House Committee (Minutes) 6 Mar 98

Provisional Legislative Council

PLC Paper No. CB(2) 1159

Ref : PLC/HC/4

Minutes of the meeting
held at the Legislative Council Chamber
at 2:40 pm on Friday, 6 March 1998

Members present :

Dr Hon LEONG Che-hung, JP (Chairman)
Hon IP Kwok-him (Deputy Chairman)
Hon WONG Siu-yee
Hon James TIEN Pei-chun, JP
Hon David CHU Yu-lin
Dr Hon Raymond HO Chung-tai, JP
Hon NG Leung-sing
Hon Eric LI Ka-cheung, JP
Hon LEE Kai-ming
Hon Mrs Elsie TU, GBM
Hon Mrs Selina CHOW, JP
Hon Henry WU
Hon Ronald ARCULLI, JP
Hon MA Fung-kwok
Dr Hon Mrs TSO WONG Man-yin
Hon MOK Ying-fan
Hon CHAN Choi-hi
Hon CHAN Yuen-han
Hon CHAN Wing-chan
Hon CHAN Kam-lam
Hon TSANG Yok-sing
Hon Andrew WONG Wang-fat, JP
Hon Kennedy WONG Ying-ho
Hon Howard YOUNG, JP
Hon Bruce LIU Sing-lee
Hon Mrs Miriam LAU Kin-yee, JP
Hon CHOY Kan-pui, JP
Hon Paul CHENG Ming-fun, JP
Dr Hon TANG Siu-tong, JP
Hon NGAN Kam-chuen
Hon TAM Yiu-chung, JP
Hon CHOY So-yuk

Members absent :

Hon HO Sai-chu, JP
Hon Edward HO Sing-tin, JP
Prof Hon NG Ching-fai
Dr Hon David LI Kwok-po, JP
Hon Allen LEE, JP
Hon Mrs Peggy LAM, JP
Hon NGAI Shiu-kit, JP
Hon Henry TANG Ying-yen, JP
Hon YUEN Mo
Hon CHEUNG Hon-chung
Hon LEUNG Chun-ying, JP
Hon Mrs Sophie LEUNG LAU Yau-fun, JP
Hon HUI Yin-fat, JP
Hon CHENG Kai-nam
Hon Frederick FUNG Kin-kee
Dr Hon Philip WONG Yu-Hong
Dr Hon Charles YEUNG Chun-kam
Hon YEUNG Yiu-chung
Hon CHIM Pui-chung
Hon LAU Kong-wah
Hon LAU Wong-fat, JP
Hon Ambrose LAU Hon-chuen, JP
Hon CHENG Yiu-tong
Hon Timothy FOK Tsun-ting
Hon KAN Fook-yee
Hon LO Suk-ching
Dr Hon LAW Cheung-kwok

Clerk in attendance :

Mrs Justina LAM: Clerk to the House Committee

Staff in attendance :

Mr Ricky C C FUNG, JP: Secretary General
Mr Jimmy MA: Legal Adviser
Mr LAW Kam-sang, JP: Deputy Secretary General
Mr LEE Yu-sang: Senior Assistant Legal Adviser
Ms Pauline NG: Assistant Secretary General 1
Mr Ray CHAN: Assistant Secretary General 3
Ms Bernice WONG: Assistant Legal Adviser 1
Miss Anita HO: Assistant Legal Adviser 2
Mr Stephen LAM: Assistant Legal Adviser 4
Mr Arthur CHEUNG: Assistant Legal Adviser 5
Mrs Anna LO: Chief Assistant Secretary (Complaints)
Ms Kathleen LAU: Chief Public Information Officer
Ms LEUNG Siu-kum: Chief Assistant Secretary (1)2
Ms Estella CHAN: Chief Assistant Secretary (1)4
Mr LAW Wing-lok: Chief Assistant Secretary (2)5
Mrs Betty LEUNG: Chief Assistant Secretary (3)1
Mrs Eleanor CHOW: Senior Assistant Secretary (2)8

I. Confirmation of the minutes of the 35th meeting held on 27 February 1998

(PLC Paper No. CB(2) 1117)

1.The minutes were confirmed.

II. Matters arising

Report by the Chairman on his meeting with the Chief Secretary for Administration (CS)

2.The Chairman said that CS had undertaken to convey to the Executive Council, Members request that the Panel on Welfare Services be consulted before the Executive Council made a decision on the Report of the Review of Pilot Neighbourhood Level Community Development Projects in Old Urban Areas.

III. Business arising from previous Council meetings

Legal Service Divisions report on bills referred to the House Committee in accordance with Rule 54(4)
1. Inland Revenue (Amendment) (No. 2) Bill 1998
  (PLC Paper No. LS 119)
  5.The Legal Adviser explained that the Bill sought to implement the proposals relating to profits tax in the 1998-99 Budget and make other related amendments to the Inland Revenue Ordinance. He added that members might wish to consider setting up a Bills Committee to examine the practical aspects of the Bill.
  6.Mr James TIEN suggested and members agreed to form a Bills Committee. The following members agreed to join : Mr WONG Siu-yee, Mr James TIEN, Mr Eric LI, Mrs Selina CHOW, Mr Henry WU, Miss CHAN Yuen-han, Mr Kennedy WONG, Mr NGAN Kam-chuen and Mr Bruce LIU.
2. Stamp Duty (Amendment) Bill 1998
  (PLC Paper No. LS 116)
  7.The Legal Adviser said that the Bill sought to amend the Stamp Duty Ordinance to give effect to the proposal in the 1998-99 Budget concerning the reduction in the stamp duty chargeable in respect of a transaction in Hong Kong stock from 0.3% to 0.25%. He added that the legal and drafting aspects of the Bill were in order.
  8.Members agreed that the Second Reading debate on the Bill be resumed.
3. Stamp Duty (Amendment) (No. 2) Bill 1998
  (PLC Paper No. LS 117)
  9.Referring to the paper, the Legal Adviser explained that the Bill sought to implement the proposals in the 1998-99 Budget to provide for a specific exemption for transactions in regional derivative options and convertible bonds or notes and regional derivative warrants as well as other proposals to streamline the operation of the stamp duty scheme under the Stamp Duty Ordinance. He added that members might wish to set up a Bills Committee to examine the practical implications of the non-budgetary proposals.
  10.Mr Eric LI suggested and members agreed to form a Bills Committee. The following members agreed to join : Mr WONG Siu-yee, Mr Eric LI, Mr Henry WU and Mr NGAN Kam-chuen.
4. Estate Duty (Amendment) Bill 1998
  (PLC Paper No. LS 115)
  11.The Legal Adviser said that the purpose of the Bill was to amend the Estate Duty Ordinance to give effect to the proposals in the 1998-99 Budget to exempt estates with a principal value not exceeding $7.5 million from estate duty as well as to adjust the rates applicable to larger estates. The legal and drafting aspects of the Bill were in order.
  12.Members agreed that the Second Reading debate on the bill be resumed.
5. Dutiable Commodities (Amendment) Bill 1998
  (PLC Paper No. LS 114)
  13.The Chairman said that members agreed at the last meeting that the subcommittee formed to study the Public Revenue Protection (Dutiable Commodities) Order 1998 would become the Bills Committee to study the Dutiable Commodities (Amendment) Bill 1998 upon its introduction into the Council. The Chairman added that non-subcommittee members could join the Bills Committee if they were interested.
6. Air Passenger Departure Tax (Amendment) Bill 1998
  (PLC Paper No. LS 113)
  14.The Legal Adviser said that the Bill sought to amend the Air Passenger Departure Tax Ordinance to give effect to the proposal in the 1998-99 Budget to reduce the air passenger departure tax from $100 to $50. According to the Administration, the amendment would be put into effect when the new airport at Chek Lap Kok commenced operation.
  15.Members agreed that the Second Reading debate on the Bill be resumed.
7. Legal Service Divisions report on subsidiary legislation tabled in Council on 4 March 1998 (gazetted on 27 February 1998)
  (PLC Paper No. LS 112)

16.The Legal Adviser introduced the paper which detailed the 20 items of subsidiary legislation gazetted on 27 February 1998.

17.The Legal Adviser said that the Specification of Arrangements (Arrangements with the Mainland of China for the Avoidance of Double Taxation on Income) Order was made by the Chief Executive in Council under section 49 of the Inland Revenue Ordinance. He added that members might wish to consider setting up a subcommittee to study the Order but the legislature had no authority to amend the content of the arrangements.

18.Mr Eric LI suggested and members agreed to form a subcommittee to study the Order. The following members agreed to join : Mr WONG Siu-yee, Mr Eric LI, Mr LEE Kai-ming and Mrs Miriam LAU.

19.Referring to the four Orders made under the Public Revenue Protection Ordinance, the Legal Adviser explained that the Orders were interim measures taken under the Ordinance to give effect to some of the proposals in the 1998-99 Budget. The Orders would cease to be in force either upon the enactment as law of the bills or resolutions in respect of which the Orders were made or upon the expiry of four months from the day on which the Orders came into force, whichever occurred earlier.

20.Members raised no queries on the remaining 15 items of subsidiary legislation covered in the paper.

21.The Chairman reminded members that the deadline for giving notice to amend the subsidiary legislation at the Council meeting on 1 April 1998 was 25 March 1998.

IV. Further business for the Council meeting on 11 and 12 March 1998

Questions
(PLC Paper No. CB(3) 737)

22.The Chairman said that 16 written questions had been scheduled.

V. Business for the Council meeting on 18 March 1998

(a) Questions
(PLC Paper No. CB(3) 732)

23.The Chairman said that 10 written questions had been tentatively scheduled. He reminded members that no questions seeking oral replies would be scheduled for the meeting and that the deadline for giving notice of questions was 9 March 1998.

(b) Bills - resumption of debate on Second Reading, Committee Stage and Third Reading

(i)Appropriation Bill 1998
(Response from Administration)

24.The Chairman said that the Administration would respond to Members speeches made at the debate on the 1998-99 Budget held at the Council meeting on 11 and 12 March 1998.

(ii) Merchant Shipping (Registration) (Amendment) Bill 1998

25.The Chairman said that the Administration had given notice to resume the Second Reading debate on 18 March 1998.

(iii) Housing (Amendment) (No. 3) Bill 1997

26.The Chairman said that the Administration had withdrawn the notice for resumption of the Second Reading debate on the Bill to take place on 18 March 1998.

27.

27.In response to Miss CHAN Yuen-han, the Chairman said that he would ask CS why the Administration had withdrawn the notice at their next meeting.

Chairman

(c) Motion

Resolution under section 25 of the Mass Transit Railway Corporation Ordinance (Cap. 270)

28.The Chairman said that the Administration had given notice to move the resolution at the Council meeting on 18 March 1998. The subcommittee formed to examine the resolution would report under agenda item VI(g) below.

(d) Members motions

Resolution under section 34(2) of the Interpretation and General Clauses Ordinance (Cap. 1) - to be moved by Hon Ronald ARCULLI

29.The Chairman said that Mr Ronald ARCULLI, Chairman of the subcommittee on subsidiary legislation relating to fee increases, had given notice to move a resolution at the Council meeting on 18 March 1998 to repeal the Lifts and Escalators (Safety) (Fees) (Amendment) Regulation 1998. The subcommittee would report under agenda item VI(c) below.

VI. Advance information on motions for the Council meeting on 25 March 1998

(a) Motions

(i) Resolution under section 18(1) of the Rating Ordinance (Cap. 116) - to be moved by Secretary for the Treasury

30.The Chairman said that the Administration had given notice to move the above resolution at the Council meeting on 25 March 1998. The resolution sought to give effect to the Budget proposal to reduce the overall rates percentage charge from 5% to 4.5% for one year in 1998-99. The Legal Adviser said that the reduction would be borne entirely by the General Rates and that the rates funding of the Municipal Councils would not be affected. He added that the legal and drafting aspects of the resolution were in order.

31.Members raised no queries on the resolution.

(ii) Resolution under section 3(2) of the Hotel Accommodation Tax Ordinance (Cap. 348) - to be moved by Secretary for the Treasury

32.The Chairman said that the Administration had given notice to move the above resolution at the Council meeting on 25 March 1998. The resolution sought to give effect to the proposal in the 1998-99 Budget to reduce the rate of hotel accommodation tax from 5% to 3%. The Legal Adviser added that the legal and drafting aspects of the resolution were in order.

33.Members raised no queries on the resolution.

(b) Members motions

(i) Motion to be moved by Hon CHAN Yuen-han

34.Members noted that a debate slot had been allocated to Miss CHAN Yuen-han.

(ii) Motion on "Formulating cultural policy"

35.Members noted that a debate slot had been allocated to Mr MA Fung-kwok.

36.The Chairman said that the deadlines for giving notice of, and amendments if any to, the above motions were 10 March 1998 and 18 March 1998 respectively.

VI. Reports

(a) Position report on Bills Committees/subcommittees
(PLC Paper No. CB(2) 1123)

37.The Chairman said that there were six subcommittees and seven Bills Committees in action. In addition, members had earlier agreed to form one subcommittee and three Bills Committees under agenda item III above. Two subcommittees and two Bills Committees had completed work and would report under agenda item VI(b), (c), (d) and (g) below.

(b) Report of the Bills Committee on Building Management (Amendment) Bill 1998
(PLC Paper No. CB(2) 1125)

38.Mr CHAN Kam-lam, Chairman of the Bills Committee, highlighted the main deliberations of the Bills Committee as detailed in the paper. He said that the Bills Committee supported the Bill and recommended resumption of the Second Reading debate on the Bill to take place on 18 March 1998. He added that the Administration would move some minor textual amendments to the Bill at the Committee stage in response to the Bills Committees views.

39.Members agreed that the Second Reading debate on the bill be resumed on 18 March 1998.

(c) Second report of the subcommittee on subsidiary legislation relating to fee increases
(PLC Paper No. CB(2) 1128)

40.The Chairman referred members to the paper and said that Mr Ronald ARCULLI, Chairman of the subcommittee, would move a resolution at the Council meeting on 18 March 1998 to repeal the Lifts and Escalators (Safety) (Fees) (Amendment) Regulation 1998.

(d) Report of the subcommittee on the nine Orders made under the Port Control (Cargo Working Areas) Ordinance (Cap. 81)

(PLC Paper No. CB(2) 1129 tabled at the meeting and circulated vide PLC Paper No. CB(2) 1155 on 9 March 1998)

41.Referring to the paper, Mr IP Kwok-him, Chairman of the subcommittee, said that the subcommittee had examined the nine Public Cargo Working Area Orders and recommended that the nine Orders be supported.

(e) Report of the Bills Committee on Roads (Works, Use and Compensation) (Amendment) Bill 1998, Foreshore and Sea-bed (Reclamations) (Amendment) Bill 1998 and Town Planning (Amendment) Bill 1998

(PLC Paper No. CB(1) 1058 tabled at the meeting and circulated vide PLC Paper No. CB(2) 1155 on 9 March 1998)

42.Dr Raymond HO Chung-tai, Chairman of the Bills Committee, highlighted the main deliberations of the Bills Committee as detailed in the paper. He said that the Administration had accepted the Bills Committees suggestion and agreed to move Committee stage amendments (CSAs) to the three Bills to specify that the extension period that might be allowed by the Chief Executive in Council for dealing with complicated objection cases after the expiration of the nine-month period would be restricted to six months. He added that the Bills Committee supported the three Bills subject to the CSAs to be moved by the Administration.

43.Members noted that the Administration had given notice to resume the Second Reading debate on 25 March 1998.

(f) Report of the subcommittee on Telecommunication (Amendment) Regulation 1998 and Telephone (Repeal) Regulation 1998

44.Mr James TIEN, Chairman of the subcommittee, reported that the subcommittee had completed scrutiny of the Telecommunications (Amendment) Regulation 1998 and the Telephone (Repeal) Regulation 1998 after holding two meetings, including one held earlier that day to meet 16 deputations.

45.Mr TIEN said that whilst members of the subcommittee were generally in support of the liberalization of external telecommunications services, they had expressed concern as to whether the liberalization of the telecommunications market would bring in real and efficient competition. The Administration had explained that the existing regulatory regime imposed on the local telecommunications market would apply to the external telecommunications services in order to ensure that the necessary consumer protection measures and safeguards against anti-competitive practices would be maintained.

46.Mr TIEN further said that the deputations welcomed the decision to liberalize the telecommunications market. They also supported the Administrations Agreement with the Hong Kong Telecom International Limited (HKTI) for the early surrender of the HKTI licence. The three Fixed Telecommunication Network Services (FTNS) operators (Hutchison Communications, New T & T and New World Telephone) had also expressed interest in increasing their investment in the telecommunications market as a result of the liberalization of external telecommunications services.

47.Mr TIEN added that the Administration would commence the FTNS review in April this year with a view to determining, among other things, the number of FTNS licences to be issued. The Administration had indicated that it would start receiving applications in September and October. This would allow a period of around three months for the successful applicants to make the necessary preparation before commencing the supply of external telecommunications services and external telecommunications facilities-based services from January 1999 and January 2000 respectively.

48.Mr TIEN further informed members that the subcommittee had recommended that the two Regulations be supported and that a written report on the subcommittees deliberations would be submitted to the House Committee on 13 March 1998.

49.The Chairman reminded members that the deadline for giving notice of amendments, if any, to the two Regulations was 11 March 1998.

50.In response to members, the Legal Adviser said that the two Regulations would not be on the Agenda of the Council meeting on 18 March 1998 if no amendments were proposed to the two Regulations. The two Regulations would continue to have effect under the negative vetting procedure.

51.Mr IP Kwok-him pointed out that the payment of compensation of $6.7 billion to HKTI had been a matter of public interest. He expressed concern that if no Member spoke on the two Regulations at the Council meeting on 18 March 1998, it might give a wrong impression to the public that the two Regulations were approved without proper scrutiny by Members.

52.The Legal Adviser said that under Rule 21(4) of the Rules of Procedure, a Members might, with the consent of the President, address the Council on subsidiary legislation laid on the Table of the Council. A Member who wished to address the Council under this rule should inform the President of his wish in advance and provide an advance copy of the intended address in accordance with Rule 2 of the House Rules to enable the President to decide whether the address would provoke a debate, which was not permitted under Rule 21(5) of the Rules of Procedure. He added that Members could also consider holding an adjournment debate on the matter under Rule 16(4) of the Rules of Procedure.

53.Mrs Miriam LAU said that she had addressed the former Legislative Council on a number of occasions in the capacity of the chairman of a Bills Committee with the leave of the President. She opined that the same approach could be adopted in this case. Mr James TIEN said that he intended to seek the Presidents permission to address the Council on the deliberations of the subcommittee at the Council meeting on 18 March 1998.

54.The Chairman reminded members that those who wished to speak on the matter should seek leave from the President in advance and provide a copy of the speech for her consideration. In response to members, the Chairman said that the speaking time limit for each Members address was 15 minutes.

(g) Report of the subcommittee on Mass Transit Railway (Transport Interchange) Regulation and Resolution under section 25 of the Mass Transit Railway Corporation Ordinance (Cap. 270)
(PLC Paper No. CB(1) 1068)

55.Mr CHAN Kam-lam, Chairman of the subcommittee, highlighted the deliberations of the subcommittee as detailed in the paper. He said that the subcommittee had recommended that the Mass Transit Railway (Transport Interchange) Regulation be supported. As regards the resolution dealing with the Mass Transit Railway (Transport Interchange) Bylaw, the subcommittee supported the resolution subject to certain changes to the Bylaw suggested by the subcommittee. He added that the Administration would move the resolution at the Council meeting on 18 March 1998, as reported earlier.

The meeting ended at 3:50 pm.

Provisional Legislative Council Secretariat
11 March 1998