HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3233 OFFICIAL RECORD OF PROCEEDINGS
Wednesday, 5 May 1993
The Council met at half-past Two o'clock
PRESENT
THE PRESIDENT
THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., LL.D., Q.C., J.P.
THE FINANCIAL SECRETARY
THE HONOURABLE NATHANIEL WILLIAM HAMISH MACLEOD, C.B.E., J.P.
THE ATTORNEY GENERAL
THE HONOURABLE JOHN WOOD, C.B., J.P.
THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P.
THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE 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 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, O.B.E., J.P.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3234 THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P.
DR THE HONOURABLE LEONG CHE-HUNG, O.B.E. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E.
THE HONOURABLE PETER WONG HONG-YUEN, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP
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 TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA
DR THE HONOURABLE HUANG CHEN-YA
THE HONOURABLE SIMON IP SIK-ON, J.P.
DR THE HONOURABLE LAM KUI-CHUN
DR THE HONOURABLE CONRAD LAM KUI-SHING THE HONOURABLE LAU CHIN-SHEK
THE HONOURABLE 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
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3235 THE HONOURABLE MAN SAI-CHEONG
THE HONOURABLE STEVEN POON KWOK-LIM
THE HONOURABLE HENRY TANG YING-YEN, J.P.
THE HONOURABLE TIK CHI-YUEN
THE HONOURABLE JAMES TO KUN-SUN
DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG
DR THE HONOURABLE YEUNG SUM
THE HONOURABLE HOWARD YOUNG, J.P.
THE HONOURABLE ZACHARY WONG WAI-YIN
DR THE HONOURABLE TANG SIU-TONG, J.P.
THE HONOURABLE CHRISTINE LOH KUNG-WAI
THE HONOURABLE ROGER LUK KOON-HOO
THE HONOURABLE ANNA WU HUNG-YUK
ABSENT
THE CHIEF SECRETARY
THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P.
THE HONOURABLE FREDERICK FUNG KIN-KEE
IN ATTENDANCE
MR MICHAEL LEUNG MAN-KIN, C.B.E., J.P.
SECRETARY FOR TRANSPORT
MR YEUNG KAI-YIN, C.B.E., J.P.
SECRETARY FOR THE TREASURY
THE HONOURABLE JOHN CHAN CHO-CHAK, L.V.O., O.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3236
MR MICHAEL SUEN MING-YEUNG, J.P.
SECRETARY FOR HOME AFFAIRS
MRS ELIZABETH WONG CHIEN CHI-LIEN, I.S.O., J.P. SECRETARY FOR HEALTH AND WELFARE
THE HONOURABLE MICHAEL SZE CHO-CHEUNG, I.S.O., J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS
MR GORDON SIU KWING-CHUE, J.P.
SECRETARY FOR ECONOMIC SERVICES
MR KENNETH JOSEPH WOODHOUSE, J.P.
SECRETARY FOR SECURITY
THE CLERK TO THE LEGISLATIVE COUNCIL
MR CLETUS LAU KWOK-HONG
THE DEPUTY CLERK TO THE LEGISLATIVE COUNCIL MR PATRICK CHAN NIM-TAK
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3237 Papers
The following papers were laid on the table pursuant to Standing Order 14(2): Subject
Subsidiary Legislation L.N. No.
Administrative Instructions for Regulating
Admittance and Conduct of Persons
(Amendment) Instructions 1993 .............................................................. 134/93 Forestry (Amendment) Regulation 1993 ...................................................... 135/93
Pension Benefits Ordinance (Established Offices)
Order........................................................................................................ 136/93
Registrar General (Establishment) (Amendment of
Second Schedule) Order 1993 ................................................................. 137/93 Solicitors' Practice (Amendment) Rules 1993 .............................................. 138/93
Employees Retraining Ordinance (Amendment of
Schedule 4) Notice 1993.......................................................................... 139/93 Specification of Public Office ...................................................................... 140/93 Specification of Public Office ...................................................................... 141/93
Legal Practitioners (Amendment) (No. 2) Ordinance
1992 (61 of 1992) (Commencement) Notice
1993......................................................................................................... 142/93
Waste Disposal Ordinance (Cap. 354) (Application)
Notice 1993 ............................................................................................. 143/93
Waste Disposal (Chemical Waste) (General)
Regulation (L.N. 20 of 1992) (Application of
Section 4 and Parts III, IV, V and VI) Notice
1993......................................................................................................... 144/93
Sessional Paper 1992-93
No. 77 — The Government Minute in response to the Report of the Public Accounts Committee dated January 1993
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3238 Oath
Mr John WOOD took the Legislative Council Oath.
Address
The Government Minute in response to the Report of the Public Accounts Committee dated January 1993
FINANCIAL SECRETARY: Mr President, laid on the table today is the Government Minute responding to the 19th Report of the Public Accounts Committee on the accounts of the Hong Kong Government for the year ended 31 March 1992, and the results of value for money audits. The Minute reports the action taken, or about to be taken, by the Government upon the conclusion and recommendations contained in the report.
Mr Stephen CHEONG, the Chairman of the Public Accounts Committee, spoke in this Council on 10 February 1993 and voiced concern about the need to improve co ordination between government departments. I should like to comment on the points he raised.
I acknowledge that there is scope for improving co-ordination between government departments in certain areas. We have taken steps to address the specific instances of lack of co-ordination highlighted in the Committee's report. Let me name three examples.
First, all stages in the provision of government, institution and community facilities in private developments are now being co-ordinated by the Government Property Agency.
Secondly, as I indicated in my Budget speech on 3 March this year, we have also taken a number of new initiatives to improve the co-ordination of public works projects. The Secretary for Works has been given overall management responsibility for implementing all projects in the Public Works Programme. He now chairs a new Public Works Progress Committee which includes all Policy Secretaries having a close involvement with public works. The Committee is also attended by the directors of the works group of departments. Its main task is to co-ordinate the Government's efforts to deliver public works projects on time and within budget.
In addition, a wide-ranging review of existing public works procedures and systems is being carried out. This will involve a detailed examination of how public works projects are planned, co-ordinated, financed and executed. The Committee's proposal that a Project Co-ordinator be appointed for projects involving more than one department will be considered in the review. And a more sophisticated computer-based information and management system will be developed to link all works departments and relevant policy branches.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3239
We are, of course, not content with simply improving co-ordination of activity. We have now gone a step further to improve lines of communication and accountability as between government departments, on the one hand, and Policy Secretaries, on the other. The Efficiency Unit has helped branches and departments to develop structured programmes to define clearly and to cost departments' activities. In the coming months further work will be required to refine performance measures and to introduce regular programme reviews between branches and departments. These arrangements will facilitate a more proactive approach to resource management with a view to ensuring the best value for money in delivering the Government's programmes.
Mr President, the Government appreciates fully the importance of the PAC's findings and recommendations. I am confident that the measures we have taken, or are planning to take, will go a long way towards achieving this end.
Oral answers to questions
Underutilized hospitals
1. MISS EMILY LAU asked (in Cantonese): Will the Administration inform this Council whether it is aware of the number of hospitals which are under-utilized and if so, whether there are any plans to close down these hospitals so that resources can be redeployed to existing and planned hospitals in districts where there are growing demands?
SECRETARY FOR HEALTH AND WELFARE: Mr President, the Administration is aware of the need to review regularly the utilization of hospital facilities to ensure that resources are deployed in a way that meets the modern needs of our community and is cost-effective. Indeed, one of the key objectives of setting up the Hospital Authority is to achieve greater efficiency in the utilization of available resources.
The findings of a review completed recently by the Hospital Authority on the demand and supply of public hospital beds in Hong Kong up to the year 2000 point to the need to shift the emphasis of the present provision of public hospital services, mainly because of:
(a) the population shift from the older urban areas of Hong Kong Island and Kowloon to the New Territories;
(b) the ageing population, which will increase the demand for infirmary facilities; and
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(c) the development of new technology to facilitate day surgery and other ambulatory care procedures, which will reduce the need for general in patient beds and increase the interface with primary health care.
I am aware that the Hospital Authority has plans in train to optimize operational efficiency and improve hospital services for the community. These include:
(a) the formulation of plans to redesignate some 1 000 general beds as infirmary or psychiatric beds to meet the shortfall in these services;
(b) the introduction of new services in the areas of acute high technology services, rehabilitation programmes and hospice care so as to provide a more diversified range of services;
(c) the networking of hospitals to facilitate referrals; and
(d) the upgrading of geriatric services at Kwong Wah Hospital, United Christian Hospital and Buddhist Hospital to meet new demands and to alleviate the heavy workload at Queen Elizabeth Hospital.
In addition, the Hospital Authority is looking into ways and means to meet the special needs of new towns. I assure Honourable Members that we will continue to review the utilization of hospital resources to achieve optimum efficiency in service delivery.
MISS EMILY LAU (in Cantonese): Mr President, in her reply, the Secretary mentioned the population shift from Hong Kong Island and Kowloon to the New Territories. In the light of this, will the Secretary acknowledge that the utilization rate of hospitals on Hong Kong Island and Kowloon is not high? Moreover, will the Secretary explain to this Council how resources can possibly be deployed from Hong Kong Island and Kowloon to Tuen Mun Hospital which is opening in phases and the future North District Hospital and Nethersole Hospital, without closing some of the existing hospitals?
SECRETARY FOR HEALTH AND WELFARE: Mr President, the provision of hospital services is reviewed, as I said in my main reply, regularly in the light of population movements and changing community aspirations. The recent decision announced by the Government to go ahead with the construction of North District Hospital with 600 beds will go some way towards alleviating the demand for hospital beds in New Territories East, for example. Furthermore, we have undertaken to evaluate thoroughly in 1994 the need for a new hospital in Tseung Kwan O, taking into account the population growth and new town developments in the area as well as the effects of the United Christian Hospital extension and the commissioning of Pamela Youde Hospital for the
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3241
nearby areas. Meanwhile, we are also looking into the need for setting up other types of clinics like specialist clinics in areas of need.
PRESIDENT: I think I will have to go on to the next question. Dr TANG Siu-tong. DR TANG SIU-TONG rose to ask Question No. 2 standing in his name on the Order Paper.
PRESIDENT: Sorry, Dr TANG, I have misled you. When I said next question I meant I would not give Miss Emily LAU a second supplementary and you were top on the list for the next supplementary. I am so sorry. (Laughter)
DR TANG SIU-TONG (in Cantonese): Mr President, I am pleased to learn from paragraph two of the main reply that the Administration understands that "the ageing population will increase the demand for infirmary facilities". Does the Administration have any projection of the demand for care and attention beds for the next three years and how many care and attention centres will be established to meet such a demand?
SECRETARY FOR HEALTH AND WELFARE: Mr President, I am happy not to be spared the details of the second supplementary question. (Laughter) The initial targets in terms of providing infirmary beds and also care and attention homes have been very clearly laid down in the draft Estimates. "護理安老院", this is really relating to the care and attention centre, from the Social Welfare Department point of view. I think a large part of the $2.3 billion allowed for in the Lotteries Fund is towards meeting the needs of the elderly by establishing more care and attention homes for the elderly under the SWD programme. And similarly we need to divert more resources towards infirmary beds and that is a co ordinated strategy to help with meeting the needs of the elderly people in our community.
MR TIK CHI-YUEN (in Cantonese): Mr President, statistics reveal that the bed/population ratio on Hong Kong Island is about five beds per 1 000 population whereas it is 1.9 in New Territories East. Although the Government is going to build more hospitals in the New Territories, may I ask, from the point of view of allocation of resources, whether there is any plan in place to bridge the present gap of uneven distribution of beds in the territory?
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3242
SECRETARY FOR HEALTH AND WELFARE: Mr President, when we talk about bed/population ratio, I would like to share with Members some of the very revealing statistics on bed/population ratio and Hong Kong is really doing quite well. In accordance with The OECD Health System Facts and Trends (1993 Edition) recently published, the bed/population ratios for some of the countries are cited: 3.2 in the United Kingdom for acute hospital beds per 1 000 population compared with our present ratio of 3.89 per 1 000 population. We are also leading in a number of areas like bed utilization. So apart from building new hospitals —for instance the North District Hospital with 600 additional beds which will take our bed/population ratio to 5.09 which is better than any of our neighbouring countries — I should imagine that there is very little need for us to look at the bed/population ratio because a number of interrelated factors interplay here, for example, apart from the distribution and size of population in question, we need to also consider accessibility and transport infrastructure. Where possible, internationally the trend is for smaller community hospitals with a range of services to interface with primary health care. In other words, the mode of delivery should allow for day hospitals, ambulatory care and community care.
MR HOWARD YOUNG: Mr President, in subparagraph (a) of the second paragraph of the main reply, the Secretary mentions that the population shift is from the urban areas of Hong Kong Island and Kowloon to the New Territories. However, in subparagraph (d) of the third paragraph of the reply, examples are given, such as the Kwong Wah Hospital, the United Christian Hospital and the Buddhist Hospital which, I understand, are all in urban areas as opposed to the New Territories. Can the Secretary confirm whether the shift should actually be towards the New Territories and, in particular, whether the Prince of Wales Hospital in Sha Tin will be subject to upgrading, which, by my casual observation, sometimes seems stretched?
SECRETARY FOR HEALTH AND WELFARE: Mr President, the shift is in respect of building new hospitals to cater for needs in new areas which are not met. There are also new developments like upgrading of facilities, as Mr YOUNG rightly pointed out. Examples of upgrading in order to cope with the needs of the community in situ, for instance, the ageing population, are the expansion of geriatric services at Kwong Wah and various other geriatric teams to develop new modes of service for the population needs. New modes of service would include introduction of rehabilitation beds. So it is not a simple calculation of building new hospitals without upgrading existing hospitals. We are looking at various methods of upgrading the high-tech hospital services by going high-tech, which include services of MRI, which would be introduced in Hong Kong, CT scanners and various other new modes of services which will be the future core for development of Hong Kong's medical services.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3243 PRESIDENT: Last supplementary, I am afraid. Mr Michael HO.
MR MICHAEL HO (in Cantonese): Mr President, first of all, I have to declare my interest as a member of the Hospital Authority. We find that some of our under-utilized ex-subvented hospitals with ageing facilities have to compete with nearby newer hospitals which have adequate facilities. Will the Government identify such hospitals and have them closed? Furthermore, does the Administration meet with any resistance in particular from for example ex-subvented hospital boards when relocating hospitals or trying to close them or part of their services?
SECRETARY FOR HEALTH AND WELFARE: Mr President, may I also share, in response to the question, some of the statistics in respect of the overall bed occupancy rate. The Tsan Yuk Hospital had an occupancy rate of 49.5 rising to 59.5 this year. That is because some of the areas had been under renovation and Hong Kong people do not have so many babies these days. The higher overall bed occupancy rate relates to the Castle Peak Hospital where there is overutilization owing to the lack of beds there. We are revamping the Castle Peak Hospital. May I also say that utilization, underutilization or overutilization of beds is not a subject for simple interpretation. Again, I would relate to the physical numbers of the activities of hospitals. When Honourable Members looked at the Estimates for 1993-94 Head 177 Page 405, to which I will refer, it is stated with clarity that the average bed occupancy rate is about 81%. This compares very favourably with statistics held elsewhere in OECD countries. For example, acute hospital admission per 100 population in Hong Kong is 12.19 compared with 12.9 in the United Kingdom or 10.4 in the Netherlands. Again, acute hospital average length of stay is 10.7 in Hong Kong compared with 7.8 in the United Kingdom or 11.5 in the Netherlands. Utilization rate therefore is dependent on a number of factors, namely, on the management, the need of the population and the treatment required. Underutilization is not overplanning; it is not a question of leaving things undone. But I do assure Honourable Members that we are reviewing all the requirements periodically, as I said in my main reply and my answer to the first supplementary.
MR MICHAEL HO (in Cantonese): Mr President, it seems that the second part of my question has not been answered, that is, does the Administration meet with any resistance from for example ex-subvented hospital boards when relocating hospitals or closing part of the services or revamping the hospitals for different uses?
PRESIDENT: Has this actually arisen or is it hypothetical, Mr HO?
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3244
MR MICHAEL HO (in Cantonese): Mr President, I am just asking for facts. May I ask if the Administration has met with any resistance when relocating hospitals or changing their modes of services?
PRESIDENT: On the factual side, Secretary.
SECRETARY FOR HEALTH AND WELFARE: Mr President, on the factual side, this is an operational matter. It is a matter for the Hospital Authority. Under the law, the HA is operating independently of the Government on the operational side. I am glad to hear this question from Mr Michael HO, who is a member of the HA and as such he should know the answer himself.
PRESIDENT: Next question.
MR MICHAEL HO (in Cantonese): Mr President.....
PRESIDENT: Next question. Dr TANG Siu-tong.
Transfer of duties to SAR Government
2. DR TANG SIU-TONG asked (in Cantonese): Will the Government inform this Council:
(a) apart from making arrangements to bring the electoral provisions of the legislature within the terms of the Basic Law, whether it has any plans to ensure an orderly and smooth transfer of duties from the existing Executive Authorities to the SAR Government in 1997;
(b) if yes, whether a timetable would be laid down for the implementation of such plans; and whether it would be possible to have all the necessary arrangements in place by 1 July 1997; and
(c) if not, what the reasons are; and when steps would be taken to plan for the transfer?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, the Government will develop plans to ensure an orderly and smooth transfer of duties in due course. Such arrangements will be put in place before or by 30 June 1997.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3245
DR TANG SIU-TONG (in Cantonese): Mr President, I am very disappointed by the short answer given by the Administration to this important question. As it is said that the Government will develop plans, may I have the details of such plans, particularly when it is going to select the Chief Executive of the Special Administrative Region, how the 50 or so government departments will be transferred from the present Government to the future SAR Government, how it is going to implement the localization policy within the Civil Service and retain experienced civil servants; and whether there will be a power vacuum in the executive branch of the Government before 1997 as a result of the offer of the right of abode in Britain and the leaving of civil servants?
PRESIDENT: You have to try to ask one question instead of three, Dr TANG.
DR TANG SIU-TONG (in Cantonese): Mr President, I would ask one question then. What are the details of the plans?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, as Members know, we have the Joint Liaison Group which is a forum for discussion between the British and Chinese sides on the whole range of issues affecting the smooth transition from British sovereignty to Chinese sovereignty. I think the answer to Dr TANG's question would have to depend on developments between now and 1997, certain elements of which — for example, which civil servants will stay behind to see to a smooth transfer — are not matters about which I can give an answer.
MR EDWARD HO: Mr President, will the Secretary inform this Council by when the localization of principal government officials under the provisions of the Basis Law will be completed to effect a smooth transition in 1997?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, this is a question which should be addressed to my colleague, the Secretary for the Civil Service. But as far as I understand — I am not an authority on this particular issue though — by 1995 all Secretary posts will be filled by local officers.
MR SIMON IP: Mr President, would the Secretary simply elaborate on what the major considerations are that would need to be taken into account in developing the plans that he refers to in his answer?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, the main consideration is the need for both sides to work together. We propose plans all the time. And Members know for a fact that there are, for example, air
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3246
services agreements which we have initialled with the parties concerned and which are awaiting Chinese examination. I think, as the saying goes, it takes two to tango.
MR RONALD ARCULLI: Mr President, will the Secretary inform this Council when the Joint Liaison Group will reconvene to enable outstanding matters relating to a smooth transition of sovereignty to be resolved?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, we are ready to meet at any time and indeed we have proposed dates to the Chinese side and I hope we shall be meeting before too long.
MR CHIM PUI-CHUNG (in Cantonese): Mr President, Hong Kong may have a "new governing body" some four years from now. In the interests of the people of Hong Kong and the civil servants, the Administration should fix a date for the two sides to discuss these future plans. May I ask if the matter has been passed on to the British Government which is the present sovereign state for them to deal with it?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, closer co-operation is definitely a direction in which we are moving. As Members know, the Joint Declaration provides that during the second half of the transition period there will be a need for closer co-operation which will therefore be intensified during that period. And matters for consideration during that period shall include the procedures to be adopted for the smooth transition to 1997. Therefore the short answer, I think, is yes.
MR HOWARD YOUNG: Mr President, the Secretary in his reply says the Government will develop plans before or by 30 June 1997, which means that it could be widely interpreted as "there are no such plans, nothing has been thought of and they will be developed in a hurry" or it could mean that plans are more or less almost in place and are just waiting for the JLG to endorse them. Can the Secretary tell us whether the Government has in mind actual priorities as to which part or which of the plans should be developed first and therefore implemented first?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, the question is almost like how long is a piece of string. I would attempt to answer that question if the Honourable Member would cite me specific issues to be addressed.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3247
MR HOWARD YOUNG: Mr President, personally I have priorities like security, travel documents and, I believe many Members would agree also, the Judiciary.
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, as far as travel documents are concerned, I think that was one of the issues we first took up with the Chinese side and we have achieved results on that. I do not think there are major areas that we need to cover in that respect. As for security, I am not too sure as to what aspect of security is being referred to. I think one would need to be specific in answering such questions. But I think the fact is that we do have priorities and the ones that we have been concentrating on are trade matters which mean Hong Kong's life blood. As Members know, we have since 1986 secured Hong Kong's own separate status in the GATT and we negotiated and have achieved results in areas of international rights and obligations under treaties that would be applied to Hong Kong after 1997. Those are the areas that we have been focussing on. As to other matters, I would be happy to answer specific questions on any of them.
PRESIDENT: We have to pass on.
MR MAN SAI-CHEONG (in Cantonese): Mr President, in relation to the work of the executive authorities referred to by Dr TANG, will the Administration inform this Council whether there are plans and timetable in place to enable those at the executive level to receive adequate training in the use of Chinese and English so as to ensure an orderly transition to the Special Administrative Region and to be in line with the spirit of the Basic Law?
SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, I take proficiency in the Chinese language to mean an adequate command of Putonghua and written Chinese. The Government encourages and organizes classes for senior civil servants in the use of Putonghua and there is also a refresher course for civil servants who wish to brush up on their written Chinese. As Member would probably gather from media reports, the Government has now organized courses with the Qinghua University of Peking and directorate officers from Hong Kong will attend the courses in that university on the use of Putonghua and written Chinese and also the Chinese system of government. The first of these courses will begin next July.
DR PHILIP WONG (in Cantonese): Mr President, may I ask two questions which are more specific. First, when will the Government issue the bank notes of the Special Administrative Region? Second, does the Administration intend to bring up the issue of the Court of Final Appeal again?
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SECRETARY FOR CONSTITUTIONAL AFFAIRS: Mr President, on the first part of the question, I will defer to the Financial Secretary. But maybe I will deal with the second part of the question first before I yield the floor to the Financial Secretary. On the Court of Final Appeal, the Administration is considering how best to bring the issue back to this Council. And there are a number of aspects we would need to consider and consult. We are not yet in a position to bring it to the Council.
FINANCIAL SECRETARY: Mr President, as I understand it, the question refers to new currency. Of course, the Joint Declaration provides that the Hong Kong dollar should continue to be the currency of Hong Kong after 1997. I could not quite understand the thrust of the question.
Foreign domestic helpers
3. MR TAM YIU-CHUNG asked (in Cantonese): Will the Government inform this Council:
(a) of the number of overseas workers who were permitted to work in Hong Kong as domestic helpers in each of the past five years and of their country of origin; and
(b) whether consideration will be given to reviewing the relevant policy and legislation on the control mechanism to prevent them from working other than as domestic helpers?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, in response to the first part of Mr TAM's question, I have tabled detailed statistics on the numbers of overseas workers permitted to work in Hong Kong as domestic helpers in the past five years.
As regards the second part of the question, all foreign domestic helpers are employed on a standard contract which stipulates that the helper may only perform domestic duties for a specified employer. Any helper found taking up unapproved employment is liable to prosecution for breaching a condition of stay under the Immigration Ordinance. Employers who unlawfully deploy foreign domestic helpers in non-domestic work are also liable to prosecution for aiding and abetting the helpers to breach their conditions of stay. In both cases the maximum penalty is a fine of $5,000 and imprisonment for two years. As a matter of policy, employers with proven adverse records with the Immigration Department will normally be debarred from employing foreign domestic helpers in future. Similarly, foreign domestic helpers who have breached their conditions of stay may be debarred from working in Hong Kong unless there are genuine mitigating grounds.
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These requirements are vigorously enforced. In addition to investigating specific reports or complaints, the Immigration Department pays surprise visits to bars, shops and restaurants where foreign domestic helpers are suspected to be illegally employed. The Department also raids vice establishments jointly with the police.
In 1992, over 1 700 cases of offences involving foreign domestic helpers were investigated. These led to 759 helpers and 48 employers being prosecuted. Foreign domestic helpers who had overstayed or taken up unapproved employment, including street hawking, were fined between $1,000 and $2,000 in each case. Employers were fined between $1,000 and $5,000 for unlawfully deploying foreign domestic helpers. The situation is reviewed from time to time to ensure that the existing policy and legislation on the control mechanism are sufficient and effective.
Annex
Overseas Workers permitted to Work in Hong Kong as
Domestic Helpers in 1988-1992 by Country of Origin
Country of origin 1988 1989 1990 1991 1992
Philippines 41 700 52 900 63 600 75 700 89 100 Thailand 1 750 3 100 4 300 5 600 6 700 Indonesia 450 680 1 000 1 800 3 500 India 750 810 840 890 960 Sri Lanka 270 300 340 400 520
Others (for example, Nepal, Malaysia and Bangladesh)
280 210 220 210 420
Total 45 200 58 000 70 300 84 600 101 200 Note: Figures are as at the end of the calendar year concerned.
MR TAM YIU-CHUNG (in Cantonese): Mr President, employment of foreign domestic helpers grew by 20% each year for the past five years. Will the Administration examine why the growth rate has been persistently high for the past few years? With this growth rate, will it generate social problems?
SECRETARY FOR EDUCATION AND MANPOWER (in Cantonese): The growth in the number of foreign domestic helpers in the past five years reflects an increasing demand for these workers in our community. Continual growth
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of our economy means family income in general has increased, the result of which is higher demand for domestic helpers. As I have said in my main reply, we will review the policy and the control mechanism from time to time so as to keep pace with the demand of our community.
PRESIDENT: Do you have a second part to your question, Mr TAM?
MR TAM YIU-CHUNG (in Cantonese): Mr President, thank you for drawing the Secretary's attention to that. The second part of my question is: with such growth rate, will that generate social problems?
SECRETARY FOR EDUCATION AND MANPOWER (in Cantonese): Mr President, we noted that the large number of foreign domestic helpers working in Hong Kong has given rise to situations like the assembling of large numbers of these workers at certain places during holidays. This has aroused the concern of the public who demanded special arrangements for these workers such as designating certain areas for them to spend their holidays. Past experiences and observation show that apart from the above, they have not generated serious social problems.
MRS ELSIE TU: Mr President, has consideration been given to the possibility that some domestic workers are forced to work illegally to support themselves while waiting for their cases against their employers for unlawful dismissal or for abuse or assault to go before the court, and if they are not allowed to work, how are they expected to support themselves while waiting three to six months for their case to be heard in the court?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, foreign domestic helpers are permitted to work in Hong Kong only in respect of domestic work for a specified employer. In those cases where a domestic helper has initiated a complaint or initiated a reference to the Labour Tribunal or to a court, extensions of stay are given; and in special circumstances where there are good reasons for doing so permission may be given for them to change employment. But, in general, change of employment during the tenure of a specific contract is not allowed. Of course, for a foreign domestic helper who wishes to remain in Hong Kong pending the resolution of a complaint or a court case, there are, in our experience, ways of finding temporary accommodation after termination of his/her contract through his/her personal connections, through his/her respective consulates, church and worker organizations and so forth. If a foreign domestic worker does not want to wait in Hong Kong, he or she can return to the home country in the interim and in many cases such workers can actually apply for a new contract with a new employer and come back to Hong Kong later on. Of course, in serious cases involving allegations of
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criminal offence, the Government will consider paying for passages to bring them back to facilitate court proceedings.
MR EDWARD HO: Mr President, with reference to what the Secretary said in relation to the provision of suitable venues for recreation for foreign domestic helpers during weekends, what is the Government's plan in that regard?
PRESIDENT: I think that goes outside the main question and answer, Mr HO, although it is within a supplementary answer.
MR EDWARD HO: Mr President, it is in relation to the original question where the aspect of social implications on Hong Kong is mentioned, or rather in a supplementary question earlier.
PRESIDENT: That was a supplementary answer given to a supplementary question. It is strictly outside the main question and answer under Standing Orders.
MR MARTIN BARROW: Mr President, does the Secretary agree that domestic helpers play a vital role in enabling a greater number of wives to contribute to the economy in many ways, and if so, would he confirm that he will not allow the introduction of a bureaucratic steeplechase to hinder the existing arrangements which do so much for our economy?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, I think I, for one, certainly recognize the contribution that foreign domestic helpers have made to the Hong Kong economy by freeing their employers to contribute in their own way to the economy. In administering the system for the admission of domestic helpers, the Government has, of course, always to maintain a balance between on the one hand making the arrangements as simple as possible and on the other hand making sure that we are not lax in enforcing the controls that are necessary. We shall continue to be guided by the need to maintain this balance, but I can assure the Honourable Member that as a general proposition we will keep procedures as simple as possible.
MR LAU CHIN-SHEK (in Cantonese): Mr President, if employers of foreign domestic helpers ask them to take up unapproved work, the offence is as serious as that of employing illegal workers. There are two parts to my question. First, may I refer to the second paragraph of the main reply where it says, "As a matter of policy, employers with proven adverse records with the Immigration Department will normally be debarred from employing foreign
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domestic helpers in future." May I ask if applications made by other family members of these employers will be approved? If so, whether this policy is self-defeating? Second, it has been mentioned in the fourth paragraph that the fines were between $1,000 and $5,000. Will such a penalty have any deterrent effect or whether a review is needed, and should the level of penalty be raised to bring it in line with that of employing illegal imported workers?
SECRETARY FOR EDUCATION AND MANPOWER (in Cantonese): Mr President, as the first part of Mr LAU's question asks for operational details, I cannot provide an answer today. I will have to check with the Immigration Department and will provide an answer in writing (Annex I). As for the second part of the question, what I have mentioned in my main reply are the penalties meted out in past court cases. As the law provides that the offence attracts penalties of two years' imprisonment apart from fines, I believe that will have great deterrent effect.
MR STEPHEN CHEONG: Mr President, from the annex to the reply given by the Secretary for Education and Manpower, one can see that there are quite a lot of domestic helpers coming from other countries. Given that trend, is it not the Administration's intention to review the bar against Chinese nationals becoming domestic helpers in Hong Kong?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, we have at present no plan to change our existing policy, but the importation of domestic helpers is a matter which is kept under regular review. On the specific question of domestic helpers from China, this will have to be looked at against the background that very large numbers of residents in China have relatives in Hong Kong, and given the close family and other connections between Hong Kong and China, the scope for abuse is something that we have to keep very much in mind, as well as the much greater difficulties of policing or ensuring that domestic helpers do not integrate very easily into society and therefore acquire perhaps residency or the right of abode after a period.
Executive Council Members' registrable interests
4. MR HENRY TANG asked: Will the Government inform this Council whether consideration will be given to requiring Members of the Executive Council, when registering their interests, to furnish information on their activities in the local investment market; and if not, what the reasons are?
FINANCIAL SECRETARY: Mr President, there are already a number of provisions which assist Executive Council Members to avoid any conflict of interest problems and to observe the principle that the advice tendered to the
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Governor is disinterested and impartial. Mr TANG mentions the register of interests. Under administrative rules approved by the Executive Council in 1991 Members are required to register investment holdings in respect of land and property of substantial value (or from which a substantial income is derived) and the names of companies in which Members, either themselves or with or on behalf of their spouses and infant children, hold in excess of 1% of the issued share capital. In addition to this information on investments, other interests also have to be registered such as remunerated directorships and employments, financial sponsorships and so on.
Apart from the registration of these declarable interests, Members also have a duty to declare an interest in any subject which is put before the Council for consideration. This interest may be exclusionary in nature (in which case Members do not participate in the Council's deliberations, are asked to withdraw from the Chamber and in certain cases do not receive the relevant papers) or may be declaratory, in which case the Member may tender advice to the Governor who will take into account the interest declared in giving weight to that Member's advice. Members' interests are monitored on a meeting by meeting basis and these procedures are scrupulously applied.
In addition to the above rules Members of the Executive Council are subject to certain legal provisions with regard to the use or disclosure of privileged information. The provisions of the Securities (Insider Dealing) Ordinance apply in relation to the use or disclosure of relevant information in terms of that Ordinance. And Members of the Executive Council are regarded as public servants for the purposes of the Prevention of Bribery Ordinance.
The purpose of the system of registration and declaration of Members' interests is to provide information on any pecuniary interest or other material benefit which a Member may receive which might be thought to influence his decisions in tendering advice to the Governor. In this context we can see the merit of keeping the scope and effectiveness of the rules relating to registration and declaration of interests under periodic review. I am therefore able to give a positive response to Mr TANG's question. We are very ready to re examine the present rules to see whether improvements can be made. And specifically to look carefully and positively at the suggestion of introducing a system of registering and declaring transactions in local investment markets, possibly along the lines of the provisions governing disclosure of investment holdings by directors of the Securities and Futures Commission. We shall announce the outcome of this review.
MR HENRY TANG: Mr President, the disclosure requirements outlined by the Financial Secretary suggest that the disclosure of interest by Executive Council and Legislative Council Members are similar, if not identical. In view of the fact that the Executive Council deliberates in camera while this Council does so in public, should the same disclosure rules apply to both Councils?
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FINANCIAL SECRETARY: Mr President, I am not sure that it is true that the rules are identical but perhaps the easiest way would be, if anyone wishes to check that, to compare the guidance note for Members of the Executive Council. It is a different document from the guidance which is issued to Members of the Legislative Council. As I happen to be on both, my memory is not entirely the same. But I cannot give Mr TANG a blow by blow or paragraph by paragraph comparison, but that could easily be done, the document being a public one.
MRS MIRIAM LAU: Mr President, bearing in mind the point on disclosure of Executive Council Members' interests and in view of the fact that the Executive Council deliberates in camera as mentioned by Mr Henry TANG, can the Financial Secretary inform this Council what measures will be taken by the Administration to ensure public confidence and accountability as regards decisions taken by the Executive Council?
FINANCIAL SECRETARY: Mr President, I think the main measure is exemplified in the question and answer which we were just dealing with. The fact is that we have rules which are very clear on the question of interest and investments and are designed to ensure that the advice given is absolutely impartial. But I have already signified — and I hope this will help retain public confidence in this whole issue — that we are very happy to review these rules further in the light of Mr TANG's suggestion.
MR RONALD ARCULLI: Mr President, will the Financial Secretary please inform this Council how ownership by nominee companies on behalf, perhaps, of Executive Council Members — and I would like to emphasize that I am not suggesting that they do it — could be traced and registered?
FINANCIAL SECRETARY: Mr President, I do not claim to have an instant answer to a rather technical question. But the purpose of declaring an interest is made very clear in the guidance note. Certainly it is entirely clear to Members that, however the investment is held or however the potential conflict arises, it is to be declared. But I cannot answer the particular technical question.
MISS EMILY LAU: Mr President, the Financial Secretary said that the Executive Council Members' interests are monitored on a meeting by meeting basis. Can the Financial Secretary tell us who does the monitoring and how the monitoring is carried out?
FINANCIAL SECRETARY: Mr President, the Clerk to the Executive Council is the person who, as a matter of routine every week or every meeting, monitors the papers in the light of the register of declared interests. That is the
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prime monitoring which goes on. In addition, of course, Members themselves will normally draw to the attention of the Clerk if they have any interest in a particular topic which is coming up on the agenda.
MR PETER WONG: Mr President, will the Financial Secretary confirm whether disclosure of dealings in index futures will be considered in the review?
FINANCIAL SECRETARY: Mr President, I think the principal questioner only said local investment markets, but I am very happy to include the question of index futures in the review.
Goods vehicle parking spaces
5. MR ANDREW WONG asked (in Cantonese): As the shortage of parking spaces for medium and heavy goods vehicles (including articulated goods vehicles) has caused serious illegal parking problems, will the Government inform this Council of:
(a) the number of medium and heavy goods vehicles registered and regularly in operation within Hong Kong;
(b) the number of parking spaces designated for these vehicles and their distribution in various districts;
(c) the planning standards for determining the number and location of such parking spaces; and
(d) the measures it will take to ease the shortage of such parking spaces?
SECRETARY FOR TRANSPORT: Mr President,
(a) The number of medium and heavy goods vehicles registered in Hong Kong and regularly in operation is about 32 200.
(b) There are about 30 600 parking spaces designated for such vehicles. This figure includes onstreet parking and spaces in private and public offstreet vehicle parks. Their distribution by district is given in the table.
(c) The standards for goods vehicle parking are laid down in the Hong Kong Planning Standards and Guidelines. In industrial zones, the standard is one space per 900 square metres of gross floor area or 400 square metres of site area, whichever provides the greater
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number of parking spaces. Half of the spaces so provided are to be set aside for loading and unloading.
(d) To meet the present shortfall, we are identifying more onstreet parking in areas of need. We are also seeking conveniently located sites offstreet to be operated under short term tenancy arrangements.
In the longer term, the Freight Transport Study, which will be completed in the next few months, will identify more comprehensive solutions to the goods vehicle parking problem.
Annex
Goods Vehicle Parking Inventory
Off-street On-street
District Board area
Combined
total
Private Public Total Metered
Non
Metered Total
Central & West 92 535 627 23 34 57 684 Wan Chai 99 184 283 13 0 13 296 HK East 1 924 425 2 349 56 0 56 2 405 HK South 571 45 616 57 57 114 730
Hong Kong Total 2 686 1 189 3 875 149 91 240 4 115
Mong Kok 48 139 187 406 52 458 645 Sham Shui Po 980 1 224 2 204 157 328 485 2 689 Yau Ma Tei 269 265 534 157 37 194 728 Kowloon City 804 223 1 027 179 83 262 1 289 Wong Tai Sin 559 135 694 117 47 164 858 Kwun Tong 1 662 591 2 253 118 176 294 2 547
Kowloon Total 4 322 2 577 6 899 1 134 723 1 857 8 756
Tuen Mun 1 511 312 1 823 12 181 193 2 016 Yuen Long 333 484 817 59 64 123 940 Sha Tin 2 215 1 012 3 227 63 9 72 3 299 Tsuen Wan 1 341 598 1 939 64 5 69 2 008
Kwai Chung/Tsing Yi
3 130 3 823 6 953 86 0 86 7 039
North 524 518 1 042 0 36 36 1 078 Tai Po 756 221 977 23 0 23 1 000 Sai Kung 217 94 311 0 7 7 318
N.T. Total 10 027 7 062 17 089 307 302 609 17 698 Territory Total 17 035 10 828 27 863 1 590 1 116 2 706 30 569
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MR ANDREW WONG (in Cantonese): Mr President, I am very happy to have heard the admission by the Secretary of the shortfall of parking spaces. The figures he provides are very interesting. There are 32 200 goods vehicles regularly in operation, and 30 600 parking spaces designated for such vehicles. With only a shortfall of 1 600 spaces, the problem does not look very serious, but in fact a shortfall of 1 600 spaces is already a very serious problem, particularly so as paragraph (c) of the reply has indicated "half of the spaces so provided are to be set aside for loading and unloading", which means that 15 300 of the 30 600 spaces are for loading and unloading. Since it is not convenient or is even prohibited to park vehicles outside warehouses, and assuming that parking is not allowed in respect of say half of the 15 300 spaces, the figure will be 7 650, and adding 1 600 spaces referred to earlier, the total shortfall will be 9 250. Or to be more lenient in the calculation and assuming that it is not convenient or not even allowed to park vehicles in one-fourth of those spaces, that will still make 3 825, which means that the total shortfall will be 5 425 (that is 3 825 plus 1 600). How can such a serious problem be touched on so lightly in the reply? When will the Freight Transport Study commenced last October be completed? Will the Secretary indicate, before the completion of the Study, what the solutions are as mentioned in paragraph (d)? Will that be looking for STT sites everywhere, and when will such parking spaces in STT sites be made available?
PRESIDENT: If you follow the arithmetic, Secretary. (Laughter)
SECRETARY FOR TRANSPORT: Mr President, I am not sure I can associate myself with the criticisms levelled in the first part of Mr WONG's supplementary question. I think the shortfall is about 2 000 spaces as provided in my main reply. Of course, the spaces do include the space for loading and unloading but this is taken care of by the Planning Standards and Guidelines and allowed for in the operation of the trade. That said, we entirely agree that the present shortfall cannot be left as it is and this is why the Freight Transport Study is now being finalized to address the longer-term solutions. In the meantime, certainly every effort is being made to meet the present shortfall. Examples are that starting this month there will be 300 additional spaces in the present container port; another 2 000 spaces will be provided under the Container Terminal No. 8 development from August 1993 onwards; yet another 2 000 spaces will be provided under the CT9 development starting from 1995; in addition 550 goods vehicle parking spaces will be available in STT sites within the next few months. So we are taking steps to meet this present problem.
MRS MIRIAM LAU: Mr President, from the annex to the answer, it can be seen that parking spaces for goods vehicles are not evenly distributed throughout the various districts, some districts having over 3 000 parking spaces, some having less than 300. Can the Secretary inform this Council how the parking needs of goods vehicles can be taken care of in those districts which are increasingly
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becoming business districts but which have very few parking spaces for goods vehicles, for example, Wan Chai District?
SECRETARY FOR TRANSPORT: Mr President, the distribution depends, of course, on the availability of sites and the needs of the particular area. Clearly, it is uneven because district needs and modes of operation of the trade vary from place to place. This is precisely why we must have a longer-term study to identify the modes of operation of the trade and to address the longer-term need of making the trucking industry more efficiently utilized. That said, the Transport and Highways Departments and the Police Force are taking steps to discuss with the district boards and the trade to see how district shortfalls can be overcome and this is done on a regular, almost daily, basis.
MR EDWARD HO: Mr President, is the Secretary aware that there is generally an overprovision of lorry parking spaces in the newer shopping complexes because they were put there under lease conditions and that in reality they have been used for private car parking because under the same lease conditions there are over strict requirements for maximum numbers of private car parking spaces?
SECRETARY FOR TRANSPORT: Mr President, I would be very pleased to have specific examples from Mr HO and refer them to the Director of Buildings and Lands for prosecution action under the lease conditions. As regards the first part of Mr HO's question, clearly in the new developments we must provide for more lorry parking spaces under the Planning Standards. It may well be that in the short term such spaces are not taken up in full but then there is always the question of a late catching-up in demand. Yet in the planning stage, we must make full provision to meet later demand.
REV FUNG CHI-WOOD (in Cantonese): Mr President, the Secretary has mentioned in paragraph (d) that the Administration will consider providing more on-street parking spaces. Since there are already not enough roads in Hong Kong, will an increase of on street goods vehicle parking spaces aggravate the problem? Since off-street parking sites operated under short term tenancy arrangements are only temporary in nature, is it necessary for the Administration to consider building more off-street parking areas for goods vehicles, especially near container terminals or within industrial areas?
SECRETARY FOR TRANSPORT: Mr President, I have just mentioned that we will be providing 4 000 spaces for CT8 and CT9 in the next few months and years. So the needs of the container industry are being taken care of. As regards onstreet sites, we must look at the needs of the industry; in some cases we may have to reallocate spaces originally provided for private cars to the
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goods industry as goods vehicle parking spaces if this demand is overriding. As regards offstreet sites, our policy is to encourage the provision of offstreet sites through short term tenancies. The nature of these tenancies is, by definition, short-term and therefore maximum use should be made of the land available for temporary usage. And this is a good and flexible way of meeting the demand in the interim period pending development of the land for permanent purposes. As I said earlier on, we shall have over 500 spaces under short term tenancies provided in the next few months and the extra spaces then available should be able to meet the demand in the short term.
PRESIDENT: We will have to move on, I am afraid.
Students trafficking in dangerous drugs
6. MR LEE WING-TAT asked (in Cantonese): In relation to the problem of students participating in the delivery and trafficking of dangerous drugs, will the Government inform this Council:
(a) of the number of such cases over the past three years;
(b) what the police have done in collecting information and initiating prosecutions in this connection; and whether those cases are triad-related; and
(c) what measures the authorities concerned, in particular the Education Department and the Social Welfare Department, have adopted or will adopt to prevent triad elements from inducing students to take part in the delivery and trafficking of dangerous drugs?
SECRETARY FOR SECURITY: Mr President,
(a) The number of students arrested for involvement in cases of trafficking in dangerous drugs were one in 1990, five in 1991 and eight in 1992.
(b) The police monitor the triad situation in schools using officers in District School Teams to liaise directly with the school authorities, in order to identify triad elements active in recruitment. They also rely on other intelligence sources. Prosecutions are initiated when arrests are made.
Crime statistics are produced on an aggregated basis, by types of crime convicted and by certain socio-economic characteristics of the offenders. The Commissioner of Police has advised that it is not practicable to extract, within such a short time, the relevant details
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from the individual files of the 14 cases involving students convicted for drug trafficking, to confirm whether they were triad-related. I will let Mr LEE have this information in writing, when it is available. (Annex II)
(c) Students are encouraged to report any crime, including any attempts by triad elements to induce them to participate in the delivery or trafficking of dangerous drugs. A Student Crime Information Form is currently being tested on a pilot basis in secondary schools in Western District and Wong Tai Sin District. These forms are left in the school and students can pick up a copy, report any crime and post it to GPO Box 999, Hong Kong. If this pilot scheme proves successful, the Student Crime Information Forms will be introduced in all schools throughout the territory.
A Crime Report, available at all District Offices, can also be used to report drug trafficking to the Customs and Excise Department and the police. Students are assured of anonymity.
Students are also encouraged to approach School Social Workers for assistance and counselling. The School Social Workers can also provide other assistance through interviews, home visits and treatment groups. Intensive counselling will be offered to students known, or suspected, to have triad involvement, or students being induced to take part in the delivery and trafficking of dangerous drugs. Protective arrangements can be made with the consent of the students and their parents, including assisting them to report to the police, arranging for them to change schools or receive temporary residential care where necessary. If they are public housing estate tenants, arrangements can be made for transfer through the Housing Department. These measures help to prevent them from falling prey to triad influence and threats. For more serious cases, the Director of Social Welfare may apply to the Juvenile Court for a care and protection order to place them under statutory supervision.
Seminar, talks, workshops, exhibitions and other preventive education programmes are launched by the Narcotics Division and the other departments concerned, including the Education Department and the Social Welfare Department, in schools to remind students of the legal consequences of drug offences and of the resources available for seeking professional assistance to resist drugs and influence of triad elements.
A Working Group on Support to Schools to Tackle Student Triad Activities was set up last August in the Education Department to co-ordinate the work of teachers, social workers and the police in their fight against triads and triad-related activities in schools. Guidelines and training courses will be provided for Discipline
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Masters in schools. The Working Group also assists in strengthening the Police District School Teams.
MR LEE WING-TAT (in Cantonese): Mr President, referring to the reply of the Secretary, I would say that although the problem of students involved in the delivery of dangerous drugs is not appalling, its fast upward trend is indeed worrying. It is mentioned in paragraph (c) of his reply that a Student Crime Information Form is being tested on a pilot basis in schools. Did the initial response show that the scheme was a success? For example, how many completed Student Crime Information Forms did the police receive in the meantime and how many offenders were arrested as a result? And when does the Security Branch intend to introduce this scheme in all schools throughout the territory?
SECRETARY FOR SECURITY: Mr President, the Student Crime Information Form is being tested at present in two districts and the results of that test are still ongoing. We have not yet taken a formal decision whether we will extend that more widespread. To date I am unaware of the operational success of this scheme but I will be happy to provide that information separately to Mr LEE. (Annex III) I would also, if I may, Mr President, just like to correct an impression. I do not believe that I did say that the increase in the number of cases over the past three years was not a cause for concern. I think I just reported the numbers. I think the involvement of any youngsters in either triad activities or drugs is a lamentable situation and one which is a cause for concern.
MR MOSES CHENG: Mr President, paragraph (b) of the answer furnished by the Administration says, and I quote, "the police monitor the triad situation in schools using officers in District School Teams to liaise directly with the school authorities". Those of us who are connected with school work know very well that this may not be the most effective way for the very obvious reason that school authorities would not normally be too prepared to volunteer information. Would the Secretary advise whether the scheme entailing the direct involvement of police officers in schools has been continuing or has been dropped because of lack of manpower?
SECRETARY FOR SECURITY: Mr President, the District School Teams are still in operation. I accept the point that uniformed officers visiting schools sometimes can be counterproductive. But from personal experience, I find that it can also be of considerable help. Students frequently find themselves in difficulties and seek the assurance of an authority figure and frequently do report to them. There are 17 such District School Teams now operating throughout the territory. The structure of each team involves a sergeant and an average of four constables. They make regular visits to schools in their
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districts. The frequency of these visits obviously varies from district to district but it is probably true to say that most schools are visited at least once a month. Problem schools are visited much more frequently.
MR ERIC LI (in Cantonese): Mr President, there is absolutely no mention of the family, particularly the role of parents of students, in the main answer given by the Administration. Is it because the Administration thinks that the parents can offer little help in this matter? If not, has the Administration considered ways of getting the parents involved?
SECRETARY FOR SECURITY: Mr President, no, I hope their exclusion from my main answer did not imply that parents cannot play a part. Parents can play an important part. Last year, acting on the advice of the Action Committee Against Narcotics, the Narcotics Division of the Security Branch began a series of visits to schools so that they could talk to both parents and students to advise them of the dangers of becoming involved with drugs and drug trafficking. It is fair to say, Mr President, that the response has not been overwhelming but nevertheless we are still continuing to try and encourage evening sessions involving both parents and students in the school. The reason for the introduction of this project was that we observed that in places outside Hong Kong the success rate increases dramatically when both parents and their children are involved in these discussion sessions. So I agree with the questioner that there is a major role for parents.
DR PHILIP WONG: Mr President, I am happy to note that protective arrangements can be made with the concern and involvement of parents and students. Would the Secretary inform this Council whether there have been instances where such protective arrangements fail resulting in injuries to the students?
SECRETARY FOR SECURITY: Mr President, I am afraid I do not have the answer to that question, but I will be happy to provide an answer in writing. (Annex IV)
DR CONRAD LAM (in Cantonese): Mr President, the Administration says in its main answer that Crime Reports are available in all district offices. My experience as a District Board member for many years tells me that very few residents would go to district offices to get these forms. Will the Administration consider distributing these forms to Mutual Aid Committees of housing estates; if not, why not?
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SECRETARY FOR SECURITY: Mr President, the answer is yes. We are considering the extension of these crime reports on a much wider basis to make them much more available to the public. The crime reports themselves have been a measure of success in our fight against drug trafficking and crimes in general. So we are actually considering more widespread use of them.
MRS SELINA CHOW (in Cantonese): Mr President, we understand that very often when such a problem arises, the co-operation of the school, particularly that of a headmaster is very important. However, we know that headmasters and schools very often are unwilling to co-operate or do not want to disclose such problems for fear of damaging the reputation of their schools. Has the Administration, the police or the Education Department done anything to change this attitude of the schools? And on the question of confidentiality, if schools do have such problems, are there ways to dispel their worries so as to encourage reporting of such activities?
PRESIDENT: If you could answer that, Secretary.
SECRETARY FOR SECURITY: Yes, Mr President. If I may just take the second part of the question first. The answer to that is yes. We guarantee confidentiality when we get these reports in order to protect the student and his family and the school. As regards the first part of the question, I did mention in my main reply that a working group on triad and triad related activities in schools has been set up in the Education Department. This working group is chaired by a Senior Assistant Director of Education and comprises representatives from the Education Department, Social Welfare Department and the Royal Hong Kong Police Force. The working group's main aims are to review the manner in which discipline and guidance teachers and school social workers and the police are dealing with the triad activities or suspected student triad involvements in schools and to consider ways of supporting their work and the liaison between them. This working group therefore attempts to overcome what I think is a natural barrier that people are reluctant sometimes to come forward. They are reluctant for two reasons. First of all, because they think they might protect the students by not bringing them into contact with the authorities. This is a mistaken belief. Bringing them into contact with the authorities provides the student and his family with help and we are trying to overcome that. The second thing is that the working group attempts to advise discipline and guidance teachers in schools of the necessary technique and information to enable them to deal with students who are troubled with either a personal drug abuse problem or with being approached by triads to get involved in drug trafficking. We are trying to overcome the problem that the Honourable Member has identified.
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MR JAMES TO (in Cantonese): Mr President, it is mentioned in paragraph (b) of the Secretary's reply that officers in District School Teams will liaise directly with the school authorities, in order to identity triad elements active in recruitment in schools. If I remember correctly, the Secretary said a few months ago that there was no indication of active triad recruitment in schools. Are the two statements contradictory? May I be provided with supporting statistics to show that I have a cause for concern. Since drug trafficking is hard to prove, the number of convictions is very small. Can the Administration provide the statistics on the number of students arrested in the past three years for possession of drugs (because they may be in possession of large quantities of drugs, but the Authority may not be able bring a charge of drug trafficking against them) so as to let the public better understand the severity of the problem of students involvement in drug trafficking and drug-related matters?
PRESIDENT: There are two questions there, Secretary. Mr TO, you have two questions.
MR JAMES TO (in Cantonese): Mr President, the first question is very simple. May I know if the two statements are contradictory?
SECRETARY FOR SECURITY: Mr President, I do not think that the two statements are contradictory. The answer, as I recall, was to a question several weeks ago which was about the extent of triad activity in schools. The answer, as I recall, was that there was no triad activity but that we were taking steps to combat it along the lines that I have indicated in my main reply. As regards the second part of the question, the number of young persons under the age of 21 who were prosecuted for drug offences increased from 606 in 1990 to 651 in 1991 and to 823 in 1992. Most of these offenders were prosecuted for minor drug offences which included simple possession or smoking or consumption of drug.
Written answers to questions
Glycol ethers
7. DR HUANG CHEN-YA asked: In view of a study conducted by the University of California which found that women workers exposed to a class of chemicals called glycol ethers faced a high risk of miscarriage, will the Government inform this Council:
(a) where these chemicals are in use in Hong Kong; and
(b) whether warning or protection has been given to women workers so exposed?
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3265
SECRETARY FOR HEALTH AND WELFARE: Mr President, glycol ethers are commonly used in the screen printing industry in Hong Kong. They are added to ink as "retarders" to prevent drying and screen blockage.
Glycol ethers are among the 231 listed substances under the control of the Factories and Industrial Undertakings (Dangerous Substances) Regulations. These regulations require all listed substances to be suitably and clearly labelled on the containers with the particular risks involved and the safety precautions to be taken. Proprietors are required under the regulations to provide general safety information and training in the handling, use and storage of the chemicals and to supply protective equipment for workers handling these chemicals.
The Factories and Industrial Undertakings Ordinance also lays down provisions on the control of vapour at source, proper ventilation and good housekeeping measures.
The Labour Department has published two reference booklets on the use of chemicals at work and a leaflet on solvent hazards in screen printing. These booklets are widely distributed to proprietors and workers.
Factory Inspectors, Occupational Health Officers and Occupational Hygienists of the Labour Department in the course of their duties give advice to proprietors and workers, men and women alike, on chemical safety. Occupational health nurses of the department give talks on health hazards to workers, including known hazards from glycol ethers.
A survey on "solvent exposure in screen printing" was conducted by the Occupational Health Division of the Labour Department in 1986. This survey revealed that occupational exposure of workers to ethylene glycol monoethyl ether acetate was within the current threshold limit value (TLV) of five parts per million (ppm) and 27 miligrammes per cubic meter (mg/m3), as recommended by the American Conference of Governmental Industrial Hygienists.
As regards the recent study by the University of California, the Director of Health is contacting the University and will study the findings closely. Appropriate action will be taken as necessary.
Post offices
8. MR ERIC LI asked (in Chinese): Will the Government inform this Council: (a) of the existing planning criteria for establishing a branch post office; and
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3266
(b) when the criteria were set and whether they will be subject to a review in the near future in the light of the recent population movements and rapid development at the district level; if not, what the reasons are?
SECRETARY FOR ECONOMIC SERVICES: Mr President,
(a) The principal planning guideline for the provision of post offices is laid down in Chapter 3 of the Hong Kong Planning Standards and Guidelines, published by the Planning Department. As a general guide, post offices are to be provided so that large groups of population in urban areas can have access to facilities within 0.8 km from where they reside or work. For rural areas a distance of 3.2 km applies. Other factors to be considered include population in the proposed catchment areas which should normally not be less than 30 000 persons; the nature of the terrain over which customers must travel; physical features such as busy main roads, railway lines and so on; and the existence of any particular social need or special requirement for postal services.
The criteria serve as an overall guideline, but where circumstances justify they are applied flexibly. For example, in the urban commercial areas of Central, Wan Chai and Tsim Sha Tsui, we have recognized that heavy demand from the business community for postal services justifies a more generous provision of facilities. The provision of post offices on the outlying islands also demonstrates this flexibility. Peng Chau and Lamma Island have post offices with catchments of only 3 189 and 2 943 people respectively. For rural areas where the population is distributed more sparsely, the Post Office operates a fleet of mobile post offices to cater for demand.
(b) The planning criteria for post office provision were drawn up in 1975 and have since been regularly reviewed. The latest review was completed in January 1992, and concluded that the existing planning standards, flexibly applied, serve the community well.
Within these criteria well-established procedures exist for ensuring that shifts in population and new residential development are taken fully into account in the planning of new post offices. For example in 1992, four new post offices were opened to serve new town developments: in Sha Tin (Kwong Yuen), Tai Po (Wan Tau Tong Estate), Tsuen Wan (Bayview Garden), and Tin Shui Wai (Tin Yiu Estate). In 1993, we plan to open new post offices which will serve the Ma On Shan and Tseung Kwan O areas.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3267 Consultancies awarded by Environmental Protection Department
9. MR GILBERT LEUNG asked (in Chinese): Will the Government inform this Council:
(a) what criteria are being used by the Environmental Protection Department (EPD) in determining whether the investigation, design and monitoring work of a certain project should be taken by its own staff or contracted out to a consultancy firm;
(b) of the total number of such contracts that have been awarded by the EPD in the past three years; the total cost involved and the actual amount of payments made in respect of these contracts in the past three years; the titles of those projects the consultancy fees for which exceed $5 million each; and
(c) what the expenditure would have been if such projects had been taken up by the EPD staff?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,
(a) The criteria used by the Environmental Protection Department (EPD) in determining whether consultants should be employed to undertake certain work or projects are:
(i) the availability of existing resources within EPD to undertake a particular project; and
(ii) the availability of expertise within EPD required for a particular project.
Under the first criteria, a consultancy may be required to provide extra staff for a particular project or to carry out work to meet prescribed time scales and cope with fluctuating demand for resources. The second criteria, which accounts for the majority of EPD consultancies, would require consultants to provide specialist expertise, to give independent advice or to permit a multi disciplinary approach.
(b) The total number of consultancies awarded directly by EPD in the past three years in 40, at a total cost of $380 million. Of this figure, $266 million is for consultancy fees and the remainder for investigations. Expenditure to date on these projects is $175 million on fees and $87 million on investigations. Details of consultancies with fees exceeding $5 million are at Annex.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3268
(c) As explained in (a), consultants are not engaged if suitable EPD staff are available to provide the same service or expertise against the same deadlines. It follows therefore that existing EPD staff could not have carried out the 40 studies over the last three years for which consultants were employed. A comparison of the cost of these consultancies with the expenditure that would have been incurred if the projects had been undertaken by EPD staff is not possible therefore. Clearly, more staff at greater cost would have been required and since there are limits to the number of additional staff that can be provided, delays to many of the projects would have occurred.
Annex
List of Consultancies Exceeding $5 million in Past Three Years
Title Fees ($M) Strategic Sewage Disposal Scheme
Strategic Sewage Disposal Scheme Modelling for Oceanic Outfall
Sewerage Master Plans
21.4
Yuen Long and Kam Tin 12.35 North and South Kowloon 11.39 Chai Wan and Shau Kei Wan 8.10 Tuen Mun 9.65 Wan Chai East and North Point 7.30 Aberdeen, Ap Lei Chau, Pokfulam 5.95 North District 6.19 Outlying Islands 7.15 ------- 68.08
Solid Waste Projects
Chemical Waste Treatment Facility Phase III 14.30 Core Consultancy to Privatize Landfills 8.22 South East New Territories Landfill 22.22 North East New Territories Landfill 8.76 West New Territories Landfill 15.90 Shatin Refuse Transfer Station 5.62 Island West Transfer Station 8.91
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3269
Title Fees ($M)
West Kowloon Transfer Station 8.00 Yuen Long Transfer Station 6.31 North Lantau Transfer Station 5.59 Urban Landfill Restoration 7.67 Tsuen Kwan O Landfills Restoration 5.88 Integrated Sludge Disposal Strategy 5.50 -------- 122.88
Environmental Monitoring
Environmental Monitoring and Audit of West Kowloon Reclamation
Non-ACP projects
23.96
10. MR FRED LI asked: With regard to the temporary financial arrangements introduced in respect of non-ACP projects for the financial year 1992-93, will the Government inform this Council of:
(a) the projects for which tenders had been called in advance of Finance Committee upgrading such projects to Category A and the estimated costs of each project;
(b) the projects which had been directly submitted to Finance Committee for upgrading to Category A rather than via Public Works Sub-Committee and the project sum of each; and
(c) the amount paid to contractors and consultants under the "special year-end payment arrangements" based on estimation by heads of Works Departments on works due for payment by the end of March 1993?
SECRETARY FOR THE TREASURY: Mr President, following the issue of the memorandum from the Secretary for the Treasury to departments announcing temporary financial arrangements to be introduced in respect of non-ACP projects:
(a) no tenders have been called in advance of Finance Committee upgrading the projects to Category A;
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3270
(b) within recent months, only one project has been submitted directly to Finance Committee for upgrading to Category A, without previously being submitted to the Public Works Sub-Committee. This was at the last meeting of FC and dealt with the purchase of office accommodation at cost of $1.6 billion. Such items have always been submitted directly to FC; and
(c) the Government's accounts do not permit year-end payments made under the temporary arrangements to be separately and readily identified, nor are year-end payments made for completed projects. These payments are merely an acceleration of payments which have or should have fallen due by the end of the financial year, and are made on the express condition that they are adjustable against subsequent payments due to the contractors. It is roughly estimated that these year end payments amounted to some $2 billion.
Village primary schools
11. MR WONG WAI-YIN asked (in Chinese): Since a number of village primary schools in the New Territories have been closed in recent years, will the Government inform this Council:
(a) of the current policy on village primary schools;
(b) of the number of village primary schools closed during the past three years and to be closed in the next academic year; the reasons for their closure and the arrangements to enable the affected students to pursue their studies; and
(c) whether consideration has been given to using such school premises for other purposes; if so, what specific plans are in place and if not, what the reasons are?
SECRETARY FOR EDUCATION AND MANPOWER: Mr President, the answers to Mr WONG's questions are as follows:
(a) The current policy on village or rural primary schools is to replace those operating less than six classes by larger schools serving a wider catchment area, wherever possible. The small schools are not considered educationally viable in terms of facilities and the ability to deliver a broad curriculum.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3271
(b) Twenty rural schools were closed during the three calender years 1990 to 1992. Another five are scheduled for closure in 1993. Like those already closed, the five are all very small rural schools enrolling only a few pupils. All affected pupils have been or will be placed in other schools in the vicinity.
(c) Upon closing a rural school, the Education Department will first consider other possible educational uses for the premises, such as special schools or teaching centres. If the Education Department has no further use for them, the building and the land will become available for allocation to other users by the District Lands Office concerned. Present uses of former rural schools include village offices, social and recreation centres for villagers, study rooms and activity centres for scouts.
Charging for domestic potable water
12. MR TAM YIU-CHUNG asked (in Chinese): As the charges for potable water supplied to domestic premises are currently calculated according to a tiered charging system, households living together in an old tenement building and sharing a common water meter are subject to higher water charges for the same amount of water consumed. Will the Government inform this Council what measures will be taken to enable such households to be fairly charged for water consumption?
SECRETARY FOR WORKS: Mr President, the present tiered charging structure for domestic potable water is applicable on the same basis to all households (flats) in a residential building. Householders sharing a common water meter in an old tenement building are treated no differently than other registered consumers. Each such householder is entitled to a free allowance of 14 cubic metres of water, that is, the same allowance provided to individually meter households.
Where, for example, four households use different amounts of water, those sharing communal meters may actually be charged less than those using separate metering. This is because common-metered users are automatically given the whole 14 cubic metres free allowance, whereas those separately metered are given actual usage, up to a maximum of 14 cubic metres. An illustrative example is attached.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3272 Communal meters
Illustration
1. Communal meter (flats A-D)
Total
Consumption Cu.m
Unit Charge HK$
Consumption Cu.m
Charge HK$
1st 14x4 free 56 -
next 35x4 3.58 113 404.54 next 21x4 5.55 - -
Remainder
(above 280)
2. Separate meters
7.78 - - 169 404.54
Consumption Cu.m
Unit charge HK$
Flat A
Cu.m HK$
Flat B
Cu.m HK$
Flat C
Cu.m HK$
Flat D
Cu.m HK$
Total charge Cu.m HK$
1st 14 free 12 - 14 - 14 - 14 - 54 - next 35 3.58 - - 16 57.28 35 125.3 35 125.3 86 307.88 next 21 5.55 - - - - 6 33.3 21 116.55 27 149.85
Remainder (above 70)
- 7.78 - - - - - - 2 15.56 2 15.56
---- ---- ---- ------- ---- --------- ---- --------- ----- --------- 12 - 30 57.28 55 158.60 72 257.41 169 473.29 == == == ==== == ===== == ===== === =====
Electricity consumption
13. MR ALBERT CHAN asked (in Chinese): Will the Government inform this Council:
(a) whether there has been any discussion with the two power companies on the introduction of concessionary charges for electricity consumption at night to encourage the installation of an ice bank storage system in commercial buildings with a view to lowering electricity demand in these buildings during daytime;
(b) if so, what progress has been made in these discussions; and
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3273
(c) whether consideration has been given to other proposals on lowering the demand for electricity during peak hours, if so, what the details of these proposals are and what the progress is?
SECRETARY FOR ECONOMIC SERVICES: Mr President, the Government and the power companies are looking into possible means of reducing the daytime peak demand for electricity by shifting part of the load to the night-time off-peak hours. The installation of ice storage air-conditioning systems in commercial buildings may be one means of achieving such a reduction and the cost-effectiveness of installing and operating such systems in Hong Kong is currently being assessed.
In the meantime, other measures aimed at reducing peak demand have been implemented. For example, China Light and Power now offers concessionary off-peak tariffs to large power users and to the users of domestic storage-type water heaters. Further, under the terms of the new Scheme of Control Agreements negotiated recently between the power companies and the Government, the companies are required to propose ways of reducing the growth in demand for electricity and promoting greater energy efficiency. Discussions between the companies and the Electrical and Mechanical services Department have already commenced in order to determine which types of approach to energy conservation might be most appropriate for adoption in Hong Kong. These discussions complement the current public education campaign on energy efficiency drawn up by the Energy Efficiency Advisory Committee and ongoing public consultation over standards for energy use in buildings.
Container vehicle loading and unloading spaces
14. MR ANDREW WONG asked (in Chinese): The general shortage of spaces designated for container vehicles in Hong Kong has resulted in these vehicles parking and loading/unloading on-street, thereby affecting pedestrian safety and causing traffic congestion. Will the Government inform this Council of:
(a) the number and area of loading/unloading spaces designated for container vehicles, with a breakdown by district;
(b) the area normally required for each medium/heavy container vehicle for loading/unloading of goods; the number of medium/heavy container vehicles that can load/unload at any given time within the spaces designated for such vehicles in the territory; and
(c) the measures it will take to resolve the problems concerning pedestrian safety and traffic congestion caused by the container vehicles' on-street loading/unloading activities?
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3274 SECRETARY FOR TRANSPORT: Mr President,
(a) Loading and unloading spaces for container vehicles are not normally designated on street. Such spaces are usually provided within building developments or on land allocated for the purpose by means of short term tenancies (STTs). The table at Annex shows the approximate distribution by district of goods vehicle parking spaces on STT sites, together with the total area of STT land allocated for the purpose in each district.
(b) The area normally required for an articulated container vehicle to load or unload is about 16m by 3.5m. This excludes access and circulation space required at off-street locations.
STT sites are normally used for both goods/container vehicle parking and loading/unloading. Since the sites have this dual function, it is not possible to estimate accurately how many container vehicles are able to load or unload at any given time within the designated sites.
(c) Container vehicle loading/unloading activities should normally be confined to off-street sites for traffic management and safety reasons. In areas where such activities occur on street, causing pedestrian safety or traffic congestion problems, no-stopping restrictions are imposed.
Parking container vehicles on footpaths is not allowed and the police will take enforcement action when this occurs. To deter such illegal parking and to safeguard pedestrians, railings or bollards may be erected on the footpaths.
Annex
Table: Goods vehicle parking space inventory
Short term tenancy sites
District No. of spaces Area(m2)
Central and Western 202 12 000 Wan Chai 0 0 Hong Kong East 260 15 300 Hong Kong South 32 2 000 Mong Kok 0 0 Sham Shui Po 400 23 700 Yau Tsim 0 0 Kowloon City 0 0 Wong Tai sin 72 4 300
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3275
District No. of spaces Area(m2)
Kwun Tong 68 4 000 Tuen Mun 56 3 300 Yuen Long 38 2 200 Sha Tin 502 29 900 Tseun Wan 195 11 600 Kwai Chung/Tsing Yi 1 693 100 100 North 330 19 500 Tai Po 157 9 200 Sai Kung 68 4 000 Territory Total 4 073 241 100 Hong Kong Total 494 29 300 Kowloon Total 540 32 000 N.T. Total 3 039 179 800
Declaration of interests by Governor
15. MISS EMILY LAU asked: In the interest of open government and public accountability, will the Governor, as the presiding officer of the Executive Council, consider registering and declaring his interests?
CHIEF SECRETARY: Mr President, the Governor, on a purely voluntary basis, completed a register of his declarable interests on 22 April 1993.
The Governor has no declarable interests in Hong Kong.
Outstanding final accounts in respect of public construction projects
16. MR RONALD ARCULLI asked: Will the Government inform this Council of the updated position as to how many final accounts in respect of construction projects undertaken and/or supervised by the Architectural Services Department and/or the Housing Department have not been settled at the time specified in the contracts, how long have they been delayed, the reasons for the delay and how many of them will have to be resolved by arbitration or litigation?
SECRETARY FOR WORKS: Mr President, as at 28 April 1993, there are 103 final accounts in respect of construction projects undertaken and/or supervised by the Architectural Services Department (ASD) which have not been settled. Action on 86 of these accounts have been completed by ASD as required under the contracts. The final contract sums for these 86 accounts are now awaiting the contractors' agreement.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3276
The delays in agreeing to the remaining 17 accounts range from one month to 17 months. The reason for the delays is largely the time needed to verify information supplied by the contractor regarding the measurement and valuation of authorized variations. Of these 17 accounts, the one relating to stage II of Queen Mary Hospital is under arbitration. Discussions are being held with contractors on the others, with the objective of settlement other than by arbitration or litigation.
The Housing Authority's construction contracts do not stipulate that the final accounts must be agreed within a specified time. However, the contracts require a copy of the priced Bills of Variations to be submitted by the Housing Authority to the contractor within the Period of Final Measurement which is normally 12 months from completion of works.
The Housing Authority has 72 final accounts in respect of building and site formation contracts currently outstanding. Of these, Housing Department has provided the contracts with priced Bills of Variations on 63 accounts. The remaining nine cases are being processed.
The delays in nine cases mentioned above range from four months to 24 months. The main reason for the delay are the need to verify information, take measurement and evaluate the variation works for the purpose of finalizing the priced Bills of Variations.
No request for arbitration or litigation has been received in respect of the 72 final accounts. It is expected that all accounts will be settled by negotiation between the Housing Authority and its contractors.
Indoor radon levels
17. MR MAN SAI-CHEONG asked (in Chinese): An academic survey has revealed that the indoor air content of radon in new buildings is higher than that in old buildings in Hong Kong and that such a phenomenon is possibly related to the use of construction materials with higher radioactive contents in Hong Kong during recent years. As members of the public may suffer from lung cancer due to inhalation of excessive radon, will the Government inform this Council of the following:
(a) whether it has conducted any surveys in this respect; if so, what the results are;
(b) if not, whether consideration will be given to conducting comprehensive surveys to study if construction materials contribute to the excessively high indoor air content of radon, which is hazardous to public health; and
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3277
(c) if the survey result is positive, whether appropriate measures will be worked out and adopted on the principle of according priority to protection against radioactive effects in order to safeguard public health?
SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS: Mr President,
(a) The Government has not seen the academic survey referred to in the question. In 1988 and 1989, two small scale surveys on indoor radon levels were conducted by the Environmental Protection Department (EPD). The results showed that about 30% of the premises sampled exceeded a widely accepted international radon guideline of 200 Bq/m3 (Becquerel per cubic metre). There is no significant indication that newer buildings have higher radon levels. However, in view of the small sample used in the EPD surveys, the results may not be representative of all buildings in Hong Kong.
The results of two surveys conducted by the Hong Kong Polytechnic in 1990 and 1991 showed that radon levels in sampled premises were lower than the international guideline. The results of a survey conducted by the University of Hong Kong (HKU) last year are not yet available to EPD.
Tests have also be conducted by EPD on the local granites generally used in mixing concrete for buildings. The average radioactivity level was found to be about 370 Bq/kg, which is somewhat higher than levels obtained in similar studies in Germany and Spain (about 310 Bq/kg).
(b) The Government believes that granites are the main cause of the slightly higher radon levels found in the limited EPD surveys and tests. However, to provide more information on the subject, an extensive survey is being conducted jointly by HKU and EPD. This survey will cover some 1 500 sites in domestic, commercial, industrial and school premises. The results are expected to be ready by the end of this year.
EPD is also collaborating with the tertiary institutions to investigate the effectiveness of various radon control measures.
(c) When the results of the latest survey and studies have been assessed, Government intends to issue an information pamphlet on measures to mitigate radon levels in buildings in Hong Kong. The pamphlet is likely to be issued to the public early next year.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3278 HIV-infected haemophiliacs
18. DR CONRAD LAM asked (in Chinese): As the Legislative Council has already approved the provision of $350 million pledged by the Financial Secretary for assisting haemophiliacs who have been infected with HIV through the transfusion of contaminated blood products, will the Government inform this Council:
(a) how and when the fund is expected to be made available to these haemophiliacs;
(b) whether urgent assistance would be provided to haemophiliacs who are in urgent need of help; if so, what form of assistance would be offered; and
(c) if not, what the reasons are for not providing such assistance?
SECRETARY FOR HEALTH AND WELFARE: Mr President, following the first meeting of the Council for the AIDS Trust Fund on 20 April, the Secretary to the Council has been in touch with prospective claimants with the assistance of their attendant doctors. As soon as claims are validated by the Council and approved, the Secretary will contact the claimants again to arrange payment in a manner convenient to the recipients. We expect the first batch of payments to be made shortly after the Council's next meeting on 17 May.
The rates of payment to eligible claimants are as follows:
(A) For the directly infected
(i) Married with dependent children HK$1,000,000 (ii) Married without dependent children HK$750,000 (iii) Single HK$600,000 (B) For an infected spouse or child of the above HK$300,000
(C) For the family of a victim who has died
and not eligible for any of the above HK$300,000 Any requests from haemophiliacs for urgent assistance will be considered.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3279 Visas in BDTC passports
19. MR TIMOTHY HA asked (in Chinese): The Government has indicated its intention to introduce a phased programme to replace all the British Dependent Territories Citizen (BDTC) passports, currently held by over 3 million Hong Kong citizens with British National (Overseas) passports before 1 July 1997. When the BDTC passports are replaced, valid foreign country visas carried in the existing BDTC passports will automatically be invalidated. Will the Government inform this Council whether arrangements would be made with various consulates in Hong Kong to work out a simple and easy procedure for transferring the visas from BDTC passports to their replacement passports so as to minimize loss and inconvenience to the affected BDTC passport holders and, if such arrangements are not being contemplated, what the reasons are?
SECRETARY FOR SECURITY: Mr President, a cross-linking service is available for holders of British Dependent Territories Citizens passports to enable them to continue to use valid visas in their old passports after renewal or after replacement by a BN(O) passport. Cross-linking is an endorsement made in the new passport, stating that the holder has previously travelled on a passport which bears a valid visa; the number and issue date of the old passport are also stated. At the same time an endorsement is made on the old passport; it states that the old passport is extended by the issue of the new or replacement passport, with the number and issue date of the new passport specified. A fee of £7.5, chargeable under the Consular Fees Act, that is about HK$89 is at present charged for this service.
About 160 BDTCs have so far used this service to extend the use of valid visas in their old passports for entry into foreign countries, such as the United States, without any problem.
"Hong Kong Tax Cases"
20. MR PETER WONG asked: Will the Administration inform this Council why the next issue of the Hong Kong Tax Cases has not been published since the last issue in August 1991 and what the target date is for publishing the next issue?
SECRETARY FOR THE TREASURY: Mr President, the present practice is for a supplement to the Hong Kong Tax Cases to be published when sufficient materials have been accumulated to make printing worthwhile.
Preparatory work for the publication of cases on hand is in progress. The next supplement will be available in August/September this year.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3280
It should be noted that most of the tax cases not yet published in Hong Kong Tax Cases have already been reported in the Hong Kong Law Reports.
First Reading of Bills
LEGAL PRACTITIONERS (AMENDMENT) BILL 1993
MOTOR VEHICLES (FIRST REGISTRATION TAX) (AMENDMENT) (NO. 2) BILL 1993
PNEUMOCONIOSIS (COMPENSATION) (AMENDMENT) BILL 1993 PILOTAGE (AMENDMENT) BILL 1993
Bills read the First time and ordered to be set down for Second Reading pursuant to Standing Order 41(3).
Second Reading of Bills
LEGAL PRACTITIONERS (AMENDMENT) BILL 1993
THE ATTORNEY GENERAL moved the Second Reading of: "A Bill to amend the Legal Practitioners Ordinance."
He said: Mr President, I move that the Legal Practitioners (Amendment) Bill 1993 be read a Second time.
The principal object of this Bill is to provide a statutory framework, in the Legal Practitioners Ordinance, for the admission and regulation of foreign lawyers and foreign law firms in Hong Kong. It would replace the present administrative arrangements that govern the entry of foreign lawyers and law firms into Hong Kong. It is clearly inappropriate that the admission and regulation of a considerable number of foreign lawyers should be dealt with purely by administrative means, in distinction to local lawyers whose admission and regulation are laid down in the Legal Practitioners Ordinance enacted by this Council.
It is the Government's policy to encourage the development of Hong Kong as a centre for the provision of legal services, so that those doing business in or through Hong Kong have access to high quality multi-jurisdictional legal advice. Foreign lawyers and law firms play an important part in that development, adding to the impressive range of legal services already available from local lawyers. There are some 29 foreign law firms and over 180 foreign lawyers now working here.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3281
The Bill requires foreign lawyers and foreign law firms to register with the Law Society. Only foreign lawyers and foreign law firms registered with the Law Society, as well as solicitors and barristers admitted to practise in Hong Kong, will be permitted to practise foreign law. Foreign lawyers and foreign law firms will be able to form associations with local law firms, and be able to share office space, personnel and fees. This measure will benefit local and foreign firms, and the client, who can now obtain his legal services at one place. Foreign lawyers will be subject to the Law Society's rules of conduct and disciplinary powers. Under subsidiary legislation to be made under powers contained in the Bill, a foreign lawyer will not be able to practise Hong Kong law. Further, the subsidiary legislation will allow a foreign law firm, after practising in Hong Kong for at least three years, and where all of the partners in Hong Kong are admitted to practise in Hong Kong, to establish a Hong Kong practice.
Mr President, the Bill was preceded by and generally gives effect to proposals by the Law Society in its October 1991 Report on the Regulation of Foreign Lawyers and Foreign Law Firms. These proposals were the subject of consultation amongst Chambers of Commerce and foreign law firms in Hong Kong, and received a broad measure of support. There has also been consultation on the Bill in its draft form, which has received wide support.
The Bill would also enable foreign lawyers to qualify as local lawyers, thus enabling those foreign lawyers who wish to practise Hong Kong law to do so, as Hong Kong lawyers. Foreign lawyers will be able to so qualify on the basis of objective, non-discriminatory and competency based criteria. Before admission, foreign lawyers, whether from a common law or a non-common law jurisdiction, will be subject to a transfer test administered by the Law Society.
I would now like to mention a second aspect of the Bill. Mr President, there is much public disquiet at the prevalence of touting and improper commission-taking within the legal profession. These insidious and unprofessional practices attack the administration of justice and the rule of law by depriving citizens of their right to choose their own solicitor and have access to him or her, by greatly increasing the cost of legal services to the public, and by attracting undesirable elements to prey on the unsuspecting client. The Administration and the legal profession are determined to eradicate these practices. An important part in that fight is the proposal in this Bill that would empower a Law Society inspector to require a solicitor to produce all relevant documents to ensure that the Society's rules for good professional conduct have been followed. I should add that the Law Society's new Practice Rules to strengthen its power to deal with touting were gazetted last Friday.
Finally, Mr President, the Bill contains a number of minor amendments to the principal Ordinance to ensure that it is up-to-date, fulfills the needs of the profession, and assists in the efficient administration of the Law Society.
Bill referred to the House Committee pursuant to Standing Order 42(3A).
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3282
MOTOR VEHICLES (FIRST REGISTRATION TAX) (AMENDMENT) (NO. 2) BILL 1993
THE SECRETARY FOR THE TREASURY moved the Second Reading of: "A Bill to amend the Motor Vehicles (First Registration Tax) Ordinance."
He said: Mr President, I move that the Motor Vehicles (First Registration Tax) (Amendment) (No. 2) Bill 1993 be read the Second time.
Objectives of Bill
The Bill now before Honourable Members has four objectives. First, and most important, it seeks to protect the public revenue by preventing a significant form of tax avoidance. Secondly, the Bill will clarify, for the first time, who is liable to pay First Registration Tax (FRT) and enable the Government to enforce the law effectively. Thirdly, it will create a "level playing field" for motor vehicle distributors and so guard against the possibility of individual dealers enjoying an unfair advantage in their businesses. Finally, it will allow the public for the first time to know how much tax they are paying when they buy a vehicle and the basis on which the tax is calculated. I will deal briefly with each of these objectives in turn.
Tax avoidance
Under the existing Ordinance, the amount of FRT payable on a vehicle is now calculated on the basis of its cost, insurance and freight (CIF) value. The primary objective of the Bill is to close a loophole whereby motor vehicle dealers are able lawfully to under declare the CIF value of their vehicles in order to reduce the amount of FRT payable. The Government has analysed and compared the CIF value and marked prices of several makes of car over the period 1984 to 1991. Whilst the CIF value of most models has gradually increased over this period, the CIF value of some models has remained unchanged, or increased at a much slower rate. There is thus at least prima facie evidence that CIF values may be under-declared. The Government has also noted the possibility of arrangements under which an overseas company can sell vehicles to a local associate at a discount. The latter can then inflate the sale price to cover the full value of the vehicles. The declared, taxable CIF value of the vehicles can thus be artificially depressed and the tax liability of the company group as a whole reduced. The present Ordinance does not allow the Government to tackle avoidance schemes of this kind.
Enforceability
FRT is an important instrument of both fiscal and transport policy. Our FRT system must therefore be properly enforceable and must set out clearly the various responsibilities of all parties concerned. The present Ordinance is deficient in this respect. In comparison with other tax legislation in Hong Kong, the Ordinance fails to provide the Government with adequate powers to
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determine and enforce tax liability. The Commissioner for Transport, for example, is not empowered to assess a vehicle's CIF value independently. Nor is a straight-forward under declaration of CIF value an offence under the Ordinance. The Ordinance does not even place a specific obligation on any particular person to pay the tax. The second objective of the amending Bill, therefore, is to remedy these weaknesses, in order to ensure that the Ordinance can achieve its policy objectives.
A level playing field
Because the present legislation leaves room for tax avoidance, and is deficient in its provisions to counter tax evasion, individual dealers who abuse the system can enjoy an unfair competitive advantage over the majority who abide by the spirit of the law. The third objective of the Bill, therefore, is to ensure that all dealers can operate on the same basis. By limiting the scope for avodiance and evasion, the Bill will create a level playing field amongst almost all the nearly 40 motor vehicle distributors in Hong Kong.
Public transparency
Under the present Ordinance, the purchaser of a motor vehicle has no means of ascertaining the amount of tax he has to pay or its relationship to the purchase price of the vehicle. This is clearly unreasonable. As a general rule, a taxpayer should be entitled to know the amount of tax for which he is liable and the amount of tax which he has paid. The fourth objective of the Bill is to bring the Ordinance into line with other tax legislation in Hong Kong by giving the individual the right to know the amount of tax which he is paying when he buys a new car.
The new system
In order to achieve these objectives, we first examined the possibility of retaining CIF as the basis of calculation of FRT. However, even if the Commissioner for Transport were empowered to determine the CIF value of a vehicle, it would be difficult or impossible for him to prove that the value quoted in a shipping document, for example, was invalid and that some other value should be substituted. We came quickly to the conclusion that tinkering with the existing Ordinance would be inadequate to deal with its many deficiencies and that a different approach was called for. This new approach has four main features.
Registration of car distributors
First, the Bill before Members will require any person who carries on the business of importing and distributing motor vehicles for use in Hong Kong to register with the Commissioner for Transport. This is a basic requirement to ensure that the Government is aware of the extent of the motor vehicle market
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3284 and as a means of monitoring the unauthorized sale of vehicles for use in the territory. Calculation of FRT
Secondly, a registered distributor will have to publish a list of the retail prices of all makes of motor vehicle which he is offering for sale. The FRT on each vehicle will be calculated on the basis of this published list price, and it will be an offence to sell the vehicle at a price higher than the published value. I emphasize that this in no way constitutes interference with the free market or an attempt at price control by the Government. Not only will dealers be free to sell vehicles at prices lower than the published value, if they so wish, but they will also be able to increase the price at any time, provided that they notify the Commissioner first. Publication will provide the critical information from which the Commissioner will be able to determine, as a matter of fact, the proper amount of FRT to be paid.
When a vehicle is sold, the distributor and the purchaser will sign a form setting out the published retail price and the actual purchase price of the vehicle. The purchaser will thus be formally advised of the share of the purchase price attributable to tax. The form indicating the declared value will be delivered to the Commissioner. In an exceptional case where there is no published retail price — for example, when an individual imports a designer's collection item not available for sale in ordinary markets — the Commissioner will have the power to determine the level of FRT, having regard to the retail price in the place of origin of the vehicle and other relevant factors.
Fair operation of the system
To ensure that the system operates fairly, the Bill will empower the Commissioner or public officers authorized by him to search for and examine records relating to the importation and sale of motor vehicles. This is not a draconian measure. Comparable provisions are in fact essential to the effective enforcement of any tax legislation. The Bill will merely bring the FRT system into line in this respect with the provisions in, for example, the Dutiable Commodities Ordinance and the Inland Revenue Ordinance.
New schedule of rates
As I have explained, Mr President, the primary purpose of the Bill is to protect the integrity of the FRT system. It is not to raise additional revenue. Since the published retail price will include not only the CIF value but also other incidental costs and the profit element, to maintain the present rates of FRT would significantly increase the cost of cars to ordinary purchasers.
We have therefore devised a new schedule of rates, based on a sliding scale of published retail prices. This schedule is designed so that the effect of the new legislation, taken as a whole, will be almost "revenue-neutral". For
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models where the CIF value is now under-declared, the FRT payable under the new scheme may, of course, increase with a resultant benefit to the general revenue. The price payable by buyers of other vehicles may rise or fall marginally, depending on the pricing structure adopted by individual distributors.
While the Bill will therefore generally be "revenue-neutral", the Government will in future be able to raise or lower the rates set out in the schedule, whether for fiscal or transport policy reasons, with greater confidence that the intended effect of any such adjustment will be achieved, and that the planned amount of revenue will be collected.
The Bill
I turn now, Mr President, to the provisions of the Bill itself.
Clause 3 substitutes 10 sections for the existing sections 3 and 4. The new section 3 requires importers and distributors of motor vehicles to register with the Commissioner. Having registered, under new section 4, importers are required to file returns on the importation of motor vehicles.
The proposed new section 4A requires distributors to publish a retail price list for all types and models of vehicle distributed by him. This becomes the maximum price at which motor vehicles of that make and model can be sold and is the figure on which the FRT on new motor vehicles is calculated. New section 4B requires the distributor and the person applying for first registration to declare the price paid for the purchase of the motor vehicle.
The new section 4C sets out the basis on which the tax is actually calculated, while the proposed section 4D provides the requirement for the tax to be paid. The new section 4E allows the Commissioner to authorize officers to carry out investigation and enforcement procedures under the amended Ordinance.
The new section 4F gives the Commissioner and authorized officers powers in relation to investigation of possible schemes to avoid or minimize payment of FRT. The Commissioner of Customs and Excise will be authorized to make assessments, to maintain a record of the returns on importation of vehicles and to carry out investigations. The new section 4G creates offences for breaches of the Ordinance. Offenders are liable on conviction to a fine of up to $500,000 and imprisonment for 12 months. In respect of certain offences, a person convicted is also liable to pay double the amount of tax originally due.
Clause 4 introduces the schedule of new FRT rates, based on the class of motor vehicle and the published retail price. As I said earlier, this is to ensure that the amendments are by and large revenue-neutral in their effect.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3286 The practice note
If the Bill now before Members is enacted, the Commissioner for Transport will issue a Practice Note to clarify how the Bill will operate in practice. This Note will summarize the objectives of the Bill now before Honourable Members and describe the main elements of the new system. It will set out clearly the responsibilities and procedures to be followed by vehicle distributors and purchasers, as well as the roles of both the Commissioner for Transport and the Commissioner of Customs and Excise. It will clarify how the Commissioner for Transport will use his discretion in interpretating key provisions of the law. For example, it will make clear that basic accessories such as air-conditioners and stereo systems will not be made subject to tax. A draft of this Practice Note will shortly be made available to Honourable Members.
Concluding remarks
In conclusion, Mr President, the Bill before Honourable Members will close a major existing tax loophole, provide a level playing field for motor vehicle dealers and thus protect both the public revenue and the consumer. Although it may result in small fluctuations in the price of some individual cars, the overall effect of the Bill will be virtually "revenue-neutral". In order to ensure that the Bill operates smoothly, a Practice Note will give guidance to vehicle distributors and members of the public on how the detailed provisions of the law will be interpreted and enforced. We have already begun a useful dialogue both with vehicle distributors, through the Motor Traders Association, and with the Consumer Council. This dialogue has proved most helpful to us in drawing up the draft Practice Note and we will continue to work with the industry and with other concerned parties to ensure that the new system of FRT works in the interests of the entire community.
Mr President, with these remarks I commend the present Bill to Honourable Members.
Bill referred to the House Committee pursuant to Standing Order 42(3A).
PNEUMOCONIOSIS (COMPENSATION) (AMENDMENT) BILL 1993
THE SECRETARY FOR EDUCATION AND MANPOWER moved the Second Reading of: "A Bill to amend the Pneumoconiosis (Compensation) Ordinance."
He said: Mr President, I move the Second Reading of the Pneumoconiosis (Compensation) (Amendment) Bill 1993.
Pneumoconiosis is a disease of the lung. Once contracted and the lung damaged, the condition is, sadly, irreversible and the health of the sufferer tends
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to deteriorate continuously. It was in recognition of the plight of pneumoconiosis sufferers that the Pneumoconiosis (Compensation) Ordinance was enacted and brought into operation as from 1 January 1981. The Ordinance set up a compensation scheme for persons suffering from pneumoconiosis. The compensation scheme is based on the principle of collective responsibility on the part of those industries in which the incidence of pneumoconiosis is highest. It is therefore funded by a levy on the building and construction and the quarrying industries, and is administered by the Pneumoconiosis Compensation Fund Board. Under the Ordinance, compensation is paid either in a lump sum or by two instalments. This has been found to be inadequate because no further relief is available to the pneumoconiosis sufferers if, as is likely, their health deteriorates further.
The Bill seeks to make a number of improvements to the compensation scheme. The most significant one is to introduce a system of monthly payments payable for the lifetime of a pneumoconiotic. Assessment for compensation will be made on the basis of physical incapacity in accordance with a formula which takes into account any likely reduction in employability or loss of quality of life.
In view of the progressive nature of the disease, a pneumoconiotic may ask to be re examined every two years. If he is found to have suffered additional incapacity, the amount of monthly payment would be increased. This applies also to pneumoconiotics who have previously received compensation under the Ordinance. It would not apply to those who, six months after the enactment of the Bill, are actively continuing proceedings in a court for damages at common law for pneumoconiosis or an appeal against an assessment of compensation under the existing Ordinance.
The Bill also provides for compensation to be given to the family members of a person who dies of pneumoconiosis. Funeral expenses would be reimbursed to any person who has incurred them for the burial or cremation of the deceased.
In addition, the new compensation scheme also provides reimbursement of expenses for the supply or use of approved medical appliances and compensation for bereavement to the family members of a pneumoconiotic who had not received any compensation prior to his death.
It is estimated that some 2 000 pneumoconiotics who were diagnosed between January 1981 and March 1993 would be able to benefit under the new scheme.
To implement the new compensation scheme, it will be necessary to increase the rate of levy charged on the building and construction and quarrying industries from 0.02% to 0.3% in 1993. I intend to move the necessary Resolution in this Council as soon as possible after the passage of the Bill. I should also give notice that a further increase in the rate of levy to 0.4% or
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0.45% may well be required in 1994, depending on the actual pattern of income and expenditure.
The improved compensation scheme envisaged in the Bill will apply, in the same way as the existing Ordinance, only to pneumoconiotics diagnosed on or after 1 January 1981. The Government has, however, not forgotten those unfortunate pneumoconiotics who were diagnosed before 1981 to have contracted the disease and who were given ex gratia payment on a once-and-for-all basis by the Government in 1981. As the Financial Secretary announced in the recent Budget debate, the Government proposes to make a grant of $100 million from the general revenue to provide further ex gratia payments to these persons at a rate of $2,200 per month for the rest of their lives. This rate has taken into account the elements of incapacity as well as the expenses for medical treatment and appliances. It is also proposed that an amount not exceeding $10,000 would be given to any person who has paid for the funeral expenses of a person who had died of pneumoconiosis. I intend to make a submission to the Finance Committee of this Council as soon as possible after the passage of the Bill to seek approval of the funds required for this purpose.
Bill referred to the House Committee pursuant to Standing Order 42(3A).
PILOTAGE (AMENDMENT) BILL 1993
THE SECRETARY FOR ECONOMIC SERVICES moved the Second Reading of: "A Bill to amend the Pilotage Ordinance."
He said: Mr President, I move that the Pilotage (Amendment) Bill 1993 be read a Second time.
The purpose of the Bill is to introduce amendments to better regulate shipping and pilotage matters within Hong Kong waters.
As our port becomes more busy, management of shipping matters gains complexity. To better cope with this, membership of the Pilotage Advisory Committee needs to be adjusted to take in a broader spectrum of experience, expertise and opinion. This, the Bill provides. The work of the Committee should benefit from membership of a more varied background.
Secondly, the disciplinary procedures for pilots involve a detailed preliminary inquiry followed by examination by a board of investigation. These procedures are essential for normal cases but they are inefficient and inflexible in the case of minor complaints where there is often no need for such elaborate procedures. In addition, the sanctions imposed by a board of investigation, namely the cancellation or suspension of a pilot's licence, are inappropriate for minor offences where a warning, caution or reprimand would suffice.
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The Bill provides for the establishment of a board of discipline to deal exclusively with minor offences. No formal judicial or quasi-judicial procedures will be involved, and the board may recommend a range of lesser sanctions. A provision for appeal is included. These measures should enable less serious incidents to be handled expeditiously, effectively and fairly.
Other provisions included in the Bill include:
(a) granting to an officer conducting a preliminary inquiry certain powers, for example, powers to call for witnesses and to demand the release of relevant documents;
(b) formalizing the current administrative arrangements whereby the Pilotage Authority may grant an extension of service beyond compulsory retirement age to a pilot for a maximum of three years, subject to satisfactory medical fitness; and
(c) designating a "dockyard approach" area at North Lantau so that ships navigating to and from docks located there will be subject to the same exemption from compulsory pilotage as the existing dockyard approach area near Tsing Yi Island.
Mr President, the proposed amendments have been formulated in consultation with the shipping industry, the Hong Kong Pilots Association and the Pilotage Advisory Committee. All parties support the proposals.
Bill referred to the House Committee pursuant to Standing Order 42(3A).
MULTI-STOREY BUILDINGS (OWNERS INCORPORATION) (AMENDMENT) BILL 1992
Resumption of debate on Second Reading which was moved on 15 July 1992 Question on Second Reading proposed.
MR ALLEN LEE: Mr President, the Bill before us aims to facilitate the formation of owners' corporations and to repeal those provisions in the existing Deeds of Mutual Covenants which are unfair to flat owners. In view of the complicated nature of the Bill and its impact on the general public the ad hoc group set up to study the Bill has spent many hours of working, scrutinizing the Bill. Altogether we have had 16 meetings and considered 22 public representations. As convenor of the group I wish to express my warm appreciation to the contributions of all the parties concerned. I would like to thank the Law Draftsman for his efficient and invaluable support in tackling the Bill.
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The immediate issue that the ad hoc group has spent a lot of effort in pressing for is the setting up of a Building Management Tribunal which will adopt informal and inexpensive procedures to deal with the disputes between property managers and flat owners as well as disputes arising generally from the provisions in the Deeds of Mutual Covenants and the Building Management Ordinance. The proposal was not included in the Bill initially despite popular demand. The ad hoc group is adamant that a tribunal for building management matters is essential to the effective operation of the Bill.
In light of the Administration's advice about the complications in the setting up of a Building Management Tribunal which can only be dealt with by a separate Bill, the ad hoc group has agreed that as an interim measure the jurisdiction of the Lands Tribunal should be extended to embrace building management matters and to consider any disputes arising from the Deeds of Mutual Covenants and the Building Management Ordinance. The arrangement, I hope, will be in place by April 1994. The need for setting up a separate Building Management Tribunal should then be reviewed in the context of the effectiveness of the Lands Tribunal in dealing with building management matters. I look forward to the Secretary for Home Affairs' comments in this regard.
Unified management of some estates is another important issue discussed by the ad hoc group. The group is of the view that such estates with complex and wide-ranging common facilities should probably be under unified management. The existing definition of "building" in section 2 of the Ordinance applies to a building of two or more levels together with the land on which it is built and any land in common ownership. We recognize that in some such estates the common parts, the communal facilities and services are not in common ownership, although they are for the common use, enjoyment and benefits of all the flat owners and occupiers. When flat owners of such estates incorporate themselves they will be unable to form one owners' corporation for the whole estate. I am glad that the Administration will propose to amend the existing definition of building at the Committee stage so as to give flat owners of such estates the option to form one owners' corporation for the sake of integral estate management.
The ad hoc group also considers that a degree of control over the management of large estates is necessary. If different phases of a large estate were allowed to employ their own management companies it would have undesirable effects on the integrity of the estate and may create problems in managing communal facilities. To address this concern a new schedule, at present blank, will be added to the Bill so that the Secretary for Home Affairs can include estates in the schedule and the estates so included must be under unified management. However, an estate would not be included in the schedule if owners holding 50% or more shares in the estate object to the inclusion.
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The Bill also introduces a procedure whereby flat owners may be able to terminate a manager's appointment. On the other hand, new section 34E(4) of the Bill enables the Secretary for Home Affairs to exclude a building from the application of the termination procedure. The Administration has explained that the provision is intended to deal with specific circumstances that warrant continued management of an estate by the developer or his appointed management company. The ad hoc group considers that there may be a need for exemption to be granted in some unforeseen circumstances but the flat owners should also have a say in the choice of management companies. Amendments will be made to include a provision in the Bill so that an application for exclusion under section 34E(4) shall not be granted if the owners holding 50% or more shares of the building object to the application. There is also a limit that the period of such exclusion will not be more than three years.
Apart from the above main issues the ad hoc group has also proposed some other amendments to the Bill which will be moved at the Committee stage. The ad hoc group realizes that even with the proposed amendments there may still be areas which need to be looked into. However Members are equally concerned that the Bill should be enacted as soon as possible in order to bring about the desired improvement in building management. The group has therefore urged the Administration to conduct a review following the enactment of the legislation to consider in the light of operational experience whether the Building Management Ordinance is efficient in furthering the better management and maintenance of private buildings.
Mr President, with these remarks I support the Bill subject to the amendments to be moved at the Committee stage.
MR TAM YIU-CHUNG (in Cantonese): Mr President, after a profusion of arguments, discussions and revisions, the Multi-Storey Buildings (Owners Incorporation) (Amendment) Bill is now set to go through the final stage of its legislative process to become law. Although this Bill is not perfect, I believe it will do the great majority of private property owners proud.
The present Bill represents an improvement on the existing Ordinance in that it confirms an owner's right of control over the management of his property. However, it has been very difficult to strike a balance and achieve smooth co-ordination between the owner's right of control over management of his property and the management company's enforcement powers in management matters. It is necessary for management companies to have a certain degree of autonomy in management, particularly those companies involved in complicated management problems. But how can management companies be given sufficient autonomy while not prejudicing the interests of the owners? This subject attracted much controversy throughout the drafting process of the Bill. After consultation among various parties coupled with an exercise in collating and balancing the views from these parties, the present Bill has been finalized in its present form with a clause 34(E)(4) included.
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Clause 34(E)(4) provides exemption of not more than three years from termination of appointment for certain management companies, unless the companies' application for exemption is objected to by owners holding between them not less than 50% of the undivided shares in the housing estate.
This exemption arrangement is questioned by many owners' committees. The response from owners of properties in Mass Transit Railway Corporation (MTRC) housing developments has been particularly strong. They have three major worries. Firstly, technically speaking, it is almost impossible for owners' corporations of sizeable housing estates to organize owners holding 50% of undivided shares to object to the management company's application for exemption. Therefore, it is indeed practically impossible for owners to prevent an application for exemption by the management company. Secondly, during the period of exemption, owners are disabled from exercising their power of terminating the appointment and stopping all management operations of a management company even if it abuses its powers. Thirdly, the Bill has not stipulated the criteria according to which the Secretary for Home Affairs will approve an application for exemption. Nor is a set of guidelines published as to what criteria to be used. People cannot help getting worried that the Secretary may be vested with too much power to protect those management companies which have close ties with the Government. It is understandable that owners of properties in MTRC housing developments will have particularly profound worries because they, on the one hand, represent owners of large housing estates while, on the other, they also represent owners of properties managed by companies which have close ties with the Government. Given that continued and unified management is essential to large housing estates and that it is a known condition for the granting of exemption, MTRC housing developments are most likely to be exempted, having regard to the special position of the Mass Transit Railway Corporation.
The tribunal to be set up under the present Bill will help towards dispelling the first two worries of owners. But since the tribunal will not come into operation until April next year, we can only wait and see how it will exercise its functions in actual practice. At present, any discussions about its functions remain at the conceptual level. As to the third worry, it is hoped that the Government will as quickly as possible formulate and publish an impartial and objective set of criteria so as to put owners at ease.
Mr President, although the Bill has not taken full account of all the opinions of property owners, it is after all a great improvement. It may not be in the interest of most of the owners if the passage of the Bill is delayed again. Therefore, taking the opportunity of the passage of this Bill, let me say that I hope the Secretary for Home Affairs will continue to have concern for owners' worries about the Bill, with a view to studying and amending in future all provisions which are unfavourable to owners.
With these remarks, I support the Bill in its amended form.
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MR EDWARD HO: Mr President, most of the people in Hong Kong live in multi-storey buildings which are owned by a multitude of owners. Therefore the passage of this Bill, which would facilitate the formation of owners' corporations to enable them to be responsible for the proper management of their own properties, is very important and it has naturally attracted immense interests from members of the public ever since a White Bill was published for public information and comment in May 1991. These interests, often diverse viewpoints from developers, property managers or individual owners, have continued unsubsided despite the fact that the Administration has made amendments to the White Bill before it was introduced to this Council as the Bill in its present form.
The points that I will be mentioning in my speech today in fact have been raised by me in the Legislative Council ac hoc group in its meeting as long ago as August of last year. Similarly, other areas of disagreement between the ad hoc group and the Administration have surfaced since around that time. Most of these disagreements were also subjects of representations that I have personally received from members of my functional constituency. Whilst I am pleased that, after many meetings with the Administration, we have convinced the Administration that most of our proposed changes would now be incorporated in the amendments at the Committee stage, I should say that it was only possible through hard work and persistence of Members of the ad hoc group. The fact that there was a strong consensus from Members was also crucial.
In particular, I would like to raise three points:
(i) Many housing projects in Hong Kong are of such sizes that in other countries they would be equivalent to townships. These projects have population of tens of thousands. They are usually divided into blocks of buildings or stages but they have shared community facilities and common infrastructure such as roads and drains. Under the Bill, owners can form owners' corporations to manage their own individual block of building. However, problems would occur if there is no proper consensus between owners' corporations of different blocks in the management and maintenance of the common facilities. Such problems, if occurred, would not only adversely affect the living environment of the residents, but they also would cause great nuisance to the public. This is a problem that I believe was not originally considered in the Bill and was one of the issues that I raised for discussion in the ad hoc group in August 1992.
I am glad that the Administration finally recognized this potential problem and has agreed that a new Schedule would be provided in the Bill whereby the Secretary for Home Affairs could include estates which must be under unified management in the Schedule. To preserve the right of the owners, such an estate would not be
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included in the Schedule if not less than 50% of the owners' shares of the estate object to the inclusion.
(ii) Due to the natural conflicting interests of developers, property managers and the individual owners, many representations, including those from members of my functional constituency, have urged for the setting up of an independent Building Management Tribunal to settle disputes between various parties. The Administration has resisted very strongly this request principally due to the reason of lack of resources. I and other members of the ad hoc group have found this reason unacceptable. If the Administration were to introduce legislation that regulate the activities of members of the public, it is not equitable that a tribunal cannot be set up to settle disputes informally and inexpensively, simply due to limitation of resources. I have reluctantly accepted the interim solution of extending jurisdiction of the Lands Tribunal to embrace building management matters and any other disputes arising from DMCs and the future Building Management Ordinance.
I note that the operation date of the provisions relating to the Lands Tribunal has not been specified and I urge that this date should be set as soon as possible and certainly no later than a year from now; and that the establishment of a separate Building Management Tribunal should still be the objective and that it should be reviewed in the context of the effectiveness of the Lands Tribunal in dealing with building management matters. I have noted that the Lands Tribunal, as it is, has great difficulties in coping with its present workload expeditiously. I would expect that the Administration would provide more resources to the Lands Tribunal in order for it to discharge its expanded duties efficiently and effectively.
(iii) Whilst it is right that owners, after forming themselves into owners' corporations, would have the right to appoint their own property managers, I would strongly urge for the setting up of a licensing system for property managers or managing companies. This is important to ensure that the required standard of property management service is provided. Licences may be graded according to the size of buildings or number of flats that the managers could handle and it should not be mandatory for small buildings to employ a licensed management company.
Mr President, due to a lack of proper management and maintenance of many buildings in Hong Kong, the appearance of our fair city in many built up areas has deteriorated to our regret. A proper standard of property management is not only important to the ordinary citizen whose ownership of a flat could be his most valuable asset, but also it is of great importance to the quality of our physical environment.
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With these remarks, Mr President, I support the Bill with the proposed amendments at the Committee stage.
MR RONALD ARCULLI: Mr President, firstly, I would like to declare my interest as a director and honorary legal adviser of the Real Estate Developers Association (REDA) of Hong Kong, one of the three component organizations of the functional constituency which I represent in this Council.
REDA made a submission in September 1992 to the ad hoc group set up to examine this Bill and had the opportunity of meeting with members of the ad hoc group on 14 September to explain our comments. We are disappointed that the final amendments tabled today do not address most of our concerns. However, I shall not repeat all of them now but I wish to refer to some points which we believe, if not properly addressed or handled upon implementation, could lead to adverse consequences affecting owners, estate managers and developers.
(1) The first point concerns the period of exemption. As it is recognized that the sizeable and complex housing estates are usually constructed in phases and therefore may take many years to complete, it would have been preferable to have retained a flexible approach to the question of exemption under the proposed subsection 4 of section 34(E) rather than setting a time limit of three years. This time limit will doubtless necessitate subsequent applications in the case of large developments taking more than three years to complete. Such an approach would not have prejudiced the rights of owners to seek a termination of the exempt status under subsection 4(B) of section 34(E).
(2) Secondly, neither the Bill in its original form nor the final amendments have specified any conditions under which a development might qualify for exemption under the new Ninth Schedule.
I would like to impress upon the Secretary for Home Affairs the importance of working out the criteria as soon as practicable and to consult the public and the relevant industries and professionals before making a decision in this respect.
(3) Thirdly, as to the new section 34(L), it is somewhat unclear whether in the event of a dispute between a manager and some of the owners of an estate, for example, over the non-payment of management fees, the manager is entirely safeguarded in respect of his costs. After all the manager is just trying to do his duty and job for the benefit of those owners who have paid.
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In conclusion, Mr President, it is indeed unfortunate that this Bill is so complex. It is difficult to balance the interests of all. I hasten to add that this is not intended as criticism of those involved in the drafting. Indeed, some of the difficulties might have been as a result of patchwork amendments from time to time over a long period. It is also a matter of regret that there are as yet no quality controls in estate management, an industry which affects all of us. There is a case for some form of registration and qualification for estate managers and this should be brought in by the industry as soon as practicable.
Mr President, subject to the above reservations, I give my qualified support.
MR LEE WING-TAT (in Cantonese): Mr President, on the whole I support the Multi-storey Buildings (Owners Incorporation) (Amendment) Bill which is tabled for this Council's endorsement today. I hope the Bill, after being endorsed, can achieve the following five aims:
(1) to enable flat owners to repossess their entitled power and establish an owners' corporation with statutory power for deciding upon management matters of their own housing estates;
(2) to improve management of private buildings through the amended Ordinance;
(3) to enable developers, flat owners and estate managers to have a better idea about their own power and responsibilities;
(4) to settle disputes that cannot be resolved between owners or between owners and estate managers through the Lands Tribunal; and
(5) to enable flat owners to understand the importance of good building management through the Government's promotion efforts.
The present Bill, which seeks this Council's endorsement today, puts an end to the practices of developers and management companies to deprive flat owners of their power of managing their own buildings. This is an improvement on the existing Ordinance. However, the amendments to this part of the Ordinance are not flawless. The main problem lies in the fact that flat owners' power of changing their management companies is greatly curtailed in some large housing estates such as the property developments atop the Mass Transit Railway (MTR) stations, where the developers take up a large share of the ownership.
Under clause 34 of the Amendment Bill, permission is given to management companies to apply to the Secretary for Home Affairs for exemption so that management companies can retain the management power of the buildings in spite of the fact that it is provided in the Amendment Bill that
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the exemption shall become null and void if over 50% of flat owners holding the undivided shares of the ownership raise objection. Mr President, in a meeting held by the ad hoc group to study the Bill, I queried the City and New Territories Administration (CNTA) whether it was aware of the fact that, notwithstanding the provision, it was virtually impossible for flat owners of most private estates to oppose the management company for its application for exemption if the developers concerned were holding a decisive or crucial share of the ownership. I also pointed out that flat owners might not be able to round up sufficient support of over 50% owners to apply for the dismissal of the manager. Unfortunately, the representative of CNTA told us that they had no data concerning the developers' share of ownership in all the private housing estates throughout the territory. Developers which hold a large share of an estate can employ their affiliated management companies. This is a serious problem and indeed a time bomb. Yet, the Bill fails to address this problem.
We learnt from the information which CNTA supplied to the ad hoc group set up to study the Bill the share of ownership of property developments atop the MTR stations. The Mass Transit Railway Corporation (MTRC) holds a decisive share of ownership of several housing estates. For example, the MTRC holds 76% of the ownership of Telford Garden, 74% of Luk Yeung Sun Chuen and 57% of New Kwai Fong Garden. As regards these three housing estates and other estates where the flat owners only hold a small share of the ownership, the proposed amendments still fail to enable the flat owners to dismiss the incompetent managers.
Mr President, under such circumstances, we must not leave the matter unsettled in this way. We have three proposals in this respect:
(1) in view of the fact that it is the Secretary for Home Affairs who has the authority to grant exemption, I propose that the Secretary should not rigidly stick to the criterion of 50% ownership when he considers whether to grant exemption to the management companies of this particular type of housing estates. The Secretary should judge the matter in terms of the total ownership and set great store on whether over half of the flat owners in a property development oppose the management company or are not satisfied with its service;
(2) since the flat owners of such housing estates are, in each and every case, unable to dismiss their managers under the proposed amendments, it is expected that there will be bound to have more disputes among the flat owners, developers and management companies than other housing estates. For this reason, I propose that CNTA should send more staff from its district offices to make frequent visits to the owners' organizations of such housing estates and, where necessary, assist the flat owners in bringing the disputes to the Lands Tribunal for settlement as well as offer them appropriate help; and
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(3) the Administration should review this part of the Ordinance half a year after its enactment. One feasible measure that offers more protection to the interests of flat owners is that the management company must obtain the consent of the developer and the flat owners who all together hold 50% of the share of the estate ownership for the renewal of its contract.
Mr President, members from the United Democrats of Hong Kong (UDHK) serving in different boards/councils have all along been concerned about the interests of flat owners in the past 10 years. We have asked for the revocation of section 2A which oppresses the flat owners so that they can have the real power to manage their own housing estates. We have organized various seminars, residents' meetings, signature campaigns and petitions. Notwithstanding that the Bill signifies a small victory of the flat owners, the Administration must review the amended Ordinance to identify its inadequacies when it is put into effect and make the necessary amendments after a period of time. The UDHK will certainly stand on the side of the flat owners and continue to strive for them the reasonable rights to manage their buildings.
These are my remarks.
MR ERIC LI (in Cantonese): Mr President, I basically agree that the Multi-storey Buildings (Owners Incorporation) (Amendment) Bill 1992 is generally welcomed by flat owners. As a matter of fact, the Bill has been dragging on for a rather long period of time and we should not keep on prevaricating. Here I must point out one thing in particular. Clause 34(E)(4) of the Bill stipulates that, in any particular estate, no less than 50% of flat owners' signatures are required if owners are to raise objection against the Administration for exempting developers and management companies from termination of appointment. To the flat owners, such an amendment is merely one that consoles them with false hopes.
It is an extremely harsh requirement for flat owners to obtain support of flat owners who have between them 50% of the share of an estate before they could raise objection against the Administration's exemption to the estate management company. Judging from practical experiences, management companies which might apply for exemption are usually those managing large housing estates with not less than several thousand flats. The flats of such large private housing estates are often used by people as investment instrument and subject to intense speculation. As a consequence, it is not uncommon for flats left vacant or being let out. And this would give rise to the following situations:
(1) The owners may not register the transactions with the Land Registry at once after they sell their flats, nor inform the management company;
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(2) Even if the owners who have sold their flats report the transactions immediately, given the existing workload of the Land Registry, it will surely take over half a year before the Land Registry could provide updated information on the flat owners. Furthermore, the application fee for each search is $10. In other words, if flat owners in an estate want to obtain information on the flat owners of the whole housing estate through this open channel, the cost incurred will be forbiddingly high due to the large number of flats involved. Before anything can be done, flat owners have to raise a large sum of money in advance for getting hold of the necessary information but the information obtained may not necessarily be the most updated and accurate. And the information may not be the same as that held by the management company. Under such circumstances, it is not surprising at all that the voting results would be disputable. Some owners let out their flats and make it the responsibility of the tenants to meet the management fees. They would not care at all whether the tenants enjoy the deserved management services or quality of services. I trust that they would not show a keen interest, should these owners be requested to take an active interest in choosing the management company. In view of this, the availability of vacant or let out flats would definitely affect the respondent rate of any relevant opinion poll or survey. As a result, individual owners have to spend quite a huge amount of money, only to obtain outdated and inaccurate information about all the owners in their same estates, yet which may be different from that of the management company. And they have to rely on such information to reach the other several thousands of flat owners. The 50% target is, after all, "within sight but beyond reach". To put it more cruelly, it is really a practical joke which is of more kicks than halfpence.
As a matter of fact, it is not too much to give the flat owners a little bit of freedom in choosing their management company. If the Government has the bona fide respect for the owners' views, it should not put forwardamendments which border on fooling the flat owners. However, I believe that at the present stage, we can still make remedy to the Bill through administrative measures.
At the ad hoc group meeting, the Government has undertaken to formulate a set of guidelines laying down the basis on which the authority concerned exercises its discretion on exemption. I am of the opinion that the Administration should not entirely leave it to the flat owners to raise objections. The spirit of the guidelines should be to explain what the Government would take into account in exercising its discretion. The Government should at least take initiative to gather owners' views on their management companies. Therefore, I suggest that before the granting of exemption, an independent inquiry to find out the overall views of the owners in respect of the exemption of the management company has to be conducted, only if the Administration receives a petition bearing the signatures of 10% of the owners. It can be
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conducted by the management company itself or an independent survey company commissioned by it, while staff of the district office may monitor the whole process. The cost is to be covered by the management fee. And all relevant information of the owners are to be supplied by the management company. Moreover, in view of the difficulties I have mentioned, many of the owners are unable to be contacted at all or have no comments on the choice of the management company. I feel that the Administration, when deciding on the exemption, should follow the principle of simple majority of the respondent owners rather than on the 50% required ratio of all owners, including those who abstain.
I believe that after the passage of the Bill, some management companies such as the Mass Transit Railway Corporation (MTRC) and the Taikoo Real Estates, would surely apply for the exemption at once. The maximum period of exemption is three years. I earnestly hope that the guidelines can be issued as soon as practicable, preferably before the granting of any exemption. Views on the guidelines should be sought from flat owners concerned. Before granting the second exemption three years later, a review should be carried out on the revised Ordinance to examine whether it would, in practical terms, be unfair to the flat owners. I also hope that colleagues of this Council will keep a close look on the implementation of the Ordinance and to urge the Government to make appropriate amendments if necessary. However, in order not to hinder the implementation of other proposals of the Bill, I am going to abstain from voting when amendment to section 34 is put. But I would support other proposed amendments and support the whole Bill in its amended form.
MR MAN SAI-CHEONG (in Cantonese): Mr President, the long-awaited Multi-storey Buildings (Owners Incorporation) (Amendment) Bill 1992 will eventually go through its third reading today. In fact, many local bodies and the United Democrats of Hong Kong (UDHK) have for a number of years fought for the introduction of the proposed amendments, especially the revocation of section 2A. I, as a member of UDHK and as one of those people who have been championing the flat owners' interests over the past seven years, naturally support most of the proposed amendments to the Bill. However, this does not mean that the Bill is beyond criticism. For instance, I am not satisfied with the provision in the Bill that the developer or the management company concerned may apply to the Secretary for Home Affairs for exemption so that the owners' corporation cannot terminate their service and in consequence the developer or management company could provide management service on a long-term basis.
It is proposed in the Multi-storey Buildings (Owners Incorporation) (Amendment) Bill 1992 that the owners shall be vested with the power to dismiss the management company. Yet, the developer or the management company is also permitted to apply to the Secretary for Home Affairs for exemption from the termination of their service by the owners' corporation. And only owners between them holding over 50% share of an estate can apply for the overturning of the Secretary's decision.
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Apparently the provisions seem to be fair to both the owners' corporation and the management company but actually the whole discretion of the flat owners becomes, as what some local bodies put it, something within sight but beyond reach. The ownership of most of the large housing estates, especially property developments atop the Mass Transit Railway stations as mentioned by many colleagues, is usually held by companies in which the developer or management company concerned has an interest. And it seems very unlikely for flat owners in an estate to round up the support of 50% of the owners to vote down the exemption granted by the Secretary for Home Affairs. It means that the owners' corporation cannot hold full power, or in other words, virtually no real power to employ a management company on its own at all. As a result, some management companies providing just passable services can keep on managing buildings for a long time free of any restriction.
In fact, it is the Government's objective of amending the existing Ordinance, as I believe, to protect the flat owners from being bound by any unfair Deed of Mutual Covenant so as to enable the owners' corporation to supervise or monitor the operation and administration of the management company in an effective way. However, the provisions in this respect are still far from adequate and in consequence the developer or management company concerned can enjoy inordinately great protection. I oppose to this part of the Bill and hope that the Government will, immediately after the enactment of the Bill, put the Secretary for Home Affairs's exemption power under regular review to see whether there are any loopholes in the operation and consider what amendments to be made so that some concrete remedies can be put in place.
In order to successfully deal with the crux of the estate management problem in Hong Kong, I think we have to start right from the root, that is to say, requirement must be set to ensure that management company shall have the recognized professional qualification and ability in estate management. For this reason, I hope the Government could formulate as soon as possible a sound system for registration and licensing inspection. Such a system is indispensable because only by doing so can we require each management company to employ a certain proportion of staff with professional qualifications. Under the system, the authority concerned should only grant approval for registration and issuing licences to the eligible applicants after inspection. In case any malpractices or serious mistakes are found in its management, the authority may revoke the licence. This is the only way to ensure a real professional estate management and monitor management companies more effectively while safeguarding flat owners' interests.
In addition, I also support the setting up of a building management tribunal or a similar body to settle the disputes between owners' corporation and the management company. This is conducive to both solving the problems and protecting both parties' interests. Some of the disputes are simple in nature and involve only a small sum of money. Yet it would take much time to settle them. If such disputes can be handled by a building management tribunal for its fair
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arbitration, it would keep the flat owners' legal costs to a minimum and they will not be placed at a disadvantage simply because they cannot afford to initiate legal proceedings. For this reason, we are looking forward to an early establishment of the tribunal.
Although it seems that the Multi-storey Buildings (Owners Incorporation) (Amendment) Bill 1992 would be endorsed without much fanfare today, we still have to wait and see whether the Government would allocate sufficient resources and have determination to enforce this piece of legislation and whether it will review the Ordinance regularly to redemdy the inadequacies.
MR TIK CHI-YUEN (in Cantonese): Mr President, though the Multi-storey Buildings (Owners Incorporation) (Amendment) Bill 1992 has undergone lengthy discussions, Meeting Point is yet of the view that the Bill is not yet perfect and there are several loopholes and issues which must be addressed.
Legislative intent
The legislative intent of the amendment Bill is to "return incorporation right to residents", which means returning the right of forming owners' corporation to flat owners, and "returning management rights" to flat owners. However, it is disappointing that this dual-return objective has not yet been fully realized in the amendment Bill. The Bill still has some loopholes, particularly in the aspect of enforcement. Meeting Point has the following comments:
(1) Right of exemption
Section 34(E) of the Bill provides that a management company or a housing development can apply to the Secretary for Home Affairs for exemption from being bound by paragraph 7 of the Seventh Schedule as regards the termination of the services of a manager, and the exemption will last for three years. The Bill does provide that if flat owners representing more than 50% undivided shares object, the Secretary for Home Affairs can reject the application of the management company. However, the Government does not specify any criterion in the Bill with regard to the granting of exemption. Moreover, it is basically impossible in sizeable housing estates to muster support from owners who hold between them 50% undivided shares. Neither does the Government make it a requirement that developers or the Government itself should be responsible for notifying flat owners. In this way, flat owners are being deprived of their right to know. Since the Bill does not state clearly the pertinent procedures, flat owners are put in an unfavourable situation.
(2) Vast ratio of ownership shares
Another problem of the Bill is how to tackle the vast ratio of ownership shares. In the paper submitted to this Council by the Government, it is mentioned that in some sizeable estates (actually several Members have quoted
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this), it is impossible for flat owners to muster enough support to trigger a valid objection under the 50%-share rule. This will set a bad precedent for big developers to "go for" vast numbers of ownership shares in the future in order to procure permanent management of a building. The bill does not introduce any control in this respect.
Without addressing the aforesaid situation, the legislative intent of the Bill to safeguard the right of owners in managing the building in which their properties are located will not be completely achieved.
(3) Settlement of management disputes
After amendment, the Ordinance will extend the jurisdiction of the Lands Tribunal to deal with litigation related to building disputes. However, what makes one worry is that the current waiting time at the Lands Tribunal has an average of 80 days. Together with the building management disputes, the waiting time will be further prolonged. As common law says "Delay defeats equities", Meeting Point is disappointed at this.
Of course, we cannot deny that the Bill has its own merits. These include the repeal of section 2A, addition of Part VI A which enhances the overriding nature of the Bill, addition of the Seventh Schedule and other implied provisions. These amendments are welcomed by Meeting Point.
Meeting Point cherishes high expectations of the amended Ordinance, but it also detects the aforesaid loopholes, particularly with regard to "the right of exemption", which will certainly have the chance of becoming a reprint of section 2A of the original Ordinance. The Secretary for Home Affairs is granted an "imperial sword" under the amended Ordinance, which will enable him to have considerable power to exercise "discretion". At the present stage, we cannot see that when the Secretary for Home Affairs exercises this discretion, there will be any stipulated explicit guidelines or specific consultation and justification procedures.
Meeting Point does understand that the ad hoc group has spent a lot of effort in scrutinizing the Bill and has also discussed the above problems. Up to now, it has been over a year from the gestation of the Bill to its being introduced to this Council for scrutiny. As far as we understand, many concerned parties do hope that the Bill an be passed as soon as possible so that flat owners may enjoy autonomy over the building in which they are living.
As a Member of the Legislative Council, I would have wanted to support the Bill wholeheartedly. Nevertheless, the Bill has many loopholes which render flat owners unable to safeguard their rights adequately.
In the circumstances, Meeting Point is in something of a quandary and we shall abstain from voting on part of the provisions of the Bill.
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As for plugging the loopholes in the Bill, my colleague Mr WONG Wai-yin will later on provide some follow-up suggestions with regard to the problem detected by Meeting Point.
MR JAMES TO (in Cantonese): Mr President, half of the population in Hong Kong are living in private buildings and large housing developments. Therefore it is very important that these properties be properly managed for the good of the environment, law and order and hygiene of Hong Kong. In fact, an improvement in these three aspects will reduce the direct and indirect expenditures of the Administration, especially those of the district offices and other relevant departments. The question of building management has long been the subject of criticism and complaint. I think the most serious and well known case is the Beacon Heights incident. This incident became a catalyst that led to a reform campaign by individual owners to fight for their rights. The amendment Bill before us today is, I think, a milestone. The flat owners' fight for their rights can generally be said to be successful, although they have yet to make more effort.
This amendment Bill seeks to revamp the system of unfair deeds of mutual convenant by repealing section 2A and other provisions that restrict the formation of owners' corporations so that flat owners will resume the right of managing their own buildings.
Today, I have heard a multiplicity of views from many of my colleagues. Being the co-convenor of the ad hoc group, I am very surprised — and I wonder whether Mr Allen LEE shares my feeling — to find that many Members, who had no opinion to offer in the ad hoc group, have made many suggestions today. If they had any suggestions, they should have raised them at the ad hoc group meetings so that the group could have worked on them together to make the provisions of the Bill even better. But they did not do so. I wonder what kind of attitude theirs is if they abstain from voting today. I must say this; it would be out of line with my character if I did not.
Regarding the question of exemption, some Members said that the Administration had not clearly laid down the relevant guidelines. I would like Members to refer to the letter from the Administration dated 11 August 1992, in which the guidelines are listed. So why are they saying there are no guidelines provided? Is it because they have not read the letter? If they think that the guidelines are not clear, they can speak out. I have read the guidelines and my comments are as follows: The Administration has said in the guidelines that in processing applications by management companies it will consider their past performance, that is, their performance in the aspect of management. In fact, it is a matter of subjective judgement for one to say if a company's past performance is good. As Mr Eric LI said, even if an independent investigation has been conducted, the result may well be that while the owners are not satisfied, the management company regards its performance to be very good. The situation will be like that of the Complaints Against Police Office, with the
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complaining and the complained parties each sticking to its own version of the story. If individual owners wish to invoke the 50% share rule to overturn an application by the management company, they will find it very difficult. I am also living in a large housing estate. So I understand the difficulties involved, but I also understand the rationale behind laying down such a requirement. The fact is that even though the flat owners want to terminate the appointment of their management company, they cannot do so unless they can, according to the existing provisions, secure the agreement of owners holding 50% shares. If they cannot secure the agreement of owners holding 50% shares, and without any exemption given by the Secretary for Home Affairs, then they cannot terminate the appointment of the management company. Therefore, I think that the process of rallying the support of owners holding 50% or more shares, and the relevant planning and organizing work should be started earlier. I believe that this will require more effort from vast numbers of enthusiastic flat owners, as well as Members of this Council and social workers. Although it may not be very appropriate to insist that the criterion of 50% is unreasonable, I do hope that the Administration will not take the 50% criterion as a golden rule. If there is less than 50%, say, only 30% or 20%, or like what Mr LEE Wing-tat has just said, if all the individual flat owners together hold no more than 30% shares and among them those holding 25% approach the Administration, then in these circumstances, if the Administration still allows the management company to continue managing the property concerned, I believe that the Administration will be under great pressure.
Some people have suggested unified management, which means that what large housing estates need is one single management corporation instead of many such corporations. I find no conflict between this idea and the right of managing one's own property, because our main point is to get back the management right from the management company so that owners can make their own decision. Nevertheless, it is not necessary for housing estates comprising tens of blocks and each with tens of floors and a large number of flats to have one management corporation for each block, or one for each floor, or even one for each flat. This is not what we need. What we need is a good overall management system and the right to choose which management company to employ.
Also, some have mentioned the question of a freeze period. I think that the nine month freeze period should be shortened, because the whole legislative process has, from the issue of the White Bill up until this moment, already taken many months. If the management companies need time to make improvements and to put things right, they should have already finished doing so. If they now want to make improvements so that things will not look too bad because there has been a change in the law, I think it is already too late for them to do so. So I think this nine-month freeze period can be accepted, though with great reluctance. As the Building Management Tribunal cannot be set up earlier, it would be a waste of time and very troublesome for the many flat owners to recourse to litigation in order to terminate the management right of their management company. Therefore, this nine-month freeze period can be useful
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(useful perhaps because of a fortuitous coincidence) in the present situation where the Building Management Tribunal is not yet established. What worries me most is that some management companies would seize the opportunity of this transition period and "fish in troubled waters". In recent months, I have received many complaints that many management companies have suddenly incurred expenditures that are many times what they used to incur, or have suddenly run into deficits that have never occurred before. I hope that after this Bill has been passed (if it is passed), gazetted and duly signed by the Governor, the Administration will as soon as possible deploy more staff to the district offices to help the flat owners solve their problems, now that the Administration has a right to interfere which it did not have before. Section 40A empowers the relevant authority to monitor and investigate the situation concerned and audit the relevant accounts. I believe that after the passage of the Bill, Members of this Council, members of other boards and councils, communal organizations, or organizations in liaison with flat owners will approach the relevant authority who, I think, will then be very busy. Therefore, the Administration should allocate sufficient resources to the authority.
Meanwhile, some have questioned how these owners' corporations and management committees are to be administered and monitored in order to avoid mismanagement. Firstly, I think that section 44 has made it clear that the Administration has laid down special codes of practice and regulations to be followed by management companies whenever there is a large expenditure (like the repainting of the outer walls that costs over $1 million); this is also a kind of monitoring. Secondly, a general meeting can be convened at the request of owners who together hold 5% shares; so the decision of convening general meetings will not rest entirely with the management committees. Thirdly, the most important factor is of course participation; there used to be no opportunity to participate because flat owners had no say under the restrictions of the management company, but now flat owners have a right to participate in the general meeting of owners and exercise their rights by way of voting, just as voters can monitor the performance of the councillors whom they voted into office.
I therefore call upon flat owners to actively take part in the management of the affairs concerning their own buildings. I would also like to give a piece of advice to management companies. There are in fact many business opportunities under the present system, since not every building has the ability to manage its own affairs. Therefore, if management companies have been performing well, they should be able to defeat their competitors and their business should be flourishing. For those with poor management who rely on using tricks and false accounts, they will of course have good reason to worry. For these reasons, I hope that management companies will put their house in order and improve the quality of their services.
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Finally, I am supportive of the licensing system, because the deposit involved is at least a few million dollars. Therefore, whether or not the Bill can be passed today, a sound capital base and good professional standards will always be essential prerequisites of management companies.
MR WONG WAI-YIN (in Cantonese): Mr President, as pointed out by Mr TIK Chi-yuen just now, Meeting Point takes a positive view in respect of the spirit behind the Bill. Nevertheless, certain obvious loopholes can still be detected from the amended version. Meeting Point has submitted a written presentation to the ad hoc group earlier. To our disappointment, our views have not been given due consideration. Here Meeting Point would like to recapituate some of our points and earnestly urge the Government to give them serious thinking so as to fully observe the spirit of the Amendment Bill.
Firstly, the question of exemption. Meeting Point is of the opinion that it is imperative for the Secretary for Home Affairs (SHA) to lay down in black and white the concrete procedures whereby managers apply for exemption from termination. And the following three criteria should be included:
(1) The exemption application procedures should embody the spirit of "returning management rights to flat owners". Meeting Point suggests that when the manager applies for exemption, he has to obtain the support of a certain portion of the shares of the estate as a recommendation. In this way, the application would not merely be submitted from a commercial point of view. And this condition would forestall the occurance of a situation similar to that brought about by section 2A.
(2) Meeting Point considers that there should be a time lag of at least half a year from the receipt of application by SHA to the approval of the application. This would allow ample time for the flat owners to arrange for owners' meetings. The proposed measure would ensure that flat owners can fully express their views.
(3) It should be clearly specified that SHA is required to be accountable to the flat owners in the vetting of the application for exemption. This is to acknowledge owners' right to know. Meeting Point is of the opinion that upon receipt of a manager's application for exemption, SHA should notify every individual flat owner in the estate of the application by means of a formal letter, rather than claiming it to have completed the consultation process by merely gazetting the application or putting up relevant notices in certain government departments. In doing so, owners would be able to take timely actions. SHA should account for his discretion by letting every individual owner have a clear picture about the way he exercises his discretion. The Secretary should explain to them why he grants the exemption and what the rationale behind the decision
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is. In this way, the well-briefed flat owners may have detailed information to work on and to take appropriate actions. Meeting Point feels that, in the long run, these administrative guidelines should, at the end of the day, be enshrined in the law through proper legislative procedures so as to safeguard flat owners' interests.
Secondly, the future roles of the Lands Tribunal. Meeting Point would like to reiterate that the Government should appropriate ample resources for the Lands Tribunal so that the waiting time for hearing would not be drastically lengthened due to an increase of cases concerning building management. According to the common law, "Delays defeat equities". In view of this, Meeting Point feels that immediate consideration should be given to the appropriation of fund so that fund will be made available by 1 April next year, the latest. More resources may enable the Lands Tribunal to exercise the duties as proposed in the Bill as soon as practicable. Meeting Point holds that it is merely an interim measure to have the Lands Tribunal hearing cases of building management. This arrangement is made to serve the purpose that the Ordinance would be implemented by a law enforcement body as soon as practicable. Since the nature of building management cases is different from that of tenancy disputes, it is expected that a lot of management problems will come to the surface and lead to legal proceedings after the passage of the Bill. For this reason, it is necessary to set up an independent Building Management Tribunal in the long run.
Thirdly, on the question of developers holding a majority share of an estate. This issue involves a balance in the relationship between the developers' interests and the flat owners' interests and the right to use and manage the commercial units, domestic units and the common utilities. It is a rather complicated issue and cannot be resolved by means of a blanket approach. At the moment, it calls for different professional advice to exert collective efforts in dealing with, and monitoring, the distribution of shares in respect of different types of Deed of Mutual Covenants.
Finally, Meeting Point proposes that the Government should re-establish the Private Building Advisory Committee immediately after the enactment of the Bill so that the Committee can carry out discussions and take follow-up actions to plug the aforesaid loopholes in the law. The Committee can then examine the administrative guidelines relating to SHA's processing of exemption application and to put forward proposals as well. For this reason, Meeting Point is going to abstain from voting in respect of clauses 34 and 33A of the Bill but will support other amendments in the Bill.
Mr President, these are my remarks.
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SECRETARY FOR HOME AFFAIRS: Mr President, I am most grateful to the Honourable Allen LEE and his colleagues on the ad hoc committee to study the Multi-storey Buildings (Owners Incorporation) (Amendment) Bill 1992 for their wise counsel and the time they have spent in examining the Bill.
This Bill addresses the multifarious aspects of building management which impacts on the quality of life of a significant part of our population. Its main purpose is to facilitate the creation of owners' corporations and to increase controls over management committees of owners' corporations. It demands the concerted efforts of building owners, tenants, managers and other parties to each play their own part within the framework provided by this Bill in order to enhance the standard of building management in Hong Kong.
As a result of the meticulous attention which Members of the ad hoc group have given to the scrutiny of this Bill, many amendments have been made. Some of the Committee stage amendments which will be introduced later on are complex. We would not have been able to accomplish the amendment exercise in time without the unfailing support and the hard work of the Law Draftsman.
As mentioned by a number of Honourable Members, the ad hoc group supports the extension of the scope of the Lands Tribunal to deal with building management matters as an interim measure; their long-term aim being the setting up of a building management tribunal. While I have no wish to disagree with the ad hoc group's long-term aim, it is important that we take a realistic approach. This is because we have yet to secure the necessary resource to extend the jurisdiction of the Lands Tribunal to cover building management with effect from 1 April 1994. However, Members will be pleased to note that the Judiciary has indicated that it will bid for the additional resources as appropriate to implement this proposal in the context of the 1994-95 Estimates.
If we take things a step at a time, our first priority in this regard must be to extend the jurisdiction of the Lands Tribunal by the target date, that is, 1 April next year. With that accomplished and in the light of the actual working experience which has accrued, we would then consider our way forward in the way suggested by Members.
A few Members have raised the point that some developers hold more than 50% of the share of an estate. I regret that we do not have precise figure as to how many buildings there are in this category but we believe that such numbers are relatively few. It is true that in such cases the other owners may find it difficult to dismiss the manager if the need for it arises. However it is important to note that under this Bill the owners can still incorporate themselves under the amended Ordinance and present the collective views on management of their estate to the manager. I am sure that the manager will not take this collective view of the owners lightly. Members will have noted that under section 34E(5) the Secretary for Home Affairs is required to publish in the Gazette guidelines relating to the exercise of the authority discretion under
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subsection 4 as noted by the Honourable James TO. We have already prepared draft guidelines and they are being finalized and will be published in due course in the Gazette as provided for in the law. The various suggestions which have been put forward by Members this afternoon will be taken into consideration before we finalize those guidelines.
As regards the related point made by a few Honourable Members in respect of owners being kept informed of an application under this section, that is section 34E(4), by the manager of the building to exclude the application to the building of paragraph 7 of the seventh schedule, the short answer must be that the owners will have to be informed. They will indeed be notified by a suitable means under a notification scheme. We will in due course publish for general information the notification scheme in implementing this particular section. We will take into account the very useful suggestions which Honourable Members have put forward before we finalize this particular scheme.
The expression of concern over CNTA's capability to implement the provisions under the new section 40A is noted. I should make clear that this new section simply reflects the ongoing duties of our Department. These are not particularly onerous duties as the powers are only invoked for the purpose of ascertaining the manner in which a building is being managed. This is not a requirement which normally applies to buildings under proper management. However I do take the point that some companies might be tempted to take advantage of the present hiatus.
Mr President, with these remarks, I recommend to Honourable Members the Multi storey Buildings (Owners Incorporation) (Amendment) Bill 1992 subject to the amendments to be moved at the Committee stage.
Question on the Second Reading of the Bill put and agreed to.
Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
Committee stage of Bill
Council went into Committee.
MULTI-STOREY BUILDINGS (OWNERS INCORPORATION) (AMENDMENT) BILL 1992
Clauses 4, 6 to 9, 11, 12, 14, 15, 17, 18, 20, 22 to 25, 28 to 31, 33 and 38 to 48 were agreed to.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3311 Clauses 1 to 3, 5, 10, 13, 16, 19, 26 and 34 to 36
SECRETARY FOR HOME AFFAIRS: Mr Chairman, I move that the clauses specified be amended as set out in the paper circulated to Members.
Clause 1 is amended by adding a new subclause 1(2) to provide that the Ordinance shall come into operation on a day to be appointed by the Governor by notice in the Gazette and that different days may be so appointed for different provisions. This subclause will enable those parts of the Bill relating to the Lands Tribunal to be brought into effect at a later date.
Clause 3 is amended, inter alia, by providing a new definition of "building". The purpose is to enable owners of a large housing estate to form one owners' corporation for the estate. This will facilitate unified management.
Clauses 16 and 19 are amended by including "avoidance of doubt" provisions to ensure that in the event of any inconsistency between the Ordinance and the terms of a deed of mutual covenant or any other agreement, the Ordinance shall prevail.
Clause 16 on section 18 stipulates, inter alia, that any specified holder of an office of a management committee may receive an allowance as specified in the Fourth Schedule.
Clause 19 on section 21 relates to the determination of the amounts to be contributed by the owners to funds, and provides that the new Fifth Schedule shall govern the preparation of budgets and related matters.
Clause 34 is amended to include in the First Schedule "Slopes, gradients and retaining walls including sea walls (if any) comprising or forming part of any land which is in common ownership with the building." Some owners are unaware of their responsibilities for maintaining slopes and retaining walls within their private lots. This amendment simply reflects the on-going responsibilities of the owners.
Clause 35 amends the Second Schedule on "Composition and Procedure of Management Committee." Clause 36 amends the Third Schedule on "Meetings and Procedure of Corporation." The opportunity is taken to include "avoidance of doubt" provisions in them to ensure that in the event of any inconsistency between the Ordinance and the terms of a deed of mutual covenant or any other agreement, the Schedules shall prevail.
The other amendments are largely technical refinements and consequential amendments.
Mr Chairman, I beg to move.
HONG KONG LEGISLATIVE COUNCIL — 5 May 1993 3312 Proposed amendments
Clause 1
That clause 1 be amended —
(a) by renumbering the clause as clause 1(1).
(b) by adding -
"(2) This Ordinance shall come into operation on a day to
be appointed by the Governor by notice in the Gazette and different days may be so appointed for different provisions.".
Clause 2
That clause 2 be amended, by deleting "of the Multi-storey Buildings (Owners Incorporation) Ordinance (Cap. 344)".
Clause 3
That clause 3 be amended —
(a) by adding -
"(ba) by repealing the definition of "building" and substituting -
""building" means -
(a) any building which contains any number
of flats comprising 2 or more levels,
including basements or underground
parking areas;
(b) any land upon which that building is
erected; and
(c) any other land (if any) which -
(i) is in common ownership
with that building or land;
or
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