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HONG KONG LEGISLATIVE COUNCIL — 15 February 1995 1957 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 15 February 1995 The Council met at half-past Two o'clock PRESENT THE PRESIDENT THE HONOURABLE SIR JOHN SWAINE, C.B.E., LL.D., Q.C., J.P. THE CHIEF SECRETARY THE HONOURABLE MRS ANSON CHAN, C.B.E., J.P. THE FINANCIAL SECRETARY THE HONOURABLE SIR NATHANIEL WILLIAM HAMISH MACLEOD, K.B.E., J.P. THE ATTORNEY GENERAL THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P. THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. DR THE HONOURABLE DAVID LI KWOK-PO, O.B.E., LL.D., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E. THE HONOURABLE SZETO WAH THE HONOURABLE TAM YIU-CHUNG THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, O.B.E., J.P. THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. 1958 HONG KONG LEGISLATIVE COUNCIL — 15 February 1995 THE HONOURABLE LAU WAH-SUM, O.B.E., J.P. DR THE HONOURABLE LEONG CHE-HUNG, O.B.E., J.P. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E. THE HONOURABLE PETER WONG HONG-YUEN, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE VINCENT CHENG HOI-CHUEN, O.B.E., J.P. THE HONOURABLE MOSES CHENG MO-CHI THE HONOURABLE MARVIN CHEUNG KIN-TUNG, O.B.E., J.P. THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHIM PUI-CHUNG REV THE HONOURABLE FUNG CHI-WOOD THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA DR THE HONOURABLE HUANG CHEN-YA THE HONOURABLE SIMON IP SIK-ON, O.B.E., J.P. DR THE HONOURABLE LAM KUI-CHUN DR THE HONOURABLE CONRAD LAM KUI-SHING, J.P. THE HONOURABLE EMILY LAU WAI-HING THE HONOURABLE LEE WING-TAT THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING THE HONOURABLE MAN SAI-CHEONG THE HONOURABLE STEVEN POON KWOK-LIM HONG KONG LEGISLATIVE COUNCIL — 15 February 1995 1959 THE HONOURABLE TIK CHI-YUEN THE HONOURABLE JAMES TO KUN-SUN DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG DR THE HONOURABLE YEUNG SUM THE HONOURABLE HOWARD YOUNG, J.P. THE HONOURABLE ZACHARY WONG WAI-YIN DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE CHRISTINE LOH KUNG-WAI THE HONOURABLE ROGER LUK KOON-HOO THE HONOURABLE ANNA WU HUNG-YUK THE HONOURABLE JAMES TIEN PEI-CHUN, O.B.E., J.P. THE HONOURABLE ALFRED TSO SHIU-WAI THE HONOURABLE LEE CHEUK-YAN ABSENT THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, O.B.E., J.P. THE HONOURABLE HENRY TANG YING-YEN, J.P. IN ATTENDANCE MR RONALD JAMES BLAKE, J.P. SECRETARY FOR WORKS THE HONOURABLE MICHAEL SZE CHO-CHEUNG, I.S.O., J.P. SECRETARY FOR THE CIVIL SERVICE MR ANTHONY GORDON EASON, C.B.E., J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS 1960 HONG KONG LEGISLATIVE COUNCIL — 15 February 1995 MR HAIDER HATIM TYEBJEE BARMA, I.S.O., J.P. SECRETARY FOR TRANSPORT MR GORDON SIU KWING-CHUE, J.P. SECRETARY FOR ECONOMIC SERVICES MR MICHAEL DAVID CARTLAND, J.P. SECRETARY FOR FINANCIAL SERVICES MR JOSEPH WONG WING-PING, J.P. SECRETARY FOR HOME AFFAIRS MR PETER LAI HING-LING, J.P. SECRETARY FOR SECURITY THE CLERK TO THE LEGISLATIVE COUNCIL MR RICKY FUNG CHOI-CHEUNG THE DEPUTY SECRETARY GENERAL MR LAW KAM-SANG HONG KONG LEGISLATIVE COUNCIL — 15 February 1995 1961 PAPERS The following papers were laid on the table pursuant to Standing Order 14(2): Subject Subsidiary Legislation L.N. No. Hospital Authority Ordinance (Amendment of Schedule 2) Order 1995................................................................ 25/95 Places for Post-Mortem Examination (Amendment) Order 1995.................................................................................... 26/95 Adoption (Amendment) Rules 1995..................................................... 27/95 Employees' Compensation (Amendment) Ordinance 1995 (1 of 1995) (Commencement) Notice 1995 .................................................................................. 28/95 Waste Disposal (Charges for Disposal of Chemical Waste) Regulation ........................................................................ 30/95 Official Languages (Alteration of Text) (Education Ordinance) Order 1995............................................... 31/95 Kowloon-Canton Railway (Restricted Area) Notice 1995 .................................................................................. 32/95 Boundary and Election Commission (Nominations Advisory Committee) Regulation................................................. 33/95 Commodities Trading (Trading Limits and Position Limits) Rules................................................................................ 34/95 Declaration of Change of Titles (University and Polytechnic Grants Committee and Secretary General, University and Polytechnic Grants Committee) Notice 1995 .............................................................. 35/95 Specification of Public Office .............................................................. 36/95 Official Languages (Authentic Chinese Text) (Land Development Corporation Ordinance) Order ............................................................................................ (C)7/95 1962 HONG KONG LEGISLATIVE COUNCIL — 15 February 1995 Official Languages (Authentic Chinese Text) (Gambling Ordinance) Order........................................................ (C)8/95 Official Languages (Authentic Chinese Text) (Education Ordinance) Order ....................................................... (C)9/95 Sessional Papers 1994-95 No. 63 — Regional Council Estimates of Revenue and Expenditure for the year ending 31 March 1996 No. 64 — Report of the Public Accounts Committee on the Report of the Director of Audit on the Accounts of the Hong Kong Government for the year ended 31 March 1994 and the Results of Value for Money Audits (January 1995 — PAC Report No. 23) OATH MR LEE CHEUK-YAN took the Legislative Council Oath. ADDRESSES Waterworks (Amendment) Regulation 1995 MR FRED LI (in Cantonese): Mr President, thank you for giving me this opportunity to speak on an amended regulation for this year's water charges increases. With effect from 16 February this year, the Government will increase water charges, domestic cash deposits for all new accounts, charges for connection and other miscellaneous services. Regarding measures for water charges increases, I would like to take this opportunity to speak in two different capacities. Firstly, as the Chairman of a subcommittee set up to study the abovementioned regulation, I will state the subcommittee's position. Then I will speak on behalf of the Democratic Party and put forward our views on water charges. The subcommittee has made two proposals in relation to the proposed increases. Firstly, the existing cross subsidy of non-domestic users by domestic users is found to be unacceptable. At present, water charges for trade purposes have fallen short of the net production cost. The Government proposes to eliminate the cross subsidy in three years' time, that is by 1998-99, with a 3-4% differential rate of increase annually between domestic and non-domestic supply. HONG KONG LEGISLATIVE COUNCIL — 15 February 1995 1963 Members understood that the proposed 7% increase in domestic water charges together with the changes to the tariff structure would result in an increase of 0.02% in the Consumer Price Index, whereas for the manufacturing sector as a whole, the proposed 10.5% increase in water charges would only increase production cost by 0.02%. We can see that the proposed increases will only exert a very slight pressure on the trade sector. For this reason, the subcommittee considered that the proposed time-frame for eliminating the cross subsidy was too conservative and recommended that it be advanced by two years, that is, to 1996-97. Subsequent to the meeting, the Administration expressed that it had no objection to this proposal and would recommend it to the Executive Council and the Legislative Council in the next review of the water charges timetable. Secondly, the present tiered tariff structure for domestic supplies is unfair to those large families housed in small units which tend to have high water consumption but low income. Members urged the Administration to examine how this group can be assisted. The Government has agreed to look for ways to protect such families and will obtain information on such households from the Housing Department for Members' reference. Since the Government has accepted our first proposal and agreed to consider the second one, the subcommittee has decided not to raise objection to the water charges proposal. However, the subcommittee has reservations about the target return rate of 8% to be achieved in the longer term, and will continue to study this issue. So far as the Democratic Party is concerned, we consider that the Administration has to differentiate clearly its target consumers when considering water charges increases. To start with, for the general users, water is more a basic necessity than a means of production. Therefore, the Administration should not aim at seeking a commercial return of 8%. At the same time, fees and charges imposed by the Government should be in line with the principle of reallocating resources and narrowing the gap between the rich and the poor.
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