ENG-1992-05-06 — Page 1

1 HONG KONG LEGISLATIVE COUNCIL -- 6 May 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 6 May 1992 HONG KONG LEGISLATIVE COUNCIL -- 6 May 1992 1 HONG KONG LEGISLATIVE COUNCIL -- 6 May 1992 1

OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 6 May 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 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 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. 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

THE HONOURALBE MAN SAI-CHEONG

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

THE HONOURABLE TIK CHI-YUEN

THE HONOURABLE JAMES TO KUN-SUN

DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE YEUNG SUM

THE HONOURABLE HOWARD YOUNG

THE HONOURABLE ZACHARY WONG WAI-YIN

ABSENT

THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE PETER WONG HONG-YUEN, J.P. THE HONOURABLE MICHAEL HO MUN-KA

PROF THE HONOURABLE FELICE LIEH MAK, O.B.E., J.P. THE HONOURABLE NG MING-YUM

DR THE HONOURABLE PHILIP WONG YU-HONG

IN ATTENDANCE

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 SUEN MING-YEUNG, J.P.

SECRETARY FOR HOME AFFAIRS

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

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

MR ANTHONY GORDON EASON, J.P.

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS

DR LEE SHIU-HUNG, I.S.O., J.P.

SECRETARY FOR HEALTH AND WELFARE

THE CLERK TO THE LEGISLATIVE COUNCIL MR LAW KAM-SANG

Papers

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

Subsidiary Legislation L.N. No. Subsidiary Legislation L.N. No.

Waste Disposal (Chemical Waste) (General) Waste Disposal (Chemical Waste) (General)

(Amendment) Regulation 1992...................................... 112/92

Registration of Persons (Invalidation of Old

Identity Cards) (No. 2) Order 1992............................... 116/92

Statutes of the University of Hong Kong Statutes of the University of Hong Kong

(Amendment) (No. 2) Statutes 1992............................... 117/92

Waste Disposal Ordinance (Cap. 354)

(Commencement of Part IV and Sections

21(2), 22(2) and 36(2), (3), (4), (5) and (6))

Notice

1992................................................................ 118/92 1992................................................................ 118/92

Waste Disposal (Chemical Waste) (General)

Regulation (L.N. 20 of 1992) (Commencement)

Notice

1992................................................................ 119/92 1992................................................................ 119/92

Tax Reserve Certificates (Rate of Interest) Tax Reserve Certificates (Rate of Interest)

Notice

1992................................................................. 122/92 1992................................................................. 122/92

Sessional Paper 1991-92

No. 73 -- No. 73 -- Report of Broadcasting Authority Report of Broadcasting Authority

September 1990 - August 1991

Address

Report of Broadcasting Authority September 1990 - August 1991

SECRETARY FOR RECREATION AND CULTURE: Mr Deputy President, I have much pleasure in laying the Broadcasting Authority's annual report for the year ending 31 August 1991 before the Council today.

The broadcasting industry in Hong Kong has made rapid and significant The broadcasting industry in Hong Kong has made rapid and significant developments during the period under report, bringing more choices and better quality services to the public. During this period, we witnessed the launching of a Hong Kong based pan-Asian satellite television service making a new era in our broadcasting development and the birth of a second local commercial radio station providing additional choices for listeners. On wireless television, the introduction of the multichannel sound television broadcast system, commonly known as NICAM, allows programmes to be broadcast with stereo effects and multilingual sound tracks, thus further improving the diversity and versatility of our television programmes.

The Broadcasting Authority has played a significant role in all these developments in pursuit of its policy to improve the quality and quantity of broadcasting services for the Hong Kong audience.

To monitor the quality of the services provided by our broadcasters, the Broadcasting Authority has set up a Complaints Committee to consider complaints on television and radio programmes, advertisements and technical issues. During the period under report, the Complaints Committee dealt with a total of 570 complaints.

The Broadcasting Authority has also set up a working group to review the codes The Broadcasting Authority has also set up a working group to review the codes of practice on programme, advertising and technical standards for wireless television and radio, to ensure that they reflect changing social needs and attitudes and fast developing technology. Major revisions made to the codes of practice during this period included the introduction of classified advertising, the requirement of

impartiality in current affairs and documentary programmes, and the drawing up of performance specifications for multi-channel sound television broadcast. The working group also drew up a separate set of codes of practice on programme and advertising standards for the regulation of satellite television.

The Authority is always mindful of the need to be in touch with the changing attitudes of the community in discharging its responsibilities. During this period, the Authority has commissioned an independent survey company to conduct a comprehensive television broadcasting survey. The results of the survey provided useful reference information especially in the processing of complaints and the review of the various codes of practice.

In August last year, members of the Broadcasting Authority paid a visit to the United States and to Japan to meet the regulatory authorities and broadcasting organizations in those two countries. The visit proved useful and enabled the Authority to acquire first hand knowledge of the latest development in broadcasting technologies and to discuss common regulatory issues.

Overall, the period under report has been a significant one in our broadcasting Overall, the period under report has been a significant one in our broadcasting development and a productive year for the Broadcasting Authority. Looking ahead, the Authority is actively involved in the current comprehensive television broadcasting review conducted by the Administration. The Authority hopes to see the review completed soon and action taken to license subscription television services for Hong Kong without delay in order to provide more television choice to viewers.

Finally, I would like to thank members of the Broadcasting Authority under the capable leadership of its Chairman, Sir Roger LOBO, for their valuable contributions in both regulating the fast developing broadcasting industry and in advising the Administration in framing its broadcasting policy to cope with rapid changes in the industry.

Thank you, Mr Deputy President. Thank you, Mr Deputy President.

DEPUTY PRESIDENT: Before I proceed to questions I would ask Members please to put away those little models with flags on them because they do detract from the dignity of our proceedings. Would Members please put away those models and flags?

Oral answers to questions

Aircraft movement during curfew hours

1. MR MAN SAI-CHEONG asked (in Cantonese): Will the Government inform this Council: 1. MR MAN SAI-CHEONG asked (in Cantonese): Will the Government inform this Council:

(a) under what circumstances the Civil Aviation Department will allow aircraft (a) under what circumstances the Civil Aviation Department will allow aircraft landing and taking off during the curfew hours of 12 mid-night to 6.30 am in the morning; and

(b) with an expected increase in the volume of air traffic at Kai Tak before (b) with an expected increase in the volume of air traffic at Kai Tak before completion of the new airport, whether the Government expects an increase in the number of aircraft landing and taking off during curfew hours? What are the preventive measures and remedies to protect the residents in the densely populated areas in Hong Kong East, such as Shau Kei Wan, Heng Fa Chuen and Chai Wan, from being disturbed by noise nuisance?

SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, the Civil Aviation (Aircraft Noise) (Limitation on Landing and Take off of Aircraft) Notice gazetted on 1 November 1989 under the Civil Aviation (Aircraft Noise) Ordinance (Cap 312) provides for various degrees of limitation on the landing and taking off of aircraft according to the time of night. Under the terms of this notice the airport is, for practical

purposes, "closed" between the hours of 12 midnight and 6.30 am during which aircraft may not land or take off except with the specific permission of the Air Traffic Services Watch Supervisor. In practice such permission is given only in exceptional circumstances which could not have been reasonably foreseen by the aircraft operator. The exceptional circumstances include:

(i) malfunctions of the aircraft or unserviceability of navigation aids; (i) malfunctions of the aircraft or unserviceability of navigation aids;

(ii) disruption of normal operations at the aerodrome of origin or (ii) disruption of normal operations at the aerodrome of origin or destination;

(iii) closures of airspace or air traffic congestion; (iii) closures of airspace or air traffic congestion;

(iv) disruption to normal airport and aircraft operations due to war, bomb disruption to normal airport and aircraft operations due to war, bomb threats, industrial dispute, search and rescue flights, and medical evacuation; and

(v) disruption of normal operations due to adverse weather conditions. (v) disruption of normal operations due to adverse weather conditions.

For these reasons it is not expected that the number of aircraft landings or For these reasons it is not expected that the number of aircraft landings or take-offs during curfew hours will increase in proportions to the general increase in air traffic. Statistics indicate that while total aircraft movements have increased 3% from 105 782 in 1990 to 109 718 in 1991, movements between midnight and 6.30 am have actually decreased 8% from 392 in 1990 to 360 in 1991.

The Administration is fully conscious of the need to minimize noise nuisance to residents living under or in the vicinity of the flight path. We intend in the coming year to introduce legislation which, amongst other things, will prohibit the addition to Hong Kong's aircraft register of second generation subsonic aircraft which do not meet new international standards of noise.

I can assure Members that the Civil Aviation Department will continue to main I can assure Members that the Civil Aviation Department will continue to maintain a tight control over the approval of operations during the curfew hours. Having said this, it is inevitable that, as Kai Tak becomes more and more heavily used, the demand for departure slots in the late evening will increase. Ultimate relief to residents living in the vicinity of the airport will come only when Kai Tak closes down. Every effort is therefore being made to complete the new airport as quickly as possible.

MR MAN SAI-CHEONG (in Cantonese): Mr Deputy President, could the Administration inform this Council whether it has any remedial measures to minimize the impact of noise pollution on the residents of Heng Fa Chuen and Eastern Hong Kong?

SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I believe I have already covered this in my original reply. To the extent that the traffic at Kai Tak may increase and therefore increase perhaps the need for more departures beyond the curfew hours, we already have very stringent circumstances governing the granting of approval for take-offs during the curfew hours. As traffic at Kai Tak increases, there are of course other ways of increasing capacity so as to keep to a minimum the noise pollution on residents living in Heng Fa Chuen and some of the other areas that have been

mentioned.

MR HOWARD YOUNG: Mr Deputy President, has the Government considered whether implementing same-direction movements in the evening hours, instead of opposite direction movements, would actually lessen the burden on Heng Fa Chuen residents by not having all the movements concentrated over Lei Yue Mun?

SECRETARY FOR ECONOMIC SERVICES: Yes, Mr Deputy President, this is in fact a particular proposal that the Director of Civil Aviation is currently considering. Of course, to the extent that the noise pollution on residents is spread and diverted, for example, from Eastern Hong Kong to Kowloon City, whilst the noise level for residents living in Eastern Hong Kong will diminish, the noise level for residents living in Kowloon City will increase. But this is an area that we are looking at.

MR JIMMY McGREGOR: Mr Deputy President, with regard to the 360 aircraft that were given permission to land or take off after 12 midmight during 1991, could the Secretary say at what hours these movements took place, in other words, the exact hours where most of these landings or take-offs occurred? And secondly, were aircraft which were approaching the airport refused permission to land during that time?

SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I do not have the statistics broken down in the way that Mr McGREGOR requests. I will supply a written reply.

(Annex I)

REV FUNG CHI-WOOD (in Cantonese): Mr Deputy President, could the Secretary inform this Council how many flights had been delayed because of failure to depart on time and whether item (ii) of the main reply would cover this? And as regards item (ii), can an estimate be given as to the ratio it represents? The figures for 1990 indicated that there was on average one aircraft movement a day during the curfew hours. Are there any practical measures to reduce the number of landings or take-offs during the curfew hours?

SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, as I have pointed out in my principal reply, the circumstances under which permission will be granted for landings or take-offs during the curfew hours are already extremely circumscribed, and I have assured Members that permission in future will continue to be governed by these very stringent conditions.

MR ERIC LI (in Cantonese): Recently, I took a plane and owing to flight delay, it landed in Hong Kong at about 5 am which was during the curfew hours. If the take-off time could be put off by an hour, it would not have landed during the curfew hours. Will the Administration therefore consider requesting the take-off time of these flights be postponed so that landings would take place after 6.30 am?

DEPUTY PRESIDENT: Have you understood that question, Secretary for Economic Services?

SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I am not sure that I can catch the drift of that question. Would the Member like to rephrase it so that I can answer it?

MR ERIC LI (in Cantonese): Mr Deputy President, once I took a plane from Thailand and it landed here at about 5.15 am. I believe that if the departure flight from Thailand had been put off by one hour, the plane would have landed in Hong Kong at 6.30 am instead of 5.30 am which means it would not have landed during the curfew

hours. In this connection, will the Administration consider the postponement of flights from other aerodromes so as to avoid landings in Hong Kong during the curfew hours?

SECRETARY FOR ECONOMIC SERVICES: Mr Deputy President, I am not sure that the Director of Civil Aviation currently can control at what time planes depart or land from other aerodromes. I think in so far as planes are flying into Hong Kong, local circumstances and the rules pertaining will of course apply.

Administrative system of the Judiciary

2. MR MOSES CHENG asked: Whilst recognizing the vital need to preserve the 2. MR MOSES CHENG asked: Whilst recognizing the vital need to preserve the independence of the Judiciary, will the Administration inform this Council how it monitors and ensures the efficient operation of the administrative system of the Judiciary?

CHIEF SECRETARY: Mr Deputy President, the administration of the Judiciary is primarily the responsibility of the Registrar, Supreme Court under the supervision of the Chief Justice. That said, the Judiciary is treated no differently from government departments on matters relating to administrative systems and operational efficiency. Any major changes are examined by the two resource branches of Finance and Civil Service in the Government Secretariat and the Administration Wing of my Office which provides a point of contact with the Judiciary within the Administration. Together, they work to ensure that the courts and judges receive the administrative support they need in carrying out their judicial functions. This arrangement is similar to the arrangements in the United Kingdom where the Lord Chancellor's Department supports the central role of courts and judges in the administration of justice.

Separately, to help government departments improve their efficiency and productivity, the Administration has put in place an ongoing Information Systems Strategic Study Programme to study the utilization of information technology by departments and to see further measures can be taken to help them improve utilization of information technology and so achieve their goals. An Information Systems Strategic Study on the Judiciary commenced in July 1991 and is expected to be completed

in the near future. This study should enable the Judiciary to make considerably more extensive use of information technology to assist judges in their research, capture key management information (such as information on the use of courtrooms and length of judge-days) and generally achieve their objectives more efficiently. The

administration of the Judiciary is also subject to the Director of Audit's value for money audit, which examines, on a regular basis, the economy, efficiency and effectiveness with which government departments use public money.

MR MOSES CHENG: Mr Deputy President, in the reply given by the Chief Secretary we were informed that the administration of the Judiciary is no different from any other department within the Government and would be subject to the same sort of supervision and monitoring by policy branches as well as by the Director of Audit. Can the Chief Secretary inform this Council if that could in any way be interpreted as compromising the independence of the Judiciary?

CHIEF SECRETARY: Mr Deputy President, no, I do not believe that there can be any question of the executive branch of the Government compromising the independence of the Judiciary through the system that I have described for the monitoring of the efficient operation of the Judiciary. Whilst there must be no question of

interference by the executive or by any other authority with the Judiciary in the discharge of its judicial functions, the administrators of the Judiciary are answerable to the legislature for value for money and I think the executive branch has a legitimate role to play in helping the Judiciary to ensure that the resources appropriated by the legislature are utilized efficiently and effectively.

MISS EMILY LAU (in Cantonese): Mr Deputy President, although the waiting times for a lot of cases in the High Court are as long as a few hundred days, some High Court Judges complained in private that they did not have enough work. In these circumstances, does the Administration intend to conduct a review so as to assist the Judiciary in the efficient deployment of staff?

CHIEF SECRETARY: Mr Deputy President, I think the study which I have referred to will achieve the sort of aim which Miss LAU is looking for and which we indeed are looking for ourselves. I might say that the waiting time in the High Court which Miss LAU

referred to is being reduced, and I might bring Members up to date on that subject since I know it is a matter of some interest. The Judiciary is running 13 criminal lists at the moment and 11 civil lists in the High Court. The criminal lists in the High Court now extend for about 12 months and the civil lists for eight months. Following Finance Committee's approval for the creation of three additional High Court Judge posts, four additional Deputy High Court Judges will be appointed and four additional criminal lists opened. In January 1993, two civil lists will be closed and those judges transferred to criminal work. Therefore from 1 July 1992, there will be 17 criminal lists, and from 1 January 1993, 19 criminal lists. The effect these additional lists will have of reducing wasted time will be immediate. It is estimated that by the end of 1992, waiting times in criminal cases in the High Court will be reduced to 200 days, and by mid-1993 to 180 days. Civil fixture cases will however be held at the present waiting time because of the concentration on criminal cases. The Judiciary will continue its efforts to progressively reduce waiting times through case flow management and other means until the waiting times in both civil and criminal cases get down to more acceptable levels.

MR JAMES TO (in Cantonese): Mr Deputy President, does the Administration have in place a direct channel for those organizations and persons who may have daily administrative contacts with the Judiciary, such as the Law Society, the Bar Association, lawyers under the Duty Lawyers' Scheme, the Hong Kong Association of Legal Executives, the Trainee Solicitors Association of Hong Kong and the Legal Aid Department, to present their views so that they need not rely on the officials of the Judiciary to relay their views to the Administration?

CHIEF SECRETARY: Mr Deputy President, I am sure that any suggestions as to how the efficiency of the Judiciary may be improved can be made either to the Registrar, Supreme Court or indeed to my Office, and we will make sure that they are passed on to those concerned.

Disability allowance

3. MR LAU CHIN-SHEK asked (in Cantonese): Regarding the Disability Allowance 3. MR LAU CHIN-SHEK asked (in Cantonese): Regarding the Disability Allowance provided by the Social Welfare Department, will the Government inform this Council of the following:

(a) the original i (a) the original i the original intention and objective of introducing this Allowance; ntention and objective of introducing this Allowance; (b) the current method of calculating the Allowance; (b) the current method of calculating the Allowance;

(c) the current application criteria for the Allowance; and (c) the current application criteria for the Allowance; and

(d) the number of applications received in each of the past three years; of t (d) the number of applications received in each of the past three years; of these, the number of applications approved, the types of disability and the amount of allowances involved respectively?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the Disability Allowance was introduced in 1973. It is non-contributory, non-means tested and paid at a flat rate. The original intention and objectives of introducing this Allowance are as follows:

(a) to provide a new and effective means of giving some help to a family with (a) to provide a new and effective means of giving some help to a family with caring for a disabled member;

(b) to encourage a family to (b) to encourage a family to to encourage a family to continue coping with the disabled; and continue coping with the disabled; and (c) to enable the beneficiary to make some contribution to the family "budget". (c) to enable the beneficiary to make some contribution to the family "budget".

As regards part (b) of the question, the rate of the Disability Allowance is pegged to the basic rate for a single person under the Public Assistance Scheme. Irrespective of financial circumstances of the claimant, the current rate is $825 per claimant per month. It is reviewed periodically in the light of changes in the Public Assistance Index of Prices. Additionally, those who are eligible for Public Assistance will be paid public assistance plus the appropriate supplements.

As regards part (c) of the question, a disabled person is eligible for the Disability Allowance, if he or she:

(a) has been in continuous residence in Hong (a) has been in continuous residence in Hong has been in continuous residence in Hong Kong for at least one year Kong for at least one year immediately before claiming the Allowance;

(b) continues to reside in Hong Kong after receipt of the Allowance. An absence (b) continues to reside in Hong Kong after receipt of the Allowance. An absence of up to a maximum of 119 days a year is allowed; and

(c) has been certified by the Director of Healt (c) has been certified by the Director of Healt has been certified by the Director of Health or Director of Operations of h or Director of Operations of the Hospital Authority or, under exceptional circumstances, by a registered private practitioner as severely disabled within the meaning of the Disability Allowance Scheme for at least six months.

As regards part (d) of the question, the number of applications received and As regards part (d) of the question, the number of applications received and approved between 1989-90 and 1991-92 for the Disability Allowance is as follows:

No. of No. of No. of No. of % of

Applications Applications Applications Applications Applications Successful Successful

Received Approved Received Approved Approved Applications Applications

1989-90 6 200 1989-90 6 200 5 159 83

1990-91 6 395 1990-91 6 395 5 434 85

1991-92 6 496 1991-92 6 496 5 826 90

There are four types of disability, namely, physical, mental and visual disablements as well as profound deafness. The total amount of allowances involved is $377 million, $423 million and $482 million in 1989-90, 1990-91 and 1991-92 respectively. As regards details of the amount and the classification of disabling conditions, may I refer Members to the Annex of my reply.

Annex

Types of Disability and Amount of Allowances Involved

Physical Menta Physical Mental Visual Profound Profound

disablement disablement disablement disablement disablement disablement disablement disablement deafness deafness deafness Total

$Mn $Mn $Mn $Mn $Mn $Mn $Mn

1989-90 189 1989-90 189 109 46 33 377

1990-91 213 1990-91 213 126 48 36 423

1991-92 245 1991-92 245 145 52 40 482

Classification of Disabling Conditions

(A) Physical disablement: (A) Physical disablement:

(1) loss of f (1) loss of f loss of functions of two limbs unctions of two limbs

(2) loss of functions of both hands or all fingers and both thumbs (2) loss of functions of both hands or all fingers and both thumbs (3) loss of functions of both feet (3) loss of functions of both feet

(4) total loss of sight (4) total loss of sight

(5) total paralysis (quadriplegia) (5) total paralysis (quadriplegia)

(6) illness, injury or deformity resulting in being bed-ridden (6) illness, injury or deformity resulting in being bed-ridden (7) any other conditions resulting in total physical disablement (7) any other conditions resulting in total physical disablement (8) paraplegia (8) paraplegia

(9) hemiplegia (9) hemiplegia

(B) Mental disablement (B) Mental disablement

(1) mentally ill or any other conditions resulting in total mental disablement (1) mentally ill or any other conditions resulting in total mental disablement (2) mentally retarded (2) mentally retarded

(3) organic brain syndr (3) organic brain syndr organic brain syndrome

(4) psychosis (4) psychosis

(5) neurosis (5) neurosis

(6) personality disorder (6) personality disorder

(C) Disabled mentally or physically, requiring constant attendance (C) Disabled mentally or physically, requiring constant attendance (1) physical (1) physical

(2) mentally ill (2) mentally ill

(3) mentally retarded (3) mentally retarded

(D) Profoundly deaf (D) Profoundly deaf

Note Persons suffering from serious illness Note Persons suffering from serious illness Persons suffering from serious illnesses resulting in disabling conditions es resulting in disabling conditions may qualify under A (5), (6), (7) and C (1).

MR LAU CHIN-SHEK (in Cantonese): Mr Deputy President, at present to qualify for Disability Allowance, a person has to be 100% disabled, that is suffering from loss of functions of both hands or legs, or total paralysis. Would the Secretary inform this Council whether the criteria set are too high which means that those severely disabled but not to the extent of 100% disability are not given the assistance they need?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, as I have said in my original reply, the objective of the Disability Allowance is to enable those severely disabled to continue with help within the family, that is to say, it is meant for those who are severely disabled. As regards persons who have less than 100% disability, if their family is without means they can apply for Public Assistance; under Public Assistance there is also provision for Disablement Supplement for those with 50% disability or more.

MR WONG WAI-YIN (in Cantonese): Mr Deputy President, at present elderly people who receive Disability Allowance are not eligible for Old Age Allowance. Could the Administration inform this Council of the rationale behind this policy and whether this policy is contradictory to the original intention and objective of providing

Disability Allowance?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, there is no disagreement with regard to the principle of Disability Allowance. Disability Allowance is within the overall Special Needs Allowances which include Old Age Allowance and Disability Allowance. But as regards people who are disabled but are not within the Old Age Allowance, they can apply for Public Assistance which also includes an element of Old Age Supplement for those aged 60 and over.

DR LEONG CHE-HUNG: Mr Deputy President, can the Administration inform this Council whether the Disability Allowance provides for the purchase of special apparatus which some disabled people would require, for example, lifting machines for the totally paralysed person? If not, where can these victims obtain such needed support?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, no one will be denied adequate medical treatment because of lack of means. The Government has arrangements to waive in full or in part charges for medical expenses under the provision of Public Services. Furthermore, under the Public Assistance Scheme, applications for reimbursement of special needs expenses, such as the one mentioned by Dr LEONG, will be covered and may be considered. These applications will also be examined on individual merit. And furthermore, people who are in receipt of Public Assistance are eligible for free medical treatment provided by the hospitals under the Hospital Authority and clinics operated by the Government.

DR CONRAD LAM (in Cantonese): Mr Deputy President, could the Administration inform this Council if disability can still be further divided into general disability and special disability; if yes, what the criteria are for differentiating them?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, there are two categories of Disability Allowance. The first one is the normal Disability Allowance for persons who are suffering from a disability equal to 100% loss of earning capacity. There is another category known as a Higher Disability Allowance for persons who require constant attendance by other members of their family, which attendance is not provided for within the medical institutions. So the Higher Disability Allowance is to cater

for this group and the rate is double that of the normal rate of Disability Allowance.

MR PANG CHUN-HOI (in Cantonese): Mr Deputy President, according to the main reply, the number of applications approved in 1991-92 was 5 826. Given the current rate of $825 per applicant per month, the amount of Disability Allowance each applicant receives in a year is around $10,000, making a total of $58.26 million in annual payment. However, it was mentioned in the reply that the total amount of allowances involved was $482 million, may I know how the remainder was spent?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the amount of allowances that have been given is in regard to the number of persons who have been given the Disability Allowances; so they are all in regard to the actual number of persons in receipt of the Disability Allowances.

MR VINCENT CHENG: Mr Deputy President, I know I am not qualified for this Disability Allowance but I am quite surprised to learn of the qualifying criteria. Would the Administration inform us why only the loss of both legs or hands is defined as a disability whereas the loss of one hand or one leg does not qualify as such?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, as I have mentioned in my main reply, there are four categories of disability: physical, mental, or conditions requiring constant attendance, and profound deafness. These categories are in accordance with the First Schedule of the Employees' Compensation Ordinance which means that a person in such a condition is equivalent to 100% loss of earning capacity.

Lo Wu Terminal immigration control point

4. MR TAM YIU-CHUNG asked (in Cantonese): With regard to the immigration control 4. MR TAM YIU-CHUNG asked (in Cantonese): With regard to the immigration control point at the Lo Wu Terminal, will the Government inform this Council:

(a) of the daily figures of travellers entering and leaving Hong Kong during (a) of the daily figures of travellers entering and leaving Hong Kong during

normal and peak periods;

(b) of the number of officers taking up immigration clearance duties during the (b) of the number of officers taking up immigration clearance duties during the normal and peak periods respectively;

(c) of the average waiting time for each traveller queuing up for clearance (c) of the average waiting time for each traveller queuing up for clearance procedures upon arrival or departure during rush hours; and

(d) what measures will be taken by the Government to speed up the movement of (d) what measures will be taken by the Government to speed up the movement of travellers during rush hours?

SECRETARY FOR SECURITY: Mr Deputy President, on average some 86 000 passengers pass through the Lo Wu Terminal on weekdays, and some 102 000 on Saturdays and public holidays. The volume of passenger traffic is higher at a number of festivals during the year, such as at the Lunar New Year and at Ching Ming.

Forty-six immigration counters are manned on weekdays, and 60 at weekends. All the 88 counters are manned at periods of peak demand.

We aim to complete immigration clearance of all passengers within 30 minutes. We aim to complete immigration clearance of all passengers within 30 minutes. This standard is generally achieved, including at the Lo Wu Terminal. However, during periods of peak demand, some passengers may have to wait for longer than this.

To cope with the volume of passenger traffic at times of peak demand: the To cope with the volume of passenger traffic at times of peak demand: the Immigration Department deploy staff flexibly to man as many immigration counters as possible in the direction where demand is highest; and Hong Kong residents are segregated from other travellers so that holders of Hong Kong identity cards can be cleared more quickly. In the longer term, work has now started on a project which will provide additional waiting space of about 1 800 sq m and an increase in the number of counters for passenger clearance from 88 to 160. This project is expected to be completed at the end of 1994.

MR TAM YIU-CHUNG (in Cantonese): Mr Deputy President, how many passengers was the Lo Wu Terminal originally designed to handle and how long passengers have to wait during peak periods?

SECRETARY FOR SECURITY: Mr Deputy President, I do not have that figure available. But I can say that the extension we are proposing will enable us to handle up to 13 000 arrivals and 11 000 departures an hour.

DEPUTY PRESIDENT: Would you be able to supply the information requested in writing, Secretary for Security?

SECRETARY FOR SECURITY: Yes, Mr Deputy President. (Annex II)

MR EDWARD HO: Mr Deputy President, will the Secretary please advise this Council to what extent movement through the Lo Wu Terminal is delayed by lack of manpower and facilities on the Chinese side, and what measures the Government is taking to alleviate such delay?

SECRETARY FOR SECURITY: Mr Deputy President, I do not think that any delay in passing through our Lo Wu Terminal is attributable to lack of facilities on the Chinese side. There is though, I would say, very regular and close liaison between the Immigration Department on our side and the authorities on the Chinese side to cope with peaks and busy periods of demand.

MR MARTIN BARROW: Mr Deputy President, is the Secretary aware that there are increasing complaints by foreign visitors regarding delays at Lo Wu and other points, and would he not agree that with visitor numbers expected to show continued growth, the Immigration Department will need to increase manning levels at these points, including Kai Tak?

SECRETARY FOR SECURITY: Mr Deputy President, the numbers of complaints in relation to Lo Wu have in fact been very small indeed. In the last three years we have probably had less than a handful of complaints in each year. I do agree though that it is necessary for us to seek to maintain the design clearance time for all passengers of 30 minutes and we will certainly endeavour to obtain and deploy the resources necessary to do that.

MRS SELINA CHOW: Mr Deputy President, in his answer the Secretary said that in times of peak demand the passengers would really have to wait much longer than the 30- minute target waiting time originally intended. Can the Secretary tell this Council how many days in a year would be regarded as periods of peak demand, and what the longest time would be for passengers to wait during the periods of peak demand?

SECRETARY FOR SECURITY: Mr Deputy President, averages can be slightly confusing. On normal weekdays the average waiting time would be approximately 15 minutes. On Saturdays and Sundays it would be 20 minutes. On certain festivals which would occur primarily at Lunar New Year, at Ching Ming, at Easter and maybe on a handful of other days during the year, the waiting time would average 30 minutes. But these are averages and I do stress that within busy periods there are a number of individual peaks and during those times the waiting time can be longer than these average figures I have quoted.

DR SAMUEL WONG: Mr Deputy President, the immigration control point at the KCR Terminal in Hung Hom is used for four or five pairs of through trains daily to Guangzhou only. Could this same control point be used for additional through trains, if available, to stations beyond Lo Wu in China, so that the loading at Lo Wu could be eased?

SECRETARY FOR SECURITY: Mr Deputy President, to my knowledge the immigration control point at Hung Hom is under equal pressure, if not more than Lo Wu, and I do not believe that it could be used effectively to relieve pressure at Lo Wu at present.

MR HOWARD YOUNG (in Cantonese): Mr Deputy President, besides locals and foreign visitors, users of the Lo Wu Terminal include people coming to Hong Kong on two way permits to visit their relatives here. They usually use another crossing and have to wait for over 30 minutes. Will the Administration consider improving the facilities so that they do not have to wait too long?

SECRETARY FOR SECURITY: Yes, Mr Deputy President. Clearly, quite apart from the

waiting time, the actual processing time of individual travellers can vary considerably. It averages 24 seconds per passenger. But for Hong Kong residents it tends to be about half that time, that is, about 10 to 12 seconds per passenger; and for certain categories of traveller, in particular the two-way permit holders which Mr YOUNG has mentioned, it can be very considerably longer than average. The possibility of some alternative arrangement for two-way permit holders is something that the Director of Immigration is now considering.

MR FRED LI (in Cantonese): Mr Deputy President, could the Administration inform this Council whether the busy periods mentioned by the Secretary in his reply should include primary and secondary school holidays such as Easter? If not, why not?

SECRETARY FOR SECURITY: Yes, Mr Deputy President. As I think I said in my main answer, certain festivals and holidays of the year are particularly busy periods; that would include Easter as well as the Lunar New Year and Ching Ming. I believe in fact that the highest daily number of passengers recorded this year was on 3 April, just before Ching Ming, when about 137 000 passengers passed through Lo Wu.

MR WONG WAI-YIN (in Cantonese): Mr Deputy President, could the Secretary inform us of the number of passengers who return on the same day they depart and what is the trend of growth for this category of passengers?

SECRETARY FOR SECURITY: Mr Deputy President, I said in my main answer that certainly during the first three months of this year the average number of passengers per day was 86 000 on weekdays and 102 000 on Saturdays and Public Holidays, and on a few days, at festivals, the numbers can be higher than that. Those are the average number of figures and in general one can assume that the traffic out of Hong Kong is roughly the same as the traffic into Hong Kong; so the number of passengers arriving would be roughly half those figures.

Sino-Hong Kong efforts against smuggling of weapons

5. MR HENR 5. MR HENR MR HENRY TANG asked: In view of the increasingly powerful weapons used by Y TANG asked: In view of the increasingly powerful weapons used by

criminals in recent incidents, one of which involved a grenade attack and caused injury to 17 police officers and passers-by, will the Government inform this Council what specific agreement has been reached with the Chinese authorities in stepping up joint efforts to curb the smuggling of weapons into Hong Kong?

SECRETARY FOR SECURITY: Mr Deputy President, there is no single agreement with the Chinese authorities on joint efforts to curb the smuggling of weapons into Hong Kong. But we have a number of channels for cross-border co-operation on curbing this and other illegal activities between Hong Kong and China. These provide for day-to day co-operation in all the key areas of cross-border crime.

The first means of liaison is the International Criminal Police Organization, commonly known as Interpol, of which both Hong Kong and China are members. This provides Hong Kong and China, as it does police forces all over the world, with a regular channel through which one police force may request the assistance of the other in combatting crime. This is reinforced by cross-border liaison through regular

visits by representatives of our police force to their counterparts in China and vice versa. At the working level, border liaison contacts take place regularly to discuss and resolve practical problems of cross-border co-operation against crime. This cooperation extends to areas such as:

(a) the identification of suspects involved in cross-bor (a) the identification of suspects involved in cross-bor the identification of suspects involved in cross-border crimes; der crimes; (b) information on the smuggling of arms or other contraband; and (b) information on the smuggling of arms or other contraband; and

(c) co-ordinated operations to tackle illegal immigration, smuggling, and (c) co-ordinated operations to tackle illegal immigration, smuggling, and narcotics.

Members will also be aware that the Commissioner of Police, and a delegation of his senior officers, are now in China for high level discussions on cross-border co-operation on crime. Smuggling of weapons is one of the main areas he will be discussing.

MR HENRY TANG (in Cantonese): Mr Deputy President, I hope that this question is not outside the ambit of the main question. In the Sham Shui Po shoot-out between the police and the robbers on 24 April, the police fired many shots but none hit the

suspects. In the mahjong parlour case last night, a total of 33 rounds of ammunition were fired by the police and only one robber might have been hit. Given that police officers normally have only three firing practices in a year, will the Administration inform this Council whether consideration will be given to providing the police with more training in this area so as to improve the accuracy of their shots?

DEPUTY PRESIDENT: Mr TANG, I think, despite your entreaty, the question is out of order, I fear. Do you wish to ask a relevant supplementary, please?

MR HENRY TANG (in Cantonese): Mr Deputy President, the Secretary mentioned in his main reply that apart from liaison through the International Criminal Police Organization, other co-operation between Hong Kong and China would include identification of suspects, information exchange and co-ordinated operations. Will the Secretary inform this Council of the number of suspects arrested in China and extradited to Hong Kong for trial lately as a result of the above co-operation?

SECRETARY FOR SECURITY: Mr Deputy President, there is no extradition arrangement between Hong Kong and China and persons are not extradited between China and Hong Kong or between Hong Kong and China.

DR LAM KUI-CHUN: Mr Deputy President, would the Secretary give us some idea how much importance their Chinese counterparts actually attach to preventing firearms from being brought into Hong Kong as compared to, say, Chinese antiques and objets d'art?

SECRETARY FOR SECURITY: Mr Deputy President, I believe, from all the reports I have had of discussions by the Commissioner of Police and senior police officers with their counterparts in China, that the Chinese authorities do take this problem seriously.

MR SIMON IP: Mr Deputy President, from the Secretary's answer it seems that there has been a lot of discussion, a lot of talk. But what we really want to know is what

action will be taken and what agreements have been reached to deal with the situation that we are now facing at the moment. Would the Secretary brief us on this?

SECRETARY FOR SECURITY: Mr Deputy President, it is difficult to quantify in any statistical form the results of co-operation in terms of individuals arrested, in terms of weapons that have been seized, or in terms of cases of smuggling or illegal immigration prevented. The exchange of information and the assistance from one side to another is but one of the means that the police use to tackle these crimes. But I think I can say that the cross-border co-operation has been a factor in solving some of the crimes and in preventing in some cases arms coming into Hong Kong.

MRS RITA FAN: Mr Deputy President, what happened last night sent shock waves across our community. The Secretary and we all know that the Commissioner of Police and a delegation of senior officers are now in China for talks. May I ask the Secretary whether he has already sent a message to the Commissioner of Police to convey our very deep concern about what happened last night and urge the Chinese authorities to offer us every co-operation, for their good as well as ours?

SECRETARY FOR SECURITY: Mr Deputy President, I have not myself been in touch with the Commissioner of Police but I know that the police here are and have been in regular touch with him in China. I am sure that we all share the shock and the concern that Mrs FAN has expressed and that the Commissioner will clearly be taking this matter up during his stay in China.

MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy President, in view of the increasing seriousness of the street shoot-outs between police officers and robbers and the occassional reports of members of the public being hit by flying bullets, will the Administration inform this Council whether there is any plan in hand to advise people, through television or other media, how to respond to the situation should they

confront a shoot-out so as to reduce the dangers posed to their lives? DEPUTY PRESIDENT: It is not strictly relevant but do you have a ready answer?

SECRETARY FOR SECURITY: No, Mr Deputy President, I am not able at the moment to answer that.

MR WONG WAI-YIN (in Cantonese): Mr Deputy President, it seems to me that neither of the two officials provides me with a relevant answer to the two questions I raised just now. I hope I could get an answer this time. Notwithstanding that no agreement has been reached between the Hong Kong Government and the Chinese authorities after lots of talks and discussions, will the Administration inform this Council of the concrete actions taken by the Chinese side in the meantime to curb the smuggling of arms by powerful speedboats?

SECRETARY FOR SECURITY: Mr Deputy President, perhaps I could by way of clarification say first of all that I did not mean to give the impression from my original answer that there has been a complete lack of agreement with the Chinese. What my original answer said was that the arrangements for co-operation that we have with China are not reduced into one single agreement on one bit of paper. We have had, in fact, considerable agreement on the sort of co-operation which each side can offer the other and I gave some general examples of those in my main answer. In the specific case that the question relates to, the Chinese side has been taking very robust and very frequent action against speedboats currently travelling between Hong Kong and China, and as I said, sometimes these operations are co-ordinated with operations on our own side.

MR TAM YIU-CHUNG (in Cantonese): Mr Deputy President, goldsmith and jewellery shops usually are the prime targets of robbers. Will the Administration allow these shops to employ security guards from China in order to frighten off potential robbers?

DEPUTY PRESIDENT: That strays beyond the main question and answer, but do you have a ready answer, Secretary for Security?

SECRETARY FOR SECURITY: Mr Deputy President, all I can say is that there is, I think, provision under the importation of labour scheme for security guards to be admitted

into Hong Kong. Clearly, who applies for that and where they recruit staff is a matter for the shop owners themselves.

MRS SELINA CHOW (in Cantonese): Mr Deputy President, will the Secretary inform this Council whether the Administration finds our frequent contacts with the Chinese side useful? If so, can he cite any example to demonstrate how effective they are?

SECRETARY FOR SECURITY: Mr Deputy President, I have attempted to answer that question previously. Yes, I do believe they are effective but it is not possible to quantify this in terms of statistics. All I can say is that co-operation, in the form of the passage of information in particular, has been useful to the police in Hong Kong, both in preventing and in solving certain crimes.

MR FREDERICK FUNG (in Cantonese): Mr Deputy President, I would like to raise a question which may not be directly related to the main question. I find the recent shoot-outs between the police and the robbers really horrifying, in particular the Sham Shui Po case. Will the Administration impose heavy penalties on those convicted?

DEPUTY PRESIDENT: I have got to rule that out of order, Mr FUNG, the question relates to agreement with the Chinese.

Civil service strength and growth

6. MR LEE WING-TAT asked (in Cantonese): Will the Government inform this Council: 6. MR LEE WING-TAT asked (in Cantonese): Will the Government inform this Council: (a) of the change in the strength of the Civil Service over t (a) of the change in the strength of the Civil Service over t of the change in the strength of the Civil Service over the past three ye he past three years; (b) of the change in the strength at directorate level over the same period; (b) of the change in the strength at directorate level over the same period;

(c) excluding the effect of the establishment of the Hospital Authority, whether (c) excluding the effect of the establishment of the Hospital Authority, whether the change over the past three years has reflected a containment in the growth of the Civil Service as a whole and at directorate level?

SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President,

(a) The strength of the Civil Service was l85 486 at l January l989. This (a) The strength of the Civil Service was l85 486 at l January l989. This increased by 2 397 (l.29%) during l989 to 187 883, and by l 975 (l.05%) to 189 858 in l990. Strength as at l January l992 was l87 006, which excludes staff who had

left the Civil Service to join the Vocational Training Council and the Hospital Authority up to that date. If we included such staff the total strength would be l9l 936, or an increase of 2 078 (l.09%) over the previous year.

(b) The strength of the directorate was l l29 at l January l989. This increased (b) The strength of the directorate was l l29 at l January l989. This increased by 47 to 1 176 (4.16%) in l989, by 96 to 1 272 (8.l6%) in l990 and by l03 to 1 375 (8.l%) at l January l992. Again, this last figure includes staff who had left the service to join the Vocational Training Council and the Hospital Authority.

(c) The figures reflect the Government's policy to control the overall growth (c) The figures reflect the Government's policy to control the overall growth of the Civil Service. Having said that, the policy allows variations between departments and grades, so as to enable the Government to anticipate and react to changes in the nature, priorities and organization of its work. Although, during the period in question the directorate grew faster in percentage terms than the service as a whole, the number of new directorate posts year on year has been modest. Generally, increases in staff arise from the implementation of new tasks, and the upgrading of existing services. The increasing complexity of government business, and rising community expectations require greater policy input at the directorate level. At more junior levels, we have been able to benefit from increased computerization and practices such as contracting out basic services to the private sector. This has enabled us to contain growth at these levels more easily.

MR LEE WING-TAT (in Cantonese): Mr Deputy President, many lower and middle ranking civil servants have reflected to us that the Administration only restrains the growth of civil servants in their ranks but has been very lenient in respect of growth of directorate posts, and that this has undermined the morale of the lower and middle ranking civil servants. In his main reply the Secretary has indicated that posts at the directorate level have increased by 20% in the last three years. Would the Administration inform this Council how one could be assured that the existing

directorate posts have not exceeded the actual demand and that they are "value for

money"?

SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, I acknowledged in my answer that in percentage terms there appears to have been a greater relative increase in the size of the directorate compared with the Service as a whole over the last three years. I think, however, we should look at the figures: the directorate grew from 1 129 to 1 375, an increase of 246 officers. As I said in my main reply, I regard that as modest as compared with 6 500 at the non-directorate level. There is no question of the directorate being allowed to increase at the expense of the non directorate; there are indeed different sources of funding and different procedures which apply. It is not possible, for instance, for a head of department to delete junior posts and thereby provide funds for new directorate posts.

MR CHEUNG MAN-KWONG (in Cantonese): Mr Deputy President, it can be seen from the Secretary's main reply that the growth in directorate posts has far exceeded the overall growth of the Civil Service. As a matter of fact many of the documents as well as justifications and recommendations in support of the proposals submitted to the Establishment Sub-committee of the Legislative Council to increase the

directorate posts have been prepared by civil servants at the directorate level. Will the Administration inform this Council how it will ensure that these civil servants will not be able to lend a hand to their colleagues in creating directorate posts so as to check against overexpansion?

SECRETARY FOR THE CIVIL SERVICE: As I mentioned, Mr Deputy President, there are different procedures applying to the creation of directorate posts and posts at the non-directorate level. At the non-directorate level, the authority is given under the arrangements of our flexible management system to heads of departments, provided they keep within certain financial guidelines. Those posts do not come to the Establishment Sub-committee and Members of the Legislative Council are therefore not aware of those. Posts at the directorate level have to go through a number of procedures. First of all, the Policy Secretary concerned must give support and must argue the case and the two resource branches then take considerable care in ensuring that the case is fully justified. As my colleague heads of departments will vouch, those hurdles are already pretty high and a number of proposals fall at that stage. If the recommendations are agreed at that stage, then they are referred outside the

Administration to one of our three advisory bodies for their advice. If they survive those hurdles, they are then passed to the Establishment Sub-committee and finally to the Finance Committee of this Council. So in other words, Mr Deputy President, there are multiple checks on the creation of directorate posts, which do not apply to those at the non-directorate level.

MISS EMILY LAU (in Cantonese): Mr Deputy President, the figures provided by the Administration of the growth in the numbers of senior civil servants is a great shock to me. I believe the Administration is also aware of the rumours that civil servants, particularly those at the senior level, are very enthusiastic in creating new posts so as to enhance their chance of promotion so that they can receive a handsome amount of pension upon retirement before 1997. May I pursue further by asking how it is going to maintain the morale of the lower and middle ranking civil servants particularly when they see that those in the senior ranks are all the while grabbing money? Could the Administration also inform this Council of the government departments which have created such a large number of senior posts?

SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, I stand by my description of the 246 officers at the directorate level as modest over the three years. I might point out that some particular growth took place in two example areas, medical and health and the port and airport development projects over the last three years. The opening, for instance, of the Tuen Mun Hospital necessitated the creation of 22

consultant posts; we created last year 30 consultant posts in response to the demand for sub-specialization and 50 posts at the directorate level in various departments related to the port and airport development projects. In other words, to be precise, 102 posts out of the 246 over the three years come from those three areas. If we take the 144 that remain and spread them over 60 departments, that works out at 2.5 directorate officers per department over the three years. I would be very interested to hear details of any organization outside the Government that has taken on such increases in responsibility and activity -- if I may say so, at a profit -- with such a small relative increase.

MR LEE WING-TAT (in Cantonese): Mr Deputy President, I am most dissatisfied that in his main reply the Secretary considers acceptable the increase of 246 directorate posts, or 20% of the establishment, in the last three years. This figure definitely

far exceeds the overall growth of the Civil Service. Will the Administration inform this Council whether a value for money study has been conducted on directorate posts? If yes, what are the preliminary findings; if not, why not?

SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, value for money studies are carried out periodically in all areas of the Government -- not just the directorate -- and various proposals for reorganization are submitted to the Establishment Sub-committee of this Council. I still stand by my view that the figure at that level, compared with the 6 000 at the non-directorate level, is justifiable and has indeed been justified in the Finance Committee of this Council. It is interesting to look back over the years and look in terms of establishment. In 1981 and 1982 the annual growth rate overall was 8.32% and 9.62%. In the last two years, by deliberate efforts on the part of the Administration, we have cut that down to 0.3% and 1.48%. I am disappointed to hear the tone of criticism and not congratulations that we have been able to restrain the growth to those figures.

Written answers to questions

Criminal prosecutions

7. PROF FELICE LIEH MAK asked: Will the Administration inform this Council: 7. PROF FELICE LIEH MAK asked: Will the Administration inform this Council:

(a) how many criminal cases have been submitted by the police to the Att (a) how many criminal cases have been submitted by the police to the Att how many criminal cases have been submitted by the police to the Attorney General's Chambers (AGC) in the past two years with recommendations for prosecution; and

(b) of this number, in how many cases did AGC decide against prosecution? (b) of this number, in how many cases did AGC decide against prosecution?

ATTORNEY GENERAL: Mr Deputy President,

(a) Statistics are not kept on the number (a) Statistics are not kept on the number Statistics are not kept on the number of criminal cases that are referred of criminal cases that are referred by the police to the Attorney General's Chambers with recommendations for prosecution.

The information sought can only be obtained if individual case files over the past two years are examined. This would not be possible without incurring disproportionate costs.

(b) For the same reasons as given in (a), such statistics are not readily (b) For the same reasons as given in (a), such statistics are not readily available.

Membership of professional organizations in international bodies

8. MR PETER WONG asked: Will the Administration inform t 8. MR PETER WONG asked: Will the Administration inform t MR PETER WONG asked: Will the Administration inform this Council whether it will his Council whether it will take action to ensure that the membership of our professional organizations in their respective international bodies will continue after 1997; and if not, why not?

SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr Deputy President, many professional organizations in Hong Kong have established a variety of relationships with international bodies in their respective fields, including membership in these bodies. They shall continue to be able to do so after 1997, as permitted by the Joint Declaration and the Basic Law. How they wish to maintain their links with their related international bodies is primarily a matter for these organizations. We would, of course, be happy to facilitate the development of those relationships where we can.

Labels for environmentally friendly products

9. MR PETER WONG asked: Will the Administration inform this Council whether it has 9. MR PETER WONG asked: Will the Administration inform this Council whether it has any plans to award labels for environmentally friendly products?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, a review has recently begun of the possible means of assisting local manufacturing industries to comply with the proposals set out in the 1989 White Paper on the Environment which will affect them. As part of this review the possibility of setting up a scheme which would certify locally produced products as environmentally friendly (or produced in accordance with environmental legislation) will be assessed. Results are due in

March 1993. Generally, however, any planning for the award of labels for environmentally friendly products must recognize that many items sold in Hong Kong are wholly or partly manufactured overseas. The country of origin of imported products can change frequently as the market seeks the most economic sources of supply.

Redemption of land exchange entitlements

10. MR GILBERT LEUNG asked: Will the Government inform this Council: 10. MR GILBERT LEUNG asked: Will the Government inform this Council:

(a) of the total area of land involved in the unredeemed land exchange (a) of the total area of land involved in the unredeemed land exchange entitlements (Letters "A" and Letters "B") in the New Territories; and of this, how much is agricultural land and how much is building land;

(b) of the measures taken to expedite the redemption of the outstanding land (b) of the measures taken to expedite the redemption of the outstanding land exchange entitlements; whether a deadline will be set for the completion of the redemption process; and

(c) given that the redemption of such land exchange entitlements has been given that the redemption of such land exchange entitlements has been hindered by disputes in the rights of succession or various technical and legal problems connected with some of these entitlements or by the reluctance of the holders in realizing their entitlements, whether the Government will consider taking measures to ensure that all such entitlements are redeemed before 1 July 1997?

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

(a) The total area of unredeemed Land Exchang (a) The total area of unredeemed Land Exchang The total area of unredeemed Land Exchange Entitlements (Letters A and B) e Entitlements (Letters A and B) in the New Territories as at 31 March 1992 was:

Building Land -- Building Land -- 210 000 sq ft 210 000 sq ft

Agricultural Land -- Agricultural Land -- 5 270 000 sq ft 5 270 000 sq ft

(b) Under the present system of offering land for sale by Letters A/B tender and (b) Under the present system of offering land for sale by Letters A/B tender and taking into account the amount of land planned for disposal in this way in the next two years, it is expected that the vast majority of LEEs will be redeemed by mid-1994.

Measures to expedite the redemption process further are not being considered at present therefore. Nor is it intended that a precise deadline be set.

(c) The Administration will review the position in 1994 to determine how many (c) The Administration will review the position in 1994 to determine how many LEEs remain unredeemed and, if possible, why. It will consider what might need to be done in the light of its findings at that time.

Civil service pensions

11. MISS EMILY LAU asked: In view of the Chief Secretary's statement in this Council 11. MISS EMILY LAU asked: In view of the Chief Secretary's statement in this Council on 1 April 1992 that civil service pensions are "a statutory first charge on recurrent government revenue" and are "guaranteed in the Joint Declaration and Basic Law", will the Administration inform this Council:

(a) whether civil service pensions have priority over all other statutory cha (a) whether civil service pensions have priority over all other statutory charges on the general revenue;

(b) if so, what statutory provisions give such priority; and (b) if so, what statutory provisions give such priority; and

(c) whether there are any qualifications or reservations to the guarantee hether there are any qualifications or reservations to the guarantee referred to by the Chief Secretary?

SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, the replies to the questions are as follows:

(a)&(b) Civil service pensions do not have prior (a)&(b) Civil service pensions do not have prior Civil service pensions do not have priority over other statutory charges ity over other statutory charges on the general revenue. Unless specifically provided in law, there are no priorities. However the first call on the general revenue must be the payment of statutory charges and contractual obligations.

(c) Section IV of A (c) Section IV of A Section IV of Annex I to the Joint Declaration provides that the Hong Kong nnex I to the Joint Declaration provides that the Hong Kong Special Administrative Region Government shall pay all pensions and benefits due to pensioners on terms no less favourable than before and irrespective of the pensioners' nationality or place of residence. The same guarantee is embodied in Article 102 of the Basic Law. There are no known qualifications or reservations to this guarantee. Dredging and disposal of mud

12. MR FRED LI asked: Will the Government inform this Council: 12. MR FRED LI asked: Will the Government inform this Council:

(a) which of the A (a) which of the A which of the Airport Core Programme (ACP) projects require the dredging and irport Core Programme (ACP) projects require the dredging and disposal of marine mud and similar materials, and what the quantities involved in each of such projects are;

(b) whether the dredging will involve any contaminated materials; if so, what (b) whether the dredging will involve any contaminated materials; if so, what kinds of contaminants are involved and in what quantities, how and where the contaminated materials will be treated and disposed of;

(c) what alternatives have been considered in the planning stage to minimize the (c) what alternatives have been considered in the planning stage to minimize the dredging and the disposal of contaminated materials; and

(d) what measures will be taken to alleviate the environmental pollution caused (d) what measures will be taken to alleviate the environmental pollution caused during the dredging stage and the disposal stage?

SECRETARY FOR WORKS: Mr Deputy President,

(a) Of the 10 Airport Core Programme (ACP) projects, eight involve (a) Of the 10 Airport Core Programme (ACP) projects, eight involve Of the 10 Airport Core Programme (ACP) projects, eight involve the dredging the dredging and disposal of marine mud. The following are the projects, and the estimated quantities remaining to be dredged:

Project Quantity Project Quantity

(million cubic metres)

West Kowloon Reclamation 5 West Kowloon Reclamation 5

Central and Wan Chai Reclamation 1 Central and Wan Chai Reclamation 1

North Lantau Expressway North Lantau Expressway Expressway 6

North Lantau Development 10 North Lantau Development 10

Chek Lap Kok Airport 80 Chek Lap Kok Airport 80

Western Harbour Crossing 1 Western Harbour Crossing 1

Airport Railway 1 Airport Railway 1

Lantau Fixed Crossing 0.2 Lantau Fixed Crossing 0.2

(b) Of the eight projects requiring dredging, only two, West Kowloon Reclamation (b) Of the eight projects requiring dredging, only two, West Kowloon Reclamation and the Central and Wan Chai Reclamation, are known at this stage to involve contaminated materials.

The contaminants are primarily heavy metals, lead and copper in West Kowloon; mercury and copper in the Central and Wan Chai areas. The total quantity of contaminated mud is estimated to be 1.75 million cubic metres.

Contaminated mud will be disposed of by methods agreed with the Environmental Protection Department. The area designated originally for disposal is Deep Bay, but other possible locations are being considered. After the mud has been placed it will be capped with clean material.

(c) Recognizing that the dredging and disposal of any marine mud causes (c) Recognizing that the dredging and disposal of any marine mud causes environmental disruption, all reclamations are designed in such a way as to reduce to a minimum the total volume of marine mud to be removed, consistent with programming requirements.

The primary alternative to dredging is to leave the mud in place and to drain the mud using vertical wick drains. This alternative requires extra time for primary consolidation of the marine sediments to take place such that any further settlement will not exceed an acceptable limit. This alternative has been adopted when

programming requirements provide the necessary time for primary consolidation and settlement to take place.

(d) Potential environmental pollution during the dredging and disposal of otential environmental pollution during the dredging and disposal of contaminated mud is caused when the small percentage of the soluble part of total metals contained in the mud, is released through aeration and slurrying of the sediments during the process of dredging and dumping.

To control dredging, conditions are included in the contract to require the contractor to use the most appropriate dredging plant and method of operation to ensure that the pollution caused will be kept to a minimum. These conditions also

apply to non-contaminated mud to minimize the release of fine silt into the surrounding water.

Throughout the period of dredging and disposal, the conditions of the affected environment are closely monitored to ensure that they are within acceptable standards.

Fire retardants

13. MR HOWARD YOUNG asked: Will the Government inform this Council: 13. MR HOWARD YOUNG asked: Will the Government inform this Council:

(a) what regulations govern the use of fire retardants in government-owned pu (a) what regulations govern the use of fire retardants in government-owned public venues and government offices;

(b) whether the same regulati (b) whether the same regulati whether the same regulations apply to non-government public venues and ons apply to non-government public venues and offices and if not, what differences are there;

(c) what controls are there to ensure that fire retardants are safe to public (c) what controls are there to ensure that fire retardants are safe to public health and the environment and are applied in a safe manner?

SECRETARY FOR SECURITY: Mr Deputy President, under section 16(1)(b) of the Buildings Ordinance (Cap 123) the Director of Fire Services publishes a Code of Practice for minimum fire service installations and equipment. Compliance with this code is a requirement prior to issuance of an occupation permit by the Building Authority. Although government buildings are exempted from provisions of the Buildings Ordinance,

the code is applied equally to government and non-government buildings as a matter of policy. It requires the use of fire retardant products as linings for acoustic, decorative and thermal insulation in ductings, concealed locations and protected means of escape.

Furthermore, where combustible materials are used as false ceilings, draperies or curtains in places of public assembly licensed under the Public Health and Municipal Services Ordinance (Cap 132) or Places of Public Entertainment Ordinance (Cap 172), these items are required by the code to be treated with fire retardant

agents.

The required treatment must be certified by a fire service installation The required treatment must be certified by a fire service installation contractor registered under the Fire Services (Installation Contractors) Regulations (Cap 95), who is responsible for ensuring that fire retardant products are approved by the Fire Services Department and are used and applied properly.

Chemicals commonly contained in fire retardant agents are not hazardous to health or to the environment when properly used under normal conditions. Fire retardant agents are normally applied in the course of manufacturing. The manufacturing of fire retardant products is governed by industrial safety requirements under the

Factories and Industrial Undertakings Ordinance and Regulations (Cap 59), enforced by Labour Department.

Purchases in Hong Kong of property outside the territory

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

(a) whether in the past three years any complaints had been received from local (a) whether in the past three years any complaints had been received from local citizens about being defrauded in making purchase in Hong Kong of property outside the territory; if so, the number of complaints received each year and what the major grievances were;

(b) how these complaints were handled and what assistance was offered to the (b) how these complaints were handled and what assistance was offered to the complainants; and

(c) whether measures will be taken by the Government to assist members (c) whether measures will be taken by the Government to assist members whether measures will be taken by the Government to assist members of the public in preventing them from being defrauded, or from suffering losses caused by their ignorance, when making purchase in Hong Kong of property outside the territory?

SECRETARY FOR SECURITY: Mr Deputy President, the Commercial Crime Bureau (CCB) of the police have received complaints from local residents in the past three years

concerning purchases of property outside the territory. In 1989, 56 complaints were received against a property agent concerning the sale of property in the United States. In 1990, six complaints were received against an agent concerning the sale of property in Shenzhen. No complaints were received in 1991. All these complaints have been investigated and the CCB has concluded that there was no evidence of a criminal offence by the agent in Hong Kong in any case.

The major complaints made were that title deeds for purchased property were received late, or never received at all and that agents requested additional payments before the transfer of the title. Whenever the CCB receives such a complaint, it investigates the case to see whether any criminal offence is involved. As there was no evidence of any criminal offence in the cases investigated in 1989 and 1990, the complainants were advised to take appropriate civil action.

In order to try to prevent members of the public from being defrauded when purchasing property outside Hong Kong, we will of course uphold existing Hong Kong laws concerning crimes of fraud committed within Hong Kong. The Government is also discussing with representatives of the real estate agents means of enhancing standards of professionalism and consumer protection. But in the final analysis, those who wish to buy property, or make other major investments overseas, are well advised to ensure that they receive sound professional advice before making any final commitment.

Alternative modes of public transport

15. MISS EMILY LAU asked: Will the Government inform this Council what measures are 15. MISS EMILY LAU asked: Will the Government inform this Council what measures are taken to ensure the adequate provision of alternative modes of public transport running parallel to Mass Transit Railway (MTR) lines so as to provide the passengers with more options and to relieve the pressure on the MTR system?

SECRETARY FOR TRANSPORT: Mr Deputy President, as part of the measures to help relieve congestion along the MTR Nathan Road Corridor, alternative public transport services will be further strengthened.

Over the past three years, the number of franchised bus routes linking the New Territories and North Kowloon with destinations south of the MTR Prince Edward Station has increased from 114 to 140.

They include 14 express bus routes introduced in 1991, which provide air conditioned services direct to employment centres in Tsim Sha Tsui, Central and Wan Chai. Their service frequency and routing will be further improved in response to demand. This summer, eight more such routes will be added to give passengers more

options. Additionally, as in 1991, a fare reduction of 50 will be offered on all express cross-harbour routes during the summer to enhance their attractiveness compared with the MTR.

Over the next two years, we plan to introduce four new cross-harbour bus routes using the Eastern Harbour Crossing.

Peak hour services are supplemented by residential coaches serving the Yau- Peak hour services are supplemented by residential coaches serving the Yau-Tsim and Central areas. More such services particularly for the New Territories will be considered.

Measures have also been planned to encourage greater use of the KCR line south of Kowloon Tong by those KCR passengers who may otherwise switch to the MTR system. These comprise better feeder bus services between the KCR Hung Hom Station and Tsim Sha Tsui, and additional bus priority measures and stopping space at the toll plaza of the Cross Harbour Tunnel to speed up bus services to Hong Kong Island.

Finally, ferry services from Tuen Mun, Tsuen Wan and Tsing Yi to Central will be enhanced. Planned improvements this year include deploying a second double-deck air-conditioned vessel in June, more sailings during the morning peak, and extending selected trips to Wan Chai.

The long-term solution lies in building the Airport Railway by mid-1997, which will include both an express service to the new airport and a Lantau Line providing effective relief to the Tsuen Wan Line.

Civil service wastage

16. MR HENRY TANG asked: Will the Government inform this Council: 16. MR HENRY TANG asked: Will the Government inform this Council:

(a) how many civil servants in the upper and middle management ranks have left (a) how many civil servants in the upper and middle management ranks have left the service in the past three years, and of these, how many are Administrative Officers;

(b) which three u (b) which three u which three upper and middle management ranks suffer the most serious was pper and middle management ranks suffer the most serious wastage problem, and what their wastage rates are; and

(c) whether the wastage situation in the upper and middle management ranks has (c) whether the wastage situation in the upper and middle management ranks has affected the efficiency of the Civil Service?

SECRETARY FOR THE CIVIL SERVICE: Mr Deputy President, statistics on wastage in the Civil Service collected and compiled on a regular basis are by groups of salary points. A table of such statistics for the past three financial years is at Annex. The table shows the number of Administrative Officers who left the service, and the wastage rate for each group of staff.

As can be seen, the wastage situation has been improving. For all groups the wastage rate has been declining, and the overall wastage rate is stabilizing at around 5%. That being the case, the wastage situation should not have adversely affected the efficiency of the Civil Service.

Annex

Wastage by Salary Group

1989-90 1990-9l 1989-90 1990-9l 1990-9l 199l-925 199l-925

(Apr 9l-Jan92)

Number Rate3 Number Rate3 Number Rate Number Rate

DPS1 and 90 DPS1 and 90 8% 80 6.6% 57 4.4%

equivalent

MPS2 45-49 l63 MPS2 45-49 l63 l63 6.8% l5l 5.7% l50 5.2%

and

equivalent

MPS 34-44 835 MPS 34-44 835 6.5% 8l9 6.l% 536 4.9%

and

equivalent

Below 9 702 Below 9 702 5.3% 8 773 5.l% 6 858 3.9%

MPS 34

and

equivalent

l0 790(2l)4 5.8%(4.8%) l0 790(2l)4 5.8%(4.8%) 5.8%(4.8%) 9 823(l6) 9 823(l6) 9 823(l6) 5.2%(3.6%) 5.2%(3.6%) 5.2%(3.6%) 7 60l(l3) 7 60l(l3) 7 60l(l3) 4.0%(2.8%) 4.0%(2.8%) l. Directorate Pay Scale l. Directorate Pay Scale

2. Master Pay Scale 2. Master Pay Scale

3. Wastage rate = wastage during year as percentage of strength at beginning of year 3. Wastage rate = wastage during year as percentage of strength at beginning of year 4. Figures in brackets = wastage of Administrative Off 4. Figures in brackets = wastage of Administrative Off Figures in brackets = wastage of Administrative Officers

5. Figures do not include staff who left the Civil Service to join the Vocational 5. Figures do not include staff who left the Civil Service to join the Vocational Training Council and the Hospital Authority

Kennedy Town incinerator

17. DR YEUNG SUM asked: In view of the considerable air pollution caused by the K 17. DR YEUNG SUM asked: In view of the considerable air pollution caused by the Kennedy Town incinerator, will the Government inform this Council:

(a) whether there are plans to defer the closure of the incinerator; and (a) whether there are plans to defer the closure of the incinerator; and

(b) if so, for how long the closure will be deferred, why it is necessary to d (b) if so, for how long the closure will be deferred, why it is necessary to defer the closure, whether the delay can be shortened and what measures will be taken in the interim to mitigate the air pollution problem in the area?

SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr Deputy President, in the 1989 White Paper: Pollution in Hong Kong -- A time to act, the Government stated its intention to phase out the existing municipal incinerators as land-based disposal facilities are introduced to replace them. The Lai Chi Kok incinerator was therefore closed in late 1990, after the commissioning of the Kowloon Bay Refuse Transfer Station in

April 1990. In the May 1991 First Review of Progress on the 1989 White Paper, it was noted that the Kennedy Town incinerator would be closed after the commissioning of the Hong Kong Island East Refuse Transfer Station, scheduled for early 1993. It is still the intention that the incinerator -- which has been fitted with electro static precipitators to reduce the amount of particles entering the atmosphere - - should be closed as soon as practicable after the new RTS is commissioned and

provided that any wastes in excess of capacity of the RTS can be disposed of in an environmentally acceptable manner. The amount of such excess wastes, if any, and how they might be properly disposed of is now being examined by the Administration.

Governor's costume on public ceremonial occasions

18. MR MARTIN BARROW asked: Does the Hong Kong Government agree that the practice 18. MR MARTIN BARROW asked: Does the Hong Kong Government agree that the practice of requiring the Governor to wear a plumed hat and sword on certain public ceremonial occasions is anachronistic and no longer appropriate to the circumstances of Hong Kong; if so, will it advise the British Government accordingly?

CHIEF SECRETARY: Mr Deputy President, the new Governor will no doubt take into account views expressed about the appropriate style of dress which he should wear on public ceremonial occasions.

HKU's Paediatric Intensive Care Unit

19. DR CONRAD LAM asked: Will the Government inform this Council of the number of 19. DR CONRAD LAM asked: Will the Government inform this Council of the number of beds provided in the Paediatric Intensive Care Unit of the Faculty of Medicine, University of Hong Kong and whether all the beds of the Unit are in use; if not, what the reasons are; and what plan the Hospital Authority has to bring this Unit into full operation?

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, the Paediatric Intensive Care Unit of the Faculty of Medicine, University of Hong Kong at Queen Mary Hospital provides 46 beds upon full operation. A total of 42 beds are currently in use: 11 beds for intensive care and 31 beds for special care.

Opening of further intensive care beds will depend on clinical demand, overall Opening of further intensive care beds will depend on clinical demand, overall service co-ordination and deployment of resources. The present mix of hospital beds

is considered adequate to cope with prevailing demand.

Waste disposal

20. REV FUNG CHI-WOOD asked: With regard to the disposal of so 20. REV FUNG CHI-WOOD asked: With regard to the disposal of so REV FUNG CHI-WOOD asked: With regard to the disposal of solid wastes, will the lid wastes, will the Government inform this Council:

(a) whether there is any plan to levy charges on commercial firms producing such (a) whether there is any plan to levy charges on commercial firms producing such wastes; if so, what progress has been made;

(b) given that there has been a drastic increase in the volume of commerci (b) given that there has been a drastic increase in the volume of commerci given that there has been a drastic increase in the volume of commercial solid al solid wastes being disposed at the landfills in recent years, what plans are in hand on the part of the Administration to recycle such wastes so that demands on the landfills may be alleviated?

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

(a) Given the high cost of providing environmentally acceptable disposal (a) Given the high cost of providing environmentally acceptable disposal facilities clearly a case could be made for levying charges, on the polluter pays principle, for the disposal of solid wastes at landfills. Many administrations impose such charges in return for providing these or similar facilities. The Government is therefore considering the general feasibility of imposing such charges in Hong Kong, although its deliberations are at an early stage as yet. It is therefore too early to say whether charges will be levied on commercial firms for solid waste disposal. Because of the considerable increase in the amount of construction waste being disposed of in landfills recently, any scheme formulation is likely to give priority to the need to introduce charges for the disposal of construction wastes.

(b) Although apart from construction waste there has not been a drastic increase (b) Although apart from construction waste there has not been a drastic increase in the quantity of commercial waste being disposed of at landfills in recent years, it is nonetheless the Government's policy to encourage the recovery and recycling of wastes generally. There is already a substantial waste recovery industry in Hong Kong and, for example, most of the office paper wastes produced in the main office areas are recovered and exported for recycling. As regards the possibility of

recycling construction wastes, the Government is examining how the amounts of such waste presented for disposal at landfills can be reduced, and how such waste might

be recycled. It has already been agreed that, subject to funding, certain future reclamation projects should be brought forward to absorb construction waste by public dumping. At the same time, a pilot scheme to test the viability of a recycling plant for construction waste is in hand, and if this is successful, it may be put to more permanent and extensive use.

Statement

Updated figures for the 1991-92 surplus

FINANCIAL SECRETARY: Mr Deputy President, in my speech on 1 April concluding the debate on the Second Reading of the Appropriation Bill, I underlined the importance of maintaining healthy fiscal reserves, which we can draw upon if we encounter adverse economic and financial developments. At the same time, I explained that the forecast figure of $71 billion in 1996-97 was adequate for this purpose, and that I had no hidden agenda to build up the reserves even higher.

Updated figures for the 1991-92 surplus are now available as a result of the "first closing" of the Government's accounts. These indicate an additional surplus of more than $6 billion on top of the revised estimate.

Figures for the final closing of the Government's accounts will not be available until the second part of May. These may vary slightly from the first closing figures. But it is clear that we now have an unexpected windfall. I thought it proper both to inform Members of this, although the figures are not final; and since the change is so significant, to review my revenue proposals accordingly.

Looking at the five-year period covered by the Medium Range Forecast, and all Looking at the five-year period covered by the Medium Range Forecast, and allowing for interest on this additional surplus, our accumulated reserves by 1996-97 will be more than $7 billion higher than we had previously forecast -- and of particular relevance, $7 billion higher than the forecast available at the time of my Budget.

This development was not -- and could not have been -- foreseen, but it is very welcome nevertheless. It will enable us to continue with our planned increases in expenditure; to fund the proposed tax concessions; and to maintain an adequate "cushion" of reserves. At the same time it no longer seems necessary to raise additional revenue on the scale I had originally planned.

The amount of the resulting increase in our projected reserves is, as it happens, roughly equivalent to the amount which I had intended to raise by increasing rates by half of one percentage point. I am pleased to announce that, under these changed circumstances, the Administration does not need to proceed with an increase to the general rates poundage this year, assuming of course that the other revenue measures are agreed. For this reason, I will not be introducing into this Council a resolution to increase rates in the context of this Budget. Accordingly, appropriate

adjustments will be made to subsequent rates demands. Rates, as a stable and progressive form of taxation, will nevertheless continue to make an important contribution to general revenue.

The fact that we can now do without a rates increase is clearly good news to the public as well as to the Administration. Nevertheless, it raises the question of how the underestimation came about. There are two main reasons.

First, revenue from stamp duty, salaries and profits tax and first registration tax have been higher than expected, with the result that total revenue is $2.3 billion above the revised estimate.

Secondly, spending on public works is expected to be $3 billion below the revised estimate, as a result of further slippage in the capital works programme.

The difference between the first closing figure and the revised estimate figure The difference between the first closing figure and the revised estimate figure for revenue is only 2%. Revenue yields are affected by economic factors and cannot be precisely forecast. Recent activity in the stock market and relatively high property prices have, for example, contributed to the increased revenue from stamp duty.

By contrast, the slowness in identifying the magnitude of the underspending in public works is less readily understandable, and is a matter for concern. Although, in the long term, some of the underspending this year will be made up for in subsequent years as delayed projects are implemented, it is clearly unsatisfactory that we have been unable to predict the progress of our capital works programme with more accuracy. I have therefore asked the Secretary for the Treasury and the Secretary for Works to look urgently at how to improve our estimating techniques and procedures for the Public Works Programme, to ensure that in future years a more accurate picture of the situation emerges.

Although this windfall surplus will enable us to defer an increase in general Although this windfall surplus will enable us to defer an increase in general rates, I am also able to assure Members that this does not affect our determination to look at possible ways of resolving the problems faced by the "sandwich class". I stand by the assurances which I gave in my Concluding Speech on l April. That is, if our finances are in line with expectations, I plan another substantial increase in salaries allowances together with a review of tax bands. The Secretary for

Planning, Environment and Lands is also pressing forward with our examination of possible ways to alleviate the high cost of housing for the "sandwich class", and will produce recommendations by September this year.

Finally, the fact that we are fortunately now able to avoid an increase in general rates does not detract from the importance of maintaining the integrity of the remaining Budget measures. We can and must move forward with our carefully constructed package of concessions, as well as with the modest increase in profits tax, in order to be able to maintain our planned level of revenue and fund the expenditure approved by Members in the Appropriation Bill on 1 April.

Motion

BETTING DUTY ORDINANCE

THE FINANCIAL SECRETARY moved the following motion:

"That, with effect from 1 September 1992, section 6(1) of the Betting Duty Ordinance be amended -

(a) in paragraph (a), by repealing "10.5" and substituting "11.5"; and (a) in paragraph (a), by repealing "10.5" and substituting "11.5"; and (b) in paragraph (b), by repealing "17" and substituting "17.5"." (b) in paragraph (b), by repealing "17" and substituting "17.5"." He said: Mr Deputy President, I move the motion standing in my name in the Order Paper.

As I explained in my Budget speech on 4 March, the intention of this motion is to increase the duty rate on standard bets (win, place, double and quinella) from 10.5% to 11.5%, and that on exotic bets from 17% to 17.5%. The new rates will not come into force until the start of the next racing season, that is, 1 September 1992.

The Jockey Club has agreed to absorb the entire additional duty on exotic bets and half of the additional duty on standard bets. I do not anticipate any effect on the Club's buoyant turnover. The additional yield to revenue in 1992-93 will be approximately $390 million.

Mr Deputy President, I beg to move.

Question on the motion proposed, put and agreed to.

First Reading of Bills

ADMINISTRATION OF JUSTICE (MISCELLANEOUS AMENDMENTS) BILL 1992 LEGAL PRACTITIONERS (AMENDMENT) (NO. 2) BILL 1992

FIRE SERVICES (AMENDMENT) BILL 1992

IMMIGRATION (AMENDMENT) BILL 1992

AERIAL ROPEWAYS (SAFETY) (AMENDMENT) BILL 1992

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

Second Reading of Bills

ADMINISTRATION OF JUSTICE (MISCELLANEOUS AMENDMENTS) BILL 1992

THE ATTORNEY GENERAL moved the Second Reading of: "A Bill to amend the Criminal Procedure Ordinance, the District Court Ordinance and the Magistrates Ordinance."

He said: Mr Deputy President, I move that the Administration of Justice (Miscellaneous Amendments) Bill 1992 be read a Second time.

The Bill will remove the Attorney General's power to issue a nolle prosequi in The Bill will remove the Attorney General's power to issue a nolle prosequi in

respect of offences which can be tried only summarily. It will further provide a procedure whereby venue of trial may be changed between the Magistrates Court, District Court and High Court.

The Attorney General has a common law right to discontinue a criminal prosecu The Attorney General has a common law right to discontinue a criminal prosecution in the High Court by entering a nolle prosequi. He has similar statutory powers in the District and Magistrates Courts. A nolle prosequi terminates criminal proceedings, but does not operate as an acquittal, and proceedings may be recommenced afresh for the same offence.

The present Bill arises from the review of the nolle prosequi procedure to which I referred when answering a question on nolles prosequi in this Council on 18 January 1989.

In the light of that review, the Attorney General's power to terminate criminal In the light of that review, the Attorney General's power to terminate criminal proceedings by way of nolle prosequi is now exercised by me personally.

Furthermore, I now propose by clause 13 of the Bill to abolish the Attorney General's power to enter a nolle prosequi in purely summary proceedings. There are two reasons for this. First, it is already possible for the Prosecution to withdraw a summons with the court's leave prior to plea, and thereafter issue a replacement summons if necessary. Secondly, the public interest is better served by finality of proceedings rather than by permitting the Prosecution to preserve its position upon minor offences after plea. The proposed abolition will not apply to indictable offences being tried summarily.

As regards the circumstances in which I would consider using a nolle prosequi, As regards the circumstances in which I would consider using a nolle prosequi, I would place them into three broad categories. I emphasize, however, that the following is not intended to be exhaustive, and I intend to provide an indication only. The facts of individual cases are infinitely variable.

Firstly, where for humanitarian grounds, it would be oppressive to continue with a prosecution. This might arise where a defendant is terminally ill;

Secondly, where anticipated prosecution evidence is no longer available for the court, but where an acquittal is not warranted. This might arise where a prosecution witness has been intimidated to absent himself;

Lastly, where other proceedings render the current proceedings unnecessary, but again an acquittal is not warranted. This might arise where a defendant is due to be extradited on more serious charges.

The review also highlighted the current lack of statutory provisions to enable a case to be transferred to a lower or higher court after the emergence of new evidence showing that the offence is more or less serious than originally thought. Where this results in the scheduled court becoming inappropriate for the proceedings, the use of a nolle prosequi is currently the only method by which the proceedings may be terminated in one court and recommenced in another more appropriate court.

The nolle prosequi, however, is not an ideal tool for resolving an essentially simple procedural difficulty. The Bill will accordingly put in place specific provisions to enable change of trial venue.

The Bar Association and Law Society have been consulted and support the general principles of the Bill.

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

LEGAL PRACTITIONERS (AMENDMENT) (NO. 2) BILL 1992

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

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

The principal object of this Bill is to modernize and streamline the procedures laid down in the Legal Practitioners Ordinance for the discipline of solicitors and barristers. The present procedures are complex, cumbersome and time-consuming.

I would like to deal first with the main provisions in the Bill that affect solicitors. Clause 4 of the Bill will permit the Law Society Council to require a solicitor or his or her firm to produce files and documents for inspection. If the Council considers the solicitor to be unfit to practise, it can refer the matter to

the Solicitors Disciplinary Tribunal Panel, and suspend the solicitor from practice until the Panel has dealt with the matter. This is a useful, preventative power for the Council to act swiftly in appropriate cases in order to protect the public.

At present, for solicitors, trainee solicitors and employees of solicitors, a Disciplinary Committee Panel of senior solicitors is appointed by the Chief Justice. The Panel comprises over 200 solicitors. If a complaint is made to the Law Society Council, and the Council considers that the person's conduct requires investigation, then the Council may appoint a Disciplinary Committee to look into the case. The Committee, consisting of not less than three members of the Panel, investigates the complaint and makes such order as it thinks fit. The size of the Panel makes it too large to permit consistency of approach and the development of expertise in

disciplinary matters.

Clause 5 of the Bill would improve this procedure. It provides for the Clause 5 of the Bill would improve this procedure. It provides for the appointment by the Chief Justice of a Solicitors Disciplinary Tribunal Panel made up of up to 30 solicitors of over 10 years experience and 10 members of the public. The size of the Panel will promote consistency and experience in discipline matters. If the Law Society Council considers a complaint against a solicitor, trainee solicitor, or a solicitor's employee should be investigated, a Solicitors Disciplinary Tribunal will be selected from the Panel. The Tribunal will consist of two solicitors and one lay member. The Tribunal will investigate the complaint, and will have expanded disciplinary powers, including the power to impose a penalty of up to $500,000 against the solicitor.

In an amendment unrelated to discipline, clause 27 of the Bill will permit the In an amendment unrelated to discipline, clause 27 of the Bill will permit the Law Society Council to organize and administer its affairs more efficiently. The Council will be able to delegate its functions (other than its rule making power) to any person or to a committee of the Council, thereby enabling it to concentrate upon strategic and other major issues, leaving other persons or committees to carry out many of the administrative functions presently carried out by the Council.

I turn now to the provisions of the Bill relating to barristers. Under the I turn now to the provisions of the Bill relating to barristers. Under the present law, if a complaint is made to the Bar Council about the barrister's conduct, the Attorney General or the Bar Council may apply to the Chief Justice to appoint a Committee of Inquiry. If the Chief Justice is satisfied that the appointment is justified, a Committee is appointed. In due course, the Committee submits its report, including its findings of fact and law, to the Registrar of the Supreme Court. If

the Committee considers that a prima facie case of misconduct has been made out, it must send a further copy of the report, a transcript of evidence and any evidentiary documents to the Chief Justice. Where a report is sent to the Chief Justice, the Court of Appeal conducts a further hearing and imposes such penalty as it thinks fit. Under this procedure there are four separate occasions when to some degree or another, someone considers the complaint: the Bar Committee, the Chief Justice, a Committee of Inquiry and the Court of Appeal. The proceedings take a long time and involve a considerable duplication of effort.

The disciplinary procedures in the Bill for barristers parallel those for solicitors. Clause 19 provides for the Chief Justice to appoint a Barristers Disciplinary Tribunal Panel consisting of up to six Queen's Counsel, six practising barristers and five members of the public. If the Bar Council considers that a barrister's conduct should be investigated, a Disciplinary Tribunal will be chosen from the Panel. The Tribunal will consist of one Queen's Counsel, one barrister and one lay member. The Tribunal will investigate the complaint, and will have expanded disciplinary powers, including once again the power to impose a penalty of up to $500,000.

Mr Deputy President, I believe it is important to emphasize that the discipli Mr Deputy President, I believe it is important to emphasize that the disciplinary procedures for solicitors and barristers will be of substantial benefit to the public, as follows:

Firstly, the appointment of members of the public to Disciplinary Panels marks an important, progressive step for the profession, and is in accord with similar developments in other jurisdictions. It opens disciplinary matters to the public; the profession provides legal services to the public, so it is appropriate that the public should be able to participate in disciplinary decisions; Secondly, under clauses 5 and 19, if the Law Society or Bar Councils do not consider that a person's complaint against a solicitor or barrister merits investigation by its Disciplinary Tribunal, that person may apply to the Chief Justice to refer the complaint to the relevant Tribunal;

Thirdly, under clauses 7 and 21, if a Disciplinary Tribunal investigates a complaint and finds that the solicitor or barrister should be disciplined, it can order the return to the person of any fees or expenses paid in relation to the subject matter of the complaint.

The proposals in the Bill originate from the Law Society and the Bar Association and I am most grateful to them for the considerable time and effort they have devoted to working with the Administration to produce this Bill.

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

FIRE SERVICES (AMENDMENT) BILL 1992

THE SECRETARY FOR SECURITY moved the Second Reading of: "A Bill to amend the Fire Services Ordinance."

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

The purpose of the Bill is to amend the Fire Services Ordinance to make it clear that members of the Fire Services Department have the authority to board a vessel on the occasion of a fire or other calamity.

The opportunity is also taken to amend the definition of vessels to exclude warships so as to ensure consistency between the Fire Services Ordinance and the Shipping and Port Control Ordinance.

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

IMMIGRATION (AMENDMENT) BILL 1992

THE SECRETARY FOR SECURITY moved the Second Reading of: "A Bill to amend the Immigration Ordinance."

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

The aim of this Bill is to bring certain provisions of the Immigration Ordinance The aim of this Bill is to bring certain provisions of the Immigration Ordinance into line with the Bill of Rights Ordinance. Members are aware that the Immigration Ordinance is one of six pieces of legislation which, during a one year "freeze" period, have not been subject to the Bill of Rights. That one year period will end on 8 June.

The details of the Bill are set out in the explanatory memorandum. They relate mainly to powers of detention and to certain presumptions in the Ordinance.

The Bill amends or deletes certain provisions regarding the detention of Vietnamese refugees. These are no longer necessary as they have been made obsolete by the change in policy in June 1988, under which all refugees now live in open camps. Only those who are awaiting screening or have been found to be illegal immigrants are held in detention.

The Bill also amends presumptions in sections 17I, 17N, and 37K relating to the offences of employing illegal immigrants and of bringing them to Hong Kong by sea. I do not believe that the changes proposed will in practice make it harder to bring successful prosecutions. I can assure Members that these changes certainly do not mean that we are in any way relaxing our vigilance or our efforts to deter illegal immigration.

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

AERIAL ROPEWAYS (SAFETY) (AMENDMENT) BILL 1992

THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS moved the Second Reading of: "A Bill to amend the Aerial Ropeways (Safety) Ordinance."

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

The aim of the Aerial Ropeways (Safety) (Amendment) Bill is to give to the Secretary for Planning, Environment and Lands the power to make regulations on technical standards and related matters in respect of aerial ropeway safety. This power rests at present with the Governor in Council and the intention is that he should

no longer be required to consider such routine, technical matters. The power to make regulations for fees will, however, continue to lie with the Governor in Council. Mr Deputy President, I move that the debate on this motion be now adjourned.

Question on the adjournment proposed, put and agreed to.

INLAND REVENUE (AMENDMENT) (NO. 3) BILL 1992

Resumption of debate on Second Reading which was moved on 8 April 1992. Question on the Second Reading proposed.

DR HUANG CHEN-YA (in Cantonese): Mr Deputy President, today, we are to resume debate on the four revenue Bills which seek to give effect to the revenue-related proposals of the 1992-93 Budget. We shall first consider the Inland Revenue (Amendment) (No. 3) Bill 1992.

As we all know, taxation proposals affect the livelihood of the people, and are matters of great concern to the general public. As Members of this Council, we have the duty to see to it that they are appropriate, reasonable, and are in the interests of the community as a whole. As convener of the ad hoc group set up to study these four revenue Bills, I would like to report that it was in this spirit that the group conducted its deliberations and drew conclusions.

Turning now to the Bill proper, it seeks to give legislative effect to two taxation proposals, namely:

(a) to increase corporate profits (a) to increase corporate profits to increase corporate profits tax by one percentage point from 16.5% to 1 tax by one percentage point from 16.5% to 17.5%; and

(b) to increase the amount of personal tax allowances, including basic, married (b) to increase the amount of personal tax allowances, including basic, married persons, dependent parent, child and single parent allowances, provided under the Fourth Schedule of the Inland Revenue Ordinance.

As many Members of this Council have already analysed and discussed in detail these two major proposals at the Budget Debate, the ad hoc group did not attempt to go over grounds that had already been covered. We nevertheless sought procedural

clarification on how Members could indicate their possibly different positions on the individual clauses under this Bill and to allow Members to do so, we request you, Mr Deputy President, to direct the Clerk to call the numbers of the clauses pertaining to the two proposals separately at Committee stage.

Having reported the deliberations of the ad hoc group in respect of this Bill, I would now like to say a few words on my personal views on the two different proposals. The United Democrats of Hong Kong (UDHK) welcome the Financial Secretary's proposal of raising corporate profits tax by one percentage point for the current financial year. We have come to the view that raising the profits tax to 17.5% can increase the income for government coffers on the one hand, while on the other it will not dampen foreign investors' incentive to invest in Hong Kong. This is a benign revenue proposal. The UDHK in fact had made the same proposal well before the publication of the Budget. We may say that great minds think alike this time.

However, the UDHK does not agree to the proposal on the allowances for personal income tax, the basic personal allowance in particular. We find the proposal of increasing the allowance slightly from $41,000 to $46,000 hardly acceptable. We can hardly forget that this allowance was only perfunctorily increased by $2,000 during the last financial year, far below last year's inflation rate. Therefore, an increase of $5,000 in personal allowance for the current financial year can barely catch up with this year's inflation. But there is still no make-up for last year's difference. An allowance of only $46,000 implies that people earning an average of $3,800 monthly will have to pay salaries tax. How could one earning $3,800 make ends meet under the current high living index and soaring prices? And the Government is now taxing the salaries of this low income group. It is downright rubbing salt into their wounds. According to calculations done by the UDHK, $64,000 will make a reasonable level for the personal allowance for income tax. During the last several months, we have been lobbying the Government through various channels to revise the allowance to $64,000. Unfortunately, the Government turned a deaf ear to public opinion, reluctant to initiate an amendment. We wanted very much to move an amendment in this Council but only to have it rejected by the Governor. Eventually we resorted to lowering our demand in order to lobby the other Members of this Council to vote against the appropriation parts of the Budget, thus exerting pressure on the Government. Sadly it ended in vain as a result of the other Members' reluctance to co-operate. Consequently, the Bill before us today still has the unreasonable $46,000 written in it. Logically speaking, the 14 UDHK Members of this Council should vote against clause 4 of this Bill. However, if we voted against clause 4 and duly

succeeded, in the wake of our vain attempt to raise the allowance, then the Government would keep the allowance at last year's level, that is, $41,000. The public will then suffer even greater. Therefore, in the interest of the public, Members from the UDHK may only abstain when the clause is put to the vote later in order to express our dissatisfaction and opposition to clause 4 of the Bill. Nevertheless, on behalf of the UDHK, I should like to reiterate that we shall continue to fight for an increase in personal allowance during the year. Should the Financial Secretary refuse to increase substantially the personal allowance to a reasonable level in the next

financial year, the UDHK intends to continue to vote against the next Budget.

Finally, I welcome on behalf of the UDHK the Financial Secretary's intention to abolish the increase in rates. I am however dissatisfied with having to learn about this from the press this morning.

MR TAM YIU-CHUNG (in Cantonese): Mr Deputy President, criticisms of the Financial Secretary's maiden Budget Speech, since its presentation on 4 March, have been voiced in successive waves by various sectors of the community. Two most controversial points are the raising of personal allowance and the 0.5% increase of rates. The Financial Secretary has just now made a statement that the Government does nto need to proceed with an increase to the general rates because it has come by a windfall. Whatever the reason, it is a welcoming move which shows that the Government has heeded public opinion. No response, however, has been made in respect of personal

allowance.

I trust that the Government is well aware of the strong public discontent with I trust that the Government is well aware of the strong public discontent with the negligible increase of personal allowance. If it is raised to merely $46,000, then someone earning a monthly salary of $3,800 is already liable to pay tax. I believe most employees will be caught in the tax net. The Financial Secretary said in his Budget Speech that the raising of personal allowance will result in 120 000 people getting off the tax net. However, suppose these people receive a pay rise this year, then they will still be drawn into the tax net. It can be seen therefore that the proposal is not able to bring tax relief to the people after all. On the contrary, it will increase, in particular, the burden on the lower class. The working class have commonly experienced negative growth in terms of pay in recent years as a result of sustained high inflation. The public resentment is well expected with the Government being so unsympathetic to their predicament and refusing to lessen their financial burden. I am deeply disappointed to see that the Government has continued to cling to its obdurate course, taking no heed of the opposition voiced

by the whole community.

It is for this reason that I decided to vote "no", but it does not mean that I wish to maintain personal allowance at the $41,000 level. Indeed, I have written to the Financial Secretary to ask him to raise personal allowance to $65,000. I vote "no" because the Government has failed to take account of the real needs of the

grassroots in the formulation of the Budget, and more importantly, because I want to protest against the Government's refusal to accept the amendments to the Budget made by me and other colleagues. The Financial Secretary has undertaken to significantly raise personal allowance in the Budget next year. I hope the Government can keep its word and realistically reduce the tax burden of the grassroots.

Mr Deputy President, with these remarks, I oppose the motion.

MR RONALD ARCULLI: Mr Deputy President, I would like to take this opportunity to place on record the disappointment of the Co-operative Resources Centre over the lack of action by the Financial Secretary on CRC's proposal for the increase of personal allowance from the proposed $46,000 to $50,000 and the widening of the tax band from $20,000 to $30,000 for the financial year 1992-93. CRC believes that this proposal is not only fair and realistic but clearly affordable by the public purse in view of the healthy surplus for 1991-92 as well as the projected surplus for 1992-93. If history is anything to go by -- and we have seen it this afternoon -- the actual surplus for 1992-93 will probably be more than the estimated $5.1 billion. The rationale behind CRC's proposal was simple. We believe that today is the time to help the

sandwich class. However, in view of the Financial Secretary's reluctance, CRC therefore decided to oppose the proposed increase in rates from 5.5% to 6% as this would have given a measure of relief to the sandwich class. It was not the best way to help them but it was the only way that would have been open to us this year. It is really therefore with mixed feelings that these objectives have been achieved by the additional huge surplus of over $6 billion over and above the announced $14 billion.

Mr Deputy President, I believe that this must also be an opportune time to ad Mr Deputy President, I believe that this must also be an opportune time to advise the Financial Secretary and his team that CRC intends to put forward proposals for the 1993-94 Budget. We naturally hope that this process will not be a one-way street leading to a roundabout but will result in a meaningful discussion and, ultimately perhaps, agreement.

Mr Deputy President, with these remarks, CRC reluctantly takes the bird in hand that is offered by the Financial Secretary but certainly we propose to go after the two or more in the bush in the next financial year. In view of the Financial Secretary's decision not to proceed with the rates proposal, we at CRC shall take it as a sign that Budgets are not therefore sacrosanct.

MR FREDERICK FUNG (in Cantonese): Mr Deputy President, in today's debate on the Inland Revenue (Amendment) (No. 3) Bill 1992, I would like to speak on the issues of profits tax and personal allowance. The gap between the rich and the poor is accentuating in Hong Kong; according to the latest Gini Co-efficient, we are in fact experiencing the worst wealth gap in 20 years. The Government can build in a mechanism of wealth distribution through its tax system to readjust the gap between the rich and the poor. The adjustments made in the new Budget can be said to have taken no heed at all of the social instability and the worsening of the wealth gap, which may result; I have to express my regret over this.

First of all, the increase by one percentage point of the profits tax, from 16.5% to 17.5%, is too moderate. As we all know, even with the increase by one percentage point of the profits tax, Hong Kong has still the lowest profits tax rate among the four little Asian Dragons. The profits tax rate is 33% in Singapore, 25% in Taiwan, 30% in South Korea; Japan, which is the most developed country in Asia, actually has a profits tax of 41%, more than twice that of Hong Kong. In the context of the

worsening wealth gap in Hong Kong today, it goes without saying that the social commitment of the big capitalists and businessmen must be increased because they have been able to reap rich rewards over the past 10 years of flourishing economic development. Indeed, in 1984, the Hong Kong Government even made a point of reducing the profits tax by 2 percentage points from 18.5%, in order that the businessmen could make more profit while at the same time reducing their social commitment. In comparison, the general public has to live with not only the unfair progressive rate of taxation, but also the skyrocketing property prices and the huge living expenses of high inflation. In return for their tax contribution, Hong Kong people are only able to have an old age allowance which is barely enough for subsistence; youth services are cut back instead of being expanded. Even the fondest Chinese dream of having a humble home and a job is not readily realizable. One is apt to ask if that is fair reward for what one pays. Is the policy regarding capitalists and big business men fair in the light of the Government being the agent of the community

as whole? My experience tells me that the answers to these questions are in the negative. The cutbacks on social welfare spending will mean that the average taxpayer will not be able to enjoy commensurate rights in terms of the use of social welfare services, such as medical care and housing services and retirement benefits. In particular, the standard tax rate offers the least benefits to the middle income earners who are subject to the heaviest tax rate of 25%. If one looks at the way the Government treats the capitalists, what will spring into view will be the grand port and airport projects costing hundreds of billions of dollars. The businessmen, the consortia and the developers are the first to be generously rewarded in the form of profits. The increase of the profits tax by one percentage point will only add $1.6 billion to the government coffers. That is peanuts to Hong Kong businessmen. No wonder then that even developer Mr LI Ka-shing has publicly supported the profits tax increase, stressing that the one percentage point increase is the right way to go. But the increase is still too small.

The Hong Kong Association for Democracy and People's Livelihood, to which I belong, has studied the Hong Kong Budgets of the past several years and made suggestions to the relevant government departments. The Association published early this year a report on tax reform and people's livelihood in the 1990s. We suggested that a three-tier system be adopted for calculation of profits tax such that a 16.5% tax rate applies to corporate profits under $5 million, an 18% tax rate applies to corporate profits between $5 million and $50 million, and a 20.5% tax rate applies to corporate profits above $50 million. This will effectively add $3 billion to the government coffers without changing the status of Hong Kong as a low tax haven. I regret that this suggestion has not been accepted. The Association and myself will continue our lobbying in anticipation of next year's Budget until the Government adopts a more equitable tax system.

I would like to move on to comment on the cosmetic raising of personal allowance. The increase of a mere $5,000 is not going to help at all with the prevailing double digit inflation and the steady erosion of the quality of life for the common people. It is disappointing that the Government has not given any reasonable support, by raising personal allowance more reasonably to $64,000 for example, to workers whose real wages have fallen by 1%. I consider the taxation policy insensitive and

irresponsible which makes a worker whose wages come to a monthly $4,600 fall into the tax net; this is an extra burden to the poor man who already has difficulty making ends meet. It bodes ill for the people whose Government should endorse such a policy. I hope the Government will, in formulating its policy, take into account the real

conditions of the people and give priority consideration to their views. For otherwise its mandate and acceptability will be even more seriously challenged.

I feel very embarrassed about and dissatisfied with the voting mechanism. Much as I resent the two proposals made by the Government, I am not able to make amendments to them. If I vote "no", the result may be we would end up with a worse deal than the government proposals offer. If I vote "yes", it would seem that I support the government proposals, which I do not. But what can I do? Under these circumstances, I can only abstain from voting altogether, because I think the voting mechanism is itself flawed.

Thank you, Mr Deputy President.

MR FRED LI (in Cantonese): Mr Deputy President, I think it should be the time now for Meeting Point to state its position on the tax legislation. First of all, I fully support, and wish to thank the Financial Secretary for, the withdrawal of the 0.5% rates increase. I hope he will be able, given our enormous surplus, to lighten the tax burden of Hong Kong people in his next Budget.

We, the three Meeting Point Members in this Council, fully support the increase We, the three Meeting Point Members in this Council, fully support the increase of corporate profits tax by 1%, which incidentally was what we proposed in the first place. The 1% increase of corporate profits tax and the raising of personal allowance by $4,000 are at first glance an attempt to have the tax burden more equitably shared. But in practical terms, we do not think that this goal has been achieved. Since the early 1980s the proportion that profits tax constitutes of the gross tax revenue has been diminishing while that represented by the salaries tax has been on the increase. That is to say, relatively speaking, while the capitalists are paying less tax, the salary earners are being made to pay more. The proposed adjustments are not enough to change the existing trend. The Financial Secretary's proposals to increase

corporate profits tax and raise personal allowance have not changed the increasingly unfair distribution of the tax burden between capitalists and salary earners. This is an issue which we think the Financial Secretary should address.

The declining proportional contribution of corporate profits tax to the gross The declining proportional contribution of corporate profits tax to the gross direct tax revenue is indicative of a misguided government policy on the one hand, and serious tax evasion on the other. It also reflects the fact that it is getting more and more difficult to collect profits tax as Hong Kong's economic structure is

undergoing transformation, and the only victims of this system are the salary earners.

We feel that this Budget in its dealing with the issue of tax burden has failed to provide us a clear picture of the relative tax burdens of the various social classes. I appeal again that the Financial Secretary, and the Government as a whole, should conduct a comprehensive review of the existing tax system, particularly the issues of tax base and relative tax burdens. With regard to this year's Budget, Meeting Point had proposed that personal allowance be adjusted upward to $60,000; it is

unfortunate that the Government only raised it to $46,000. Meeting Point Members, Mr TIK Chi-yuen, Mr WONG Wai-yin and myself, will abstain from voting on the issue of amending the salaries tax; we will neither support nor oppose it. Although we have tried hard to propose amendments, they have not been approved by the Governor. Therefore, we have no alternative but to abstain. Regarding the raising of the

profits tax by 1%, we will support it.

Thank you, Mr Deputy President.

4.20 pm

DEPUTY PRESIDENT: I understand that some Members would like a short break to consider the Financial Secretary's statement. I would therefore take a 15-minute break before calling on the Financial Secretary.

4.41 pm

DEPUTY PRESIDENT: Council will resume.

FINANCIAL SECRETARY: Mr Deputy President, first, may I put on record my appreciation for the hard work of the ad hoc group on all the Budget related Bills, chaired by Dr HUANG.

I am pleased that there has been support for my proposal for a 1% increase in Profits Tax payable by corporations. This increase will yield a significant amount in revenue terms -- $1.6 billion in a full year.

I do not believe that this modest increase will blunt our competitiveness as a business and financial centre. The new level is still low by any international standard, and indeed, lower than it has been in Hong Kong in some previous years.

Mr Deputy President, I turn now to clause 4 of the Bill, which proposes signi Mr Deputy President, I turn now to clause 4 of the Bill, which proposes significant increases in Personal Taxation Allowances. I understand the position of those Members who would like to see increases on an even more generous scale. But I can only emphasize once again that Personal Allowances since 1980 have kept pace with inflation, and that it is our intention to ensure that they continue to do so over time. It is also worth repeating yet again that over half of our working population now pays no Salaries Tax at all, that only a very small number indeed pay at the standard rate, and that that standard rate is itself one of the lowest in the world. That said, I have given assurances about my positive attitude towards increasing tax allowances and tax bands in my next Budget.

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).

DUTIABLE COMMODITIES (AMENDMENT) BILL 1992

Resumption of debate on Second Reading which was moved on 8 April 1992. Question on the Second Reading proposed.

DR HUANG CHEN-YA (in Cantonese): Mr Deputy President, the Bill before us contains four separate revenue proposals. I would like to deal with these proposals one by one, reporting briefly on the deliberations of the ad hoc group on each of them.

The first proposal concerns the abolition of duty on soft drinks, about $0.12 on a 200 ml can or $0.20 on a 375 ml can. The ad hoc group was concerned whether the removal of his duty would benefit consumers. The Administration advised the group that they had received detailed assurances from the Beverage Manufacturers Association that they would fully comply with the guarantee they made prior to the

introduction of the Bill to pass on the benefit to consumers. The ad hoc group also received a letter from the President of the Beverage Manufacturers Association advising that their members had immediately reduced wholesale prices the day after the Financial Secretary's Budget Speech, and their research showed that supermarkets, convenience stores and other major outlets handling approximately 75% of retail sales had reduced their prices. It was also explained to the group that reduction of wholesale prices would help to restrain the smaller retailers from increasing their prices, thus benefiting the consumers. The ad hoc group was glad to note these assurances from the Administration and the Beverage Manufacturers Association, but some Members still had reservations on how it could be ensured that the tax concession would be duly reflected in retail prices, given Hong Kong's free market economy and the variety of factors that would affect pricing.

Notwithstanding, there was general consensus amongst the ad hoc group that the Notwithstanding, there was general consensus amongst the ad hoc group that the duty on soft drinks was inappropriate when it was first introduced as a temporary revenue measure some years ago, and its effects were inflationary. In this regard, the abolition of the duty on soft drinks is welcomed.

The second proposal in the Bill concerns the increase of duty rates on liquor, tobacco and fuel. The ad hoc group has no special views on the proposed adjustments which are basically inflation-related.

The third proposal concerns the imposition of duty for light diesel oil used by The third proposal concerns the imposition of duty for light diesel oil used by pleasure crafts. The ad hoc group received a number of submissions on this proposal from interested organizations. These submissions object to the proposed revenue measure on the grounds that it would deal a severe blow to the boat industry as well as boating activities as a sport in Hong Kong. They also raise the question of

effective collection and policing. The submissions also include a request from a certain organization for exemption from the proposed duty for vessel owners who use their pleasure crafts for commercial hire, pending the outcome of a review on local crafts conducted by the Administration.

The ad hoc group noted that the levy of duty on light diesel oil used by pleasure crafts is in line with international practice. The number of diesel oil-driven pleasure crafts in the past was small, now that the number of such crafts has increased to match the number driven by petrol, it is considered fair that they be taxed in the same way. The Administration also explained that the use of pleasure crafts for commercial hire is an improper practice. To ply for hire, the crafts should be

licensed as launches under separate criteria and if so, they would not be affected by the current proposal. The ad hoc group was assured that revenue from this source could be collected cost effectively, and a marking system to identify duty paid light diesel oil could be introduced for policing purpose should the need arise. With these clarifications from the Administration, the ad hoc group is supportive of this part of the Bill.

In the course of discussion, the ad hoc group noted that there might be difficulty for Chinese junks plying for hire to apply for launch registration due to the definition in the existing law for launches to be European-styled. The Administration was asked to look into this anomaly and consider suitable remedies. We are deeply concerned about the amendment to be made to the Ordinance by the Government.

The last proposal concerns exemption of duty on diesel fuel used by franchised The last proposal concerns exemption of duty on diesel fuel used by franchised bus routes. The exemption will cover routes of KMB, CMB, New Lantau Bus Company and City Bus, as well as KCRC Services operating within the Northwest Transit Service Area. The Administration assured Members that the respective bus companies had

confirmed that they would pass on the benefits to consumers in their fare adjustment consideration in the coming year. To enable the New Lantau Bus Company which operates a franchised service during only part of the day to benefit from this concession, the Administration will be moving a technical amendment at the Committee stage. The ad hoc group sees no problem with this amendment.

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

FINANCIAL SECRETARY: Mr Deputy President, may I again express my gratitude to Dr HUANG Chen-ya's ad hoc group. This particular Bill, although simple in concept, involves a number of complex technical points on which our exchanges with the ad hoc group were particularly useful. I am pleased that, subject to a minor technical amendment which I shall be moving later this afternoon, the ad hoc group has agreed to give this Bill its support.

It may be worth briefly rehearsing the purposes of the Bill. First, it will result in the abolition of duty on soft drinks. I can reassure Members that the Beverage Manufacturers Association of Hong Kong have given me a written undertaking, which has been copied to the ad hoc group, confirming clearly their earlier assurances that the full benefit of this concession will be passed on to consumers.

Secondly, the Bill will mean that duty will in future have to be paid on light diesel oil used by pleasure craft. Although petrol used by pleasure craft is already subject to duty, a large number of pleasure craft are now able to use duty free diesel fuel. The ending of this inequitable distinction will bring a useful increase to general revenue.

In response to Dr HUANG, I can confirm that vessels which are legitimately registered as launches will not be affected by this measure. They will be able to continue, as at present, to use duty free fuel. Boats intended for hiring out are not allowed, under the law, to register as pleasure craft.

Finally, the Bill will also exempt franchised bus companies completely from duty Finally, the Bill will also exempt franchised bus companies completely from duty on diesel fuel. Under the schemes of control, this concession will automatically be reflected in future bus fares.

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).

STAMP DUTY (AMENDMENT) (NO. 3) BILL 1992

Resumption of debate on Second Reading which was moved on 8 April 1992. Question on the Second Reading proposed.

DR HUANG CHEN-YA (in Cantonese): Mr Deputy President, the Bill seeks to give legislative effect to two revenue-related proposals, namely the extension of the application of stamp duty to the sale or transfer of covered warrants, and the reduction of stamp duty on stock transfer from 0.5% to 0.4%.

The ad hoc group formed to examine the Bill has no special views on the first

proposal the justification for which is that it is a logical extension of our existing tax system on securities trading.

The ad hoc group sought clarification from the Administration on the rationale for the second proposal and the effect that it would have on the market. The Administration explained that it is a trend for major countries to abolish stamp duty on securities transactions: Singapore has abolished the transfer stamp duty at the end of 1991 and the United Kingdom has scheduled to do so by 1992, and there are very strong calls from within the industry for the proposed and even further concessions to help maintain the competitiveness of Hong Kong's securities market. The Administration advised that it is not the Government's policy to abolish stamp duty in Hong Kong at this stage, and while the proposed reduction by 0.1% may not have an overwhelming effect on the market, it would nevertheless serve as a message to the market that the Government recognizes the trend and is prepared to render assistance to the further development of the market. Having considered the explanations and the information on comparative transaction costs for investors on trading Hong Kong stocks provided by the Administration, the ad hoc group is satisfied that the proposed reduction in contract notes rate is a step in the right direction.

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

MR CHIM PUI-CHUNG (in Cantonese): Mr Deputy President, the Financial Secretary has proposed to reduce the rate of stamp duty by 0.1%, from 0.5% to 0.4%. In other words, both buyer and seller will pay the rate of 0.2% instead of the existing rate of 0.25%. This is welcome news to the industry. However, the ad hoc group failed to have a proper grasp of the situation. I regret I did not join the group.

The Financial Secretary has clearly stated in his reply to the ad hoc group that this is an international trend and that Hong Kong as a financial centre must follow this trend. In other words, the stamp duty on stock transfer will in fact be reduced to zero eventually. The Financial Secretary has made it clear in his reply that some of the Hong Kong stocks are listed in both the United Kingdom and Singapore. If Hong Kong does not abolish the stamp duty or reduce it to a minimum rate, then some of the trading activities with regard to the local stocks will be conducted in these two places. That is to say, Hong Kong's position as an important financial centre will be undermined. I am very pleased that the ad hoc group has finally come round to this view. I just wish to pass on this message to my colleagues today, and I hope

they will understand that the intention is to reduce stamp duty to zero next year, or maybe the year after next, but certainly in less than four years, so that nobody has to raise objection in the next financial year. I hope that the Financial Secretary will proceed towards this goal as soon as possible. The revenue from stamp duty is merely a little over $1 billion. And Hong Kong stands to gain far more than that in other areas if it is able to maintain its leading position in the world.

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

FINANCIAL SECRETARY: Mr Deputy President, the main purpose of this Bill is to reduce from 0.5% to 0.4% the rate of stamp duty on contract notes. This represents the continuation of a gradual reduction in the duty on stock transfers, essential if we are to maintain the competitiveness of Hong Kong's securities market. The further reasoning behind this proposal has been well summarized in the previous two speeches.

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).

ENTERTAINMENTS TAX (AMENDMENT) BILL 1992

Resumption of debate on Second Reading which was moved on 8 April 1992. Question on the Second Reading proposed.

DR HUANG CHEN-YA (in Cantonese): Mr Deputy President, the Entertainments Tax on cinema tickets dates back to the year 1930, more than half a century ago, when going to cinemas was a much less common form of pastime than it now is, and perhaps more of a luxury. The Bill seeks to give legislative effect to abolishing this tax which accounts for about 9% of the cost of a normal cinema ticket.

When the Financial Secretary moved the Bill in this Council on 8 April, he said When the Financial Secretary moved the Bill in this Council on 8 April, he said

that assurances had been received from Hong Kong's two largest cinema operators that the full benefit of this concession would be passed on to cinema-goers. But the operators have yet to lower the prices. The ad hoc group asked the Administration how it could be ensured that this would be generally followed in the industry and that there would be no backsliding. The Administration advised that after further negotiations with the representatives of Hong Kong's leading cinema chains, cinema operators had reversed an earlier decision to proceed with a 15% increase in cinema admission prices at the end of June 1992. Furthermore, the Administration would continue to negotiate with the Theatre Association to ensure that all or nearly all cinemas follow the lead set by the major operators.

Apart from the question of ensuring that the tax concession would benefit the consumers, the ad hoc group considered whether the tax, or its abolition, was in fact justified. The group noted that an important underlying reason for the abolition of the tax was that it was outdated and inflationary, and it could hardly be argued why a person should be required to pay a tax for seeing a film at the cinema, but not when he saw the same film on video at other places. In view of this, the ad hoc group concluded that the abolition of entertainments tax on cinema ticket is an

appropriate measure. I should like to mention in passing that the United Democrats of Hong Kong are very much dissatisfied with the cinema operators' reluctance to lower the ticket prices immediately and bagging the concession instead. Therefore we shall keep in close view whether they will honour their promise of freezing the prices for a year.

With these remarks, I support the Bill both as convener of the ad hoc group and With these remarks, I support the Bill both as convener of the ad hoc group and in my personal capacity.

FINANCIAL SECRETARY: Mr Deputy President, again, I am grateful that the ad hoc group has decided to support this significant tax concession which will directly benefit ordinary households.

I fully share the concern expressed by Dr HUANG that the benefit of this concession be passed on to consumers to the maximum extent possible. He has outlined what has been achieved in this respect. And I confirm our intention to monitor the situation. I am pleased to say that the Theatre Association has decided not to proceed with a 15% increase in cinema admission prices originally planned for the end of June 1992. This will mean a saving to consumers in excess of the value of the abolition of the

Entertainments Tax, which is charged at 10%. I have been assured by representatives of the Association that all or nearly all cinemas will follow the lead set in this regard by the major cinema operators, which have agreed to refrain from any price increase in cinema tickets for a full year. We will be looking both to the Consumer Council and to the Commissioner of Inland Revenue to monitor the situation.

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). MEDICAL REGISTRATION (AMENDMENT) BILL 1992

Resumption of debate on Second Reading which was moved on 29 January 1992. Question on the Second Reading proposed.

MR MARTIN BARROW: Mr Deputy President, as convenor of the ad hoc group set up to study the Medical Registration (Amendment) Bill 1992, I should like to say a few words about the significance of the Bill, the deliberations of the group, and its meetings with interested parties.

At present, the Medical Registration Ordinance provides only that a holder of a Hong Kong diploma, a holder of a United Kingdom, Irish or recognized Commonwealth diploma, or licentiate, may be registered to practise medicine in Hong Kong. While the law is intended to serve the community as a whole, it has become apparent over the years that there are some needs for medical service which are either being met at the expense of other services or not being met adequately. This is a long-standing problem about which some Members and I have spoken in this Chamber on several

occasions.

The Medical Registration (Amendment) Bill offers a solution and gives the Medical Council discretion to grant limited registration to doctors with overseas qualifications which are not registerable here but which may be accepted for a prescribed purpose. These doctors can then practise conditionally in Hong Kong to meet medical needs not adequately met.

In the course of examining the Bill, the ad hoc group met with the Medical Co In the course of examining the Bill, the ad hoc group met with the Medical Council of Hong Kong, the Hong Kong Medical Association, and the British Medical Association (Hong Kong Branch). They were concerned that the proposal could lead to a flood of foreign doctors seeking admission, causing the Medical Council to be inundated with applications and appeals. They also sought to pre-define the special needs before applications were invited. The ad hoc group also met with the Administration which considered that in the interests of the community the Bill should cater for all medical needs not adequately met. The Administration was insistent that operation of the scheme should be open and transparent; there must also be scope for both the Medical Council to determine needs and for special groups, organizations or individuals to make representations. The Administration believed that to this end, the Medical Council should be given free, full and unfettered discretion.

As a result of discussions with the ad hoc group, the Administration and the As a result of discussions with the ad hoc group, the Administration and the Medical Council have agreed that:

(a) Limited registration should cater for all medical needs not adequately met. (a) Limited registration should cater for all medical needs not adequately met.

(b) To protect the Medical Council from inundation by opportunistic applicati (b) To protect the Medical Council from inundation by opportunistic applications, the Medical Council will determine and promulgate the type of employment which it considers appropriate or necessary for limited registration. Applications will then be invited.

(c) There should be scope for organizations or individuals to put to the Medical (c) There should be scope for organizations or individuals to put to the Medical Council a case for special needs.

(d) The Medical Council should be given free, full and unfettered discretion, (d) The Medical Council should be given free, full and unfettered discretion, and the scheme operated with transparency and with an avenue for appeal and review.

And finally, doctors granted limited registration should be subject to the same penal and discretionary provisions as other doctors covered by the Medical Registration Ordinance.

The majority of members of the ad hoc group support the revised proposal. The Committee stage amendments, which I will later move, will give effect to this consensus, and I would like to emphasize that the Bill, with these amendments, has the support of the Medical Council.

Mr Deputy President, limited registration has been a subject of discussion for close to five years. Hong Kong, being a caring community, should not ignore the needs of any group for adequate medical care. The Bill before this Council is a fair, just and equitable piece of legislation. It balances both community interests and

professional considerations. It will give the Medical Council the responsibility and the ability to meet the medical needs of our community. In this respect it represents a sensible evolution in the regime for medical registration. I hope Members will share these views and support the Bill.

Finally, I must thank my colleagues on the ad hoc group for their careful Finally, I must thank my colleagues on the ad hoc group for their careful consideration of the Bill. On their behalf I also thank the Administration for proposing this much needed change to the Ordinance, and all the parties concerned for their willingness to co-operate with one another in the general interest of our community.

Mr Deputy President, with these remarks and subject to the Committee stage amendments which I will shortly move, I support the Bill.

DR LEONG CHE-HUNG: Mr Deputy President, on behalf of the medical profession, I rise to oppose this Bill. To start with, I would like to declare my interest as the President of the Hong Kong Medical Association and also as a member of the Medical Council.

The most important criteria for allowing a doctor, and indeed a member of any The most important criteria for allowing a doctor, and indeed a member of any profession, to practice are "needs and standards". Where there are genuine needs steps should be taken to address these shortfalls. And as those involved in health care deal with lives, it is paramount that the standard and integrity of the profession are maintained at all times.

It is therefore grossly erroneous if the criteria for admission to practise medicine in Hong Kong is relaxed for no other reason than to please international investors. In bowing to this type of foreign political pressure, "standards", in the mind of the Administration, seemed only to play second fiddle. What this Bill demonstrates is the Government's wilful blindness to the views of the medical profession. Professional autonomy was the very thing the nine professional bodies fought to have enshrined in the Basic Law and I am sure it is still the same issue

in their mind.

Mr Deputy President, the rules governing admission to practise medicine in Hong Kong is, as it stands at this present moment, very open-minded when compared with other professions in Hong Kong, and certainly when compared with the closed shop practice elsewhere in the world. Irrespective of nationality or residency, we allow doctors to practise in Hong Kong if they can meet our examination and standard

requirements.

That means any bona fide medical graduates, even though they are not residents of Hong Kong, can fully register to practise provided they have passed the qualifying Licentiate examination which asks only for a minimal acceptable standard. In addition, if there is a demand for a special skill in the Government, in the universities or in the Hospital Authority, those possessed with the special skills are granted the "deemed registrable" status. In terms of leeway, therefore the registration of medical personnel of all sectors is quite adequate.

The Bill before us seeks to introduce the new category of "Limited Registration" in the Medical Registration Ordinance, thereby allowing certain groups of doctors to practise in Hong Kong for a confined period. The Administration's reasons for tabling this Bill are to allow volunteer non-registrable doctors to attend patients in Vietnamese camps, which they would not otherwise be able to do, and to facilitate the ethnic population to consult doctors from their respective countries.

Mr Deputy President, the people of Hong Kong are concerned that the Vietnamese boat people are usurping our medical services, which are already inadequate. I am however not saying that such people should not be treated, for that is ethically wrong. To enable them to receive medical care, and to revert resources back to the

underprivileged people of Hong Kong, I and the medical constituency I represent accept limited registration of non-registrable doctors to cater specifically for the Vietnamese boat people.

But, Mr Deputy President, those who are visiting Hong Kong or making Hong Kong their second home should show acceptance and respect for the practices and the way of life here. It would be haphazard if we have no uniformity of standards, with different groups of medical practitioners administering different medicines. Mr Deputy President, I oppose the Bill as it stands, save only for the part for the Vietnamese boat people camp, which is the only sector where there is a genuine need.

Mr Deputy President, the Hong Kong Medical Council, back in December 1990, 16 months ago, already submitted to the Health and Welfare Branch its proposal for a complete overhaul of the Medical Registration Ordinance. It suggests amongst other things that members of the Medical Council should be elected instead of being

appointed by the Governor as it is after all a body that oversees the profession. It also proposes that any application for registration should be based on medical standards, and the determination of registration of any form should be the role of the Medical Council. In it, limited registration was also suggested. Some 16 months have gone by, the revamp has yet to come into sight. But instead, the Administration only took out the suggestion on limited registration and pushed it forward out of the context of the total amendment that we propose for the Medical Registration

Ordinance. Mr Deputy President, the Secretary for Health and Welfare will, I suspect, say that the power of granting limited registration will solely be vested in the hands of the Medical Council. That no doubt is in the words of the amendment Bill. Yet,

I pity the Medical Council which will not only be burdened with a load of representations from organizations wanting to import unregistrable doctors to Hong Kong for limited registration, but will also have to shoulder pressure from foreign political giants around Hong Kong who insist that their nationals are not properly treated unless attended to by doctors from their own country. Mr Deputy President, I would oppose the Bill as it stands unless the category of limited registration be limited only to Vietnamese boat people camps which is the only sector where there is such a need. I would also oppose the spirit of limited registration unless there is in the context of a complete revamp of the Medical Registration Ordinance. This, the Government could have done given the will. Mr Deputy President, I call upon my honourable colleagues to do likewise. I would also call upon colleagues of the various professional bodies to vote "no"; for in my mind, the passage of this Bill as it stands is the beginning of an unstoppable process of erosion of professional autonomy.

I oppose the Bill.

DR CONRAD LAM (in Cantonese): Mr Deputy President, speaking on this Bill in this Council on 29 January this year, the Secretary for Health and Welfare identified two groups with special needs, one of them being the Vietnamese boat people and the other, the Japanese living in Hong Kong.

First, let me refer to the Vietnamese boat people. They are an international issue. I am therefore pleased to see the Government adopting appropriate measures to enable the international community to participate in solving problems brought about by the boat people, including the medical services covered in this Bill.

Secondly, I go on to the medical services for the Japanese in Hong Kong. The Secretary for Health and Welfare disclosed that the Japanese Consul was asking for permission for unregistered Japanese doctors to practise here on the ground of language barrier. Such a request by the Japanese Consul is in effect asking for special privileges for the Japanese people and the Japanese doctors here in Hong Kong. In actual fact, Japanese businessmen are here to invest for profit. If there is no profit in Hong Kong, they would have left. The Japanese are here to make money and they seek for special privileges here. It makes me think of their arrogant faces during the three years and eight months of Japanese Occupation in Hong Kong at the Second World War.

That this Bill has lumped together the basic needs of Vietnamese boat people and the unreasonable request of the Japanese reflects an error in principle and in technicality. It may create an impression that in introducing this Bill, the Hong Kong Government is using Vietnamese boat people as hostages to tide the Japanese over. Originally, I intended to vote against this Bill. I have changed my mind in order that the international community may participate in solving problems brought about by the Vietnamese boat people. I now abstain from voting to show my discontent over this Bill.

Thank you, Mr Deputy President.

MISS EMILY LAU: Mr Deputy President, I fully support the amendment Bill which I hope will bring an end to the five-years saga of trying to provide doctors for the Vietnamese centres. As Dr C H LEONG has just pointed out that the Vietnamese population has placed a heavy burden on local medical services and personnel, I am therefore dismayed and even disgusted to witness the farcical situation in which volunteer doctors from the European Community who volunteer to work in the camps are prohibited from doing so.

Mr Deputy President, the Government began negotiating with the medical profes Mr Deputy President, the Government began negotiating with the medical profession way back in 1988 and I am indeed very sorry to see that it has taken five long years

to sort this mess out. In the meantime both the Hong Kong people and the Vietnamese suffer.

Mr Deputy President, I am glad to see that the Medical Council has accepted the Mr Deputy President, I am glad to see that the Medical Council has accepted the principle provided for limited registration in order to cater for community needs which are not adequately met. I appreciate the medical profession's anxiety about moves which could be interpreted as opening the floodgate to doctors whose

qualifications are not recognized in the colony. While I fully accept the principle of safeguarding the standard of medical practice in Hong Kong, I am in favour of a more open environment in which no one seems to have a monopoly and that the public can have access to all kinds of medical care in a free and open market.

With these remarks, Mr Deputy President, I support the motion.

SECRETARY FOR HEALTH AND WELFARE: Mr Deputy President, I thank the Honourable Martin BARROW and members of the ad hoc group for their thoughtful consideration of the Bill.

The Bill is important for two reasons. First, by introducing a scheme of limited registration, it makes it possible for adequate medical services to be provided to meet special needs as yet unmet without affecting the registration arrangements for general medical practice in Hong Kong. Second, and perhaps more importantly, it gives the Medical Council a new discretionary power which can be seen to be exercised openly and fairly in the interest of our community.

The proposed limited registration scheme gives the Medical Council the power, discretion and flexibility it needs:

- to determine and promulgate where needs exist - to determine and promulgate where needs exist

- to decide how many doctors to admit - to decide how many doctors to admit

- to desig - to desig to design what procedures to follow n what procedures to follow

- to decide which doctors to admit, or not - to decide which doctors to admit, or not

- to limit those doctors' place of practice - to limit those doctors' place of practice

- to limit those doctors' period of practice - to limit those doctors' period of practice

- to discipline those doctors no differently from fully registrable - to discipline those doctors no differently from fully registrable practitioners.

Thus, the Bill empowers the Medical Council to meet all existing needs and any Thus, the Bill empowers the Medical Council to meet all existing needs and any future needs which cannot be met or anticipated at this time. It enables the Medical Council to regulate the scheme and to ensure that standards of medical care are not compromised.

These are full and unfettered powers of discretion. These are new powers that the Medical Council and the medical profession have sought and these are new powers they should be given. It is then for the Medical Council to show that they can exercise these new powers responsibly and responsively. It is also then time to review, and maybe to revise, the Medical Registration Ordinance in the light of experience.

The Bill marks the end of almost five years' efforts by the Administration to seek a solution, to meet special needs. The Medical Council and the medical profession have rejected all our previous proposals. These include:

- asking the Medical Council to consider using their present powers of - asking the Medical Council to consider using their present powers of discretion

- exempting from registration doctors - exempting from registration doctors exempting from registration doctors from accredited medical schools from accredited medical schools

- exempting from registration doctors serving specific needs in the public - exempting from registration doctors serving specific needs in the public interest.

None was acceptable to the Medical Council. Their concerns have been legion.

This Bill and Committee stage amendments have addressed all their legitimate This Bill and Committee stage amendments have addressed all their legitimate concerns. Neither the Medical Council nor the medical profession need have any fear that droves of doctors trained outside Hong Kong will practise here. It is up to the Medical Council to set standards to determine numbers and to specify conditions as appropriate to specific cases in question.

Hong Kong is an open society and, as mentioned by Mr BARROW, a caring community. There is no room for protectionism, no room for self-interest. There are no reasonable or rational grounds to oppose the passage of this Bill. So, let us delay