Provisional Legislative Council

PLC Paper No. CB(2)527

Ref. CB2/SS/4/97

Paper for the House Committee meeting
on 7 November 1997

Report of the Subcommittee on subsidiary legislation gazetted on 17 October 1997
relating to fee increases

Purpose

This paper reports on the deliberations of the Subcommittee on subsidiary legislation gazetted on 17 October 1997 relating to fee increases.

The subsidiary legislation

2.The following eight Regulations were gazetted on 17 October 1997 and tabled in the Council on 22 October 1997. The deadline for amendments to the subsidiary legislation is 19 November 1997, or 26 November 1997 if extended by resolution. A brief description of the fee increases proposed under the eight Regulations is as follows -

1. Pesticides (Amendment) Regulation 1997

   To increase fees charged in connection with registration of pesticides and the issue of licences or permits to import, manufacture, sell and/or supply and possess any pesticide by 7% to 15%. The Regulation will come into operation on 28 November 1997.

2. Marine Parks and Marine Reserves (Amendment) Regulation 1997

   To increase the fees charged for the first issue and renewal of various permits in connection with the use of marine parks and marine reserve by about 5.8%, and to provide for a free renewal service for a fishing permit. The Regulation will come into operation on 28 November 1997.

3. Country Parks and Special Areas (Amendment) Regulation 1997

   To increase certain permit fees payable in connection with the use of country parks or special areas by 2% to 24%. The Regulation will come into operation on 28 November 1997.

4. Dutiable Commodities (Amendment) Regulation 1997

   To increase the fees charged for commercial activities related to dutiable commodities. The proposed increases represent the second year of the five-year-phased programme to achieve full cost recovery. The Regulation will come into operation on 1 December 1997.

5. Mines (Safety) (Amendment) Regulation 1997

   To increase the fees payable for the issue, renewal and endorsement of mine blasting certificates.

6. Mining (General) (Amendment) Regulation 1997

   To increase various rents, premiums and fees payable under the Mining (General) Regulations (Cap. 285 sub. leg.).

7. Dangerous Goods (Government Explosives Depots) (Amendment) Regulation 1997

   To increase the fees payable for storage of explosives or explosive accessories in Government Explosive Depots and for delivery of explosives or explosive accessories from such depots.

8. Dangerous Goods (General) (Amendment) Regulation 1997

   To increase the fees payable for the grant or renewal of licences or permits relating to manufacture, storage, movement and discharge of certain dangerous goods in category 1 (explosives), and the issue of a duplicate of and the making of an alteration or addition to, or endorsement on, such licences or permits.

The fees under items (e)-(h) are proposed to be increased by about 14% and to come into effect on 28 November 1997.

The Subcommittee

3.At the House Committee meeting on 24 October 1997, a Subcommittee was formed to study the eight Regulations. Under the chairmanship of Hon CHAN Kam-lam, the Subcommittee held one meeting with the Administration on 31 October 1997. A membership list of the Subcommittee is at Appendix.

Deliberations of the Subcommittee

4.The Subcommittee agrees to support the eight Regulations. A summary of the deliberations of the Subcommittee is in the following paragraphs.

Pesticides (Amendment) Regulation 1997

5.Members have noted that the approval authority for issuing licences/permits has already been delegated from staff at deputy director level to professional grade or senior professional grade, depending on toxicity of the pesticides. Members have accepted the Administration's advice that further cost cutting is not feasible if the current standard of control is to be maintained and the public interest is to be safeguarded.

Marine Parks and Marine Reserves (Amendment) Regulation 1997
Country Parks and Special Areas (Amendment) Regulation 1997

6.On the Marine Parks and Marine Reserves (Amendment) Regulation 1997, members have noted that the cost computation for increasing the fees for the issue and renewal of all types of permits (except fishing permits) from $205 to $217 is made on the basis of 10 estimated cases for the coming year. In view of the small number of cases involved and its minimal impact on Government revenue, some members have queried the need to require the public to apply for permits for the use of marine parks and marine reserves e.g. to barbecue and camp. They are also concerned whether the public is aware of the requirement to apply for permits in connection with such activities and the effectiveness of the enforcement action taken against persons without permission.

7.The Administration has advised that for the effective control and management of marine parks and marine reserves and in order to safeguard public safety, a person has to apply for a permit in order to conduct certain activities in a marine park or marine reserve. The Marine Parks Division of the Agriculture and Fisheries Department is responsible for the issue of permits in connection with the management of marine parks and marine reserves among its other duties. While a person who commits an offence under the Regulation may be prosecuted, it is the normal practice for staff to issue verbal warning before taking prosecution action. Since permits are required for conducting certain activities in country parks, it is only equitable that similar requirement should be imposed on marine parks and marine reserves. As the scheme of marine parks and marine reserves was only implemented last year, the number of applications for permits was relatively small. However, with further development of marine parks and marine reserves, the number of applications is expected to rise.

8.While members agree to support the Regulation, they have requested the Administration to conduct a review on the following aspects : the policy of requiring permits for the use of marine parks and marine reserves; the need for publicity to enhance public awareness of the requirement for permits; and the effectiveness of the existing measures to control activities conducted in marine parks and marine reserves. The Subcommittee has proposed that the matter be followed up by the Panel on Environmental Affairs.

Dutiable Commodities (Amendment) Regulation 1997

9.Members are concerned about the hefty fee increases proposed under the Regulation. The Administration has explained that a costing review of the licence fees and the fees for related services provided under the Dutiable Commodities Ordinance (Cap. 109) was conducted in 1994-95. The review revealed that the fees, most of which were set in 1963 when the Ordinance was first enacted, were substantially below cost. To keep in line with the Government policy to recover the full cost of providing the services and to avoid a sharp increase, the Administration has proposed to revise the fees by phases to achieve full cost recovery over a period of five years. The first phase of the revision was implemented in December 1996. The proposed fee increases will have minimal impact on general inflation. The Dutiable Commodities Customers Liaison Group which comprises representatives from the dutiable commodities trade has been briefed and has not raised objection to the proposed fee revision. Members find the Administration's explanation acceptable.

Mines (Safety) (Amendment) Regulation 1997
Mining (General) (Amendment) Regulation 1997
Dangerous Goods (Government Explosives Depots) (Amendment) Regulation 1997
Dangerous Goods (General) (Amendment) Regulation 1997

10.Members have noted that the Civil Engineering Department has managed to maintain the performance pledges to issue the licence to remove explosives within a turn-around time of one working day. It has also been able to reduce the pledged turn-around time for issuing other licences/permits by one working day from 7-8 working days to 6-7 working days. On whether the fees level can be reduced as a result of the efficiency initiatives having been achieved, the Administration has advised that costing reviews are normally conducted every four years, and the last one was conducted in 1994-95. Any changes in cost will be taken into account in the next costing review. For the current exercise, the fees are proposed to be increased to the 1997-98 price level, in accordance with the movement of the Government Consumption Expenditure Deflator from 1995-96 to 1997-98.

Recommendation

11.The Subcommittee recommends that the eight items of subsidiary legislation be supported.

Advice sought

12.Members are requested to support the recommendation of the Subcommittee.

Provisional Legislative Council Secretariat
5 November 1997

---

Appendix

Subcommittee on subsidiary legislation gazetted on 17 October 1997 relating to fee increases

Membership list

Total : 6 Members