ENG-1993-10-21 — Page 1

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 397 OFFICIAL RECORD OF PROCEEDINGS

Thursday, 21 October 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 CHIEF SECRETARY

THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P.

THE FINANCIAL SECRETARY

THE HONOURABLE NATHANIEL WILLIAM HAMISH MACLEOD, C.B.E., J.P.

THE ATTORNEY GENERAL

THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P.

THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P.

THE HONOURABLE 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 TAM YIU-CHUNG

THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P.

THE HONOURABLE LAU WONG-FAT, O.B.E., J.P.

THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P.

THE HONOURABLE RONALD JOSEPH ARCULLI, O.B.E., J.P.

THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P.

THE HONOURABLE MRS PEGGY LAM, O.B.E., J.P.

398 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. DR THE HONOURABLE LEONG CHE-HUNG, O.B.E., J.P. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E.

THE HONOURABLE PETER WONG HONG-YUEN, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP

THE HONOURABLE VINCENT CHENG HOI-CHUEN, J.P. THE HONOURABLE MOSES CHENG MO-CHI

THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P. THE HONOURABLE CHEUNG MAN-KWONG

THE HONOURABLE CHIM PUI-CHUNG

REV THE HONOURABLE FUNG CHI-WOOD

THE HONOURABLE FREDERICK FUNG KIN-KEE

THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA

DR THE HONOURABLE HUANG CHEN-YA

DR THE HONOURABLE LAM KUI-CHUN

DR THE HONOURABLE CONRAD LAM KUI-SHING, J.P. THE HONOURABLE LAU CHIN-SHEK

THE HONOURABLE EMILY LAU WAI-HING

THE HONOURABLE LEE WING-TAT

THE HONOURABLE ERIC LI KA-CHEUNG, J.P.

THE HONOURABLE FRED LI WAH-MING

THE HONOURABLE MAN SAI-CHEONG

THE HONOURABLE HENRY TANG YING-YEN, J.P.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 399 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 ROGER LUK KOON-HOO

THE HONOURABLE ANNA WU HUNG-YUK

THE HONOURABLE JAMES TIEN PEI-CHUN, O.B.E., J.P.

THE HONOURABLE ALFRED TSO SHIU-WAI

ABSENT

THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE SZETO WAH

THE HONOURABLE LAU WAH-SUM, O.B.E., J.P.

THE HONOURABLE SIMON IP SIK-ON, O.B.E., J.P.

THE HONOURABLE STEVEN POON KWOK-LIM

THE HONOURABLE CHRISTINE LOH KUNG-WAI

IN ATTENDANCE

THE CLERK TO THE LEGISLATIVE COUNCIL

MR CLETUS LAU KWOK-HONG

THE DEPUTY CLERK TO THE LEGISLATIVE COUNCIL

MR PATRICK CHAN NIM-TAK

400 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 Member's motion

MOTION OF THANKS

Resumption of debate on motion which was moved on 20 October 1993

PRESIDENT: Council will now resume and continue with the debate on the Motion of Thanks.

MR MARTIN BARROW: Mr President, the Governor's policy address gives us a comprehensive plan of how he and his Administration intend to tackle the many challenges of the future. I support the commitment to raising Hong Kong citizens' quality of life through better education and welfare, a cleaner environment and the surety of adequate law and order. I cannot, however, support any compromise whatsoever of the territory's positive non-interventionist management philosophy in moving towards these important goals.

As the Governor himself notes, the fact that the community has reached a stage where it can place greater emphasis on improving its quality of life is essentially a function of the outstanding economic success of Hong Kong — a function of our unswerving commitment to non-interventionist freedoms which have allowed the business community to get on with the job of creating wealth and making Hong Kong people prosperous.

The Governor's policy agenda includes some undertakings that I believe could impinge unwisely on this traditional stance.

Take, for example, the proposed involvement of the ICAC in managing business codes of conduct. While I support a strong and effective ICAC and the Governor's call for business organizations to develop their own codes of conduct and to play a role in improving our commercial morality, I see only a very limited role for the ICAC in this process. Indeed, I believe that to involve the ICAC would be to set an unfortunate precedent. Police forces exist to enforce the laws established by proper processes, not to develop the laws themselves.

I would warn against any management policy that strays from our principles of non intervention as a result of overzealousness in achieving certain goals in a limited time.

One cannot develop corporate morality just through legislation, which brings me to another policy point in the Governor's address that appears to contravene our commitment to a regulatory environment that promotes the rights of the individual as the driving force of capitalism.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 401

The Governor foreshadows further regulation of auditors of publicly listed companies. I would like to say, firstly, that the relevance of company listing to the regulation of auditors escapes me. This would appear to be a matter for company law applying to all Hong Kong companies, rather than one that turns solely on listing. However, the more fundamental question inherent in this proposal for heavier regulation is: why does the Government need to get involved at all? The Hong Kong Society of Accountants can and does do a much more effective job than some in terrorem pronouncement by the Government and its ever-burgeoning corps of regulators can ever hope to do.

It is worth remembering that the events referred to in a recent inquiry happened after the new impenetrable listing rules were put in place — not before. If the company concerned does prove to have acted illegally, they would probably have been equally illegal under the simpler, well-understood regulatory framework of listed companies which existed previously.

I mentioned the danger of overzealousness in seeking to achieve certain goals in the next few years, and I would like to again stress that I continue to be concerned over an unabating flood of new legislation, on top of all the work needed to ensure existing Ordinances comply with the Basic Law. We must resist the temptation to seek a legislative solution to every perceived social or corporate abuse if we seriously want to perpetuate a system that has underpinned Hong Kong's economic success. The fact is that the marketplace is where wealth is created. Limit it by imposing onerous regulations and you limit prosperity.

We need only recall the mistakes of the developed world in the 1960s and 1970s — an era of legislation designed to control competition artificially by a plethora of laws which purported to mandate competition. Those laws failed to do anything other than create thousands of jobs for bureaucrats and lawyers, tying up the courts in monumental law suits. Many governments subsequently wound back the laws or the way in which they were administered.

Let me reiterate that it would be anachronistic, at this pivotal and transitionary time in our history, to create precedents for stronger government intervention, when in fact the world around us is calling for lower taxes, smaller governments and greater self reliance. Let us be diligently wary of squandering or interfering with a wealth-creating philosophy that has carried Hong Kong through to a position where our GDP per capita is set to overtake Australia and the United Kingdom.

It is patently clear that no single factor has made a greater contribution to the welfare of the people of Hong Kong than our outstanding economic success. Why, then, has one of the key factors capable of undermining this success been glossed over in the policy address?

402 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

Mr President, I speak, of course, about inflation. It remains more than double that of Singapore, Taiwan and some others in the region, which clearly indicates we are far from getting the economy right at all.

Take a contributing factor, such as the labour shortage. I cannot agree with the claim that a new 1992 pledge was to bring in more people given that that decision was made back in late 1991.

I will not now rehearse all the arguments in favour of a more flexible policy, but I would assure my colleagues once again that I am not suggesting indiscriminate labour importation.

I am calling, simply, for more flexibility so that we are not shackled by shortages in our desire to maintain our service standards and competitiveness as a regional business centre.

I urge the Government and this Council to look again at the Singapore example. The labour shortage is not, of course, the only factor we need to be concerned about, but it is certainly an area in which the Government could make some leeway by embracing more flexible policies. After all, with a workforce of 2.8 million, even a doubling of today's imported labour quota would mean that less than 2% of the workforce were from overseas. I cannot believe such a small number would negatively affect the livelihood of our people.

Mr President, the Hong Kong Government's role in responsibly maintaining a level playing field with minimal intervention, as a crucial element of our ongoing economic health, cannot be achieved if we let slip pressures to keep bureaucracy at bay. As a member of the Public Sector Reform Committee, I will continue to encourage more progress in efficiency, performance and paperwork reduction.

We have already seen some very real progress through performance pledges, spearheaded by the Efficiency Unit, and I congratulate that unit on its success. Some civil servants may feel these pledges put them under increased pressure; to them I say it is up to you to come up with ideas to simplify your workload. There remain extraordinary bureaucratic steeplechases — hotel and restaurant licensing applications, for example, are circulated through no less than five government departments — although I am pleased to say there is at last some progress on this issue.

Nevertheless, we must continue to focus on what more can be done to reduce the amount of paper in circulation, to eliminate unnecessary forms and to streamline bureaucratic practices across the board.

Another element of government policy which should not be lost sight of is privatization and corporatization. I hope that once the current political discussions are out of the way, a dialogue can be reopened with China on the

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 403

merits of such policy, which can improve performance, create incremental wealth and fairly distribute benefits to investors, governments and consumers. I would draw the Government's attention to a recent World Bank study which gave a ringing endorsement of privatization.

I have focused thus far on the importance of not softening, or detouring from, our non interventionist philosophy in pursuing new goals. The point is that we must ensure we do not jeopardize our ability to promote a clear and significant message to China on how Hong Kong is sensibly managed.

The Governor is of course right to stress the overriding importance of Hong Kong's relationship with China. The constitutional development issue has understandably gained considerable media attention, and it is therefore a credit to the Governor that his policy address did not end up a one-issue event. I say this, Mr President, because it is clear to the community as a whole that the very core of our future revolves around our economic links with China.

Already, interdependence between us — which has seen our China-related trade grow from 12% in 1978 to 60% of our total trade currently — has created an economic security that should serve as both an assurance and an asset for the future.

Mr President, I returned from Beijing this morning, having spent the last few days mainly with economists who are tackling the current issues facing the economy. I am impressed by the determined manner in which action is being taken, by the optimism about the future, and by the plans to continue opening the economy to the outside world. I do not believe we will see the kind of slowdown of four to five years ago, and I am confident that Hong Kong's role in China's modernization will continue unabated.

However, we do need to be cognizant of the potential pitfalls of fast-track growth in this relationship and ensure we manage it to mutual benefit.

Take the tourism sector, for example. It is more than ever dependent on China. Mainland visitors are expected to number 1.7 million by the end of the year, contrary to the Governor's somewhat out dated 1 million forecast, which was in fact reached last year. Mainlanders will overtake Taiwanese as our lead visitors in 1994, and as more of our international visitors travel on to China, we need to plan for, monitor and manage this increased flow, which is on track to exceed 15 million visitors in total by the year 2000, even at a modest 8% annual growth per year.

We need to take stock of how our immigration will cope, what accommodation will be available, what will be the environmental concerns and how will our transport systems meet the demand. As manufacturing's share of GDP continues to shrink, visitor expenditure will become an increasingly important contributor to our economy; tourism has already moved up the foreign exchange earning rankings to become the second biggest earner ahead of

404 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

electronics and second only to garments and textiles. As such, we have a responsibility to ensure all our visitors are well looked after and return home with a positive impression.

I urge the Government to form a group with the Tourist Association to plan for the long-term development of this sector. There are major issues which need to be addressed well outside the scope of the HKTA's promotional role.

Mr President, one of the best guarantees of Hong Kong's future is its importance to China's development. The future welfare of Hong Kong's people therefore turns on economic issues and how we build and manage our business relationship with China, in the context of one country, two systems. We have to get it right, both our policy affecting business and the protection of an administrative system characterized by free trade, low tax and minimum government intervention, that has created the living standards enjoyed by the people of Hong Kong today.

Mr President, I believe we need to recognize that positive economic achievements, particularly the strengthening of the Hong Kong-China business dynamic, have been masked by issues related to handover arrangements. As such, we need to concentrate on the economic agenda, spearheaded by our links with China, to provide the best way forward for our people.

With these words, I support the motion.

DR LEONG CHE-HUNG: Mr President, our Governor's annual address this year has a glossy cover, and an engrossing title Hong Kong: Today's Success, Tomorrow's Challenges.

Attractive it seems, on the surface.

But it seems that the title should be read better the other way round and that is Hong Kong: Today's Challenges, Tomorrow's Success. At least it would give the man-in-the-street a more positive impression that the Governor is not reaping all our hard earned successes and bet our bottom dollar on an unclear course of challenges into the future. Challenges should only be the means, not an end itself.

I doubt whether it is still too early to say whether Mr PATTEN's five-year plan beginning last year is a success. The road ahead is still full of rocks. It would be too generous to say that we have a successful Sino-Hong Kong relationship since his last policy address. As a medical professional, I would have thought health is another area that is too far-off from anything we call a "success".

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 405

It is at least a good sign for our Governor to talk more on issues that affect the livelihood of our citizens and less on politics. More pages have been devoted to the subjects that concern the people. But the care only goes skin-deep.

It has been said and implying Britain that:

"The trouble with this country is that there are too many politicians who believe, with a conviction based on experience, that you can fool all the people all the time" (Nods and Becks) (1944) p 206.

I am confident that our Governor and his policy advisers do not have such belief. Mr President, we are looking for the Government to translate its visionary care into effective action.

The blatant facts are: the daily life of the ordinary citizens does not seem to have improved in the past year. We continue to suffer from a polluted environment. We continue to suffer from a spiralling cost of living. More and more people find it hard to own a flat. And our aging population is being threatened by old age diseases and diseases associated with advanced countries. And then what about post-retirement protection for our working population? Just to name a few.

Mr President, I would like to focus my attention on the aspect of health but there are also a number of areas that I would also like to highlight first, according to the order in the policy address.

Firstly, consumer rights and protection.

Nothing more was heard this year after the Governor pushed hard for a citizen charter and consumer rights last year. Admittedly, it is good news that some three Bills are in the pipeline to ensure safe supply of goods and services with acceptable quality and which are open to consumers' inspection. Yet all these are only secondary when one compares this with the setting up of a unified set of standards by the Administration and its readiness to crack down on all dangerous goods and toys.

Furthermore, the Government must act positively to detect low standards by doing the testing job, instead of only passively reacting to complaints.

Secondly, occupational safety.

Our Governor promises tighter work safety control at construction sites. But the problem of work safety goes beyond those sites. We need safety committees in industries such as electronics, textiles and catering and others. Members of such committees should include both employers and employees, relevant medical professionals and safety inspectors. These committees should

406 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

be responsible for preparing a set of guidelines for the industries to follow and monitoring the implementation of these guidelines.

Thirdly, on elderly.

The Governor must be applauded for suggesting to set up a special working group to oversee elderly policy. But is this a revitalization of the now dormant Central Co-ordinating Committee on Services for the Elderly? What will such old can with a new label bring? And there is more — what are the plans for the monitoring of the continuing mushrooming private old age homes? How can the private sector be completely left out in the policy address despite the Governor's admission that it would be still too little and too late even if the plans to build more nursing homes in the near future for the elderly is implemented?

Fourthly, on nationality.

A loophole in the United Kingdom Nationality (Amendment) Act has created the problem of split families. I am happy that the problem is almost over following the joint effort of myself, many Hong Kong people as well as the parents themselves and the willingness of Her Majesty's Government to grant concession. But the problem over full British citizenship affects not only these families, not only the wives of the ex-servicemen and not only the ethnic minorities to whom the Governor has promised to continue to fight. It also concerns the 3 million BDTCs in Hong Kong.

Fifthly, on environment.

I would like to address on two points. A word on clinical waste. There is no overall policy guideline on the disposal of clinical waste. The medical profession has therefore taken a lead to come up with a set of guidelines to advise its members that all sharps should be put in safe containers. But what is the point for doctors to put sharps into safe containers while the concerned departments under the municipal councils simply have no designated machinery to collect and dispose of them.

Mr President, we need a centralized authority to co-ordinate the efforts on this front. Piecemeal approaches to the problem by various departments would not only cause a waste of resources but also a breakdown of work.

It is again a waste of time to argue, amongst concerned departments and parties, whether a central incinerator should be built. If we do not even know what should be incinerated and how to ensure the safe transportation and storage of these dangerous waste, why care about the building of such an incinerator?

A few words on energy saving. Legislation itself is not enough. Incentives should be given to public utility companies to allow them a higher percentage of return should they achieve more energy saving. Creating green

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 407

managers to promote public education on this area is important. But what is the point of "waking up" the public to save energy whilst there is no practical means to work their will?

Lastly, on constitutional development.

The separation of the Executive and Legislative Councils does not bring about strengthened effectiveness of the Government, as expected by the Governor. Instead it brought around a breakdown in communication between the executive and the legislature. It is indeed a lesson too bitter to learn. The Legislative Council has requested for a division of labour, yes, but definitely not a severance in relationship. Examples abound that decisions made alone by the executive without the knowledge of the Legislative Council had caused much public outcry.

Although the Governor has repeatedly made reference to and expressed importance on the issue of "the executive should be accountable to the legislature" as enshrined in the Joint Declaration, unfortunately, this chasm has not been addressed nor approximated in his policy address.

Let me now, Mr President, move over to health.

Perhaps it is timely to put on record the appreciation of the health care professionals for the tribute the policy address has paid to them for their unceasing effort to improve health care under difficult circumstances and the high level of standard to treatment generated. But alas, the proposal for health is again similar to that of last year — there are a lot of trees but we still cannot see the forest. A lot of areas are mentioned and money, I am sure, will be given to develop them. In essence, a lot of money will be dished out but with no fixed direction.

The policy address has called for "a further assault on all delays and queuing time for medical treatment". Yet, Mr President, a faster pace of treatment of high quality can only be achieved with adequate working hands. The budget for the Hospital Authority (HA) is built on the principle that it will be comparable to the budget for the hospitals as if HA has not existed. The staff level on transfer to HA was capped on the strength number on the day of the takeover — the number which could only provide a quality service with a long waiting time and queuing time.

The suggestion to expand hospice service within the HA by taking care of some 500 additional patients in 1994 should be a welcome sign. Yet since 1989 when the then Medical Development Advisory Committee (MDAC) approved and urged the Government to take priorities to approve a hospice care policy and take active steps of implementation, very little has been done. Instead, voluntary organizations are developing to take up these challenges without the financial support of the Government. It sounds ironic that whilst so many

408 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

hospice services are not properly co-ordinated, let alone supported, the Government is coming up with a "new" hospice care service in the HA.

It may not be productive to keep on fault-picking, but instead let me express how I myself and the medical and dental professions would like to see our health policy develop in the next decade to come. Let us begin by asking a very simple question: "How we would like to see the health status of our people in the year 2003?" Having developed such a goal we then set about to develop implementation machinery, quality assurance monitoring and be ready to face the music should there be any slippage in target.

Time would not, Mr President, allow me to go through all and the many items that need to be improved. I would take up only a few areas that I feel are well within the prerogative of the Government to take a step forward.

Health targets must be developed through which the machinery of health education, prevention of a particular disease or disease pattern could take effect and be used as a gate keeper for minimizing the admission of people into the very expensive hospitals. Disappointingly, this has never found the ears of the Policy Secretaries of the Administration. Instead, in the case of cigarette smoking, for example, while we are confident that the maximum banning especially in young age will bring down the incidence of chest and heart diseases when they get old, the Government acted against the views of the majority of this Council to continue the sale of "confiscated cigarettes".

The progress of primary health care reform deserves a second look. The Report of the Working Group on Primary Health Care was endorsed by the Executive Council and debated thoroughly in this Council in July 1991. But how much has been achieved so far especially on a territory-wide basis? How many well women's clinics are being developed? How totally mature is our primary health care so as to make the elimination of the current problem plagued school medical service possible? Is this caterpillar movement reform due to the meagre budget so allocated to this gate keeper of hospital branch of health care?

Disappointingly, this year's policy address pays effort only on improving the cleanliness and comfort of general clinics — health must be more than just skin-deep.

Mr President, on the point of health care prevention, I would like to draw the Administration's attention to the inadequate direction in the problem of AIDS. Being a universally acclaimed "plague of the 20th century" and there is an expected rising number in the years to come, what moves are there to contain, let alone diminish, the problem? I am confident, Mr President, that this could be done but only with the proper research and collaboration of the workers in the region of Asia and Southeast Asia and perhaps with proper data on HIV/AIDS in Chinese races around the world. Hong Kong has the know how and the will to take a lead, and the Hong Kong AIDS Foundation is all prepared

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 409

to take this leadership role. Yet, with a seed money of some $30 million only, it is not quite possible to go too far.

Another very important point is that in spite of all being said for AIDS education, HIV carriers, let alone victims, are still being discriminated. Schools make excuses not to accept them. Big organizations will not employ them, even hospitals and funeral parlours put them at arm's length.

I call on the Government to instigate without delay a complete antidiscriminatory legislation that will encompass not only discrimination for the sexes but also for those with specific illness and the mentally and physically handicapped.

Mr President, there has never been any consideration to maintain a set of workable teeth for our citizens even at a ripe old age. The fact remains that the Government has not considered the need nor the desire to provide a comprehensive dental service. Yet we know very well that proper dental care in the young is the essence of the maintenance of a good set of teeth even when the population is well advanced in age. As our economy continue to improve and our reserve keeps on advancing, ought we not look into these "teething problems"?

Mr President, it has been some time since the Administration has been advised to come up with a policy direction for the containment of Chinese traditional medical practice and the use of Chinese medicine. It is high time that we should not tunnel our view into western and Chinese medicine alone, but look at the different alternative medicine also to establish a whole spectrum of health care and prepare policy guideline to better the health of our population in the next century.

Mr President, I have spent some time to elaborate the very many issues that this community can move forward to effect better health. We have the dedicated people and the infrastructure to do it. In the same way, Mr President, I have no doubt we can find direction in other social and day to day issues for Hong Kong. The last few months have seen us, however, being "suffocated" by the confrontational and unpredictable macrocosm of our political climate. Let us therefore turn our best side forward by solidifying our social issues to brace the onslaught of the changes of politics.

After all, Mr President, we have been used to the lancinating cold air from the north and the discriminating attitude from the west across the English Channel. Mr President, let us show the world we can!

MR PETER WONG: Mr President, the Governor's policy address this year highlights a significant phenomenon of the state of the territory in the transitional period up to 1997. Threaded through his authentic elaboration of

410 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

"today's success" is the open admission of the Government's failure to maintain a close, co operative relationship with China.

Despite the Governor's acknowledgement of "the breadth and depth of our relationship with China", it is exactly in Sino-Hong Kong relationship that little progress has been made during the past 12 months. I am not only referring to the Sino-British negotiations over the 1994-95 elections, but also to the many areas of cross-border co-operation that must, of necessity, be settled in order to enable Hong Kong to face up to "tomorrow's challenges". We have been alerted to the slow progress made by the Joint Liaison Group in international aviation agreements, extradition of criminals, issue of visas and judicial matters, causing undue uncertainty and confusion. While my honourable colleagues have dwelt at length on the rather loose economic and social fibres in the Governor's address that are unlikely to take Hong Kong beyond 1997, I shall look at the lack of initiatives taken to prepare Hong Kong for its reunification with China.

Political reform

Many accountants join me in welcoming the concessions made by the Hong Kong Government during the recent Sino-British talks, since the negotiations cannot successfully conclude without some deference given by both sides. Concessions guided by expressed public opinion should help produce an agreement acceptable to the people of Hong Kong. According to the Governor, "It is clear that the community wants fair, open elections. It is also clear that the community wants continuity after 1997". Is this necessarily an ambivalence? Does this not make a case for a compromise between status quo and reform?

No one will dispute that Hong Kong people want to maintain our freedom, the rule of law and our existing way of life. But how can we ensure that our existing political, social and economic systems can continue and prosper after 1997 if we refuse to co-operate with China? Is it really true that if we do not stand up for Hong Kong's way of life today, there is no chance of doing so tomorrow? For many of us, it is pure folly to ask Hong Kong people to bargain for democracy by paying too high a price.

Reading between the lines of the Governor's speech, we can detect some arguments based on subjective value judgement and prejudice which have made the negotiations so difficult. The call for Hong Kong people to stand up to "extraordinarily modest aspirations", "what is right", "what is moral" sounds mesmeric; but how will these occidental democratic notions be looked upon by China which has only just embarked on the road to modernization? By insisting on orthodox western democratic norms, are we not stretching the interpretation of the Basic Law to which both sovereign states have put their seals of approval? Will high sounding principles stand up to the practical reality of the agreements already reached between China and Britain? The Chinese saying: "Know thyself and thy adversary to win a hundred battles" serves to illustrate the way to bridge the communication gap that has until today kept China and Britain apart.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 411

The way out of the current impasse is for both powers to abandon their mutual mistrust and bigotry which is essential for "reaching an accord that meets the concern of both sides". If both sides are determined to make a success of the talks, they should go on working until an agreement is reached, without resorting to unilateral action. It is necessary for China and Britain to exercise more flexibility in the forthcoming weeks, taking into consideration the long-term cost and benefits of China, Britain and Hong Kong. This, I believe, is a moral obligation they owe the people of Hong Kong.

Civil Service

The indispensible role of a strong, efficient and stable Civil Service to Hong Kong's smooth transition to 1997 cannot be over-emphasized. It is for this reason that the Government's decision to set up a $7 billion Civil Service Pension Reserve Fund, though long overdue, is hailed as a step in the right direction. It is also for this reason that the controversy over the new localization policy, which has the effect of tipping the balance in favour of expatriate civil servants, must be resolved as quickly as possible.

Many countries in the world have established regulations in support of localization of their civil service, and the Government's over-concentration on legal considerations seems to be unnecessary. Nor can its argument that the new policy helps to cut public spending stand, since it raises the question as to why this cost-saving exercise had not been adopted earlier. While the Administration's objective of non-discriminatory recruitment based on competence is creditable, it has difficulty in justifying the 37% of expatriate directorate grade staff in the Legal, Police, Housing and Customs and Excise Departments.

However, the number of affected expatriates is not as significant to the debate as the symbolic meaning behind the new policy. There is a strong public opinion that the new policy spells a change in the localization policy which has dealt a strong blow to the Government's sincerity. Critics of the policy point an accusing finger at the Government's alleged intention to benefit expatriates with lucrative local terms of employment.

In view of the divisive effects the new policy will have on the stability of our Civil Service, the Government should conduct extensive consultations with members of the Civil Service. The consultation exercise should aim at formulating a set of open and fair criteria acceptable to our civil servants, based on which new employment terms for expatriates can be worked out.

In addition to localization, more needs to be done to equip our civil servants with much deeper knowledge of China than is made available through the existing liaison programmes. This includes more specialist training for the Administrative Officers to cope with an increasingly complex and democratic political system; more opportunities for the generalist civil servants to exchange ideas with the professionals; and more chances for them to cultivate personal

412 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

contacts with their Chinese counterparts. In-depth orientation has to filter through all levels of the Civil Service, and not just confined to the directorate and senior Administrative Officer grades.

Corruption battle

The need to strengthen ties with China is particularly urgent for combatting cross border corruption which has steadily increased in recent months. In China, where personal relations are essentially normal, businesses rely on the offer of gifts, cash or even deposits in bank accounts, which add an average 3% to 5% to the investment cost.

The problem of corruption in PRC companies is of concern to the accountancy profession, since more and more accountants and their client companies are providing services to mainland enterprises. Hong Kong and overseas investors dealing with PRC companies can easily get involved in insider trading, given the volatile price movements and turnover of red chips and China concept stocks. While there are a lot of differences between Hong Kong and China in the concept, regulation and penalty of corruption, the ICAC could only operate within the legal framework of Hong Kong. This would put Hong Kong and overseas investors in a disadvantageous position, and the proposed code of practice for local listed companies does not really address the crux of the matter. The plan to give auditors of all listed companies protection in reporting fraud is welcomed by the accountancy profession, as it will facilitate their dealing with major irregularities.

It is said that the key to combat corruption lies in anti-corruption education which is still at its formative stage in China. The formal visits and exchanges, talks and presentations, and training programmes for PRC officials and businessmen, arranged under the auspice of the Guangdong Procuratorate and Supervision Bureau, should be increased. But first of all, we must get to the root of the problem. A study being conducted by the ICAC and the University of Hong Kong on cross-border corruption will hopefully produce some pointers on the causes and solutions of the problem which needs to be tackled quickly in the run-up to 1997.

Environmental protection

I shall now turn to a subject of my immediate concern — the environment. The deterioration of our environment has been publicly acknowledged, although Hong Kong still lacks an environmental conscience and community action needed to maintain sustainable development. I am somewhat disappointed at the Government's antiquated approach of throwing more resources at the environment and tackling only visible pollution such as the countryside, although the proposed Conservation Fund is highly commendable. The Government is still dragging its feet in declaring the Victoria Harbour water control zone, while the railway companies and the container terminal are too slow in dealing with noise pollution. As legislators, our job is to ensure that

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 413

effective environmental protection legislation, backed up by realistic penalties, are in place to deter pollution.

Mr President, in order to achieve an informed debate on the subject, environmental costing is absolutely necessary. In western countries, green value is included in national accounts to reflect the gains and losses to a country's "environmental capital". Further, economic instruments such as green taxes and permits to pullute can bring the total cost out, and economic analysis and environmental audits can clarify which public policies should be followed. This kind of costing exercise and the appointment of "green managers" should be launched without delay in order to put environmental protection fully into the financial picture.

The intimate economic, social and environmental relationship between Hong Kong and southern China have necessitated co-operation on both broad and specific issues, which currently is confined to water pollution and exchange of information. Progress made by the action programme for protecting the Deep Bay environment conducted by the joint Hong Kong-Guangdong Environmental Protection Liaison Group is slow in forthcoming. Areas of co-operation should include water pollution in Pearl River Delta, Deep Bay and Shenzhen River; industrial pollution in southern China; safety of the floating oil depot at Mirs Bay and the nuclear power plant at Daya Bay; emissions from power stations, and cross-border traffic. I strongly deplore the idea that industrial polluters can just "shift" their polluting act from Hong Kong to the mainland where they are free from penalties. In view of the proximity of southern China to Hong Kong and advances in the best technology available today, it is also necessary for the Government to take another fundamental look at the second stage of the Strategic Sewage Disposal Scheme which straddles 1997, and to consult the Chinese authority on the scheme's implementation. I share the doubts of green groups and academics on the effectiveness and wisdom of live dosing instead of secondary treatment.

Let me round off with some specific environmental issues requiring Sino-Hong Kong co-operation. In view of the fact that our landfill projection is only up to 2005, it is high time that consideration be given to building landfills in China. It is possible for processed livestock waste to be sold to China's fertilizers companies and to set up environmentally friendly product plants in China. We also need to look to China for sand if we are to continue with our land forming requirements. Environmental technology in China, which measures up to international standards, is less expensive than that in western countries. Already, China's environmental products are being introduced to the Hong Kong market — sewage treatment and dyeing waste water treatment methods are being tried out at the Hong Kong Productivity Centre, while heavy metal recycling system is being adopted by local plastic and electronic factories.

Mr President, enough has been said about the importance of a good Sino-Hong Kong relationship to Hong Kong's stability and prosperity upon which the foundation of our hopes is built. What Hong Kong needs is not high sounding

414 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

words, but rather concrete action to enable the territory to make the best use of its unique relationship with China. Both the British and Chinese Governments are urged to exercise flexibility in the next rounds of the Sino-British talks with the aim to reach an agreement acceptable to Hong Kong. At the same time, the Hong Kong Government should set up fast-track decision-making processes in China-related administration issues such as the Civil Service, corruption and the environment. Since these matters affect the future of those of us for whom Hong Kong is our home, there is every reason for the Government to take up the initiatives to work out early satisfactory solutions. Here then is a challenge for the Administration — to show its mettle in the preparation for a smooth transition to 1997, which is the everyday dream of the people of Hong Kong.

Mr President, with these words, I support the motion.

MR MARVIN CHEUNG: Mr President, I welcome the majority of the statements contained in the Governor's speech but I have reservations about the announcements concerning retirement schemes and civil service pensions.

Hong Kong's laws on the protection of the consumer lag far behind those of various developed countries. It is high time the Government recognized its duty to take steps to redress this deficiency.

Many years ago when I was a member of the Consumer Council, I chaired a subcommittee of that Council on product safety. I can, therefore, attest to the fact that the Consumer Council has been urging the Government to enact laws to protect consumers against unsafe products for over 10 years. I am glad to see that, at long last, something is being done.

The question of whether or not to introduce either a central provident fund or a compulsory retirement scheme has dragged on for about 30 years. Despite its earlier rejection of a central provident fund and its apparent reluctance to implement its own revised proposal on a compulsory retirement scheme, the Government has not been able to put the question to rest or to come up with a viable option. I, for one, am very disappointed at the delay in presenting the people of Hong Kong with a final proposal.

In his speech the Governor said: "It will take time to establish a consensus in the community for the right way forward." I would venture to suggest that it should by now be clear to all that a consensus on retirement schemes is most unlikely ever to be reached. The Government should, therefore, be prepared to take the lead in formulating a final proposal on retirement schemes and presenting it to this Council and the public without further delay.

At this point I should like to say a word about the retirement schemes debate so far, particularly about the public consultation exercise which was referred to by the Governor. In my speech to this Council during the debate on a community-wide retirement scheme in February this year, I said that the

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 415

consultation paper was riddled with incomplete information, partial interpretation and misleading statistics. I argued that, until the fundamental question of the rationale for a compulsory retirement scheme was worked out, satisfactory arrangements made for the security of investments and a way found of guaranteeing adequate retirement benefits, it would be foolhardy for the Government to attempt to impose a compulsory retirement scheme on the people of Hong Kong. I stand by those arguments and I repeat them now in order to impress upon the Government that their consultation exercise was inadequate. The public will expect the Government's next proposal on retirement schemes to address the serious questions that I and others have outlined and to substantiate its proposals with complete and unambiguous information.

I turn now to the proposal to set up a Civil Service Pension Fund with a government injection of $7 billion of public money. As in the case of retirement schemes, I am wondering if the Government has done its homework properly. In particular, I, like many others, am curious about where the figure of $7 billion has come from. I was dismayed to hear the Deputy Secretary for the Civil Service say in answer to this question that it is what they feel they can afford.

What is the rationale behind the Fund and how is it going to work? The Government should state its aims and objectives clearly because the inescapable conclusion otherwise is that the proposal is merely cosmetic, a halfhearted attempt to deal with worries and pressures that have built up within the Civil Service.

If a Fund is going to be set up, it must be set up properly. I, therefore, ask the Government to explain the following: first, what was the actuarial valuation of the past service liability as at 31 March 1993 and how much of this was vested at that date; second, how is the $7 billion figure computed and how is it related to the amount of the accrued liability; third, what will be the future policy on the maintenance of this reserve; and fourth, what real protection, if any, is afforded by the appropriation of funds under section 29 of the Public Finance Ordinance?

I welcome the promise of a $100 million grant to establish a Provisional Arts Development Council, but more detailed information on funding is needed. It is unclear what this sum of $100 million is actually for. Will there be an additional annual grant? For longer-term planning, it is essential for the Government to state the level of funding which it proposes to allocate to the arts on an ongoing basis.

In case there is a danger of our being blinded by government generosity, I would point out that the $35 million annual grant to the Council for the Performing Arts (CFPA), which has been more or less frozen for the past three years, would have to be increased to, at least, $50 million just to catch up with inflation.

416 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

Further, it should be remembered that the proposed Arts Development Council has a much wider area of responsibility than the present CFPA. It will, therefore, require additional funds over and above what was previously provided for the CFPA.

I agree that the introduction of performance pledges has made a good start. However, the impression overall is that pledges are often set at very minimal levels and I believe they could do with some fresh impetus. Most public service bodies state the obvious as to their purpose and confine themselves to waiting times and vague commitments about efficient and courteous service. Some do not even address the full range of services on offer.

Without wishing to belittle good intentions, I note, for example, that the Legal Aid Department may still keep clients waiting up to an hour before providing help to fill in a form, that it may take more than 28 days for a means test to be concluded and up to 28 days after grant of legal aid before the first interview is given. Out-patients, even once they have queued to be given an appointment, may still be expected to wait up to an hour after the appointed time before being attended to.

It is time we saw some more ambitious performance pledges. I urge the Government to take the lead in setting higher targets and in advertising implementation dates.

I understand that the Judiciary has yet to publish its performance pledges. However, I welcome the announcement by the Chief Justice last week that he has set up a working party to conduct a comprehensive review of the administration of the Judiciary and make proposals for improvement. I suggest that waiting times at our law courts are unacceptable. I urge the Judiciary to pledge that a reasonable waiting time of not more that three months for all courts is their objective. They should aim to achieve this target within 12 months' time.

Finally, there is an important omission from the Governor's speech. The consultation period for the review of the Town Planning Ordinance ended in May 1992 and since then we have heard nothing. Lest we lose sight of this important piece of legislation, which bears directly on the general quality of life in Hong Kong, I urge the Government to give it the priority it deserves and proceed urgently to present its final proposals to this Council.

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

MR CHEUNG MAN-KWONG (in Cantonese): Mr President, Hong Kong will revert to Chinese sovereignty in four years. In the latter part of the transition period, the issue of education reform in Hong Kong may be dealt with in the following two ways. First of all, we can go for internal reform and the crux of the issue is then how to come up with the ways and means with which the education standard of Hong Kong can be raised as a whole in an effort to carry

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 417

forward the economic and social development of Hong Kong. At the same time, in terms of carrying out the required institutional reform, and in order to tie in with the political transformation, the most important guiding principle is that the colonial education system in Hong Kong should develop along the lines of a national education system.

The theme in the area of education as enunciated in the policy address of this year is quality education, which calls for the improvement of education standards. However, it can be seen from the contents of the policy address that most of the issues raised are in fact old issues which are raised again for purely cosmetic purposes. They include increased provision of graduate teachers for primary schools, abatement of noise affecting schools, renovation of school premises and provision of special care for Band 5 students. The only new features relate to the increased provision of graduate teachers for secondary schools, the setting up of the language fund and the stepping up of computer education. Scattered and piecemeal reforms such as these are not able to cope with the situation at all; the crux of the problem which faces education reform remains unresolved. In terms of implementation, it is evident that for lack of a proper plan, the Government actually finds itself booed by spectators on all sides as it keeps passing the ball around in mid field in a political football match without the heart to try a shot at the goal.

Mr President, the improvement of education standards is a project which has to be complemented by a comprehensive plan. The most important element in the process is the availability of qualified teaching staff. The most serious shortcoming of the policy address is that the Government is still being rather evasive on the issue of providing direct subsidy to improve the pay of kindergarten teachers. If such subsidy is not forthcoming it will seriously dampen the desire of kindergarten teachers to receive training and this will in turn aggravate the brain drain problem. In so far as primary school education is concerned, the Government has seen fit to suddenly increase the number of teachers without any prior planning whatsoever. This has resulted in the percentage of trained teachers in primary schools falling from 90% to 80%. The two trends which I have just described will have a negative impact on the quality of teachers. It is up to us to draw up a 10-year plan to address the issue of how to increase the number of teachers trained at various levels in order that the goals will eventually be achieved of filling all secondary teaching posts, and 50% of primary teaching posts, by graduate teachers and ensuring that all kindergarten teachers are fully trained.

In addition to qualified teaching staff, education reform should also address the issues of the teaching medium and curriculum design. The Hong Kong education system has already progressed from elitism to universalism. In keeping with the progress, it is necessary that the status of the Chinese language should also be elevated as the mainstream language in so far as the issue of the teaching medium is concerned, as part of the effort to advance the cause of bilingualism in education. In terms of curriculum design, the learning ability of middle achievers who form the vast majority of our students

418 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

should also be taken care of. The effort should be made to rationalize and modernize those parts of the existing curriculum which are either out of date or plainly too difficult. The policy address only mentions the setting up of an uncontentious language fund. The failure to address the demand of educators for the mother tongue to be used as the teaching medium as well as for the reform of the curriculum is its second shortcoming which I have identified.

Reforms regarding teacher training, language in education and curriculum design must also be complemented by a good teaching and learning environment. It is not enough for the policy address to propose measures for the abatement of noise affecting schools and for the renovation of school premises. The most critical problem affecting the teaching and learning environment at this point in time is the practice of having floating classes in primary and secondary schools. The truth is that, presently, whole-day schooling is only nominally practised in primary schools. In real practice, the Government has seen fit to allow bissessional primary schools in the old districts to carry on as usual. They are left entirely to their own devices. There is no timetable for the implementation of whole-day schooling to speak of. Meanwhile, in terms of floating classes in secondary schools, the practice will not be discontinued in Form V and lower forms until the year 2002. In so far as floating matriculation classes are concerned, it is likely that the practice will go on forever, or for the next 50 years, to say the least. Is the Government serious about improving the teaching and learning environment? I think its failure to address the problem of the floating class is a third attempt to evade the real issue, and a third shortcoming of the policy address.

The policy address has nothing at all to say about tertiary education. There is only the same reiteration that in 1995, 18% of the young people in Hong Kong who are old enough to attend colleges and universities will be able to do so. Not only is the policy address lacking in new ideas but also, more importantly, it has effectively evaded the new problems which have arisen as a result of the rapid expansion of tertiary education. For example, one might ask: Has the quality of our tertiary students as a whole declined? Are there enough competent matriculants enrolling in tertiary courses? Are the non-degree courses able to meet the needs of our new circumstances? Have the tertiary school fee increases been too exorbitant? What strategic developments are earmarked for our tertiary education in the 1995-1998 triennium? All of these questions call for answers because tertiary education accounts for one third of the total expenditure on education. The failure of the policy address to answer any of these questions is its fourth shortcoming which I have identified.

Mr President, from a macroscopic point of view, there is a need for institutional reform to be carried out to the education system in Hong Kong. And reform should aim on the one hand to eliminate gradually the irrational features of our colonial education system and on the other hand, to retain the special characteristics of our system in order to serve the cause of two systems coexisting within one country. Concurrent with Hong Kong's reversion to China we will have to continue to face the new challenges of the world. During

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 419

the critical transition period we are going to have to face up to a whole lot of issues which must be resolved internally by the local circles of educators. Such issues include how the mother tongue is to be adopted as the teaching medium and how national education is to be promoted, how the teaching of Putonghua and English is going to be strengthened, how we can achieve a more balanced view of China, Chinese history, Chinese geography and Chinese culture, how the western concepts of democracy, freedom, human rights and the rule of law can be grasped through civic education, and not least, how the degrees awarded by academic institutions of China, Hong Kong and Taiwan are to be accredited. All of these issues will require us to do some reflection in search of a solution which will serve the interests of Hong Kong.

The strength to solve problems must come from within Hong Kong; we should not succumb to external pressure and intervention. It is paramount that two most important democratic mechanisms must be set up within Hong Kong. An Education Commission which is mainly made up of elected members should be set up. The other advisory bodies on education matters should also make a point of listening to public opinion in an open and democratic way. The views of professional educators in particular must be heeded in the formulation of policies on education in the run-up to 1997 and beyond. Mr President, there is a need for the existing Education Commission to undergo reform so that it will become more socially accountable. The secretive system, which is already out of date, must be completely dismantled. A popularly elected system should be instituted in its place as soon as possible so that there is more accountability to the electorate. I can say here that secrecy and the appointment system are two stumbling blocks which lie in the way of progress. The presence of these obstacles means that the Education Commission is not able to see the wide horizons which lie beyond.

In addition to reforming the Education Commission, there is also a need for the setting up of a popularly elected Teachers Council. The Council will promote the professional development of teachers, enforce the professional discipline, and assess the professional qualifications of teachers. An independent, autonomous and self-regulating Teachers Council will represent the conscience and moral strenght of the teaching profession. It will carry the teaching profession into 21 st century Hong Kong. It will effectively become the Project Hope of Hong Kong. After all, hope rests with talents and talents are produced by education.

Mr President, I should like to move on to the topic of the Civil Service. The civil service establishment is and will continue to be the administrative framework of the existing and the future government. It is an important pillar which supports social stability. Of all our civil servants we would have to rely most upon those local officers who are committed to Hong Kong. It is subject to that condition that expatriate officers who have either the ability and the expertise which we require should be recruited into our Civil Service to make their contribution to Hong Kong. In this regard, the most urgent priority is for the Government, in order to forestall the splitting of ranks, to freeze its plan to

420 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

unilaterally allow expatriate officers to switch to local terms. The Government should accelerate the implementation of its localization policy in a serious and expeditious manner. It should unify the terms of employment for both local and expatriate officers. Government departments which have been slow in implementing the localization policy — and they include the Legal Department, Legal Aid Department, Environmental Protection Department, and the Police Force — should be required to draw up a timetable for localization before 1997. This is to ensure that the cause of Hong Kong people ruling Hong Kong will become reality within the Civil Service.

The Government should be concerned about the morale of and the pressure faced by civil servants. Pressure comes on the one hand from jitters about 1997 as well as public expectations on the other hand. The public is expecting the Government to become more open and more accountable. Given that such pressure is quite inevitable, the Government should be all the more concerned about the worries which civil servants may have in going about their daily lives and in the course of carrying out their duties. The morale of civil servants must be maintained so that the Government as a whole can continue to be efficient. In this regard I would lend my support to the setting up by the Government of a pension fund for civil servants. Indeed, a pension fund for civil servants is not incompatible with a central provident fund for members of the public. They are by no means mutually exclusive. The most important thing is that civil servants should not have to worry about their future. A sense of security will encourage civil servants to work that much harder and eventually the community as a whole will be able to benefit. Mr President, I would further suggest that the pension fund for civil servants should be operated independently. It should be separated from the operation of the government reserves. An independent committee with both professionals and civil servants on it should be set up and charged with the responsibility of managing the fund.

Mr President, I would like to move on now to civil service issue outside the context of the policy address. The civil service establishment stands at 180 000, representing 6.5% of Hong Kong's total working population. Whereas their rights are protected by the Civil Service Regulations and Colonial Regulations, they are at the same time restricted by these two documents. The protection of the rights of civil servants should be the first priority of the Government. If the Government is to live up to the pledge made in the policy address that it will play the role of a good employer, then it should set a good example of allowing civil servants and employees of the subvented sector to have the right of collective bargaining. The Government and the civil servants should make good use of the mechanism for reconciling competing interests to reach an agreement which will be acceptable to both sides. This will enable the two sides to establish a healthy and progressive labour management relationship. Moreover, the Government should set up in the not too distant future an arbitration committee which will resolve pay issues of civil servants and their colleagues in the subvented sector. This will avert industrial actions by civil servants and any unrest which may ensue.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 421

Lastly, I would like to talk about the issue of senior civil servants switching to work in the private sector. Statistics indicate that in recent years there has been a rising trend of senior civil servants taking early retirement or resigning altogether. And incidentally, their applications for switching to work in the private sector immediately are almost without exception all approved. In this regard, one is worried, for one thing, that confidential government information may be leaked to the detriment of both the Government and the public. On the other hand, one cannot help but suspect senior civil servants of actually abusing their positions to cultivate relationships which will help them advance their post civil service careers. In the face of increased public suspicion in this regard, it is up to the Government to reveal to the public, and be seen to strictly enforce, the regulations which govern retired senior civil servants joining the private sector. This is in order to avert the scenario of the senior government official jumping on the business bandwagon, with indecent haste, immediately after retiring from his or her public office. The public should not be left with the impression that the officials are fending for each other, and that government and business are illicitly collaborating with each other. The public credibility of the Government should not be made to suffer.

Mr President, I always talked about democracy and political reform in the previous policy debates. Today, it is not my intention to again talk at length on such issues lest I be accused of using the occasion to vent my anger. I recall a famous Chinese poetic line which says that one must not overdo it in venting one's anger because one should take a longer view and in any case, getting too worked up is injurious to health. Put simply, the wisdom there is to refrain from saying useless things and look ahead. My policy is very simple indeed. I want to strive for a Legislative Council to be fully elected and the executive branch of government to be accountable to the legislature, and I want these to become reality before 1995. I will fight every inch of the way and I will not give up until my goal is achieved. I very well understand that democracy will be opposed or otherwise delayed by any totalitarian regime worthy of the name. I have long given up hope on such a totalitarian regime. I am only pinning my hopes on the awakening of more and more citizens, and on my own struggle. I am convinced that even though the democratic system may not be carried forth by the through train, the faith in and the pursuit of democracy which people have begun to embrace will surely continue into the future of Hong Kong. Democracy will not only straddle 1997 but will also straddle the Shenzhen River. It is a cause which will become a bond between the 1 billion-plus Chinese living in various parts of China. Together, we will continue this fight for democracy.

Mr President, I so submit.

422 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

MR CHIM PUI-CHUNG (in Cantonese): Mr President, I shall respond to the Governor's second policy address blow by blow and to give my personal views.

First, on the question of Hong Kong people's livelihood. In the Governor's address, there are 19 expenditure items in respect of which funding will be increased next year. Of these, two items involve consumer protection, two items on road traffic, two items on environmental protection, five items on education, two items on medical services, three items on social welfare and rehabilitation services, and one item each on elderly services, arts and civil servants' pension fund. Total expenditure thereon will amount to $21.1585 billion. I question whether the expenditure as conceived constitutes a breach of Article 107 of the Basic Law which requires that expenditure shall be tailored to income. What the Governor is proposing arguably constitutes putting expenditure first irrespective of whether income can cope. He should have assured us that our income will exceed the proposed expenditure. As it now stands, expenditure will increase by 15%. To the people, this smacks of a policy of "throwing pepper powder all round". "Pepper powder policy" is a policy whereby everyone gets a bit of something. The powers-that-be may think that pepper powder may not be "hot" enough. But to the man in the street this amounts to throwing money all round. Now that the policy address has been delivered, in the upcoming Budget branch secretaries will need to explain the major items of expenditure under the "pepper powder policy" of the Governor and to ensure that it suits Hong Kong's particular circumstances.

The Governor's address makes special mention of a policy on elderly people. We must understand that in present-day society none is against respecting and caring for the elderly. Yet I hope that the Government will impress upon the public the need to start saving money when young (but not with the Royal Hong Kong Jockey Club) so that society will yield a reasonable return to see them through their old age. The Government has an obligation to guide the public on this.

Mr President, paragraph 113 of the address says: "In a modern, urban society it is all too easy to ignore the rights and personal dignity of the individual. It is particularly important that the Government should set its face against such attitudes." The Governor has argued this point beautifully. But on 28 September he attended an earth-breaking ceremony for a building project at Jubilee Street, Central known as H6 Development. It is beyond doubt that this project is a joint venture between the Government and private developers. But, Mr President, before I go on, I would like to declare my interest as a victim. Before the making of the order for resumption under the relevant law, one of my companies lodged an appeal with the Privy Council. Even before the conclusion of the case, the Governor has probably been misled about it. (The site marked red in the plan here used to belong to one of my companies. This probably shows on the closed circuit TV. The Government has resumed ownership over this site, in other words, sovereignty over it has passed. But no compensation has yet been paid.) Such being the position, the Governor has had the foolhardiness to attend the earth-breaking ceremony. I cannot help but ask:

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 423

Does this constitute contempt of the courts in Hong Kong and the United Kingdom? If I strongly demand the relevant government department to address this question......

PRESIDENT: Mr CHIM, you said that the case is still pending. Is that right? MR CHIM PUI-CHUNG: Yes.

PRESIDENT: In that case, you are out of order because under Standing Order 31(2) reference shall not be made to a case pending in a court of law in such a way as, in my opinion, might prejudice that case. So please bear that rule in mind.

MR CHIM PUI-CHUNG (in Cantonese): Mr President, I accept your advice. But if I did wrong, the Governor already had done it before me. I hope that the Government will officially resolve this question to enable the public to get at the truth through fair and reasonable channels. Here I would challenge the Government to the effect that if the development project in question were not meant to make profit I would be happy to let my company get only 70% of the market value of the site by way of compensation ......

PRESIDENT: You are out of order. Please desist.

MR CHIM PUI-CHUNG (in Cantonese): Mr President, I already declared my interest. I respect you as President of this Council. Yet I cannot help but doubt whether I have breached Standing Orders. Anyway, I hope that the point I have made will serve to get my message across to the Government.

Mr President, I now turn to constitutional reform. When the Governor first came to Hong Kong last year to take up the governorship, I gave a radio interview where I expressed my views and offered the Governor some advice. He is now the Governor, not the chairman of the Conservative Party that he used to be. His present opposite number is Mr LU Ping of the State Council, not the Chinese Premier nor Mr JIANG Zemin. Moreover, the Governor came from the Bath Constituency in England where the electorate numbered no more than 80 000. He lost the election there. He is not Jesus Christ who is omnipresent. Thirdly, China will be Hong Kong's sovereign power after 1997. China has special demands on and relations with Hong Kong. We should keep a close eye on this. Fourthly, over endearment to the public or other similar activities might amount to incitement of a sort. Has there been such a change in the past? If Mr PATTEN is or was a British politician we, as the people and Councillors of Hong Kong, are not qualified to interfere. But as the Governor,

424 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

he is obliged, as we hope, to lead us through the latter part of the transition. Therefore we are qualified and indeed obliged to remind him of what is expected of him. As regards the Sino-British talks on the 1994-95 elections, although the British Government constantly requests for guidance from the British people as to the objective approach to such talks, yet the Chinese Government has time and again stressed the importance of the through train and the Sino-British Joint Declaration. Such being the circumstances, the basic objective factors should be as follows:

(1) Legislative Council Members returned by the 1995 elections who possess foreign passports or foreign right of abode should not exceed 20% or 12 in number.

(2) They should support the SAR Government.

(3) They should support the Basic Law of the SAR.

Of course, as participants in politics, if we hope to ride the through train from 1995 to 1999, we must understand that there is a Basic Law governing us. If we think that we are politically well endowed, that may lead to "political suicide" or "political conceit". This would have nothing to do with the Basic Law, the objective conditions or the people of Hong Kong. As a matter of fact, as an experienced politician, the Governor fully understands what the outcome of the talks with China on the 1994-95 elections will be. It is because it has been clearly spelt out in the Basic Law. If amendments were sought or other requests were made before the electoral arrangements had been clearly spelt out in the Basic Law, I would have thought there should have been little problem. But now that the Basic Law has already set out the mode of elections which has been agreed to by the people, I should think the Governor well knows where he stands.

In the policy address there are 20 paragraphs under the Conclusion section which makes rather emotive reading. I think that as a responsible Governor leading a government, Mr PATTEN should tell in a clear and pragmatic manner the people the following:

(1) Hong Kong will not be an independent entity after 1997. Before 1997 Britain exercises administration rights over Hong Kong and after 1997 sovereignty over Hong Kong will pass to China.

(2) The pace of democratization must follow the provisions of the Basic Law.

(3) If the people of Hong Kong have no confidence in the "one country, two systems", the Basic Law and the Chinese Government, they should leave together with the British. It is a basic obligation of the British to take these people with them.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 425

(4) If some people do not want to leave Hong Kong or the British would not take them along, they will have no alternative but to have confidence and to be carefree about the future.

I personally have a firm belief that since China has promised to implement "one country, two systems" there is absolutely no cause for China to fear the espousal of democracy by Hong Kong people. What China fears is that Hong Kong people might fall for the ruse that to be hostile and against the policies of China would be the best policy. Of course, all these sentiments are subject to the influence arising from the interplay of international objective factors and party politics. Therefore I believe that the talks on the 1994-95 elections will in the near future arrive at a consensus. The agreed mode will be that there will be no more than a couple of representatives from the largest functional constituencies as originally advocated by the Chinese Government. As the 1995 elections will take place under the Hong Kong British Administration, Hong Kong CPPCC delegates and NPC deputies and officials of Chinese organizations here should abstain from the elections. As regards other aspects, it is believed that further concessions will not be possible. Will the public accept this? The Governor should assure the public that this is going to be something he can secure for us. He has aroused the interest of the United States in Hong Kong. But he would do well to remember that on his return to the United Kingdom, be it before or after 1997, it is only there and nowhere else that his political future lies.

Mr President, on the question of Sino-British relations, the Governor has during the past two years made a number of commitments. But has he fulfilled these commitments? It is rather like the position of a student who constantly says he will do his study work but in the event may not do it. In this connection, we understand that the party in power in Britain now is the Conservative Party which is backed by the business sector. And the business sector will absolutely not sacrifice, for nothing, whatever in the way of commercial interests that has hitherto been achieved between China and Britain. Such being the circumstances, Hong Kong people should awaken to reality. What is tomorrow? What is a government's commitment? The Governor should demonstrate a responsible attitude towards all quarters. Therefore he should not excessively use emotive rhetoric to mislead the public.

Mr President, finally, I am turning to financial services. When the Governor delivered his policy address on 7 October last year, the Hang Seng Index stood at 5 553. Today, as at 3 pm, the index stands at 8 935, a rise of 3 382 points representing a 60% to 61% gain. This proves that Hong Kong does possess all the favourable conditions. Of course, the stock market of Hong Kong rests on the following four pillars:

(1) Financial services. At the sufferance of the Government, banks in Hong Kong are basically implementing a profiteering policy which results in guaranteed profits.

426 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

(2) Real estate. Real estate prices are being buoyed by the Government's high land price policy. Real estate development companies, upon revaluation of their capital assets, will stand to gain even more.

(3) China's open policy. China's open policy has reinforced the ability of Hong Kong's manufacturing industries to make money although some may fail to survive.

(4) The tourism industry. The success of Hong Kong's tourism industry is a result of the interplay of various factors. The hotel occupancy rate in October is notching 100%. This is a source of Hong Kong's competitiveness.

We are aware that the Securities and Future Commission (SFC) and the Stock Exchange have a set of regulations to regulate the trading of local and international stocks and shares, particularly with regard to market rigging and insider dealing. The SFC has time and again to take action to monitor listed companies. In recent days, especially the past two to three weeks, some managers of foreign funds have been saying that they are going to drive the stock market through the roof. Senior officials of the SFC are of the view that since these funds are buying stocks and shares with hard cash there is nothing wrong about it. I request that the Government should have a fair system in place which will not only regulate local listed companies, local investors but international investors as well. The Government should not be at a loss as to what to do when it comes to international investors. In 1987, the Hong Kong investing public lost $2 billion. A responsible government should make preparations well in advance of contingencies and should not just fall back on shutting the stable door after the horse has bolted. As a representative of the financial services sector, I have responsibilities of my own to bear. (I must have incurred the displeasure of some people who must be saying "Don't start any trouble while the stock market is going from strength to strength!") But I feel it is my responsibility to speak my conscience. I hope the Government will grasp this and pay due attention.

Thank you, Mr President.

REV FUNG CHI-WOOD (in Cantonese): Mr President, the policy address fails to present a comprehensive policy although it is supposed to be a document through which the Government makes itself accountable to the public. All it does is to inform the public in a piecemeal manner plans and projects which the Government wishes to implement. In last year's policy address, the positive approach was taken to inform the public that the Government had accomplished 73 of the 118 targets listed in the White Paper on the environment 1989. However, in this year's policy address no mention is made of the number of projects which have not yet been accomplished. Is it true to say that in terms of environmental protection there has not been any good work done over the last

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 427

year which is worth mentioning? Is that the reason why no attempt has been made to give an account of the progress achieved so far? The fact is that many of the targets listed in the White Paper have not been accomplished on schedule. The reasons for this are many. While there may have been administrative problems, the main problems are with manpower shortage and lack of resources. The most obvious example is the long delay in terms of proclaiming the water control zone in Victoria Harbour. In this regard, one is rather sceptical as to whether the Government really has the will to tackle the problem of environmental protection.

The success of the Government in its effort to protect the environment depends very much upon whether it is able to secure the support of the public as well as the business sector. It is very important indeed that we should practise what we preach. The theme used in the government campaign which says that environmental protection is a joint venture actually has a far greater implication than has so far been suggested. It has a far richer meaning. No mention is made of it in the policy address. However, the intention of the Government can be quite clearly guessed when one comes to think of the recently launched sewage charging scheme. The Government does not provide the required resources in its effort to clean up the environment; what it means by "joint venture" is that the business sector and members of the public have to bear the pollution clean-up cost.

The Government has resorted to imposing a levy on the business community and the public as a whole on the pretext of "the polluter pays". In so far as the business sector is concerned, it is very reasonable that the cost of pollution clean-up (or extraneous cost) should be incorporated into their production cost. This will put an end to the present practice of the general tax revenue being used to subsidize the cost of cleaning up the mess created by business and industry. However, the principle that the polluter pays should be defined clearly in terms of its application.

It is likely that the future government will continue to impose levies on the people of Hong Kong by invoking the principle that the polluter pays. It is up to the Government to define that principle in terms of its application. The so-called acceptable level of pollution should be clearly defined. Questions regarding who should pay for the cost of cleaning up pollution and how much one should be required to pay should be answered.

It would seem from the way the principle of "the polluter pays" is being interpreted that it is a principle which is analogous to the principle of "the user pays" whereby everyone who uses a service will be required to pay towards its cost. However, there is not much incentive provided under the charging scheme of the Government in terms of encouraging people to cause less pollution. It would seem that the charging scheme is more oriented towards recovering cost than encouraging people to pollute less. As a matter of fact, the introduction of levies by the Government to pay for the cost of provision of basic services is not unreasonable from this point of view. And by basic services I mean the

428 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

building and repairing of bridges and roads, the provision of street lighting and the collection of refuse. However, if the Government resorts to charging for its services item by item, just as it has done with the medical service, then it becomes effectively a practice of itemized charging. In this connection, it is likely that the Government will in future, in addition to charging for sewage treatment, also charge for collecting garbage. I am concerned that the combination of all these charges will bring economic hardship to people in the low income brackets.

Supposing the Government is really serious about this hallowed principle of the polluter pays, then one would wonder why it has not been consistently applied in the formulation of its policy to introduce charging schemes. I will use three examples to illustrate how the Government has failed to thoroughly implement the polluter pays principle.

First of all, in October last year, the Government came up against resistance while it was trying to implement its new arrangement for the disposal of building waste. The plan has been put on hold for a year now. Large quantities of building waste are still dumped at the landfills. Instead of being transported to the public tipping areas, the building waste continues to take up valuable landfill space. We are faced with the result that public money is still being used to subsidize the building construction sector in so far as they continue to use the landfills to dump their building waste. According to statistics provided by the Government, the total cost of handling solid waste in the year 1991 came to $470 million. Given that building waste accounted for 70% of solid waste, its handling cost was $320 million. This is an example of taxpayers' money being used to maximize the profits going to the developers.

Secondly, although the Government has in place a scheme to levy charges on business and industry for solid waste disposal, and all vehicles carrying solid waste to the landfills are to pay a waste handling charge, the levy rates are not entirely in keeping with the principle that the polluter should pay. For one thing, the scheme has failed to transfer the cost of handling waste entirely to industry. For another, the levy is so small that the building industry has no incentive at all to redirect their waste to the public tipping area in an effort to relieve the pressure on landfills.

Thirdly, under the chemical waste disposal charging scheme which will soon be implemented, the Government has made it clear that it will be 10 years before the annually increased charges will yield sufficient return to recover the cost of disposing of chemical waste.

By giving the three above examples, I wish to make the point that the antipollution policy of the Government has been too easy on business and industry. I am wondering why the Government has not been able, in dealing with business and industry, to adhere closely to its policy of getting the polluter to pay.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 429

We cannot continue to count on the Environmental Protection Department single handedly implementing environmental protection policies and actually achieving the result of marked environmental improvement. The reason is that we can see from the policies of the Environmental Protection Department that they are mostly policies of a remedial nature. The department has scarcely any other policies which will prevent the further pollution of the environment. It is up to us to look at the issue of environmental protection from a macroscopic point of view. One question we should ask is whether, and to what extent, the environmental dimension has figured in the process of policy making. The Government is always the champion of economic development. Environmental protection measures are always secondary to economic gains. Since the environment has always to give way to economic considerations, there is no way environmental protection policies can be fully implemented. If it is the view of the Government that environmental protection is a secondary issue and an issue which does not enjoy the pride of place, then it can very easily come up with all sorts of excuses to retreat on its environment policy. The cost of environmental neglect is of course that our descendants will have to pay an even higher price to put things right. The worst case scenario may even be that the environment will eventually have reached such a point of degradation as to be completely beyond remedy.

In so far as traffic and transport is concerned, the policy address mentions that the the number of private cars has risen by 62% over the past five years, in other words, the annual increase has been 12.4%. According to the figures released by the Government in the early part of this year, if the number of vehicles continues to rise by a yearly 9%, then by the year 2001 the number of vehicles in Hong Kong will have risen from 400 000 to 600 000. In this regard, it is expected that the problem of air pollution will worsen. However, no mention has been made of the environmental impact in the policy address. Neither has there been any commitment made with regard to the adoption of any policy to restrict the growth rate of vehicles on the road. The Secretary for Planning, Environment and Lands said at a briefing that the Transport Branch is seeing eye to eye with the Planning, Environment and Lands Branch with regard to the need for a solution to be found to the problem of air pollution caused by the rising number of vehicles on the roads. It is unfortunate that no commitment has been made specifically with regard to how to control the growth of vehicular traffic.

As a matter of fact, the problem of air pollution is not only caused by the increasing number of vehicles on the roads. It is also related to the fuel used by vehicles. Diesel is a more serious cause of pollution than petrol. However, the tax on diesel is half that on petrol. As a result of the tax discrepancy, people are encouraged to go for diesel. If the Government is indeed serious about alleviating the problem of air pollution, then it should review the existing tax regime so that the discrepancy can be narrowed. I am very disappointed that, although the scheme to encourage the use of petrol by taxis, mini-buses and other vehicles has been studied and debated again and again by the

430 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

Environmental Protection Advisory Committee over the last three years, it has yet to be fully implemented.

The policy address has three points to make with regard to the issue of environmental protection. The more important point there is that the Government plans to use several billion dollars over the next 10 years to complete the cleaning up of the New Territories. It is a well known fact that the problem of pollution is very serious in the New Territories. However, as the New Territories cover a relatively vast area and are physically quite far away from the seat of the central authorities, it would seem that the Government does not have the manpower for enforcement and prosecution. According to a survey conducted by the Environmental Protection Department, there are over 300 pollution black spots in the New Territories. Included in these black spots are some 550 hectares of agricultural land which is not governed by the Town Planning Ordinance. Most of these agricultural lands are used for open storage purposes. Improper change of land use means that the water absorbing function of the land is reduced and flooding has become more prevalent in the event of heavy rain. I would personally welcome the plans suggested in the policy address. However, it is up to the Government to multiply the manpower of the Environmental Protection Department and the the Planning, Environment and Lands Branch, particularly in their prosecution sections. It would seem from the data provided by the Government that the river training works in respect of the Shenzhen River, Indus River and Sheung Yue Ho as well as the drainage works required by Kam Tin and Yuen Long will already come to $5.8 billion. I would like to ask if this sum is also included in the several billion dollars earmarked in the policy address for the cleaning up of the New Territories. The river training works planned for these rivers are more for the purpose of preventing flooding than the purpose of environmental protection. One would like to know how the several billion dollars committed by the Governor is actually going to be spent. I hope the Government will provide a full answer to this question.

I would fully support the government plan to set up an Environment and Conservation Fund with a capital injection of $50 million so that environmental protection organizations will be able to conduct research and carry out their activities. Indeed, that is also a cause for which the environmental protection organizations have been campaigning over the years. However, there are many people who are concerned about who is going to make the decisions to allocate funds to whom and what the criteria will be. I hope that the Government will, in addition to consulting the central advisory committees, also see the point of consulting with the environmental protection organizations in order that the funds will be equitably and fairly disbursed.

As a result of changing circumstances, the Country Parks Ordinance drawn up in the 1970s is not able to give quite enough protection to country park lands in terms of saving them from the encroachment of development. An obvious example of encroachment is the use for over 20 years by the authorities concerned of 18 hectares of land which falls within the precinct of the Clear

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 431

Water Bay Country Park as part of a landfill for southeast New Territories. Another example is the approval by the Agriculture and Fisheries Department of the application for Sha Lo Tong to be developed into a golf course. In this regard, there is a need for the Country Parks Ordinance to be further revised so as to forestall any further encroachment of country park land or any other attempt to alter the prescribed use of country park land.

With regard to environmental protection in the private sector, the Governor has suggested the creation of the green manager posts to conduct environmental inspection and energy reviews. I would consider this suggestion to be worth supporting. However, I also have my misgivings about how many private firms will actually carry out energy efficiency audit on their own initiative. The Government should not be content with its policy of positive non-intervention and rely entirely on the initiative of the private sector on the issue of environmental protection. It is up to the Government to go for a more positive approach and legislate against environmentally unfriendly acts.

With regard to the energy policy, the Administration said in reply to a question which I raised last year that the Government was spending $5 billion each year in the energy area. A motion was passed by this Council last year urging the Government to formulate a comprehensive energy policy as well as to set up an Energy Advisory Committee. However, no comprehensive energy policy has been forthcoming from the Energy Efficiency Advisory Committee set up by the Government because its terms of reference have proved to be too restrictive. It is indeed ridiculous that under the present arrangement the Economic Services Branch has been ironically entrusted with the task of formulating the environment policy. The Economic Services Branch is mainly concerned with the issue of economic efficiency and tends not to bother too much about seeing things from the perspective of environmental protection. It is up to the Government to practise what it preaches in an effort to reduce the waste of energy. It should formulate policies which will encourage the public and industry to save energy. For example, people should be encouraged to purchase products which are less energy consuming. The Government should also, in the process of setting up the profits control scheme with regard to the public utility companies, incorporate clauses which are in keeping with the principle of environmental protection. The operation of the public utility companies should be governed by such clauses to make sure that the principle of environmental protection is adhered to.

Lastly, I would like to talk about the issue of gender equality. A motion was passed by this Council last week urging the Government to make amendments to existing legislation in an expeditious manner so that both men and women will enjoy equal protection and equal rights in matters of succession. I hope that the Government will respond positively and expeditiously to the request of this Council in order that the womenfolk of the rural communities will be able to enjoy equal succession rights as early as possible. It was announced by officials at a meeting of the Legislative Council Subcommittee on Women's Affairs held yesterday that a government survey will be conducted

432 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

early next year to solicit public views regarding the Green Paper on Equal Opportunities for Women and Men. Mr President, the Government has seen fit to resort to fooling the public again by attempting to play down the strongly expressed views collected within the consultation period of the Green Paper on Equal Opportunities for Women and Men by diverting attention to the forthcoming survey results. The Government is actually trying to find an excuse for not following up on the request put forth by Members of this Council as well as other organizations concerned. I am greatly disappointed by the complete lack of any positive action on the part of the Government on the issue of promoting gender equality.

Mr President, I so make my submission in the hope that the Governor, who was formerly the Secretary of State for the Environment in the United Kingdom, will be able to try twice as hard in terms of resolving the issues which I have raised above.

MR FREDERICK FUNG (in Cantonese): Mr President, the theme of this year's policy address reads, in Chinese, "Building on the Foundation Today for a Better Tomorrow". It would appear that the Government is full of ambition and is able to take a long-term view. However, when we look more closely at the events which have happened recently around us, we will then discover that this theme is largely cosmetic. There are still a lot of issues which have yet to be resolved. The talks on political reform have not been going well. And livelihood issues are so numerous it is difficult to count how many there are. If we are to build on the foundation of today, then I am afraid that we will be in some really tough times and the future will be one of unrest and hardship.

The constitutional component

From the day the Governor gave his second policy address, the war of words has never ceased between China and Britain. Whereas China has been loud in its daily protestation against "the three violations" Britain has been vociferous in its righteous defence of its move to increase the element of democracy in Hong Kong's political development. I believe that over the years Hong Kong people have become rather accustomed to, if not altogether turned off by, this sort of rhetoric coming from the two sides. Hong Kong people are not allowed to participate in this war of words between China and Britain but they have to nevertheless bear the grave consequences of a breakdown of the Sino-British talks resulting from the two countries going their separate ways.

The Association for Democracy and People's Livelihood (ADPL) and myself have always been consistent in our position regarding the electoral arrangements for 1994-95. We are still hoping that the two countries will be able to come to an agreement on this issue so that elected representatives in the three-tiered boards and councils structure will be able to automatically serve beyond 1997, through completing a simple swearing-in procedure. Indeed, the through train political arrangement will not only be conducive to a smooth

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 433

political transfer but it will also contribute positively to the transition of a democratic political system in Hong Kong through 1997 to the extent that the post-1997 system can continue to develop on the basis of an existing and functioning system. I should like to make the point that the through train constitutes a very important factor in the democratic development process. If for some mysterious reason an elected representative is kicked off the through train, the implication of this is that the political system which allows this to happen is already extremely undemocratic. If we should give up the fight, then even though we may be able to have a democratic political structure which is more progressive than anything known in Hong Kong, there is a good chance that the democratic political structure will be dismantled after 1997 and be replaced by a system which is even more conservative than the one we have in place now.

In order to make sure that the elections, scheduled for 1994-95, for the boards and councils at all levels will be conducted smoothly and fairly, and in order to make sure particularly that new candidates will have enough time to think about whether or not to run and to adequately plan for it, it is imperative that both Britain and China should not continue to let their talks on electoral arrangements for 1994-95 drag on indefinitely. It is revealed in the policy address that the talks have to be concluded in a matter of weeks. ADPL agrees that a conclusion must be reached by the end of December. For otherwise it will be difficult for the preparatory work for the district board elections (that is, election preparation by the candidates and legislative groundwork for the elections) to go ahead and the district board elections for 1994 will not be conducted in a fair manner.

With regard to the proposal of the British side to revise the composition of the Election Committee, both ADPL and myself take the view that the arrangement for the Election Committee to be composed of representatives from four sectors, with the provision that these representatives should themselves be elected, is an option which one may consider as a way forward. However, generally speaking, the Governor has in his policy address only briefly talked about the direction in which the proposed revision will take. Details of the proposals will have to wait until a fuller account by the Governor and in this regard no further comment can be made on this issue in the meantime. In any case, ADPL would like the British side to insist on the substitution of corporate voting by individual voting in so far as the functional constituency elections are concerned. If corporate voting is not done away with, ADPL will consider going to court for a declaration that the conduct of functional constituency elections is in breach of the Bill of Rights.

Rebuilding Sino-Hong Kong relationship

The Governor has talked at length about the importance of co-operation with China. However, the policy address only mentions co-operation in the areas of exchange of technology and know-how. I believe, however, that if the personalities involved in the administration of Hong Kong affairs on both sides

434 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

are not able to establish close communication ties because of their dispute over constitutional reform then the development of a good working relationship is not going to be possible at all. Under the present circumstances, even though the two sides are able to co-operate, they will not be able to work in harmony over policy issues which are of a higher level and which are likely to have far reaching consequences. The fact is that there are a whole lot of issues waiting to be resolved, such as the airport, sewage treatment works, cross-border traffic and so on. It is stipulated in section 7 of the Memorandum of Understanding on the New Hong Kong Airport that the Director of the Hong Kong and Macau Affairs Office under the State Council of China should meet regularly with the Governor of Hong Kong. However, as a result of the constitutional dispute, such regular meetings have not been held for a long time. This certainly has an impact on co-operation between Hong Kong and China in various areas and at all levels. In this connection, we would like to see the resumption of regular meetings between the Governor of Hong Kong and the Director of the Hong Kong and Macau Affairs Office.

Economy and infrastructure

Not much coverage is devoted to the Government's economic policy in this year's policy address. However, there are many questions which are not answered. For example, I think Hong Kong people have a right to know how the Governor's Business Council is getting on with its work and what results it has achieved. I hope that the Government will make itself publicly accountable on this issue. The public should know what is going on in order to monitor the work of the Government. The reason is that there are many people who fear that the Business Council is made up of representatives of the various consortia who, instead of formulating a competition policy, which is apparently what they should be doing, are in fact more concerned with a secretive partitioning of economic interests behind closed doors.

I fully support the proposals advocated in the policy address to encourage competition and protect consumer rights. But there are still two shortcomings. First of all, the Government has not implemented any policy to combat monopoly. We are faced with a grave situation in which the major consortia are carving up spheres of dominance for themselves. We are hoping that the Government will be able to take measures to put an end to the situation as soon as possible in order to protect the rights of the consumer. For example, the Fair Trading Act of the United Kingdom may be introduced and a Takeovers and Mergers Commission and Fair Trading Commission set up in Hong Kong. Secondly, the policy address fails to mention what actions are forthcoming on the basis of the study reports recently completed by the Consumer Council. It fails to say how much clout the consumer has in terms of influencing policy decisions of the Government.

I am deeply disappointed by the fact that the Government has either not done anything about or deliberately chosen not to take notice of the widening gap between the rich and the poor. Hitherto, the Government has not sought to

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 435

use any effective taxation and economic policy to alleviate the unfair distribution of wealth in our community. It is up to the Government to come up with a positive response and give serious consideration to a policy which will alleviate the situation.

With regard to the dispute over the new airport, the Governor has failed to say explicitly what specific ways are being used to communicate with the Chinese in the talks with a view to finding an early agreement. Neither has he given the public any account of the differences between China and Britain under the existing financial arrangement as proposed. There has been no mention at all of what method has been used to collect public opinion on this issue. The policy address has nothing to say on the points which I raised just now. Hong Kong people are effectively kept in the dark. I cannot understand why the Government, which has seen fit to slightly disclose the British position to the public with regard to the constitutional reforms, cannot do the same with regard to the airport issue.

Meanwhile, both ADPL and myself are opposed to the Government's plan to build Container Terminal No. 9 at Kwai Tsing. I would consider that the accelerated development of northeast Lantau with the siting of the container terminal on the island is a far better option. The Government should not resort to using the issue of Container Terminal No. 9, a project which will make havoc of the traffic flow of Kwai Tsing, Western Kowloon and Western New Territories, as a bargaining chip in the Sino-British talks.

Failure to address the housing problem

The weakest part of the policy address relates to the housing issue. The Government has resorted to using figures to camouflage the worrying fact of the housing problem. Indeed, the predicament of the Government may be described as helpless. There are many serious aspects of the housing problem which the Government does not even have the heart to mention, for example, skyrocketing property prices, the general waiting list for public housing running to over 100 000 applicants, the plight of caged bedspace dwellers and so on.

It is mentioned in the policy address that the Lands Department will be provided with additional manpower so that the yearly production of private flats on the market will increase to 2 000. However, it is questionable whether that is an effective means to arrest the escalating trend of property prices. We would consider that the most effective way to combat spiralling property prices is to impose a short-term capital gains tax in order to directly dampen the desire to speculate in the property market. Meanwhile, the extent to which the Long Term Housing Strategy contributes to the price spiral is also an issue which should be examined. The reason is that a key shortcoming of the Long Term Housing Strategy is its failure to take the China factor into account. There are now many enterprises of China buying up property in Hong Kong. Such demand should be quantified and included in the Long Term Housing Strategy.

436 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

For otherwise, there is no way our projected housing production will be able to meet actual demand.

Meanwhile, given that under the present financial arrangement the Housing Authority has to turn over more than $2 billion to the Government on a yearly basis, its financial position, far from strong, is in fact rather tight. I would like to urge the Government to abolish this financial arrangement so that the Housing Authority will be exempt from remitting interest and dividend to the Government and will then be in a position to plough back into the development of public housing the profits which it has made from such development. Exemption will also bring about improvement in terms of quantity of public housing production as well as quality of life for public housing residents.

I received before this Council's sitting yesterday representations from a group of petitioners who were requesting that the Government formulate a "housing law" and a "tenants charter". I have read their submissions very carefully and I tend to think that the Government should rethink its policy along these lines. I would like to express my support for the direction mapped out in the petitioners' submissions on a "housing law" and "tenants charter" and I hope that eventually every Hong Kong family will be able to have a decent place to live in.

Social welfare

I would consider, looking at the section on social welfare of the policy address, that the Government has not been able to provide for either the old or the very young who cannot fend for themselves.

Although the Governor says in his policy address that he is concerned about the problem of the aged, it would seem that his concern is rather selective. It is up to the Government to come up with a policy for the aged and conduct a comprehensive and active review at regular intervals of the way in which its policy for the aged has been formulated and is being implemented. The policy address makes particular mention of the housing problem of the elderly. However, even if the problem has been solved in quantitative terms, it does not mean that the problem has been solved entirely. The present situation is that the right of our senior citizens to choose is being ignored in terms of allocation of public housing and they are under enormous strain in their new living environment. In this regard, efforts should be made in seeking a solution to the problem of the aged to ensure that the elderly are able to live in an area which is close to their next of kin or which they have been living in for a considerable period of time. Also, the Governor should not disregard the problem of elderly residents living in public housing estates because many of the old housing estates are not equipped with elevators and access can become a big problem for their elderly tenants. In some housing estates located in Sham Shui Po and Tai Hang Tung, there are some elderly residents who have never ventured outside their flats for a whole year because they happen to live on the top floor, that is, the

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 437

eighth floor. In this regard, it is up to the Government to do something about the lack of support facilities for the elderly residents living in old housing estates.

With regard to needy children, the Government is only willing to increase the public assistance for the child by $100. This is not only outright insulting; the money is not enough to meet the social expenses of needy children. I would suggest that both our old folks as well as youngsters need to have a proper social life. It is up to the Government to provide overall subsidy for recipients of public assistance taking part in activities organized by youth centres and elderly centres.

The setting up of a central provident fund

Lastly, on the issue of the central provident fund, I would consider that all Hong Kong people should be able to benefit from it and the Government should have a legislative, management and contributory role to play. The ADPL would like to see the benefits of the central provident fund going to every member of the community because we all should have the right to retirement protection and housewives, in particular, are making a great contribution to society because of the supporting role they play in the home. With regard to the people who through misfortune have lost their ability to work, I think society has the responsibility to alleviate their misfortune. In this connection, it is up to the Government, in upholding the principle of public justice, to make sure that the wealth of our society should be more fairly distributed. In practical terms, the Government should contribute on behalf of workers with low income and people out of work. It should also legislate to ensure that the employers also contribute towards the pension of their staff. In this way the Government will make sure that every retired person is able to draw a pension and live a decent life on his or her own with dignity. I am hoping that the Government will not further delay the project, for otherwise I think public resentment will become all the stronger. If I may sum up my comments on the policy address, I would consider that it has evaded policies which are controversial but which will nevertheless have far reaching consequences. The questions of sewage and medical charging are examples of such policy issues. Meanwhile, the proposed improvements to people's livelihood in the policy address are rather too piecemeal. There has been no major breakthrough in terms of major policy direction. In this regard, I would consider that the policy address is at best just a barely satisfactory report.

Mr President, I so submit.

MR TIMOTHY HA (in Cantonese): Mr President, one of the themes of this year's policy address is quality education. The Government will further implement its policy to improve the standard of teaching and step up its teacher recruitment plan. This is a policy direction with which I can agree. In order to achieve the goal of quality education, there is a real need for us to have a corps

438 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

of dedicated teachers. The ideal teacher is one who is not only eminently qualified but also one who is fully dedicated to the teaching profession. He or she must have both commitment and enthusiasm.

Hong Kong has been plagued in recent years by a serious brain drain in the teaching profession. The situation is particularly acute in the secondary schools. According to the findings of a survey on the numbers leaving the profession and their reasons for doing so, there were 1 106 teachers resigning between 1991 and 1992 in the 140 schools covered. The wastage rate was as high as 8%. Teachers were resigning because they wished to emigrate, switch to a different field, switch to a different school, further their studies or retire from work altogether. 17% of the teachers who resigned did so to switch to a different field. While the reasons for making the move may be idiosyncratic, it is believed that the poor image of teachers, inadequate fringe benefits, and lack of job satisfaction are some of the contributing factors.

The Government has revealed again this year that it will provide funding for the recruitment of another 800 teachers. However, it has not done anything more positive to stop the brain drain of teachers. The Government has acted like the manager of a football club who, all too conscious of the need to arrest its decline, is only concerned with stepping up recruitment of new players in an effort to reform its fighting team. It has done little to improve the morale of incumbent players. The problem is really that the new players have scarcely the time to settle in and develop a sense of belonging to the club whilst old players are already voting with their feet. I would doubt very much whether this lopsided approach is a good way to put together a really strong team of footballers, or teachers for that matter.

In this regard, it is not enough to step up the recruitment of teachers; it is also important to do something about retaining existing teachers and to develop a sense of commitment in new recruits of the profession. Something must be done to change the attitude of new recruits towards the teaching career as their second, third, or fourth option, or even a mere stepping stone. How are we going to achieve the goal of retaining existing teachers on the one hand and making new recruits feel committed to teaching and actually like taking it up as as their lifelong career, on the other hand? I have the following suggestions:

(1) Improvement of morale

There are many people in the community, and parents particularly, who like to attribute the youth problem and slipping standards and behavioural problems of students to the schools. Teachers are not only faced with enormous work pressure. They also have to deal with the pressure coming from the community and parents. The sad reality today is that people nowadays do not have the same respect for the teaching profession as in the old days. It is not surprising therefore that many teachers are now complaining about their enormous teaching load and the lack of job satisfaction. Indeed, it is in such a social climate that there are many teachers who have thought about resigning to

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 439

switch to a new field. If we want to keep our teachers, we should first of all improve their morale. The community, and parents in particular, should give our teachers the understanding and support which they deserve. We have to make sure that the teaching profession remains to be a profession which is highly regarded by the community as a whole. This will go a long way towards helping existing teachers to become more enthusiastic about their job and in turn, more young people will be inspired to join the ranks of teachers.

(2) Improvement of fringe benefits

It is the responsibility of the employer to keep existing talents and recruit people who have good qualifications and can perform efficiently. In this connection, in addition to the community and parental support, it is also up to the Government as the employer behind the scenes as it were, to do something about improving the morale of teachers. It is mentioned in this year's policy address that the Governor is determined to play the role of a good employer. Although the Governor is referring here to the role of the Government vis-a-vis civil servants, I am nevertheless very appreciative of the will of the Government. As an employer, behind the scenes or not, the Government should not discriminate one group of employees against another. The fact is that in the aided schools which make up the vast majority of schools in Hong Kong, teachers are not receiving the same pay and fringe benefits as their counterparts teaching in government schools. In their first 10 years of service, they are only entitled to a contribution of 5% by their employers towards their provident fund, as opposed to the considerably greater 15% contribution by employers of teachers of tertiary institutions and the Vocational Training Council. They are not entitled to any medical benefits, any educational allowance for their children, or any housing benefits for that matter. If the Government is serious about becoming a good employer, it should positively rectify this unfair phenomenon. The fringe benefits of teachers should be reviewed in keeping with the principle of "equal pay for equal work". I think we should do well to think about why of all employees in the aided sector, teachers are singled out for humiliation. In terms of improving the fringe benefits for teachers, I have the following suggestions.

Firstly, insofar as the provident fund is concerned, the Government should take steps to narrow the gap gradually, in terms of employer contribution, between tertiary institutions/technical institutes and primary/secondary schools. The 5% employer contribution to provident fund in the first five years of service may, for example, be increased to 10% and the rate of contribution can thereafter be increased to 15%, beyond that five-year period.

Secondly, with regard to the housing benefits, I would consider that while the spirit of the introduction of the scheme to subsidize the housing mortgage is extremely good, its real benefits to teachers who want to buy their own homes are quite limited. They are hardly worth one quarter of the housing benefits being enjoyed by teachers in the above subsidized educational institutions. I

440 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

would consider that the provision of housing benefits may as well be administered along the lines of the Home Purchase Scheme designed for middle and low income civil servants. Subsidy is provided under that Scheme for the down payment as well as monthly repayment of the mortgage loan. Alternatively, the home purchase loan subsidy scheme provided by the Hospital Authority may also be considered. That scheme has the features of increased home loan, increased subsidy for the payment of interest, and an extended repayment period.

Thirdly, with regard to medical benefits, I think we can follow the practice of tertiary institutions and technical institutes in the administration of their medical scheme whereby the employer buys group medical insurance of all of their staff.

MR CHIM PUI-CHUNG (in Cantonese): Mr President, we have 16 Members and therefore cannot meet the quorum required under Standing Orders. Even if we include the President, there are only 17 Members here.

PRESIDENT: You have to stop while we get the quorum, Mr HA.

PRESIDENT: You can continue, Mr HA.

MR TIMOTHY HA (in Cantonese): Mr President, as we have spent some time just now, may I get back the few minutes.

PRESIDENT: Yes.

MR TIMOTHY HA (in Cantonese): I am very glad to read about the proposal in the policy address that a Language Fund will be set up to improve the standards of English and Chinese of students. However, the Government has yet to make known its specific plan regarding how the $300 million is going to be effectively spent. It is mentioned in the policy address that the first thing which needs to be done is the improvement of the competence of language teachers themselves. I agree entirely with this approach because the ability of teachers will have direct bearing on the quality and learning of students. The question is how are we going to improve the competence of our language teachers.

(1) Teachers of English Language

With regard to the issue of improving the English standard of teachers of English, the existing arrangement by the Education Department of refresher courses and relevant English language teaching seminars for in-service teachers

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 441

will undoubtedly go some way towards helping some teachers of English in terms of improving the quality of their teaching. However, the fact is that there are nearly 80% of our teachers of English in secondary schools whose majors were not English. In this regard, the improvement of English language teaching cannot be accomplished in a simplistic way. It is a task which can be fraught with difficulties. The Government should not confine its efforts to strengthening and enlarging its training programmes to enable more in-service teachers to attend courses. It should also come up with ways to entice more graduates with English majors to join the teaching profession. For example, more attractive conditions of service may be offered as an incentive. Insofar as the recruitment of teachers of English is concerned, the short and middle-term solution may well be the recruitment of more expatriate teachers in order to achieve the immediate goal without expending too much effort. According to the regulations of subsidy laid down by the Education Department, each secondary school is able to hire one to two expatriate teachers. If the regulations can be relaxed so that more expatriate teachers can be hired, then the quality of English teachers will be further improved. Whether the Language Fund may be used to implement such a proposal is a matter for the Government to decide.

(2) Teachers of Putonghua

With regard to the improvement of Chinese language standard of students, there are some educators who advocate the prescription of Putonghua as a compulsory subject in primary and secondary school curriculum. I would consider that there are still many problems with such a move. If Putonghua is prescribed as a compulsory subject in primary and secondary school curriculum, then it will certainly result in a heavier curriculum which will add to the burden of students. The present policy of the Education Department is that schools have the discretion to teach Putonghua as a regular but optional subject or an extra curricular subject. This arrangement has the advantage over the prescription of Putonghua as a compulsory subject in that it has greater flexibility for everybody. As a matter of fact, with Hong Kong developing ever closer ties with China, there is a greater demand for greater proficiency in Putonghua. It is quite natural under these circumstances that the schools will attach greater importance to the teaching of Putonghua in response to societal need. The Government should allow schools to have the freedom of choice in terms of deciding what is the best way to promote Putonghua, each according to their own unique circumstances. The advantage of giving the choice to schools is that pressure will be taken off the learning of Putonghua, which will no longer be a burden to the students. This is the reason why much as I am in favour of promoting Putonghua, I have reservation regarding the prescription of Putonghua as a compulsory subject.

Of the six major proposals regarding education in the policy address, only the setting up of the Language Fund and the procurement of more computers for schools are new items. The rest are not new proposals. I would welcome the proposed early implementation of the Fee Remission Scheme for

442 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

kindergarten students. However, I also feel that the limited commitment of the Government will not be quite enough to arrest the decline in quality, which has already been quite pervasive. I am even more disappointed that even now the Government is delaying the implementation of whole day schooling, and that even now no solution is in sight with regard to problem of floating class in secondary schools.

Hong Kong has been able to achieve significant economic growth. The Governor says in his policy address that, "this year, we are set to overtake Australia and Britain in terms of GDP per head". It goes without saying that our economic growth is encouraging news. However, our economic growth has not been appropriately reflected in government expenditure on education. According to the findings of a World Bank survey, for the period between 1960 and 1989, the government education expenditure to GDP ratio was 2% to 2.7% in Hong Kong, 5.2% in Singapore, and 4.9% in South Korea. Hong Kong is an international city whose economic development is heavily dependent on its manpower resources because it has no natural resources to speak of. The Government should identify education as an area which calls for long-term investment, it should significantly increase spending on education. The year 1997 should not be regarded as a barrier at which the Government should drag its feet. The Government should not sacrifice long-term education planning because of the 1997 factor. The senior officials responsible for education policy, when formulating a comprehensive and long-term education plan, should consult widely and give the matter careful consideration. It is indeed sad and deplorable that the two former Secretaries for Education were not able to stay in post for a decent length of time. Incidentally, both of them are working in the business sector after resigning their posts.

I am hoping that the Government will, for the sake of the long-term stability and prosperity of Hong Kong, make up its mind to draw up a long-term education plan. In this regard, if I am to evaluate the education content of this year's policy address, the most generous grade I can give is one of bare pass.

Mr President, these are remarks.

MR MICHAEL HO (in Cantonese): Mr President, as the representative of the medical and health functional constituency and the spokesman for the United Democrats on labour policy issues, I shall devote my speech to two subject areas, namely, the medical and health and the labour areas.

In so far as the medical and health area is concerned, the Governor has talked at length in his policy address about ways in which the various services can be improved. The series of service items enumerated, including the refurbishing of our hospitals, the shortening of waiting time, the expansion of renal dialysis programmes as well as service for the chronically ill and a hospice service for the terminally ill, is certainly good news to the extent that the various services will be improved to significant degrees. It is unfortunate,

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 443 however, that no policy direction is given following the enumeration of the items.

One would expect a policy address to elaborate clearly government policies so that the public will get to know the ways in which the Government would like to plan for the expansion of its various services and what their objectives might be. It is only when guidelines are given and the policy objectives known that the various executive departments will be able to plan for long-term development in adherence to those guidelines, until the objectives are achieved. As there are no clear policy guidelines to follow, it is likely that the various improvements will not be sustained when the exercise is over.

For example, what will follow when the $32 million earmarked for the improvement of services for the chronically ill is eventually exhausted? To what extent are the additional provision of 135 renal dialysis places, and the provision of services for 3 900 chronically ill patients, able to provide a solution to the problems of all of our chronically ill patients? While there is no denying that the provision of additional funds is surely a positive step forward, I nevertheless tend to think that, like me, our chronically ill patients would rather appreciate a definition by the Government as to who qualifies as a chronically ill patient. It is up to the Government to clearly explain to the public what its policies are, who will be assisted under its policies, in what manner the assistance will be provided, and not least, how the expansion of these services will be comprehensively planned and implemented in different stages.

With regard to the hospice service, it is stated in the policy address that the Government will next year provide this service to another 500 patients. But what is the overall demand of these patients? I wonder if Members still recall that in the consultative document Towards Better Health a reference was made to the Oregon model in the United States. It is a model which provides hospice service for each and every terminally ill patient. Are we prepared to go for this goal of providing hospice for each and every one of our terminally ill patients? If that is our goal, what would be the overall demand? I am asking this question because we have to see the policy clearly spelt out, because it is only when we have such a policy can we talk about effective planning, and because it is only when we have effective planning can we talk about providing services for needy members of the public. The present position in which we find ourselves is that the proposed improvement measures have not been the product of effective overall planning and there is no policy to back them up. It is as if we are quite mindlessly buying a few new services because we suddenly realize that we have the money in our pocket and can therefore afford to do so.

With regard to the question of nurses, I have to say that I am pleased that the Governor has decided to provide funding for increased nursing degree courses and professional nursing care development. This is at least a reflection on the increased concern of the Government for the nursing profession. However, that decision by the Governor is also flawed to the extent that it is not guided by any policy either. The Government has decided to increase

444 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

160 nursing degree places but has said nothing about the existence of a policy on nursing education. It is now time for nurses to be professionally trained in degree level courses. In this connection, it is for the Government to make explicit its policy on this issue. What we would expect to see is the Government clearly setting out its policy and strategies with regard to finding a solution to the problem. We would expect the Government to tell us where the problems lie and what should be done to alleviate the shortage of nurses. We do not expect the Government to present us with a piecemeal solution. In this regard, I would like to call upon the Governor to ask the relevant departments to conduct a comprehensive review of the problems which exist in the nursing sector in the year ahead. It is hoped that in his next policy address the Governor will be able to inform us of a new policy which would put a stop to the current brain drain and produce better recruitment results. Such improvement will enable the Eastern Hospital and Tuen Mun Hospital to become fully operational.

With regard to the issue of medical funding, the level of funding received by the Hospital Authority is basically calculated on the basis of substantive staff establishments of the various hospital which it took over at its inception in 1991. The Hospital Authority is only able, on the basis of that funding level, to fill the pre-existing vacancies of those personnel of whom it is short. Since many new services will become available to the public, I want to tell the Government that the additional strain will have a great impact on the morale of medical personnel. It is up to the Government to make speedy improvement to the situation. The reason is that the morale of our medical personnel cannot be maintained indefinitely in the face of increased workload, even for the sake of reform and despite their goodwill to see reform succeed.

On the issue of fees and charges for medical treatment, the Government has said that we are faced with the twin problems of an ageing population and increasing medical cost. The Government has quite rightly made the point that Hong Kong has to spend more to deal with these two problems. I think we have no argument with this. Indeed, it is precisely because we are going to need more money that I am obliged to remind the Government that there are more services which will require greater government commitment, and there is all the more reason why the Government should not seek to recover the cost through charging the user. The escalating costs will translate into an increasing burden for the user.

Lastly, I would like to urge the Government again that it should conduct a comprehensive review of its existing policy on medical and health services, that it should give guidelines regarding the development of services, and that it should refrain from devising improvement measures on its whims.

The policy address can be said to have nothing to offer in the area of labour. Labour issues are dealt with in a few paragraphs in this year's policy address which runs to over 50 pages. Of course, it must be conceded that quantity does not necessarily mean quality. It is nevertheless evident that even

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 445

in these few paragraphs proposals with regard to finding a solution to the problems confronting our workers are conspicuous by their absence.

The section on labour in the policy address mainly focuses on industrial safety and the retraining programme. The issue of industrial safety will be dealt with at length by Mr LAU Chin-shek.

With regard to the retraining programme, I would agree strongly with the Government that the number of beneficiaries under the programme should be enlarged to include elderly workers and workers injured in industrial accidents. However, the greatest problem with the retraining programme as it stands is that there is little motivation for workers to participate. Given the fact that the Government maintains its policy to import foreign workers and that this will affect the chances of employment of retrained workers, there is no way workers' motivation will be enhanced. As the Government commits huge resources to the retraining programme we should at the same time think about a phased reduction of the number of imported foreign workers and the introduction of stricter monitoring of the labour importation scheme per se. It is up to us to protect the employment opportunities of our retrained workers in order to make the retraining programme effective and in this way we can find a once-and-for-all solution to the unbalanced state of our labour market as a result of economic restructuring.

It goes without saying that the delaying tactics over the issue of retirement protection evident in the policy address has all the more confirmed the public scepticism that the Government is not paying attention to the protection of workers' rights. I very much regret the Governor's attempt to mislead the public. He has seen fit to dismiss the efforts made by the various labour organizations over the last 20 years by a simple assertion that the public is still divided on the issue.

Admittedly, the Governor has not ruled out the possibility of setting up a central provident fund altogether and, indeed, he said that a formal announcement will be made towards the end of the year on the issue. However, it would appear from recent newspaper reports that government officials and the Governor himself have thrown cold water on the central provident fund. They are saying that the central provident fund may not necessarily have the support of the public and that the pensions will amount to so little anyway that they will not be enough to sustain the retirees. This is a reflection that the Government has all along never given any serious consideration to the feasibility of a central provident fund. Whereas the point was made in the consultative document last year that the management of a vast central provident fund would give rise to problems, the argument has switched this year to the meagreness of payable pensions, for the same purpose of negating the effectiveness of a central provident fund. It must be noted that the central provident fund is only a basic principle of protection for retirees. There are different possible ways to deal with problems relating to administration, rate of contribution and role of the Government. A serious and sincere attitude to take

446 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

on this issue is for the Government to first of all endorse the positive role of the central provident fund and then study the problems involved closely with a view to seeking solutions to them. For example, the Government should study the possibility of contributing on behalf of low income earners, the ways in which retirement protection can be integrated with social security, and not least, the ways in which the meagre pension payouts of contributing low income earners can be supplemented. The Government should not shirk its responsibility by coming up with all sorts of excuses, whilst paying no heed at all to public opinion. This is not the sort of attitude one would expect of a responsible government. The principle of openness, fairness and acceptability to the people of Hong Kong should apply as much to the talks on political reform as to social policies. Why does the Governor not show the same kind of "courage" in championing good social policy as he has shown in backtracking on his constitutional reform proposal. I am hoping that the Government will be able to realistically do a few good things for the people of Hong Kong.

I so submit.

DR HUANG CHEN-YA (in Cantonese): Mr President, the Governor said in his policy address that in the formulation of his policy objectives economic considerations had the pride of place. It is imperative that we should be able to maintain a sound and healthy economy.

It is regrettable that the Governor has failed to present us with any direction or strategy along which our economy will develop from a macroscopic point of view. It would seem that he has become rather complacent with one or two successes which we have been able to achieve fortunately over the past year.

Since we are living in an intensely competitive world, we should strive to make progress at all times, for failure to do so will mean that we are lagging behind. It is in many ways like sailing against the tide — we have to move forward by breaking the waves. We cannot afford to lose our head as we rejoice in our economic success; we cannot afford not to move on to achieve even more and greater successes; We should not act like the proverbial lazy hunter who, instead of going hunting, decided to bide his chance waiting under the tree for the hare to emerge from its hideout. We should not think that we will continue to solve new problems with old methods. It is imperative that we should continue to work hard to overtake our competitors and that we should continue to go for economic growth so that we will be able to take on new challenges with new strategies.

We are now faced with a new economic environment. Internally, we are going through the process of economic restructuring. Our economy is developing from one which is oriented towards manufacturing into one which is oriented towards services. Externally, regional economic blocs are being formed one after another in various parts of the world. Protectionism is being

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 447

revived and attempts made to erect obstacles again in the way of free trade. This new state of affairs means that the way ahead for Hong Kong is full of crises. Meanwhile, the trade pattern between Hong Kong and the neighbouring economies is also in the process of a major transformation. There has been increasing regional trade, which is no longer limited to merchandise, but which is also evident in the service sector. Take tourism as an example. The percentage increase of visitors from Asia to Hong Kong is far greater than that of visitors from Europe and the United States. As a result of the economic reform of China, the relationship between Hong Kong and China has become closer than ever. While this certainly has brought along many more opportunities to Hong Kong, it has also meant that Hong Kong will become all the more subject to the impact of economic fluctuations in China.

All of these widely observed changes which will bring about far reaching consequences point to the same reality. The Hong Kong Government should review the economic development strategy of Hong Kong over the middle and long term in order to make sure that we will be able to meet the new challenges in the area of trade which lie ahead. Furthermore, we should seek to identify the important role which Hong Kong is going to play in the overall economic development of China and to study the ways in which Hong Kong will be able to complement China in the process. The aim we should go for is one of making China rich and powerful at the same time as ensuring that Hong Kong will become even more successful. The Planning Department has recently published a review of the territorial development strategy of Hong Kong. We would consider that to be a very good effort made, though it is not quite enough. We believe that the Government should set up an Economic Development Commission with wide representation and charge it with the responsibility of formulating a forward-looking and comprehensive economic development policy which will take Hong Kong into the 21st century.

The United Democrats would like to take this opportunity to request the Government to plan its macroeconomic policy along the lines of promoting democracy, maintaining the rule of law, controlling inflation and enabling the people to prosper. With regard to the manufacturing sector, the Government should provide assistance in the development of new technology for the production of value added products while at the same time coping with the demands of environmental protection on industry. For the services sector, the Government should conduct as soon as possible a review of all sorts of problems which confront it and formulate strategies which will guide its development.

From a macroeconomic point of view, democracy, freedom, the rule of law, low inflation and prosperity for the common people are all of them factors which contribute to economic competitiveness. Democracy is the political condition for a market economy in which perfect competition and freedom of choice will prevail and in which good outcompetes bad. Democracy is the only way in which social conflicts can be reduced by peaceful means; it will reduce the damage of social upheaval to the economy. However, in terms of constitutional reform, the Governor has not only failed to deliver on his

448 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

promises and promote the development of democracy but actually made one big concession after another recently. Democracy is a reasonable demand of the people of Hong Kong. The people of Hong Kong compare very favourably with their counterparts in many democratic countries in terms of educational, cultural and economic achievement. Mr PATTEN should not seek to betray the legitimate rights of Hong Kong for the sake of protecting British interests. Neither should he sacrifice the long-term prosperity and stability of Hong Kong for the sake of maintaining short-lived peace. I can say categorically here that the people of Hong Kong are quite determined to strive for democracy. I demand that the Government should also strive for democracy for the people of Hong Kong with the same determination.

Hyper-inflation is another factor which adversely affects our economic competitiveness. Inflation increases the cost of production and eats into our savings. It has damaging effects on our economy as well as people's livelihood. Inflation in Hong Kong as a whole is mainly led by inflation initially in the services sector. The most effective ways to combat inflation in the services sector include the introduction of competition, the prevention of monopoly and the improvement of productivity. It is unfortunate that not much headway has been made in the introduction of competition although we have been talking about it for a year now. We believe that the Government should come up with appropriate measures in this regard as expeditiously as possible in order to put a stop to the monopoly situation. In the meantime, the skyrocketing property prices have given further impetus to inflation and it has become very difficult indeed for people to buy their own homes. Admittedly, the upward spiral of property prices has been somewhat checked by the move of banking institutions to tighten credit. That could only be a short-term measure. The property sector is an important part of the economy of Hong Kong. Neither runaway price increases nor a depressed market are in our interests. It is up to the Government to introduce a capital gains tax and increase the supply of land as a matter of great urgency so that the property market can develop in a healthy way and the people of Hong Kong can actually fulfill their desire to live secure and productive lives.

In so far as public spending is concerned, the very fact that the Government is willing to pay more attention to livelihood issues is a progress in itself. As a matter of fact, the Government should put into practice the principle of enabling the common people to enjoy prosperity. Unfortunately, the Government only sees the importance of a low tax rate which it persists in maintaining for the benefit of the business sector. In terms of people's livelihood, the Government has continued to adhere to its policy of providing relief for the poor without appreciating the importance of enabling the common people to prosper.

The misconception of the Government and the fragmentation of its economic policy have already resulted in contradictions which have arisen in terms of public finance. I would like to give a few examples of the ridiculous situation. In order to tackle the problem of serious brain drain in recent years

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 449

and to cope with the needs of future economic development, there is surely a need for us to provide training for a larger and better educated workforce. While efforts are made to meet that need, obstacles are ironically put in the way of students as the Government has seen fit to drastically increase tertiary school fees. This will not only hamstring economic development but it will actually diminish the other vital function of education of enabling upward social mobility. In this regard, the gap between the rich and the poor will not be easily narrowed.

In so far as medical and health services are concerned, the Government is inclined to introduce the principle of getting the patient to pay more. In practical terms, Hong Kong is being made to follow the American model. This will lead to a rising number of impoverished patients. It is expected that the increase of resources for public health care will be accompanied by an increase in the number of poor people which will create increasing demands on social welfare services. The result of this is the reduction of overall cost effectiveness because of the increasing costs of administration and support services. In the absence of any overall plan to improve the mix of illnesses or diseases in Hong Kong, and in the absence of any transparent market mechanism to control costs, it is expected that the medical spending will continue to rise without any improvement to public health per se.

Although the Government's industrial policy has been discussed by this Council on a number of occasions and requests have been made by legislators for the Government to attach great importance to the problems faced by the manufacturing and service industries of Hong Kong in the process of economic restructuring, the Governor has nevertheless made no mention of any of these in his policy address.

The continued relocation of industrial processes to China has enabled Hong Kong manufacturers to keep their costs down. However, Hong Kong cannot afford to become too dependent on the cheap labour and land of Mainland China. The reality is that the price of land and labour in the Guangdong province has already risen. Indeed, with economic development, it will not be long before the Mainland will master the skills of producing goods requiring low technological input. In this regard, Hong Kong should develop value added products and explore the commercial value of new technologies. There are many things which the Government can do to help. For example, the setting up of a data bank will enable manufacturers to establish ties with the scientific talent of the Mainland. The setting up of a public laboratory as a role model factory will likewise reduce the cost of scientific research and the time required for product development.

Whilst environmental conditions are being imposed on imports by a lot of countries, the destruction of the environment by industrial development is not considered to be any more acceptable in Hong Kong. However, our manufacturing sector is still lacking in environmental protection data and not

450 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

making quite much headway in the development of technological support in this field. In fact, the following steps should be taken by the Government.

1. It should compile an index of pollution prevention equipment and set up an environmental protection data bank.

2. It should encourage environmentally friendly industrial development.

3. It should enable manufacturers to improve their industrial sophistication in order that they can overcome the environmental conditions by moving upmarket and staying competitive.

4. It should set up an Environmental Issues Working Group within the Departments of Trade and Industry. The Working Group should be charged with the task of providing support and engaging in international negotiations. Hong Kong should strive to achieve industrial competitiveness which is in keeping with the environmental concerns while at the same time fending off attempts by the trade protectionists to put obstacles in the way of free trade on the pretext of environmental protection.

The economic restructuring which has been going on over the past 10 years has resulted in the service industry taking a leading role in the economy of Hong Kong. However, the Government has so far failed to come up with a clearly defined policy regarding our service industry; there is no direction for development. We believe that the Government should urgently conduct a review of the problems faced by the service industry and provide the necessary support in terms of trained manpower and facility.

The setting up of a Monetary Authority by the Government which has strengthened the monitoring of the banking sector and the securities sector is a measure which deserves our support. However, there are many other improvements which have to be made. There are many new financial instruments whose introduction is forestalled because of the bank interest agreement. This in turn has discouraged the further development of the financial market and has encouraged the banks to stay competitive by sacrificing their potential efficiency. The Allied Group saga reveals the extent to which there has been inadequate statutory monitoring of the practice of self dealing. Meanwhile, the small shareholders are not able to protect their legitimate interests by shareholder derivative suite. We understand, looking at the unusual fluctuations on the stock market which has become very political on a number of occasions, that there is a need for more statutory control over insider dealing. Malpractices such as these will hurt the health and reputation of Hong Kong's financial market. The United Democrats request that the Government should take a more active role in dealing with these problems. Whilst it is certainly encouraging to see new heights being achieved on the stock market recently, we should also be reminded that capital coming in and out of

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 451

Hong Kong is just as likely to cause dramatic ups and downs on the stock market and foreign exchange rates. We should be fully prepared and have a contingency plan in place. However, the service sector is not only confined to the finance industry. Communication is assuming an ever more important role in world business. Hong Kong is capable of becoming a communication centre in Asia and playing a leading role in television, broadcasting, publishing and information exchange. However, the Government does not have a clearly defined policy, let alone any plan to complement this development. The service sector is becoming more and more important to the manufacturing sector too. Product value can be enhanced by design, packaging, promotion and transportation. Is Hong Kong quite capable of meeting the daily increasing demands of China exports in terms of availability of facility, manpower and quality of service? We would like to have an answer to this question.

While we have been able to make some progress, we should by no means become complacent. In so far as trade in services is concerned, we are lagging behind Singapore, and a long, long way behind Japan. We have to work extra hard if we want to become the centre of service industries in Asia. I hope the Government will always remember that the future of Hong Kong will only be ensured if we are prepared to work very hard indeed.

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

DR LAM KUI-CHUN (in Cantonese): Mr President, the part of the policy address on patient-centred health gives me the impression that the Government recognizes where the problem lies and is determined to solve it but is at a loss to find a planned approach to tackle it radically. First of all, I would like to probe how long it takes for an out-patient to wait before he is given treatment at a specialist clinic. Currently a patient has to wait for four months on average for first consultation. What the policy address envisages as "improvement" will mean only a shortening of waiting time from four to under three months. There is no proposal however as to what specific measure will be taken to effectively shorten the waiting time. It would seem that the Administration thinks that it can let itself off the hook by exerting pressure on the Hospital Authority. It would appear that, be it before or after improvements to the waiting time, medical treatment will be available to a patient only after his illness has progressed from the incipient to the advanced stage.

A positive proposal that I would like to make to the Administration to solve this question of an unduly long waiting time is that it should seriously consider the possibility of co-operation between the private and public sectors in the provision of medical services. This concept is based on a number of practical factors: There are patients who have no money to pay for medical services and as far as the Government is concerned it has money but cannot hire enough people to provide medical services; as far as the Hospital Authority is concerned the time for treating new cases has been eroded by the everincreasing number of old cases which are crowding out new ones; there are

452 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

private practitioners all over town many of whom have time to do a bit more towards the provision of medical services. Such being the case, the natural solution would be: (1) The Government should hire at a low remuneration private practitioners, who happen to be so interested, to help out at public hospitals; (2) old specialist cases which have turned the corner should be transferred to general clinics or to interested private clinics, to lessen the burden on the specialist clinics.

As a matter of fact, many private practitioners have in recent years participated in the low-remuneration medical service which is mainly to cater for staff of large organizations. This scheme has proved to be quite a success and welcomed by the companies, the staff and the private practitioners concerned. The transfer of patients from public hospitals to private clinics has been the subject of a number of pilot schemes in the field of obstetrics. The results have been satisfactory to the hospitals, doctors and the patients. The Hong Kong Medical Association thinks that the schemes are worth promoting. A year ago I already openly elaborated on this concept which is designed to realize a threefold objective at one single stroke. I also proposed then that it should be fully implemented. If the Government is really intent on resolving the problem of an unduly long waiting time, it should not paint itself into a corner but should consider in good earnest the possibility of co-operation between the public and private providers of medical service.

The policy address mentions further training for nurses to raise the quality of nursing services and the standing of the nurses. This is precisely what the Liberal Party has been advocating as part of its platform. In this connection, there are three substantive points in our conception which we would urge the Government to consider:

(1) With the rising demand on the quality of service provided by our medical and paramedical personnel, the role of nurses as a bridge between the doctors and the patients is becoming more and more important. To narrow the gap between the training for doctors and the training for nurses, the basic nursing training course must be elevated from the present part-time on-hospital study mode to a full blown tertiary course level.

(2) With medical technology ever progressing towards specialization, the specialist training for graduate nurses must be able to cope with high tech development. This kind of advanced training should be implemented on a permanent basis as on-job training and regular training in hospital.

(3) Some experienced nurses who are minded to further their training are facing a language difficulty. Advanced nursing courses are almost all taught in English. Nurses who are accustomed to being taught in Cantonese cannot really follow. This constitutes a barrier to their further training and promotion. The Government should

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 453

consider on the one hand the English language requirement in the propagation of technological information on the international front and on the other hand consider the reality of a lowering of standard in English language common among Hong Kong students. It should formulate as soon as possible a reasonable language strategy to dovetail with the planning for further nursing training courses in the English and Chinese streams.

Last year's policy address made a number of promises. In the progress report annexed to this year's printed policy address, I have found that the first of the seven elderly health care centres promised in last year's address will not come on stream on a trial basis until next year. This pace of progress patently falls far short of the progress demanded by the public. It is evident that public response to the recent consultation document Towards Better Health tends to show a demand for the implementation of a healthy way of life. The primary health care service to be provided by the seven health centres will precisely meet this particular demand. As a matter of fact an organization has successfully operated on a trial basis a primary health care clinic in Wan Chai. But the demand for its service is so huge that the waiting time for first consultation is as long as one year and two months. Those who participate in the programme of a healthy way of life have demonstrated that their health has been improving in such a way as to outstrip participants of comparable health programmes. Thus the setting up of such clinics by the Government brooks no further delay. If the Government encounters any difficulty in setting up such clinics I recommend that it should attempt to run such clinics jointly with voluntary agencies. I understand that some voluntary agencies are eager to operate such clinics to save people waiting till their necks stiffen.

In the area of social welfare, it is fitting and proper to place the predicaments of the elderly among the foremost items for consideration. But I fail to see how the Government can basically solve the question of food and lodgings for the elderly both before and after 1997.

The current position is that the government allowance of $1,550 given to old people in straitened circumstances, on top of the rent allowance, is all too insufficient to meet the living expenses of an elderly person in Hong Kong. And the Government has no way of radically solving the housing question confronting the elderly people.

There are many people in Hong Kong who are prepared to return to settle in their home country after retirement. The monthly living expenses per person in China's townships amounted in 1992 on average to RMB 152 yuans. What the Hong Kong Government should do is to remove the 180-day absence rule to enable these elderly people to qualify or continue to qualify for the grant of the meagre old age allowance after they have retired to their home country in China. Some political parties are of the view that this would mean forced exportation of old people to our neighbouring country. I would stress here that the Liberal Party respects old people's freedom of choice and is aware that most

454 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

of the retirees are living in their home country with their family and relatives. The Party believes that the Government should not deprive elderly people of their right to choose to return to their home country to spend their remaining years. Only this morning, a concern group approached OMLEGCO's Complaints Division with 1 500 signatures to demand the removal of the 180-day absence rule to enable old people to spend their remaining years peacefully in their home country. The reason why the Government is insisting on a qualifying restriction based on the number of days of absence from the territory is that Hong Kong people's money should be spent in Hong Kong. But the tens of thousands of dollars in pensions paid by the Hong Kong taxpayers to Hong Kong's retired expatriate civil servants from the United Kingdom keeps flowing to the United Kingdom to be enjoyed by retirees living there. Why is it that the meagre old age allowance cannot be enjoyed by old people who have retired to their home country in China? It can be seen from this that the current policy is based on double standards. Since the Government cannot solve the elderly people problem it must face up to reality and discuss the matter with authorities in southern China to find a solution. It should not hold on to these old people like a dog in the manger.

On constitutional reform proposals, my reaction to last year's policy address was that I deplored Governor PATTEN's ignorance of Hong Kong's reality and the mentality of the Chinese leadership: He knows too little of these. During the past year constitutional reform has stonewalled and the 14 rounds of Sino-British talks have made little progress. Governor PATTEN should have expected all this. In this year's policy address, he repeatedly seeks to lay the blame on the Chinese for failure in the talks. Reading between the lines, there is a strong hint at the barbarism, unreasonableness and bigotry of the Chinese leadership. Then at the end the Governor adds the clincher saying: "If we are not prepared to stand up for Hong Kong's way of life today, what chance of doing so tomorrow?" The Governor, in saying this, shows that deep down in his heart he has no confidence in post-1997 Hong Kong making improvements of any sort. He is still holding a confrontational attitude towards China.

I can recall that when Governor PATTEN first came to Hong Kong to take up office, he made a statement that he had no secret agenda. Looking at it again today, his claim sounded hollow and really like stating the opposite. Since 12 March this year, he has repeatedly done or said something calculated to provoke the Chinese whenever the Sino British talks seemed to be making some headway. Examples were the gazetting of his constitutional reform proposals, the emphasis that principles can never be given up, the insistence on the through train and the statement that no agreement is better than a bad agreement. What I regret most is his timing of such provocative actions or statements, which repeatedly made the relaxed atmosphere tense again and made it more difficult for an agreement to be reached. I would not want to speculate on what his secret agenda is. If indeed there is a secret agenda, I request Governor PATTEN to disclose it to let us see whether it is fair to China and acceptable to the people of Hong Kong.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 455

Now this time I still feel that Governor PATTEN does not understand the Hong Kong reality. The British want major changes. The Chinese want no change. The British have only slightly more than three years while the Chinese have until 2007 to make serious consideration as to change. The closer it gets to 1997 the greater the advantage will accrue to China. Governor PATTEN pins his hope on the Chinese not overturning a political system that has become established as a fait accompli. But he seems to have forgotten that the Chinese, after the Long March, did not hesitate to overthrow the governing regime. Now the SAR Preparatory Committee is gearing up its "two scenarios" preparations and the future political system is in the works. Now Governor PATTEN is hoping for a major change in five years and no change for the following 50 years. I do not know if I should call this mentality surrealist.

The British have insisted that the British-style through train is the wish of Hong Kong people. I believe that since time immemorial no country ever allowed another country to plant a few seeds in its political system which were calculated to overthrow the governing regime. This is a question of sovereignty and political survival. How can the British insist on having their own way?

Looking at this year's policy address as a whole, the part Governor PATTEN most warms to is constitutional reform but this is precisely the part for which there is no future. On livelihood matters, Governor PATTEN has demonstrated that he knows how to make use of Hong Kong's strong economic position to buy the hearts of the people. The policies this year that will benefit Hong Kong people are worth supporting. Unfortunately they are just a collection of quick-fix solutions. Long-term solutions are lacking. Governor PATTEN sets his sights no farther than June 1997. The time is short and the prospect of success is uncertain. If Governor PATTEN fails to get co-operation from the Chinese, will this short sightedness of his worsen year after year from now?

This year I still deplore Governor PATTEN's ignorance of Hong Kong. With these remarks, I support the motion.

THE PRESIDENT'S DEPUTY, MRS ELSIE TU, took the Chair.

DR CONRAD LAM (in Cantonese): Madam deputy, if the Governor feels that his policy address has been unfairly appraised, I share his feeling to a certain extent. I still remember that policy addresses in 1980s were always unanimously praised by the legislators. Though the laudation fell short of using the words such as "brilliant" or "excellent", it was already too much to those who were not used to flattery. Now, the times have changed. Praises which have originally been intended to heap on a policy address may immediately turn into accusations at the first sight of high-ranking Chinese officials' slight frowning. It is indeed difficult to administer a sunset government. Yet, the

456 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

general public are discerning. They would give their support to the Government as long as it really cares about them.

Unfortunately, in his policy address, the Governor failed to address some very important issues. The disparity between the rich and the poor is one.

In his policy address, the Governor expressed that we are set to overtake Australia and the United Kingdom in terms of GDP per head this year and we should draw level with Canada next year. He also said our real GDP growth is likely to be about 5.5% for the year. However how much of this impressive economic success can the general public share? In the past year, they worked hard and produced tens of thousands of public and private housing units. In doing so, they enabled Governor PATTEN to add an entry on his accomplishment list. They also enabled developers to make huge profits. Yet what did they get in return? Is the 30% industrial accident rate per year the answer?

Governor PATTEN flaunts the various achievements of Hong Kong. Yet he refuses to assist those who have paid a heavy price for working for the good of Hong Kong but have been denied a fair share of the success.

In 1991, the richest 20% of the people of Hong Kong took up 52.8% of the total household income in the territory. However the income of the poorest 50% of the population only accounted for 19.4% of the total household income. This situation is even worse than Taiwan in early 1960s. According to the Consumer Price Index (A) in terms of the Engel's ratio, the living standard of public assistance recipients at present has been reduced to the 1974-75 level. Alternatively, if we assess the seriousness of the problem of disparity between the rich and the poor in Hong Kong on the basis of a comparison between the assets of one-fifth each of the richest and the poorest people, the position is worse than countries like India, Indonesia, Bangladesh, Sri Lanka, Nepal and Pakistan.

A survey on the 1990 social indicators conducted by the Hong Kong Institute of Asia Pacific Studies of the Chinese University of Hong Kong revealed that as high as 65.7% of the respondents considered that unequal distribution of wealth existed in Hong Kong. A recent study by an academic of the Chinese University of Hong Kong pointed out that the impression that "Hong Kong is full of opportunities" was what members of the public subjectively felt rather than an objective fact existing in the society. The irony of the situation is that, according to the finding, the social status of one generation obviously can be passed on to the next under the education system of Hong Kong. It therefore shows that education is not a social ladder as effective as it has been generally perceived.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 457

On the causes of the disparity, I agree to the analysis of a professor, namely: (1) the average wage increase rate far lower than the average growth rate in labour productivity; (2) the large-scale relocation of factories and plants across the border; (3) the continued low level of profits tax; (4) the surge of property prices.

However, as far as the policy address is concerned, obviously the Governor has no intention to improve the rights of the working class in terms of collective bargaining, minimum wage and central provident fund. He also has no intention to reform the taxation system. As for efforts to curb property speculation, what we have got so far is no more than posturing. No real actions have been taken. On the other hand, the Administration abuses the policy of "cost recovery" in an attempt to make the general public pay for medical services, sewage treatment and so on thereby burdening the public unnecessarily.

As for political reform, to the people of Hong Kong who are used to "kow-tow politics", the package proposed by the Governor last year was indeed refreshing. Encouraged by Mr PATTEN's proposals, some hotheads who have a deep love for democracy had seen a ray of hope and might have wrongly placed the hope for more democracy and freedom on him. As such, no matter whether or not he underestimated the strong reaction on the part of the Chinese Government, at this stage, he can never give way easily as their support has obliged him to hold fast. Any concession or complete backtracking on the part of the Governor would certainly cause many of his supporters to feel they are once again betrayed. And these people would become more cynical and they would keep their distance from politics. They would also feel helpless in their pursuit for their democratic ideal. Such consequences are sufficient to further weaken the impetus behind the development of democracy in Hong Kong LU Xun once said, "There is no worse anguish in life than one finds no way out when one wakes up from one's dream. Those in the dreams are fortunate, but when we know that their dreams cannot come true, the most important thing is not to wake them up." That I quote this is of course not to encourage everybody here to live in dreams. What I wish to say is that a reformer, once he introduces his reforms, must be adamant and persistent in promoting them till the end. He must at least not become alienated from the people before the people alienate him.

On the issue of medical services, one wonders whether the people of Hong Kong, who have already sustained considerable injuries in the process of seeking personal wealth and pursuing freedom and democracy, can tend their wounds and convalesce at ease under the threat of "medical charges to be pegged to cost"?

The United Democrats of Hong Kong conducted an opinion poll on the Governor's policy address. One respondent said that the public clinic which she often attended tried to improve the quality of medical services by greatly reducing the number of patients treated by the doctors each day. As a result,

458 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

she sometimes failed to get a token even she queued up at about six in the morning. She asked me to put this to the Governor: whether this is what he referred to as "patient-centred health" in his policy address? This real case served as a strong accusation about, and made a mockery of, what the Administration claimed — that "no one should be denied adequate medical treatment through lack of means" and the so-called "waiver" and "safety net". When people do not even have the chance to consult a doctor, we cannot expect any improvement on services, can we? Intrinsically there is nothing new in the policy address. It only repeats the main points of the future plans of the Hospital Authority and the Department of Health. But strange enough, the Governor made no mention of the significant proposal contained in the consultation document Towards Better Health on the change of the charging policy of hospital services from one which only charges for the cost of catering to one in which charges are to be pegged to cost. The main reason for the Governor's deliberate omission is, perhaps, that he does not wish to have self-contradictory statements in his policy address. As a member of the public pointed out, "The Government has claimed that it would help the patients but then the patients are made to pay more. Those who go to public hospitals do so because they cannot afford to go otherwise. If they do have the necessary means, they do not need help." The Governor is always emphasizing that principle is of paramount importance when he does things and what is done must be open, fair and acceptable to the people. If the decision to be made following the consultation paper Towards Better Health goes against the above principle, the Governor's reputation would suffer heavily. As the head of the Civil Service, he should appreciate people's difficulties and spare no effort in formulating credible policies. Regrettably, in policy formulation, the Administration's interests always take precedence over that of the people. It was mentioned by a Councillor yesterday that the composition of the Legislative Council has a great effect on the future of Hong Kong. I share his view completely. Last week, the Liberal Party supported the Administration's proposal to charge patients. The Liberal Party strongly advocated "medical charges to be pegged to cost", "itemized charging" and "patients should pay more". This has reinforced my belief that only a legislature with all its members returned from direct elections can truly represent the people and safeguard their rights. As early as 1980s, I had urged the Administration not to play with public opinion at will especially over vital issues affecting the future of six million people. The Administration has to be aware of and respect the wishes of the people of Hong Kong. The people of Hong Kong are already impatient with the slow progress of the Sino British talks on the political development of Hong Kong and annoyed at their passing the buck to each other. Here, I must urge the Administration to hold a referendum if and when an agreement cannot be reached between the two sides. It must not evade its responsibility on the pretext of technical problems. The people of Hong Kong are entitled to determine their own future.

Recently, some problems in the medical service system have come to the surface which warrant the attention of the Administration. These are: (1) a 30% increase in the charges of some private hospitals in a year; (2) the trend

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 459

that the Hospital Authority may have excessive power. The chairmanship of hospital governing committees of nearly all former major government hospitals has been taken up by members of the Executive Committee of the Hospital Authority. Its power has been extended from the centre to the districts. And it has brought everything under its jurisdiction. On the other hand, it refuses to make public its meetings and the lack of transparency on that front is even worse than the Housing Authority which is notorious for its bureaucracy. Of late, the Hospital Authority goes as far as to propose that patients can purchase, through agents, and on contract terms, services from public hospitals. In its reply, the Administration, to allay the public's worry, must clarify in clear terms whether or not it is its intention to sell public medical services.

Lastly, I appeal to the Administration for taking all necessary measures to control medical costs.

PRESIDENT'S DEPUTY: The President has given permission for Mr Fred LI to speak next. Mr Fred LI.

MR FRED LI (in Cantonese): Madam deputy, Meeting Point and I are disappointed with the Governor's second policy address. There is no substantive explanation on constitutional development and the electoral arrangements. Nor is there any praiseworthy measure or breakthrough on matters relating to people's livelihood. My speech will be in four parts. As regards the other two Members from Meeting Point, Mr WONG Wai-yin will speak on security, the traffic situation, welfare for elderly people and housing matters, and Mr TIK Chi-yuen will speak on education, medical service and retirement protection. The first part of my speech will be on the reform of the political system.

A. Political system

The current discussion of the constitutional development of Hong Kong is centred on the electoral arrangements for the 1994-95 elections. These electoral arrangements are part of the overall development of our political system, and democracy and convergence must be given equal weight throughout the development process. But the most important thing is to have convergence on the basis of democracy and public consensus. Therefore, the electoral arrangements must conform with the following principles:

(1) To broaden as much as possible the electoral base for the Legislative Council Elections (including the geographically based election, the functional constituency election and the election of the Election Committee), such that more people can vote in the elections.

(2) All voters should have equal voting rights.

460 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 (3) The form of election should be fair and open.

(4) The mode of election should be simple and practical.

The policy address has revealed that during the Sino-British talks the British side amended the package of political reforms proposed last year. In particular, the size of the electorate for the nine new functional constituencies has been reduced by two-thirds. Such an amendment has not only failed to address the original package's shortcoming of not providing for an extensive electoral base, it is even "retrogressive". In these circumstances doubt naturally arises that the so-called three principles of "fairness, openness and acceptability to the people of Hong Kong" are only tactics the content of which can be changed any time to facilitate manoeuvring during the negotiation process.

The 1995 elections can be regarded as a problem of the transition period which involves the political system of Hong Kong under the British rule. It also concerns the transition of the political system in 1997 and the convergence with the Basic Law. Therefore, Meeting Point is supportive of sincere negotiation between the Chinese and British Governments, but is opposed to any secret deal between the two sides and the disregard of the views of the Hong Kong people, because to 1995 elections will have a very important bearing on the democratization of Hong Kong.

As regards the deadline for the talks, we should consider it in terms of a "technical countdown". In fact, the electoral arrangements for the 1994-95 elections must be put through the legislative process, which will require a definite amount of time. Therefore, the talks cannot continue indefinitely. That will only create long-term political uncertainty.

B. The competition policy

In respect of the formulation of a competition policy and measures for the protection of consumers' interests as described in the policy address, we have the following views:

(1) Although the policy address has mentioned that the Administration intends to formulate a competition policy, from what we can observe, the Administration does not have a sense of direction or a specific concept about such a policy.

(2) It has also been mentioned that last year the Consumer Council has conducted market fair trading studies on the individual industries, the result of which will become the basis for the formulation of a competition policy, and the relevant departments or policy branches will propose a policy six months after the completion of the reports on individual industries. However, the Secretary for Trade and Industry has told Members of this Council that due to the divided views of this Council on the introduction of a Fair Trading

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 461

Ordinance, the Administration will not decide on this matter in the near future. Therefore, I wonder how the Administration can fairly formulate substantive measures to bring about a competition policy for individual industries before objective criteria are in place as to what fair trading and market monopoly are and what amounts to a detriment to consumers' interests.

(3) There is a suspicion of conflict of interests for the Business Council, the members of which are mainly from large corporations, to study and formulate a competition policy.

(4) The implementation of the policy requires an effective enforcement agency. The policy address is silent on this point. In the absence of a substantive policy and an enforcement agency responsible for co-ordinating the relevant duties, the effectiveness of the measures encouraging competition will be greatly undermined.

(5) Natural monopoly may arise in some of the public utilities which require large investment and a period of time before there is profit return. In these circumstances, appropriate monitoring measures should be formulated. The policy address has mentioned that these corporations should disclose more information, but the Administration currently has no objective standards for the monitoring of public utilities, and has not been able to keep abreast with economic and social changes. Therefore, we think that the relevant policy needs urgent review and improvement.

(6) The four Ordinances on commodity and product safety and protection of consumers' interests in the context of transactions, which have undoubtedly provided considerable protection to consumers' interests, are worthy of our support. But these Ordinances were in fact enacted according to the proposal in the 1990 report of the Law Reform Commission. Such a progress is not satisfactory as it has taken three years to draft the relevant Bills. We hope that after the consultation exercise is completed the Administration can submit the relevant Bill to this Council as soon as possible such that it can be examined and passed into law.

(7) We welcome the commitment expressly stated in the policy address to grant $11 million to establish a Consumer Representative Action Fund. We hope that the relevant study can be completed earlier such that the Fund can be made available to the public.

C. Social welfare

Although the part on social welfare in the policy address has emphasized the improvement of the family, it has totally neglected the care for single-parent families. As the divorce and separation rates in Hong Kong increase

462 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

continuously, the number of single-parent families also increases at the same pace. The parents of such families have to face not only the problem of income, but also other problems like domestic duties, the pressure and conflict coming from the working environment, accommodation and insufficiency in child care service. The Administration and society have not properly addressed this problem, and the mothers of these families are even subject to various kinds of discrimination. Therefore, we urge that the Administration should conduct a comprehensive and in-depth study on single-parent families and formulate a policy for this problem.

As far as the services for the handicapped people are concerned, the policy address has not proposed an immediate solution, especially to the serious shortage of places in sheltered workshops and hostels for the moderately and severely mentally handicapped people. This has aroused the suspicion of whether the Governor can keep his promise of realizing all the main targets for rehabilitation services by 1997.

We propose that this Council should set up a working group as soon as possible to assist and monitor the formulation of the law on anti-discrimination so as to rectify society's discrimination against the handicapped people.

D. Civil servants

As regards the Civil Service, the policy address has mentioned that the Administration will use $7 billion to set up a pension reserve fund.

The reason for setting up the fund is that civil servants are afraid of possible changes to the pension policy by the SAR Government or are worried that economic or financial changes may affect the SAR Government's ability in paying pension. From the economic or financial point of view, the establishment of the fund should have the effect of allaying the civil servants' anxiety. Therefore, we support the setting up of the fund, but we also propose that the fund can become a new financial instrument instead just being a figure listed on the relevant account which will be meaningless.

From a systemic point of view, the pension arrangements operate as a retirement fund system which can offer good income security. But we have discovered that an increasing number of those who have joined the Civil Service do not regard their career in the Government as a life-long one. I believe that many young civil servants would prefer a retirement protection system with less restriction like a provident fund system. In view of the current changes, it is in the long term worthwhile to examine whether the existing pension system should continue to be used as the retirement protection system for the civil servants.

Meeting Point takes exception to the recent arrangement for expatriate civil servants on overseas contract terms to convert to local terms. Such an

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 463

arrangement has disregarded the impact on the localization policy as applied to the Civil Service.

Set against the background of the decolonization process for Hong Kong, the localization policy aims to promote local Chinese officers to the various top levels of the Civil Service. If an expatriate officer has become a civil servant on permanent and pensionable terms, his employment should of course be protected. But as for officers on overseas contract terms, if their continued employment will hinder the promotion of local Chinese officers, then either that their contracts should not be renewed or that they should be transferred to other posts which will not cause hindrance to the localization process. Therefore, I have found the new conversion arrangement unacceptable. I urge the Administration to defer the implementation of the relevant measures and put the policy concerned to this Council for debate.

Madam deputy, because of our disappointment with the contents of the policy address, the four Members from Meeting Point will abstain from voting on the motion.

MR LAU CHIN-SHEK (in Cantonese): Madam deputy, what kind of a policy address do employees wish very much to see? I believe it is the kind that sketches an ideal "labour policy picture". What then is the ideal picture employees wish to see? I believe every employee wishes to have a suitable job with labour relations built on dignity and equality so that he may go to work happily and return home safe and sound every day, and a really comfortable life after retirement.

The Governor's policy address did not start from a true understanding of the predicaments of employees, thus failing to prescribe the right remedy and to paint a picture that will be applauded by employees. Regrettably, this year's policy address has disappointed many an employee. However rosy the Governor depicted Hong Kong's economic picture, I do not think he could turn a blind eye to the demands of employees and the various difficulties they are facing currently. Today, I intend to describe the "labour policy picture" that employees in Hong Kong would wish to see, hoping that the Governor would drop his one-sided view as to labour policy.

At present, many employees are faced with problems in even the most basic area of job security. The continuing industrial transformation, relocation out of Hong Kong of production processes and service departments of companies, and the scheme of importation of foreign labour are posing serious challenges to the job and livelihood of many employees. All these are questions that the Government should address.

While the intention of the retraining scheme may have been good, its significance is obviously suspect if we cannot find suitable and stable jobs for the retrained workers however numerous the retraining courses and however

464 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

vast the scheme's coverage. I think that the biggest obstacle to the success of the employees retraining scheme at present is the scheme of importation of foreign labour. Therefore, I stress again that the Government should discontinue this policy of importing foreign labour which is breaking the "rice bowls" of workers and hindering their switching to other trades.

Having had a secure job, employees will of course hope that their relations with employers can be built on an equal and reasonable basis. The Cathay Pacific industrial dispute early this year has revealed that labour relations in Hong Kong are built on an entirely unequal basis where workers' right to strike is not protected and the collective bargaining by trade unions not recognized. The Government must make improvements in these areas.

The Government did undertake to review such questions as the right to strike and collective bargaining by trade unions. But the greater part of the year has already passed, and there is still no result coming out of the said review. Moreover, the Governor made no mention in his policy address of proposals on how to promote equal labour relations. I hope the Government will as quickly as possible disclose the review results to the public and this Council to give us the opportunity to examine the same and propose effective improvements in order that genuine equal and harmonious labour relations be established.

Recently, the Government submitted to this Council an amendment Bill to the Factories and Industrial Undertakings Ordinance, proposing a significant increase of the maximum fine for industrial safety-related offences. However, given that most of the existing fines were legislated for in 1981 and that there has not been any increase over the last 10 years or more, the latest proposed increase will at its best be making up for inflation during the past decade. Meanwhile, the most disappointing aspect is that the annual number of prosecutions stands at a little over 2 000 only. Compared with some 100 000 industrial accidents resulting in fatalities or injuries each year, this figure is obviously too small. And a bigger problem at present is that the average fine in the case of successful prosecutions ranges from $4,000 to $5,000 only, far below the maximum fine. The deterrent effect of the Ordinance is therefore undermined. In fact, many construction site contractors have scant respect for the Ordinance and prefer paying fines to enhancing safety at construction sites and slowing down works progress.

An effective solution to the problem in fact lies in formulating stricter safety requirements for operators of industrial undertakings and construction sites, increasing the manpower for enforcement and stepping up prosecutions. The Government therefore needs to further strengthen its efforts.

I agree to the Governor's remark in the policy address that "The primary responsibility for preventing accidents lies with employers, contractors and workers." I was therefore very surprised at the Governor's failure to put forward any proposal to set up Construction Sites Safety Committee and

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 465

Factories Safety Committee comprising representatives from employers and employees. As "everyone has a part in industrial safety", improvement to industrial safety cannot rely on increasing the number of safety officers alone. Safety committees with participation by worker's representatives should be set up as soon as possible. The Labour Department said recently that it would consider making it a compulsory requirement for factories and construction sites with more than 50 workers to set up safety committees. I think that the Government should implement this proposal immediately, instead of making delays on grounds of consultation.

The implementation of a complete and comprehensive retirement protection scheme is naturally the primary demand of the labour sector. I have to reiterate that this demand was in fact already made more than 20 years ago. The many young workers who had contributed with blood and sweat to the economic growth of the territory during the 1950s and 1960s are exactly the group of people who need retirement protection now and who have not had any response from the Government so far.

If we say, on this question of whether or not Hong Kong should implement a retirement protection scheme, that the Government has been dithering at a "crossroads" over the last 20 years without a a clear sense of direction, then the Executive Council deciding at the end of 1991 to implement a community-wide retirement protection scheme, would it not be true to say that we have moved from the "crossroads" onto a "highway" and are heeded for the finishing line?

Once I thought the Government had found a clear direction after years of study, a public consultation exercise and categorical support from the community and colleagues of this Council for the setting up of a Central Provident Fund scheme. I therefore thought that this year's policy address should have carried the message that we have finally reached the "finish". But the policy address told the public that the Government is returning from the "highway" to the "crossroads" and needs time still to examine again how to follow this "course" and that we might be "back to the start".

I have no idea what the real intention of the Government is. But the latest dubious attitude of the Governor and Education and Manpower Branch officials towards retirement protection and central provident fund is such that people cannot help suspecting the Government's sincerity in resolving the question of protection for employees. The Secretary for Education and Manpower indicated that the eventual protection for employees might be minimal and might even result in a situation where "all people pay a tax" if the contributions under a centralized retirement protection scheme were administered by the Government. Of course, just as the labour sector has pointed out, there are deficiencies with a retirement protection scheme which relies solely on contributions from employers and employees. Therefore in implementing a central provident fund scheme, the Government should also examine how to implement the proposal for a "universal retirement protection" scheme. But it

466 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

is most intriguing as to why a contributory central provident fund could be construed as a scheme whereby "all people pay a tax"? If that is the case, are people "playing taxes in disguise" when they deposit savings with banks? Would banks like the Hongkong and Shanghai Bank, Hang Seng Bank, Bank of East Asia and so on become the Inland Revenue Department? Would our honourable colleague Mr David LI become "Director LI" of the "East Asia Inland Revenue Department"? Would the Honourable Vincent CHENG become an adviser to the Hongkong and Shanghai Inland Revenue Department? Why must the Government mislead the public when the benefit accruing to an employee will be over 10% under a central provident fund to which he has been contributing 5% and his employer not less than 5%?

Madam deputy, the question is crystal clear. The implementation of a central provident fund type retirement protection scheme is the consensus among most colleagues of the Council and the public, Should there be any difference of opinion in society with regard to the implementation of a retirement protection scheme, such difference would obviously be between the Government and the public. It is the Government who is determined to take a stand against the public.

I have reiterated that there is no "turning back" for the Government on the question of retirement protection. A retirement protection scheme is long overdue and it is better to have less contributory benefits than none at all. "A secure livelihood in one's old age" is undoubtedly the wish of all Hong Kong people. But how otherwise can we secure a "comfortable retirement" for those employees who laboured for the prosperity of Hong Kong years ago than with financial protection?

Madam deputy, I so submit.

MISS EMILY LAU (in Cantonese): Madam deputy, my most critical comment about the Governor's policy address this year — a similar comment indeed has been made by some of my colleagues — is that it is very myopic and short of any long-term plans at all. I believe that a government's failure to make long-term arrangements will be a very big problem in any society. Of course, some will immediately counter by pointing out that this is a sunset government or a lame-duck government. They may even say, as the Chinese Government has said, that the Hong Kong Government will probably soon become a "legless duck" government. And what can the public expect from such a government? In fact, in the policy address, the only thing that straddles 1997 is the Governor's proposal of a task force to be set up in the hope that it will clean up the New Territories over the next decade and take action against the haphazard conversion of farmland into storage and dumping sites. I hear that the Governor is sometimes very upset when somebody said to him, "You have taken so many initiatives. However, you surely will leave Hong Kong in 1997 and will no longer be here. This being so, you should not have initiated so many measures." He confessed, "I will leave whether I initiate anything or not. This

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 467

is a matter of reality." What right does the Government — a government that is bound to be replaced — have to talk about post-1997 concerns and arrangements?

Actually, the most important thing is whether those people of Hong Kong who will remain here after 1997 will have any chance to form a government on their own. To achieve this, pertinent proposals should be put forth now, and a long-term plan laid down. It is to be hoped that the Government to be formed will continue to have the support of the people of Hong Kong after 1997 and, as a government elected by the people of Hong Kong, will continue to carry out policies made before 1997. I believe that this, and nothing else, is most important and is central to the current Sino-British talks.

The other day, we met members of the Foreign Affairs Committee of the British Parliament. We said at the time that our biggest problem with the Sino-British talks was the fact that the people of Hong Kong were completely kept in the dark, nor could they participate in the talks in any way. It is hard to believe that up to now, the elected representatives of the people of Hong Kong still have no way of finding out what is going on when Hong Kong's sovereignty will be returned to China under a communist regime in less than four years. The disgracefully secret talks are continuing. The clear and iron-clad truth, I think, is that the elected representatives of the people of Hong Kong are being denied their right to participate in the decision-making process concerning our future. However, it appears that some people are ignorant about this. I recently read former British Prime Minister Lady Margaret THATCHER's memoirs Downing Street Years, in which she recalled the 1982-1984 Sino-British talks. She said that every time when the British Government intended to make concessions to the Chinese Government, she would consult the representatives of the people of Hong Kong first. Reading these words made me jump in surprise. Did the people of Hong Kong have "representatives"? Who might they be? Then I found that she was referring to Members of the Executive Council. I was shocked. How could she be so ignorant! I feel that her words are a great insult to the people of Hong Kong, for certainly no Member of the Executive Council then or now would presume to call himself or herself a representative of the people of Hong Kong. They might be able to say that they tried to echo the sentiments of the people of Hong Kong, but they were absolutely unqualified to say that they represented the people of Hong Kong. I do not understand how a British Prime Minister, the same who single-handedly decided our future for us, could be so ignorant? I feel that this is an insult to the intelligence of the people of Hong Kong. Our present Governor, I believe, certainly will not say such stupid things.

A disturbing possibility now facing the people of Hong Kong is that the talks may break down. However, I believe that my colleagues and many members of the public in Hong Kong are psychologically prepared for such an eventuality. The positions of the Chinese and the British Governments are poles apart. There is no likelihood that their differences could be narrowed. And the talks are bound to break down. The people of Hong Kong have waited too long.

468 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

We hope that the Chinese and the British Governments will stop wasting any more of our time. I hope that the Governor will quickly table a package in the form of a bill at this Council. I represent The United Front for Direct Elections in 1995. Surely I want to see all seats directly elected in Hong Kong in 1995, if not sooner. I also hope that the future Governors of Hong Kong will be directly elected. So, when the bill is tabled at this Council, I certainly intend to move an amendment to express my hope that all 60 seats of the Legislative Council will be directly elected in 1995. When that time comes, I hope that all my colleagues will support me, particularly those from the United Democrats of Hong Kong and the other self-styled democrats.

Mr Peter WONG from the Liberal Party said a moment ago that we must not bargain for democracy by paying "too high a price". What "high" is "hight"? What is "low," for that matter? Different people and different political parties interpret these words differently. I feel that the matter should eventually be left to the people of Hong Kong for a decision. I personally support a referendum. I hope that many of my colleagues will also support such an idea. I believe that, if a referendum is proposed, over 95% of the people of Hong Kong — regardless of political persuasion — will accept and support it.

Dr LAM Kui-chun said a moment ago, "Initiating democracy in Hong Kong is like asking the Chinese Government to let Hong Kong sow the seed for the overthrow of the communist regime." I wonder what he was driving at with such a far-fetched remark. I think that his remark is very provocative. Such a remark should not be made in the first place when things are now so difficult between China and the United Kingdom. What kind of seed is it, may I ask, for the overthrow of the Chinese Communist Party? I fail to see that there are people in this Council or outside Hong Kong who are talking all the time about overthrowing the Chinese Communist Party. Why say such inflammatory words at this time?

Democratic development aside, I believe that the Chinese and the British Governments are also well aware that many people in Hong Kong are very worried because the Sino British Joint Liaison Group is not making any progress in its work. But what is worse is that we the people of Hong Kong have no idea at all about what is going on. The two Governments will disclose a little bit of information as fancy takes them. A case in point is the recent disclosure that there are several hundred Ordinances pending amendment; that several hundred British statutes are yet to be adapted; and that many agreements — multiateral and bilateral international agreements — are yet to be renegotiated. What else is there? How are the Ordinances to be amended? How are they to be brought in line with the Basic Law? At what time will Hong Kong be allowed to take a direct part in such matters? I hope that the Government will let us have the answers in no uncertain terms in its reply. I also hope that this Council's constitutional development panel will be given regular briefings by the Government on the progress of the Group's work.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 469

Concerning livelihood matters, the Government is very fortunate indeed in that, compared with the governments of other countries, it has a lot of money to spend. I believe that many other governments are envious or jealous. I support the various improvement measures put forward by the Governor, for instance, the improvements in the health care area. However, I feel — and I have said so to the Governor as well as the Financial Secretary in person — that the most important matter is housing. I believe that the housing problem is more pressing than any other problems. This is why I agree with the points made a moment ago by Mrs Elsie TU and Mr Frederick FUNG. I am very disappointed at what the Governor says in his policy address about housing, particularly public housing. We know that there are still tens of thousands of families on the Waiting List. But the Governor merely talks about clearing temporary housing areas before 1997. This is not enough. I expect, in its reply, the Government would let us have some substantive answers and give some hope to the more than 100 000 applicants on the Waiting List. I also expect the new chairman of the Housing Authority to come up with better and faster solutions for the problem.

So much about housing. Another matter that greatly perplexes me is the compulsory retirement protection scheme. I agree with Mr Marvin CHEUNG, who said a moment ago, that this "has dragged on for about 30 years". I am disappointed at the Governor's failure to make use of the occasion of the policy address to put forth a solution. Must there be a Central Provident Fund (CPF)? Will private compulsory retirement protection be preferable? Indeed, different people see different answers. There is disagreement even among my own constituents and my supporters. However, it is a decision that the Government must make, no matter how difficult it may be. As Professor Nelson CHOW of the University of Hong Kong put it recently, it might take five years' preparations for the establishment of a CPF. He therefore found that a compulsory retirement protection scheme, if set up sooner, would also be acceptable. I have great respect for Professor CHOW. Time is indeed running out for a government that has only less than four years left to run Hong Kong. If we spend many more years weighing CPF, will there perhaps be no result to show by the time the British withdraw from Hong Kong? If that is the case, I would rather see the authorities act expeditiously to implement compulsory retirement protection under a waterproof supervision system. This will be acceptable as far as I am concerned.

I would like also to talk about the Government's proposal to inject $7 billion into a Pension Fund for civil servants. Civil servants account for only 5% of Hong Kong's working population, but the Government is treating them so well. In contrast, we see that blue-collar workers, who account for 65% of the working population, have been offered nothing at all. This being so, how can Members persuade themselves to support a request to appropriate $7 billion for the purpose as proposed? I also agree with many of the other things that Mr Marvin CHEUNG said a moment ago in this area. I myself once put the question to the Government: How is this Pension Fund to be managed? Should the money be deposited in Hong Kong or in foreign countries? I believe

470 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

that, if these questions are not answered satisfactorily, it will be very difficult for me to support this Pension Fund.

I am also greatly disappointed at something else in the policy address. It has to do with human rights and freedoms. to many people in Hong Kong, human rights and freedoms are very important. But let us look at the policy address. It does not even have a heading for this important matter. It only has an "Against Discrimination" sub-heading, under which two short paragraphs mention human rights and freedoms. The Governor, I believe, is probably very wary about touching human rights, which he considers to be very sensitive matters. But he should have realized that, to my colleagues and to many people, human rights is a very important issue. Therefore, I wish that the Governor would have been more courageous and made more mentions of human rights and freedoms. Now Mr SUEN is asked to take responsibility for human rights issues. I hope that he would try his best to promote human rights in Hong Kong so that we can be reassured that the Government has genuine respect for human rights and freedoms. There is one point that I wish to make in particular, and it is of course the freedom of the press. As one who has done journalistic work for 15 years, I know very well that Hong Kong's journalists, in trying to uphold the freedom of the press, are facing pressures and challenges from all quarters; they are greatly distressed. The XI Yang incident has greatly worried Hong Kong's journalists. That was why the Government said, in answering my question yesterday, that they would explain the implications clearly to the Chinese Government. As a matter of fact, a Hong Kong reporter covering news events in China is totally at a loss as to what he can do and what he cannot do. The consequences of not knowing the right answer can be very serious. Mr President, you may be aware that some Chinese journalists have been sentenced to life imprisonment for leaking information. Some Hong Kong reporters, too, have been arrested in China. I therefore say that the Hong Kong press as a whole is in a difficult situation. We hope that the Government will introduce legislation expeditiously concerning the freedom of the press. Hong Kong should legislate its own official secrets statute. We must not continue to rely on the British statute as it will become invalid after 1997. In 1997, if Hong Kong still does not have a necessary statute of its own when the British Official Secrets Act will have stopped to apply, we will have to apply Chinese law. We do not want this to happen. I believe that such a prospect is very disturbing. As a related matter, the Government is opposed to the legislation of freedom of information. And I believe that we may not be able to persuade the Government to do the necessary things in the near future. Still, even without a freedom of information law, I must at this time urge the Government to make the entire system more open. I must do so because many members of the public — journalists or not — have tried to obtain information from the Government but found this very difficult to do. I further hope that government officials will accept our invitation soon and come to attend meetings of our information policy panel and explain to the public about what channels are available if they want to obtain information from the Government.

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 471

I would also like to mention the nationality issue. I very much agree with Dr LEONG Che-hung's statement that the British Government has a moral obligation towards the more than three million British Dependent Territory citizens in Hong Kong. I am sure people will not forget this issue. I will keep raising it. The British Government is really very stingy. It refuses even to issue a few dozen passports to widows and orphans of veterans and a few thousand passports to members of ethnic minorities. This is already making my colleagues furious. For my own part, I am considering moving a motion on a vote of no confidence in the British Government. On the nationality issue, I personally feel that the United Kingdom's attitude is very disgraceful.

Lastly, I would like to turn to environmental protection. I personally feel that environmental protection is very important. I am very glad to see that the Secretary for Planning, Environment and Lands is here with us. I hope that he will take the necessary measures to impose heavier penalties on offenders against environmental protection law. My colleagues and I feel that, unless heavier penalties are imposed to frighten people out of polluting the environment, many will not treat our statutes seriously. The court may impose a light penalty if it chooses to do so, but my colleagues and I will make law to raise the penalties, to the extent of making penal punishment compulsory for offenders, who, it is hoped, will then understand the importance of environmental protection.

With these remarks, I support the motion.

THE PRESIDENT resumed the Chair.

MR LEE WING-TAT (in Cantonese): Mr President, in his policy address this year, the Governor said, "The Housing Authority has actually beaten the targets I set out in last year's address by producing an average of 140 units per day against the objective of 100." I pointed out immediately that the figure was misleading; it misled the public into believing that the Housing Authority had increased the output of public sector housing. Sure enough, the Director of Housing and the Chairman of the Housing Authority have since said on separate occasions that the Housing Authority will continue to proceed with housing production in accordance with the Long Term Housing Strategy and that there is no increase in the output of housing. They have gone on to say that the production rate of 140 units per day was the average for the high-output period from November 1992 to July 1993, after which the production rate has fallen back to the low level of about 100 units a day.

Perhaps some will ask: Why waste breath on a mere difference of 40 units a day? Well, if we keep our heads clear, we will find that 40 more units a day equal 14 600 more units a year, a number which exceeds the number of public housing units allocated during 1991-92 to applicants on the Waiting

472 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

List. We still have 120 000 families on this Waiting List. We can well imagine how tight public housing supply is.

I must say thanks to Mr EASON, the Secretary for Planning, Environment and Lands, who wrote to me last week and took the initiative to provide me with the latest housing construction statistics. For the four financial years from 1994-95 to 1997-98, the average number of units to be completed per day will be only 93, yes, 93 and not 140. I believe that social problems due to insufficient housing are a major difficulty that will confront the Government of the Special Administrative Region.

While thanking Mr EASON, I must also point out that there are serious differences between the two of us. In June 1993, I moved a motion on an increase in land supply. The motion was unanimously passed by unofficial Members. But Mr EASON opposed it, on the ground that "land availability is like the rising sun; the problem of short supply does not exist." However, the Housing Authority has now confirmed that land shortage is one of the major difficulties in carrying out the Long Term Housing Strategy. The Chairman of the Housing Authority has said that it is quite necessary for the Government to promise to make more land available for meeting the growing housing needs of elderly people. True, an increase in land availability for housing construction at this time will be too late to satisfy the most pressing needs. Still, I hope that the Government will not be myopic and will not disregard the several hundred thousand people who are living in high-rent flats owned by private landlords or those who are living in bedspace apartments, squatter huts or temporary housing areas.

Mr President, informed sources in the Housing Authority have recently disclosed to the media that the Housing Authority is considering putting another type (Type II) of Home Ownership Scheme (HOS) housing, a less expensive type of the HOS housing, on the market. Among the roughly 30 000 units produced each year, the ratio of the HOS housing to public rental housing is about 1 to 1. With the introduction of Type II HOS housing, the number of public rental housing units will decline sharply. The waiting period will get longer for the families on the Waiting List, particularly for those with lower income. I think that doing anything at this time to encourage home purchases by sitting tenants of the public housing estates and by people on the Waiting List is like gilding the lily. It is something that can wait. What cannot wait is to give timely relief to the needy and to solve the problem for the destitute families on the Waiting List. This is the reason why the United Democrats of Hong Kong (UDHK) are opposed to the idea of putting Type II HOS housing on the market. If the Government wants public housing tenants to become home-owners, why then does it not make a new plan to sell the HOS housing at even more attractive prices? Mr President, we have consistently been advocating increased housing construction, but the Governor has so far given no positive response. What is really quite surprising is that, according to Mrs Margaret THATCHER's memoirs, Mr Chris PATTEN, when he was Britain's Minister for Environment, favoured increased public housing construction, an idea that was inconsistent

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 473

with Mrs THATCHER's privatization policy. So the two started a war of words between them, according to the memoirs. When Mr PATTEN was still in Britain, he was a Member of Parliament who cared for the people and who wanted the government to provide more benefits. Why has he, since coming to Hong Kong, turned into a governor who disregards the sufferings of the people? Are we to assume that the Governor has changed course, has turned from a Tory left-winger into a right-winger and capitulated to Mrs THATCHER? The Housing Authority is planning to carry out a series of privatization reforms. This is a test for the Governor. Does he really take the side of the people's well-being?

Mr President, the Governor made a suggestion in his policy address this year, asking the Chairman of the Housing Authority to consider making a greater commitment to public housing estates' repairs, maintenance, security and management. On this point, the UDHK have been more prophetic than the Governor. In June 1993, through the Rev FUNG Chi wood, we moved a motion at this Council, urging the Housing Authority to make improvements in the above areas. Regrettably, however, Mr EASON, the Secretary for Planning, Environment and Lands, opposed the motion. The Housing Authority, too, said that the public housing estates had no security or management problems, so major improvements were not needed. They went on to accuse UDHK of politicizing the issue and putting on a show.

If Mr EASON and the Housing Authority now think that the Governor is right to make the suggestion about improving the public housing estates' security and management, then what is clear is that their criticism of, and opposition to, the Rev FUNG's motion in June July were mindless, irrational and irresponsible. They picked on persons but did not deal with the facts. The Governor has now made his suggestion and the relevant authorities are rushing to take action on it, the action that they did not take on the Rev FUNG's suggestion. Why? The relevant authorities should give a public explanation: Why did they pick on persons but not deal with the facts? The truth is that poor management and poor security are very serious problems in the public housing estates. This is very clear to Members who pay frequent visits to local communities (unlike the Governor or the Chairman of the Housing Authority, who only make publicized inspection tours). I do not intend to speculate on the Governor's motives in making the suggestion. I merely urge Mr EASON and the Housing Authority to take positive steps to correct their heretofore mistaken position in the above areas and to enable quick improvements to be made in the management and the security of the public housing estates in order that the residents can live in peace.

Mr President, a loan scheme was put forth two months ago to help the sandwich class to purchase homes. the response has not been satisfactory. This shows that the prices of properties are too high. The low-interest loan to a member of the sandwich class is enough only to meet the down-payment on a flat. The monthly payment will still be a heavy burden. Such being the case, the only solution for the problem is to speed up and expand the construction of

474 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

the HOS housing for the sandwich class. I suggest that it should be made possible towards the end of 1994 for members of the sandwich class to make forward purchases of the HOS housing specially built for them. This will help to solve their housing problem sooner. Another point is that the HOS housing should, in concept, be a long-term plan that straddles 1997. This plan should set an annual housing production figure. It should be carried out over a period during which the housing needs not only of the present 50 000 or so members of the sandwich class but also of any new emerging members of the sandwich class will be met.

Mr President, I will now turn to the transport problem. In his last policy address, the Governor made no mention of the transport infrastructure or the transport policy. The Governor perhaps thought at the time that the Government was handling the transport problem very well. But everybody in Hong Kong saw during the past year that traffic congestion was caused every time there had been a typhoon or a heavy rainstorm; that general strikes by truck drivers occurred more than once at the border; and that lines of bumper-to-bumper traffic were almost daily occurrences on Tuen Mun Road. Hong Kong's overall transport problem has grown more and more serious following the rapid expansion of trade between Hong Kong and China and the high-speed growth of new towns. This year, the Governor is finally taking a square look at the transport problem. it is a bit late in the day. But it is still better than nothing.

Firstly, UDHK welcomes the Government's allocation of more resources to the improvement of road systems. UDHK have been suggesting for years that the Government should build the Ting Kau Bridge on its own. This Bridge will be of some help towards solving the traffic congestion problem on Tuen Mun Road and in Tsuen Wan, Kwai Chung and Tsing Yi. On the other hand, if the transport problems of Tuen Mun and Yuen Long are to be solved, building the Ting Kau Bridge alone will not be enough. The over-burdening of Tuen Mun Road can be solved only if the Country Park Section is completed simultaneously with the rest of Route 3 and opened to traffic in 1997. This will also be of great help to freight transport between China and Hong Kong. So we hope that the Government will do everything it can to move forward the completion date of the Country Park Section of Route 3.

Tuen Mun and Tsing Yi have a great potential for the development of marine transport, which will help to reduce road use by motor vehicles and do a lot of good to the traffic congestion on Tuen Mun Road, in Kwai Chung and Tsing Yi and along the Nathan Road corridor. The Government and public transport companies need to take positive steps to implement the suggestion to link up high-speed ferry service with bus service.

We support the suggestion that some of the border check-points should be kept open 24 hours a day. This will help to reduce the congestion of container trucks which now occurs during the restricted opening hours of the check-points. This, in turn, should help to shorten the lines of trucks waiting to cross

HONG KONG LEGISLATIVE COUNCIL — 21 October 1993 475

the border. However, the basic solution for the problem is to enhance the efficiency and the morale of customs officials on both sides of the border and to improve co-ordination between their customs offices. In the long term, cross-border roads must be improved, and a new cross-border railway for freight trains must be built quickly. Only this will help us to cope with the fast growth of freight traffic between China and Hong Kong.

Unless the Government controls effectively the number of vehicles, road construction by itself will not prevent the traffic congestion problem from getting worse. The Government should move quickly to enable the northwest New Territories rail line, the MTR extension to Tseung Kwan O and the Ma On Shan rail line to be completed before 2000. These mass transit systems will reduce Hong Kong's dependency on goods vehicles and private cars. In addition, a study must be made to find the most acceptable ways to slow down the overly fast increase in the number of motor vehicles and to raise the overall efficiency of public transport services, thereby keeping the traffic flow smooth along Hong Kong's transport routes. I hope that the Secretary for Transport will respond to the above suggestions.

In the transport area, one final point that I would like to make is about the dug-up state of road surfaces. This is my third year in this Council. I say each year, and I keep saying, that at least 10% to 20% of Hong Kong's traffic congestion is caused by the dug-up state of road surfaces. I always think that the public utility companies responsible for digging up road surfaces should pay a charge, thereby sharing the social cost of traffic congestion. The Secretary for Works should give us a satisfactory explanation why he has failed to take effective steps for controlling the digging up of road surfaces.

Mr President, in the past, Mr PATTEN wanted the British Government to make a greater commitment to its people's livelihood. But he has reversed course in Hong Kong. Does this mean that, in Mr PATTEN's opinion, he is not accountable to the people of Hong Kong? Mr PATTEN should understand how important it is to have a democratic society with freedoms, human rights and the rule of law. He must see that people cannot have a happy life by simply having a democratic system and provisions of law. They also need a social policy that is reasonable and which protects livelihood. If the Governor wants the media to stop calling him the "one-issue" Governor, then he must take action to show that he really cares about the people's livelihood, and he must act expeditiously to solve the people's housing and transport problems. This will be a very important first step.

These are my remarks.

MR ERIC LI (in Cantonese): Mr President, Hong Kong people value their present lifestyles. It was once thought that under the dual protection of the Sino-British Joint Declaration and the Basic Law horse racing and dancing could continue and Hong Kong's prosperity and stability could be maintained for

476 HONG KONG LEGISLATIVE COUNCIL — 21 October 1993

50 years. Unfortunately, the June 4 incident ushered in a period of stormy relations between China and Britain. The situation took a steep downturn and what had hitherto been Hong Kong's peaceful and harmonious lifestyles have become tainted with political overtones and suffered a sea change.

Leaving aside the question of whether the new elements imported into the political equation are really called for, what we are certain of is that these political elements have not come about from down up, that is to say, from the practical livelihood needs of the people. They are generated through the importation of raw materials from the Chinese and British Governments which then coalesce to form concepts and come to fruition as a result of systematic and catalystic promotion by artificial means. This sudden appearance of "supplied politics" brought about through a top down effort by two regimes of diametrically opposite political pursuasions has inexorably divided the Hong Kong community and triggered confrontation even before its vaunted benefits become apparent. Hong Kong people are made to witness the painful spectacle of a full spectrum of negative effects on the political front. The reality Hong Kong People have now to face is the mutual mistrust among politicians, the false packaging under political slogan wrappers, the loggerheads between political parties, and the lack of diversified political choices. Viewed objectively, Hong Kong's political system has only limited room for development. Pre-1997, it is subject to the constitutional constraints applicable to colonies. Post-1997, Hong Kong will have to face up on its own to a China who has international clout, is politically stable and economically closely related to this territory. Therefore, in the context of its limited political clout and the economic constraints which make it impossible for Hong Kong to break from China to take to its own road of development, Hong Kong people are liable to feel weak and helpless.

Confrontational politics is not part of the lifestyles Hong Kong people fancy. If, at the eleventh hour before sovereignty over Hong Kong reverts, Britain should slapdashly shunt its political responsibility onto the people of Hong Kong while vigorously promoting a set of concepts and sweet-talking the public into believing that a disguised form of direct election will breathe life into a congentially deficient, dismembered and untried political system wherewith to separate without China's consent Hong Kong from China with the rule of law and lifestyles for Hong Kong preserved intact, I believe this will hardly convince Hong Kong people who are sharp and pragmatic. To put it mildly, some will think that the very attempt to sell this to us amounts to an insult to our intelligence. To put it acrimoniously, some will say it is a gross attempt at misleading and propagating a false sense of security. To put it in an even more adverse light, some will say that it is a hypocritical and self-serving political gimmick aimed at allaying internal and international criticism against Britain for offering back Hong Kong on a plate to a Chinese regime which is incapable of upholding human rights.

If Britain can only produce a political system with an increased number of disguised directly elected seats on the Hong Kong legislature as an exit ladder