ENG-2002 — Page 446

COMMUNICATIONS, THE MEDIA AND INFORMATION TECHNOLOGY

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experienced banker from the United Kingdom was invited to share experience in risk assessment and management in film financing with local bankers. In October, a consultation paper on the proposed establishment of a Film Guarantee Fund to provide loan guarantees for commercial film productions was published for consultation with the local film industry, the banking sector as well as the public at large. The result of the consultation showed that the proposal was widely supported. With the endorsement of the Film Services Advisory Committee and the Legislative Council's Panel on Information Technology and Broadcasting in November and December respectively, the Government aimed to submit a proposal to the Finance Committee of the Legislative Council in early 2003, to set aside $50 million from the Film Development Fund for the establishment of the Film Guarantee Fund.

With the commencement of the Entertainment Special Effects Ordinance and its subsidiary legislation on March 16, 2001, a streamlined regulatory system is now in place to facilitate the use of pyrotechnic materials for producing special effects for films, television and theatrical productions. Under the new legislation, the Commissioner for Television and Entertainment Licensing is the Authority responsible for licensing special effects operators; issuing discharge permits; registering and regulating the supply, conveyance and storage of pyrotechnic special effects materials. In 2002, the Authority issued 520 discharge permits for producing special effects. Before the legislation came into effect, the maximum number of discharge permits issued each year was less than 260. This indicates that the new regulatory system has been well received and utilised by the industry.

Postal Services

Hongkong Post provides reliable, efficient and universal postal services at affordable prices to meet the needs of Hong Kong and its international postal obligations. Since August 1, 1995, Hongkong Post has operated as a trading fund department. This gives it a higher degree of flexibility in resource management and enables it to respond more effectively to changes in markets and customer needs, improve productivity, efficiency and customer service, and introduce new services to its customers.

During the year, Hongkong Post handled 1.27 billion items of mail, or a daily average of 3.5 million items, representing a decrease of 7.5 per cent over 2001. Local mail accounted for 85.6 per cent of the items processed and overseas mail for 14.4 per cent. Some 11 023 tonnes of letter mail and 1 702 tonnes of parcels were dispatched overseas by air, representing a decrease of 5.6 per cent on 2001. The United States, the Mainland, the United Kingdom, Japan and Taiwan were Hongkong Post's major partners in letter mail while Japan, the United States, Canada, the Mainland and Taiwan were its major partners in parcels. The decrease in mail traffic was mainly attributed to the economic downturn in Hong Kong.

Performance pledges are published for the delivery of mail, philatelic, counter and public Certification Authority services. Hongkong Post achieved a very high performance level in most of its pledges. In particular, it was able to achieve a success rate of 99.2 per cent for next-day delivery of local letters.

In March, an independent firm was appointed to conduct the sixth annual public perception survey of Hongkong Post's services. The overall satisfaction levels remained high, with some 97 per cent, 96 per cent and 99 per cent of customers in the general public, business and philately groups, respectively, being satisfied or very