LC Paper No. CB(3) 1904/98-99

LEGISLATIVE COUNCIL

MINUTES
No. 42
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Minutes of the meeting held on Wednesday 23 June 1999 at 2:30 pm
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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 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
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
Dr the Hon Philip WONG Yu-hong
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 Timothy FOK Tsun-ting, JP
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 Edward HO Sing-tin, JP
Prof the Hon NG Ching-fai
The Hon WONG Yung-kan

Public officers attending:

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

Mr Rafael HUI Si-yan, GBS, JP
The Financial Secretary

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

Mr Gordon SIU Kwing-chue, JP
Secretary for Planning, Environment and Lands

Mr Nicholas NG Wing-fui, JP
Secretary for Transport

Mr Joseph WONG Wing-ping, GBS, JP
Secretary for Education and Manpower

Miss Denise YUE Chung-yee, JP
Secretary for the Treasury

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

Mr David LAN Hong-tsung, JP
Secretary for Home Affairs

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

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

Miss Yvonne CHOI Ying-pik, JP
Secretary for Trade and Industry

Mrs Rebecca LAI KO Wing-yee, JP
Secretary for Financial Services
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 LegislationL.N. No.
1.Public Health and Municipal Services Ordinance (Public Markets) (Designation and Amendment of Tenth Schedule) (No.3) Order 1999154/99
2.Declaration of Markets in the Urban Council Area (Amendment) (No.2) Declaration 1999155/99
3.Conservancy (Urban Council) (Amendment) Bylaw 1999156/99
4.Prevention of Bribery (Amendment) Ordinance 1999 (20 of 1999) (Commencement) Notice 1999157/99

Sessional Papers

No. 130-Report of changes to the approved Estimates of Expenditure approved during the final quarter of 1998-99
(Public Finance Ordinance : Section 8)

No. 131-Statement of Accounts of the Customs and Excise Service Welfare Fund together with the Director of Audit's Report (1998-99)

Report

Report of the Bills Committee on Companies (Amendment) Bill 1999

Questions

1. Hon Emily LAU asked Question 1.

The Secretary for Information Technology and Broadcasting replied.

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

2. Question 2 was withdrawn.

3. Hon CHENG Kai-nam asked Question 3.

The Secretary for Planning, Environment and Lands replied.

Eight Members asked supplementaries and the Secretary for Planning, Environment and Lands replied.

4. Hon Ambrose CHEUNG asked Question 4.

The Secretary for Security replied.

Six Members asked supplementaries and the Secretary for Security replied.

5. Hon LAU Kong-wah asked Question 5.

The Secretary for Transport replied.

Seven Members asked supplementaries and the Secretary for Transport replied.

6. Hon YEUNG Yiu-chung asked Question 6.

The Secretary for Trade and Industry replied.

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

Written replies to Questions 7 to 19 were tabled for Members" information.

Bills

First Reading

Statute Law (Miscellaneous Provisions) Bill 1999
Customs and Excise Service Children's Education Trust Fund Bill
Lingnan University Bill
Adaptation of Laws (No.18) Bill 1999
Supplementary Appropriation (1998-99) 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

Statute Law (Miscellaneous Provisions) Bill 1999

The Secretary for Justice 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.

Customs and Excise Service Children's Education Trust Fund Bill

The Secretary for Trade and Industry 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.

Lingnan University Bill

The Secretary for Education and Manpower 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.

Adaptation of Laws (No.18) Bill 1999

The Secretary for Information Technology and Broadcasting 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.

Supplementary Appropriation (1998-99) Bill 1999

The Secretary for the Treasury 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.

Companies (Amendment) Bill 1999

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 10 March 1999 resumed.

Hon Albert HO, Chairman of the Bills Committee on Companies (Amendment) Bill 1999, addressed the Council on the Report of the Bills Committee on the Bill.

The Secretary for Financial Services replied.

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 Companies (Amendment) Bill 1999.

Question that clauses 1 to 4, 6 to 24 and 28 to 44 stand part of the Bill proposed, put and agreed to.

Question that clauses 5, 25, 26 and 27 stand part of the Bill proposed.

The Secretary for Financial Services moved amendments to clauses 5, 25, 26 and 27 and addressed the Committee.

A Member spoke on the amendments.

Question on the amendments put and agreed to.

Question that clauses 5, 25, 26 and 27, as amended, stand part of the Bill proposed, put and agreed to.

Question that the schedule stand part of the Bill proposed.

The Secretary for Financial Services moved amendments to the schedule and addressed the Committee.

Question on the amendments put and agreed to.

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

The Council then resumed.

Third Reading

The Secretary for Financial Services reported that

    the Companies (Amendment) Bill 1999
had passed through Committee with amendments. She 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.7) Bill 1999

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 10 March 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.7) Bill 1999.

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

Question that schedules 1 to 5 and 7 stand part of the Bill proposed, put and agreed to.

Question that schedule 6 stand part of the Bill proposed.

The Secretary for Financial Services moved amendments to schedule 6 and addressed the Committee.

Question on the amendments put and agreed to.

Question that schedule 6, as amended, stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Secretary for Financial Services reported that

    the Adaptation of Laws (No.7) Bill 1999
had passed through Committee with amendments. She 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.14) 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.14) Bill 1998.

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

Question that schedules 1 to 24 stand part of the Bill proposed.

The Secretary for Home Affairs moved amendments to schedules 1 to 24 and addressed the Committee.

Question on the amendments put and agreed to.

Question that schedules 1 to 24, as amended, stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Secretary for Home Affairs reported that

    the Adaptation of Laws (No.14) 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.

Adaptation of Laws (No.18) Bill 1998

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 20 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.18) Bill 1998.

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

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

Question that schedules 2 to 13 stand part of the Bill proposed.

The Secretary for Home Affairs moved amendments to schedules 2 to 13 and addressed the Committee.

Question on the amendments put and agreed to.

Question that schedules 2 to 13, as amended, stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Secretary for Home Affairs reported that

    the Adaptation of Laws (No.18) 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.

Adaptation of Laws (No.14) Bill 1999

Resumption of Second Reading debate

The debate on the Second Reading which had been moved on 19 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 Adaptation of Laws (No.14) Bill 1999.

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

Question that schedules 1 to 11 stand part of the Bill proposed, put and agreed to.

The Council then resumed.

Third Reading

The Secretary for Home Affairs reported that

    the Adaptation of Laws (No.14) 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.

Members' Motions

The Cox Report

Hon LAU Kong-wah moved the following motion:

That this Council deeply regrets that the Cox Report, recently released by a special committee of the House of Representatives of the United States of America, made unsubstantiated accusations that China had stolen from the United States confidential information on military technology; these accusations involve the Hong Kong Special Administrative Region (HKSAR) and have seriously affected the trade relations between China (including Hong Kong) and the United States and the exchanges between the two peoples; at the same time, this Council supports the HKSAR Government's continuing to strictly enforce controls over the import and export of strategic commodities, and calls for the Mainland and Hong Kong to continue to actively promote cultural, technological, economic and academic exchanges with the people of the United States.

Question on Hon LAU Kong-wah's motion proposed.

The President stated that Hon SIN Chung-kai 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 SIN Chung-kai moved the following amendment to Hon LAU Kong-wah's motion and addressed the Council:

To delete "China had stolen" after "made unsubstantiated accusations that" and substitute with "Hong Kong had been used to steal and transfer"; to delete "; these accusations involve the Hong Kong Special Administrative Region (HKSAR) and have" and substitute with ", which may"; to delete "affected" after "seriously" and substitute with "affect"; to delete "China (including Hong Kong)" and substitute with "Hong Kong"; to delete "and the exchanges between the two peoples"; and to delete "calls for the Mainland and" and substitute with "urges the Government to vigorously explain to the overseas communities, particularly the United States Congress, the Import and Export Ordinance and stringent control measures in Hong Kong, and to make efforts to ensure that Hong Kong will continue to enjoy the relatively lenient controls, as compared with the Mainland, over the import and export of strategic commodities; this Council also encourages".

Question on Hon SIN Chung-kai's amendment to Hon LAU Kong-wah's motion proposed.

14 Members spoke on the motion and the amendment.

Hon LAU Kong-wah spoke on the amendment.

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

Question on Hon SIN Chung-kai's amendment to Hon LAU Kong-wah's motion put.

Hon SIN Chung-kai 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, 24 were present, 14 were in favour of the amendment, eight against it and two abstained; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 27 were present, 14 were in favour of the amendment and 12 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 LAU Kong-wah replied.

Hon James TO sought the President's approval for him to clarify some remarks made about him by Hon LAU Kong-wah in his reply. The President stated that he could only clarify the contents of his own speech.

In response to the requests of Hon LEE Wing-tat and Dr Hon YEUNG Sum to speak, the President suspended the meeting at 6:59 pm.

At 7:05 pm, the Council resumed.

The President stated that there was a precedent in which she allowed a Member who had not spoken on a motion to speak after the mover of a motion had replied. Subsequent to that incident, she had invited the Committee on Rules of Procedure to review the relevant rules so as to avoid debates dragging on indefinitely. Hence, she would now allow Members who had not spoken earlier to speak and Hon LAU Kong-wah would be allowed to reply again.

Another six Members spoke on the motion.

Hon LAU Kong-wah replied a second time.

Question on Hon LAU Kong-wah's motion as amended by Hon SIN Chung-kai put and agreed to.

Enhancing Hong Kong's status as an aviation centre

Hon FUNG Chi-kin moved the following motion and addressed the Council:

That, in view of the great potential and competitiveness of the Hong Kong International Airport, this Council urges the Government to comprehensively review the existing civil aviation policy and the development strategies for related services, in accordance with Article 128 of the Basic Law which stipulates that "the Government of the Hong Kong Special Administrative Region shall provide conditions and take measures for the maintenance of the status of Hong Kong as a centre of international and regional aviation"; in the review, active consideration should be given to opening up the aviation market so as to explore new routes and provide more choices for the tourism and freight forwarding industries; the Government should also study vigorously the combined advantages offered by the new airport and the fine harbour in developing air and sea freight transhipment services; furthermore, the Government should seriously consider the aspirations of the industries and discuss with the Airport Authority, under the premise of ensuring high quality services and having regard to the present economic situation, the formulation of new long-term financial arrangements for the new airport and reduce its various operating costs and charges as far as possible, so as to ease the burden on the industries and promote the development of the tourism and other related service industries.

At 7:39 pm, the President's Deputy took the chair during the temporary absence of the President.

Question on Hon FUNG Chi-kin's motion proposed.

The President's Deputy stated that Hon Fred LI would move an amendment to the motion and that Hon MA Fung-kwok would also move an amendment to Hon Fred LI's proposed amendment. In accordance with the Rules of Procedure, the motion, the amendment, and the amendment to the amendment would be debated together in a joint debate.

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

To delete "active consideration should be given to opening up the aviation market so as to explore new routes and provide more choices for the tourism and freight forwarding industries" and substitute with "the Government should abolish the "one route, one airline" policy, open up the "fifth freedom" rights, introduce competition and provide consumers with more and better choices of flight services, so as to promote the development of the tourism and freight forwarding industries"; to delete "aspirations of" from "the Government should seriously consider the aspirations of" and substitute with "difficulties faced by"; to add "," after "the industries and"; to delete "discuss" from "discuss with the Airport Authority" and substitute with "in conjunction"; and to delete "under the premise of ensuring high quality services and having regard to the present economic situation, the formulation of new long-term financial arrangements for the new airport and reduce its various operating costs and charges as far as possible, so as to ease the burden on the industries and promote the development of the tourism and other related service industries" and substitute with "review the financial arrangements for the new airport and the various airport charges, so as to ensure that the new airport can provide high-quality services and maintain its competitive edge".

Question on Hon Fred LI's amendment to Hon FUNG Chi-kin's motion proposed.

Hon MA Fung-kwok moved the following amendment to Hon Fred LI's proposed amendment and addressed the Council:

To add ", in an open manner, encourage more Hong Kong-based operators to actively open new routes, fully utilize the new airport," after "the Government should"; to insert "suitably" before "open up the "fifth freedom" rights"; to delete "more and" after "provide consumers with"; to add "and promote Hong Kong as the hub of international commodity exchange and secure Hong Kong"s status as the Asia-Pacific air freight forwarding centre, so as to support the policy of developing high-technology and high value-added industries in Hong Kong;" after "the tourism and freight forwarding industries;"; and to delete "the financial arrangements for the new airport and" after "review".

Question on Hon MA Fung-kwok's amendment to Hon Fred LI's amendment proposed.

Seven Members spoke on the motion and the amendments.

At 8:48 pm, the President resumed the chair.

Another seven Members spoke on the motion and the amendments.

Hon FUNG Chi-kin spoke on the amendments.

The Secretary for Economic Services spoke on the motion and the amendments.

Question on Hon MA Fung-kwok's amendment to Hon Fred LI's amendment put.

Hon MA Fung-kwok 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, 20 were present, one was in favour of the amendment, 12 against it and seven abstained; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 25 were present, six were in favour of the amendment, eight against it and 10 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 Hon MA Fung-kwok's amendment to Hon Fred LI's amendment was negatived.

Question on Hon Fred LI's amendment to Hon FUNG Chi-kin's motion put.

Hon Fred LI 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, 14 against it and two abstained; while among the Members returned by geographical constituencies through direct elections and by the Election Committee, 25 were present, 15 were in favour of the amendment and nine against it. (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 Hon Fred LI's amendment to Hon FUNG Chi-kin's motion was negatived.

Hon FUNG Chi-kin replied.

Question on Hon FUNG Chi-kin's original motion put and agreed to.

Next Meeting

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

The Council was adjourned at 10:24 pm.

(Mrs Rita FAN) President
Council Chamber
Hong Kong