AGENDA FOR FINANCE COMMITTEE MEETING
TO BE HELD ON FRIDAY, 6 DECEMBER 2019,
FROM 4:00 PM TO 7:00 PM

Pecuniary interest : Please refer to Rules 83A and 84 of the Rules of Procedure of the Legislative Council for rules regarding pecuniary interest to be disclosed and voting in case of direct pecuniary interest.

Item No.Subject
1.FCR(2019-20)39&Legend symbol denoting Items carried over from the meeting held on 29 November 2019. HEAD 62 – HOUSING DEPARTMENT
Subhead 700 General non-recurrent
New Item "Rent payment for public housing tenants"

HEAD 147 – GOVERNMENT SECRETARIAT : FINANCIAL SERVICES AND THE TREASURY BUREAU (THE TREASURY BRANCH)
Subhead 700 General non-recurrent
Item 881 Electricity charges subsidy for eligible residential accounts

HEAD 156 – GOVERNMENT SECRETARIAT : EDUCATION BUREAU
Subhead 700 General non-recurrent
New Item "Provision of a subsidy to day-school students in 2019/20 school year"

HEAD 170 – SOCIAL WELFARE DEPARTMENT
Subhead 700 General non-recurrent
New Item "One-off extra allowance to social security recipients"

HEAD 173 – WORKING FAMILY AND STUDENT FINANCIAL ASSISTANCE AGENCY
Subhead 700 General non-recurrent
New Items "One-off extra allowance to Working Family Allowance recipients"; and "One-off extra allowance to Individual-based Work Incentive Transport Subsidy recipients"

HEAD 152 – GOVERNMENT SECRETARIAT : COMMERCE AND ECONOMIC DEVELOPMENT BUREAU (COMMERCE, INDUSTRY AND TOURISM BRANCH)
Subhead 700 General non-recurrent
New item "SME Financing Guarantee Scheme – 90% Guarantee Product"

HEAD 181 – TRADE AND INDUSTRY DEPARTMENT
Subhead 700 General non-recurrent
Item 836 Dedicated Fund on Branding, Upgrading and Domestic Sales
Item 524 Export Marketing and Trade and Industrial Organisation Support Fund

(This item invites Members to approve –

(a)a new non-recurrent commitment of $1,433 million under Head 62 Housing Department Subhead 700 General non-recurrent for providing one month's rent for lower-income tenants living in the public rental units of the Hong Kong Housing Authority and the Hong Kong Housing Society;

(b)an increase in commitment by $5,569 million from $22,300 million to $27,869 million under Head 147 Government Secretariat: Financial Services and the Treasury Bureau (The Treasury Branch) Subhead 700 General non-recurrent Item 881 for the provision of a one-off electricity charges subsidy to eligible residential households;

(c)a new non-recurrent commitment of $2,250 million under Head 156 Government Secretariat: Education Bureau for provision of a subsidy of $2,500 for each day-school student in the 2019/20 school year;

(d)(i)a new non-recurrent commitment of $3,888 million under Head 170 Social Welfare Department Subhead 700 General non-recurrent for providing a one-off extra allowance to recipients of –

(1)Comprehensive Social Security Assistance, that is equivalent to one month of the Comprehensive Social Security Assistance standard rates; and

(2)Social Security Allowance, that is equivalent to one month of Old Age Allowance (including those payable under the Guangdong Scheme and Fujian Scheme), Old Age Living Allowance (including Normal Old Age Living Allowance and Higher Old Age Living Allowance and Disability Allowance (including Normal Disability Allowance and Higher Disability Allowance);

(ii)a new non-recurrent commitment of $136 million under Head 173 Working Family and Student Financial Assistance Agency Subhead 700 General non-recurrent for providing a one-off extra allowance to recipients of Working Family Allowance, that is equivalent to the average monthly amount of approved months payable to the recipients in their most recently submitted Working Family Allowance applications during the applicable period and eventually approved;

(iii)a new non-recurrent commitment of $19 million under Head 173 Working Family and Student Financial Assistance Agency Subhead 700 General non-recurrent for providing a one-off extra allowance to recipients of Individual-based Work Incentive Transport Subsidy, that is equivalent to the average monthly amount of approved months payable to the recipients in their most recently submitted Individual-based Work Incentive Transport Subsidy applications during the applicable period and eventually approved;

(e)(i)a new loan guarantee commitment of $33 billion with an expected maximum expenditure of $5.4 billion under Head 152 Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch) Subhead 700 General non-recurrent for the HKMC Insurance Limited to introduce a new loan guarantee product under its SME Financing Guarantee Scheme;

(ii)an increase in commitment by $2 billion from $2.5 billion to $4.5 billion under Head 181 Trade and Industry Department Subhead 700 General non-recurrent Item 836 Dedicated Fund on Branding, Upgrading and Domestic Sales;

(iii)extend the coverage of the funding support to economies with which Hong Kong has signed Free Trade Agreements at the time of application under the Dedicated Fund on Branding, Upgrading and Domestic Sales; and

(iv)an increase in commitment by $1 billion from $6.25 billion to $7.25 billion under Head 181 Trade and Industry Department Subhead 700 General non-recurrent Item 524 Export Marketing and Trade and Industrial Organisation Support Fund.

(In attendance : Deputy Secretary for Transport and Housing (Housing)/ Assistant Director of Housing (Strategic Planning)/Senior Housing Manager (Rent and Special Services), Housing Department/Principal Assistant Secretary for Financial Services and the Treasury(Treasury)(H)/Under Secretary for Education/Deputy Secretary for Education (4)/Assistant Director of Social Welfare (Social Security)/Principal Executive Officer (Working Family Allowance Office), Working Family and Student Financial Assistance Agency/Under Secretary for Commerce and Economic Development/Deputy Secretary for Commerce and Economic Development (Commerce and Industry)3/Director-General of Trade and Industry/Assistant Director-General of Trade and Industry (Industries Support)/ Executive Director and Chief Executive Officer, The Hong Kong Mortgage Corporation Limited/Executive Director and Chief Executive Officer, HKMC Insurance Limited/Vice President (SFGS Operations), HKMC Insurance Limited)

(This item was discussed by the Panel on Housing on 4 November 2019 on the rent payment proposal)

(This item was discussed by the Panel on Financial Affairs on 4 November 2019 on the electricity charges subsidy)

(This item was discussed by the Panel on Education on 1 November 2019 on the student subsidy proposal)

(This item was discussed by the Panel on Welfare Services on 11 November 2019 on the one-off extra allowance to social security, Working Family Allowance and Individual-based Work Incentive Transport Subsidy recipients)

(This item was discussed by the Panel on Commerce and Industry on 16 April 2019 and 29 October 2019 on the measures to support Small and Medium Enterprises)

(Letter dated 27 November 2019 from Hon Tanya CHAN (FC34/19-20(01)) and reply dated 28 November 2019 by the Administration (FC34/19-20(02)))

(Letter dated 29 November 2019 from Hon Holden CHOW Ho-ding (FC40/19-20(01)) and reply dated 5 December 2019 by the Administration (FC40/19-20(02)))

(Information paper from the Administration on 5 December 2019 (FC41/19-20(01)))

2.FCR(2019-20)33*Legend symbol denoting Items carried over from the 2018-19 LegCo Session and the meeting held on 29 November 2019. 2019-20 CIVIL SERVICE PAY ADJUSTMENT

(This item invites Members to approve –

(A)with effect from 1 April 2019, the following adjustments to the civil service pay scales arising from the 2019-20 civil service pay adjustment –

(a)an increase of 4.75% in the dollar value of the pay points in the directorate and upper salary band subject to the pay points referred to in (i) and (ii) below the dollar values of which should be as specified –

(i)Master Pay Scale (MPS) 34 at $74,515 and MPS 35 at $75,265; and

(ii)General Disciplined Services (Officer) Pay Scale (GDS(O)) 20 and Police Pay Scale (PPS) 36 at $74,390, and GDS(O) 21 and PPS 37 at $75,135; and

(b)an increase of 5.26% in the dollar value of the pay points in the middle and lower salary bands;

(B)corresponding adjustments to the provisions for aided schools;

(C)corresponding adjustments to the provisions for the Independent Commission Against Corruption (ICAC); and

(D)corresponding adjustments to subventions which are price-adjusted on the basis of formulae that include a factor on civil service pay adjustment.)

(In attendance : Secretary for the Civil Service/Permanent Secretary for the Civil Service/Deputy Secretary for the Civil Service (2)/Principal Assistant Secretary for the Civil Service (Pay and Leave))

(The item was discussed by the Panel on Public Service on 21 June 2019)

(Letter dated 18 September 2019 from Hon CHU Hoi-dick (FC16/19-20(01)) and reply dated 25 October 2019 by the Administration (FC16/19-20(02)))

(Letter dated 1 November 2019 from members belonging to the Democratic Party (FC28/19-20(01)) and reply dated 15 November 2019 by the Administration (FC28/19-20(02)))

(Letter dated 28 November 2019 from Dr Hon Fernando CHEUNG Chiu-hung (FC38/19-20(01)) and reply dated 5 December 2019 by the Administration (FC39/19-20(01)))

3.FCR(2019-20)34*Legend symbol denoting Items carried over from the 2018-19 LegCo Session and the meeting held on 29 November 2019.HEAD 22 – AGRICULTURE, FISHERIES AND CONSERVATION DEPARTMENT
Subhead 700 General non-recurrent
New Item "Financial Commitment for Culling of Pigs due to African Swine Fever"

(This item invites Members to approve the creation of a new commitment of $333 million for providing statutory compensation and ex-gratia payments to affected pig owners on a timely basis in case of culling operations due to African Swine Fever.)

(In attendance : Under Secretary for Food and Health/Principal Assistant Secretary for Food and Health (Food)3/Assistant Director of Food and Environmental Hygiene (Operations) 3/Senior Agricultural Officer (Wholesale Markets), Agriculture, Fisheries and Conservation Department )

(The item was discussed by the Panel on Food Safety and Environmental Hygiene on 11 June 2019)

4.FCR(2019-20)5*Legend symbol denoting Items carried over from the 2018-19 LegCo Session and the meeting held on 29 November 2019. RECOMMENDATION OF THE PUBLIC WORKS SUBCOMMITTEE MADE ON 29 MARCH 2019

(PWSC(2018-19)40#Legend symbol denoting Items requested by members for discussion and separate voting by the Finance Committee. – 780CL Site formation and infrastructure works for public housing development at Wang Chau, Yuen Long)

(This item seeks approval of the recommendation of the Public Works Subcommittee made at its meeting held on 29 March 2019.)

(In attendance : Under Secretary for Transport and Housing/Chief Civil Engineer (Public Works Programme), Transport and Housing Bureau/Head of Civil Engineering Office, Civil Engineering and Development Department/Deputy Head of Civil Engineering Office (Housing), Civil Engineering and Development Department/Chief Engineer (Housing Projects 2), Civil Engineering and Development Department/Senior Veterinary Officer (Animal Management) (Development), Agriculture, Fisheries and Conservation Department/Chief Estate Surveyor (New Development Area Section), Lands Department/ Chief Architect 5, Housing Department/Chief Civil Engineer 2, Housing Department/Housing Manager (Clearance Housing), Housing Department)

(This item was discussed by the Panels on Housing and Development on 26 and 29 June 2018. Supplementary information papers CB(1)1221/17-18(01) and CB(1)1246/17-18(01) have been provided by the Administration to the Panels)

(This item was discussed by the Panel on Housing Subcommittee to Follow up the Issues Related to the Wang Chau Development Project on 25 April 2018, 30 November 2018 and 1 February 2019. Supplementary information papers have been provided by the Administration to the Subcommittee)

(Written questions from Hon CHU Hoi-dick on 25 March 2019 (PWSC154/18-19(01)) and information paper from the Administration on 28 March 2019 (PWSC163/18-19(01))

(This item was discussed by the Public Works Subcommittee on 27 and 29 March 2019 and information papers PWSC187/18-19(01) and (02) have been provided by the Administration to the Subcommittee)

(Written questions from Hon CHU Hoi-dick on 12 April 2019 (FC173/18-19(01)) and information paper from the Administration on 8 May 2019 (FC173/18-19(02))

(Written question from Hon CHU Hoi-dick on 16 May 2019 (FC184/18-19(02) and information paper from the Administration on 28 May 2019 (FC188/18-19(01)))

(Written questions from Hon CHU Hoi-dick on 20 May 2019 (FC188/18-19(02)) and information paper from the Administration on 28 May 2019 (FC188/18-19(03))

(Written questions from Hon CHU Hoi-dick on 19 June 2019 (FC202/18-19(01) and information paper from the Administration on 27 June 2019 (FC210/18-19(01))

5.FCR(2019-20)7*Legend symbol denoting Items carried over from the 2018-19 LegCo Session and the meeting held on 29 November 2019. RECOMMENDATION OF THE ESTABLISHMENT SUBCOMMITTEE MADE ON 22 MARCH 2019

(EC(2018-19)26#Legend symbol denoting Items requested by members for discussion and separate voting by the Finance Committee. – Creation of one permanent post of Principal Government Engineer (D3) and making permanent of one Government Engineer (D2) supernumerary post in the Works Branch of the Development Bureau to lead the new Project Strategy and Governance Office for implementing strategic initiatives and enhancing capabilities in cost surveillance and project governance)

(This item seeks approval of the recommendation of the Establishment Subcommittee made at its meeting held on 22 March 2019.)

(In attendance: Permanent Secretary for Development (Works)/ Principal Government Engineer (Special Projects), Development Bureau/ Government Engineer (Special Projects), Development Bureau)

(This item was discussed by the Panel on Development on 27 November 2018. Supplementary information papers CB(1)347/18-19(01) and CB(1)465/18-19(01) have been provided by the Administration to the Panel)

(This item was discussed by the Establishment Subcommittee on 22 February 2019 and 22 March 2019)

6.FCR(2019-20)38&Legend symbol denoting Items carried over from the meeting held on 29 November 2019.RECOMMENDATION OF THE PUBLIC WORKS SUBCOMMITTEE MADE ON 14 MAY 2019

(PWSC(2018-19)46#Legend symbol denoting Items requested by members for discussion and separate voting by the Finance Committee. –

175BFRelocation of supporting operational facilities of Tsim Sha Tsui Fire Station Complex, Fire Services Club and other Fire Services accommodations to To Wah Road, Kowloon

754CLInfrastructure Works for West Kowloon Cultural District, phase 1

763CLIntegrated Basement for West Kowloon Cultural District – remaining works)

(This item seeks approval of the recommendation of the Public Works Subcommittee made at its meeting held on 14 May 2019.)

(In attendance: Permanent Secretary for Home Affairs/Project Manager, Home Affairs Bureau/Project Manager (South), Civil Engineering and Development Department/Chief Engineer (South 2), Civil Engineering and Development Department/Assistant Director of Fire Services (Headquarters)/Senior Divisional Officer (Planning Group), Fire Services Department/Deputy Director of Architectural Services/Senior Project Manager 240, Architectural Services Department/Chief Traffic Engineer (Kowloon), Transport Department/ Senior Engineer (Strategic Studies) 5, Transport Department/Chief Projects Officer, West Kowloon Cultural District Authority/General Manager (Engineering Services), West Kowloon Cultural District Authority)

(This item was discussed by the Joint Subcommittee to Monitor the Implementation of the West Kowloon Cultural District Project set up under the Panel on Development and Panel on Home Affairs on 21 April 2017, 11 May 2018, 11 June 2018 and 14 January 2019. Supplementary information paper CB(1)123/18-19(01) has been provided by the Administration to the Subcommittee)

(This item was discussed by the Public Works Subcommittee on 8 and 14 May 2019 and information papers PWSC208/18-19(01) and PWSC278/18-19(01) have been provided by the Administration to the Subcommittee)

(Written questions from Dr Hon KWOK Ka-ki, Hon Alvin YEUNG, Hon Tanya CHAN and Hon Jeremy TAM Man-ho on 8 May 2019 (PWSC204/18-19(01)) and information paper from the Administration on 14 May 2019 (PWSC208/18-19(03))

(Written questions from Dr Hon KWOK Ka-ki on 8 May 2019 (PWSC204/18-19(02)) and information paper from the Administration on 14 May 2019 (PWSC208/18-19(04))

(Written question from Dr Hon Helena WONG Pik-wan on 8 May 2019 (PWSC204/18-19(03)) and information paper from the Administration on 14 May 2019 (PWSC208/18-19(02)))

7.FCR(2019-20)10*Legend symbol denoting Items carried over from the 2018-19 LegCo Session and the meeting held on 29 November 2019. CAPITAL WORKS RESERVE FUND
HEAD 708 – CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
Hong Kong Observatory
New Subhead "Replacement of the Storm-detecting Weather Radar at Tai Mo Shan"
New Subhead "Procurement of a High Performance Computer System"

(This item invites Members to approve the creation of the following two new commitments for the Hong Kong Observatory –

(a)$48 million for the replacement of the storm-detecting weather radar at Tai Mo Shan; and

(b)$90 million for the procurement of a high performance computer system.)

(In attendance : Deputy Secretary for Commerce and Economic Development (Commerce and Industry) 2/Assistant Director of the Hong Kong Observatory (Aviation Weather Services)/Senior Scientific Officer (Radar and Satellite Meteorology), Hong Kong Observatory/Scientific Officer (Meteorological Forecast Systems), Hong Kong Observatory)

(This item was discussed by the Panel on Economic Development on 25 February 2019)

8.FCR(2019-20)25*Legend symbol denoting Items carried over from the 2018-19 LegCo Session and the meeting held on 29 November 2019. RECOMMENDATION OF THE ESTABLISHMENT SUBCOMMITTEE MADE ON 7 MAY 2019

(EC(2018-19)37#Legend symbol denoting Items requested by members for discussion and separate voting by the Finance Committee. – Creation of five permanent posts of three judicial posts of Judge of the District Court (JSPS 13) in the Judiciary to strengthen the judicial establishment of the Family Court; and two civil service posts of one Administrative Officer Staff Grade B1 (D4) to head a new Planning and Quality Division and one Administrative Officer Staff Grade C (D2) to strengthen directorate support for the Chief Justice's Private Office in the Judiciary Administration)

(This item seeks approval of the recommendation of the Establishment Subcommittee made at its meeting held on 7 May 2019.)

(In attendance: Judiciary Administrator/Deputy Judiciary Administrator (Operations)/Assistant Judiciary Administrator (Corporate Services))

(The item was discussed by the Panel on Administration of Justice and Legal Services on 25 February 2019)

(This item was discussed by the Establishment Subcommittee on 7 May 2019 and information paper ESC119/18-19(01) has been provided by the Administration to the Subcommittee)

9.FCR(2019-20)21%Legend symbol denoting Item carried over from the 2018-19 LegCo Session.RECOMMENDATION OF THE PUBLIC WORKS SUBCOMMITTEE MADE ON 26 APRIL 2019

(PWSC(2018-19)44#Legend symbol denoting Items requested by members for discussion and separate voting by the Finance Committee. – 190GK Flight Simulator Training Centre of the Government Flying Service)

(This item seeks approval of the recommendation of the Public Works Subcommittee made at its meeting held on 26 April 2019.)

(In attendance : Under Secretary for Security/Assistant Secretary for Security A1/Chief Pilot (Training and Standards), Government Flying Service/Senior Pilot (Helicopter - Technical Support), Government Flying Service/Director of Architectural Services/Chief Project Manager 201, Architectural Services Department)

(This item was discussed by the Panel on Security on 8 January 2019)

(This item was discussed by the Public Works Subcommittee on 26 April 2019 and information paper PWSC223/18-19(01) has been provided by the Administration to the Subcommittee)

10.FCR(2019-20)40INNOVATION AND TECHNOLOGY FUND
HEAD 111 – INNOVATION AND TECHNOLOGY
New Subhead "Re-industrialisation Funding Scheme"

HEAD 184 – TRANSFERS TO FUNDS
Subhead 992 "Payment to the Innovation and Technology Fund"
Subhead 987 "Payment to the Capital Investment Fund"

CAPITAL INVESTMENT FUND
HEAD 962 – INDUSTRY
New Subhead "Equity in the Hong Kong Science and Technology Parks Corporation for developing a Microelectronics Centre"

(This item invites Members to approve -

(a)a supplementary provision of $2 billion under Head 184 Transfers to Funds Subhead 992 Payment to the Innovation and Technology Fund to enable the creation of a commitment for setting up a funding scheme to subsidise manufacturers to set up new smart production lines in Hong Kong; and

(b)a supplementary provision of $2 billion under Head 184 Transfers to Funds Subhead 987 Payment to the Capital Investment Fund to enable the creation of a commitment to inject $2 billion as equity from the Capital Investment Fund to the Hong Kong Science and Technology Parks Corporation for developing the Microelectronics Centre.)

(In attendance : Under Secretary for Innovation and Technology/ Principal Assistant Secretary for Innovation and Technology (1)/ Deputy Commissioner for Innovation and Technology/Assistant Commissioner for Innovation and Technology (Funding Schemes)/Assistant Commissioner for Innovation and Technology (Infrastructure)/Chief Executive Officer, Hong Kong Science and Technology Parks Corporation/Chief Financial Officer, Hong Kong Science and Technology Parks Corporation)

(This item was discussed by the Panel on Commerce and Industry on 21 May 2019)

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* Items carried over from the 2018-19 LegCo Session and the meeting held on 29 November 2019.

& Items carried over from the meeting held on 29 November 2019.

# Items requested by members for discussion and separate voting by the Finance Committee.

% Item carried over from the 2018-19 LegCo Session.