Legislative Council of the Hong Kong Special Administrative Region

A 12/13-10

Legislative Council

Agenda

Wednesday 5 December 2012 at 11:00 am

I. Tabling of Papers

1.	No. 30	-	Emergency Relief Fund Annual Report by the Trustee for the year ending 31 March 2012
(to be presented by Secretary for Labour and Welfare)
2.	No. 31	-	Report on the administration of the Immigration Service Welfare Fund prepared by the Director of Immigration Incorporated in accordance with section 12(b) of the Immigration Service (Welfare Fund) Regulation
(to be presented by Secretary for Security)
3.	No. 32	-	Hong Kong Housing Authority Annual Report 2011/12
(to be presented by Secretary for Transport and Housing)
4.	No. 33	-	Hong Kong Housing Authority Financial Statements for the year ended 31 March 2012
(to be presented by Secretary for Transport and Housing)
5.	No. 34	-	The Government Minute in response to the 24th Annual Report of The Ombudsman 2012
(to be presented by the Chief Secretary for Administration, who will address the Council)
6.	No. 35	-	Ocean Park Hong Kong Annual Report 2011-2012
(to be presented by Secretary for Commerce and Economic Development)
7.	Report No. 6/12-13 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments
(to be presented by Hon Andrew LEUNG, Chairman of the House Committee)

II. Questions

1. Hon SIN Chung-kai to ask: (Translation)

Recently, the issue of indisposition of professional drivers causing traffic accidents has aroused public concern. In this connection, will the Government inform this Council:

(a)	whether it knows the requirements set by operators of various modes of public transport (including franchised and non-franchised buses, ferries, trains, the Peak Tram and trams) concerning the health conditions of their drivers upon appointment and while in service, including the arrangements for drivers to undergo regular medical examinations, the examination items they are required to pass, as well as the circumstances under which they are required to report on their health conditions;
(b)	of the trend in the numbers of applications for new issuance and renewal of driving licences for various classes of commercial vehicles, and the number of applications rejected as well as the reasons for the rejection; the number of traffic accidents caused by indisposition of drivers of commercial vehicles, and the resultant casualties, in the past three years; and
(c)	given the stipulation in the Road Traffic (Driving Licences) Regulations that an applicant aged 70 or above applying for issuance or renewal of a driving licence is required to produce a certificate issued by a registered medical practitioner certifying that he is medically fit to drive motor vehicles of the class for which he is applying, whether the Government will study lowering the age threshold for such requirement in respect of driving licences for commercial vehicles, as well as increasing the items in the medical examination that an applicant is required to pass?

Public Officer to reply : Secretary for Transport and Housing

2. Hon LEUNG Che-cheung to ask: (Translation)

Quite a number of the retired elderly people have relayed to me that they cannot benefit from most of the current welfare measures for the elderly as they have not reached the age of 65. Since they no longer have any income, their life after retirement is harder than before. Some of them wish to rejoin the workforce so as to improve their livelihood and lead a more gratifying life, but the Government provides no support for re-employment of the elderly. On the other hand, the Labour and Welfare Bureau and the Elderly Commission have, since 2007, implemented the Elder Academy Scheme to encourage lifelong learning and continued contribution to society among the elderly. Regarding the measures for promoting respect for the elderly and fostering a sense of worthiness among them, will the Government inform this Council:

(a)	given the different minimum age requirements for the target beneficiaries of various current elderly welfare measures (e.g. the age eligibility requirements for the concessionary rate of the admission fee for public swimming pools, the $2 transport fare concession scheme as well as the vaccination subsidy scheme for the elderly, and the elderly health care vouchers are 60, 65 and 70 respectively), of the factors taken into consideration by the Government in setting the minimum age requirements for the target beneficiaries of various elderly welfare measures; whether it will review the age requirements for those measures and standardize them at the age of 60; if it will, of the details; if not, the reasons for that;
(b)	whether it will formulate a policy for assisting the re-employment of the retired elderly aged 60 to 64, such as providing subsidies or tax concessions to private enterprises and public organizations employing the elderly; and
(c)	of the number of elderly people who participated in the Elder Academy in the past five years, and whether the number had reached the original target set by the authorities; of the measures taken by the Government to encourage lifelong learning and participation in volunteer work among the elderly?

Public Officer to reply : Secretary for Labour and Welfare

3. Dr Hon Elizabeth QUAT to ask: (Translation)

It has been reported that incidents of taxi drivers overcharging taxi fares and robbing passengers of their luggage have happened in Hong Kong one after another recently. In this connection, will the Government inform this Council, in the past three years:

(a)	of the respective numbers in each year of complaints received by the Government about taxi drivers allegedly overcharging taxi fares, tampering with taximeters (commonly known as "meters"), using non-compliant meters, refusing hire or selecting passengers, not taking the most direct route to the destination, as well as carrying at the same time a number of passengers who did not know each other and charging them individually (commonly known as "taxi pooling"); the number of cases reported to the Police involving taxi drivers robbing passengers of their luggage; and the percentage of tourists in the passengers involved in the aforesaid cases in each year;
(b)	of the respective numbers of cases of taxi drivers being prosecuted for the aforesaid offences and convicted, together with the respective highest penalties imposed by the court in respect of offences of overcharging taxi fares, refusing hire, meter tampering and using non-compliant meters; and whether prosecutions have been instituted against taxi-drivers for robbing passengers of their luggage; if prosecutions have been instituted, of the relevant charges and judgements; and
(c)	of the measures taken by the authorities to curb the aforesaid crimes committed by taxi drivers, so as to safeguard the reputation of Hong Kong's tourism industry; whether they will take more proactive measures in future to combat such crimes; if they will, of the specific details of such measures; if not, the reasons for that; whether the authorities will consider increasing penalties for offences such as overcharging taxi fares by taxi drivers, etc.; if not, of the reasons for that?

Public Officers to reply

Secretary for Transport and Housing
Secretary for Security

4. Hon WONG Kwok-kin to ask: (Translation)

The population of Kowloon East will surge with the completion of the various projects in the Kai Tak Development Area, and the problem of ageing population is increasingly serious. According to the statistics of the Hospital Authority ("HA"), the population of the Kowloon East Hospital Cluster ("KE Cluster") was 990 100 in 2011, and is estimated to rise to 1 097 000 in 2019, of which the proportion of people aged 65 or above will rise from the existing 13% to 15%. In this connection, will the Government inform this Council:

(a)	whether it knows the respective median waiting time for the Accident and Emergency services and the first appointments in specialist out-patient clinics in the past three years, as well as the general outpatient attendances in 2011-2012 in KE Cluster; as it has been reported that the quota for the general out-patient clinics in KE Cluster will increase next year, of the details, and list the additional quota, implementation time and number of additional posts by hospital;
(b)	as large-scale expansion works will be carried out in the United Christian Hospital ("UCH") in KE Cluster, whether the Government knows if HA has formulated measures to properly meet the healthcare service demand of residents in KE Cluster while the expansion works for UCH are in progress; if so, of the details; if not, the reasons for that; and
(c)	as the demand for healthcare services in Kowloon East will increase with the growing and ageing population, whether the Government has planned to reserve land in the Kai Tak Development Area for the construction of a general hospital; if it has, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Food and Health

5. Hon Dennis KWOK to ask: (Translation)

The Report of the Independent Review Committee for the Prevention and Handling of Potential Conflicts of Interests released in May this year put forward a number of recommendations, including the application of sections 3 and 8 of the Prevention of Bribery Ordinance ("POBO") to the Chief Executive ("CE"). The then Chief Executive-elect had publicly stated that he would seriously consider the various recommendations in the Report and would implement them expeditiously after he took office. However, the Government of the current term has taken office for more than five months but has not yet put forward any specific proposal or bill to amend POBO. In this connection, will the Government inform this Council whether it has decided to accept the recommendation in the Report to apply sections 3 and 8 of POBO to CE; if it has, when it will introduce such a bill to this Council; if not, of the reasons for that?

Public Officer to reply : The Chief Secretary for Administration

6. Hon Martin LIAO to ask: (Translation)

Under the Employee Choice Arrangement (commonly known as "Semi-portability") which has been implemented since last month, employees may transfer the accrued benefits derived from their contributions to the Mandatory Provident Fund ("MPF") schemes to the MPF schemes operated by the trustees they prefer. Some members of the public have relayed to me that they were perplexed and confused as there are many MPF schemes and types of funds available for their choices in the market. They worry that they may wrongly choose those MPF schemes with poor investment performances. However, apart from providing a comparison table on the fund expense ratios of various MPF schemes, the Mandatory Provident Fund Schemes Authority ("MPFA") has all along not provided information on the comparison of the investment performances of various MPF schemes. Instead, the Consumer Council published a research report in October this year regarding the fees and rates of return of MPF schemes. Moreover, some other members of the public have also relayed to me their wish for more investment options offered by MPF schemes, so as to increase the returns. In this connection, will the Government inform this Council:

(a)	whether it knows why MPFA has all along not provided information on the comparison of the investment performances of MPF schemes; whether MPFA will publish such kind of information on a regular basis, so as to assist employees and employers in making smart choices; whether it knows if MPFA will establish a monitoring mechanism to urge the trustees to improve the investment performances of the MPF schemes they manage, such as requiring trustees with continued poor investment performances to submit reports and issuing warnings to them, and considering cancellation of the registration of the trustees concerned if there is no improvement despite repeated warnings; if so, of the details; if not, the reasons for that;
(b)	given that some members of the public have pointed out that the non-MPF funds under quite a number of fund investment companies have good investment performances, but the MPF schemes managed by these companies as trustees, with similar fees charged, have poor investment performances, whether it knows if MPFA has conducted studies on the aforesaid situation; if no such study has been conducted, of the reasons for that; if such studies have been conducted, of the outcome, and if such a situation does exist, whether MPFA has requested the trustees concerned to give an account for that; and
(c)	whether the Government will consider reforming the MPF schemes to provide more portfolios and modes of investment for members of the public to choose, such as allowing members of the public to use their contributions as down payment for buying properties or for taking out medical insurance; if it will, of the details; if not, the reasons for that?

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

*7. Hon James TIEN to ask: (Translation)

According to the statistics published by the Hong Kong Monetary Authority in November this year, the total assets of the Exchange Fund ("EF") increased from about HK$570 billion in 1997 when the Hong Kong Special Administrative Region was established to about HK$2,650 billion at the end of September 2012. In this connection, will the Government inform this Council:

(a)	of the total assets, investment return and rate of return, the amount apportioned to the Government, placements by fiscal reserves as well as accumulated surplus of EF each year since 1997 (listed in table form); the sharing arrangements between the fiscal reserves and EF for investment returns since 1997, as well as the details of the changes in such arrangements;
(b)	as the statutory objective of EF is to maintain the stability and integrity of Hong Kong's monetary and financial systems, whether the authorities have assessed if the existing level of the total assets of EF is sufficient for fulfilling such statutory objective; if the assessment result is in the affirmative, of the details; if the assessment result is in the negative, the reasons for that;
(c)	whether it knows if overseas governments or international financial institutions have set benchmarks for the appropriate levels of foreign exchange assets; if they have, of such benchmarks and how these benchmarks compare with those of Hong Kong; if it does not know, whether it will conduct such a study;
(d)	whether it has assessed if it is feasible to maintain the total assets of EF at the current level and transfer all the investment returns earned each year to the Treasury for the purposes of improving people's livelihood and development; if the assessment result is in the affirmative, how the authorities will implement this measure; if the assessment result is in the negative, of the reasons for that;
(e)	whether it knows how the investment performance of EF compares with those of similar funds managed by overseas governmental institutions; whether the authorities will make reference to the models adopted by overseas sovereign wealth funds in managing their reserve assets, so as to secure higher investment income on the premise of ensuring adequate liquidity for maintaining monetary and financial stability; and
(f)	given that there are comments that the prices of the United States ("US") Treasuries will drop once the US interest rates increase, and EF's assets may thus suffer investment losses, how the authorities tackle such risks?

Public Officer to reply : The Financial Secretary

*8. Hon NG Leung-sing to ask: (Translation)

On 6 September this year, the State Council approved the Development Plan for Nansha New Area of Guangzhou ("the Plan"). Nansha New Area will be the sixth state-level new zone of China and the first one in southern China. It is strategically positioned as "a zone to demonstrate comprehensive cooperation amongst Guangdong, Hong Kong and Macau". The Plan aims at aligning the business environment of Nansha New Area with international standards, as well as those of Hong Kong and Macau, on all fronts by 2025. Moreover, as disclosed by the Governor of Guangdong Province on 10 October, "a coordination mechanism led by the National Development and Reform Commission and joined by various parties, such as relevant ministries and commissions of the State Council, the Hong Kong Special Administrative Region, the Macau Special Administrative Region, Guangdong Province and Guangzhou City, will be established to enhance coordination and supervision in implementing the Plan". In this connection, will the Government inform this Council:

(a)	whether it has assessed the impact of the development of Nansha New Area on the economy, finance and other aspects of Hong Kong; and
(b)	whether the government departments concerned have started the preparatory work for Hong Kong's participation in the aforesaid coordination mechanism; if they have, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Constitutional and Mainland Affairs

*9. Dr Hon Joseph LEE to ask: (Translation)

It has been reported recently by the media that the problem of bed bugs in Hong Kong has become increasingly serious, and bed bugs are found in public places, guesthouses and residential flats. The problem is particularly serious in districts where second class guesthouses and old public rental housing ("PRH") estates are concentrated. In this connection, will the Government inform this Council:

(a)	whether legislation is currently in place to require operators of guesthouses to ensure good hygiene standard in guesthouses so that their guests will not be bitten by bed bugs; if so, of the details; if not, whether relevant legislation will be formulated;
(b)	whether the Government, facing the increasingly serious problem of bed bugs, will eradicate bed bugs in public places and PRH estates which are infested with bed bugs, so as to eliminate such a nuisance to the public; if it will, of the details; if not, the reasons for that; and
(c)	whether it will establish a mechanism for monitoring the spread and distribution of bed bug infestation in the whole territory, assessing the risk of disease transmission by bed bugs and implementing measures to prevent and control bed bug infestation; if it will, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Food and Health

*10. Hon Abraham SHEK to ask: (Translation)

The Chief Executive announced in July this year that, from early 2013 onwards and before the new Home Ownership Scheme ("HOS") is launched, 5 000 eligible white form applicants for HOS each year would be allowed to purchase HOS flats on the HOS Secondary Market ("Secondary Market") without paying premium. It has been reported that since the announcement of this measure, the prices of HOS flats on the Secondary Market have risen continuously. For example, in August this year, an HOS flat of 21 years old in Tsing Yi was sold after payment of premium at a price almost 20% higher than that of a private residential flat of only nine years old in the same district. In this connection, will the Government inform this Council:

(a)	whether it has assessed why the prices of HOS flats on the Secondary Market have risen continuously and even surpassed the prices of private residential flats on the Secondary Market in the same district;
(b)	whether it has assessed if the current price levels of HOS flats on the Secondary Market, both for those with premium unpaid and those paid, are beyond the affordability of the public; if the assessment result is in the affirmative, how the Government upholds the policy objective of HOS as a form of subsidized housing; if the assessment result is in the negative, whether it has assessed at which level the prices of HOS flats on the Secondary Market would be beyond the affordability of the public; and
(c)	whether it will conduct a comprehensive review of the current measures for revitalizing the Secondary Market, including the consideration of requiring HOS flat owners to sell their flats only to sitting or prospective tenants of public housing, so as to uphold the policy objective of HOS being a form of subsidized housing and different from private residential flats, which may be transacted freely; if it will, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Transport and Housing

*11. Hon Frankie YICK to ask: (Translation)

Some members of the logistics industry have reflected to me that, in recent years, the industry has encountered difficulties in recruiting young people to work as container truck drivers. Even though some trade associations are willing to offer free training to drivers and assist them in taking the container truck driving licence tests on the Mainland and in Hong Kong, few people are attracted to join the trade. Coupled with the fact that many in-service drivers are retiring one after another, there is a shortage of container truck drivers. Such a shortage of drivers has been more acute since the implementation of the Statutory Minimum Wage, as some drivers have changed jobs to work in industries offering more stable income. It has been reported that the average age of the in-service drivers is over 50 and the mainland authorities have stipulated that driving licences of heavy vehicle drivers aged over 60 will not be renewed. As a result, if the shortage of drivers cannot be alleviated within the short term, the development of Hong Kong's logistics industry will be seriously stifled, resulting in a gradual shift of container freight businesses to nearby mainland ports (such as Shenzhen's Yantian and Shekou, etc.). Besides, the completion and commissioning of the Hong Kong-Zhuhai-Macao Bridge and the new boundary control point at Liantang/Heung Yuen Wai in the future will further extend the cargo hinterland, but Hong Kong may not be able to benefit from this development due to the shortage of cross-boundary container truck drivers. In this connection, will the Government inform this Council:

(a)	whether the authorities have conducted any study in the past three years on the manpower demand of the logistics industry; if so, of the details of the study, including the manpower shortage situation of the logistics industry and the assessment of the manpower demand in the coming five years, as well as the measures for increasing the number of container truck drivers to meet the needs of the logistics industry; if not, whether the authorities will consider conducting the study in order to formulate a long-term strategy for the development of manpower resources for the logistics industry;
(b)	of the number of people enrolled in the courses provided under the Skills Upgrading Scheme in the past three years for the in-service cross-boundary container truck drivers; whether it will consider opening up such courses to admit people not belonging to the industry, so as to attract more people to change their jobs to work as cross-boundary container truck drivers; if it will, of the details; if not, the reasons for that;
(c)	to alleviate the shortage of cross-boundary container truck drivers, whether the authorities will request the mainland authorities to relax the age threshold of 60 for renewal of heavy vehicle driving licences; if they will, of the details and progress; if not, the reasons for that; and
(d)	having regard to the increasing demand by the logistics industry in Hong Kong for cross-boundary container truck drivers, of the short, medium and long term measures that the authorities will take to tackle the manpower shortage problem of the logistics industry; whether the authorities will reconsider permitting the logistics industry to import mainland drivers through the Supplementary Labour Scheme to alleviate the manpower shortage problem; if they will, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Transport and Housing

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

At present, the Chairperson of the Equal Opportunities Commission ("EOC") serves as the Convenor of the Non-official Members of the Executive Council concurrently. There are comments that EOC's previous engagement in lawsuits with the Government in discharging its statutory duties reflects that there is a potential role conflict between the two aforesaid offices and it is therefore inappropriate for the two offices to be taken up by the same person. On the other hand, section 63(5) of the Sex Discrimination Ordinance (Cap. 480) stipulates that EOC's "Chairperson shall be appointed on a full-time basis", while section 6 of the Personal Data (Privacy) Ordinance (Cap. 486) stipulates that "The person appointed to be the [Privacy] Commissioner [for Personal Data] shall not, without the specific approval of the Chief Executive, hold any office of profit other than his office as Commissioner". In this connection, will the Government inform this Council:

(a)	of the justifications for enacting different legal requirements regarding the holding of other remunerated offices by the EOC Chairperson and the Privacy Commissioner for Personal Data; and
(b)	whether it will amend the relevant provisions in the Sex Discrimination Ordinance to align the restriction on the EOC Chairperson holding other remunerated offices with that for the Privacy Commissioner for Personal Data; if it will, of the legislative timetable; if not, the reasons for that?

Public Officer to reply : Secretary for Constitutional and Mainland Affairs

*13. Hon Ronny TONG to ask: (Translation)

The media have uncovered one after another cases of unauthorized building works ("UBWs") being found in the residences of the Chief Executive ("CE") and certain politically appointed officials. On the 23rd of last month, CE released a written statement to give an account of the problem of the UBWs in his mansion, and disclosed that he had found in October last year that the laundry room, part of the storeroom and the servant's room on the lower ground floor of House 4 had been expanded before he purchased the property, and the extension area was about 200 square feet. He demolished the extension parts in November last year and sealed it with a brick wall. Separately, in July last year, the media uncovered that there were UBWs in a residential unit owned by the Secretary for Commerce and Economic Development ("SCED") at MacDonnell Road. It has been reported recently that SCED had obtained the approval from the Buildings Department ("BD") for retaining part of the UBWs and converting it into a balcony under a "remedial proposal" without the requirement to demolish the UBWs and restore the unit. In this connection, will the Government inform this Council:

(a)	whether BD has adopted an enforcement policy of "remove first and submit building plans later" on UBWs (i.e the owners concerned are required to first demolish the UBWs and restore the unit before they may submit applications and plans to BD for alteration works) applicable to all; if so, why BD has handled the UBWs in the properties owned by CE and SCED in a way different from other UBWs; if there is no such enforcement policy, whether BD should, in accordance with the prevailing policy, require CE to first demolish the unauthorized area and restore the place before applying to seal the storeroom with a brick wall; whether BD will assess if CE has contravened the relevant requirements of the Buildings Ordinance (Cap. 123) by failing to handle the unauthorized area in accordance with the procedure;
(b)	whether the staff of BD had suspected in the site inspection of CE's mansion on 22 June this year that there might be an extension part behind the brick wall of the storeroom on the lower ground floor of House 4; if they had, why they have not taken any follow-up actions; if not, of the reasons for that;
(c)	given that it has been reported that SCED has proposed a "remedial proposal" in respect of the UBWs in his unit at MacDonnell Road, under which he may retain the UBWs and is not required to comply with the requirement of "remove first and submit building plans later", whether such kind of "remedial proposals" is applicable to all people; if so, of the criteria adopted for approving the "remedial proposals", including the types of UBWs to which the criteria apply; whether BD has made public the details of the criteria; if not, of the reasons for that; if the "remedial proposals" are not applicable to all people, the reasons for that;
(d)	whether BD will issue a removal order to an owner before he submits a "remedial proposal" in respect of UBWs; if not, of the reasons for that; if it will, in cases where the legitimate floor area of an unit has increased after the completion of the alteration works under the "remedial proposal" approved by BD, whether the removal order issued is still valid; if it is invalid, of the reasons for that; and
(e)	whether BD had already issued a removal order to SCED before he submitted to BD the "remedial proposal" in respect of the UBWs in his unit; if so, of the progress in enforcing the removal order and the follow-up actions taken by BD; of the legitimate floor area added to that unit upon the completion of works under the "remedial proposal" submitted by SCED, and whether the removal order is still valid; if not, of the reasons for that?

Public Officer to reply : Secretary for Development

*14. Hon Claudia MO to ask: (Translation)

It has been reported that in September this year, a huge window pane of an upper floor unit at The Arch, a luxury residential project in West Kowloon, cracked suddenly, and the glass shards falling from height injured a passer-by. According to the report, a total of over 30 pieces of window panes had fallen from units in that estate since 2007, posing threat to the safety of the residents in the area and passers-by, and such situation has aroused concerns. It has also been reported that the safety standards in respect of window panes formulated by the Buildings Department are far lower than those in certain European countries. Moreover, the fact that incidents of window panes of residential units cracking and falling occur from time to time reflects that the problem of "glass cancer" is serious, which poses threat to public safety. In this connection, will the Government inform this Council:

(a)	of the number of reports received by the authorities in the past 10 years on incidents of cracking or falling of window panes of major housing estates or buildings aged below 10 years and the resultant casualties, with a breakdown by age of the building and cause of the incidents; whether they have taken follow-up actions and instituted prosecutions; if they have, of the number of prosecutions instituted and other details; if not, the reasons for that;
(b)	whether it has reviewed the adequacy of the number of buildings selected each year for mandatory inspection of windows under the existing Mandatory Window Inspection Scheme ("MWIS"); as incidents involving the cracking and falling of window panes of newly built buildings have occurred from time to time, whether it will consider including private buildings aged below 10 years in MWIS; and
(c)	whether it has any plan to step up regulation of the design and construction of glass curtain walls and enact legislation stipulating that the contractors concerned will be held liable in case of accidents; if it has, of the details; if not, the reasons for that?

Public Officer to reply : Secretary for Development

*15. Hon Andrew LEUNG to ask: (Translation)

It is mentioned in the North East New Territories New Development Areas Planning and Engineering Study Stage 3 Public Engagement Digest that the North East New Territories New Development Areas ("NDAs") will provide about 54 000 housing flats to accommodate a population of 152 000, as well as providing more than 52 000 job opportunities. In this connection, will the Government inform this Council:

(a)	how the authorities will ensure that community facilities such as schools, hospitals, recreational facilities, sports grounds and libraries in the NDAs will commence service in tandem with the first population intake;
(b)	whether the authorities will consider establishing an independent police district for the NDAs; if they will, of the police manpower to be deployed; if not, the reasons for that; and
(c)	whether projection has been made on the number of residents and workers in the NDAs who will be subject to double taxation because of their cross-boundary employment; how the Government will help them alleviate their tax burden?

Public Officer to reply : Secretary for Development

*16. Dr Hon Fernando CHEUNG to ask: (Translation)

According to the Guidelines on Wage Payment Monitoring and Reimbursement of Contractor's and Sub-contractors' Contributions to the Mandatory Provident Fund for their Site Personnel ("the Guidelines") formulated by the Development Bureau, the Bureau will reimburse contractors of public works projects the mandatory contributions to the Mandatory Provident Fund ("MPF") paid by them and their sub-contractors for their site personnel. I have received a complaint from a member of the public alleging that such practice favours those contractors. In this connection, will the Government inform this Council:

(a)	when and why the Development Bureau formulated the Guidelines; whether it consulted the public during the formulation of the Guidelines;
(b)	as it is stipulated in paragraph 3.2.1 of the Guidelines that three categories of site personnel holding managerial/supervisory positions are exempted from providing copies of employment contracts as well as records of wage payment and MPF contributions to the Government, of the authorities' considerations or grounds for granting exemptions to such site personnel; in the absence of such information, how the authorities ensure that the contractors will not be reimbursed amounts exceeding those actually required;
(c)	apart from those contractors to which the Guidelines are applicable, whether the Government at present reimburses any other private organizations their MPF contributions for their employees; if so,
	(i)	of the implementation date of such practice;
	(ii)	of the business nature and number of these employers; and
	(iii)	of the amount of MPF contributions reimbursed in each of the past three years and the administrative costs involved; and
(d)	as some members of the public have pointed out that the practice of the Government reimbursing contractors of public works projects their MPF contributions is unfair to other employers, whether the Government will consider abolishing such practice; if it will, of the timeframe and plans; if not, the reasons for that?

Public Officer to reply : Secretary for Development

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

According to the information on the web page of the Department of Justice, the Secretary for Justice ("SJ") is the Protector of Charities. Some members of the public have pointed out that as such, SJ has the duty and statutory power to safeguard the interests of all charities. It has been learnt that the estate of a lady amounts to tens of billion Hong Kong dollars, and her will states, "[a]t my death, my entire estate shall be appropriated to the 'Chinachem Charitable Foundation Limited'". In this connection, will the Government inform this Council:

(a)	whether it knows the exact amount of the aforesaid estate;
(b)	of the role of SJ in the aforesaid case;
(c)	of the efforts made by the authorities to ensure that the aforesaid estate is properly conserved and appropriated to the Chinachem Charitable Foundation Limited ("Chinachem Foundation") for charitable purposes, and will not be misappropriated for other non-charitable purposes; whether they have assessed the effectiveness of such efforts, as well as if the aforesaid estate has been properly conserved so far and can be appropriated to the Chinachem Foundation for charitable purposes; if they have, of the outcome; and
(d)	whether it has assessed if the current management and operation of the Chinachem Foundation can ensure that the vast majority of resources of the Foundation will be used to promote charitable work and operated in a mode which is in the public interest; if it has, of the outcome; if not, whether it will conduct such an assessment and announce the outcome; whether the authorities will monitor the management and operation of the Chinachem Foundation in order to discharge the duty of SJ as the Protector of Charities?

Public Officer to reply : The Secretary for Justice

*18. Hon IP Kin-yuen to ask: (Translation)

Regarding the policy and statistics on admission of non-local students by the tertiary institutions funded by the University Grants Committee ("UGC") ("UGC-funded institutions"), will the Government inform this Council:

(a)	given that under the existing policy, UGC-funded institutions may admit non-local students to their degree programmes up to a level not exceeding 20% of the approved UGC-funded student number for such programmes, which comprises up to 4% within the UGC-funded number and up to 16% outside the UGC-funded number, whether it knows how UGC sets such percentages and how the UGC-funded institutions determine their actual numbers and percentages of non-local students admitted each year; whether there is any requirement on the ratio of local to non-local students admitted by the UGC-funded institutions each year for research master's and doctoral degree programmes;
(b)	whether it knows, in each of the past three years, the respective numbers and percentages of local students, mainland students and students from other places admitted by each UGC-funded institution, with a breakdown by the level of study (i.e. sub-degree, degree, taught master's degree as well as research master's degree and doctoral degree levels);
(c)	whether it knows, in the past three years, the respective number and percentage of non-local students over-enrolled in each UGC-funded institution; the reasons for the UGC-funded institutions' over-enrolment of non-local students; of the mechanism put in place by the authorities for monitoring the over-enrolment of non-local students by the UGC-funded institutions;
(d)	whether it knows, in the past three years, the respective numbers and percentages of local students, mainland students and students from other places admitted by each UGC-funded institution in teachers' training programmes, with a breakdown by the level of study; of the respective numbers of graduates of such programmes from the Mainland and other places who are staying or working in Hong Kong; and
(e)	of the respective numbers of places of full-time and part-time research master's and doctoral degree programmes in each UGC-funded institution; whether the authorities have any measure to ensure that local students applying for such programmes will be accorded priority in admission; whether it knows the respective numbers of graduates of such programmes from the Mainland and other places who are staying or working in Hong Kong?

Public Officer to reply : Secretary for Education

*19. Hon WU Chi-wai to ask: (Translation)

It has been reported that in September this year, a cleaning worker had his left leg run over and dragged by an electric baggage vehicle in the Baggage Hall at the basement of the passenger terminal building at the Hong Kong International Airport. It has also been reported that when the Baggage Hall is packed with baggage and the driveway is blocked during peak hours, electric baggage vehicles need to go in the opposite direction of the traffic from time to time, and the aforesaid accident may be related to such a situation. In this connection, will the Government inform this Council:

(a)	whether it knows the present condition of the injured cleaning worker; what assistance has been provided to him by the employer concerned, as well as whether the employer has reported the accident to the Labour Department within the specified period and made compensation to the injured employee in accordance with the Employees' Compensation Ordinance (Cap. 282); if it has, of the details; as it has been reported that the worker needed to have his left leg amputated to save his life, whether the Government will follow up the case and provide assistance to the victim and his family members; if it will, of the details; if not, the reasons for that;
(b)	whether the Government and the Airport Authority Hong Kong ("AA") have conducted investigation into the aforesaid incident; if they have, of the details and outcome;
(c)	of the number of traffic accidents which occurred within the airport area in each of the past five years, the resultant casualties, the number of relevant persons convicted, and whether it knows the details of the follow-up measures implemented by AA, together with a breakdown by the various parts (e.g. the Baggage Hall at the basement of the airport passenger terminal building, the restricted area and the car parks, etc.) of the airport;
(d)	which government departments are currently responsible for monitoring the traffic order at various parts of the airport and enforcing the relevant legislation; of the number of people who had been penalized for contravening traffic rules or regulations within the airport area in each of the past five years;
(e)	whether it knows the improvement measures implemented by AA in each of the past five years on the traffic order at various parts of the airport and enhancement of the baggage handling procedure; and
(f)	whether it knows the details of the assessments conducted regularly on traffic order and safety by AA on airport staff engaging in various types of jobs (e.g. driving, handling and carrying baggage, etc.), as well as the training and working guidelines provided to them at present in this respect?

Public Officer to reply : Secretary for Transport and Housing

*20. Hon Mrs Regina IP to ask: (Translation)

Under the policy implemented since 1 April 2011, eligible mainland "overage children" of Hong Kong residents, i.e. mainland residents who were under the age of 14 when their natural fathers or mothers obtained their first Hong Kong identity cards on or before 1 November 2001, may apply for One-Way Permits ("OWPs") for settlement in Hong Kong so as to reunion with their natural parents. The first batch of applications processed by the mainland authorities (first phase) were those of overage children whose fathers or mothers are Hong Kong residents who obtained their Hong Kong identity cards on or before 31 December 1979. Starting from 15 May 2012, the mainland authorities have been processing the second batch of applications (second phase) of overage children whose fathers or mothers are Hong Kong residents who obtained their Hong Kong identity cards on or before 31 December 1980. According to a projection based on the time gap of 13.5 months between the commencement of the two phases, those overage children whose fathers or mothers obtained their Hong Kong identity cards in 2000 must wait for at least 20 years, i.e. until 2032, to obtain their OWPs for settlement in Hong Kong. Since some of the applicants will be over 40 years old by then, they would encounter greater adaptation problems on arrival in Hong Kong. In this connection, will the Government inform this Council:

(a)	whether it knows the respective numbers of applications from overage children for settlement in Hong Kong received and approved by the mainland authorities in the first phase and the second phase so far;
(b)	whether it knows the average time required by the mainland authorities for processing an application and the estimated time required for completing the processing of all the aforesaid two batches of applications; when the third phase is expected to commence;
(c)	as the Security Bureau ("SB") has stated earlier that the mainland authorities are further refining the vetting and approval procedures with a view to shortening the vetting and approval time, whether it knows the details of the refinement; and
(d)	as SB indicated in 2011 that the consensus between SB and the mainland authorities was that applications from overage children would be processed by using the previous unused OWP quotas, so as to shorten the waiting time, of the average daily number of unused quotas in the existing daily OWP quota of 150 for Hong Kong; of the current accumulative number of unused OWP quotas and, among them, the percentage of those quotas which are planned to be used for processing applications from overage children?

Public Officer to reply : Secretary for Security

* For written reply

III. Motions

Proposed resolution under section 34(2) of the Interpretation and General Clauses Ordinance

The Secretary for Justice to move the motion in the Appendix.

(The motion was also issued on 30 November 2012
under LC Paper No. CB(3) 195/12-13)

IV. Members' Motions

Proposed resolution under the Legislative Council (Powers and Privileges) Ordinance

Hon Albert CHAN to move the following motion:

That this Council appoints a select committee to inquire into the discontinuation of sound broadcasting service by Digital Broadcasting Corporation Hong Kong Limited and related issues; and that in the performance of its duties the committee be authorized under section 9(2) of the Legislative Council (Powers and Privileges) Ordinance (Cap. 382) to exercise the powers conferred by section 9(1) of that Ordinance.

Public Officer to attend : Secretary for Commerce and Economic Development

Executive Council as gate-keeper for MTR fares

Hon Michael TIEN to move the following motion: (Translation)

That the net profit of the MTR Corporation Limited ('MTRCL') in 2011 reached $14,716 million, but as computed under the formula of the Fare Adjustment Mechanism ('FAM') (i.e. the mechanism that allows fares to go upwards and downwards), MTR fares may be increased by 5.4%, rendering the burden of rail transport expenses on grass-root people heavier; at present, the community generally considers the formula not comprehensive enough and that the Government should, during the present review of MTRCL's FAM, include in the formula components that can better reflect public affordability and profit level, rental income and service performance (including the level of performance in handling incidents), etc. of MTRCL; however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components; there is also a proposal in society of using the dividends distributed by MTRCL to set up a fare stabilization fund to offset the extent of fare increases, yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle; in this connection, this Council urges the Government, being the major shareholder of MTRCL, to:

(a)	maintain the existing formula of FAM, and submit the fare adjustment rates computed under the formula to the Executive Council for vetting, with the Executive Council having the power to make final adjustments, subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%; such an arrangement enables the Executive Council to serve as the final gate-keeper on MTR fares and MTRCL and its shareholders to have a basis for projecting the profit of MTRCL;
(b)	require MTRCL to strictly implement the 'eight-minute notification system' to ensure that MTRCL can speedily notify the public in case of incidents, and the Executive Council should take account of MTRCL's performance in this regard when vetting MTRCL fare adjustment rates; and
(c)	require MTRCL to introduce reasonably-priced territory-wide monthly tickets to benefit all passengers, and utilize this as an incentive to promote working across districts, with a view to alleviating workers' financial burden.
Amendments to the motion
(i)	Dr Hon KWOK Ka-ki to move the following amendment: (Translation) To delete "the net profit of the MTR Corporation Limited ('MTRCL') in 2011 reached $14,716 million, but" after "That" and substitute with "the MTR Corporation Limited and the Kowloon-Canton Railway Corporation were merged on 2 December 2007 to form the existing MTR Corporation Limited ('MTRCL'); MTRCL's current market value is around $150 billion, with the Hong Kong Government holding 76.8% of its shares, and MTRCL is the only commercially-operated public railway enterprise in Hong Kong; after the merger, MTR fares are adjusted according to the mechanism allowing fares to go upwards and downwards, under which automatic adjustments are made in accordance with the Composite Consumer Price Index ('CCPI') and the Nominal Wage Index (Transportation Section), with the Government having no power to vet and approve fares; given that CCPI has kept rising, and the net profits of MTRCL in the three consecutive years are $9,639 million in 2009, $12,059 million in 2010 and $14,716 million in 2011 respectively, and"; to delete "5.4%," after "increased by" and substitute with "2.05%, 2.2% and 5.4% respectively, with a cumulative increase of nearly 10% within three years,"; to add "station retail" after "profit level,"; to delete "and" after "rental income" and substitute with ","; to delete "etc. of MTRCL; however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components" after "(including the level of performance in handling incidents)," and substitute with "and revenues from above-station property development, property management services, renting of facilities in shopping arcades and advertisements along the rail lines, etc. of MTRCL as well as the revenues from other companies in which MTRCL holds equity interest (including the revenues of the Octopus Holdings Limited and other railway subsidiaries outside Hong Kong)"; to delete ", yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle" after "extent of fare increases"; to delete "maintain the existing formula of FAM, and" after "(a)"; to add "and the Legislative Council" after "the formula to the Executive Council"; to add "and the Legislative Council" after "vetting, with the Executive Council"; to delete ", subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%" after "final adjustments"; to add "and the Legislative Council" after "enables the Executive Council"; to add "(b) allocate the dividend income received by MTRCL to set up a fare stabilization fund to offset the extent of MTR fare increases year after year, with a view to keeping public transport expenses at a level acceptable to the public;" after "profit of MTRCL;"; to delete the original "(b)" and substitute with "(c)"; to delete "and" after "MTRCL fare adjustment rates;"; to delete the original "(c)" and substitute with "(d)"; and to add "; and (e) buy back all the remaining 23.2% shares of MTRCL to completely take back MTRCL, so that the Executive Council and the Legislative Council may comprehensively monitor the entire operation of MTRCL and have the autonomy to control fares" immediately before the full stop.
(ii)	Hon LEE Cheuk-yan to move the following amendment: (Translation) To delete "the net profit of the MTR Corporation Limited ('MTRCL') in 2011 reached $14,716 million, but as computed under the formula of the Fare Adjustment Mechanism ('FAM') (i.e. the mechanism that allows fares to go upwards and downwards), MTR fares may be increased by 5.4%, rendering the burden of rail transport expenses on grass-root people heavier; at present, the community generally considers the formula not comprehensive enough and that the Government should, during the present review of MTRCL's FAM, include in the formula components that can better reflect public affordability and profit level, rental income and service performance (including the level of performance in handling incidents), etc. of MTRCL; however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components; there is also a proposal in society of using the dividends distributed by MTRCL to set up a fare stabilization fund to offset the extent of fare increases, yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle; in this connection," after "That"; to delete "MTRCL" after "major shareholder of" and substitute with "the MTR Corporation Limited ('MTRCL')"; to delete "maintain the existing formula of FAM, and submit the fare adjustment rates computed under the formula to the Executive Council for vetting, with the Executive Council having the power to make final adjustments, subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%; such an arrangement enables the Executive Council to serve as the final gate-keeper on MTR fares and MTRCL and its shareholders to have a basis for projecting the profit of MTRCL;" after "(a)" and substitute with "revise the existing formula of the Fare Adjustment Mechanism by changing 'Overall Fare Adjustment Rate' to 'Ceiling of Overall Fare Adjustment Rate', and adding the Train Service Disruption Factor, i.e. revising the formula as follows: 'Ceiling of Overall Fare Adjustment Rate ≦ (0.5 x Change in Composite Consumer Price Index) + (0.5 x Nominal Wage Index (Transportation Section)) － Productivity Factor － Train Service Disruption Factor', with the Train Service Disruption Factor referring to the fare reduction rate determined by the number of train service delay cases caused by mechanical failure or human factors with a duration of 20 minutes or more in the preceding one year; (b) amend the Mass Transit Railway Ordinance to require that MTR fare adjustments must take the form of subsidiary legislation subject to the Legislative Council's scrutiny and approval under the negative vetting procedure; MTRCL's fare adjustment application submitted to the Government every year must be based on the aforesaid formula, and the Chief Executive in Council may determine the fare adjustment rates after considering MTRCL's fare adjustment justifications, profit level, and train service performance as well as public affordability, and submit the relevant subsidiary legislation to the Legislative Council; (c) amend the Mass Transit Railway Ordinance to require MTRCL to allocate a certain proportion of its property development returns for setting up a rail fare stabilization fund to stabilize MTR fares, so as to alleviate the burden of members of the public;"; to delete the original "(b)" and substitute with "(d)"; to delete "vetting" after "in this regard when" and substitute with "determining"; and to delete the original "(c)" and substitute with "(e)".
(iii)	Hon Frederick FUNG to move the following amendment: (Translation) To add ", in which the Hong Kong Government owns some 76% equity interest," after "('MTRCL')"; to add "with the dividends received by the Hong Kong Government amounting to $3.3 billion," after "$14,716 million,"; to add "which is equivalent to an extra fare income of about $600 million," after "increased by 5.4%,"; to delete "and that" after "not comprehensive enough" and substitute with ","; to delete ", during the present" after "the Government should" and substitute with "therefore conduct an in-depth and thorough"; to delete ", include in the formula components that can better reflect public affordability and profit level, rental income and service performance (including the level of performance in handling incidents), etc. of MTRCL; however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components; there is also a proposal in society of using the dividends distributed by MTRCL to set up a fare stabilization fund to offset the extent of fare increases, yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle" after "MTRCL's FAM"; to delete "maintain" after "(a)" and substitute with "alter"; to add "to include components such as public affordability, MTRCL's profit level, its incomes from above-station property, rental and overseas investment, as well as its operation efficiency and service performance, etc., so as to prevent MTRCL from increasing its fares wantonly while making substantial profits; use the dividends received by the Government to offset certain extent of fare increases; establish a fare stabilization fund to mitigate the impact of soaring fares on the public" after "formula of FAM"; to add "and the Legislative Council" after "formula to the Executive Council"; to add "and the Legislative Council" after "vetting, with the Executive Council"; to delete ", subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%" after "final adjustments"; to add "and the Legislative Council" after "enables the Executive Council"; to add "and the Legislative Council" after "and the Executive Council"; to add "revamp its railway fare structures," after "(c) require MTRCL to"; to add ", offer more cross-rail line and same-rail line monthly ticket schemes as well as concessions for MTR interchange to other means of transport, and set up more MTR Fare Savers, etc." after "territory-wide monthly tickets"; and to delete "this as an incentive" after "and utilize" and substitute with "these as incentives".
(iv)	Hon WU Chi-wai to move the following amendment: (Translation) To add ", given that" after "That"; to delete "however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components; there is also a proposal in society of using the dividends distributed by MTRCL to set up a fare stabilization fund to offset the extent of fare increases, yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle;" after "etc. of MTRCL;"; to delete "maintain" after "(a)" and substitute with "perfect"; to delete "submit the fare adjustment rates computed under the formula" after "formula of FAM, and" and substitute with "include key factors such as public acceptance and affordability, MTRCL's incident occurrence figures and its profit level, etc. in the formula for determining fare adjustment rates, so as to maintain MTRCL fares at a reasonable level and reflect MTRCL's service quality; and at the same time, study the feasibility of submitting MTRCL's fare adjustment rates"; to delete ", subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%; such an arrangement enables the Executive Council to serve as the final gate-keeper on MTR fares and MTRCL and its shareholders to have a basis for projecting the profit of MTRCL" after "final adjustments" and substitute with "and serving as the final gate-keeper"; to delete "the Executive Council should" after "in case of incidents, and"; to delete "vetting MTRCL" after "in this regard when" and substitute with "determining its"; to delete "and" before "(c)"; to add "as well as weekly and daily tickets applicable to all its rail lines" after "territory-wide monthly tickets"; and to add "; and (d) focusing on the dividends received by the Government from MTRCL, or the profits received by public transport operators from their 'non-transport business', such as the annual property proceeds of MTRCL, allocate a certain percentage of such dividends or profits to establish a fare stabilization fund to stabilize fares" immediately before the full stop.
(v)	Hon TANG Ka-piu to move the following amendment: (Translation) To delete "the net profit of the MTR Corporation Limited ('MTRCL') in 2011 reached $14,716 million, but as computed under the formula of the Fare Adjustment Mechanism ('FAM') (i.e. the mechanism that allows fares to go upwards and downwards), MTR fares may be increased by 5.4%" after "That"; to add "since the merger of the MTR Corporation Limited and the Kowloon-Canton Railway Corporation, the existing MTR Corporation Limited ('MTRCL') has been occupying a monopolistic position in public transport, and with its operations revenue and property proceeds, MTRCL makes huge profits year after year; however, the existing Fare Adjustment Mechanism ('FAM') (i.e. the mechanism that allows fares to go upwards and downwards) seriously underestimates MTRCL's productivity after the merger, and fails to take account of its profit level and public affordability, resulting in MTRCL increasing its fares year after year while making huge profits; the extent of fare increases in the past three years even exceeded the inflation rates, becoming one of the sources for pushing up inflation and" before "rendering the burden"; to add ", especially residents in remote districts such as Tung Chung, Yuen Long, Tin Shui Wai, Tuen Mun and North District" after "grass-root people heavier"; to delete "the formula not comprehensive enough and that" after "community generally considers" and substitute with "that the existing formula of FAM only pays regard to MTRCL shareholders' interests and disregards the public interest, so"; to delete "MTRCL's FAM" after "present review of" and substitute with "the mechanism"; to delete "; however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components;" after "etc. of MTRCL" and substitute with "and at the same time, extensively incorporate the views of the community, formulate an FAM that accords priority to public interest, and before implementing a new FAM, MTRCL should freeze its existing fares and continue its fare concession measures; in addition, given that"; to delete "yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle" after "extent of fare increases," and substitute with "the Government should actively consider and decisively implement the relevant proposal"; to add "(a) consider amending section 8 of the Mass Transit Railway Ordinance (Cap. 556) to allow the Chief Executive to appoint more than three persons to be additional directors of MTRCL, so as to monitor MTRCL's various considerations on and justifications for its proposal of fare adjustments, and assess whether the adjustment rates are in the public interest and acceptable to the community, etc.;" after "major shareholder of MTRCL, to:"; to delete the original "(a)" and substitute with "(b)"; to delete "maintain the existing formula of FAM" before ", and submit" and substitute with "expeditiously study and implement the formula of a new FAM"; to delete ", subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%; such an arrangement enables the Executive Council" after "final adjustments" and substitute with "and"; to delete "and MTRCL and its shareholders to have a basis for projecting the profit of MTRCL" after "gate-keeper on MTR fares"; to delete the original "(b)" and substitute with "(c)"; to add "strengthen human resources and intensify staff training to maintain its operational standards and a stable workforce, so as to" before "strictly implement"; to add "also" after "Executive Council should"; to delete "this regard" after "MTRCL's performance in" and substitute with "various areas such as handling of incidents, whether operational staff are sufficient, and whether staff members possess adequate experience, etc."; to delete "and" after "MTRCL fare adjustment rates;"; to delete the original "(c)" and substitute with "(d)"; to add "and flexible district monthly tickets; review the concession modes of 'Ride 10 Get 1 Free' or 'Ride $100 for Free Ticket', and indefinitely implement same day return fare concessions; at railway stations in remote new towns such as North District and Tung Chung, offer more free MTR feeder bus services as interchange; urge MTRCL to extensively install MTR Fare Savers in various districts; allow persons with disabilities under the age of 12 and people with loss of one limb to equally enjoy the $2 fare concession and prospective retirees aged between 60 and 64 to enjoy a half fare concession, etc." after "territory-wide monthly tickets"; to delete "this as an incentive" after "and utilize" and substitute with "these as incentives"; and to delete "alleviating workers' financial burden" immediately before the full stop and substitute with "reducing workers' transport expenses; (e) complete the installation of platform screen doors at all railway stations within five years, and immediately stop the collection of an additional $0.1 per MTR journey from passengers using the Octopus Cards; (f) when vetting and approving MTRCL's fare adjustment applications, include the progress of MTRCL's improvement of station facilities, such as washrooms, baby-sitting rooms, water dispensers and other barrier-free facilities, etc., as one of the considerations, so as to drive MTRCL to comprehensively improve station facilities for passengers' convenience; and (g) care about the problem of compensation for persons injured in accidents within the precincts of MTR, use the number of accidents and casualties involving MTR as an indicator of service level assessment, and adopt it as one of the considerations for fare adjustments, so as to motivate MTRCL to follow the Light Rail's practice of injecting capital into the Traffic Accident Victims Assistance Fund, so that persons injured in MTR accidents also receive reasonable protection".
(vi)	Hon Frankie YICK to move the following amendment: (Translation) To add ", given that" after "That"; to add "and have increased for three consecutive years" after "increased by 5.4%"; to delete "dividends distributed by" after "of using the" and substitute with "profits of"; to delete ", yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle" after "extent of fare increases"; to delete "submit the fare adjustment rates computed under the formula to the Executive Council for vetting, with the Executive Council having the power to make final adjustments, subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%; such an arrangement enables the Executive Council to serve as the final gate-keeper on MTR fares and MTRCL and its shareholders to have a basis for projecting the profit of MTRCL" after "formula of FAM, and" and substitute with "implement an 'MTR profit-sharing scheme' by returning to members of the public 5% of the profit from underlying businesses attributable to shareholders, so as to offset the extent of fare increases; if any profit-sharing proceeds remain after fully offsetting the extent of fare increases, the balance should be retained under the scheme for accrual and use for lowering the rates of fare increases in the future; if the profit-sharing proceeds cannot fully offset the extent of fare increases in the relevant year, fare adjustments in respect of the shortfall should then be made under FAM"; to delete "the Executive Council should" after "in case of incidents, and"; to delete "performance in this regard when vetting MTRCL fare adjustment rates; and" after "take account of MTRCL's" and substitute with "service performance when computing fare increase rates;"; and to add "; and (d) include the progress of installing additional platform screen doors or automatic platform gates at all stations as one of the considerations for fare adjustment, so as to enhance the protection of passenger safety" immediately before the full stop.
(vii)	Hon CHAN Kam-lam to move the following amendment: (Translation) To add ", given that" after "That"; to delete "however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components; there is also a proposal in society of using the dividends distributed by MTRCL to set up a fare stabilization fund to offset the extent of fare increases, yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle;" after "etc. of MTRCL;"; to delete "maintain" after "(a)" and substitute with "conduct a study on amending"; to add ", consider including factors such as public affordability, MTRCL's profit level and its overall rail service performance, etc. in the formula" after "formula of FAM"; to delete ", subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%" after "final adjustments"; to add "(b) set up a fare stabilization fund to reduce fare increase pressure;" after "profit of MTRCL;"; to delete the original "(b)" and substitute with "(c)"; to delete "and" after "MTRCL fare adjustment rates;"; to delete the original "(c)" and substitute with "(d)"; to add "reduce cross-boundary rail fares to reasonable levels; abolish the existing time limit for accumulating the number of journeys required under the 'Ride 10 Get 1 Free' fare concession scheme; co-operate with other transport operators to offer more interchange concessions;" before "introduce reasonably-priced"; and to add "; and (e) improve station facilities, including installing platform screen doors for all rail lines, providing washrooms for all rail lines, and installing more barrier-free facilities, etc., and ensure that the expenses on the facilities concerned will not constitute a cause for MTR fare increases" immediately before the full stop.
(viii)	Hon Gary FAN to move the following amendment: (Translation) To delete "the net profit of the MTR Corporation Limited ('MTRCL') in 2011 reached $14,716 million, but as computed under the formula of the Fare Adjustment Mechanism ('FAM') (i.e. the mechanism that allows fares to go upwards and downwards), MTR fares may be increased by 5.4%, rendering the burden of rail transport expenses on grass-root people heavier;" after "That" and substitute with ", since the merger of the MTR Corporation Limited and the Kowloon-Canton Railway Corporation, the Government has changed to adopt the formula of the Fare Adjustment Mechanism ('FAM') (i.e. the mechanism that allows fares to go upwards and downwards) to determine the fare adjustment rates of the existing MTR Corporation Limited ('MTRCL'); however, after the adoption of FAM, MTRCL has drastically increased its fares for three consecutive years (i.e. from 2010 to 2012) while making huge profits, rendering the burden of transport expenses on members of the public heavy; in the past, MTRCL's development completely relied on the Government's preferential policy which provides the right to develop above-station properties with no premium payment; the original intent of the policy is to make financial arrangements to facilitate MTRCL's financing for rail network expansion, but now the policy has resulted in the emergence of MTRCL hegemony; therefore,"; to delete "rental income and" after "and profit level," and substitute with "real estate income,"; to add "and deployment of public resources" after "(including the level of performance in handling incidents)"; to delete "however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components; there is also a proposal in society of using the dividends distributed by MTRCL to set up a fare stabilization fund to offset the extent of fare increases, yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle" after "etc. of MTRCL;" and substitute with "there are also strong voices in society demanding the establishment of an MTR fare stabilization fund to stabilize fares"; to delete "maintain" after "(a)" and substitute with "alter"; to add "and the Legislative Council" after "formula to the Executive Council"; to add "and the Legislative Council" after "vetting, with the Executive Council"; to delete ", subject to the condition that the difference between such adjustment rates and the adjustment rates computed under the formula must not exceed 30%" after "final adjustments"; to add "and the Legislative Council" after "enables the Executive Council"; to delete "MTRCL and its shareholders to have a basis for projecting the profit of MTRCL" after "gate-keeper on MTR fares and" and substitute with "to ensure that MTRCL discharges its social responsibility while making reasonable profits"; to add "and the Legislative Council" after "incidents, and the Executive Council"; to delete "; and" after "MTRCL fare adjustment rates" and substitute with ", and consider reducing the extent of fare increases based on the number of incidents;"; and to add "; and (d) set up an MTR fare stabilization fund, and utilize MTRCL's non-rail revenues, such as revenues from advertisements, property development and rentals of shops, etc., to offset the pressure to increase fares" immediately before the full stop.
(ix)	Hon Kenneth LEUNG to move the following amendment: (Translation) To delete "however, the re-establishment of a formula is bound to be protracted, time-consuming and fruitless because the various social sectors can hardly reach a consensus on the definitions, assessment methods and respective weightings of the aforesaid components;" after "etc. of MTRCL;"; to delete ", yet both the Government and academics consider that this 'dedicated-funds-for-dedicated-uses' practice deviates from the Government's public finance principle" after "extent of fare increases"; and to delete "maintain the existing formula of FAM, and" after "(a)" and substitute with "comprehensively review the existing FAM of MTRCL, include quantifiable values or indicators in the formula to increase the weightings of factors such as inflation rates, public affordability and profit level of MTRCL's overall business, etc.; and require MTRCL not to increase its fares if the profits of its overall business exceed a certain ceiling; and at the same time, require MTRCL to".

Public Officer to attend : Secretary for Transport and Housing

Supporting the development of the securities industry

Hon Christopher CHEUNG to move the following motion: (Translation)

That, given the great contribution of local securities firms to Hong Kong's financial market and their unrivalled importance in safeguarding Hong Kong's financial safety and supporting its financial development, this Council urges the Government to adopt specific measures to support the development of the local securities industry.

Amendments to the motion
(i)	Hon WONG Kwok-hing to move the following amendment: (Translation) To delete "given the great contribution of" after "That," and substitute with "while Hong Kong is one of the world's important financial centres,"; to delete "to Hong Kong's financial market and their" after "local securities firms" and substitute with "have contributed greatly to the Hong Kong market with"; to delete "," after "financial development" and substitute with ";"; and to add ", and attach importance to the views of local small and medium securities firms and employees in the industry, including: (a) to review and perfect the consultation procedure and mechanism of the Hong Kong Exchanges and Clearing Limited ('HKEx'), so that local securities dealers and employees in the securities industry can fully express their views, thus enabling HKEx to accurately and comprehensively grasp the overall stance of the industry on the matters under consultation; (b) to expeditiously assess the impact of HKEx's plan of extending trading hours on the industry, particularly the inconvenience caused by the shortening of lunch break to local securities dealers and employees in the industry, and at the same time, negotiate with the industry and its employees again for a more appropriate arrangement in relation to the plan; and (c) to conduct a comprehensive assessment of and consultation on the after-hours futures trading which HKEx intends to introduce, including contemplating the potential risks brought about by the plan to the local market, collecting the views of all employees in the industry, etc., and introducing the plan on a trial basis only after the industry has forged a consensus" immediately before the full stop.
(ii)	Hon Kenneth LEUNG to move the following amendment: (Translation) To delete "given the great contribution of" after "That,"; to add "have contributed a lot" after "local securities firms"; to delete "and their unrivalled importance in safeguarding Hong Kong's financial safety and supporting its financial development" after "Hong Kong's financial market" and substitute with ", but due to changes in the market environment, the securities industry is facing entirely new challenges and may need to consider changing its modus operandi in pursuit of innovation and changes, so as to lower its overall operating costs and further enhance its services; in view of this"; and to delete "support the development of the local securities industry" immediately before the full stop and substitute with "provide the necessary assistance to securities firms in need of transformation, such as in-service training for staff, technical support and low-interest loans, so as to assist securities firms in upgrading service quality and increase the overall competitiveness of the local securities industry".
(iii)	Hon Ronny TONG to move the following amendment: (Translation) To delete "given the great contribution of local securities firms" after "That," and substitute with "as Hong Kong is an international financial centre where the local securities industry has contributed greatly"; to delete "and their" after "Hong Kong's financial market" and substitute with "with"; and to add ", including formulating stringent standards for corporate governance and information disclosure to protect investors' rights and interests," after "specific measures".
(iv)	Hon SIN Chung-kai to move the following amendment: (Translation) To delete "given" after "That," and substitute with "with"; to add "ensure fair competition and" after "specific measures to"; and to add "; at the same time, the Government should also uphold the high degree of independence of the Hong Kong Exchanges and Clearing Limited and various financial regulators, regulate companies listed in Hong Kong in accordance with Hong Kong laws, and bolster the image of the Hong Kong securities trading market as being transparent, fair and effective in regulating, so as to attract investors from various places to use the Hong Kong securities market; besides, the Government should actively develop the Hong Kong bond market to assist the securities industry in developing different types of businesses and provide Hong Kong people with more investment choices; specific measures should include: (a) to encourage various statutory bodies to first issue bonds to raise capital from Hong Kong people on a priority basis when seeking financing, and increase the types and quantity of bonds; (b) to enlarge the platform and network for bond trading, increase trading channels, and popularize bond trading; (c) to seriously implement a market-making system for bonds, and set up central bond settlement similar to possession of scrips for the convenience of ordinary retail bond investors; and (d) to consider the establishment and management of Hong Kong Dollar denominated bond funds by the Hong Kong Monetary Authority and the Hong Kong Mortgage Corporation Limited, so that members of the public may indirectly purchase sovereign bonds of foreign countries and corporate bonds, subject to the condition that the management fees must be determined on the basis of actual expenses rather than for profit-making" immediately before the full stop.
(v)	Hon NG Leung-sing to move the following amendment: (Translation) To add "; as the financial co-operation between the Mainland and Hong Kong continues to strengthen, this Council also urges the Government to, while supporting local securities firms to develop local businesses, actively assist them in expanding into the Mainland market" immediately before the full stop.
(vi)	Hon Martin LIAO to move the following amendment: (Translation) To add "; specific measures should include: (a) to co-operate with the Mainland to introduce an interconnected system, and actively strengthen the co-operation between the two places in the area of asset management; (b) to conduct detailed studies on developing the bond market; (c) to develop recognized rating agencies; (d) to increase the existing categories of overnight futures contracts, and extend the trading hours to fully cover the winter-time and summer-time trading hours of the United States stock market; and (e) to introduce more investment products" immediately before the full stop.

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

Clerk to the Legislative Council