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LEGISLATIVE COUNCIL ─ 16 May 2001 5307 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 16 May 2001 The Council met at half-past Two o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.S., J.P. THE HONOURABLE KENNETH TING WOO-SHOU, J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, J.P. THE HONOURABLE DAVID CHU YU-LIN THE HONOURABLE CYD HO SAU-LAN THE HONOURABLE ALBERT HO CHUN-YAN IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, J.P. THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING, J.P. DR THE HONOURABLE LUI MING-WAH, J.P. THE HONOURABLE NG LEUNG-SING 5308 LEGISLATIVE COUNCIL ─ 16 May 2001 PROF THE HONOURABLE NG CHING-FAI THE HONOURABLE MARGARET NG THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE HUI CHEUNG-CHING THE HONOURABLE CHAN KWOK-KEUNG THE HONOURABLE CHAN YUEN-HAN THE HONOURABLE BERNARD CHAN THE HONOURABLE CHAN KAM-LAM THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE SIN CHUNG-KAI THE HONOURABLE ANDREW WONG WANG-FAT, J.P. THE HONOURABLE WONG YUNG-KAN THE HONOURABLE JASPER TSANG YOK-SING, J.P. THE HONOURABLE HOWARD YOUNG, J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE YEUNG YIU-CHUNG THE HONOURABLE LAU CHIN-SHEK, J.P. LEGISLATIVE COUNCIL ─ 16 May 2001 5309 THE HONOURABLE LAU KONG-WAH THE HONOURABLE LAU WONG-FAT, G.B.S., J.P. THE HONOURABLE AMBROSE LAU HON-CHUEN, J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE CHOY SO-YUK THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE SZETO WAH THE HONOURABLE LAW CHI-KWONG, J.P. DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, J.P. THE HONOURABLE LI FUNG-YING, J.P. THE HONOURABLE HENRY WU KING-CHEONG, B.B.S. THE HONOURABLE TOMMY CHEUNG YU-YAN, J.P. THE HONOURABLE MICHAEL MAK KWOK-FUNG THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE LEUNG FU-WAH, M.H., J.P. DR THE HONOURABLE LO WING-LOK THE HONOURABLE WONG SING-CHI THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE IP KWOK-HIM, J.P. 5310 LEGISLATIVE COUNCIL ─ 16 May 2001 THE HONOURABLE LAU PING-CHEUNG THE HONOURABLE AUDREY EU YUET-MEE, S.C., J.P. MEMBERS ABSENT: DR THE HONOURABLE DAVID LI KWOK-PO, J.P. DR THE HONOURABLE PHILIP WONG YU-HONG THE HONOURABLE MRS MIRIAM LAU KIN-YEE, J.P. THE HONOURABLE TIMOTHY FOK TSUN-TING, S.B.S., J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE DONALD TSANG YAM-KUEN, J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE ANTONY LEUNG KAM-CHUNG, G.B.S., J.P. THE FINANCIAL SECRETARY THE HONOURABLE ELSIE LEUNG OI-SIE, J.P. THE SECRETARY FOR JUSTICE MR DOMINIC WONG SHING-WAH, G.B.S., J.P. SECRETARY FOR HOUSING MISS DENISE YUE CHUNG-YEE, J.P. SECRETARY FOR THE TREASURY MR STEPHEN IP SHU-KWAN, J.P. SECRETARY FOR FINANCIAL SERVICES LEGISLATIVE COUNCIL ─ 16 May 2001 5311 MRS LILY YAM KWAN PUI-YING, J.P. SECRETARY FOR THE ENVIRONMENT AND FOOD DR YEOH ENG-KIONG, J.P. SECRETARY FOR HEALTH AND WELFARE MRS REGINA IP LAU SUK-YEE, J.P. SECRETARY FOR SECURITY MRS CARRIE YAU TSANG KA-LAI, J.P. SECRETARY FOR INFORMATION TECHNOLOGY AND BROADCASTING CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MR LAW KAM-SANG, J.P., DEPUTY SECRETARY GENERAL MRS JUSTINA LAM CHENG BO-LING, ASSISTANT SECRETARY GENERAL 5312 LEGISLATIVE COUNCIL ─ 16 May 2001 TABLING OF PAPERS No. 86 ─ Securities and Futures Commission Annual Report 2000-2001 No. 87 ─ The Government Minute in response to the Report No. 35 of the Public Accounts Committee dated February 2001 Report of the Bills Committee on Telecommunications (Amendment) Bill 2001 ADDRESS PRESIDENT (in Cantonese): Address. The Chief Secretary for Administration will address the Council on the Government Minute in response to the Report No. 35 of the Public Accounts Committee dated February 2001. The Government Minute in response to the Report No. 35 of the Public Accounts Committee dated February 2001 CHIEF SECRETARY FOR ADMINISTRATION (in Cantonese): Madam President, laid on the table today is the Government Minute responding to Report No. 35 of the Public Accounts Committee (PAC). The Minute sets out the measures the Government has taken or is taking, on the conclusions and recommendations contained in the Report. The PAC selected for detailed study seven of the 12 subjects investigated by the Director of Audit in his Value For Money Report No. 35. For the other five subjects not selected for detailed study, the relevant bureaux and departments have been following up on the recommendations of the Director of Audit, and will make regular reports on progress made on these recommendations. May I take this opportunity to thank the Director of Audit for the conscientious and professional way he has undertaken these investigations. This has made Hong Kong a more transparent economy, leading to an even more responsible Government. LEGISLATIVE COUNCIL ─ 16 May 2001 5313 The Honourable Eric LI, Chairman of the PAC, spoke on 14 February when tabling the PAC's Report. He commented on the six cases on which study has been completed. I would like to take this opportunity to respond to some of his remarks. On the matter of controlling flooding in the urban areas, the Administration has committed significant resources to improving the drainage systems in these areas. We are now carrying out a series of drainage improvement works costing about $5 billion in West Kowloon and will make every effort to secure their early completion. The departments concerned have taken various improvement measures in the management and co-ordination of public works projects including measures for monitoring the performance of consultants mentioned in the Government Minute. We fully agree that in discharging public duties, there is a need for a responsible attitude as well as properly documented procedures. In this regard, I shall make it a personal motto as Chief Secretary for Administration to foster an accountable and responsible culture within the Government which is one of the greatest objectives of the civil service reform. On the Government's support and administration of kindergarten education, we believe that an effective way to monitor the collection of miscellaneous fees by the kindergartens is to increase transparency to enable parents to make informed choices. Kindergarten operators should be accountable to parents for ensuring that profits are reasonable and that parents have been informed of the voluntary nature of the purchase of the services. The Education Department (ED) has issued a refined "List of Components of School Fees for Kindergartens", making it clear that as from the year 2001-02, kindergarten school fees will include fees for such basic activities as birthday parties and graduation ceremony, which form part of the regular learning process. Moreover, the department has issued instructions to make it explicit that the profit limit of 15% is applicable to both the sale of school items and paid services provided by schools to pupils. The ED has also published a set of Kindergarten Profiles (the Profiles) which contain, among other things, information on miscellaneous fees charged by individual kindergartens. Some 42 000 copies were printed for distribution to parents. The Profiles are also available from the Department's homepage, 5314 LEGISLATIVE COUNCIL ─ 16 May 2001 public libraries, district offices, family services centres and maternal and child health centres. Seven briefing sessions on the Profiles were organized for 3 000 parents in March 2001. The ED will continue to adopt a proactive approach in monitoring the collection of miscellaneous fees. During school inspections, it will remind kindergarten operators of the profit limit, and will inspect school records to ensure that the kindergarten adheres strictly to the Code of Practice and other guidelines on purchase and acquisition of paid services. Kindergartens must always remain in full compliance with the Code and the guidelines. The ED will also conduct investigations into allegations of non-compliance with the guidelines, and issue warning letters in case of substantiated irregularities. I should also like to speak on the use of employers' returns and notifications for assessing and collecting salaries tax. The Inland Revenue Department (IRD) has taken measures to strike a balance between tightening the system of tax assessment and collection on the one hand, ensuring cost- effectiveness on the other. The IRD has agreed with the Immigration Department a new arrangement for the latter to provide current addresses of tax defaulters as reported on their arrival or departure cards. To ensure tax collection from "high-risk" taxpayers, the IRD has drawn up new procedures to enable early identification of potential cases which may require the application of departure prevention directions. In addition, the IRD is considering several possible legislative proposals. These proposals include imposing special requirements on employers of taxpayers who stand a higher chance of departing from Hong Kong without clearing their tax liabilities. We are mindful of the need to safeguard human rights, which is very important. The IRD is seeking legal advice on the human rights implications of these proposals. The IRD will continue to monitor and review the relevant procedures, with a view to preventing tax defaulting and improving the overall efficiency and effectiveness in tax collection, assessment and recovery. On interdiction of government officers, the Administration shares the PAC's observations that we should keep the number of interdiction cases as LEGISLATIVE COUNCIL ─ 16 May 2001 5315 small as what is strictly necessary and the period of interdiction the shortest possible.
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