Council meeting (Minutes) 22 Jul 98

LC Paper No. CB(3) 118/98-99

LEGISLATIVE COUNCIL

MINUTES

No. 4

Minutes of the meeting held on Wednesday 22 July 1998 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
The Hon LEE Kai-ming, 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
The Hon CHAN Kam-lam
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
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 CHIM Pui-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
Dr the Hon TANG Siu-tong, 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

Members absent:

Dr the Hon Philip WONG Yu-hong
The Hon Timothy FOK Tsun-ting, JP

Public officers attending:

The Honourable Mrs Anson CHAN, 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 Joseph WONG Wing-ping, GBS, JP: Secretary for Education and Manpower
Mr Bowen LEUNG Po-wing, JP: Secretary for Planning, Environment and Lands
Mr KWONG Ki-chi, GBS, JP: Secretary for Information, Technology and Broadcasting
Miss Denise YUE Chung-yee, JP: Secretary for the Treasury
Mr Stephen IP Shu-kwan, JP: Secretary for Economic Services
Mr Benedict KWONG Hon-sang, JP: Secretary for Works
Mr David LAN Hong-tsung, JP: Secretary for Home Affairs

Clerks in attendance:

Mr Ricky FUNG Choi-cheung, JP,: Secretary General
Mr LAW Kam-sang, JP,: Deputy Secretary General
Mrs Justina LAM CHENG Bo-ling,: Assistant Secretary General (2)

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. Water Pollution Control (Sewerage) (Amendment) Regulation 1998	281/98
2. Specification of Public Office	282/98
3. Pilotage (Amendment) Order 1998	283/98

Sessional Paper

No. 7-

The Tenth Annual Report of the Ombudsman, June 1998

Questions

1. Hon MA Fung-kwok asked Question 1.

The Secretary for Information, Technology and Broadcasting replied.

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

2. Hon Mrs Selina CHOW asked Question 2.

The Secretary for Trade and Industry replied.

Five Members asked supplementaries and the Secretary for Trade and Industry replied.

3. Hon Andrew CHENG asked Question 3.

The Secretary for Transport replied.

Six Members asked supplementaries and the Secretary for Transport replied.

4. Hon Kenneth TING asked Question 4.

The Secretary for Economic Services replied.

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

5. Hon Emily LAU asked Question 5.

The Secretary for Home Affairs replied.

Three Members asked supplementaries and the Secretary for Home Affairs replied.

6. Hon LEE Wing-tat asked Question 6.

The Chief Secretary for Administration replied.

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

Written replies to Questions 7 to 18 were tabled for Members' information.

Bills

First Reading

Fisheries Protection (Amendment) Bill 1998

The Bill was 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

Fisheries Protection (Amendment) Bill 1998

The Secretary for Economic 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.

Motions

Public Bus Services Ordinance

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

Resolved that the franchise conferring the right on the New World First Bus Services Limited to operate a public bus service on the routes specified in the Schedule of Routes (New World First Bus Services Limited) Order 1998 (L.N. 238 of 1998) and in any subsequent order made by the Chief Executive in Council shall not, for the entire period of the franchise, be subject to sections 27, 28, 29 and 31 in Part V of the Public Bus Services Ordinance.

Question on the resolution proposed.

Five Members spoke on the resolution.

The Secretary for Transport replied.

Question on the resolution put and agreed to.

Employees' Compensation Ordinance

The Secretary for Education and Manpower moved the following resolution and addressed the Council:

Resolved that, with effect from 1 August 1998, the Employees' Compensation Ordinance be amended -

in paragraphs 1(b), 2(b) and 3 of the Third Schedule, by repealing "$160" and substituting "$175";
in the Sixth Schedule, by repealing all the amounts mentioned in column 2 and substituting -

Question on the resolution proposed.

Six Members spoke on the resolution.

The Secretary for Education and Manpower replied.

Question on the resolution put and agreed to.

Pneumoconiosis (Compensation) Ordinance

The Secretary for Education and Manpower moved the following resolution and addressed the Council:

Resolved that, with effect from 1 August 1998, the Pneumoconiosis (Compensation) Ordinance be amended -

in the First Schedule -
1. in Part IIA, by repealing "$2,570" and substituting "$3,180";
2. in Part IV, by repealing "$4,050" and substituting "$4,160";
3. in Part V, by repealing "$70,000" and substituting "$100,000";
4. in Part VI, by repealing "$14,000" and substituting "$16,000";
in the Second Schedule, in paragraphs 1(b), 2(b) and 3 of Part I, by repealing "$160" and substituting "$175".

Question on the resolution proposed.

Six Members spoke on the resolution.

The Secretary for Education and Manpower replied.

Question on the resolution put and agreed to.

Buildings Ordinance

The Secretary for Planning, Environment and Lands moved the following resolution and addressed the Council:

Resolved that the Fifth Schedule to the Buildings Ordinance be amended in area number 3, by repealing everything from and including "MT/RP/1" to and including "1992" and substituting "MTR/G/1 to 3, MTR/RP/1 to 46, MTR/RP/50 to 66 and MTR/RP/101 to 170 dated 29 June 1998".

Question on the resolution proposed, put and agreed to.

Dutiable Commodities Ordinance

The Secretary for the Treasury moved the following resolution and addressed the Council:

Resolved that -

Part III of Schedule 1 to the Dutiable Commodities Ordinance (Cap. 109) is amended in paragraph 1(b), effective 23 June 1998, by repealing "2.89" and substituting "2.00" and effective 1 April 1999, by repealing "2.00" and substituting "2.89".

Question on the resolution proposed.

Three Members spoke on the resolution.

The Secretary for the Treasury replied.

Question on the resolution put and agreed to.

Members' Motions

Ensuring employment opportunities for local personnel engaging in infrastructural projects

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

That, on the premise of accelerating the implementation of infrastructural projects and creating more job opportunities in order to relieve the unemployment situation in the territory, this Council urges that the Government, in drawing up the scope of the relevant contracts, tender specifications and employment provisions, must ensure that local companies can take part and accord priority to providing more employment opportunities for local expertise and workers.

Question on Dr Hon HO Chung-tai's motion proposed. The President stated that Hon David CHU had given notice to move an amendment to the motion. In accordance with the Rules of Procedure, the motion and the proposed amendment would be debated together in a joint debate.

Hon David CHU moved the following amendment to Dr Hon HO Chung-tai's motion and addressed the Council:

To add "and public bodies (including the two railway corporations)" after "this Council urges that the Government"; to delete "scope of" and substitute with "tender evaluation specifications and selecting the consultancy, construction and procurement tenders for"; to delete "tender specifications and employment provisions,"; to delete "accord priority to providing" and substitute with "provide"; and to add "; and if the projects require the engagement of foreign companies possessing specialised technology, then consideration must be given to the arrangements for technology transfer; this Council also urges the Government to set up a commission to formulate new specifications for tender selection, so as to put into effect the above principles and monitor their effective implementation, thereby ensuring fair competition among the people of Hong Kong" after "local expertise and workers".

At 7:03 pm, the President's Deputy took the chair during the temporary absence of the President.

Question on Hon David CHU's amendment to Dr Hon HO Chung-tai's motion proposed.

10 Members spoke on the motion and the amendment.

At 8:05 pm, the President resumed the chair.

Another four Members spoke on the motion and the amendment.

Dr Hon HO Chung-tai spoke on the amendment.

The Secretary for Works spoke on the motion and the amendment.

Question on Hon David CHU's amendment to Dr Hon HO Chung-tai's motion put.

Dr Hon HO Chung-tai 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, 19 were present, 10 were in favour of the amendment and nine against it; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 27 were present, 16 were in favour of the amendment and 10 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.

Dr Hon HO Chung-tai replied.

Question on Dr Hon HO Chung-tai's motion as amended by Hon David CHU put and agreed to.

Restructuring Hong Kong's economy

Hon CHAN Yuen-han moved the following motion and addressed the Council:

That, in view of the undue emphasis laid in recent years on the financial and real estate businesses in Hong Kong's economy, at the expense of its industrial development, resulting in a change in the local economic structure, the loss of its past diversified characteristic, as well as unprecedented employment difficulties faced by local employees, this Council urges the Government to restructure Hong Kong's economy and modify its development strategies, so as to create employment opportunities.

Question on Hon CHAN Yuen-han's motion proposed. The President stated that Hon Christine LOH and Hon SIN Chung-kai had separately given notice to move amendments to the motion. In accordance with the Rules of Procedure, the motion and the two proposed amendments would be debated together in a joint debate.

Hon Christine LOH and Hon SIN Chung-kai spoke on the motion and their proposed amendments respectively.

16 Members spoke on the motion and the amendments.

Hon CHAN Yuen-han spoke on the amendments.

The Secretary for Trade and Industry spoke on the motion and the amendments.

Hon Christine LOH moved the following amendment to Hon CHAN Yuen-han's motion:

To delete "the" from "That, in view of the" and substitute with "business confidence having been shaken"; to delete "undue emphasis laid in recent years on the financial and real estate businesses"; to delete "at the expense of its industrial development, resulting in a change in the local economic structure, the loss of its past diversified characteristic, as well as unprecedented employment difficulties faced by local employees,"; and to delete "urges the Government to restructure Hong Kong's economy and modify its development strategies, so as to" and substitute with "is of the view that the main issues are for the Government to reconsider its economic policy after listening to more public views, and to facilitate local production; and for the public and private sectors to cooperate to revitalize confidence as a whole so as to revive investments, enable the creation of wealth and".

Question on Hon Christine LOH's amendment to Hon CHAN Yuen-han's motion proposed and put.

Hon CHAN Kam-lam 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, 21 were present, nine were in favour of the amendment, 10 against it and two abstained; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 29 were present, 14 were in favour of the amendment, nine against it and five abstained. (Voting record in Appendix II.) Since the question was not agreed by a majority of each of the two groups of Members present, she declared that the amendment was negatived.

Hon SIN Chung-kai moved the following amendment to Hon CHAN Yuen-han's motion:

To delete "undue emphasis laid in recent years on the financial and real estate businesses in Hong Kong's economy, at the expense of its industrial development, resulting in a change in the local economic structure, the loss of its past diversified characteristic, as well as unprecedented employment difficulties faced by local employees" and substitute with "fact that Hong Kong's bubble economy has burst"; to add "Special Administrative Region" after "this Council urges the"; to add ", on the basis of the two major principles that the development direction of any industry should be led by the industry itself and driven by market forces and that conditions favourable to technological development should be created," after "Government"; to delete "restructure" and substitute with "adopt the following measures in order to modify"; to delete "economy " from "Hong Kong's economy" and substitute with "economic structure"; to delete "modify its" from "and modify its development strategies"; to add "enhance the diversified characteristic of the economy and" after "so as to"; to add "more" after "create"; and to add ": (a) to study the feasibility of setting up a centre for technology transfer or formulating measures for technology transfer, so as to facilitate the application of advanced technology in the industrial sector for design, production and the establishment of quality brands; (b) to grant tax concessions for scientific and technological researches, so as to encourage enterprises to conduct such activities and procure advanced equipment; (c) to strengthen liaison between enterprises and the academic circles, such as offering rewards, relaxing secondment restrictions, thereby encouraging cooperation between university teaching staff and the business sector in conducting technological researches and development; (d) to groom high caliber management personnel as well as technical staff with comprehensive knowledge; (e) to set up the second board market or enhance financing channels, so as to assist various trades to overcome difficulties in financing, and establish a technologically innovative manufacturing industry; (f) to provide land at reasonable prices, in order to encourage the development of technologically innovative industry; and (g) to conduct a comprehensive review of the existing policy-making and administrative powers of industrial organizations" after "employment opportunities".

Question on Hon SIN Chung-kai's amendment to Hon CHAN Yuen-han's motion proposed and put.

Hon CHAN Kam-lam 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, 21 were present, five were in favour of the amendment, 13 against it and three abstained; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 29 were present, 14 were in favour of the amendment, nine against it and four abstained. (Voting record in Appendix III.) Since the question was not agreed by a majority of each of the two groups of Members present, she declared that the amendment was negatived.

Hon CHAN Yuen-han replied.

Question on Hon CHAN Yuen-han's original motion put.

Hon CHAN Yuen-han 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, 21 were present, eight were in favour of the motion, six against it and seven abstained; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 28 were present, 15 were in favour of the motion, three against it and nine abstained. (Voting record in Appendix IV.) Since the question was not agreed by a majority of each of the two groups of Members present, she declared that the motion was negatived.

Next Meeting

The President declared that the next meeting of the Council would be held on 29 July 1998 at 2:30 pm.

The Council was adjourned at 11:57 pm.

(Mrs Rita FAN)
President

Council Chamber
Hong Kong