LC Paper No. CB(3) 1840/98-99

LEGISLATIVE COUNCIL

MINUTES
No. 41
___________
Minutes of the meeting held on Wednesday 16 June 1999 at 2:30 pm
___________

Members present:

President
The Hon Mrs Rita FAN, GBS, JP

The Hon Kenneth TING Woo-shou, JP
The Hon James TIEN Pei-chun, JP
The Hon David CHU Yu-lin
The Hon HO Sai-chu, JP
The Hon Cyd HO Sau-lan
The Hon Edward HO Sing-tin, JP
The Hon Albert HO Chun-yan
The Hon Michael HO Mun-ka
Dr the Hon Raymond HO Chung-tai, JP
The Hon LEE Wing-tat
The Hon LEE Cheuk-yan
The Hon Martin LEE Chu-ming, SC, JP
The Hon Eric LI Ka-cheung, JP
Dr the Hon David LI Kwok-po, JP
The Hon Fred LI Wah-ming
Dr the Hon LUI Ming-wah, JP
The Hon NG Leung-sing
Prof the Hon NG Ching-fai
The Hon Margaret NG
The Hon Mrs Selina CHOW LIANG Shuk-yee, JP
The Hon Ronald ARCULLI, JP
The Hon MA Fung-kwok
The Hon James TO Kun-sun
The Hon CHEUNG Man-kwong
The Hon Ambrose CHEUNG Wing-sum, JP
The Hon HUI Cheung-ching
The Hon Christine LOH
The Hon CHAN Kwok-keung
The Hon CHAN Yuen-han
The Hon Bernard CHAN
The Hon CHAN Wing-chan
Dr the Hon LEONG Che-hung, JP
The Hon Mrs Sophie LEUNG LAU Yau-fun, JP
The Hon LEUNG Yiu-chung
The Hon Gary CHENG Kai-nam
The Hon SIN Chung-kai
The Hon Andrew WONG Wang-fat, JP
Dr the Hon Philip WONG Yu-hong
The Hon WONG Yung-kan
The Hon Jasper TSANG Yok-sing, JP
The Hon Howard YOUNG, JP
Dr the Hon YEUNG Sum
The Hon YEUNG Yiu-chung
The Hon LAU Chin-shek, JP
The Hon LAU Kong-wah
The Hon LAU Wong-fat, GBS, JP
The Hon Mrs Miriam LAU Kin-yee, JP
The Hon Ambrose LAU Hon-chuen, JP
The Hon Emily LAU Wai-hing, JP
The Hon CHOY So-yuk
The Hon Andrew CHENG Kar-foo
The Hon SZETO Wah
The Hon LAW Chi-kwong, JP
The Hon TAM Yiu-chung, JP
The Hon FUNG Chi-kin
Dr the Hon TANG Siu-tong, JP

Members absent:

The Hon LEE Kai-ming, JP
The Hon CHAN Kam-lam
The Hon Timothy FOK Tsun-ting, JP

Public officers attending:

Mr Michael SUEN Ming-yeung, JP
The Chief Secretary for Administration

The Honourable Donald TSANG Yam-kuen, JP
The Financial Secretary

The Honourable Elsie LEUNG Oi-sie, JP
The Secretary for Justice

Mr CHAU Tak-hay, JP
Secretary for Trade and Industry

Mr Nicholas NG Wing-fui, JP
Secretary for Transport

Mr Dominic WONG Shing-wah, JP
Secretary for Housing

Mrs Katherine FOK LO Shiu-ching, JP
Secretary for Health and Welfare

Mr Rafael HUI Si-yan, GBS, JP
Secretary for Financial Services

Mr Stephen IP Shu-kwan, JP
Secretary for Economic Services

Mrs Regina IP LAU Suk-yee, JP
Secretary for Security

Mrs Rita LAU NG Wai-lan, JP
Secretary for Information Technology and Broadcasting

Clerks in attendance:

Mr Ricky FUNG Choi-cheung, JP,
Secretary General

Mr LAW Kam-sang, JP,
Deputy Secretary General

Ms Pauline NG Man-wah,
Assistant Secretary General (1)

Papers

The following papers were laid on the table pursuant to Rule 21(2) of the Rules of Procedure:

Subsidiary Legislation L.N. No.
1.Employees' Compensation Ordinance (Amendment of Second Schedule) Order 1999 146/99
2.Occupational Safety and Health Ordinance (Amendment of Schedule 2) Order 1999 147/99
3.Banking Ordinance (Declaration under Section 2(14)(d)) (No.2) Notice 1997 (Amendment) Notice 1999 148/99
4.Smoking (Public Health) (Amendment) Ordinance 1997 (93 of 1997) (Commencement) Notice 1999 149/99
5.Smoking (Public Health) (Amendment) Regulation 1998 (L.N. 13 of 1998) (Commencement) Notice 1999 150/99
6.Merchant Shipping (Safety) (Subdivision and Damage Stability of Cargo Ships over 100 Metres in Length) (Amendment) Regulation 1999 (L.N. 99 of 1999) (Commencement) Notice 1999 151/99
7.Travel Agents (Amendment) Regulations 1988 (L.N. 240 of 1988) (Commencement) Notice 1999 152/99
8.Dogs and Cats (Amendment) Ordinance 1997(97 of 1997) (Commencement) Notice 1999 153/99

Questions

1. Dr Hon David LI asked Question 1.

The Secretary for Security replied.

Nine Members asked supplementaries and the Secretary for Security replied.

2. Hon James TO asked Question 2.

The Secretary for Housing replied.

Seven Members asked supplementaries and the Secretary for Housing replied.

3. Hon Emily LAU asked Question 3.

The Chief Secretary for Administration replied.

Four Members asked supplementaries and the Chief Secretary for Administration replied.

4. Hon LEUNG Yiu-chung asked Question 4.

The Secretary for Economic Services replied.

Eight Members asked supplementaries and the Secretary for Economic Services replied.

5. Dr Hon HO Chung-tai asked Question 5.

The Secretary for Information Technology and Broadcasting replied.

Nine Members asked supplementaries and the Secretary for Information Technology and Broadcasting replied.

Written replies to Questions 6 to 19 were tabled for Members' information.

Bills

First Reading

Import and Export (Amendment) Bill 1999

Protection of Non-Government Certificates of Origin (Amendment) Bill 1999

Adaptation of Laws (No.16) Bill 1999 Occupational Retirement Schemes (Amendment) Bill 1999

The Bills were read the first time and ordered to be set down for Second Reading pursuant to Rule 53(3) of the Rules of Procedure.

Second Reading

Import and Export (Amendment) Bill 1999
Protection of Non-Government Certificates of Origin (Amendment) Bill 1999

The Secretary for Trade and Industry moved the Second Reading and addressed the Council on each of the above two Bills.

Question on the Second Reading proposed. The President stated that in accordance with Rule 54(4) of the Rules of Procedure, the debates on the above Bills were adjourned and the Bills were referred to the House Committee.

Adaptation of Laws (No.16) Bill 1999

The Secretary for Health and Welfare moved the Second Reading and addressed the Council.

Question on the Second Reading proposed. The President stated that in accordance with Rule 54(4) of the Rules of Procedure, the debate was adjourned and the Bill was referred to the House Committee.

Occupational Retirement Schemes (Amendment) Bill 1999

The Secretary for Financial Services moved the Second Reading and addressed the Council.

Question on the Second Reading proposed. The President stated that in accordance with Rule 54(4) of the Rules of Procedure, the debate was adjourned and the Bill was referred to the House Committee.

Labour Tribunal (Amendment) Bill 1999

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 21 April 1999 resumed.

Question on the Second Reading put and agreed to.

Bill read the second time and committed to a Committee of the whole Council.

Committee Stage

The Council went into Committee and considered the Labour Tribunal (Amendment) Bill 1999.

Question that clauses 1 to 19 stand part of the Bill proposed, put and agreed to.

Question that the schedule stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Chief Secretary for Administration reported that

the Labour Tribunal (Amendment) Bill 1999

had passed through Committee without amendment. He moved that the Bill be read the third time and do pass.

Question on the Third Reading proposed, put and agreed to.

Bill read the third time and passed.

Adaptation of Laws (No.13) Bill 1998

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 6 January 1999 resumed.

Question on the Second Reading put and agreed to.

Bill read the second time and committed to a Committee of the whole Council.

Committee Stage

The Council went into Committee and considered the Adaptation of Laws (No.13) Bill 1998.

Question that clauses 1, 2 and 3 stand part of the Bill proposed, put and agreed to.

Question that schedules 1, 2, 4, 5 and 6 stand part of the Bill proposed, put and agreed to.

Question that schedule 3 stand part of the Bill proposed.

The Chief Secretary for Administration moved an amendment to schedule 3 and addressed the Committee.

Question on the amendment put and agreed to.

Question that schedule 3, as amended, stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Chief Secretary for Administration reported that

the Adaptation of Laws (No.13) Bill 1998

had passed through Committee with amendment. He moved that the Bill be read the third time and do pass.

Question on the Third Reading proposed, put and agreed to.

Bill read the third time and passed.

Adaptation of Laws (No.15) Bill 1998

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 6 January 1999 resumed.

Question on the Second Reading put and agreed to.

Bill read the second time and committed to a Committee of the whole Council.

Committee Stage

The Council went into Committee and considered the Adaptation of Laws (No.15) Bill 1998.

Question that clauses 1, 2 and 3 stand part of the Bill proposed, put and agreed to.

Question that schedules 1 and 2 stand part of the Bill proposed, put and agreed to.

Question that schedules 3 and 4 stand part of the Bill proposed.

The Chief Secretary for Administration moved amendments to schedules 3 and 4.

Question on the amendments put and agreed to.

Question that schedules 3 and 4, as amended, stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Chief Secretary for Administration reported that

the Adaptation of Laws (No.15) Bill 1998

had passed through Committee with amendments. He moved that the Bill be read the third time and do pass.

Question on the Third Reading proposed, put and agreed to.

Bill read the third time and passed.

Small Claims Tribunal (Amendment) Bill 1999

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 21 April 1999 resumed.

Question on the Second Reading put and agreed to.

Bill read the second time and committed to a Committee of the whole Council.

Committee Stage

The Council went into Committee and considered the Small Claims Tribunal (Amendment) Bill 1999.

Question that clauses 1 to 18 stand part of the Bill proposed, put and agreed to.

Question that the schedule stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Chief Secretary for Administration reported that

the Small Claims Tribunal (Amendment) Bill 1999

had passed through Committee without amendment. He moved that the Bill be read the third time and do pass.

Question on the Third Reading proposed, put and agreed to.

Bill read the third time and passed.

Roads and Tunnels Legislation (Miscellaneous Amendments) Bill 1999

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 26 May 1999 resumed.

Question on the Second Reading put and agreed to.

Bill read the second time and committed to a Committee of the whole Council.

Committee Stage

The Council went into Committee and considered the Roads and Tunnels Legislation (Miscellaneous Amendments) Bill 1999.

Question that clauses 1 and 2 stand part of the Bill proposed, put and agreed to.

Question that schedules 1 to 7 stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Secretary for Transport reported that

the Roads and Tunnels Legislation (Miscellaneous Amendments) Bill 1999

had passed through Committee without amendment. He moved that the Bill be read the third time and do pass.

Question on the Third Reading proposed, put and agreed to.

Bill read the third time and passed.

Motions

Proposed resolution under the Road Traffic Ordinance

The Secretary for Transport moved the following motion and addressed the Council:

Resolved that the period for which there remains in force the limit on the number of vehicles which may be registered as public light buses specified in the Public Light Buses (Limitation on Number) Notice (Cap. 374 sub. leg.) and extended to 20 June 1999 by Legal Notice No. 306 of 1997, be further extended to 20 June 2001.

Question on the motion proposed.

Two Members spoke on the motion.

The Secretary for Transport replied.

Question on the motion put and agreed to.

Members' Motions

Proposed resolution under the Interpretation and General Clauses Ordinance

Dr Hon HO Chung-tai moved the following motion and addressed the Council:

Resolved that in relation to the -

  1. Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation, published as Legal Notice No. 124 of 1999; and

  2. Estate Agents (Determination of Commission Disputes) Regulation, published as Legal Notice No. 125 of 1999,

and laid on the table of the Legislative Council on 26 May 1999, the period referred to in section 34(2) of the Interpretation and General Clauses Ordinance (Cap. 1) for amending subsidiary legislation be extended under section 34(4) of that Ordinance to the meeting of 30 June 1999.

Question on the motion proposed, put and agreed to.

Privatisation of Government departments

Before calling Hon LEE Cheuk-yan to move his motion, the President stated that, having regard to the special circumstances and the recommendation of the House Committee, she had granted leave for Hon LEE Cheuk-yan to move the motion on "Privatisation of Government departments" without the requisite notice. Hon LEE Cheuk-yan's original motion was on "Excess tariffs collected by the CLP" which she had no power to disallow under the Rules of Procedure. Members could, however, decide how that motion should be treated. At the same time, she had decided to invite the Committee on Rules of Procedure to consider the procedural aspects of the issue. The President said she noticed that some Members had commented on the President's ruling on Hon LEE Cheuk-yan's motion at the House Committee meeting held on 4 June 1999. She stated that it had been a cherished tradition of the Council that Members would not comment on the President's rulings at meetings of the Council, its Committees nor in public; also, it was against the principle of fairness to make such comments in the absence of the President. In order to uphold the Council's dignity and that of the office of the President, she asked Members to respect the tradition. She would welcome Members' speaking with her direct if they had opinions on her rulings.

The President then invited Hon Lee Cheuk-yan to move his motion.

Hon LEE Cheuk-yan moved the following motion and addressed the Council:

That, in view of the Government's plans to corporatise, privatise or demutualise a considerable number of government departments and public organisations, this Council urges the Government not to blindly believe in the effectiveness of privatisation, and to face up to the impacts of such plans on the job security of the staff concerned and on the quality of service; this Council also urges the Government, before deciding whether privatisation programmes should be implemented, to fully consult the staff concerned and the public and to gain their acceptance and support, as well as to formulate in detail mechanisms for the executive authority, the legislature and the public to monitor the quality of service and the charging of fees.

Question on Hon LEE Cheuk-yan's motion proposed.

The President stated that Hon LAU Kong-wah would move an amendment to the motion. In accordance with the Rules of Procedure, the motion and the amendment would be debated together in a joint debate.

Hon LAU Kong-wah moved the following amendment to Hon LEE Cheuk-yan's motion and addressed the Council:

To delete "not to blindly believe in the effectiveness of privatisation" and substitute with "to retain its responsibility for providing public services while striving to enhance cost-effectiveness, introduce mechanisms for competition, improve service quality and reduce its financial burden; at the same time, this Council requests the Government to clearly specify the criteria for determining which departments and organisations are suitable for corporatisation, privatisation or demutualisation"; to delete "and on" from "job security of the staff concerned and on" and substitute with ","; and to add "and the charging of fees" after "the quality of service".

Question on Hon LAU Kong-wah's amendment to Hon LEE Cheuk-yan's motion proposed.

A Member spoke on the motion and the amendment.

At 5:05 pm, the President's Deputy took the chair during the temporary absence of the President.

11 Members spoke on the motion and the amendment.

At 6:20 pm, the President resumed the chair.

Another 10 Members spoke on the motion and the amendment.

Hon LEE Cheuk-yan spoke on the amendment.

The Financial Secretary spoke on the motion and the amendment.

Question on Hon LAU Kong-wah's amendment to Hon LEE Cheuk-yan's motion put.

Hon James TIEN claimed a division. The President then ordered the Council to divide under Rule 47(1) of the Rules of Procedure.

The President announced that among the Members returned by functional constituencies, 27 were present, 16 were in favour of the amendment and 11 against it; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 24 were present, 21 were in favour of the amendment and two against it. (Voting record in Appendix I.) Since the question was agreed by a majority of each of the two groups of Members present, she declared that the amendment was agreed.

Hon LEE Cheuk-yan replied.

Question on Hon LEE Cheuk-yan's motion as amended by Hon LAU Kong-wah put and agreed to.

Facilitating the financial industry

Hon Bernard CHAN moved the following motion and addressed the Council:

That, in view of the Government's continuing effort to open and liberalize the financial market, this Council urges the Government to ensure a level playing field for all local and overseas market participants; apart from being a market regulator, the Government should act as an active facilitator by designating specific officials to help sustain local financial development and promote Hong Kong's financial services throughout the world.

Question on Hon Bernard CHAN's motion proposed.

The President stated that Hon FUNG Chi-kin would move an amendment to the motion. In accordance with the Rules of Procedure, the motion and the amendment would be debated together in a joint debate.

Hon FUNG Chi-kin moved the following amendment to Hon Bernard CHAN's motion and addressed the Council:

To delete "level playing field" and substitute with "fair, liberal and highly open operating environment"; to delete "being a market regulator" and substitute with "regulating the market appropriately"; to delete "designating specific officials to help sustain local financial development and promote" and substitute with "strengthening first the functions of the departments responsible for financial affairs in promoting"; and to add ", and secondly, in promoting market development, give due consideration to the market's overall capacity, prevent all forms of manipulative and unfair competition, expedite the training of local professionals including qualified supervisory personnel in the financial sector, and ensure that operators of small and medium businesses have room for survival and development, so as to enhance Hong Kong's status as a financial centre and facilitate a balanced, sustainable and healthy development of the market" after "Hong Kong's financial services throughout the world".

Question on Hon FUNG Chi-kin's amendment to Hon Bernard CHAN's motion proposed.

10 Members spoke on the motion and the amendment.

Hon Bernard CHAN spoke on the amendment.

The Secretary for Financial Services spoke on the motion and the amendment.

Question on Hon FUNG Chi-kin's amendment to Hon Bernard CHAN's motion put.

Hon FUNG Chi-kin claimed a division. The President then ordered the Council to divide under Rule 47(1) of the Rules of Procedure.

The President announced that among the Members returned by functional constituencies, 17 were present, 10 were in favour of the amendment and seven against it; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 20 were present, 14 were in favour of the amendment, four against it and one abstained. (Voting record in Appendix II.) Since the question was agreed by a majority of each of the two groups of Members present, she declared that the amendment was agreed.

Hon Bernard CHAN replied.

Question on Hon Bernard CHAN's motion as amended by Hon FUNG Chi-kin put and agreed to.

Next Meeting

The President declared that the next meeting of the Council would be held on 23 June 1999 at 2:30 pm.

The Council was adjourned at 9:44 pm.


(Mrs Rita FAN)
President

Council Chamber
Hong Kong