle for the Bill, did have some reservations in respect of certain provisions. We have discussed these with the Society and we accept that the wording of clause 4 of the Bill should be tightened to give a clearer indication as to when the notification requirements would arise. I shall move during the Committee stage an amendment to accommodate this concern.
I do not feel I need to address specifically the points made by Mr CHIM and Mr TO as I believe they have been adequately addressed by Mr Peter WONG. As far as the revocation of registration for non-trading dealers is concerned, I am pleased to be able to reassure Members that the SFC will continue to honour the undertaking that when people who were registered and ceased to trade and ceased to be registered apply again, they will not be refused application solely on the grounds of lack of minimum education or experience. In other words the SFC will continue to honour the
undertaking they gave in 1986.
It has also been agreed that the circumstances under which an auditor should be It has also been agreed that the circumstances under which an auditor should be encouraged to report to the SFC should be spelt out clearly in guidelines to be issued by the Society for its members.
The Society has also undertaken to liaise closely with the SFC during the The Society has also undertaken to liaise closely with the SFC during the preparation of the guidelines so that these can be made available to auditors within six months of enactment.
Mr Deputy President, I beg to move.
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).
SECURITIES (AMENDMENT) (NO. 3) BILL 1991
Resumption of debate on Second Reading which was moved on 4 December 1991 Question on the Second Reading proposed.
MR PETER WONG: Mr Deputy President, for the same reasons I have given during my speech in relation to the Commodities Trading (Amendment) (No. 2) Bill 1991, I also support the Second Reading of this Bill on the same terms that it is subject to the amendments to be moved by the Administration at the Committee stage of this Bill.
SECRETARY FOR MONETARY AFFAIRS: Mr Deputy President, the provisions of this Bill are almost identical to those contained in the Commodities Trading (Amendment) (No. 2) Bill 1991. As I have already indicated in my speech on that Bill we have accepted a proposal from the Society of Accountants to clarify the circumstances in which notification of the SFC would arise.
I shall move during the Committee stage, an amendment to clause 4 of the Bill I shall move during the Committee stage, an amendment to clause 4 of the Bill
to this effect.
Mr Deputy President, I beg to move.
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).
PEAK TRAMWAY (AMENDMENT) BILL 1991
Resumption of debate on Second Reading which was moved on 6 November 1991 Question on the Second Reading proposed.
MR RONALD ARCULLI: Mr Deputy President, the Peak Tramway (Amendment) Bill 1991 seeks to amend the Peak Tramway Ordinance to implement changes that are considered to be needed following a review of the Ordinance. The ad hoc group set up to study the Bill was particularly concerned with the provision which empowers the Peak Tramway Company to enter adjoining lands for the purpose of repair and accidental prevention works. Under the new section 7A, the Company should seek the Secretary for
Transport's approval and notify the affected landowner of the authorization at least 14 days before any entry is made. In case of emergency, the Company may enter upon adjoining lands without the authority of the Secretary for Transport but should make a report to the Secretary within 24 hours after such entry. The ad hoc group was concerned about this power of entry as well as the level at which the Government and the Company would delegate authority in this respect. The Administration informed the ad hoc group that, within the Government, the power to authorize entry rested with the Secretary for Transport himself and there were at present no plans to delegate further. On the Company's part, the Administration advised that emergency entries were subject to the prior approval of the senior management, such as the General Manager and Engineering Superintendent, or, in his absence, the Operations Manager. Notices as required under section 7A(4) would be issued and the Group Engineering Manager informed.
Another aspect which the ad hoc group considered was the provision under which
the Company could decide by itself whether the land or property it owned was required for the efficient maintenance and working of the tramway and could dispose of it by itself without the approval of the Governor in Council. The ad hoc group was concerned that this power would give the Company an opportunity to make a profit out of the land granted by the Government by selling it at market value for other land use purposes. The Administration explained that the Company's disposal of land was governed by the lease conditions. The lease conditions for the four lots of land currently owned by the Company did not contain any restrictions on the profit derived from the sale of these lots. However, the user clause of the respective leases restricted the lots to purposes related to the operation of the tramway. In order to change the user restriction, a modification of the lease would be required and subject to the payment of a premium to be assessed if approved by the Director of Buildings and Lands in consultation with the Secretary for Transport.
Having received the clarifications and explanations of the Administration, the Having received the clarifications and explanations of the Administration, the ad hoc group is satisfied that the Bill can be supported.
With these remarks, Mr Deputy President, I support the Bill.
Question on the Second Reading of the Bill put and agreed to.
Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
EMPLOYMENT (AMENDMENT) BILL 1992
Resumption of debate on Second Reading which was moved on 19 February 1992 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
EMPLOYMENT (AMENDMENT) (NO. 2) BILL 1992
Resumption of debate on Second Reading which was moved on 19 February 1992 Question on the Second Reading proposed.
MR HENRY TANG: Mr Deputy President, the existing Employment Ordinance provides protection against discrimination or dismissal by employers of employees who give evidence in proceedings or information to public officers in connection with the enforcement of the Ordinance. However, since the Employment Ordinance mainly deals with terms and conditions of employment and not safety at work while the Factories and Industrial Undertakings Ordinance dealing with occupational safety only covers premises classified as factories and industrial undertakings, protection against victimization is therefore not available to those employees giving assistance in proceedings against employers in relation to other statutory duties concerning accidents to an employee or safety at work. Since such anomaly in the law should be plugged as soon as possible, this Bill was introduced into the Legislative Council on 19 February 1992 so as to achieve this purpose. Anticipating that great concern would be shown by workers and their representatives on this issue, an ad hoc group was formed to study the Bill.
In the course of examining the Bill, the ad hoc group met with interested parties and organizations. After considering the views expressed, the ad hoc group in general agreed that although the proposal contained in the Bill would be a step forward in the right direction, it failed to offer compensation and/or provide for reinstatement to the employees even after the employers concerned had been convicted of the offence. The Administration acknowledged the need for compensation but considered that forced reinstatement of dismissed workers would not be viable in practical work situation. Therefore, the Secretary for Education and Manpower undertook to seek to extend the scope of the present severance payment to cover those employees who had been victimized and dismissed but not yet eligible to receive long service payment. While Members considered that compensation in one form or another should be provided to the employees so as to encourage them to give information, the early passage of the Bill would also be desirable in order to immediately deter employers from victimizing their employees. Therefore, the ad hoc group agreed that while the Administration proceeded to seek further amendments to the Employment Ordinance with a view to extending the scope of the severance payment, the Employment (Amendment) (No. 2) Bill 1992 should be supported in its present form in order to
facilitate its passage as soon as possible.
As for the proposal made by the interested labour union to legislate against unfair dismissal, the ad hoc group agreed that it would have major policy implications and had referred it to the OMELCO Panel on Manpower for further consideration.
Mr Deputy President, with these remarks, I support the Bill.
MR TAM YIU-CHUNG (in Cantonese): Mr Deputy President, the Employment (Amendment) (No. 2) Bill 1992 and the Factory and Industrial Undertakings (Amendment) Bill 1992 stipulate that an employer has criminal liability and will be penalized if he/she discriminates or dismisses an employee who has given evidence in proceedings or information to public officers in relation to his/her statutory duties concerning accident to an employee or safety at work. I think the spirit of the Bill is positive and should be supported. However, it is an open question whether the amended legal provisions are quite enough to protect the employee effectively from the vengeful victimization of his or her employer.
I recall that, in 1990, the Labour Department, acting on the request of a union representative, charged an employer with discriminatory dismissal, by means of a piece of anti-union discrimination legislation. It turned out that the case was dismissed for lack of evidence and the labour sector made the point at that time that the anti-union discrimination legislation had no teeth at all. The Amendment Bill which we are looking at now has the same problem with that teethless legislation in that the burden of proof rests entirely with the prosecution. This means that it is almost impossible to sue an employer for unreasonable victimization. We all know that no employer will be so stupid as to express verbally, or commit to writing, his intention to victimize and violate the law. There is no way the employee could comply with the legal requirement in terms of producing valid proof of the employer's
intention. It is for this reason that the burden of proof is the first problem which has to be resolved in protecting employees from vengeful victimization. For example, the assumption can be made that the employer has breached the above Ordinance, if his or her employee has been dismissed after carrying out his or her statutory duties in terms of giving evidence or providing information to public officers in relation to an accident to an employee or safety at work, unless adequate proof can be produced that the employee in question has been dismissed for some other misconduct. Mr Deputy President, although I believe that the Ordinance will not give a great deal of
protection to employees, and there is still room for improvement, it represents nevertheless a step in the right direction, though a modest one at that. In that regard, I am prepared to let it pass. However, in the long run, legislation governing unjust dismissals should be drafted in order to protect employees effectively from unreasonable victimization and safeguard the occupational well-being of local workers.
MR LAU CHIN-SHEK (in Cantonese): Mr Deputy President, in recent years, our industrial accidents have reached the 100 000 mark annually, with over 200 cases involving deaths. The severity of our industrial accident problem can be seen if we take into account the fact that, by comparison, Singapore, one of the four "Little Dragons" of Asia, has only 4 000 industrial accidents annually.
Hong Kong has always failed to provide adequate measures for the protection of the worker who reports on breach of industrial safety laws. The Amendment Bill can only be said to be superficial. In order to protect the reporting employee from victimization, an employee compensation clause should be included in the Bill such that the employee in question can opt for either reinstatement or fair compensation, following his dismissal for making a report to the authorities.
The ad hoc group takes the view, after deliberation, that the scope of severance payment should be extended to cover those employees who have been victimized and dismissed but who are not yet eligible for long service payment. I regret, though, that the issue of reinstatement has not been addressed.
Mr Deputy President, we should as a matter of urgency protect employees who report on their employers who have breached the legislation and we should also extend the protection to employees who have been victimized as a result of their involvement in industrial activities. I also urge the Government to amend the laws on severance pay and put in place laws against unjust dismissal. Thank you.
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, I am grateful to Mr Henry TANG, and the ad hoc group of which he was Convenor, for the thorough and constructive manner in which they have considered this Bill and the other five Bills related to employment and occupational safety matters on which the Second Reading debates are resumed today. I fully support the ad hoc group's conclusion that the early passage
of this Bill, namely, the Employment (Amendment) (No. 2) Bill 1992, is desirable.
Members of the ad hoc group have raised the question of compensation for employees who are dismissed by their employers for giving evidence or information concerning breaches of regulations on work safety. The Administration accepts that there is a case for considering appropriate compensation. The Commissioner for Labour is now examining the question in detail. The views of the Labour Advisory Board will be sought and other consultations conducted as necessary.
I have also taken note of Members' interest in the wider issue of compensation for unfair dismissal. As Mr TANG has rightly pointed out, this issue has major policy implications and further discussions with both the Labour Advisory Board and the OMELCO Panel on Manpower will be needed.
Mr Deputy President, I beg to move.
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).
FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) BILL 1992
Resumption of debate on Second Reading which was moved on 19 February 1992 Question on the Second Reading of the Bill proposed, put and agreed to. Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
EMPLOYMENT (AMENDMENT) (NO. 3) BILL 1992
Resumption of debate on Second Reading which was moved on 19 February 1992
Question on the Second Reading proposed.
MR HENRY TANG: Mr Deputy President, one of the aims of the current Employment Ordinance is to regulate payment of wages, including deduction from wages. Since the introduction of the labour importation schemes, cases of abuses such as unlawful deduction and underpayment of wages by unscrupulous employers have increased. In order to deter such malpractices, it was considered necessary to significantly increase the maximum penalties for such offences. Therefore, this Bill was introduced into the Legislative Council on 19 February 1992. In view of the public concern on this issue, an ad hoc group was formed to study the Bill.
After detailed examination of the Bill, the ad hoc group fully endorsed its spirit and supported the proposal to increase the maximum penalties by tenfold plus imprisonment for one year. It was also agreed that although there might be merits in the proposal to enable imported workers who were unfairly dismissed and therefore unable to complete their original contract to claim compensation in one form or another from their employers, this should be pursued separately outside the context of the present Bill. Therefore, the ad hoc group considered that the early passage of this Bill was desirable in order to immediately increase the deterrent effect on unscrupulous employers. As regards the protection of imported workers from unfair dismissal, it should be considered in the wider context of the issue of unfair dismissal.
Mr Deputy President, with these remarks, I support the Bill.
MR TAM YIU-CHUNG (in Cantonese): Mr Deputy President, I recall that, in the last debate on labour importation, I described the mechanism introduced by the Government to forestall exploitation of foreign workers as no better than a self-deceptive ploy. Now, the Employment (Amendment) (No. 3) Bill 1992 has raised the penalty for unlawful deduction and underpayment of wages by raising the fine by 10 times plus imprisonment for one year. Is my earlier description of a self-deceptive ploy also applicable to the present Bill? I will still answer in the affirmative, only that this time the ploy is more meticulously planned.
Indeed, one can easily find out how much deterrent effect the provisions for the protection of foreign workers in the Employment Ordinance have on the employers by taking a look at the sentences handed down by the courts in the past. In 1991, the
Labour Department received a total of 370 cases involving underpayment and unlawful deduction of wages, of which prosecution could be conducted in 48 cases on sufficient evidence, but eventually convictions were secured in 33 cases only. The average fine paid in those 33 cases was a mere $782, less than 10% of the maximum fine. The sum is regarded as no more than a bad joke by the unionists. It is clear that the fine imposed by the courts on employers for breaching the regulation to import foreign workers has been on the low side. Though the Government has set a maximum fine, with no minimum fine to go with it, one is sceptical about how much deterrence court
sentences will have on the unscrupulous employers. What is more, the protection of foreign workers from exploitation does not depend entirely on the severity of penalty under the present legislation. Presently, most of the foreign workers who have been exploited are unable to come forward to testify against their unscrupulous employers. They will be repatriated to their places of origin, if they dare stand up for their rights, and they have no opportunity at all of recovering their deducted wages. It is for this reason that so far only very few have been brave enough to come forward.
If the Government is sincere at all about protecting foreign workers, it should take care of the livelihood and employment of those workers who have to stay in Hong Kong temporarily in connection with their complaint against employers. It should help them in such a way that they can report the unscrupulous employers without fear. And the funds which will be required for this purpose should come from the employers who are bringing in the foreign workers.
Mr Deputy President, although I question the effectiveness of the Amendment Bill, I support the amendments in the hope that they will at least achieve some deterrent effect.
MR LAU CHIN-SHEK (in Cantonese): Mr Deputy President, I am rather disappointed that the Amendment Bill has confined itself to raising the fine of the employer for deducting wages without providing complementary measures to encourage employees to report offending employers. The two issues are actually complementary to each other and quite inseparable.
Mr Deputy President, before discussing the specific provisions, I think we should seriously review why local workers are subject to serious exploitation. It is obvious that, as the labour sector has been saying in these past several years, the labour importation scheme is in fact a disguised attempt to enable some local
employers to secure cheap labour on the one hand, and keep local wages down on the other. I think that it is precisely as a result of the present labour importation policy and its relevant procedural arrangements which have encouraged the unscrupulous employers to import cheap labour. In this regard, insofar as the unscrupulous employers are concerned, the deduction of wages is after all the reason why they wanted to hire foreign workers in the first place.
I therefore would like to urge the authorities again to conduct a comprehensive review on the whole labour importation scheme instead of resorting to making partial rectifications here and there on a piecemeal basis. Even from the perspective of protecting foreign workers from wage deduction, I think that the present Amendment Bill cannot achieve its objective and its protection to foreign workers is still inadequate. The amendment has provided for raising the maximum fine but no amendment has been made to encourage foreign workers to report irregularities and to do so without fear. According to past experience, foreign workers have much reservations about reporting employers on their own initiative for deducting wages and it is even more difficult to get them to serve as witnesses for the prosecution. In that regard, it is difficult to achieve its desired goal, however high the penalty. It is true of course that, under the present circumstances, it is not easy to encourage foreign workers to report on unscrupulous employers, but at least something should be done to alleviate their fear of dismissal and repatriation. Hence, a more viable way is to stipulate that any foreign worker whose wages have been unlawfully deducted and who makes a report to the authorities concerned may obtain as compensation the wages due from the remainder of his contract. In this manner, the foreign worker will have his or her livelihood secured for the length of contract when testifying in court against the wage-deducting employer. I think this measure will enable foreign
workers to report without fear and it is only then that the phenomenon of wage deduction will be reduced.
Mr Deputy President, I hope that the authorities concerned will once again make Mr Deputy President, I hope that the authorities concerned will once again make more substantial amendments to make sure that local and foreign workers are duly protected. Thank you.
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, may I again thank Mr TANG and his ad hoc group for supporting the early passage of the Employment (Amendment) (No. 3) Bill 1992, which should go a long way to ensure that employers of imported workers abide by the rules and conditions of the labour importation scheme.
As requested by the ad hoc group, we shall be looking at the question of prot As requested by the ad hoc group, we shall be looking at the question of protecting imported workers from unfair dismissal in a separate and wider context. May I also take this opportunity to reaffirm that the Labour Department will give every possible assistance in finding alternative employment to those imported workers who are
dismissed as a result of laying legitimate complaints or giving evidence against their employers for malpractices.
Mr Deputy President, I beg to move.
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).
FACTORIES AND INDUSTRIAL UNDERTAKINGS (AMENDMENT) (NO. 2) BILL 1992 Resumption of debate on Second Reading which was moved on 19 February 1992 Question on the Second Reading proposed.
MR HENRY TANG: Mr Deputy President, at present, large container terminals, depots and storage yards in which power driven machinery is used for maintaining and repairing containers are currently within the ambit of the Factories and Industrial Undertakings Ordinance but many small yards which are operating on uneven, barren land in the New Territories solely for the purpose of storage of empty containers are not. Many containers are therefore stacked one over another, often to a considerable height at such small yards while workers working on the roof of such containers generally take no safety precautions at all. In order to ensure that such container handling activities are operating in a safe manner and to provide a clear definition of "container" so as to facilitate the enforcement process, this Bill was introduced into the Legislative Council on 19 February 1992 for that purpose. In anticipation of possible public concern on this issue, an ad hoc group was formed to study the Bill.
In the course of examining the Bill, the ad hoc group met with two relevant labour
groups. The ad hoc group fully understood their concerns as the provisions of the Bill seemed to impose an onerous burden on employees which would be difficult to comply with since the employees usually only acted under instruction of their employers and they were not in a position to assess whether their act would endanger themselves or others. Moreover, it would be unfair to hold employees criminally liable for
wrongful conduct of others. However, having considered the clarifications provided by the Administration, the ad hoc group accepted that there were adequate provisions in the Bill to safeguard the employees.
The labour group also suggested that detailed guidelines should be provided in The labour group also suggested that detailed guidelines should be provided in respect of the safe stacking of containers and precautions to prevent the fall off of persons from the top of a container in order that both employers and employees would be aware of their respective standard of care more precisely. The ad hoc group also found this request to be reasonable but agreed with the Administration that it would not be appropriate to include such operational guidelines in the legislation. Therefore, the ad hoc group accepted that the issue of a guide on the safe stacking of containers by the Administration would suffice.
As regards the definition of "container" as proposed in the Bill which followed closely that used in the International Convention for Safe Containers adopted by the International Maritime Organization, the ad hoc group had examined various alternatives in great detail and finally considered the definition as proposed in the Bill to be in order.
Mr Deputy President, since I am not going to speak on the Contracts for Emplo Mr Deputy President, since I am not going to speak on the Contracts for Employment Outside Hong Kong (Amendment) Bill 1992 to follow, I would like to take this opportunity to thank, on behalf of the ad hoc group, the Administration for its co-operation during the scrutiny of all six Bills before Council today, as well as its willingness to consider various further improvements to the respective Ordinances as proposed by the ad hoc group.
Mr Deputy President, with these remarks, I support the Bill.
MR LAU CHIN-SHEK (in Cantonese): Mr Deputy President, the economic prosperity of Hong Kong can hardly be sustained without the contribution from workers of all trades. But it appears that few of us have concern for the safety protection of the broad masses of workers. The container transportation industry, which is the subject of the present Bill, has for years made significant contribution to Hong Kong's
development of import/export and entrepot trade. However, the Government and employers in this industry have provided grossly insufficient safety protection for the workers. Besides, these workers have been facing great difficulties as a result of the long-standing lack of container depots and parking space for container trucks. The Bill, as it stands, is criticized by labour groups to have provided for too low a maximum fine of $10,000. Since all containers are owned by large shipping companies which make substantial profits, a $10,000 fine will have little deterrent effect. I hope that the authority concerned will review this provision as soon as possible and propose the necessary amendment. In addition, the Bill has also failed to include safety precautions for the transportation by container of chemicals and dangerous goods. Nor has it made provisions requiring operators of container depots to employ a safety officer to supervise the safety and stacking of containers and to advise on the adoption of safety measures. Therefore, in my opinion, this Bill has yet to achieve the objective of giving sufficient safety protection to employees.
Mr Deputy President, I will support the passage of this Bill today. But I hope Mr Deputy President, I will support the passage of this Bill today. But I hope that the authority concerned will come up with better proposals to amend the relevant parts of the Ordinance as soon as possible in order that the protection of workers in this industry be further enhanced. Thank you.
SECRETARY FOR EDUCATION AND MANPOWER: Mr Deputy President, the purpose of this Bill is to extend safety protection to employees working at small container storage yards operating on barren land in the New Territories in the same way as those employees working in container depots.
Proprietors will be required to ensure that containers are stacked on level and firm ground and that stacking, unstacking, and the handling of containers are carried out in a safe manner and with adequate safety precaution.
No unreasonable or undue burden would be imposed on employees. But reckless operation by any employee that may endanger his own life or those of his fellow employees must be discouraged. I can assure Members that every case will be examined very carefully before any prosecution action is contemplated.
The Labour Department is already preparing detailed operational guidelines for the implementation of the new provisions and will consult the industry before finalizing them.
No comments yet.
Private notes are available after approval.