Council Meeting (Agenda) 11 May 2011

A 10/11-26

Legislative Council

Agenda

Wednesday 11 May 2011 at 11:00 am

I. Tabling of Papers

Subsidiary Legislation / Instrument	L.N. No.
Tramway Ordinance (Alteration of Fares) (Amendment) Notice 2011	63/2011

Other Paper

Report No. 21/10-11 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments
(to be presented by Hon Miriam LAU, Chairman of the House Committee)

II. Questions

1. Hon Albert CHAN to ask: (Translation)

It has been reported that recently some developers have planned to take up the "residual plot ratio" of private property developments to construct high-density buildings in the vicinity of some large housing estates, such as Mei Foo Sun Chuen and Riviera Gardens in Tsuen Wan, which seriously affects the living environment of the residents of the housing estates. In this connection, will the Government inform this Council:

(a)	regarding the applications by developers of construction plans to take up the residual plot ratio of private property developments in the past 10 years, of the respective locations, heights and floor areas of the buildings, and the time when such applications were submitted to and accepted or rejected by the authorities (set out in table form);
(b)	whether the authorities will consider requiring developers to submit afresh applications in respect of construction plans approved years ago to take up the residual plot ratio of private property developments but the construction had not commenced (e.g. within 10 years), so as to facilitate the authorities in reviewing afresh whether such applications meet the existing planning standards; if they will, of the details; if not, the reasons for that; and
(c)	whether the authorities will consider the options of land exchange with the developers (e.g. using vacant Government premises or sites on the Application List) and allowing developers to convert the land use of their agricultural land reserve, in exchange for the land on which those highly controversial property developments are located, so as to settle the disputes among the developers and the residents; if they will, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Development

2. Hon Mrs Regina IP to ask: (Translation)

An eminent political economist has pointed out that since the financial tsunami in 2008, advanced economies especially Europe and the United States are increasingly stringent in their regulation of financial business (such as hedge funds, private equity funds and other alternative investment vehicles, etc.) which is of a high-risk and relatively strong speculative nature, coupled with the fact that the markets in those places are already saturated, these funds will continue to flood the emerging markets, including China, so as to seek much higher investment returns. The political economist has further pointed out that Hong Kong will continue to be an important base for investing in China, given Hong Kong's low tax regime, mature legal system and geopolitical factors. In this connection, will the Government inform this Council:

(a)	whether it knows the total assets, turnovers and total profits in the past three years of the hedge funds, private equity funds and other alternative investment vehicles in Hong Kong at present, as well as the respective percentages of these amounts in the relevant total amounts of the local financial system (please provide annual figures and percentages of increase); how these percentages compare with the relevant figures of other international financial centres, including New York, London, Tokyo and Singapore;
(b)	whether the financial institutions which issue the aforesaid investment products are regulated by the Securities and Futures Commission under the Securities and Futures Ordinance at present; of the details of the policy objective and legislative framework for regulating these institutions; and
(c)	given the gradual internationalization of Renminbi ("RMB") and the development of Hong Kong as a RMB offshore centre, whether the Government has assessed if the investments in the mainland market or RMB made through Hong Kong by those financial institutions which issue such high-risk and strongly speculative investment products which are of a high-risk and strong speculative nature will have impact on the national financial security?

Public Officer to reply : Secretary for Financial Services and the Treasury

3. Hon Vincent FANG to ask: (Translation)

Public markets of the Government were subject to criticisms by the Audit Commission because of problems such as long-term financial losses and low occupancy rates. In this regard, the Food and Health Bureau has proposed a number of improvement measures, including progressively increasing market stall rentals to "actual average rental" or "open market rental" and introducing service trade stalls at public markets with low occupancy rates. With regard to the aforesaid measures, will the Government inform this Council:

(a)	of the criteria for determining the rentals of public market stalls by the Government; whether it has taken into account the function of public markets to provide services to the general public, as well as other factors such as whether the services provided to the tenants are inferior to those provided by private markets;
(b)	whether the authorities have assessed if the introduction of service trade stalls (including beauty care, manicure, postnatal care-taking, travel agent, real estate and financial services, etc.) at public markets will turn public markets into commercial premises; whether such practice violates the land use restrictions of the land granted for the construction of public markets, and whether it is not consistent with the function of public markets; and
(c)	of the number of auctions held by the Food and Environmental Hygiene Department for the introduction of service trades; the results of such auctions (with a breakdown by the type of service trades, the number of stalls successfully let out through such auctions, and the level of rentals); how the rentals of such stalls compare to the highest and lowest rentals of other stalls at the same market; and when working out the "actual average rental" of stalls, whether the Government will make reference to or take into account in the calculation the level of rentals of service trade stalls at the same market?

Public Officer to reply : Secretary for Food and Health

4. Hon CHEUNG Man-kwong to ask: (Translation)

The Court of Final Appeal ruled in 2001 that children born in Hong Kong to Chinese nationals had the right of abode in Hong Kong. Since then, the number of babies born in Hong Kong to mainland women whose spouses are not Hong Kong permanent residents has soared by more than 50 times, from 620 in 2001 to 32 653 in 2010. The authorities announced on 28 April this year that seven measures would be introduced to alleviate the pressure on the healthcare system caused by mainland women giving birth in Hong Kong. Such measures include refusing the admission of non-local high-risk pregnant women, setting up a working group to determine the number of non-local pregnant women to be admitted next year and, starting from next year, determine at the beginning of each year the number of non-local pregnant women allowed to give birth in Hong Kong in the following year. In this connection, will the Executive Authorities inform this Council:

(a)	how they will, in implementing the aforesaid measures, stop agencies from arranging for mainland pregnant women to illegally come to Hong Kong to give birth;
(b)	of the justifications for treating in the same manner mainland pregnant women whose spouses are and those women whose spouses are not Hong Kong permanent residents; in connection with these two types of pregnant women, whether the authorities will request public and private hospitals in providing obstetrics services to give priority to mainland pregnant women whose spouses are Hong Kong permanent residents; and
(c)	of the expected number of mainland pregnant women giving birth in Hong Kong this year, and how it ensures that this number will not exceed the capacity of the healthcare system in Hong Kong?

Public Officer to reply : Secretary for Food and Health

5. Dr Hon PAN Pey-chyou to ask: (Translation)

Last year, I received a complaint from a small business proprietor alleging that he had submitted a patent application for his product in Hong Kong but had not obtained any effective protection, and the application procedures were cumbersome, and that Hong Kong lacks fair procedures for vetting patent products. In this connection, will the Government inform this Council:

(a)	given that under the existing Patents Ordinance, any member of the public who wants to submit a patent application for an invention in Hong Kong will first need to obtain the patent granted by one of the designated patent offices outside Hong Kong or submit a search report prepared by a designated searching authority, whether the authorities had, in the past three years, considered reviewing and revising the patent registration procedures under the Ordinance, such as introducing the "original grant patent system", so as to dovetail with the unique features of local industries and foster the development of creative industries in Hong Kong; if they had, of the details; if not, the reasons for that;
(b)	given that a number of economies such as the Mainland, Taiwan, Japan and Europe currently adopts "utility model patents" and give full authority to patent organizations or patent courts to vet and review patent rights, whether the authorities will consider introducing such system; if they will not, of the reasons; if they will, of the details; whether they will allocate additional resources to implement this plan; if they will, of the details; if not, the reasons for that; and
(c)	whether the authorities will provide legal assistance to Hong Kong's small and medium enterprises in respect of the vetting procedures for patent rights and in the event of patent disputes so that they will not lose the opportunity of having fair arbitration due to huge arbitration costs; if they will, of the details, if not, the reasons for that?

Public Officer to reply : Secretary for Commerce and Economic Development

6. Hon IP Wai-ming to ask: (Translation)

It has been reported that a deficit of $30 million in the expenditure on drugs was incurred by the New Territories East Cluster of the Hospital Authority ("HA") in 2009-2010. I have recently received complaints from members of the public that the New Territories East Cluster has reduced the quantity of drugs prescribed to patients and also switched to use generic drugs, causing people to worry that the quality of the medical services and drugs received by patients has no safeguard. In this connection, will the Government inform this Council whether it knows:

(a)	the overall balance of income and expenditure of various clusters under HA in the past five years, and their expenditure on drugs in 2010-2011;
(b)	the quantity of generic drugs purchased by the various clusters under HA and the percentage of such drugs in the total quantity of drugs in the past five years; whether HA has laid down guidelines on whether the clusters should purchase brand name drugs or generic drugs; if it has, of the details; if not, the reasons for that; and
(c)	how HA monitors the procurement of drugs and drug treatment on patients by its various clusters at present; whether HA knows if individual clusters have substantially reduced the quantity of drugs prescribed to patients because of deficits, and allows them to do so; if so, of the details?

Public Officer to reply : Secretary for Food and Health

*7. Hon CHAN Kam-lam to ask: (Translation)

It has been learnt that some banks in Hong Kong have exempted the elderly from certain service fees at present, but some others still collect additional fees from accounts with an average balance below a specified amount and persons using counter services, causing the disadvantaged groups, including Comprehensive Social Security Assistance ("CSSA") recipients etc., to be regularly charged these service fees despite their financial hardship. In this connection, will the Government inform this Council:

(a)	whether it knows which major banks in Hong Kong collect additional fees from low-balance accounts and persons using counter services at present; of the approximate amount of the fees collected (set out in table form); which of them exempt the elderly from such service fees, and which of them exempt "CSSA" recipients from such service fees;
(b)	whether the Government and the Hong Kong Monetary Authority had received any complaint from the public in the past three years about service fees collected by banks; if they had, of the number and outcome of the complaints, with a breakdown by year; and
(c)	whether the Financial Services and the Treasury Bureau and the Labour and Welfare Bureau had held any discussion or made any lobbying effort in the past three years with regard to urging banks to exempt "CSSA" recipients from service charges; if they had, of the progress and outcome of such work; if not, whether they will consider undertaking such work in the future?

Public Officer to reply : Secretary for Financial Services and the Treasury

*8. Hon TAM Yiu-chung to ask: (Translation)

Some members of the public have reflected to me that owing to the growing population in areas along the MTR West Rail Line in Tuen Mun, Yuen Long and Tsuen Wan in recent years, the demand for services of the West Rail Line and other modes of transport by local residents continues to increase. Yet, in reply to a question of a Member of this Council in January this year, the authorities said that the average loading of the West Rail Line was 58%, even at the busiest period of the morning peak hours, which showed that service was sufficient to cater for passenger demand, and as such, there was no need to increase the number of train cars at this stage. Regarding the service and safety of the West Rail Line, will the Government inform this Council:

(a)	whether it knows the average daily passenger trips and increases in the number of passengers of the West Rail Line respectively in the past three years;
(b)	if it knows whether or not the passenger trips in (a) have included the number of people who changed to the West Rail Line at various interchange stations; if so, of the way of computing the number; if not, the reasons for that, and whether the MTR Corporation Limited ("MTRCL") will review the computation of occupancy rates and include the number of people changing to the West Rail Line so as to truly reflect the actual passenger trips, and increase the number of train cars of the West Rail Line from the present seven cars to nine cars which is the original design standard with a view to ameliorating the crowded condition; if so, of the details; if not, the reasons for that;
(c)	whether, since October last year, it has looked into the reasons why cracks were found in a large number of bridge columns of the West Rail Line last year and taken follow-up actions on its safety and also requested MTRCL to review whether safety reasons have resulted in MTRCL not being able to increase the number of train cars of the West Rail Line to the original design standard of nine cars; if so, of the results; if not, the reason for that; and
(d)	if it knows whether in the near future MTRCL will increase the train frequency of the West Rail Line from the urban area to the New Territories during nighttime so as to ease the crowded condition; if so, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Transport and Housing

*9. Hon LAU Wong-fat to ask: (Translation)

Given that from time to time in recent years, there were cases of primary and secondary school teachers sexually assaulting their students, will the Government inform this Council:

(a)	whether the Education Bureau ("the Bureau") has provided primary and secondary schools with guidelines on preventing cases of teachers sexually assaulting students; if so, of the contents of the guidelines; if not, the reasons for that;
(b)	whether the Bureau has studied why from time to time in recent years, there were cases of teachers sexually assaulting their students; and
(c)	whether the authorities will consider adopting new measures to enhance the protection of students against the threat of being sexually assaulted by their teachers?

Public Officer to reply : Secretary for Education

*10. Ir Dr Hon Raymond HO to ask: (Translation)

The SAR Government set up the Hong Kong Jockey Club Institute of Chinese Medicine ("HKJCICM") in 2001 as a subsidiary of the Hong Kong Applied Science and Technology Research Institute Company Limited. The purpose is to promote, coordinate and strengthen scientific research in Chinese medicines in Hong Kong and facilitate the commercialization of research results in Chinese medicines, with a view to enhancing the competitiveness of the Chinese medicine industry in the market. HKJCICM obtained a donation of $500 million from the Hong Kong Jockey Club Charities Trust for funding its research projects and activities. The Government conducted a comprehensive review of HKJCICM in 2010. In this connection, will the Government inform this Council:

(a)	whether HKJCICM has received other donations or funding support apart from the aforesaid donation of $500 million; and
(b)	of the number of research projects funded by HKJCICM since its inception and the total amount of funding involved; whether such number and amount have met the expected level; if not, of the relevant details and the reasons for their falling short of the expected level?

Public Officer to reply : Secretary for Commerce and Economic Development

*11. Hon WONG Yuk-man to ask: (Translation)

According to government information, the Food and Environmental Hygiene Department ("FEHD") mounted 123 877 raids against hawkers in 2010, i.e. a daily average of about 340 operations. In recent years, conflicts between hawkers and Hawker Control Teams ("HCTs") have time and again been reported in the newspapers, and an enforcement action in Tai Hang on the 10th of April this year became the headlines of several newspapers. In this connection, will the Government inform this Council:

(a)	of the number of prosecutions instituted in 2010 by the staff of FEHD against hawkers' unlicensed or illegal hawking; and the number of retired elderly people among those people who were prosecuted;
(b)	among the 1 561 joint departmental operations against illegal hawking in 2010, of the number of cases involving "assault on police officers" and "assault on public officers";
(c)	of the number of hawkers who were repeatedly prosecuted by staff of FEHD in 2010; and whether there is any practice against hawkers which is similar to putting them "on a watch list";
(d)	of the number of goods and paraphernalia seized by HCTs in the past three years; whether the authorities have considered returning such goods and paraphernalia; if they have not, of the reasons for that;
(e)	of the justifications for the staff of FEHD to conduct sentinel surveillance beside hawkers and retailers; and
(f)	given that a man promoting telecommunication services sought my assistance a month or so ago claiming that he had repeatedly received penalty tickets from FEHD within a few days, and he suspected that the staff of FEHD had started to step up law enforcement in February and March this year to clear from the streets those people who promoted telecommunication services and distributed handbills, whether the authorities had issued any instruction on stepping up enforcement to the law enforcement staff between January and March this year?

Public Officer to reply : Secretary for Food and Health

*12. Hon LEUNG Yiu-chung to ask: (Translation)

Will the Government inform this Council of:

(a)	the number of people who had sought assistance from the Social Welfare Department in the past five years (from 2006-2007 to 2010-2011) because of problems relating to their divorces; and
(b)	among the people seeking assistance in (a), the respective numbers of those who had been recommended by the authorities to the Housing Department for "compassionate rehousing" and those who had been successfully rehoused, as well as the respective reasons for offering and not offering rehousing to them?

Public Officer to reply : Secretary for Labour and Welfare

*13. Hon WONG Kwok-hing to ask: (Translation)

It has been reported that "online group purchases" have become popular in Hong Kong in recent years and many members of the public hope to buy products or services at favourable prices through this means. Nevertheless, from time to time there are members of the public who find that the products or services do not match the specifications or descriptions only after they had made the payments for the purchases, thus resulting in many disputes. As group purchase web sites and related sales activities are currently not under statutory control, members of the public have nowhere to turn to for assistance when they need to make complaints. In this connection, will the Government inform this Council:

(a)	of the number of complaints about "online group purchases" received or dealt with by the Consumer Council and relevant law enforcement departments in each of the past five years; the reasons for and the amount of money involved in such complaints, and whether prosecution had been instituted in respect of those cases and the persons involved convicted;
(b)	given that "online group purchases" continue to thrive, whether there are legislation and measures in place to regulate and monitor these activities; if there are, according to the assessment of the authorities, of the effectiveness of such work last year; if there is not, whether the authorities will consider enacting new legislation or extending the coverage of the existing Trade Descriptions Ordinance (Cap. 362), and following the practices of overseas countries and establishing an online certification system, in order to regulate group purchase web sites and related sales activities; and
(c)	whether the authorities have any plan, measure or guideline to educate members of the public that when making "online group purchases", they must choose those web sites with good reputation and backing, find out how sellers made transactions in the past and read the transaction terms carefully, so as to safeguard their own interests; if they have, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Commerce and Economic Development

*14. Hon CHAN Hak-kan to ask: (Translation)

Some students who cross the boundary from the Mainland to attend schools in Hong Kong relayed to me earlier that the fare they have to pay with their Octopus cards to take the MTR Lok Ma Chau Spur Line to attend schools in the North District of Hong Kong is higher than the adult fare; they pointed out that the half-fare concession offered to students by the MTR Corporation Limited ("MTRCL") is not applicable to journeys via the cross-boundary spur lines, and they are unable to enjoy the HK$3 fare discount offered via the MTR "Fare Saver" machine installed at the Shenzhen Metro Fu Tian Kou'an Station as such discount is applicable to adult Octopus card holders only. In this connection, will the Government inform this Council whether it knows:

(a)	why the existing half-fare concession offered by MTRCL to students is not applicable to journeys via the cross-boundary spur lines;
(b)	the average number of students in each of the past three years who had to take the MTR cross-boundary spur lines from the Mainland to attend schools in Hong Kong; whether it will request MTRCL to review the existing arrangement of not offering fare concession to such students and make improvement shortly; if it will, of the details; if not, the reasons for that; and
(c)	why the fare discount offered via the MTR "Fare Saver" machine at the Shenzhen Metro Fu Tian Kou'an Station is applicable to adult Octopus card holders only; which factors MTRCL will take into account in setting up various "Fare Savers" and determining the fare discounts to be offered at present; whether the authorities will request MTRCL to offer such fare discounts to cross-boundary students, increase the number of stations with "Fare Savers" and raise the fare discount rates in response to the aggravating inflation; if so, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Transport and Housing

*15. Hon CHEUNG Hok-ming to ask: (Translation)

It has been reported that a landslide occurred earlier at a slope in Ho Man Tin although it did not rain that day, causing people to worry whether with the approach of the rainy season, the slope management and maintenance work carried out by the authorities is able to reduce the risk of landslides. In this connection, will the Government inform this Council:

(a)	of the number of existing man-made slopes and natural hillsides in Hong Kong, and whether the authorities have assessed the number of such slopes and hillsides with potential risk; of the plan and the time required for the authorities to deal with such dangerous slopes;
(b)	of the number of landslides which occurred on natural hillsides, man-made slopes and retaining walls within the purview of the Government in the past three years, as well as the resultant casualties;
(c)	of the number of landslides which occurred on privately-owned natural hillsides and man-made slopes in the past three years, as well as the resultant casualties;
(d)	of the number of Dangerous Hillside Orders served last year and, among them, the number of orders which have been fully complied with, the number of persons convicted of non-compliance with such orders and the main reasons for their non-compliance;
(e)	whether the authorities have plans to step up the inspection of both government and privately-owned slopes and enhance other relevant measures before the advent of the forthcoming rainy season so as to reduce the chance of landslides;
(f)	regarding enhancement of public awareness about the risk of landslides arising from man-made slopes and natural hillsides, of the specific details of the public education activities organized by the authorities at present; and
(g)	given that the Landslip Prevention and Mitigation Programme ("LPMitP") has been implemented by the authorities since 2010 to dovetail with the Extend Landslip Preventive Measures Programme which was completed at the end of 2010, with an aim to further reduce the risk of landslides, of the improvement made to LPMitP as compared with the previous programme; if no improvement has been made, of the reasons for that?

Public Officer to reply : Secretary for Development

*16. Hon LAU Kong-wah to ask: (Translation)

It has been reported that there are many elderly singletons in Hong Kong who do not have any relative or friend to take care of their after-death arrangements. Moreover, according to the figures of the Census and Statistics Department, in 2001 the number of persons aged 40 or above who had never married was about 179 000, and in 2009 the number had increased to about 294 000. Owing to the aggravating problem of ageing population in Hong Kong, coupled with the continuous increase in the number of singletons, the demand for services for undertaking the after-death arrangements ("after-death services") for elderly singletons will continue to increase. In this connection, will the Government inform this Council:

(a)	whether in the past three years the Government has compiled statistics on the monthly average number of elderly singletons in Hong Kong who needed after-death services as they did not have any relative or friend to take care of their after-death arrangements, and whether it has estimated the number of elderly singletons who will need such services in Hong Kong in the next decade; if it has, of the respective figures, and whether there is an upward trend in the demand for such services; if it has not compiled any statistics or made any estimation, whether it will consider following up to find out such service demand;
(b)	whether it knows the number of agencies in Hong Kong which are currently providing after-death services for elderly singletons; whether it has assessed if their services are sufficient to meet the demand;
(c)	whether the Government will consider allocating resources to provide such services or encouraging more voluntary agencies to provide such services for those elderly singletons in need; and
(d)	given that according to the information provided by the Government in its reply to my question on 5 May 2010, the sums of unclaimed estate transferred to the general revenue of the Government amounted to $7,980,000 in the 2009-2010 financial year, whether the authorities will use such sums to help those elderly singletons in need with their after-death arrangements?

Public Officer to reply : Secretary for Labour and Welfare

*17. Hon James TO to ask: (Translation)

It has been reported that, in response to the Minimum Wage Ordinance (Cap. 608) ("MWO") which came into force on 1 May this year, quite a number of private buildings will increase management fees and some will even have the fees increased significantly by 40% to 50%, in order to increase the wages of some security guards and cleansing workers of the buildings to meet the statutory minimum wage level and cope with other increases in expenditure due to inflation. In this connection, will the Government inform this Council:

(a)	given that the existing Building Management Ordinance (Cap. 344) provides that, when the management committee ("MC") of a private building is making an estimate for an increase in management fees, a general meeting of the owners to pass a resolution on such increase is required only if the amount of the management fees charged after the increase exceeds 150% of the preceding amount charged, of the reasons for formulating this stipulation; whether the authorities will consider conducting any review in this regard;
(b)	given that it has been reported that some private buildings need to increase their management fees in response to the implementation of the MWO, whether the authorities will, while assisting owners' corporations ("OCs") and owners in understanding their responsibility as employers under the Ordinance, also consider helping them to know how to avoid increasing management fees indiscriminately; if they will, of the kind of assistance to be offered;
(c)	whether the authorities have sought information from OCs about any increase in management fees since July last year and the rates of such increases; if they have, in respect of the cases that the authorities know, of the number of private buildings concerned, broken down by the increase (i.e. less than 15%, 15% to 24%, 25% to 34%, 35% to 49%, and 50% or above) in management fees; whether they know the number of OCs involved, and among them, the percentage of those which had convened general meetings of owners to pass resolutions on such increases, as well as the highest and lowest rates of such increases; if they do not know, whether they will consider collecting such information;
(d)	whether the authorities have advised and assisted OCs which had proposed to increase management fees in convening general meetings of owners as far as possible, to discuss the issue and pass resolutions thereon; if they have, of the number of OCs to which the authorities have given such advice since July last year, and among these OCs, the respective numbers of those which have accepted and rejected such advice; in case where the OC rejects such advice, whether the authorities will offer assistance to the owners in convening a general meeting on the increase of management fees to make the OC follow the resolution passed at the general meeting; if they will, of the assistance given; and
(e)	whether the authorities have, since July last year, attended any meeting convened by MCs of OCs to discuss matters concerning the adjustments of management fees; if they have, of the total number of the meetings attended and among them, the number of meetings at which more than half of the members were present and resolutions on increasing management fees were passed by a majority of the members present?

Public Officer to reply : Secretary for Home Affairs

*18. Hon Miriam LAU to ask: (Translation)

Some members of the logistics industry in Hong Kong have reflected that the development of the logistics industry hinges on an ample supply of land for storing and handling goods and providing value-added services; therefore, the industry has all along hoped that the Government can allocate more land for its development. Nevertheless, it has been reported that only two permanent logistics sites had been granted by the Government in the past 10 years by way of tendering and through which the sites were awarded to the highest bidders, which inevitably pushed up the prices of the sites and increased the costs. Besides, as the tenancy terms of sites leased out on a short-term tenancy basis ("STT sites") were too short (e.g. for three years, a quarter or a month), the industry cannot make long-term investments and developments. In this connection, will the Government inform this Council:

(a)	of the details (including the disposal dates, locations, areas, uses, selling prices or rents of the sites as well as the tenancy terms of the STTs and tenancy renewal arrangements) of the permanent logistics sites granted and STT sites leased out by the authorities in the past five years;
(b)	given that the Chief Executive announced in his 2009-2010 Policy Address that the Government had identified a number of permanent sites in the Kwai Tsing area, with a total site area of 29 hectares, for the development of a logistics cluster, and it is learnt that the first of such sites with an area of around 2.4 hectares was just granted at the end of last year, of the details and timetable of releasing the remaining sites;
(c)	given that some members of the industry pointed out the logistics industry entails substantial investment, making it difficult to recover the cost of investment within a short period of time, but the tenancy terms of the STTs of Government logistics sites are too short, thus hindering the long-term development of the industry, of the criteria adopted by the authorities in determining the tenancy terms of such sites; whether the authorities will consider providing logistics sites for small and medium-sized logistics companies, which do not have sufficient capital to bid for permanent logistics sites, to rent such sites on a long-term basis, so as to facilitate the development of small and medium-sized logistics companies; if they will, of the details; if not, the reasons for that; and
(d)	regarding the existing problem of the lack of logistics sites in Hong Kong, apart from the 29 hectares of permanent sites identified for such purpose, of any long-term policy and plans that the authorities have to increase the number of sites suitable for logistics uses (particularly low-cost sites) in order to promote the development of the logistics industry?

Public Officer to reply : Secretary for Transport and Housing

*19. Dr Hon LAM Tai-fai to ask: (Translation)

Regarding the taxation problems faced by Hong Kong enterprises engaged in processing trade operations in the course of upgrading and restructuring, will the Government inform this Council:

(a)	given that in reply to my question on 4 November 2009, the Secretary for Financial Services and the Treasury ("SFST") indicated that the practical difficulties in relaxing section 39E of the Inland Revenue Ordinance (Cap. 112) ("Section 39E") were that as the relevant machinery or plants were used by another enterprise outside Hong Kong, it would be difficult for the Inland Revenue Department ("IRD") to check the actual usage of the relevant machinery or plants, whether the authorities will, in order to resolve such difficulties, consider commissioning or establishing an organization or office on the Mainland which is dedicated to checking the actual usage of those machinery or plants that are used on the Mainland, and is authorized to issue certificates to IRD after verifying that the relevant enterprises have not engaged in any tax avoidance or other illegal activities, so that IRD may accordingly grant approval for the relevant Hong Kong enterprises to claim depreciation allowances in Hong Kong; if they will not, of the reasons for that;
(b)	given that Guangdong Province has always been a congregating place for Hong Kong-invested processing trade enterprises, and the Outline of the Plan for the Reform and Development of the Pearl River Delta (2008-2020) has also stipulated that Guangdong Province can fully exert a pioneering role of special economic zones in reforming and opening up the region by supporting the establishment of a national demonstration zone for the transformation and upgrade of processing trade enterprises, whether the authorities will suggest to the Guangdong provincial authorities that concerted efforts be made to implement the proposal in (a) on a trial basis, and that a co-operation platform and a communication and liaison mechanism be established on taxation matters for the purpose of deepening the co-operation between the taxation authorities of the two sides, enhancing information exchange and proactively supporting the development of commerce and trade in Guangdong and Hong Kong; if they will, of the details; if not, the reasons for that;
(c)	given that the Commerce and Economic Development Bureau ("CEDB") confirmed on 12 April this year that the views raised by the sector on the issue of depreciation allowances under Section 39E had been reflected to the Financial Services and the Treasury Bureau ("FSTB"), whether the authorities can make public the contents of the views as reflected by CEDB and the details of the response given by FSTB, so that the sector can ascertain that their aspirations have been accurately reflected; if they cannot, of the reasons for that;
(d)	given that in reply to my question on 6 April this year, the Government indicated that for those taxpayers who eventually withdrew the relevant objections or appeals, or the objections or appeals were determined against the taxpayers, the taxpayers concerned would be required to pay interest on the tax being held over in accordance with the "judgment debt rate" and that the aim was to protect tax revenue by preventing taxpayers from abusing the objection mechanism for the purpose of deferring tax payment, whether the authorities have taken into account the principle of fairness in formulating this mechanism to guard against abuse; if they have, whether the taxpayers whose objections or appeals have been determined in their favour can, as in the case of the Government, be compensated with interest calculated at "judgment debt rate";
(e)	given that in reply to my question on 13 April this year, SFST indicated that IRD would adhere to the "territorial source" principle in assessing the chargeable profits of the Hong Kong enterprises according to their actual processing trade operations on the Mainland rather than the nomenclature of such processing trade, whether the authorities had, in the past decade, permitted Hong Kong companies which were nominally "import processing" enterprises but were actually engaged in "contract processing" mode of operation to be subjected to taxation arrangements that are identical to those applicable to "contract processing" enterprises; if they had, of the annual figures; if they had not, the reasons for that;
(f)	given that SFST had not provided a direct response to my question on 13 April this year about whether an "import processing" enterprise which gives up its efforts of upgrading and restructuring and engages in "contract processing" will again be eligible for the depreciation allowances for machinery and plants and whether the 50:50 basis of tax apportionment will again be applicable to it, whether the authorities can give a clear explanation regarding the aforesaid scenario; if not, of the reasons for that;
(g)	whether IRD representatives had informed the Board of Review ("the Board") of the followings during the Board's hearing on the case numbered D61/08: the purposive approach recognized by the courts, the requirement of establishing the legislative intent in interpreting law under section 19 of the Interpretation and General Clauses Ordinance (Cap. 1), the Court of Final Appeal's comments on interpreting law made in its judgment on the case of Medical Council of Hong Kong v Chow Siu Shek David (2000), and the views on interpreting law held by the authorities in the case of CIR v Sawhney (HCIA1/2006); if the Board had not been informed of the above, of the reasons for that; if it had been so informed, whether the Board had considered the above;
(h)	given that SFST only repeatedly stated that he had already taken into consideration the views of the industrial and commercial sector, the accounting sector and tax experts on the issue of Section 39E, why SFST has not considered the independent legal advice offered by the legal sector or the Department of Justice ("DoJ");
(i)	given that both Article 64 of the Basic Law and chapter two of the Code for Principal Officials under the Accountability System stipulate that it is incumbent upon officials to answer questions raised by Members of the Legislative Council, and I asked SFST, at least on six occasions, whether he had sought advice from DoJ or other legal advisors on the issue of Section 39E, as well as requested the Government to make public the views of the industrial and commercial sector, the accounting sector, the tax experts, DoJ and other government departments and to explain why their views are not adequately justified and are against the principles of "territorial source" and "tax symmetry", but SFST still has not provided a direct response, whether the authorities can give a concrete reply to the above questions now;
(j)	given that in the past two years, in stating the reasons for not amending Section 39E, the Government had initially given the reasons that it was not necessary to take into consideration the legislative intent in interpreting law and that there were administrative difficulties, etc., yet subsequently it stated the reasons of adhering to the principles of "territorial source" and "tax symmetry" as well as transfer pricing, why the authorities have given inconsistent responses; given that according to the principles of "territorial source" and "tax symmetry", taxpayers can claim deductions for operational expenses incurred in or outside Hong Kong for production of chargeable profits in Hong Kong, why the machinery or plants used outside Hong Kong must be used by the taxpayers themselves in order to comply with the principles of "territorial source" and "tax symmetry"; regarding the molds and machines provided by traders for processors, although the molds and machines are used by the processors, the traders still need to pay for the depreciation costs, why the provision of depreciation allowances for the relevant molds and machines is against the principle of "tax symmetry";
(k)	given that the Government has pointed out that relaxing Section 39E will give rise to the issue of transfer pricing, whether the Government has made any assessment; if it has, whether evidence can be provided to substantiate that the transactions between Hong Kong enterprises and associated enterprises on the Mainland for the provision of machines and plants have given rise to the issue of transfer pricing; if no evidence can be provided, why such a conclusion has been arrived at; and
(l)	given that the Financial Secretary was willing to make amendments to his Budget in the light of the public's aspirations after his announcement of this year's Budget, whether SFST will follow suit and amend the taxation arrangements involving Section 39E, etc. in response to the sector's aspirations and in tandem with the initiatives of the mainland government in encouraging Hong Kong-invested enterprises to upgrade and transform; if SFST will not do so, of the reasons for that?

Public Officer to reply : Secretary for Financial Services and the Treasury

*20. Hon Emily LAU to ask: (Translation)

With regard to further education for students with visual impairment ("VI") and hearing impairment ("HI"), will the Executive Authorities inform this Council:

(a)	in the school year preceding the implementation of the whole school approach to integrated education in 1997, of the respective percentages of students with VI and HI in Hong Kong being admitted to Secondary Six ("S6") after completing Secondary Five, and those being admitted to programmes funded by the University Grants Committee ("UGC") after completing secondary education; in the past three years, with regard to those students with VI and HI who had attended ordinary schools under the integrated education approach, of the respective percentages of them being admitted to S6 and UGC-funded programmes; and how such percentages in 1996 and the past three years compare to the corresponding percentages for all students in Hong Kong in the respective years;
(b)	whether they have assessed if, after the implementation of integrated education, the difference in the percentages of further studies for students with VI and HI and other students has been narrowed; and
(c)	whether they know, in the United Kingdom, the United States, Canada and Taiwan, how the percentages of students with VI and HI who have progressed to universities compare to the corresponding percentages for all students; whether they have made reference to the resources being injected in these countries and areas to assist students with VI and HI in pursuing further studies, as well as the measures in place to effectively enhance the opportunities for further studies for these students; if they have, of the details?

Public Officer to reply : Secretary for Education

* For written reply

III. Bills

First Reading Lifts and Escalators Bill Second Reading (Debate to be adjourned)
Lifts and Escalators Bill	:	Secretary for Development

IV. Motions

Proposed resolution under the Mutual Legal Assistance in Criminal Matters Ordinance

Secretary for Security to move the following motion:

Resolved that the Mutual Legal Assistance in Criminal Matters (India) Order, made by the Chief Executive in Council on 15 February 2011, be approved.

(The Order is in the Appendix and was also issued on
25 February 2011 under LC Paper No. CB(3) 519/10-11)

V. Members' Motions

Proposed resolution under the Disability Discrimination Ordinance

Hon Cyd HO to move the following motion:

Resolved that in relation to the Revised Code of Practice on Employment under the Disability Discrimination Ordinance, published in the Gazette as Government Notice No. 2159 on 8 April 2011 and laid on the table of the Legislative Council on 13 April 2011, the period for amending the Revised Code of Practice referred to in section 65(5) of the Disability Discrimination Ordinance (Cap. 487) be extended under section 65(7) of that Ordinance to the meeting of 1 June 2011.

Proposed resolution under Article 75 of the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China

Hon TAM Yiu-chung to move the following motion:

Resolved that the Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region be amended as set out in the Schedule.

Schedule Amendments to Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region
1.	Rule 44 amended (Decision of Chair Final) Rule 44－
		Repeal "standing or select".
2.	Rule 45 amended (Order in Council and Committee) Rule 45(2)－
		(a)	Repeal "standing or select";
		(b)	English text－ Repeal "clerks of any committees" Substitute "clerk of any committee".

Schedule Amendment to Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region
1.	Rule 45 amended (Order in Council and Committee) Rule 45(1)－
		Repeal "standing or select".

Temporarily suspending the implementation of the Minimum Wage Ordinance

Hon Paul TSE to move the following motion:
(Translation)

That, as both employees and employers in many industries have complained bitterly about the Minimum Wage Ordinance, the general guidelines promulgated by the Government as well as the specific guidelines formulated for a number of industries which are mostly affected by the Ordinance are not yet able to allay public concern, and Members who supported the passage of the Minimum Wage Bill that day have recently been queried for failing to thoroughly scrutinize the relevant bill and underestimating the negative impact of the legislation, this Council urges the SAR Government to temporarily suspend the implementation of the Ordinance.

Amendments to the motion

(i)

Dr Hon Priscilla LEUNG to move the following amendment:
(Translation)

To delete "as" after "That," and substitute with "although the statutory minimum wage has come into force on 1 May this year, there are still many grey areas in how to correctly compute staff wages, so"; to add "worrying that waves of business closures and layoffs may be triggered, while" after "Minimum Wage Ordinance,"; to delete "yet" after "Ordinance are not"; to delete "Members who supported the passage of the Minimum Wage Bill that day have recently been queried for failing to thoroughly scrutinize the relevant bill and underestimating the negative impact of the legislation" after "public concern, and" and substitute with "the Government has not provided other assistance measures for implementing the minimum wage; given the possible negative impact arising from the implementation of the Ordinance, such as the closure of some small and medium enterprises and the loss of certain low-skilled and elementary posts"; and to delete "temporarily suspend the implementation of the Ordinance" immediately before the full stop and substitute with "study the provision of funding to set up a 'relief fund for implementing the minimum wage during its transitional period', so as to assist small and medium enterprises which are facing difficulties as a result of implementing the minimum wage, thereby reducing elementary workers' unemployment risks; besides, in response to soaring building management fees caused by the implementation of the minimum wage, which adds to the burden on property owners, the Government may conduct studies on offering support through various social welfare mechanisms to property owners with financial difficulties, particularly the elderly owners of old buildings, so as to minimize the negative impact arising from the implementation of the minimum wage".

(ii)

Hon Vincent FANG to move the following amendment:
(Translation)

To delete "as" after "That," and substitute with "after the passage of the Minimum Wage Ordinance by the Legislative Council last year, the preparatory work undertaken by the Government for implementing the legislation was chaotic, and the general guidelines for employers and employees and the reference guidelines for individual industries were only published one after another very shortly before the commencement of the legislation, so"; to delete ", the general guidelines promulgated by the Government as well as the specific guidelines formulated for a number of industries which are mostly affected by the Ordinance are not yet able to allay public concern, and Members who supported the passage of the Minimum Wage Bill that day have recently been queried for failing to thoroughly scrutinize the relevant bill and underestimating the negative impact of the legislation" after "Minimum Wage Ordinance" and substitute with "; in particular, the relevant guidelines are not only unable to allay public concerns about the implementation of the statutory minimum wage, but have also triggered controversies over employee benefits, such as whether employees are entitled to any wages for their meal breaks and rest days, etc., with the result that the negative impact of the legislation may be far more serious than expected; in this connection"; and to delete "to temporarily suspend the implementation of the Ordinance" immediately before the full stop and substitute with ": (a) to vigorously publicize that under the statutory minimum wage, employees' minimum wage should be $28 per hour times the number of actual working hours; (b) to step up promoting that there should be no retrogression of employees' remunerations when compared with their previous remunerations; (c) to encourage the community to respect the rule of law, refrain from making arbitrary moral judgment, and oppose labelling employers who cannot afford extra expenses as 'unscrupulous employers'; (d) to proactively and thoroughly clarify public skepticism or misunderstanding of the legislation; and (e) to introduce a half-year cushion period for the implementation of the legislation, during which mediation will first be conducted and there will not be immediate prosecution in the event of disputes, so that employers and employees will have sufficient time to adapt to the new legislation, so as to enable all sectors in the society, in the spirit of rationality, pragmatism and partnership, to bring forth a soft landing of the minimum wage to enable all employees in Hong Kong to truly benefit".

Public Officer to attend : Secretary for Labour and Welfare

Improving ancillary facilities at various crossings for the convenience of residents travelling between Guangdong and Hong Kong

Hon Jeffrey LAM to move the following motion:
(Translation)

That, since exchanges between Hong Kong and Mainland have become increasingly frequent, the utilization rates of various land boundary control points are rising year by year, with serious congestion in the flows of people and vehicles occurring frequently during peak periods, this Council urges the Administration to adopt the following improvement measures:

(a)	to conduct studies on the acutely uneven utilization rates of boundary control points in Hong Kong at present, put in place different incentive measures to divert cross-boundary travellers and balance the utilization rates of various crossings, and enhance the arrangements for crowd diversion on weekends and during public holidays, so as to shorten the clearance time for residents travelling between Guangdong and Hong Kong;
(b)	to expeditiously discuss with the Mainland Government improvement to the ancillary facilities near various boundary control points, so as to enhance the linkage between the boundary control points and the facilities such as roads and railway lines, etc., and make it more convenient for residents in both places to travel to and from boundary control points; and
(c)	to expedite the studies on the clearance arrangements at the new boundary control points under planning or construction and on the surrounding ancillary facilities, and having regard to demand, launch extension or improvement works, so as to ensure that the new boundary control points can achieve better diversion effect and alleviate congestion at other crossings.

Public Officer to attend : Secretary for Security

Clerk to the Legislative Council

Legislative Council

Agenda Wednesday 11 May 2011 at 11:00 am

Agenda

Wednesday 11 May 2011 at 11:00 am