Legislative Council

LC Paper No. CB(2)34/99-00

Ref : CB2/SS/11/98

Purpose

This paper reports on the deliberations of the subcommittee on the Post Office (Amendment) Regulation 1999 and the Telecommunication (Amendment) (No. 2) Regulation 1999.

The Subcommittee

2. At the House Committee meeting on 24 September 1999, Members agreed to form a subcommittee to study the following three items of subsidiary legislation gazetted on 9 July and 20 August 1999 -

1. Post Office (Amendment) Regulation 1999;

2. Telecommunication (Amendment) (No. 2) Regulation 1999; and

3. Solicitors (Professional Indemnity) (Amendment) Rules 1999.

3. Under the chairmanship of Hon Ambrose LAU Hon-chuen, the subcommittee has held one meeting with the Administration. The membership list of the subcommittee is attached in the Appendix.

Deliberations of the Subcommittee

Post Office (Amendment) Regulation 1999

4. The Regulation amends the Post Office Regulations (Cap. 98 sub. leg.) to -

1. repeal the provisions concerning local money orders;

2. provide that the Postmaster General may issue money orders for payment in a place outside Hong Kong and empower him to issue and pay money orders at rates of exchange fixed by him from time to time and in any currency as he thinks fit;

3. increase the maximum amount of a money order issued or to be paid in a place outside Hong Kong from HK$1,000 to US$5,000 or the equivalent of such sum to facilitate reciprocal remittance services;

4. provide that a money order issued or to be paid in a place outside Hong Kong remaining unpaid after the last day of the third month following the month of issue shall be void;

5. revise fees levels for the various non-local money order services, which was set in 1993, from $21 to new levels;

6. cancel the fee for request for information on the payment of a money order; and

7. add a new regulation 23A relating to the Freepost service.

Financial viability of remittance services

5. The subcommittee notes that the Hong Kong Post Office (HKPO) used to operate remittance services on a bilateral basis with 13 overseas postal administrations in the past. The remittance services ceased in 1994 due to keen competition from banks. The HKPO now proposes to develop a reciprocal remittance service with China Post and to re-introduce the service with the Philippine Post.

6. In view of the keen competition from banks, members have doubts on the viability of the proposed remittance services with the postal administrations of the Mainland and the Philippines. The Administration has explained that there are 50 000 and over 1 800 post offices throughout the Mainland and the Philippines respectively and their reach includes remote rural areas without a bank. In addition, as the remittance services will be provided by existing staff without incurring additional costs, the HKPO considers it financially viable to provide the remittance services.

Rates of exchange for payment of non-local money orders

7. In response to members' queries on the rates of exchange for payment of non-local money orders, the Administration has advised that it is a common practice to specify the maximum amount of a non-local money order in the currency of the United States of America (US) for reciprocal remittance services. The settlement of accounts between the HKPO and the China Post and the Philippine Post will be conducted in US currency only. The Hong Kong Monetary Authority has no objection to the proposed remittance services. On management of foreign exchange risk, the Administration has advised that it is unlikely that the HKPO will be exposed to significant risk given the very stable US dollar/HK dollar exchange rate under the Linked Exchange Rate System.

Void non-local money orders

8. Members note that regulation 19(4) of the Post Office Regulations specifies that "a money order issued in Hong Kong for payment in a place outside Hong Kong that has been remaining unpaid for one year after the date of issue shall be treated as void." The Administration has proposed to amend the regulation to cover also non-local money orders issued in a place outside Hong Kong for payment in Hong Kong and to change the validity period of non-local money orders issued in Hong Kong and those requiring payment in Hong Kong from one year to the last day of the third month following the month of issue.

9. As regards the proposed validity period, the Administration has explained that the proposal follows that promulgated in the Postal Financial Services Manual of the Universal Postal Union. It would enable the HKPO to guard against belated claims from recipients of non-local money orders, which are treated as void by its partner postal administrations.

Telecommunication (Amendment) (No. 2) Regulation 1999

10. The Regulation amends the Satellite Master Antenna Television (SMATV) Licence in Schedule 3 to the Telecommunications Regulations (Cap. 106 sub. leg.) to expand the scope of services permitted to be received and distributed by SMATV systems by -

1. permitting other licensed subscription television services, including subscription television services under a Satellite Television Uplink and Downlink Licence and video-on-demand programme services licensed under the Television Ordinance (Cap. 52) to be received and distributed under a SMATV Licence;

2. permitting telecommunications messages transmitted from satellites to be received and distributed under a SMATV Licence with effect form 1 January 2000;

3. permitting SMATV systems to receive and distribute commercial television broadcasting programmes, i.e. those of Asia Television Limited and Television Broadcasting Limited, through interconnection with communal aerial broadcast distribution systems; and

4. amending the General Conditions in the SMATV Licence. 10. The subcommittee notes that the proposal to allow SMATV licensees to distribute subscription television services in an opened-up television market was included in the consultation paper on 1998 Review of Television Policy published in September 1998. There was unanimous support for this proposal.

Recommendation

11. The subcommittee recommends that the above two items of subsidiary legislation be supported. The subcommittee will give a further report on the Solicitors (Professional Indemnity) (Amendment) Rules 1999 in due course.

Advice sought

12. Members are invited to note the recommendation of the subcommittee.

Legislative Council Secretariat
7 October 1999

Appendix

Legislative Council Secretariat
5 October 1999