LEGISLATIVE COUNCIL ― 22 March 2017 5139

OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 22 March 2017

The Council met at Eleven o'clock

MEMBERS PRESENT:

THE PRESIDENT THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P.

THE HONOURABLE JAMES TO KUN-SUN

THE HONOURABLE LEUNG YIU-CHUNG

THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P.

THE HONOURABLE TOMMY CHEUNG YU-YAN, G.B.S., J.P.

PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P.

THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P.

THE HONOURABLE WONG TING-KWONG, S.B.S., J.P.

THE HONOURABLE STARRY LEE WAI-KING, S.B.S., J.P.

THE HONOURABLE CHAN HAK-KAN, B.B.S., J.P.

THE HONOURABLE CHAN KIN-POR, B.B.S., J.P.

DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P.

THE HONOURABLE WONG KWOK-KIN, S.B.S., J.P.

THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P.

5140 LEGISLATIVE COUNCIL ― 22 March 2017

THE HONOURABLE PAUL TSE WAI-CHUN, J.P.

THE HONOURABLE LEUNG KWOK-HUNG#

THE HONOURABLE CLAUDIA MO

THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P.

THE HONOURABLE STEVEN HO CHUN-YIN, B.B.S.

THE HONOURABLE FRANKIE YICK CHI-MING, J.P.

THE HONOURABLE WU CHI-WAI, M.H.

THE HONOURABLE YIU SI-WING, B.B.S.

THE HONOURABLE MA FUNG-KWOK, S.B.S., J.P.

THE HONOURABLE CHARLES PETER MOK, J.P.

THE HONOURABLE CHAN CHI-CHUEN

THE HONOURABLE CHAN HAN-PAN, J.P.

THE HONOURABLE LEUNG CHE-CHEUNG, B.B.S., M.H., J.P.

THE HONOURABLE KENNETH LEUNG

THE HONOURABLE ALICE MAK MEI-KUEN, B.B.S., J.P.

DR THE HONOURABLE KWOK KA-KI

THE HONOURABLE KWOK WAI-KEUNG

THE HONOURABLE DENNIS KWOK WING-HANG

# According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council. LEGISLATIVE COUNCIL ― 22 March 2017 5141

THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P.

DR THE HONOURABLE HELENA WONG PIK-WAN

THE HONOURABLE IP KIN-YUEN

DR THE HONOURABLE ELIZABETH QUAT, J.P.

THE HONOURABLE MARTIN LIAO CHEUNG-KONG, S.B.S., J.P.

THE HONOURABLE POON SIU-PING, B.B.S., M.H.

DR THE HONOURABLE CHIANG LAI-WAN, J.P.

IR DR THE HONOURABLE LO WAI-KWOK, S.B.S., M.H., J.P.

THE HONOURABLE CHUNG KWOK-PAN

THE HONOURABLE ALVIN YEUNG

THE HONOURABLE ANDREW WAN SIU-KIN

THE HONOURABLE CHU HOI-DICK

DR THE HONOURABLE JUNIUS HO KWAN-YIU, J.P.

THE HONOURABLE HO KAI-MING

THE HONOURABLE LAM CHEUK-TING

THE HONOURABLE HOLDEN CHOW HO-DING

THE HONOURABLE SHIU KA-FAI

THE HONOURABLE SHIU KA-CHUN

THE HONOURABLE WILSON OR CHONG-SHING, M.H.

THE HONOURABLE YUNG HOI-YAN

DR THE HONOURABLE PIERRE CHAN

5142 LEGISLATIVE COUNCIL ― 22 March 2017

THE HONOURABLE CHAN CHUN-YING

THE HONOURABLE TANYA CHAN

THE HONOURABLE CHEUNG KWOK-KWAN, J.P.

THE HONOURABLE HUI CHI-FUNG

THE HONOURABLE LUK CHUNG-HUNG

THE HONOURABLE LAU KWOK-FAN, M.H.

THE HONOURABLE KENNETH LAU IP-KEUNG, M.H., J.P.

DR THE HONOURABLE CHENG CHUNG-TAI

THE HONOURABLE KWONG CHUN-YU

THE HONOURABLE JEREMY TAM MAN-HO

THE HONOURABLE NATHAN LAW KWUN-CHUNG#

DR THE HONOURABLE YIU CHUNG-YIM#

DR THE HONOURABLE LAU SIU-LAI#

MEMBERS ABSENT:

DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG

THE HONOURABLE JIMMY NG WING-KA, J.P.

# According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council. LEGISLATIVE COUNCIL ― 22 March 2017 5143

PUBLIC OFFICERS ATTENDING:

PROF THE HONOURABLE ANTHONY CHEUNG BING-LEUNG, G.B.S., J.P. SECRETARY FOR TRANSPORT AND HOUSING

PROF THE HONOURABLE K C CHAN, G.B.S., J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY

THE HONOURABLE GREGORY SO KAM-LEUNG, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT

THE HONOURABLE LAI TUNG-KWOK, G.B.S., I.D.S.M., J.P. SECRETARY FOR SECURITY

DR THE HONOURABLE KO WING-MAN, B.B.S., J.P. SECRETARY FOR FOOD AND HEALTH

THE HONOURABLE WONG KAM-SING, G.B.S., J.P. SECRETARY FOR THE ENVIRONMENT

THE HONOURABLE STEPHEN SUI WAI-KEUNG, J.P. SECRETARY FOR LABOUR AND WELFARE

THE HONOURABLE ERIC MA SIU-CHEUNG, J.P. SECRETARY FOR DEVELOPMENT

MR GODFREY LEUNG KING-KWOK, J.P. UNDER SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT

CLERKS IN ATTENDANCE:

MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL

MISS ODELIA LEUNG HING-YEE, DEPUTY SECRETARY GENERAL

MS ANITA SIT, ASSISTANT SECRETARY GENERAL

MS DORA WAI, ASSISTANT SECRETARY GENERAL

5144 LEGISLATIVE COUNCIL ― 22 March 2017

PRESIDENT (in Cantonese): Will the Clerk please ring the bell to summon Members to the Chamber.

(After the summoning bell had been rung, a number of Members entered the Chamber)

TABLING OF PAPERS

The following papers were laid on the table under Rule 21(2) of the Rules of Procedure:

Subsidiary Legislation/Instruments L.N. No.

Road Tunnels (Government) (Amendment) Regulation 2017 ...... 34/2017

Tsing Ma Control Area (Tolls, Fees and Charges) (Amendment) Regulation 2017 ...... 35/2017

Tsing Sha Control Area (Tolls, Fees and Charges) (Amendment) Regulation 2017 ...... 36/2017

Antiquities and Monuments (Declaration of Proposed Monument) (Hung Lau) Notice ...... 37/2017

Pharmacy and Poisons (Amendment) (No. 2) Regulation 2017 ...... 38/2017

Designation of Libraries (Amendment) Order 2017 ...... 39/2017

Smoking (Public Health) (Designation of No Smoking Areas) (Amendment) Notice 2017 ...... 40/2017

Other Papers

No. 73 ― Correctional Services Department Welfare Fund Report by the Commissioner of Correctional Services of Hong Kong Incorporated on the Administration of the Fund, Financial Statements and Report of the Director of Audit for the year ended 31 March 2016 LEGISLATIVE COUNCIL ― 22 March 2017 5145

No. 74 ― Hong Kong Rotary Club Students' Loan Fund Financial Statements and Report of the Director of Audit for the year ended 31 August 2016

No. 75 ― Sing Tao Charitable Foundation Students' Loan Fund Financial Statements and Report of the Director of Audit for the year ended 31 August 2016

No. 76 ― Hong Kong Arts Development Council Annual Report 2015/16

No. 77 ― The Hong Kong Academy for Performing Arts Annual Report 2015/16, Consolidated Financial Statements and Independent Auditor's Report for the year ended 30th June 2016

No. 78 ― Report of changes made to the approved Estimates of Expenditure during the third quarter of 2016-17 Public Finance Ordinance : Section 8

No. 79 ― AIDS Trust Fund 2015-16 Annual Report, Financial statements and Report of the Director of Audit for the year ended 31 March 2016

Report No. 13/16-17 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments

ORAL ANSWERS TO QUESTIONS

PRESIDENT (in Cantonese): Questions. First question.

Manpower of the construction industry

1. IR DR LO WAI-KWOK (in Cantonese): President, according to a survey on labour shortage in the construction industry conducted by the Hong Kong Construction Association in November last year, the shortage rate of construction workers stood at about 7.5%, which was lower than the corresponding rates of 18.6% and 12.8% in the same period of the preceding two years. While the 5146 LEGISLATIVE COUNCIL ― 22 March 2017 manpower shortage problem has been slightly alleviated, the industry is still plagued by the problem of an ageing labour force. At present, over 40% of construction workers (i.e. about 170 000 people) are 50 years old or above. Some members of the construction industry have pointed out that various infrastructure projects should commence in an orderly manner in accordance with the future manpower supply and demand situation of the construction industry. In this connection, will the Government inform this Council:

(1) given that the first batch of railway projects (including the Northern Link and Kwu Tung Station, the Tuen Mun South Extension and the East Kowloon Line) under the Railway Development Strategy 2014 is expected to commence in 2018 and 2019 the soonest, whether the Government has explored ways to ensure that such new railway projects commence as scheduled or even ahead of schedule, with a view to making good use of the construction industry manpower to be released following the completion of the works projects of the Hong Kong-Zhuhai-Macao-Bridge and the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link within the next one to two years, thereby avoiding the recurrence of the situation where, owing to the concurrent commencement of a number of works projects, the projects concerned have to compete with each other for manpower; if so, of the details; if not, the reasons for that;

(2) whether it will work out a list of infrastructure and public works projects prioritized according to their degree of urgency, for the purpose of improving the projection on the manpower supply and demand situation of the construction industry and the distribution of work, so as to ensure the sustainable development of the construction industry and avoid the situation where workers suffer from the plight of "dying of overwork at one time and of starvation at another"; if so, of the details; if not, the reasons for that; and

(3) whether it has, in the light of the lessons learnt from past experience, assessed the required numbers of workers and professionals when planning various public works projects, so as to facilitate the early planning of suitable complementary measures, including the formulation, after strengthening the communication with the relevant stakeholders, of project-based plans for importation of foreign labour; if so, of the details; if not, the reasons for that?

LEGISLATIVE COUNCIL ― 22 March 2017 5147

SECRETARY FOR DEVELOPMENT (in Cantonese): President, the Government has been implementing capital works projects in a continuous, timely and orderly manner with a view to improving people's quality of living, enhance the long-term competitiveness and promote the economic development of Hong Kong. At present, the demand for public facilities in the community is keen. The supply of land and housing is very tight. Our transport network is under tremendous pressure for expansion. Our ageing population also entails a pressing need for enhancing and expanding the health care facilities. As such, the Government and the construction industry are required to meet both the social development needs and the community's aspirations for living quality.

To cope with the persistent manpower demand of the construction industry, we have been collaborating with the Construction Industry Council ("CIC") in launching a host of measures. They include conducting assessments on the supply and demand of professionals and workers at appropriate junctures; developing progression pathways and carrying out promotions to attract new entrants to join the industry; and strengthening training for local construction workers to upgrade their skills to semi-skilled and skilled levels. From 2009 to 2016, CIC has trained up more than 24 000 semi-skilled workers. About 60% of them were under 35 years old and well below 46 which is the average age of the registered workers at present. This shows that many young people are interested in joining the industry. During the period of 2009 to present, the total number of registered workers has risen from 270 000 to 430 000 while that of registered skilled/semi-skilled workers has also risen from about 107 000 to 214 000.

Under the overriding premise of according priority to the employment of local workers and safeguarding their wage level, contractors may apply to import skilled workers under the Supplementary Labour Scheme ("SLS"). We will also continue to encourage the industry to adopt designs and construction methods that require less labour input and support CIC in establishing an innovation and technology application centre.

My reply to the Ir Dr LO Wai-kwok's question is as follows:

(1) Having regard to the indicative implementation window recommended in the Railway Development Strategy 2014, the Transport and Housing Bureau invited the Mass Transit Railway Corporation Limited ("MTRCL") in February last year to submit proposals for the implementation of the Northern Link (and Kwu Tung Station), East Kowloon Line and Tuen Mun South Extension 5148 LEGISLATIVE COUNCIL ― 22 March 2017

with a view to taking forward the new railway projects. The Bureau also invited MTRCL in January this year to submit a proposal for the implementation of the Tung Chung West Extension (and Tung Chung East Station).

MTRCL submitted the proposal for the Tuen Mun South Extension to the Government in end December 2016, and will submit the proposals for the Northern Link (and Kwu Tung Station) and East Kowloon Line later this year. The Transport and Housing Bureau, the Highways Department and relevant departments are evaluating the proposal for the Tuen Mun South Extension, and have requested MTRCL to provide additional information and supplement details of the relevant proposal in order to ensure that its proposal will be practically feasible and bring maximum benefits to the community.

The taking forward of new railway projects will be subject to the outcome of detailed engineering, environmental and financial studies relating to each project, as well as updated demand assessment and the availability of resources. The Government will implement new railway projects in an orderly manner in light of actual circumstances including the manpower situation of the construction industry. As an established procedure, the Government will consult the public on the detailed alignment, locations of stations, mode of implementation, cost estimate, mode of financing and actual implementation timetable prior to the finalization of any new railway scheme.

(2) The Government has been all along conducting long-term planning for infrastructure projects and taking account of their actual needs, urgency and cost-effectiveness and the financial sustainability, etc. when prioritizing the projects. We would also assess the delivery capacity of the construction industry to ensure the smooth implementation of the projects. This can also serve to foster a steady and sustainable development of the construction industry.

In addition, the Government collaborates with CIC in formulating forecast on the overall construction output in both public and private sectors over a 10-year horizon. The results are regularly published for the information of the industry and the public so that the industry LEGISLATIVE COUNCIL ― 22 March 2017 5149

can carry out early planning of their resources deployment to meet the future workload. According to the latest forecast published at the end of last year, the total construction output of the public and private sectors in the next 5 to 10 years will exceed the level of $300 billion, indicating a persistent high demand for construction services. In the long run, the total construction output will remain relatively steady. However, the implementation of public works projects has been constantly affected by the slow progress in obtaining funding approval in recent years. In this year, for example, it has come to an unprecedented situation that no new projects have been approved for the past eight months since last July. The filibustering in the Legislative Council has caused the drastic fluctuations of the construction output and inevitably brought about the situation of "dying of overwork at one time and starvation at another". This may, in turn, undermine the willingness of new entrants to join the industry and affect the sustainable development of the industry.

(3) At appropriate junctures, CIC conducts assessments of the supply and demand of manpower, including the professionals and workers, based on the latest situation.

According to the latest report on manpower forecast for construction workers released by CIC in December 2016, the shortage of about 10 000 to 15 000 skilled workers will still persist in the next few years. Apart from various measures to step up recruiting and training up skilled workers, we also, in collaboration with the industry stakeholders, rolled out enhancement measures in April 2014 to expedite the preparatory works for SLS applications involving 26 trades with manpower shortage as submitted by public works contractors. With the launching of these enhancement measures, the average processing time for approving the applications has been shortened from about 7.5 months to the target of 6 months.

The assessments in 2014 indicated that there was shortage of professionals in some disciplines. But based on the industry's views, the tough shortfall has been alleviated at the moment. CIC is currently updating the related forecast and will release the results in mid-2017.

5150 LEGISLATIVE COUNCIL ― 22 March 2017

We will continue to liaise closely with the stakeholders to review the effectiveness of the current measures. We are also open to explore with the industry different viable options that can effectively increase the supply of skilled workers to meet the manpower demand for implementing capital works projects.

IR DR LO WAI-KWOK (in Cantonese): President, the Secretary said in the main reply that no new projects had been approved for the past eight months since last July. This situation has really dealt a hard blow to the construction industry, which not only caused drastic fluctuations of the construction output, but also upset the balance. Some construction workers can no longer stay in employment, and even professionals, such as engineering consultants, cannot secure continuous work. May I ask the Secretary whether he has made enquiries with members of the industry, including engineering consultant firms and works contractors to understand in depth their operating environment, so as to make early planning to prevent this important industry from plunging into a dire situation?

SECRETARY FOR DEVELOPMENT (in Cantonese): President, we have been liaising closely with the stakeholders of the construction industry. In fact, all the works projects that we have submitted to the Legislative Council for scrutiny are related to people's livelihood, including projects on health care facilities, land and housing supply, environmental protection, infrastructure, schools, recreational, cultural and social facilities, etc. Each project has its urgency and will bring about social and economic benefits. In the next few years, we will also submit a number of strategic infrastructure proposals, including hospital development plans incurring $200 billion, projects under the Railway Development Strategy 2014, the Central Kowloon Route, housing construction projects to provide 460 000 residential units, etc. These projects are crucial in promoting sustainable development and maintaining the competitiveness of Hong Kong as well as improving people's livelihood. They will create a huge demand for professional services and personnel. We understand that the construction industry is currently facing an unnecessary drastic fluctuation in its construction output. At present, we mainly award advance consultancy contracts to make optimal use of the professional personnel, with a view to alleviating the impact on the industry as far as possible.

LEGISLATIVE COUNCIL ― 22 March 2017 5151

MR WONG KWOK-KIN (in Cantonese): President, the filibustering staged by the pan-democratic Members in the Legislative Council has undeniably made construction workers of Hong Kong suffer from the situation of "dying of overwork at one time and starvation at another". Members of the construction industry should remember this group of pan-democratic Members and hold them accountable in the future.

However, President, today we are discussing the manpower problem in the construction industry. Since the construction industry has all along been claiming the shortage of manpower, may I ask the Secretary: Has assessment been made to ascertain whether there is a genuine manpower shortage in Hong Kong or whether the shortage is actually caused by people's unwillingness to join some trades due to the unsatisfactory employment conditions? For example, we have all along pointed out that the unstable employment conditions in the construction industry constitute a major disincentive for young people to join the industry.

Has the Government considered improving in the long run the current mode of employing workers on a casual basis in the construction industry? Will the Government negotiate with the construction industry with a view to establishing a permanent, stable and continuous employment relationship to encourage young people to join the industry so as to relieve the manpower shortage? The Hong Kong Federation of Trade Unions ("FTU") has all along considered that alleviating the manpower shortage in the construction industry by importing labour cannot solve the problem at root.

SECRETARY FOR DEVELOPMENT (in Cantonese): I thank Mr WONG for the supplementary question. As we have always clearly pointed out, the first and foremost task of the authorities is to accord priority to the employment of local workers and safeguard their wage level. The Government also understands that different trades and sectors have different impacts on manpower and their attraction to workers vary. Thus, we have done a lot of work in respect of construction industry workers in the past. I will brief Members on four aspects of our work in particular. First, we will forecast the demand and supply of manpower. Since there have been fluctuations in respect of manpower demand in the construction industry, the situation of "dying of overwork at one time and of starvation at another" has arisen. Therefore, in terms human resources 5152 LEGISLATIVE COUNCIL ― 22 March 2017 planning, we hope to conduct regular forecasts of the supply and demand of manpower in the construction industry, so that people would know the overall situation and understand the manpower demand of the industry.

Second, as we are aware of the difficulties faced by young people in joining the construction industry, we have particularly stepped up our efforts in training workers. In fact, since the Legislative Council approved the funding of $420 million in 2011, we have been supporting CIC to enhance its training of local workers in the construction industry. From 2009 to 2017 in particular, CIC has trained 24 000 semi-skilled workers with an average age of 35. We notice that some young people are interested in joining the industry and we hope to further improve our training efforts.

Third, we also hope to enhance the image of the construction industry so as to attract more new entrants. After we have stepped up our promotional efforts in this regard in 2011, the number of construction workers has continued to increase. As at February 2017, the number of registered workers has reached 433 000, representing an increase of more than 50% when compared with that of 2011.

Fourth, as we also hope the construction industry can enhance productivity, we encourage the industry to adopt better procurement methods, as well as use standardized and mechanized equipment to raise the technical content of the industry. We also support CIC in importing other innovative technology.

In terms of employment relationship, we encourage contractors, be they sub-contractors or main contractors, to employ more workers under direct employment. We have made particular efforts in encouraging contractors to participate more in training and they are actively involved in the work.

MR WONG TING-KWONG (in Cantonese): President, major works are now in progress and will continue in the foreseeable future. In particular, the expansion of the airport into a three-runway system will require a large number of works personnel. Have the authorities estimate whether there will be a shortage of works personnel in the next few years? If so, how will the problem be solved? Can the demand of works personnel be met under the current policy on labour importation? Will the Policy Bureau consider adopting a more LEGISLATIVE COUNCIL ― 22 March 2017 5153 proactive labour importation policy to alleviate the manpower problem and prevent construction costs from being pushed up, thereby affecting the total costs of works?

SECRETARY FOR DEVELOPMENT (in Cantonese): President, we have all along been liaising with CIC regarding the overall assessment of the construction industry. CIC will assess the manpower demand on the basis of the prospective construction output. In fact, we are carrying out work in this regard.

According to the latest figures, the construction industry still lacks 10 000 to 15 000 technical workers (mainly skilled and semi-skilled workers) in the coming few years, thus posing a challenge in training. We are also actively exploring other solutions in case the supply of local workers cannot meet the demand of technical workers. The Labour Department has been implementing SLS. The authorities will conduct advance preparatory work where necessary to streamline the procedures for labour importation involving 26 trades with labour shortage in connection with certain government works projects. Hence, it is hoped that the time for processing labour importation applications can be shortened from 7.5 months to 6 months. The authorities are closely liaising with the stakeholders on appropriate labour importation through SLS when the need arises.

MR HO KAI-MING (in Cantonese): President, currently, quite a number of ethnic minority people have joined the construction industry and become a new force. Has the Administration considered enhancing measures to facilitate these people in joining the industry? Have statistics been compiled on the current number of ethnic minority workers in the industry and their percentage in the total number of construction workers? Are there plans to proactively promote the construction industry to ethnic minority people in languages they are more familiar with, e.g. their native languages, so as to facilitate their joining the industry?

SECRETARY FOR DEVELOPMENT (in Cantonese): President, the authorities have been closely liaising with CIC and are aware that many ethnic minority people have joined the construction industry in the past few years and have become a major source of human resources in Hong Kong.

5154 LEGISLATIVE COUNCIL ― 22 March 2017

In order to encourage more ethnic minority people to join the construction industry, the authorities and CIC have launched various measures, including stepping up promotion of the industry through the existing ethnic minority community groups and trade unions, as well as the relevant non-governmental organizations. In addition, we have particularly placed advertisements in ethnic minority newspapers and organized family fun days so that ethnic minority people would have a better understanding of the construction industry. We have also organized job fairs in various districts to offer job opportunities to them.

The authorities also encourage ethnic minority workers to enrol in courses organized by CIC so that they will be suitably trained. We have increased the number of short courses for adults conducted in English to provide more study opportunities for the English-speaking ethnic minorities. We hope that the above mentioned measures will help them join the construction industry by overcoming the difficulties caused by the entry thresholds. These are the work we are doing at present.

MS ALICE MAK (in Cantonese): President, as Mr WONG Kwok-kin said earlier, FTU considered that relying solely on labour importation to address labour shortage in the construction industry cannot solve the problem at root. A better solution is to improve the employment relationship and work environment of the industry and enhance training, so as to attract young people, or ethnic minority people, as suggested by Mr HO Kai-ming, to join the industry.

At present, FTU is handling many cases of wage arrears and the situation was particularly serious before Chinese New Year. During the Chinese New Year period, cases of wage arrears handled by FTU involved tens of millions of dollars. Has the Government considered how to solve this problem? If not, how can workers believe that they will receive wages for their work and how will people have the confidence to join the industry?

SECRETARY FOR DEVELOPMENT (in Cantonese): President, I thank Ms Alice MAK for the supplementary question. The authorities do not rely solely on labour importation to solve the labour shortage problem in the construction industry. Our priority is to train up the work force of Hong Kong and attract young people to join the construction industry so that they will become the mainstay of the industry.

LEGISLATIVE COUNCIL ― 22 March 2017 5155

Regarding the issue of wage arrears, the authorities are now planning to introduce a system of security of payment in the construction industry and we will submit the proposal to the Legislative Council later. This system will offer better security and protection of payment by contractors, sub-contractors or sub-sub-contractors. We are following up this matter.

PRESIDENT (in Cantonese): Second question.

Promoting donation of foods that cannot be sold but are still suitable for human consumption

2. MR CHAN HAK-KAN (in Cantonese): President, a survey has revealed that 74% and 99% respectively of the food product companies and chain convenience stores surveyed discarded foods that could not be sold because they had expired, would soon expire or had unappealing appearance, but were still suitable for human consumption, causing wastage and giving rise to food waste. Among the operators of these two types of organizations, 29% and 82% of them respectively indicated that they had not donated such foods to non-profit making organizations for consumption by the needy because they were worried that legal risks might be incurred for donating foods. In this connection, will the Government inform this Council:

(1) whether the Government conducted surveys in the past three years on restaurants, market stalls, chain supermarkets and retail shops discarding foods which were still suitable for human consumption; if so, of the quantity of foods discarded each year; if not, whether it will conduct such surveys;

(2) given that quite a number of countries or regions have, by making reference to the Good Samaritan Food Donation Act in the United States, enacted similar legislation under which food donors will be discharged from the associated legal liabilities, whether the Government will consider afresh enacting such kind of legislation; if so, of the details; if not, the reasons for that; and

(3) whether it has assessed the effectiveness of the food donation projects funded by the Environment and Conservation Fund in the past three years; if so, of the outcome, including the total quantity of 5156 LEGISLATIVE COUNCIL ― 22 March 2017

foods collected under such projects (with a breakdown by food source); whether the Government will further offer incentives (e.g. tax concessions) to encourage food sellers to donate foods that cannot be sold but are still suitable for human consumption to non-profit making organizations; if so, of the details; if not, the reasons for that?

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, in February 2014, the Government promulgated "A Food Waste & Yard Waste Plan For Hong Kong 2014-2022" which mapped out four strategies, namely food waste reduction at source, reuse and food donation, recyclable collection and food waste-to-energy as the backbone in order to face the challenge of food waste. The Government has also launched the Food Wise Hong Kong Campaign and Food Waste Recycling Partnership Scheme to encourage the public and the business sector to reduce food waste in their daily life and operation. According to the "Monitoring of Solid Waste in Hong Kong―Waste Statistics for 2015" published in December 2016, the quantity of food waste disposed of at landfills in 2015 decreased by 7.1% compared to 2014, while the per capita food waste disposal has decreased by 7.9%. This indicates that in recent years the reduction in food waste of the community has improved.

Our responses to the question raised by Mr CHAN Hak-kan are as follows:

(1) As food is not waste before it is disposed of and the quantity of the edible food discarded by various sale outlets in Hong Kong are related to the operational information of these individual companies, the Environmental Protection Department does not have the specific data.

(2) The Centre of Food Safety of the Food and Environmental Hygiene Department ("FEHD") issued the Food Safety Guidelines for Food Recovery ("Food Safety Guidelines") in August 2013, setting out food safety principles on donating food regardless of the types and sources of food. The Food Safety Guidelines have been made available on government websites for sharing with the trades, food recovery organizations and non-governmental organizations. At present, some food donors and recipients of food donation programmes have taken into account the Food Safety Guidelines in LEGISLATIVE COUNCIL ― 22 March 2017 5157

respect of food safety and liability issues during the discussion and in drawing up an agreement in order to eliminate concerns from food donors about the potential legal liabilities in relation to food safety.

In addition, if the organization applies funding from the Environment and Conservation Fund ("ECF") to finance food recovery project, at least one full-time employee in the project team should possess a health manager or hygiene supervisor qualification recognized by FEHD to oversee the food safety issues of the operation of the entire project.

So far, different food donation programmes have succeeded in donating edible surplus food to people in need. The current Food Safety Guidelines also play a role in ensuring the safety of food donations. Legislation on exempting legal liability of food donors relates to food safety, therefore the Government must take a cautious approach. At this stage, we have no plans to introduce such legislation.

(3) We are concerned about the possible losses occurring along the food chain because they present a loss in valuable resources. Therefore, we agree that surplus food and food that has not reached its "best before date" are still edible and should not be thrown away. In May 2013, the Government launched the Food Wise Hong Kong Campaign to promote reduction of food waste including donation of surplus food from business sectors.

In supporting the Food Wise Hong Kong Campaign implemented by the Government, since July 2014 ECF has been funding non-profit making organizations in the recovery of surplus food. The funded activities include collection of surplus but edible food from different channels such as restaurants, clubs, hotels, market traders, supermarkets, retail shops and food wholesalers for distribution to those in need. This also accords with our "Use less and Waste less" concept. As of December 2016, ECF has approved a total of 20 such projects, involving 10 non-profit making organizations, with funding support of about $32 million and with anticipation to collect around 2 300 tonnes of surplus food and to donate them to about 5158 LEGISLATIVE COUNCIL ― 22 March 2017

1.9 million headcounts. As these projects are implemented through non-profit making organizations, the Government does not have detailed information on the breakdown figures by food source.

The Government will continue to pursue the Food Wise Hong Kong Campaign and to enhance promotion of food donations through different channels including ECF. The funding support from ECF has already reduced the operation costs on food donation and provides a certain degree of incentive for the business sector. The Government will closely monitor the results of these schemes. In future, the implementation of the quantity-based municipal solid waste charging scheme will also increase the economic incentives for encouraging food sellers to donate surplus food that is safe for consumption in order to save waste charges.

MR CHAN HAK-KAN (in Cantonese): President, I would like to draw Members' attention to this picture. Man-high containers are filled with fruits and rice, and waste water has been deliberately poured into them to avoid human consumption. Every day some 1 000 tonnes of similar foods are disposed of at landfills in Hong Kong, and less than 1% of such foods can be recovered. The Secretary announced a waste charging scheme yesterday, but he has failed to do a good job in terms of food recovery, forcing members of the industrial and commercial sectors to deliver surplus foods to landfills. As regards supermarkets donating foods that cannot be sold, the problem lies with the Government's unwillingness to enact legislation to exempt legal liabilities of supermarket operators. The enactment of legislation to exempt legal liabilities of operators can facilitate waste reduction at source. Even though waste charging can likewise facilitate waste reduction at source, why don't the authorities adopt a simple, convenient and fast approach, but instead choose the more difficult approach of introducing waste charging, which has far greater implications and implementation difficulties?

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I would like to first share some data with Members. In Hong Kong at large, some 3 000 tonnes of food-related waste are disposed of at landfills every day. Some one third of such waste comes from the industrial and commercial sectors and the remaining two thirds are domestic waste. Of the food-related waste, some can LEGISLATIVE COUNCIL ― 22 March 2017 5159 be avoided being turned into waste at source and can be donated, but according to international figures, over half of the waste is comprised of fish heads, fish bones and fruit peels that need to be disposed of.

The Government has adopted a multi-pronged approach, implementing the Food Wise Hong Kong Campaign, which enables participating food establishments and hotels to reduce food waste at source in phases such as procurement of food ingredients, cooking and ordering the right amount of food by patrons. Certainly, the Food Wise Hong Kong Campaign also supports food donation, but the volume of food donated is insignificant when compared with the overall volume of food waste. Food donation is not a policy that is accorded top priority in other places.

Regarding the treatment of food-related organic waste, Hong Kong has put in place a comprehensive plan, including the progressive expansion of infrastructure facilities for turning food waste to energy. Our first food waste treatment plant in Lantau will be completed this year, and a tendering exercise is being conducted for the second plant. This is the big picture. Quantity-based waste charging is an effective scheme with wide coverage, targeting at industrial and commercial waste as well as domestic waste, and enhancing public awareness on the need to jointly reduce waste. This is the big picture concerning this issue. We believe that quantity-based municipal solid waste charging is the first step that can provide sufficient economic incentives to encourage the industrial and commercial sectors to reduce food waste and other waste.

MR TOMMY CHEUNG (in Cantonese): President, if we debate with the Secretary on this issue, the debate may last for hours. In the last paragraph of the main reply, the Secretary indicates that due to the implementation of waste charging, the authorities need to increase the economic incentives to resolve the problems. I have been talking about this issue for years. While this issue is not closely related to the Secretary, since he is present to take our questions, I would like to take this opportunity to put my question. Why doesn't the Government consider providing the business sector with tax refund, the amount of which will be based on the tonnage of surplus foods donated by business operators that are still suitable for consumption? Frankly speaking, as tax refund will only be provided to businesses making a profit, but not those incurring losses, why should the Government be afraid of? Why doesn't the Environment Bureau lobby the Financial Secretary to be less miserly? Will the Secretary refrain from merely 5160 LEGISLATIVE COUNCIL ― 22 March 2017 paying lip service without providing real financial support? He should seek to provide the business sector with tax refund to gain their support for the government policy, instead of penalizing them.

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I thank Mr Tommy CHEUNG for his advice and question. We need to consider this issue in a progressive manner. ECF provides non-profit making organizations with funds to donate surplus foods that are still suitable for consumption to grass-roots people in different venues, including venues operated by the industrial and commercial sectors. This manifests that the Government uses public money to provide the industrial and commercial sectors with better incentives for food donation. As such, the Government not only implements waste charging, but also provides ancillary services and assistance with public funds.

For example, the food waste treatment plant in Siu Ho Wan now under construction is an infrastructure project funded by public money. Our plan is that we will not collect entrance fees for food waste transported there, unlike the practice in foreign countries. We will use economic incentives to lower the threshold on the part of the industrial and commercial sectors, and assist them in supporting food donation as well as food waste recycling. We will adopt a multi-pronged approach to tackle this issue. Hong Kong is moving forward progressively, and the quantity-based waste charging to be implemented in the near future is an effective policy that has great implications. We will continue to hold discussions on ancillary services in the future.

MR TOMMY CHEUNG (in Cantonese): President, the Secretary has not answered my supplementary question.

PRESIDENT (in Cantonese): Which part of your supplementary question has not been answered?

MR TOMMY CHEUNG (in Cantonese): My question is very simple. The Secretary has referred to economic incentives and public money, but I am merely asking him whether he will consider providing the business sector with tax refund, so as to encourage them to donate foods. He has basically failed to address the gist of my question.

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PRESIDENT (in Cantonese): Mr CHEUNG, as you have already stated the part of your supplementary question that has not been answered, please sit down. Secretary, do you have anything to add?

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I have actually answered Mr Tommy CHEUNG's question. We must consider the issue of prioritization. According to our blueprint, quantity-based waste charging is an economic incentive-related policy, the impact of which on society must first be ascertained by us. Nowadays many large supermarkets as well as large shopping malls and markets have already participated in food donation schemes. Seeing that quantity-based waste charging will soon be implemented, business operators have made advance preparations, with the hope of reducing waste in this way, and hence alleviating their burden of waste charges payment in the future. For this reason, business operators are already motivated to engage in food donation, and the authorities need not, as suggested by Mr Tommy CHEUNG, step up measures in this regard, such as offering tax refund. This should be a strategy to be considered at a later stage depending on the circumstances in the future.

MR MA FUNG-KWOK (in Cantonese): In part (3) of the main reply, the Government states that in supporting the Food Wise Hong Kong Campaign, ECF has been funding non-profit making organizations, some $32 million has been committed over the past two and half years, and around 2 300 tonnes of surplus foods are expected to be recovered, that is, reducing merely 1% of waste. This figure is highly undesirable as the actual cost is about $7 per kilogram of waste recovered. How does the Government assess the effectiveness of the funded projects, is the result satisfactory, and has any comparison been made with other countries? I hope that the Government will make an assessment in this regard.

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I thank the Honourable Member for his supplementary question. Our food waste strategy covers at least three major areas, among which reduction of waste at source is the most cost-effective. Reduction of waste at source in respect of procurement of food ingredients, cooking and allowing customers to order the right amount of food according to their appetite is in the best interests of business operators and their patrons. Through the Food Wise Hong Kong Campaign, the 5162 LEGISLATIVE COUNCIL ― 22 March 2017 per capita food waste disposal in 2015 decreased by 7.9% compared to 2014, representing a daily reduction of hundreds of tonnes of food waste at source. This is the most effective approach. For this reason, we will step up promoting this campaign, including the Food Wise Eateries Scheme under the campaign. We hope that more eateries will support this scheme, which not only reduce their costs, but also provide patrons with choices, thus reducing food waste.

In addition, there are after all large quantities of fish heads, fish bones and fruit peels that need to be treated and disposed of, that is why we are constructing a food waste treatment plant. The food waste treatment plant in Siu Ho Wan will be completed in the second half of the year, and a tendering exercise is being conducted for the plant in the North District. The two plants can treat a total of 500 tonnes of food waste every day, and they are able to cope with, on a massive scale, food waste disposed of by the commercial and industrial sectors.

These two initiatives are the major measures adopted in the international community. Why do different places, including Hong Kong, support food donation? The impact of food donation on the volume of food waste is limited, but the promotion of a culture of cherishing food is the key. What matters most is not the volume of food waste that can be reduced through food donation, but how to promote a culture of cherishing food and create an atmosphere of care in society.

DR YIU CHUNG-YIM (in Cantonese): According to the main reply of the Secretary, the Government has, through ECF, approved 20 related projects, involving 10 non-profit making organizations, with funding support of about $32 million for the recovery of surplus foods. Can the Secretary explain to this Council why food donors funded by the Government can address the problem of legal liabilities associated with food donation? If we establish a mechanism under which community groups can, without having to rely on funding from ECF, donate food under a protected regime, we will not only save taxpayers' money, but also achieve far greater effectiveness.

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, here I would like to make it clear that in recent years, the atmosphere of food donation in Hong Kong has become increasingly positive. While some organizations make good use of ECF, some others engage in food donation on a massive scale LEGISLATIVE COUNCIL ― 22 March 2017 5163 without having to apply for ECF. On the basis of contracts and the Food Safety Guidelines, all organizations have adopted a positive attitude, which is assuring. Most importantly, food donors and food handlers have followed the steps under the Food Safety Guidelines, so as to adequately safeguard food safety.

ECF has two functions. First, food donation after all needs manpower and monetary support; otherwise it will just be empty talk. Apart from donating foods, business operators may not be willing to spend money subsidizing the provision of manpower and resource support by non-profit making organizations. For this reason, one function of ECF is to provide support to non-profit making organizations, so that they can provide surplus foods to grass-roots people. This is the first function of ECF.

Second, ECF has put in place strict requirements on employee training, such as requiring the project team to have at least one full-time employee who have received training and obtained certain qualification, so as to ensure that the entire process complies with the Food Safety Guidelines. This can ensure food safety, enhance public confidence, and demonstrate the best practices for the community. As such, ECF has two functions. It provides subsidies to make up for economic shortfalls on the one hand, and ensures compliance with the Food Safety Guidelines to enhance recipients' confidence on food on the other.

DR ELIZABETH QUAT (in Cantonese): President, I certainly will not think that the Secretary and the Bureau have done nothing over the past several years. In fact, the Government has indeed promoted a culture of cherishing food. However, despite all the tasks performed, when it comes to how to prevent foods that are still suitable for consumption from becoming food waste and being disposed of at landfills, we are still far from our targets even though we have made minor progress over the past several years. If we can enact legislation to discharge food donors from the associated legal liabilities, we will be moving a step forward, and enable more business operators to be willing to donate foods. As such, every step is equally important.

Other countries such as France are more aggressive. I reckon that the Secretary knows that France has even enacted legislation to require supermarkets to enter into donation agreements with food banks, so as to prohibit the disposal or destruction of surplus foods that have not expired. For this reason, should the Government study cases in foreign countries and consider again whether there are other approaches to alleviate the resistance sentiment of 5164 LEGISLATIVE COUNCIL ― 22 March 2017 business operators, and offer more incentives and even exert pressure on business operators to join the scheme, so that foods that are still suitable for consumption will not become food waste and be delivered to food waste treatment plants?

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I agree to the Honourable Member's remark that we need to offer incentives on the one hand, and exert pressure on the other. We provide incentives through ECF, making optimal use of public money to facilitate coordination, and we exert pressure through waste charging to be implemented soon, making business operators more concerned about waste reduction.

I would like to take this opportunity to talk about our views on the French requirement that supermarkets should donate foods and treat food waste. In fact, the French legislation is not comprehensive and has aroused severe criticisms. The legislation merely targets at supermarkets, yet the volume of foods disposed of by supermarkets is not that large in France. For this reason, different people hold different views, querying why the legislation merely targets at supermarkets but not other business operators.

The legislation has two sides, stipulating that foods that are still suitable for consumption and donation must be donated, and foods that are not suitable for consumption must be delivered to food waste treatment facilities for recycling. The problem with Hong Kong is that there is at present a lack of outlets for food waste recycling, which is an objective fact. For this reason, Hong Kong cannot directly and fully adopt the French legislation. We must understand that there are differences between the two places.

PRESIDENT (in Cantonese): Third question.

Policy on development of cooked food hawker bazaars, cooked food kiosks and on-street hawker stalls

3. MR TOMMY CHEUNG (in Cantonese): President, at present, the succession and transfer of various categories of hawker licences are subject to stringent restrictions. It has been reported that a noodle shop, which had been in operation for 31 years in the cooked food stalls (commonly known as "cooked LEGISLATIVE COUNCIL ― 22 March 2017 5165 food kiosks") in Kwong Fuk Estate, had to close down temporarily last month because, inter alia, the hawker licence concerned could not be immediately succeeded by the son of the deceased licensee. This case has aroused public concern over the prospect of cooked food hawkers and the gradual disappearance of such category of stalls with special characteristics, which mainly serve residents in the neighbourhood. In this connection, will the Government inform this Council:

(1) of the current number of cooked food or light refreshment hawker licences issued; whether the authorities will relax the relevant requirements to grant, apart from the spouse of a licensee, other immediate family members and the business partner(s) of a licensee the right to succeed and to be transferred such category of licences so that such stalls can continue to operate in-situ; if so, of the details; if not, the reasons for that;

(2) of the respective current numbers of vacant stalls in various cooked food hawker bazaars and cooked food kiosks; whether the authorities will consider renovating and consolidating the long-standing vacant stalls among these stalls, as well as identifying other sites for setting up new stalls, for bidding by people who start up small businesses, and providing them with support; if so, of the details; if not, the reasons for that; and

(3) whether the authorities will (i) formulate a long-term development policy for cooked food hawker bazaars, cooked food kiosks and on street hawker stalls by making reference to overseas experience and adopting the perspective of a facilitator and not a regulator, (ii) revamp such stalls by allocating resources, employing new technology and adopting the design principles which aim at making such stalls aesthetic, safe, hygienic, environment-friendly and functional, and (iii) launch overseas publicity and promotional campaigns to attract tourists to patronize such stalls; if so, of the details; if not, the reasons for that?

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, the cooked food hawker licences issued by the Food and Environmental Hygiene Department ("FEHD") are officially known as the Fixed-Pitch (Cooked Food or Light Refreshment) Hawker Licences, which are divided into three categories 5166 LEGISLATIVE COUNCIL ― 22 March 2017 according to the locations of the cooked food stalls. The first category relates to on-street cooked food stalls (commonly known as "Dai Pai Dong"). The second category relates to stalls located in cooked food hawker bazaars ("CFHBs") while the third one has to do with stalls located in public housing estates (commonly known as a "cooked food kiosk"), some of which are managed by the Housing Department ("HD") and some by private owners. Unlike applicants for the first and second categories of cooked food hawker licences, applicants for licences in respect of stalls in "cooked food kiosks" are required to sign a tenancy agreement with the owner for the stall concerned prior to FEHD's issuance of a hawker licence for operating the stall in a "cooked food kiosk". According to FEHD's understanding, after the licensee concerned in the "cooked food kiosk" in Kwong Fuk Estate of Tai Po passed away, the family member(s) of the licensee did not reach an agreement with the owner concerned on the tenancy of the stall and decided to cease the business as a result.

My reply to the various parts of the question is as follows.

(1) As at the end of 2016, a total of 161 Fixed-Pitch (Cooked Food or Light Refreshment) Hawker Licences were issued by FEHD.

Since 1972, under normal circumstances, the Government has stopped issuing new hawker licences including Fixed-Pitch (Cooked Food or Light Refreshment) Hawker Licences.

If a Fixed-Pitch (Cooked Food or Light Refreshment) Hawker Licence was issued before 21 May 2010, the licensee's spouse will be allowed to apply for succession or transfer of the licence when the licensee cannot continue to operate his or her business on grounds of death, old age or other reasons.

As for "Dai Pai Dongs", if a "Dai Pai Dong" is to be closed down because of the licensee's death, old age or other reasons, under the condition that the licensee's spouse gives up applying for succession or transfer of the licence, and that other immediate family members (i.e. parents or children) or other interested operators with genuine grounds apply for succession or transfer of the licence, FEHD will consider allowing the succession or transfer arrangements if the relevant District Council ("DC") supports the continuation of that "Dai Pai Dong"'s operation in situ.

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As regards a "cooked food kiosk", if the person concerned has signed a tenancy agreement in respect of the stall with the owner and is eligible for applying for a Fixed-Pitch (Cooked Food or Light Refreshment) Hawker Licence, in general, FEHD will issue a new licence to that person to operate at the relevant stall.

Given possible obstruction and environmental hygiene problems caused to the neighbourhood, on-street hawking activities have been consistently discouraged. Coupling with the well-developed retail trade and the change in shopping habits of the general public nowadays, FEHD has followed the said principle to implement the related policies. With effect from 21 May 2010, for all newly issued hawker licences, no succession or transfer arrangement is allowed.

(2) and (3)

As at the end of 2016, there are 75 vacant fixed pitches in the CFHBs managed by FEHD and no vacant stalls in "Dai Pai Dongs". As for HD's six housing estates with "cooked food kiosks", open tender exercises are being conducted for three vacant stalls in one estate. In another housing estate, its "cooked food kiosk" is vacant in preparation for redevelopment.

CFHBs under FEHD are meant to serve as a transitional arrangement and hence are not built in the first place for long-term use. The Audit Commission and the Public Accounts Committee made recommendations in April and July 2015 respectively regarding the management of FEHD's public cooked food markets, including formulating exit plans for CFHBs with high vacancy rates for releasing land for redevelopment. Between 2015 and 2016, FEHD has closed three CFHBs. FEHD will continue to follow up the formulation of exit plans for CFHBs with high vacancy rates, having regard to their business viability, the needs of the community, resource availability and competing priorities. For individual CFHBs with business viability, FEHD will arrange refurbishment works to improve their operating environment.

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Regarding the refurbishment and consolidation of "Dai Pai Dongs", the Central and Western DC supported in 2010 all the 10 applications of transfer of licences to licensees' children, on condition that applicants met the requirements stipulated by FEHD, which included proper disposal of sewage, suitable power and mains water supply, and fuel, etc. Besides, the Drainage Services Department installed sewer manholes connecting to underground sewers for each "Dai Pai Dong", and the Highways Department conducted resurfacing works.

For the "cooked food kiosks" under HD, HD advises that the relevant refurbishment works were completed in 2013. Repair and maintenance works will continue to be conducted according to actual needs.

The Subcommittee on Hawker Policy under the Legislative Council Panel on Food Safety and Environmental Hygiene was established in 2014-2015 to review hawker policy. We have followed up the recommendations made by the Subcommittee, including:

(a) continuing to implement the assistance scheme for fixed-pitch hawker areas to minimize the fire risks and improve the outlook of fixed pitch areas. We will also review whether or not to issue new on-street hawker pitch licences;

(b) consulting DCs on matters related to issuing licences to tradesmen with characteristics reminiscent of our local culture and heritage. Examples include cobblers, watch repairers and Chinese facial cosmeticians, etc.;

(c) subject to the support of the relevant DCs, the Government may consider issuing new "Dai Pai Dong" licences on a pilot basis. The Government will review the licensing conditions according to the review on the effectiveness of the pilot cases and the public's views, including the views of the relevant DCs;

(d) we are considering converting one existing public market with relatively low let-out rate into an off-street cooked food centre on a pilot basis; and

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(e) the Government adopts a positive attitude towards specific proposals on bazaars put by individuals/organizations in the community. If the relevant bodies have secured suitable sites and obtained support from the relevant community and DCs, and provided that public order and safety, food safety and environmental hygiene are upheld, public passageways are not obstructed, we stand ready to facilitate liaison with relevant Government Bureaux and Departments regarding the use of the sites.

The Government has been promoting through the Hong Kong Tourism Board ("HKTB") local delicacies to visitors and international media via various channels. HKTB will continue with its work in this regard. If there are new features with merit for tourism promotion introduced to "Dai Pai Dongs" or cooked food centres, HKTB will promote these eateries to the visitors.

MR TOMMY CHEUNG (in Cantonese): President, the Secretary's main reply is very general; perhaps he has not read carefully the contents of the question before giving a reply. I think the question that I now raise should not be the third question, but the first one instead. In part (3) of my main question, I ask whether the authorities will formulate the relevant policy for cooked food hawker bazaars by making reference to overseas experience and adopting the perspective of a facilitator. For decades and even at the time of the former Urban Council, the authorities already wanted to sap "Dai Pai Dongs" because a very large number of "Dai Pai Dongs" would adversely affect the environment. At present, the attitude of the legislature has changed and the Government's permission for succession of licences is a progress. But regarding the licences of the 10 "Dai Pai Dongs" in Central just mentioned by the Secretary, some of these "Dai Pai Dongs" have been swallowed up by the stalls nearby. I would like to ask the Secretary: Will the Food and Health Bureau consider establishing the "Dai Pai Dongs" as described in part (3) of my main question, that is, employing new technology to make such stalls aesthetic, safe, hygienic, environment-friendly and functional? Can the Secretary take the lead in conducting the study?

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SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, I believe Mr CHEUNG may have noticed that in 2014-2015, after discussions were held between the Bureau and the Subcommittee set up by the then Legislative Council Panel, the Government had specifically changed its policy perspective. The authorities have changed from the original perspective of a regulator to a perspective relating to development and Hong Kong's diversified economy, hoping to do some work to facilitate local development, especially the development of bazaars with characteristics.

However, I hope Mr CHEUNG will understand that what we are now doing or the problem we are now facing is not related to the fact that colleagues of this Bureau or FEHD still adopt the perspective of a regulator or that our attitude is not proactive enough. The biggest difficulty encountered by us is to identify suitable places and such places must comply with a number of requirements such as whether consent is given by the owners and landlords of these places, and whether there are other uses, etc. Most importantly, can these places muster the support of local residents, residents nearby and DCs. In holding bazaars or setting up hawker stalls, the residents nearby very often think that nuisance will be caused, and environmental hygiene and public order be affected. I can tell Members that the authorities have a positive attitude in this connection.

If any district organization has identified some places in any area, as long as there is considerable feasibility of holding bazaars and DCs have expressed support, the authorities will play a coordinating role to liaise with different bureaux and departments, as well as some organizations outside the Government and actively provide assistance in the hope that bazaars can be held.

MR LUK CHUNG-HUNG (in Cantonese): President, members of the public have ardent demand for diversified food and catering services. They are tired of restaurants run by consortia or large chain groups. Mr Tommy CHEUNG has asked a very good question on how the authorities can facilitate more people to operate cooked food kiosks and introduce more competition.

The Government has introduced earlier the food truck as a tourism project, but we know that the business of food trucks varies and that the occupancy rate of some FEHD markets is low. I would like to ask the Secretary whether the authorities will consider conversing some stalls or floors of the markets with a LEGISLATIVE COUNCIL ― 22 March 2017 5171 low occupancy rate into cooked food centres or food courts, thereby giving some opportunities to small business operators and providing consumers with more choices.

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, Members may have noticed that I have cited an example in my main reply, which is related to this supplementary question. The authorities adopt two strategies for markets or cooked food centres: first, if the utilization rate of these places is too low, we will study whether the places have potential for development and whether the residential or industrial and commercial facilities nearby will support their effective operation after improvements have been made to the facilities and the environment. If the answer is in the negative, the authorities will close these centres. I have just mentioned that the authorities had closed several centres on the recommendations of the Audit Commission and the Public Accounts Committee.

However, if the vacancy rate of a centre or a market is high but there are other conditions which we think that converting the place into a cooked food centre with characteristics may facilitate effective operation, the Government will try to turn a certain part of the vacant market into a cooked food or a catering centre with characteristics.

Just now, I have forgotten to respond to the point about considering overseas experience. The authorities have always paid close attention to overseas experience. When I visit other places, I will certainly patronize the bazaars or cooked food centres. I believe Members have noticed that places where cooked food centres can be found on the streets or in open space are getting fewer and fewer, with the exception of developing places. Taking the city of Singapore as an example, more and more food courts or cooked food centres are located in multi-storey commercial buildings, and the number of on-street cooked food centres is diminishing.

MR LEUNG YIU-CHUNG (in Cantonese): President, in parts (1) and (2) of his main reply, the Secretary pointed out that "for individual CFHBs with business viability, FEHD will arrange refurbishment works to improve their operating environment." In fact, there are a few cooked food markets in Tsuen Wan and 5172 LEGISLATIVE COUNCIL ― 22 March 2017

Kwai Chung where the environment is very poor; they are exposed to the sun and rain. In times of strong wind or heavy rain, operation will not be possible, and environmental hygiene is also really bad.

I would like to ask the Secretary: When he mentioned the refurbishment works, apart from repairing the dilapidated areas, will the business environment be improved completely to facilitate the effective operation of the stalls? In fact, people in the factory area or other areas will go to the cooked food markets for meals, will the Secretary carry out thorough refurbishment works in these markets?

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, my answer to this question contains two parts. First, if the cooked food centre has some advantages as described by the Member, such as passenger flow and location, which make more effective operation possible, our policy is to try our best to provide resources to improve its facilities.

The improvement of facilities includes some maintenance work; and if necessary, we may also carry out thorough or large-scale refurbishment works. However, there are two issues to be considered in carrying out such works. First, when carrying out relatively large-scale or thorough refurbishment and improvement works, the food stalls in these cooked food centres may have to stop operating for some time. Therefore, we must consult the stall owners and difficulties will be encountered in the process. Stall owners may find themselves caught in a dilemma: is it worth stop operating for a few months or even a longer period of time to carry out renovation works for a better environment? After the consultation stage, we will carry out feasibility studies on the public works projects, and then actively bid for government resources for carrying out the related works.

IR DR LO WAI-KWOK (in Cantonese): President, the Secretary has also mentioned that he will visit cooked food stalls during visits to other countries. I believe Hong Kong people are very familiar with Singapore, there is a large number of "Dai Pai Dongs" in the country and the hygienic conditions are very good. There are also many internationally renowned food centres.

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I would like to know whether the Secretary really has a long-term commitment on this issue and will conduct active promotion as well as utilize different opportunities. For example, will there be new cooked food kiosks after the completion of new housing estates? Will there be cooked food centres with better environment in the new "wet markets"? Will an interdepartmental team be set up to carefully examine possible promotion opportunities in this respect?

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, Ir Dr LO Wai-kwok mentioned foreign experience again and I would like to make a point clear. I have visited the cooked food markets in Southeast Asia such as Singapore and Malaysia many times. In recent years, I found that in developing countries, there are still large-scale cooked food centres in open space, that is, on the streets. Such cooked food centres can still be found in Thailand, Malaysia and Indonesia. However in Singapore that I visit frequently, the number of on-street cooked food centres is diminishing and most cooked food centres are now located in shopping centres.

As we all know, the relevant policies of the Government have been slightly revised. Depending on needs, the authorities will identify places in new development areas for building large markets. In the course of building markets, we will examine whether it is necessary and suitable to set up cooked food centres in these markets.

PRESIDENT (in Cantonese): Fourth question.

Electricity charges for tenants of sub-divided units of flats

4. MR LEUNG YIU-CHUNG (in Cantonese): President, quite a number of tenants residing in sub-divided units ("SDUs") of flats not installed with individual electricity meters have relayed to me that the unit rates of electricity they are charged by their landlords are higher than the tariff rates set by power companies, which has increased their burdens of living. The reason given by the landlords is that the power companies have adopted progressive tariff structures for calculating the electricity charges payable by residential users; if they charge the tenants for use of electricity on the basis of the tariff rates applicable to their actual electricity consumption, the total amount collected will 5174 LEGISLATIVE COUNCIL ― 22 March 2017 be insufficient to meet the electricity charge payable to the power companies which is based on the higher tariff rates applicable to the electricity consumption of the whole flat. Some concern groups have requested various government departments to address the aforesaid issue, but to no avail. In this connection, will the Government inform this Council:

(1) of the respective powers and responsibilities of various government departments in tackling the issue of landlords of SDUs overcharging their tenants for use of electricity, as well as the progress in following up this issue;

(2) of the laws that the Government may invoke to impose penalties on those landlords of SDUs who have overcharged their tenants for use of electricity; whether it will consider increasing the relevant penalties to enhance the deterrent effect; if so, of the details and timetable; if not, the reasons for that; and

(3) whether the Government will require the power companies to adopt a flat rate for calculating electricity charges for flats with SDUs not installed with individual electricity meters, so as to eliminate the excuse of landlords of SDUs for overcharging their tenants for use of electricity?

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, with information from the relevant Policy Bureau and the two power companies, namely the CLP Power Hong Kong Limited ("CLP") and Hongkong Electric Company Limited ("HKE"), my consolidated reply is as follows:

The two power companies implement a progressive tariff structure that is applicable to all residential customers. In 2016, the maximum residential net tariff of CLP and HKE was $2.01 and $1.849 per unit respectively. For sub-divided units ("SDUs"), as a number of tenants are living in one residential flat sharing the same electricity account and meter, the total electricity consumption of SDUs in the same flat may be higher than that of an ordinary residential flat, and hence the net tariff payable is higher than the average tariff. Whether landlords have overcharged tenants over the use of electricity depends on the total electricity consumption of the flats concerned, and cannot be determined by simply referring to the average tariff.

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(1) In respect of tenancy agreements, the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) ("the Ordinance") deals with matters relating to the rights and obligations of landlords and tenants. The Ordinance does not impose regulations on the level of electricity charges agreed by landlords and tenants. Before entering into a tenancy agreement, the landlord and the tenant should agree on the terms and conditions of the agreement, including the level of and basis for calculating rents and other charges (e.g. water and electricity charges). Once the tenancy agreement is entered into, both parties are required to abide by the relevant terms and conditions. As for charges outside the scope of the written tenancy agreement such as electricity charges, landlords and tenants should discuss and negotiate an arrangement based on any previous agreement, including oral agreement. Tenants may make use of the Rating and Valuation Department's ("RVD") free advisory service on tenancy matters.

(2) If a tenant considers that the landlord has overcharged the use of electricity and breached the tenancy agreement, RVD can provide mediatory services subject to the agreement of both the landlord and the tenant. If both parties are still unable to resolve the dispute, they may have to seek recourse to civil proceedings.

The collection of electricity charges by landlords from tenants of SDUs is not just an energy or electricity issue. It also involves the tenancy arrangements between landlords and tenants as well as building structure, etc. Regulating the collection of electricity charges by legislation and imposing penalties is not the appropriate tool for resolving the issue.

(3) As SDUs may involve legal and building safety issues, etc., it is difficult in practice to establish an electricity tariff structure for SDUs that is different from the tariff structure for other residential flats. Besides, as the financial conditions of the households living in SDUs may vary, devising a different tariff structure for them may not be fair to other residential customers.

To assist households living in SDUs, CLP has been working with social welfare organizations, green groups and electrical workers associations since 2014 on the free installation of individual meters 5176 LEGISLATIVE COUNCIL ― 22 March 2017

for households who have obtained landlords' consent and whose SDUs are equipped with electrical installation that meets the relevant standards. HKE has also explored ways to install individual meters for households living in SDUs.

Besides, in order to help those in need, the two power companies have introduced different concessionary schemes to reduce their electricity expenses. For example, HKE has provided concessionary tariff schemes for application by eligible elderly, persons with disabilities, single-parent families and the unemployed. Beneficiaries are entitled to a 60% discount for the first 200 units of electricity consumed in a month in addition to the exemption from the payment of deposit and minimum charge. Separately, CLP organized the "Power Your Love Programme" in 2015 and 2016 that encouraged customers to save energy and to donate the electricity saved to the disadvantaged and families in need, including SDU tenants, to reduce their electricity expenses. Beneficiaries include recipients of the Comprehensive Social Security Assistance, elderly singletons, persons with disabilities, SDU tenants who are in need, and boarders in special schools. Each beneficiary household will receive a subsidy of $300 to reduce their electricity expenses.

MR LEUNG YIU-CHUNG (in Cantonese): President, the Secretary stated that the tariff of the two power companies are $2.01 and $1.849 per unit respectively, but the tariff paid by SDU tenants far exceeds these amounts. Many SDU tenants have met with concern groups and the two power companies to seek a solution. Undoubtedly, as stated by the Secretary in part (3) of the main reply, the two power companies are willing to install individual meters for SDU tenants in their units. To our disappointment, so far only two SDUs have been installed with individual meters. Why? As the Secretary has said, the landlords' consent must be obtained before individual meters can be installed. As a matter of fact, landlords will never give their consent because after individual meters are installed, their expenditure will increase and the more units of electricity consumed, the more a landlord has to pay. Why will a landlord agree to that?

As indicated by the two power companies, landlords' consent must be obtained before individual meters can be installed, but in respect of the present situation, landlords will never give their consent. As such, how can the LEGISLATIVE COUNCIL ― 22 March 2017 5177

Secretary resolve this problem? The present electricity charges paid by SDU tenants are neither reasonable nor fair, imposing a great burden on the tenants. If the problem of "obtaining landlords' consent" is not resolved, all efforts will be futile and meaningless. I would like to ask whether the Secretary can provide assistance to deal with this problem from a policy or legal perspective.

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I thank Mr LEUNG for his supplementary question. The above problem is inextricably linked to many issues, as the tenancy agreement between landlords and tenants covers the overall rent as well as other charges, including electricity charges. Generally speaking, why must the landlords' consent be obtained? I hope Members will understand that a residential unit is a private property and power companies must respect people's ownership of private properties. Hence, landlords' consent must be obtained before individual meters can be installed. The Government is working with the two power companies and social welfare organizations to find ways to provide assistance for the needy from various perspectives, such as CLP's "Power Your Love Programme" mentioned earlier, in the hope of easing the relevant households' burdens through the social welfare organizations as a medium. This is one feasible solution that the authorities can think of so far and I think Members will agree to that.

Let me speak more on this issue. How many SDUs have been installed with individual meters? CLP has been working with social welfare organizations, green groups and electrical workers associations since 2014 on the free installation of individual meters for households who have obtained landlords' consent and whose SDUs are equipped with electrical installation that meets the relevant standards. According to the information provided by the two power companies, CLP has so far installed nine individual meters for SDU tenants. We certainly hope that more landlords will act according to society's expectation and consent to the installation of individual meters for SDU tenants, so that they can share the electricity charge in a fairer manner.

MR KWONG CHUN-YU (in Cantonese): President, according to the agreement between Mr and Mrs CHEUNG, who live in an SDU in Prince Edward Road, and their landlord, they should pay $1.3 for each unit of electricity and $13 for each cubic metre of water consumed. However, the landlord later raised the electricity and water charges to $1.5 and $15 respectively without notifying 5178 LEGISLATIVE COUNCIL ― 22 March 2017

Mr and Mrs CHEUNG. The landlord later explained that owing to a fire that broke out in the next building two years earlier, he had to repair the meters and thus had to raise the electricity and water charges.

The electricity and water charges are just like seafood prices which can be raised by the landlord at will. President, what we are lacking now is the penalty. According to Mr and Mrs CHEUNG, they had sought help from the Environment Bureau eight times, the Transport and Housing Bureau three times and the Development Bureau once. All the Bureaux declined to help, claiming that the problem was outside their ambit and no department was responsible for that. I would like to ask the Secretary if any specific penalty can be meted out to landlords for overcharging tenants for use of electricity and water.

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, it has been mentioned in the main reply concerning what constitutes overcharging for use of electricity. As mentioned in the beginning and part (1) of the main reply, firstly, the landlord and the tenant should enter into a tenancy agreement, written or oral, and the problem in question is not whether there is overcharging but whether either of the parties has breached the agreement. It has been mentioned in the main reply that under the present practice, tenants of SDUs or not, should act according to the relevant procedures. I think the Member has to determine whether the problem involves a breach of the tenancy agreement or as the Member said, overcharging the use of electricity.

Secondly, how to define overcharging for use of electricity? As I have said, the electricity charge in Hong Kong is calculated according to a progressive tariff structure and the maximum residential net tariffs of CLP and HKE are over $2 and $1.8 per unit respectively. At what level should the charge be considered overcharging? That has to be considered from different perspectives. I think Members must first find out what the problem is. Of course, this is a complicated matter. We all wish to help SDU tenants. As I have said in part (3) of the main reply, we wish to help them through different approaches.

MS ALICE MAK (in Cantonese): President, the Federation of Trade Unions ("FTU") has been highly concerned about the problem of energy poverty. At end-2015, when the Government consulted the public about the future development of the electricity market, FTU voiced its concern about the energy poverty problem of the grass roots, hoping that the authorities would, in the LEGISLATIVE COUNCIL ― 22 March 2017 5179 process of reviewing the Electricity Ordinance and the Supply Rules governing the two power companies, ban SDU landlords from reselling electricity to their tenants, the so-called "speculation on electricity". But the authorities had not responded. The Secretary said in the main reply that since 2014, CLP has conducted certain studies, and in his reply to Mr KWONG Chun-yu's question just now, the Secretary also said that CLP has installed nine individual meters for SDU tenants. Given that there are tens of thousands of SDU tenants in Hong Kong, when will the Government consider reviewing the current Electricity Ordinance and the Supply Rules? How can we ensure that SDU landlords will not "speculate on electricity"? We are aware of the authorities' concern about the present laws concerning tenancy and the related problems. As the review of the Electricity Ordinance and the Supply Rules is within the ambit of the Secretary, when will he conduct a review? Is there a timetable for the review?

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I thank Ms MAK for her question. First of all, Members must understand that the Electricity Ordinance provides for the safety of electricity supply, while the Supply Rules are related to the terms of service of the two power companies, which are totally different from government legislation. That said, we are negotiating with the two power companies about the Scheme of Control Agreements ("SCAs"). We had consulted the public earlier and after taking on board the views of the industry and of members of the public, we will consider the provision of further assistance to needy households as appropriate within the framework of SCAs. We are now working hard to seek the appropriate channel. We are now discussing with the two power companies the new arrangements under SCAs in the hope of grasping this opportunity to move forward. However, we hope that Members will understand that under this framework, certain matters are outside the Government's ambit and hence we wish to carry them forward under SCAs to achieve the end.

DR YIU CHUNG-YIM (in Cantonese): Under the Supply Rules of the two power companies, it is a breach of the Rules to resell electricity. Regrettably, the only action the power companies can take is to stop the electricity supply, and eventually the SDU tenants are the ones being affected. I would like to ask the Secretary whether he will consider asking the Inland Revenue Department to prosecute the landlords concerned for tax evasion or recover profits tax from them for reselling electricity.

5180 LEGISLATIVE COUNCIL ― 22 March 2017

SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I think Dr YIU's question involves another perspective, that is, whether the landlords have filed the tax return or how to file the tax return, which is another issue. The focus of today's question is how to help SDU tenants ease their financial burden, which is crux of the problem. As a matter of fact, as landlords are operating a business, they expect a return, and they can do so by charging their tenants on various items. Let us consider how we can truly help SDU tenants. There are two ways: first, through programmes such as the "Power Your Love Programme" implemented by the two power companies to provide assistance for the grass roots, including SDU tenants; and the other is the measure to be implemented under the new SCAs that we are studying at the moment. We will listen to public's views as regards how to make enhancement in these two areas. We need time to negotiate with the two power companies, and we are also studying on how to enhance the two approaches to help the people in need in a more effective manner.

PRESIDENT (in Cantonese): Fifth question.

Enacting legislation to prohibit acts of insulting public officers on duty

5. DR ELIZABETH QUAT (in Cantonese): President, last month, in response to the question on enacting legislation to prohibit acts of insulting police officers on duty, the Commissioner of Police indicated that he welcomed another piece of legislation to protect police officers in the enforcement of the law. In addition, quite a number of members of the public have pointed out that in recent years, incidents of protesters and offending drivers insulting and provoking police officers with abusive language have occurred from time to time. In this connection, will the Government inform this Council:

(1) of the legal provisions that the authorities may invoke currently to institute prosecutions against persons who have insulted police officers on duty; the respective numbers of prosecutions and convictions as well as the penalties imposed on the convicted persons in the past three years; whether the convicted persons include protesters who participated in the occupation movement in 2014 or the riot in Mong Kok in February last year;

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(2) whether it has studied overseas legislation on the offence of insulting public officers and the enforcement of such legislation in recent years; if so, of the details, and whether the study outcome will be made public, so as to enhance public understanding of the relevant issues and form the basis for the discussions on the enactment of such legislation in the future; and

(3) given that the Public Health and Municipal Services Ordinance and the Births and Deaths Registration Ordinance contain provisions prohibiting any person from using abusive language to the relevant public officers, whether the authorities will make reference to those provisions and enact dedicated legislation to prohibit acts of insulting police officers and other public officers; if not, how the authorities prevent such acts from becoming increasingly rampant?

SECRETARY FOR SECURITY (in Cantonese): President, with regard to Dr Elizabeth QUAT's question, after consulting the Civil Service Bureau, I provide below a consolidated reply:

Hong Kong is a society under the rule of law. The law stipulates what behaviours are beyond social norms, and those who break the law should be brought to justice. To embody the rule of law, it requires not only comprehensive statutory provisions and effective law enforcement, but also people's awareness and observance of the law. Public officers, including disciplined services and non-disciplined services officers, perform their duties to safeguard the overall interest of the Hong Kong community and citizens' legitimate rights. They are absolutely not seeking personal gains or making life difficult for the general public with intent.

All along, public officers enforcing the laws have been performing their duties in a professional and impartial manner in accordance with the law to serve the community with dedication. They should be respected and not be insulted verbally or by any acts. However, in recent years, there were frequent occurrences of incidents where public officers undertaking law enforcement duties were arbitrarily insulted or provoked by members of the public, who even had scuffles with the former in some cases. This has greatly increased the work stress of public officers and the difficulties in performing their duties, dampening their morale and passion for serving the public. Such circumstances are certainly not conducive to the benefit of Hong Kong.

5182 LEGISLATIVE COUNCIL ― 22 March 2017

Currently, when a person resists, obstructs or assaults a public officer undertaking law enforcement duties, the responsible authorities may, in light of the actual circumstances, invoke relevant ordinances to initiate prosecution. For instance, section 23 of the Summary Offences Ordinance (Cap. 228) stipulates that any person who resists or obstructs a public officer or other person lawfully engaged, authorized or employed in the performance of any public duty shall be liable to a fine of $1,000 and imprisonment for six months. From 2014 to September 2016, a total of 189 persons were convicted for committing the above offences. Section 17B of the Public Order Ordinance (Cap. 245) stipulates that any person who in any public place behaves in a noisy or disorderly manner, or uses any writing containing threatening, abusive or insulting words, with intent to provoke a breach of the peace, or whereby a breach of the peace is likely to be caused, shall be guilty of an offence and liable on conviction to imprisonment for 12 months.

With regard to the protection for police officers in the execution of their duties, according to section 36(b) of the Offences against the Person Ordinance ("OAPO") (Cap. 212), any person who assaults, resists, or wilfully obstructs any police officer in the due execution of his duty or any person acting in aid of such officer shall be liable to imprisonment for two years on conviction of the offence after being tried either summarily or upon indictment. Section 39 of OAPO stipulates that any person who commits an assault occasioning actual bodily harm shall be liable to imprisonment for three years after conviction upon being tried on indictment. Section 40 of OAPO also stipulates that any person who is convicted of a common assault shall be liable to imprisonment of one year. In addition, section 63 of the Police Force Ordinance (Cap. 232) states that any person who assaults or resists any police officer acting in the execution of his duty or aids or incites any person so to assault or resist, or refuses to assist any such officer in the execution of his duty when called upon to do so, or who, by the giving of false information with intent to defeat or delay the ends of justice, wilfully misleads or attempts to mislead such officer, shall be liable on summary conviction to a fine of $5,000 and to imprisonment for six months.

As for other disciplined services, including the Immigration Department, the Customs and Excise Department, and the Fire Services Department, there are statutory provisions stipulating that any person who assaults, resists, or obstructs any officer in the due execution of his duty shall be guilty of an offence and liable to punishment ranging from a fine of $2,000 to imprisonment for six months.

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While there are existing legislation (including the Mass Transit Railway By-laws (Cap. 556B), Hospital Authority Bylaws (Cap. 113A), Road Traffic (Public Service Vehicles) Regulations (Cap. 374D), Airport Authority Bylaw (Cap. 483A) and Public Health and Municipal Services Ordinance (Cap. 132)) forbidding any person to curse others, or to use obscene, offensive, revolting or annoying languages, or to cause obstruction or unpleasantness to others in specified places, such as railway premises, hospitals, public vehicles, airport, parks, sports venues and bathing beaches, the coverage of the legislation prohibiting acts of insulting public officers undertaking law enforcement duties, which is of concern to members, is not comprehensive.

Recently, the issue of whether it is necessary to legislate for the "offence of insulting public officers enforcing the laws" has aroused heated discussion again in society. I notice that public views on this issue are divergent and even polarized. Opinions in support of the enactment of legislation mostly consider that the community is restless, conflicts are mounting and public officers enforcing the laws are facing increasingly heavy pressure. Therefore, the Government should legislate to protect public officers enforcing the laws from being arbitrarily insulted. Opposing views hold that the enactment of such legislation will cause further social division and even restrict the public's freedom of speech and expression, thus creating more unnecessary rows and conflicts.

For the Government to undertake any legislative work, it has to prudently consider in a holistic approach all opinions, including those for and against it, whether the expected goals and effects can be achieved through legislation, whether the offence has a clearly defined scope of regulation, the elements involved, whether there are acceptable grounds of defence, and the appropriate penalties.

At this stage, although the Government has no plan to legislate against the act of insulting public officers enforcing the laws, we remain open on whether to legislate, and will explore its feasibility, and continue to listen to the views of all parties. We will also gather from other jurisdictions information on relevant regulations, precedents, the effectiveness of enforcement and the problems encountered for study. Should the Government have any legislative proposals, we will consult the relevant panel(s) of the Legislative Council.

President, I reiterate that due respect should be given to public officers enforcing the laws, as they have always been serving the public in an impartial manner. In all circumstances, arbitrary acts of insulting others are improper and 5184 LEGISLATIVE COUNCIL ― 22 March 2017 unacceptable in a civilized society. We hope that everybody will appreciate and respect public officers enforcing the laws, be self-disciplined and abide by the law, and be cooperative and supportive to their work.

DR ELIZABETH QUAT (in Cantonese): President, as stated in the Secretary's reply, some people opine that to legislate for the "offence of insulting public officers enforcing the laws" will cause further social division and create more conflicts. However, the so-called conflicts are created by people who always provoke the Police with intent to damage law and order and disrupt peace in Hong Kong society. Hence, legislate or not, these people will continue to create conflicts. Thus, the claim that the enactment of legislation will deepen the clashes between the Police and the public or create more conflicts is actually inverting the cause and effect as well as confusing right and wrong. On the contrary, only through the enactment of legislation can we remind these people not to think that insulting and provoking police officers is a matter of course or having no consequences.

I would like to ask if the Secretary agrees that police officers in Hong Kong should enforce the law without being interfered and execute their duties with dignity in order to uphold social order. As the Secretary has just said, given that the coverage of the existing laws of Hong Kong is not comprehensive, will the Secretary make reference to the laws of other places, such as Macao, France, Singapore, New South Wales and Taiwan, so as to expeditiously legislate for the offence of insulting public officers enforcing the laws?

SECRETARY FOR SECURITY (in Cantonese): I thank Dr QUAT for the supplementary question. Apart from police officers, all public officers in the execution of their duties are actually serving members of the public, they should therefore be respected. Such respect should not only be shown to police officers, but also to all public officers executing their duties. I believe we should all adopt such an attitude.

As I have mentioned in the main reply, we will study overseas experiences and Dr QUAT has cited Macao as an example. It is true that Macao had legislated for the offence of insulting other people, and in addition to Macao, other common law jurisdictions had also enacted similar legislation. We have started to collect information, and apart from examining how the legal provisions LEGISLATIVE COUNCIL ― 22 March 2017 5185 should be drafted, we will also find out if there are cases indicating the judgment of the local courts, that is, as stated in the main reply, how the offence of insult should be defined, the scope of regulation, as well as the provisions for defence. In this connection, we must collect information, and then embark on the study and examination of the matter.

MRS REGINA IP (in Cantonese): President, I thank the Secretary for briefing us on the local laws which provide for the circumstances under which prosecution can be instituted against a person who resists or obstructs a law enforcement officer enforcing the law, or against a person who uses offensive languages or behaves in a noisy or disorderly manner in specified places.

Nonetheless, I would like to ask the Secretary: Is there any legislation in this world that convicts a person who merely insults a public officer without being actually involved in any disorderly act or obstructing public officers undertaking law enforcement duties? Is there such a piece of legislation? If so, is there any successful prosecution? If similar legislation is enacted in Hong Kong, providing that a person will be convicted purely for his words, what will be the consequence if the prosecution is unsuccessful?

SECRETARY FOR SECURITY (in Cantonese): I thank Mrs Regina IP for her supplementary question. As I have pointed out in the main reply and in my response to Dr Elizabeth QUAT's supplementary question, using Macao's offence of insult as an example, the offence can be divided into two parts. The first part is concerned with a person insulting another person, and the other part is concerned with a person insulting a public officer in the execution of his/her duty. Both acts are illegal, but the penalty is heavier for the latter.

Furthermore, I have also looked into Singapore's Protection from Harassment Act. This Act is also divided into two parts: The first part is concerned with the penalties for insulting public officers enforcing the law, which nonetheless also contains the so-called exceptions setting out the circumstances under which the act is not unlawful. The second part is concerned with instituting civil actions against a person insulting a non-public officer in accordance with the local law.

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After the study, we found that many jurisdictions in the world do have different provisions and interpretations in respect of the issue which is of concern to Mrs Regina IP. Just as I have said, apart from the law itself, we must also take into consideration the local situation, the applicability of the legislation and the possible consequences before a comprehensive assessment can be made.

PRESIDENT (in Cantonese): Mrs Regina IP, has your supplementary question not been answered?

MRS REGINA IP (in Cantonese): President, the Secretary has not answered my question about cases of successful prosecution.

PRESIDENT (in Cantonese): Secretary, do you have anything to add?

SECRETARY FOR SECURITY (in Cantonese): Sorry, can you repeat the question as I did not hear very clearly just now.

MRS REGINA IP (in Cantonese): The Secretary has briefed us on some overseas legislation, but is there any case of successful prosecution so far? What were the penalties?

SECRETARY FOR SECURITY (in Cantonese): As I am aware, there were successful prosecutions in Macao.

MR WONG KWOK-KIN (in Cantonese): President, subsequent to the incident in 2013 in connection with the use of foul language by LAM Wai-sze, a female teacher, I requested the Government at a Panel meeting to legislate for the "offence of insulting police officers". But unfortunately, many years have passed since 2013 and no action has been taken by the Government. Our rationale at that time was as follows: police officers, being law enforcement officers, were responsible for maintaining law and order in the community and protecting the safety of members of the public, yet, if they were, as in the LEGISLATIVE COUNCIL ― 22 March 2017 5187

"Incident of LAM Wai-sze", being insulted for an extended period of time in public places, people would query how police officers could safeguard the safety of the public if they could not even uphold their own dignity. Secretary, this is our rationale. Yet, why has the Government failed to make an inch of progress since 2013? As the Secretary has just highlighted in the main reply, some people hold that the enactment of legislation will cause further social division and restrict the public's freedom of speech and expression. Such arguments do not stand to reason at all. Will there be no social division if insulting police officer is not an offence? The freedom of speech and expression …

PRESIDENT (in Cantonese): Mr WONG Kwok-kin, what is your supplementary question?

MR WONG KWOK-KIN (in Cantonese): … President, I will raise my supplementary question right away. Is "greeting" someone's mother with profanity an expression of freedom of speech? Therefore, when will the Government eventually concede to embark on a public review of the "offence of insulting police officers" or the "offence of insulting public officers enforcing the law"? Will the Government also inform us of the relevant timetable and the action to be taken?

SECRETARY FOR SECURITY (in Cantonese): Mr WONG, subsequent to the incident which you have just mentioned, the Police have issued guidelines relating to problems that frontline officers may encounter and have stepped up the relevant training. Mr WONG just now also mentioned the opposition views quoted by me in the main reply concerning the enactment of legislation for the "offence of insulting public officers enforcing the laws", and what I mean is that there are both positive and negative views. I hope Mr WONG will also notice that, as I have reiterated time and again in my main reply, public officers enforcing the law should be respected as they are serving the public. If they have difficulties in enforcing the law, the community as a whole will suffer in certain respect.

As Justice Patrick CHAN has said in the case of HKSAR v CHOW Nok Hang―I mentioned this case because Mr WONG just now touched on the freedom of speech and expression, so I would like to share with Members the 5188 LEGISLATIVE COUNCIL ― 22 March 2017 remarks made by Justice CHAN―While the Court should interpret the freedom of speech and expression in a broad sense, such freedom is not an absolute power and the Court must take into consideration public security as well as people's rights and freedom as well. Therefore, despite the fact that a person using insulting languages enjoys the freedom of speech and expression, such freedom is not unrestrained and the relevant behaviour must comply with the lawfulness and proportionality tests. This is why there are both positive and negative views on the issue. We nonetheless do have a very clear stance, and that is, all public officers enforcing the law should be respected by the community so as to enable them to smoothly discharge their duties.

MR LAM CHEUK-TING (in Cantonese): President, the Democratic Party opposes all uncivilized behaviour of insulting other people, but it also disagrees with the proposal to legislate for the "offence of insulting public officers enforcing the laws". President, I once worked as a law enforcement officer and had been insulted, but I do not think those people could insult me as they had only insulted themselves. I would like to ask the Secretary if he is worried about the coverage of the offence of insulting public officers being too wide. The reason is, be they civil servants, District Councillors, Members of the Legislative Council or even the Chief Executive, they are public officers, so will any member of the public be arrested for insulting LEUNG Chun-ying in the street in the future? In case the offence of insulting public officers is created, is it necessary to create a corresponding offence of insulting members of the public? Will this deepen social conflict?

SECRETARY FOR SECURITY (in Cantonese): Mr LAM, first of all, just as I have said in the main reply, one of the areas that we must look into is the coverage of the relevant legislation for it may be very wide or it can be pretty narrow. Given that the coverage of the legislation varies with different jurisdictions in the world, we must, among other things, study and look into this area.

Nowadays, all public officers are obliged to serve the public. If members of the public are not satisfied with their services, attitude or behavior, sufficient channels have been provided for them to lodge complaints. Once the complaint is substantiated, the Government may take internal disciplinary action against the offending public officer in accordance with the relevant civil service code. And LEGISLATIVE COUNCIL ― 22 March 2017 5189 yet, the issue under discussion is not the creation of a corresponding offence or whether the absence of a corresponding offence will create more conflicts. Notwithstanding that, I wish to add that the provision of clear rules would be helpful to everyone in the community because I learnt from previous court judgments that the majority of cases of scuffles began with verbal conflicts. Therefore, in terms of speech and expression, if both parties are aware of the scope of acceptance, the subsequent conflicts can be avoided.

PRESIDENT (in Cantonese): Mr LAM, has your supplementary question not been answered?

MR LAM CHEUK-TING (in Cantonese): The Secretary has not answered if he will consider legislating for a corresponding offence of insulting members of the public.

SECRETARY FOR SECURITY (in Cantonese): When we consider this matter, just as I said, we will listen to both positive and negative views. Therefore, in the course of our consideration, all related aspects will certainly be taken into account.

PRESIDENT (in Cantonese): Last oral question.

Support for street sleepers

6. DR LAU SIU-LAI (in Cantonese): President, on the night of the 5th of this month, a fire broke out under a flyover at Tung Chau Street in Sham Shui Po, which resulted in quite a number of street sleepers who had been staying there losing all their property and having nowhere to stay. These street sleepers called the emergency relief services hotline of the Home Affairs Department to seek assistance on that night, but no temporary accommodation was provided to them. Some concern groups have pointed out that since only a total of 630 places are currently provided by hostels which have accommodation for street sleepers, coupled with the fact that these hostels concurrently receive other needy people, hostel places are always in short supply. In addition, the lodgers of 5190 LEGISLATIVE COUNCIL ― 22 March 2017 such hostels are generally required to move out upon the expiry of a six-month residence time limit even if they have not secured long-term accommodation. This, together with the grossly inadequate drug addiction treatment services and mental health services, have made it difficult for street sleepers to extricate themselves from street sleeping. In this connection, will the Government inform this Council:

(1) of the number of fire outbreaks in the past five years at places where street sleepers congregated; the emergency relief services provided by the authorities to the street sleepers concerned; whether the authorities have any plan to step up such services; if so, of the details; if not, the reasons for that;

(2) whether it has any plan to substantially increase the number of hostels and hostel places designated for street sleepers and, at the same time, extend the residence time limit to two years or longer, so as to ensure that street sleepers have sufficient time to secure long-term accommodation and solve their personal problems before moving out of the hostels, thereby truly helping street sleepers to extricate themselves from street sleeping; if so, of the details; if not, the reasons for that; and

(3) of the manpower deployed by the Government and subvented organizations for providing street sleepers with drug addiction treatment services and outreach mental health services in each of the past five years, and the respective person-times of street sleepers receiving such services; whether the authorities have any plan to step up such services; if so, of the details; if not, the reasons for that?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, after consulting the Home Affairs Department ("HAD"), the Security Bureau and the Food and Health Bureau and consolidating the available information, my reply to Dr LAU Siu-lai's question is as follows:

(1) In the event of emergency or inclement weather, HAD plays a coordinating role to provide, in collaboration with other departments, emergency support services to the affected persons, including provision of hot meals, distribution of blankets and other relief LEGISLATIVE COUNCIL ― 22 March 2017 5191

materials, immediate grant of emergency fund to the families of the injured or deceased when necessary, as well as referring the needy persons for other social welfare services. These emergency support services are available to both street sleepers and general members of the public.

The Fire Services Department does not have the breakdown on the number of fires occurred at places where street sleepers congregated.

(2) The Social Welfare Department ("SWD") subvents six non-governmental organizations ("NGOs") to operate urban hostels for single persons and urban emergency shelters. With the increase of 20 places provided through reallocation of resources in 2016-2017, there are a total of 222 subvented places. Taking into account 408 places provided by NGOs on a self-financing basis at present, there are a total number of 630 subvented or self-financing places.

The maximum duration of stay at subvented places is normally six months. However, the responsible social workers may consider extending the stay having regard to the needs of individual cases, so as to facilitate the implementation of long-term accommodation plans. The duration of stay in self-financing hostels is determined by the operating agencies concerned.

In the past three financial years, the average utilization rate of subvented places was about 80%. SWD will duly review the duration of stay in hostels, and closely keep in view the supply and demand of the service.

In addition to making use of the above mentioned dedicated hostels for accommodating street sleepers, SWD and NGOs may also, on compassionate grounds, refer street sleepers for admission to the two self-financing singleton hostels under HAD, which altogether provide a total of 580 places.

(3) Hong Kong adopts a multi-modality approach in its drug treatment and rehabilitation services. Drug users, including street sleepers with drug addiction, may choose suitable service having regard to 5192 LEGISLATIVE COUNCIL ― 22 March 2017

individual needs and circumstances. At present, various drug treatment and rehabilitation services in general are able to meet service demand.

Since October 2010, SWD has set up 24 Integrated Community Centres for Mental Wellness ("ICCMWs") across the territory. These ICCMWs, operated by NGOs, provide one-stop, district-based community mental health support services, including outreaching services. Target service recipients include, among others, street sleepers. In 2017-2018, an additional recurrent funding of around $32 million will be allocated to further increase the number of social workers and supporting staff at ICCMWs.

The Hospital Authority ("HA") adopts an integrated and multi-disciplinary approach in the delivery of various health care services for persons with mental health problems, including street sleepers. In 2017-2018, an additional recurrent funding of $73 million will be allocated to HA for enhancing psychiatric services.

The Government does not keep breakdown figures on the manpower for the provision of drug rehabilitation services and outreaching mental health services for street sleepers nor on the number of street sleepers receiving such services.

DR LAU SIU-LAI (in Cantonese): President, as the Secretary has not answered the various questions I asked, my supplementary question may be a bit long. I would like to follow up on part (2) of the main question because the Government indicated in the main reply that a total number of 630 subvented or self-financing places have been provided. But in fact, only 95 places, and not 600-odd, are dedicated for accommodating street sleepers.

At present, according to the finding of a university study, there are a total of 1 614 homeless people in the community, which is already a conservative estimate. Clearly, 90-odd places are insufficient to meet the need. Moreover, a maximum stay of six months can hardly give street sleepers enough time to change their lifestyle. Just now, the Secretary said that the duration of stay would be determined by the operating agencies concerned. But the performance LEGISLATIVE COUNCIL ― 22 March 2017 5193 pledges of SWD and the relevant agencies already prescribe that not more than 60% of the residents should be allowed to stay in the hostels beyond the six-month period. The Secretary also indicated that street sleepers may, on compassionate grounds, be referred for admission to singleton hostels. Yet these hostels offer a very limited number of places, and there is a general requirement that the residents can only stay for three to six months. It is thus clear how difficult it would be for street sleepers to be placed in these hostels.

While there are nearly 2 000 homeless people in Hong Kong―which is just a conservative estimate―the authorities have only provided a very limited number of hostel places for them. This, together with a short duration of stay of six months, can hardly help street sleepers change their mode of living for they do not even have enough time to make some savings. In this regard, the Secretary has not answered my question about the reasons for limiting their stay to six months only. Even if such a restriction is valid, the authorities must at least increase the number of hostel places. But why has the number of hostel places dedicated for accommodating street sleepers not been increased all along?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, I would like to clarify that the 630 hostel places are mainly for accommodating street sleepers. Apart from these 630 places, 580 places are provided by singleton hostels under HAD. Those are the places not specifically used for the placement of street sleepers.

I would like to point out that at present, the duration of stay is generally set at six months because these emergency hostels are positioned as interim accommodation. If the long-term accommodation need of street sleepers is to be met, we can only rely on an increase in housing supply. On the question of whether the stay of individual residents should be extended, the operating agencies are allowed to handle the cases with flexibility. Depending on the actual need, the agencies concerned can extend the stay for 40% to 50% of the cases at most.

According to recent statistics, from April to October last year, only about 30% of the residents who have stayed in the hostels for more than six months need to extend their stay. Hence, the threshold has yet to be reached. Nonetheless, we are certainly willing to consider whether the operating agencies should be provided with even greater flexibility. But we must be mindful of the need to strike a right balance because such emergency accommodation is 5194 LEGISLATIVE COUNCIL ― 22 March 2017 invariably a temporary arrangement of an interim nature, and street sleepers' need for long-term accommodation can only be met through the supply of public rental housing. As a matter of fact, we have been keeping the situation in view. Over the past few years, the average occupancy rate of these hostels has been maintained at about 80%.

We are equally concerned about this matter as Dr LAU. If the occupancy rate is on the rise, we will definitely review the demand and seek additional resources to increase the provision of hostel places. As I said a moment ago, 20 additional places have been provided in 2016-2017.

MR SHIU KA-CHUN (in Cantonese): President, nine members of the Panel on Welfare Services conducted a visit to street sleepers from 8:00 pm on 6 February to 1:30 am the next day. Although the Government claims that it does not have a policy on street sleepers, we somehow sense that an unfriendly policy towards street sleepers is in place, and the aim is to harass them constantly. For instance, the authorities would conduct street cleansing operations four times a day and remove the belongings of street sleepers; lock up venues such as soccer pitches at night or install pebble paths to keep street sleepers out; sprinkle foul-smelling powder or itching powder to evict street sleepers. In this connection, a meeting was held by the Panel on Welfare Services on 13 February to discuss with the Government on support for street sleepers.

President, as you may know, both the Food and Environmental Hygiene Department and the Leisure and Cultural Services Department refused to send representatives to attend the said meeting. That is why we will hold a public hearing on 27 March on the issue of street sleepers. But even so, the Home Affairs Bureau will only send the District Officer (Sham Shui Po) to attend the meeting. Does the Government mean to indicate that street sleepers can be found only in Sham Shui Po, and not in other districts?

President, my questions are: When will the Government formulate a homeless-friendly policy? When will a census of street sleepers be conducted?

PRESIDENT (in Cantonese): Secretary, please reply.

(Mr SHIU Ka-chun stood up)

LEGISLATIVE COUNCIL ― 22 March 2017 5195

MR SHIU KA-CHUN (in Cantonese): I strongly urge …

PRESIDENT (in Cantonese): Mr SHIU, you have already asked your supplementary question. Please sit down. Secretary, please reply.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): I thank Mr SHIU for the supplementary question. We are equally concerned about the problem of street sleepers. I think Mr SHIU is also well aware that street sleeping is a very complex social problem and reflects problems in many other areas.

On the one hand, we must give street sleepers support and provide assistance to them individually according to their different needs. On the other hand, we must ensure proper district management as a whole, including environmental hygiene, law and order. We must strike a balance between these two aspects.

Regarding support for street sleepers, we must deal with their individual problems in a targeted manner. As we all know, street sleepers have different kinds of problems, such as the need to receive drug treatment services, mental health services, and so on as pointed out by me earlier. Some street sleepers may have housing or employment problems, while some become street sleepers out of their personal choice such as convenience of work, or they have family relationship problems. In this regard, SWD and the relevant NGOs will continue to provide assistance to street sleepers on a case-by-case basis. Meanwhile, we also have to ensure proper district management as a whole because street sleepers, being members of our society, should also pay heed to the concerns raised by other members of the community in various aspects including environmental hygiene.

From the information I obtained from the relevant departments, it is evident that they absolutely respect street sleepers. If cleansing operations are required for keeping the environment clean, and so on, the authorities will notify the street sleepers concerned or inform the relevant NGOs in advance as far as possible, so that suitable arrangements can be made. During the cleansing operations, the authorities will strive to minimize the disturbance created for street sleepers and give them space to store their belongings. I think it would be most important for all parties concerned to enhance communication and liaison, while HAD will continue to play its role to ensure good communication.

5196 LEGISLATIVE COUNCIL ― 22 March 2017

I have heard Mr SHIU's concerns. I think colleagues from other departments have also heard these views. I will relay the Member's concerns to them for follow up. While they are required to carry out district management duties, when it comes to actual operation, they should also handle the needs and situation of street sleepers with great care.

MR SHIU KA-CHUN (in Cantonese): President, I think you have also heard very well that the Secretary has not answered my questions, that is, when will the Government formulate a policy on street sleeping, and when will a census of street sleepers be conducted?

PRESIDENT (in Cantonese): Secretary, do you have anything to add?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Regarding the number of street sleepers, I believe Members may also know that the count of street sleepers will be updated through SWD and four NGOs on a monthly basis. For instance, if a street sleeper is found to be street sleeping for more than seven days, his case will be registered with the computerized registry. On the other hand, cases of street sleepers who have given up street sleeping will also be de-registered from the registry.

Separately, I note that some statistics have also been compiled by other organizations, including the so-called statistics on homeless people. The number indicated in such statistics is different from the statistics compiled by the Government because, as far as I understand, there are differences in the definition of "homeless people" and "street sleepers". In this connection, SWD is most willing to strengthen communication with the relevant parties and consider ways to ensure that more comprehensive and transparent statistics would be made available. We are most willing to step up work in this regard.

MR LEUNG YIU-CHUNG (in Cantonese): President, what the Secretary just said is true because the count of street sleepers indicated in non-government surveys more or less doubles that as shown in government statistics. The number of hostel places provided by the Government, counting both the 630 places under SWD and 500-odd places under HAD, is hardly enough to meet their needs.

LEGISLATIVE COUNCIL ― 22 March 2017 5197

Regarding the Secretary's remark about the occupancy rate of hostels being only 80% or so, I do not know if he understands why the occupancy rate is only 80%? Given the small area of hostels, the operating agencies have resorted to providing the service with bunk beds. But as many street sleepers are senior in age or suffer from illness, they cannot use the upper bunk beds and hence, they have not lived in the hostels. That is why these hostel places are left unoccupied.

The Secretary also mentioned that these hostels are meant to be interim accommodation. But I still want to ask the Secretary why a six-month residence time limit must be set for these interim accommodations. Although the Secretary just said that the duration of stay can be extended in exceptional cases, the operating agencies are generally reluctant to do so because there are still other people waiting for admission. Extending the stay of individual residents would affect those people on the waiting list. That is why the operating agencies are unwilling to extend the stay of particular residents unless under very exceptional circumstances. But if street sleepers can only stay in the hostels for six months, how can they save enough money to rent a new place or make alternative arrangements? It is simply not possible to do so.

I would like to ask the Secretary whether more hostel places can be provided, so that the six-month duration of stay can be extended to allow street sleepers a longer period of time to adapt to the environment and then look for a new home?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): I thank Mr LEUNG for the question. We would be most willing to look into the actual situation. As regards the optimal duration of stay, I think it would depend on the circumstances of individual cases. Given the positioning of these emergency hostels as interim accommodation, the principle is that we should strike a balance. If the duration of stay can be extended for a long time, or even to the extent of becoming long-term accommodation, it will deviate from the original intention and increase the waiting time of other people who have a need for emergency accommodation.

The fact is that the housing problem can only be tackled at root by increasing the overall supply of housing. Although we have set the duration of stay in these hostels at six months, the NGOs are given great flexibility as they can extend the duration of stay for almost half of the residents. We hope that a 5198 LEGISLATIVE COUNCIL ― 22 March 2017 balance can be struck between two respects. On the one hand, we should maintain the positioning of these hostels as interim accommodation, so that they will not become an alternative "long-term accommodation". On the other hand, the operating agencies are given sufficient flexibility to cater for the specific needs in individual cases.

In any case, we would be most willing to heed the views just expressed by Mr LEUNG. We will look into the actual situation and consider the areas which improvements can be made, such as the length of stay or the need for additional hostel places, and so on.

DR LAU SIU-LAI (in Cantonese): A moment ago, the Secretary clarified that the 630 places are provided for accommodating street sleepers, but this piece of information is incorrect. Although street sleepers can be admitted to these hostels, they are actually living together with other singletons. Hence, not all of these 600-odd places are allocated to street sleepers. This piece of information provided by the Secretary is incorrect.

I would like to follow up on part (1) of the main reply because no other Honourable colleagues have done so. According to the Secretary, emergency support services will be provided by the authorities. But as far as the fire on the night of the 5th of this month is concerned, I visited the scene on the 5th, the 6th and the 7th, and talked to the affected street sleepers, as well as the relevant NGOs. We had called the Shek Kip Mei Community Hall at Nam Cheong Street many times, but the authorities refused to open the facility. Also, no blankets, hot meals or other emergency relief services had been provided by HAD at all.

I would like to ask the Secretary: When will the principle he mentioned be put to work? What kind of emergency situations must street sleepers face before the relevant mechanism will be activated? Why did the Administration not provide these emergency support services to street sleepers affected by the fire on the night of the 5th of this month?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, according to the information I obtained from HAD, in the event of major emergencies such as the hoisting of typhoon signal No. 8 or landslides, or when LEGISLATIVE COUNCIL ― 22 March 2017 5199 emergency incidents happen such as outbreak of a No. 3 or higher alarm fire, emergency support services will be activated, including the opening of temporary shelters, the setting up of a help desk and emergency hotline, and so on.

Under the mechanism, the decisions as to whether and when the mechanism will be activated rest with the respective District Officers in accordance with actual needs. On the day of the fire, as far as I know, although the District Officer concerned did not activate the mechanism, arrangements were made for the two NGOs working with street sleepers in the district to contact the affected street sleepers. According to the information I obtained from HAD, no street sleeper indicated a need for immediate accommodation. Of course, apart from the two NGOs, other relevant service units (such as SWD's Integrated Services Teams for Street Sleepers) also visited the affected street sleepers in the morning and afternoon of the following day after the fire.

According to the information I obtained from the department, two affected street sleepers, being tenants of public rental housing ("PRH") units, have already returned to live in their respective PRH units. Separately, the authorities are following up on the cases of five street sleepers, including considering whether they are eligible for compassionate housing, or advising them to receive drug treatment services or mental health services. Follow-up actions have been taken for these cases.

If the Member needs further information on the specific details, I am aware that the District Officer (Sham Shui Po) will attend a joint meeting to be held by the Panel on Welfare Services and the Panel on Food Safety and Environmental Hygiene next Monday. The Member can seek further information on that occasion.

DR LAU SIU-LAI (in Cantonese): I must point out that the Secretary's information is incorrect. On the several days after the fire, the authorities had indeed not provided such services …

PRESIDENT (in Cantonese): Dr LAU, debate is not allowed during Question Time. Please sit down.

Oral questions end here.

5200 LEGISLATIVE COUNCIL ― 22 March 2017

WRITTEN ANSWERS TO QUESTIONS

Charges for searches on public sector information

7. MR CHARLES PETER MOK (in Chinese): President, currently, services provided by the Government through trading funds for search of (a) the Company Register and (b) the Land Register, as well as those provided by government departments for search of (c) the Business Register, (d) register of vehicles, (e) bankruptcy and compulsory winding-up records, (f) birth/death records and (g) marriage records, are subject to a charge. In this connection, will the Government inform this Council:

(1) of the following details of each of the aforesaid services in each of the financial years from 2011-2012 to 2015-2016:

(i) number of person-times using the services,

(ii) income (I),

(iii) percentage of income in the annual income of the respective government departments/trading funds,

(iv) expenditure,

(v) net income/profit (P)* after deduction of expenditure,

(vi) net income ratio/profit ratio (P/I)*, and

(vii) profits tax payable* and the relevant computation methods; and

* applicable to trading funds

(2) whether the Government will consider abolishing the aforesaid service charges to facilitate information flow and enhance the transparency of the business environment; if so, of the details (including the timetable); if not, the reasons for that?

LEGISLATIVE COUNCIL ― 22 March 2017 5201

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Chinese): President,

(1) From 2011-2012 to 2015-2016 financial years, details of provision of services for search of registers and records through trading funds and government departments are as follow:

Trading funds

(a) Search of the Company Register

Income Net Net Profits tax in income/profit income Number of Income payable and CRTF's after ratio/ Year search ($ million) Expenditure the relevant annual deduction of profit (in thousand) (I) computation income expenditure ratio method (%) (P) (P/I) 2011-2012 3 765 61.1 12.3 There is no N/A N/A N/A 2012-2013 4 079 67.1 12.2 separate 2013-2014 4 124 69.7 11.3 breakdown 2014-2015 4 323 73.4 13.0 for this 2015-2016 4 474 76.9 13.1 purpose

Note:

CRTF = Companies Registry Trading Fund

(b) Search of the Land Register

Income Net Net Profits tax in income/profit income Number of Income payable and LRTF's after ratio/ Year search ($ million) Expenditure the relevant annual deduction of profit (in thousand) (I) computation income expenditure ratio method (%) (P) (P/I) 2011-2012 5 182 81.6 17.9 There is no N/A N/A N/A 2012-2013 5 486 87.2 16.4 separate 2013-2014 4 671 74.9 16.3 breakdown 2014-2015 5 173 83.0 19.0 for this 2015-2016 5 047 80.7 19.3 purpose

Note:

LRTF = Land Registry Trading Fund

5202 LEGISLATIVE COUNCIL ― 22 March 2017

Government departments

(c) Search of the Business Register

Income in Number of Income IRD's annual Year search Expenditure ($ million) income (in thousand) (%) 2011-2012 363 7.9 0.003 There is no 2012-2013 379 8.2 0.003 separate 2013-2014 398 8.3 0.003 breakdown 2014-2015 419 8.8 0.003 for this 2015-2016 434 9.0 0.003 purpose

Note:

IRD = Inland Revenue Department

(d) Search of the register of vehicles

Number of Income in TD's Income Year search annual income Expenditure ($ million) (in thousand) (%) 2011-2012 34 1.5 0.01 There is no 2012-2013 33 1.5 0.01 separate 2013-2014 37 1.6 0.01 breakdown 2014-2015 33 1.5 0.01 for this 2015-2016 30 1.3 0.01 purpose

Note:

TD = Transport Department

(e) Search of bankruptcy and compulsory winding-up records

Income in Number of Income ORO's annual Year search Expenditure ($ million) income (in thousand) (%) 2011-2012 262 22.3 4.4 There is no 2012-2013 276 23.4 8.0 separate LEGISLATIVE COUNCIL ― 22 March 2017 5203

Income in Number of Income ORO's annual Year search Expenditure ($ million) income (in thousand) (%) 2013-2014 253 21.0 7.6 breakdown 2014-2015 293 23.4 6.1 for this 2015-2016 285 22.8 3.5 purpose

Note:

ORO = Official Receiver's Office

(f) Search of birth/death records

Income in Number of Income IMMD's annual Year search Expenditure ($ million) income (in thousand) (%) 2011-2012 14 2.2 0.4 There is no 2012-2013 16 2.5 0.5 separate 2013-2014 16 2.5 0.4 breakdown 2014-2015 17 2.6 0.5 for this 2015-2016 17 2.6 0.4 purpose

Note:

IMMD = Immigration Department

(g) Search of marriage records

Income in Number of Income IMMD's annual Year search Expenditure ($ million) income (in thousand) (%) 2011-2012 40 5.6 1.0 There is no 2012-2013 49 6.8 1.2 separate 2013-2014 48 6.7 1.1 breakdown 2014-2015 46 6.4 1.1 for this 2015-2016 49 6.8 1.2 purpose

5204 LEGISLATIVE COUNCIL ― 22 March 2017

(2) Government departments generally charge their services in accordance with the "user pays" principle to achieve full cost recovery for the services provided. This is an established and effective fee charging principle, under which taxpayers do not have to subsidize individual users of the services. As regards services of trading funds, the Government in establishing a trading fund has the financial objective that the government service shall fund itself from the income generated from the service, and hence fees of a trading fund are normally set to recover the full cost of the trading fund (including the cost of capital) on an overall basis. The operations and fees of trading funds should comply with the Trading Funds Ordinance (Cap. 430). The Government has no plan to change these fee charging principles in respect of services for search of registers and records.

Impact of radio base stations for mobile communications on public health

8. MR LAU KWOK-FAN (in Chinese): President, it has been reported recently by the media that telecommunications service operators have installed a large number of radio base stations for mobile communications ("base stations") on the rooftops of quite a number of residential buildings in Hong Kong, which has aroused concerns among quite a number of members of the public that the radiation emitted from base stations affects human health and even causes cancer. In this connection, will the Government inform this Council:

(1) given that the experimental environment of a number of large-scale studies conducted overseas on whether or not the radiation emitted from base stations affects human health is different from the actual environment of Hong Kong, whether the authorities have reviewed if the conclusions of these studies are entirely applicable to Hong Kong;

(2) whether the authorities or local academic institutions conducted large-scale tracking studies in the past five years on the subject mentioned in (1); if so, of the details; if not, whether the authorities will conduct the relevant studies;

LEGISLATIVE COUNCIL ― 22 March 2017 5205

(3) whether the authorities will consider selecting certain housing courts, in which the rooftops of buildings are installed with a large number of base stations, as the pilot sites with the Department of Health arranging for residents on the top floors of such buildings to receive physical check-ups, with a view to understanding, through the collection of local data, whether the radiation from base stations affects human health;

(4) as it has been reported that the radiation safety standards for base stations adopted on the Mainland are more stringent than those adopted in Hong Kong, whether the authorities will consider adopting the relevant standards; if so, of the details; if not, the reasons for that;

(5) whether it has plans to make public the data on the radioactivity levels in the vicinity of all the base stations in Hong Kong; if so, of the details; if not, the reasons for that; and

(6) of the number of complaints about radiation safety of base stations received by the Office of the Communications Authority between January 2012 and February 2017, and the follow-up actions taken?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Chinese): President, according to the professional advice from the Department of Health ("DH"), the radiofrequency ("RF") electromagnetic fields ("EMF") generated by mobile base stations ("base stations") are a type of non-ionizing radiation ("NIR") which differs greatly from ionizing radiation such as X-rays and nuclear radiation. Simply put, NIR has lower energy and is insufficient to change the chemical properties of substances. It cannot cause harm by breaking chemical bonds in the human body. In addition, the strength of RF EMF decreases rapidly with distance from the source.

The Communications Authority ("CA") has, according to the professional advice from DH, adopted the "Guidelines for Limiting Exposure to Time-varying Electric, Magnetic, and Electromagnetic Fields" ("the Guidelines") as the NIR safety standards. The Guidelines are developed by the International Commission on Non-Ionizing Radiation Protection ("ICNIRP") based on scientific literature and related health risk assessments, and recognized by the World Health Organization ("WHO"). 5206 LEGISLATIVE COUNCIL ― 22 March 2017

A consolidated reply of the Commerce and Economic Development Bureau and the Food and Health Bureau to the six parts of question is as follows:

(1) and (2)

Regarding the issue of whether RF EMF generated by base stations could affect human health, DH has been monitoring the information provided by international authorities.

In 2011, the International Agency for Research on Cancer under WHO assessed the studies relating to environmental exposures of RF EMF (including RF EMF emitted from base stations) and pointed out that the evidence of causing cancer from environmental exposures of RF EMF was inconclusive.

As for human exposure of NIR, ICNIRP has formulated the Guidelines, which has been endorsed by WHO, based on scientific literature and associated health risk assessments. WHO considered that at present, there is insufficient evidence to suggest that exposure to EMF (including RF EMF) below the exposure limits recommended in the Guidelines would cause any adverse health effects.

DH has been closely monitoring the information provided by WHO regarding the effects of RF EMF posed to human health. The Office of the Communications Authority ("OFCA") will also seek DH's professional medical advice on health effects of base stations from time to time.

(3) WHO considers that at present, there is insufficient evidence to suggest that exposure to EMF (including RF) below the exposure limits recommended in the Guidelines would cause any adverse health effects. CA has also, according to the professional advice from DH, adopted ICNIRP's limits as the safety standards for NIR. As such, the Government considers that there is no basis to arrange health checks for residents living in estates installed with base stations.

(4) The ICNIRP limits adopted by CA are recognized by WHO as the safety standard. The ICNIRP limits or similar requirements are widely adopted by other advanced countries such as the United LEGISLATIVE COUNCIL ― 22 March 2017 5207

States, Canada, Germany, France, Australia and New Zealand, and economies with dense population such as Singapore, Japan and Korea. CA has no plan to change its established practice of following the international standards.

(5) In vetting the applications, apart from examining the radiation level of individual base stations, OFCA will also conduct technical assessments of the total radiation level at the location of the base stations to ensure that the total radiation level complies with the radiation safety standards before granting approval for the applications. Operators are required to provide OFCA with measurement reports within one month from the commencement of operation of their base stations to demonstrate that the radiation levels comply with the safety standards.

Currently, there are a total of 47 000 base stations in Hong Kong. OFCA has not kept the measurement reports of individual base stations during the vetting process. If members of the public are concerned about the radiation safety near the base stations, they may contact OFCA to arrange on-site measurement of radiation level.

Over the past three years, in response to requests of Legislative Council Members, District Council members and members of the public, OFCA has conducted over 800 measurements of radiation level in residential premises throughout the territory, and has initiated random checks on more than 3 500 approved base stations. No case has been found to exceed the radiation safety standards. OFCA will continue to conduct on-site measurements of radiation level upon requests as well as random checks to ensure that the base stations comply with the safety standards.

(6) From January 2012 to February 2017, OFCA received about 600 enquiries and complaints in relation to radiation safety of base stations, with most of them involving concern about NIR safety at residential premises. When handling these cases, OFCA would explain to the enquirer or complainant concerned CA's requirements on radiation safety of base stations. On-site measurement would be arranged if necessary to allay their concerns about the NIR levels. The NIR levels measured in all of the above cases were below the ICNIRP limits.

5208 LEGISLATIVE COUNCIL ― 22 March 2017

Public toilets at tourist hotspots

9. MR YIU SI-WING (in Chinese): President, I have recently received complaints from members of the public that the facilities of the public toilets at some tourist hotspots are dilapidated and the toilets are in poor hygiene conditions. They consider that such situation will not only cause inconvenience to users but also give tourists a bad impression of Hong Kong, thereby tarnishing Hong Kong's image as an international tourist destination. Regarding the public toilets at tourist hotspots with high usage, will the Government inform this Council:

(1) of the criteria adopted by the authorities for determining whether a public toilet is located at a tourist hotspot with high usage, together with the location and number of such toilets; if the information is not available, of the reasons for that;

(2) whether the authorities have set higher standards for the hygiene conditions and level of services of such public toilets, including increasing the frequency of cleansing work, stepping up inspections, expeditiously repairing damaged facilities; if so, of the details; if not, the reasons for that; and

(3) whether the authorities have reviewed and improved the aesthetic appeal and facilities of such public toilets in the past three years; if so, of the details; if not, the reasons for that?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, the Food and Environmental Hygiene Department ("FEHD") manages 789 public toilets. There are also other public toilets in public venues (e.g. parks, country parks, etc.) within the respective purview of the Leisure and Cultural Services Department and the Agriculture, Fisheries and Conservation Department.

My reply in respect of FEHD's purview to the question raised by Mr YIU Si-wing is as follows:

(1) FEHD has not laid down criteria for defining whether certain public toilets are located within the areas of tourist hotspots. Nevertheless, a list of public toilets with high utilization rate near widely recognized tourist spots is attached at Annex for information. LEGISLATIVE COUNCIL ― 22 March 2017 5209

(2) The cleansing frequency of public toilets within the purview of FEHD depends on the public demand and usage of the toilets. Public toilets are thoroughly cleansed two to three times a day in general. Toilet attendants are deployed in frequently-used public toilets (irrespective of whether they are located near tourist spots) to ensure that the toilets are clean and hygienic with toilet paper and liquid soap replenished as well as damages of facilities reported for speedy repairs. In parallel, FEHD staff are deployed for daily inspection of the conditions of hygiene, cleanliness and facilities of public toilets. Upon noticing minor damages or consumable items such as light bulbs or florescent tubes in need of replacement, the cleansing contractor will carry out minor repairs or replacement within 24 hours. As for relatively more serious damages, FEHD staff will inform the Architectural Services Department ("ArchSD") for follow-up actions as appropriate.

(3) FEHD and ArchSD have set up a working group which holds frequent discussions on how to optimize FEHD's public toilets to ensure that the design of public toilet facilities could blend well with the surrounding environment and keep up with the times, with a view to making the public toilet facilities hygienic, clean, safe and decent. In planning new toilets and reprovisioning or refurbishing existing ones, FEHD will follow its established standards of provision. The working group will decide on the exterior design, installations and equipment, as well as materials having regard to the actual circumstances of individual toilets. For public toilets at tourist spots, FEHD will consider adopting thematic layouts, featured facades, multi-colour artistic designs and decorative lighting to make the toilets aesthetical and distinctive, providing good ventilation, making the best use of natural light in addition to artificial lighting, as well as utilizing advanced facilities such as infrared sensor-activated taps and flushing equipment. Subject to site conditions and other circumstantial factors, FEHD will consider providing more pedestal type water closets to meet the needs of tourists.

5210 LEGISLATIVE COUNCIL ― 22 March 2017

Annex

Public Toilets with High Utilization Rate at Hot Tourist Attractions

District Tourist Attraction Name of Public Toilet Central and Lions Point View Pavilion Peak Tower Public Toilet Western Wan Chai Golden Bauhinia Square Expo Drive East Public Toilet Stanley Municipal Services Building Public Toilet Southern Stanley Market Road Stanley Waterfront Public Toilet Ngong Ping Road Interchange Islands Ngong Ping Public Toilet Ngong Ping Road Public Toilet Hong Kong Museum of Art, Hong Kong Space Tsim Sha Tsui Ferry Museum, Hong Kong Concourse Public Toilet Yau Tsim Cultural Centre Hong Kong Science Science Museum Road Public Museum Toilet Pedestrian Street at Sai Sai Yee Street Garden Public Mong Kok Yeung Choi Street South Toilet Mong Kok Flower Market Sai Yee Street Public Toilet Sham Shui Po Apliu Street Apliu Street Public Toilet Sheung Yuen Street Public Wong Tai Sin Chi Lin Nunnery Toilet Lei Yue Mun (Ling Nam Sun Tsuen) Public Toilet Kwun Tong Lei Yue Mun Lei Yue Mun Ma Wan Public Toilet cum Bathhouse Lantau Link Viewing Platform Kwai Tsing Lantau Link Public Toilet Tai Po Lam Tsuen Wishing Trees Fong Ma Po Public Toilet Sai Kung Hoi Pong Street, Sai Kung Yi Chun Street Public Toilet Sai Kung Hoi Pong Square

LEGISLATIVE COUNCIL ― 22 March 2017 5211

Development of derelict open space sites

10. MR JAMES TO (in Chinese): President, the Government has advised in this year's Policy Address that it has decided to significantly increase the provision of sports facilities and will additionally build or rebuild 26 sports and recreational facilities ("SRF projects") in the coming five years. Among such projects, I have found that the consent of the Yau Tsim Mong District Council ("DC") was obtained in 2009 for the project on the open space site at Hoi Fan Road, Tai Kok Tsui (including one 7-a-side football pitch and two outdoor basketball courts), and the consent of the Community Building Committee under the said DC was obtained in 2010 for the project on the open space site at Hoi Fai Road, Tai Kok Tsui. However, the authorities have not yet submitted funding applications to the Finance Council ("FC") of this Council with regard to these two Tai Kok Tsui projects. In this connection, will the Government inform this Council:

(1) of the reasons why the authorities have not yet submitted funding applications to FC with regard to the two aforesaid Tai Kok Tsui projects;

(2) apart from the two Tai Kok Tsui projects, of the projects among the remaining 24 SRF projects in respect of which the authorities have submitted papers to the relevant DCs for discussion (set out by project name the name of the DC and the relevant meeting dates); whether the authorities have drawn up a priority list for funding applications for such projects; if so, of the details; if not, the reasons for that;

(3) apart from the aforesaid 26 SRF projects, of the current number of proposed SRF projects for which consent of the relevant DCs has been obtained (set out by project name the name of the DC, the relevant meeting dates and the reasons for not yet submitting the funding applications to FC); the measures that the authorities have in place to accelerate the planning progress of such projects;

(4) given that, according to the relevant standards under the Hong Kong Planning Standards and Guidelines, the Kwai Ching District with a current population of about 520 000 should be provided with district open space of a total area of 52.4 hectares, but the total area of the 5212 LEGISLATIVE COUNCIL ― 22 March 2017

district open space in the district is only 19 hectares at present, whether the authorities have plans to expeditiously open up, within the current term of the Government, the Kwai Chung Park, which has an area of 27 hectares and has been left derelict for 16 years, for use by residents; if so, of the details; if not, the reasons for that; and

(5) of the current open space sites in Hong Kong that have been left derelict for a long time (set out the locations and areas of such sites by DC district)?

SECRETARY FOR HOME AFFAIRS (in Chinese): President, my reply to the five parts of the question is as follows:

(1) and (2)

As announced in the 2017 Policy Address, the Government plans to launch 26 projects in the coming five years to develop new or improve existing sports and recreational facilities in different districts, and will conduct technical feasibility study for another 15 sports and recreation facility projects to prepare for their implementation.

Of the 26 projects for implementation in the coming five years, there are 20 open space projects (as set out at Annex) including the two projects at Hoi Fai Road and Hoi Fan Road. In line with prevailing practices, the Leisure and Cultural Services Department ("LCSD") consults the relevant District Councils during various key stages of planning the individual projects with a view to seeking Members' views on the scope of works and the design before finalizing the planning details and seeking funding in accordance with the established procedures for public works projects.

In planning the two projects at Hoi Fai Road and Hoi Fan Road, LCSD has been working closely with stakeholders notably the Yau Tsim Mong District Council ("YTMDC") and the Harbourfront Commission. For the Hoi Fai Road project, the Architectural Services Department ("ArchSD") has revised the design of the project in the light of the views of YTMDC and the Harbourfront LEGISLATIVE COUNCIL ― 22 March 2017 5213

Commission. As regards the Hoi Fan Road project, ArchSD has completed a technical feasibility study and will engage consultants for the design work. Upon completion of the design, LCSD will consult YTMDC. Subject to the progress of the design work and consultation, we will seek funding in accordance with the established procedures for public works projects.

Among the 26 projects in the Five-Year Plan, the Government plans to consult the relevant Panels of the Legislative Council and seek the funding approval of the Finance Committee in 2017-2018 for 5 projects including Avenue Park at Kai Tak, Waterfront Promenade adjacent to the Hong Kong Children's Hospital, Improvement of Hoi Bun Road Park and Adjacent Area, Kwun Tong, Open Space at Sze Mei Street, San Po Kong, and Sports Ground and Open Space in Area 16, Tuen Mun. The other projects will be submitted to the Legislative Council in subsequent years.

(3) In drawing up the Five-Year Plan for Sports and Recreation Facilities, the Government has taken into account the views and priorities of the District Councils, as well as other relevant considerations such as the current provision of sports and recreation facilities at the territory-wide and district levels, the Hong Kong Planning Standards and Guidelines ("HKPSG"), the policy objective of sports development, utilization rates of existing facilities, demographic changes, site availability and technical feasibility.

As regards other proposed new projects that have been discussed by District Councils, they are at different planning stages and most of them have not completed a technical feasibility study. Under the Five-Year Plan, we will conduct technical feasibility study for 15 sports and recreation facility projects to prepare for their implementation.

(4) With reference to HKPSG, a total of about 102 hectares of open space should be provided in Kwai Tsing District which has a population of 510 900 in 2017. Currently there are about 148 hectares of open space in Kwai Tsing District, which exceeds the recommended provision under HKPSG.

5214 LEGISLATIVE COUNCIL ― 22 March 2017

As regards the Kwai Chung Park, it is one of the 26 projects for implementation in the coming five years under the Five-Year Plan. LCSD has been working closely with stakeholders notably the Kwai Tsing District Council ("KwTDC") on the planning of the project. After receiving comments of KwTDC members on the proposed scope of facilities in February 2017, LCSD is now actively following up on the planning details.

(5) The open space sites where LCSD is responsible for development but works have yet to commence are listed at Annex. LCSD has not taken possession of any vacant open space sites from relevant bureaux/departments other than the site of 0.84 hectares earmarked for the open space project at Hoi Fai Road, which is temporarily used as a plant nursery.

Annex

20 Open space projects to be implemented in the coming five Years

District Project Name Kowloon City 1. Avenue Park at Kai Tak# 2. Hoi Sham Park Extension, To Kwa Wan 3. Station Square at Kai Tak 4. Waterfront Promenade adjacent to the Hong Kong Children's Hospital# Kwun Tong 5. Improvement of Hoi Bun Road Park and Adjacent Area, Kwun Tong# 6. Improvement of Lam Wah Street Playground and Adjacent Area, Kwun Tong Wong Tai Sin 7. Open Space at Sze Mei Street, San Po Kong# Yau Tsim Mong 8. Open Space at Hoi Fai Road, Tai Kok Tsui 9. Open Space at Hoi Fan Road, Tai Kok Tsui Yau Tsim Mong and 10. Open Space at Hung Hom Waterfront Kowloon City Kwai Tsing 11. Kwai Chung Park North 12. Open Space in Area 47 and 48, North District Sai Kung 13. Town Park in Area 66 and 68, Tseung Kwan O Tai Po 14. Open Space in Area 6, Tai Po LEGISLATIVE COUNCIL ― 22 March 2017 5215

District Project Name Tuen Mun 15. Open Space in Area 6, Tuen Mun 16. Open Space in Area 17, Tuen Mun 17. Open Space in Area 27, Tuen Mun 18. Sports Ground and Open Space in Area 16, Tuen Mun# Yuen Long 19. Redevelopment of Tung Tau Industrial Area Playground, Yuen Long 20. Swimming Pool Complex and Open Space in Area 107, Tin Shui Wai

Note:

# The Government is planning to consult the relevant Legislative Council panels and seek the funding approval of the Finance Committee for these projects or relevant pre-construction works in 2017-2018.

Air pollution in Hong Kong

11. DR YIU CHUNG-YIM (in Chinese): President, the Environmental Protection Department ("EPD") has indicated earlier that days with high-level air pollution (i.e. the days on which the Air Quality Health Index reaching 8 or above) were seen in 11 months of 2016. Also, over 80% of such days of high-level air pollution were caused by pollutants brought by tropical cyclones and from the Pearl River Delta Region. Some environmentalists have pointed out that such a remark indicates that the authorities have overlooked the responsibility to reduce the local sources of air pollution. In this connection, will the Government inform this Council:

(1) in respect of the concentrations of sulphur dioxide ("SO2") and ozone ("O3") in the air as recorded by the 16 air quality monitoring stations (both roadside and general ones) ("AQMSs") across the territory in 2015 and 2016, of (i) the respective annual numbers of days on which such figures exceeded the relevant target limits under the Air Quality Guidelines ("AQG") of the World Health Organization ("numbers of days of exceedance"), and (ii) the extent by which such figures exceeded the annual average concentration 3 3 target limits (i.e. SO2 being 5.1 μg/m and O3 being 23.5 μg/m ) as estimated by some academics on the basis of AQG's targets; if such data are unavailable, of the reasons for that;

5216 LEGISLATIVE COUNCIL ― 22 March 2017

(2) of the respective numbers of days of exceedance in each month of 2016 in respect of the following pollutants as recorded by various

AQMSs: (i) SO2, (ii) nitrogen dioxide ("NO2"), (iii) fine suspended particulates (i.e. PM2.5), (iv) respirable suspended particulates

(i.e. PM10) and (v) O3, and set out such figures in tables of the same format as Table 1; if such data are unavailable, of the reasons for that;

Table 1 Air pollutant: ______

Total no of days September November December February January October August March April June May July AQMS

Yuen Long General Tuen Mun … Mongkok Roadside …

(3) as a study has pointed out that the use of a "time-based apportionment method" to analyse each day in a year can identify the most likely pollution source or region that influences the air quality of Hong Kong on that day, whether the Government knows, based on that method of analysis, the following information on the air pollutants mentioned in (2), as recorded by various AQMSs in each month of 2016:

(a) the respective numbers of days of exceedance in respect of which the main source of air pollutants was "local" (i.e. "Local Vehicle/Power Plant" and "Local Vehicle/Marine") ("L") and Regional All ("R"), and set out such figures in tables of the same format as Table 2; if such data are unavailable, of the reasons for that;

LEGISLATIVE COUNCIL ― 22 March 2017 5217

Table 2 Air pollutant:______

Total no of days September November December February January October Source August March April June May July AQMS

L Yuen Long R General L Tuen Mun R … L Mongkok Roadside R …

(b) the respective numbers of days of exceedance in respect of which the main source of air pollutants was "Regional East" ("E") and "Regional West" ("W"), and set out such figures in tables of the same format as Table 3; if such data are unavailable, of the reasons for that;

Table 3 Air pollutant: ______

Total no of days September November December February January October Source August March April June May July AQMS

E Yuen Long W General E Tuen Mun W … E Mongkok Roadside W …

5218 LEGISLATIVE COUNCIL ― 22 March 2017

(c) the respective numbers of days of exceedance in respect of which the main source of air pollutants was "Local Vehicle/Power Plant" ("P") and "Local Vehicle/Marine" ("M"), and set out such figures in tables of the same format as Table 4; if such data are unavailable, of the reasons for that; and

Table 4 Air pollutant: ______

Total no of days September November December February January October Source August March April June May July AQMS

P Yuen Long M General P Tuen Mun M … P Mongkok Roadside M …

(4) how EPD currently integrates air pollutant concentration data with meteorological data (e.g. wind directions and wind speed) to identify the sources of air pollutants?

SECRETARY FOR THE ENVIRONMENT (in Chinese): President, to improve our air quality and protect public health, the Hong Kong Special Administrative Region ("SAR") Government is committed to reducing local emission of pollutants and working closely with the Guangdong Provincial Government to reduce the regional air pollution in the Pearl River Delta ("PRD"). In recent years, the SAR Government has undertaken enhancement measures with focus on the control of local pollution sources. The key measures include LEGISLATIVE COUNCIL ― 22 March 2017 5219 phasing out some 82 000 pre-Euro IV diesel commercial vehicles by the end of 2019; subsidizing franchised bus companies to retrofit their eligible Euro II and III buses with selective catalytic reduction devices; strengthening the vehicle emission control regime for petrol and liquefied petroleum gas vehicles; tightening the emissions from power plants; capping the sulphur content of locally supplied marine light diesel at 0.05%; and being the first Asian city to require ocean going vessels to switch to marine fuel with sulphur content not exceeding 0.5% while at berth.

These measures have yielded notable results. Over the past five years (i.e. 2012-2016), roadside concentrations of major air pollutants including respirable suspended particulates ("RSP" or "PM10"), fine suspended particulates

("FSP" or "PM2.5"), nitrogen dioxide ("NO2") and sulphur dioxide ("SO2") have decreased by 28%, 28%, 31% and 30% respectively. For the same period, ambient concentrations of RSP, FSP, NO2 and SO2 have dropped by 21%, 21%,

8% and 18% respectively, while the O3 level in general air which is affected by regional air pollution has shown a decline of 3%.

However, we shall not overlook the impact of weather and regional pollution on local air quality as there are occasional episodes of high-level air pollution (i.e. the Air Quality Health Index reaching 8 or above) in Hong Kong. According to the analysis of the Environmental Protection Department ("EPD"), over 80% of days of high-level air pollution in 2016, for instance, were caused by pollutants brought by tropical cyclones or from the PRD Region. Whenever Hong Kong is under the influence of subsiding air of tropical cyclones, the weather within the PRD Region is mainly sunny and calm, which is conducive to the accumulation of O3 and FSP (PM2.5) within the region. If tropical cyclones approach Hong Kong from the east, wind direction will change to westerly or north-westerly and this will bring the polluted air in the PRD Region to Hong Kong, leading to deterioration in our air quality.

To effectively solve the problem of regional air pollution caused by O3 and suspended particulates, the Hong Kong SAR Government and the Guangdong Provincial Government set in November 2012 the emission reduction targets and ranges for 2015 and 2020 respectively regarding nitrogen oxides, volatile organic compound, SO2 and RSP respectively. Both sides are now conducting a 5220 LEGISLATIVE COUNCIL ― 22 March 2017 mid-term review to assess the attainment of the emission reduction targets for 2015 and to finalize the emission reduction targets for 2020. The review will be completed in the first half of this year.

Our replies to the questions are as follows:

(1) and (2)

The Air Quality Guidelines ("AQG") of the World Health Organization ("WHO") has recommended that countries in setting their air quality standards should strike a balance between the needs of public health and local circumstances, and take into account practical circumstances, such as health risk due to air pollution, latest technological developments, as well as economic, political and social considerations. Recognizing that its AQG levels are very stringent, WHO has also recommended interim targets ("ITs") so that countries may progressively improve their air quality with a view to achieving the AQG levels in the long run. As far as we know, no country has fully adopted the AQG levels as its air quality standards.

The current Air Quality Objectives ("AQO") of Hong Kong have been drawn up in light of the afore-mentioned WHO recommendations and the practices of environmentally advanced countries. Half of our AQO limits have adopted the WHO AQG

levels, with the rest (including O3 (8-hour) and SO2 (24-hour)) pitching at the WHO ITs. The standards of major air pollutants as stipulated in AQO of Hong Kong and the WHO AQG are set out in Table 1.

Certain scholars have once derived the mathematical relationship

between the short-term and annual air quality limits of SO2 and O3 by way of statistical analysis(1). However, AQO have to be set on the basis of relevant health risks. In this connection, WHO considers that there is still insufficient health data to support the

setting of annual average concentration limits for SO2 and O3.

(1) HK Lai, A.J. Hedley, Thuan-Quoc Thach, CM Wong, A method to derive the relationship between the annual and short-term air quality limits―Analysis using the WHO Air Quality Guidelines for health protection. Environment International 2013; 59:86-91. LEGISLATIVE COUNCIL ― 22 March 2017 5221

WHO will review the concentration limits of pollutants in AQG from time to time and we will keep such reviews in view, taking them as references for our AQO.

In 2015 and 2016, the number of exceedances for SO2 (24-hour) and

O3 (8-hour) according to WHO AQG are tabulated in Tables 2 to 5.

The concentration of SO2 (10-minute) complied with the WHO AQG. For other major air pollutants, the number of exceedances of the WHO AQG in each month of 2016 are tabulated in Tables 6 to 8.

Implementation of effective emission reduction measures remains the key to improvement of air quality, regardless of whether our AQO limits are set at the WHO AQG or IT levels. The SAR Government will continue to explore and formulate new practicable measures to further improve the air quality of Hong Kong.

(3) EPD adopts various scientific methods, including total emission method, source apportionment and time-based apportionment, to measure and analyse emission of pollutants. As Hong Kong is small in area, it is easy for pollutants emitted from various air pollution sources to mix up. Moreover, pollutants will undergo different chemical reactions under varied meteorological conditions. Therefore, the adoption of time-based apportionment cannot accurately identify the sources of pollutants, while the analysis of different pollutants may produce different results. We do not have the requested information.

In addition, EPD compiles the Hong Kong Air Pollutants Emission Inventory every year to understand and keep abreast of the changes in emission of pollutants from various pollution sources. EPD will also consider the air quality trends when formulating relevant emission reduction measures.

(4) EPD currently makes use of the real time monitoring and model forecast meteorological data provided by the Hong Kong Observatory for daily air quality assessment and forecast.

5222 LEGISLATIVE COUNCIL ― 22 March 2017

Annex

Table 1: Standards of Major Air Pollutants as stipulated in the Air Quality Objectives ("AQO") of Hong Kong ("HK") and the Air Quality Guidelines ("AQG") of the World Health Organization ("WHO")

WHO AQG Interim Interim Interim HK AQO Target Target Target AQG (IT-1) (IT-2) (IT-2) Number of Exceedances Concentration Limit Concentration Limit Concentration Limit Concentration Limit Concentration Limit Averaging Number of Pollutant (μg/cu (μg/cu (μg/cu (μg/cu (μg/cu

Time Allowed Exceedances Allowed

m) m) m) m) m)

Not Sulphur 10-minute 500 3 - 500 Specified Dioxide Not (SO2) 24-hour 125 3 125 50 20 Specified Not Ozone (O3) 8-hour 160 9 160 100 Specified Respirable Not 24-hour 100 9 150 100 75 50 Suspended Specified Particulates 1-year 50 - 70 50 30 20 - (PM10) Fine Not 24-hour 75 9 75 50 37.5 25 Suspended Specified Particulates 1-year 35 - 35 25 15 10 - (PM2.5) Not Carbon 1-hour 30 000 0 - 30 000 Specified Monoxide Not (CO) 8-hour 10 000 0 - 10 000 Specified Nitrogen Not 1-hour 200 18 - 200 Dioxide Specified

(NO2) 1-year 40 - - 40 - Lead (Pb) 1-year 0.5 - - 0.5 -

LEGISLATIVE COUNCIL ― 22 March 2017 5223

Table 2: Number of Exceedances for SO2 in 2015 according to the WHO AQG (24-hour concentration limit: 20 μg/cu m)

Roadside General AQMSs AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Eastern Sha Tin Central Po Tai

(2)

(1)

January 3 1 1 2 6 6 - 0 9 3 0 1 0 1 1 1 February 3 2 2 3 6 7 - 0 4 4 0 1 0 1 2 3 March 0 0 0 1 5 5 - 0 2 0 0 0 0 0 0 0 April 5 0 0 4 18 10 - 0 0 0 0 0 0 1 0 1 May 2 0 0 3 22 10 - 0 0 0 0 0 0 0 0 0 June 2 0 0 2 24 6 - 0 0 0 0 0 0 0 0 0 July 2 0 0 2 5 0 - 0 0 0 0 0 0 1 0 1 August 0 0 1 4 14 0 - 0 2 0 0 0 0 2 2 2 September 0 0 0 0 7 0 - 0 0 0 0 0 0 0 0 0 October 1 0 0 1 1 0 - 0 1 0 0 0 0 0 0 0 November 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 December 3 0 0 0 0 0 - 0 0 0 0 0 - 0 0 0 Annual Total 21 3 4 22 108 44 - 0 18 7 0 2 0 6 5 8

Table 3: Number of Exceedances for O3 in 2015 according to the WHO AQG (8-hour concentration limit: 100 μg/cu m)

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Eastern Sha Tin Central Po Tai

(2)

(1)

January 0 0 12 1 0 0 - 1 1 3 12 16 27 0 0 0 February 0 0 10 0 3 1 - 2 1 8 10 12 16 0 0 0 March 1 1 4 1 1 1 - 1 1 1 7 6 12 0 1 0 5224 LEGISLATIVE COUNCIL ― 22 March 2017

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Eastern Sha Tin Central Po Tai

(2)

(1)

April 10 7 8 5 2 3 - 7 7 10 12 11 14 0 1 0 May 1 0 2 1 0 0 - 1 1 1 1 3 9 0 0 0 June 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 July 6 5 2 5 4 6 - 7 7 5 6 6 7 0 0 1 August 7 8 6 8 6 8 - 8 8 8 9 9 13 0 0 0 September 9 9 10 7 6 5 - 7 11 12 11 13 18 0 2 0 October 11 9 7 10 6 10 - 14 13 13 14 15 25 0 1 0 November 5 1 2 1 1 2 - 3 3 5 6 12 22 0 0 0 December 0 0 0 0 0 0 - 0 0 0 0 1 - 0 0 0 Annual Total 50 40 63 39 29 36 - 51 53 66 88 104 163 0 5 1

Table 4: Number of Exceedances for SO2 in 2016 according to the WHO AQG (24-hour concentration limit: 20 μg/cu m)

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Eastern Sha Tin Central Tai Po

(2)

(1)

January 0 0 0 0 0 1 - 0 0 0 0 0 - 0 0 0 February 1 0 0 0 1 0 - 0 0 0 0 0 0 0 0 0 March 3 1 1 2 4 2 0 0 3 0 0 0 0 2 2 2 April 1 0 0 2 9 3 0 0 0 0 0 0 0 0 1 1 May 0 0 0 0 5 3 0 0 0 0 0 0 0 0 0 0 June 0 0 0 0 4 0 0 0 0 0 0 0 0 1 2 0 July 0 0 1 2 11 1 0 0 0 0 0 0 0 1 0 1 August 1 0 0 4 4 2 0 0 0 0 0 0 0 1 0 0 LEGISLATIVE COUNCIL ― 22 March 2017 5225

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Eastern Sha Tin Central Tai Po

(2)

(1)

September 1 0 0 0 2 0 0 0 6 1 0 0 0 0 0 0 October 0 0 0 0 0 0 0 0 14 1 0 0 0 0 0 0 November 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 December 2 0 0 2 2 0 0 0 0 0 0 0 0 1 2 0 Annual Total 9 1 2 12 42 12 0 0 23 2 0 0 0 6 7 4

Table 5: Number of Exceedances for O3 in 2016 according to the WHO AQG (8-hour concentration limit: 100 μg/cu m)

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Sha Tin Eastern Central Po Tai

(2)

(1)

January 1 0 0 0 0 0 - 0 0 0 1 1 - 0 0 0 February 0 0 1 0 0 0 - 0 0 0 3 5 0 0 0 0 March 5 2 7 3 5 4 7 2 3 6 8 7 13 0 1 0 April 4 4 4 1 4 2 8 3 2 3 4 4 10 1 1 1 May 6 13 7 2 3 5 14 6 8 10 9 11 15 0 3 0 June 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 July 4 3 2 2 2 2 5 5 3 5 5 3 7 0 1 0 August 3 4 2 1 1 1 7 10 4 3 8 3 11 0 0 0 September 11 7 6 5 2 6 15 11 10 12 13 13 17 0 1 0 October 3 1 2 0 0 1 10 6 2 6 7 6 10 0 0 0 November 3 2 3 0 0 0 14 1 2 2 6 8 15 0 0 0 December 2 3 3 0 0 1 21 4 2 0 6 12 27 0 0 0 Annual Total 42 39 37 14 17 22 101 48 36 47 70 73 125 1 7 1

5226 LEGISLATIVE COUNCIL ― 22 March 2017

Table 6: Number of Exceedances for NO2 in 2016 according to the WHO AQG (1-hour concentration limit: 200 μg/cu m)

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Eastern Sha Tin Central Po Tai

(2)

(1)

January 0 0 0 0 0 0 - 0 0 0 0 0 - 8 0 0 February 0 0 0 0 0 0 - 0 0 0 0 0 0 9 0 0 March 0 0 0 0 0 0 0 0 0 0 0 0 0 3 2 0 April 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 May 0 0 1 0 0 0 0 0 0 0 0 0 0 8 5 7 June 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 July 0 0 13 1 1 1 0 0 0 0 0 0 0 19 7 12 August 0 0 2 2 0 0 0 0 0 0 0 0 0 17 6 7 September 0 0 1 0 0 0 0 0 0 0 0 0 0 40 23 3 October 0 0 1 1 0 0 0 0 0 0 0 0 0 13 7 3 November 0 0 0 0 0 0 0 0 0 0 0 0 0 3 4 0 December 0 0 0 0 6 7 0 1 4 0 0 0 0 14 25 4 Annual Total 0 0 18 4 8 8 0 1 4 0 0 0 0 136 79 36

Table 7: Number of Exceedances for PM10 in 2016 according to the WHO AQG (24-hour AQO = concentration limit: 50 μg/cu m)

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Sha Tin Eastern Central Po Tai Shui Po Shui

(2)

(1)

January 3 4 11 5 2 4 - 8 11 6 3 3 - 11 5 7 February 6 7 13 8 5 6 - 10 13 8 5 5 0 13 7 7 March 7 9 14 10 6 7 3 9 13 4 5 5 4 11 4 10 LEGISLATIVE COUNCIL ― 22 March 2017 5227

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Sha Tin Eastern Central Po Tai Shui Po Shui

(2)

(1)

April 5 4 5 4 2 2 4 3 6 2 3 2 2 10 4 5 May 0 0 0 1 1 1 0 0 1 0 1 1 0 6 1 1 June 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 July 2 1 2 2 2 2 1 2 4 1 2 2 1 3 2 2 August 0 0 2 2 1 2 0 3 4 0 1 0 0 6 1 1 September 4 4 4 4 4 4 3 6 11 4 4 3 5 11 5 5 October 0 0 0 0 0 0 0 3 8 3 0 0 0 2 0 0 November 4 4 3 3 2 2 1 11 12 8 3 1 5 14 2 6 December 15 9 21 11 11 9 7 24 25 24 13 8 13 25 13 16 Annual Total 46 42 75 50 36 39 19 79 108 60 40 30 30 112 44 60

Table 8: Number of Exceedances for PM2.5 in 2016 according to the WHO AQG (24-hour concentration limit: 25 μg/cu m)

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Eastern Sha Tin Central Po Tai

(2)

(1)

January 9 10 13 11 9 10 - 15 23 9 10 9 - 22 12 20 February 15 9 17 15 11 14 - 20 24 14 13 12 0 23 14 20 March 23 13 17 24 14 15 8 24 22 9 13 16 10 23 16 26 April 9 8 7 11 9 11 6 5 8 4 7 7 5 23 8 16 May 5 5 5 6 2 1 4 2 9 2 4 2 4 24 2 10 June 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 5228 LEGISLATIVE COUNCIL ― 22 March 2017

Roadside General AQMS AQMS Tseung Kwan O Central/Western Causeway Bay Sham Shui Po Shui Sham Kwai Chung Chung Tung Tong Kwun Tsuen Wan Tap Mun Long Yuen Mong Kok Tuen Mun Eastern Sha Tin Central Po Tai

(2)

(1)

July 3 3 4 3 3 3 2 3 4 3 3 3 3 4 3 4 August 4 6 8 6 9 6 3 7 7 3 4 3 6 19 3 9 September 7 9 8 9 9 9 5 10 13 9 8 7 6 19 5 12 October 2 2 3 6 3 1 0 9 16 5 3 0 7 18 1 12 November 13 13 10 12 13 10 8 14 18 17 13 5 10 21 6 15 December 25 12 23 23 24 19 19 23 29 27 25 19 22 30 22 27 Annual Total 115 90 115 126 106 99 55 132 173 102 103 83 73 227 92 171

Notes:

(1) Tseung Kwan O AQMS commenced operation on 16 March 2016.

(2) Tap Mun AQMS suspended operation for re-roofing and renovation works of the building where it was located from 30 November 2015 to 25 February 2016. Data were not available during the said period.

Arrangements for the vehicles of the Chinese People's Liberation Army Hong Kong Garrison crossing the boundary

12. MR DENNIS KWOK (in Chinese): President, under the existing requirement, any person driving a vehicle across the boundary via various road-based land crossings must first obtain a Closed Road Permit ("Permit") issued in respect of that vehicle by the Transport Department. In addition, subsection (1)(a) of section 4 of the Immigration Ordinance (Cap. 115) stipulates that an immigration officer or an immigration assistant ("IO/IA") may examine any person entering or departing from Hong Kong, and a person who is so examined may be required by an IO/IA to submit to further examination; subsection (2) stipulates that any person who satisfies an IO/IA that he is a serviceman (i.e. a serving member of the Chinese People's Liberation Army who is not being locally engaged under section 2(1)) shall not be examined further LEGISLATIVE COUNCIL ― 22 March 2017 5229 under subsection (1)(a) on his arrival in or prior to his departure from Hong Kong. Regarding the arrangements for the vehicles of the Chinese People's Liberation Army Hong Kong Garrison ("the Garrison") crossing the boundary, will the Government inform this Council:

(1) whether the aforesaid requirement for the Permit is applicable to vehicles of the Garrison crossing the boundary; and

(2) whether IOs/IAs currently check the identity of the persons carried on board the vehicles of the Garrison when such vehicles cross the boundary; if not, of the reasons for that; if so, the relevant procedure, and whether IOs/IAs will take actions in respect of those persons on board such vehicles who are not servicemen; if so, of the legislation or rules based on which they will do so; if not, the reasons for that?

SECRETARY FOR SECURITY (in Chinese): President, a consolidated reply of the Administration to various parts of the question is as follows:

The People's Liberation Army Hong Kong Garrison (hereinafter referred as "the Hong Kong Garrison") has been performing defence functions and responsibilities in Hong Kong in strict accordance with the Basic Law and the Law of the People's Republic of China on the Garrisoning of the Hong Kong Special Administrative Region (hereinafter referred as "the Garrison Law"). According to Article 7 of the Garrison Law, no weapon and equipment, and no material of the Hong Kong Garrison, and no member or vehicle of the Garrison that bears a certificate or a document of certification issued by the Hong Kong Garrison showing that the bearer is on official duty, shall be inspected, searched, seized or detained by any law-enforcing officer of the Hong Kong Special Administrative Region. The Hong Kong Garrison and its members shall also enjoy other rights and immunities prescribed by the laws in force in the Hong Kong Special Administrative Region.

According to Regulation 3 of the Road Traffic (Registration and Licensing of Vehicles) Regulations (Cap. 374E), the provision related to closed road permit as set out in the Regulation does not apply to vehicles used by the Hong Kong Garrison.

5230 LEGISLATIVE COUNCIL ― 22 March 2017

According to sections 4(1) and 5 of the Immigration Ordinance, (Cap. 115), officers from the Immigration Department may examine any person on his arrival or landing in or prior to his departure from Hong Kong, and/or may require that person to furnish other documents and information as may be required for this purpose. Section 4(2) of the Immigration Ordinance stipulates that a person who satisfies an immigration officer or immigration assistant that he is a serviceman shall not be examined further under subsection (1)(a) on his arrival in or prior to his departure from Hong Kong. Officers from the Immigration Department handle the immigration matters for servicemen in accordance with the Immigration Ordinance.

Making public the reports of the investigations conducted by the Research Grants Council

13. MR IP KIN-YUEN (in Chinese): President, the Research Grants Council ("RGC") under the University Grants Committee is charged with the functions, among others, of distributing grants to tertiary institutions to provide funds for academics to conduct academic researches. The Disciplinary Committee of RGC conducted earlier on an investigation into an allegation that a chair professor of the Department of Chemistry of the University of Hong Kong had misconducted herself in a research project. The investigation was concluded in December last year. However, RGC refused to disclose the investigation outcomes. Separately, RGC indicated in its reply to the Public Accounts Committee of this Council that alleged misconduct cases involving RGC grants received by RGC were handled on a confidential basis, and the relevant investigation reports would not be made public. In this connection, will the Government inform this Council:

(1) whether it knows the number of complaints received in the past five years about suspected misconduct in research projects and the number of such complaints into which investigation was conducted, by the Disciplinary Committee of RGC; among the cases investigated, the number of those which were found substantiated, as well as the nature of such cases and the penalties imposed on the persons who had misconducted themselves;

LEGISLATIVE COUNCIL ― 22 March 2017 5231

(2) whether it knows the specific justifications of RGC for not making public the reports or outcomes of such investigations; and

(3) given that the distribution of grants by RGC involves the issue of whether public funds are properly used, and that such investigations involve procedural justice and attract wide public concern, whether the authorities will request RGC to make public the relevant investigation reports and outcomes, so as to allay public concern and manifest its accountability to the public?

SECRETARY FOR EDUCATION (in Chinese): President, the Research Grants Council ("RGC") is an independent non-statutory body which operates under the aegis of the University Grants Committee ("UGC"). It is responsible for funding academic research projects, and for advising the Government, through the UGC, on the needs of Hong Kong's higher education institutions in academic research.

RGC attaches great importance to research integrity. Researchers are expected to observe the highest standard of integrity in the conduct of their research projects. Any research improprieties found in RGC-funded projects will be dealt with fairly and seriously by RGC.

The Disciplinary Committee ("DC") was formed under RGC in December 2013 and later re-established as three DCs, namely DC (Investigation), DC (Penalty) and DC (Appeal). DC (Investigation) oversees the conduct of investigations of cases arising from allegations; DC (Penalty) determines the level of penalty for substantiated cases; and DC (Appeal) handles appeal cases if they arise. All the alleged misconduct cases involving RGC-funded projects received by RGC will be referred to DCs for investigation. Since December 2013, DCs have considered a total of 49 alleged misconduct cases. As at 1 March 2017, DCs completed investigation of all 49 alleged misconduct cases, and among them 25 cases were found substantiated and penalties were imposed as appropriate. The nature of these 25 cases and the penalties imposed are provided at Annex.

To ensure that all the investigation is carried out impartially and fairly, DC (Investigation) appoints an independent Investigation Working Group ("IWG") for each alleged misconduct case. Each IWG normally comprises three 5232 LEGISLATIVE COUNCIL ― 22 March 2017 members sitting on RGC or panels/committees set up under RGC who are experts in the subject area and familiar with RGC assessment procedures, and have no conflict of interest with the researcher(s) under investigation. IWG will impartially examine the written representations of the respondent and related parties, the research proposals and the institutional investigation report (if available), which usually includes expert evidence, interview records and other relevant documents. IWG will carefully consider the evidence before coming to a view. After considering the findings and views of IWG, DC (Investigation) will make its recommendations to RGC for decision.

Cases found substantiated by RGC will be forwarded to DC (Penalty) for consideration on the level of penalty. DC (Penalty) will take into consideration a number of factors pertinent to the case, including the nature and gravity of the impropriety, level of penalty of precedent cases and any other mitigating factors, etc. and make a recommendation to RGC on the penalty level.

Each DC comprises five members, of which three do not sit on RGC or any of its panels/committees, and two are either non-local or lay members of RGC. At present, all DC members are overseas academics to ensure impartiality. According to the RGC guidelines, if any RGC/DC member has perceived conflict of interests with the researchers being investigated, the RGC/DC member concerned should be excused from the relevant meeting and should not participate in the discussion. The rigorous investigation procedures have ensured the fairness and impartiality of each investigation, as well as the proper use of the public funds involved.

In line with the practice of UGC-funded universities in handling research misconduct cases, all alleged misconduct cases are handled by RGC on a confidential basis and the investigation reports are not published. That said, RGC agrees that there is a need to enhance public accountability and transparency of RGC's handling of such cases. In January 2017, the Secretariat uploaded the related guidelines and procedures on the RGC's website. Looking ahead, RGC will be consulted at its meeting in June 2017 on how to further enhance public accountability and transparency, with reference to the practices of international research funding bodies. For example, RGC will consider publishing statistics on RGC's handling of alleged misconduct cases; and publishing summaries of LEGISLATIVE COUNCIL ― 22 March 2017 5233

RGC's decisions on all substantiated misconduct cases (with the names of individuals involved redacted if necessary).

Furthermore, the ongoing Review of RGC will holistically examine the existing procedures for handling alleged misconduct cases. In particular, the Review will consider how to enhance public accountability and transparency, having regard to prevailing practice in the higher education sector.

Annex

Substantiated misconduct cases handled by the Disciplinary Committees of the Research Grants Council since December 2013

Number of Number of Nature researchers Penalty (Number of researchers) cases involved Non-disclosure 8 10 - Disqualified in the related funding of exercise (3) similar/related - Disqualified and debarred from all projects in the RGC research funding schemes for application one year (4) form(1) - Disqualified and debarred from all RGC research funding schemes for two years (1) - Disqualified and debarred from all RGC research funding schemes for five years (2) Non-disclosure 14 25 - Disqualified in the related funding of relationship exercise (15) with - Disqualified and debarred from all nominated RGC research funding schemes for reviewers(2) one year (7) - Disqualified and debarred from all RGC research funding schemes for two years (3) 5234 LEGISLATIVE COUNCIL ― 22 March 2017

Number of Number of Nature researchers Penalty (Number of researchers) cases involved Plagiarism 3 3 - Disqualified and debarred from all RGC research funding schemes for two years (1) - Disqualified and debarred from all RGC research funding schemes for three years (1) - Disqualified and debarred from all RGC research funding schemes for five years (1) Total 25 38

Notes:

(1) Non-disclosure of similar/related projects in the application form refers to the cases where the researchers fail to provide information on their completed/ongoing projects or proposals pending funding approval, etc. in the application form.

(2) Non-disclosure of relationship with nominated reviewers refers to the cases where the researchers fail to provide in the application form whether the reviewers nominated by the researchers are currently employed/was employed in the same institution; have pre-reviewed the application; or has co-authorship of paper/publications, etc. within a certain period of time.

Domestic violence

14. DR HELENA WONG (in Chinese): President, some concern groups on domestic violence have relayed to me that quite a number of women who had fallen victims to domestic violence reported their cases to the Police, but the police officers who arrived at the scene persuaded the victims to drop their cases against the perpetrators on various pretexts (including that instituting prosecution against the perpetrator might affect their children and the employment of both parties, that the incident could be resolved after both parties exercising forbearance or after the perpetrator had calmed down, and that it was unlikely that the perpetrator would be convicted). Moreover, some police officers classified domestic violence cases only as "noise nuisance" cases and did not provide, in accordance with the relevant guidelines, the victims with information on related support services. In this connection, will the Government inform this Council:

LEGISLATIVE COUNCIL ― 22 March 2017 5235

(1) as the Police have classified domestic conflict cases into three categories, namely (i) Domestic Violence (Crime), (ii) Domestic Violence (Miscellaneous) and (iii) Domestic Incidents (including disputes), of the criteria currently adopted by the Police for classifying such cases; whether the Police have regularly reviewed such classification and criteria; if so, of the date of the last review; if not, the reasons for that; given the situation as relayed by the aforesaid concern groups, whether the Police will expeditiously conduct a review, and what measures are in place to ensure that police officers fully understand such criteria and classify cases accordingly;

(2) in each of the past three years, of (i) the respective numbers of domestic violence cases under the three aforesaid categories which were handled by the Police, (ii) the respective numbers of cases in which the perpetrators were prosecuted and convicted, as well as (iii) the number of cases which were classified as family dispute cases; the heaviest penalty imposed on those convicted perpetrators, and the details of the follow-up actions taken by the Police and by relevant organizations on such family dispute cases;

(3) given that the Social Welfare Department offers three educational programmes to support perpetrators of domestic violence, namely (i) the Anti-Violence Programme, (ii) the Batterer Intervention Programme and (iii) the Educational Programme on Stopping Domestic Violence, of the attendance for each programme in each of the past three years; as the aforesaid concern groups have pointed out that some perpetrators who had completed such programmes battered their spouses again, whether the authorities have reviewed and enhanced the contents of such programmes; if so, of the details; if not, the reasons for that;

(4) as cases of domestic violence in the forms of psychological abuse and sexual abuse (including marital rape) will not cause apparent injuries to the victims, which may be easily overlooked by police officers, how the Police identify and follow up on such types of cases at present; whether relevant training has been provided regularly for police officers; if so, of the details; if not, the reasons for that; and

5236 LEGISLATIVE COUNCIL ― 22 March 2017

(5) in respect of those victims and their children who have been persistently stalked by the perpetrators even after they have reported their cases to the Police, of the current measures put in place by the Police to protect such victims and their children from being stalked, and the details of such measures?

SECRETARY FOR SECURITY (in Chinese): President, the Police attach great importance to the problem of domestic violence. Through an inter-departmental and multi-disciplinary approach, the Police handle domestic violence cases with joint efforts, with a view to achieving the dual objectives of protecting the personal safety of the victims and their families as well as bringing the offenders to justice.

After consultation with the Labour and Welfare Bureau and the Social Welfare Department ("SWD"), I set out below my consolidated reply to the question raised by Dr Helena WONG:

(1) "Domestic violence" refers to any criminal or miscellaneous case involving violence or a breach of the peace that occurs between persons generally regarded as having marital or intimate partner relationships. These relationships refer to married, separated or divorced couples, cohabitants or former cohabitants (irrespective of gender), and lovers or former lovers (irrespective of gender) having a continuing relationship. The Police classify "Domestic Conflict Reports" into "Domestic Violence (Crime)", "Domestic Violence (Miscellaneous)" and "Domestic Incidents" based on their degree of seriousness:

(i) "Domestic Violence (Crime)" cases refer to criminal cases involving violence that occur between persons with the above relationships, including murder, manslaughter, wounding, serious assault, rape, indecent assault, criminal intimidation, criminal damage and possession of offensive weapons, etc.;

(ii) "Domestic Violence (Miscellaneous)" cases refer to cases involving common assault and a breach of the peace that occur between persons with the above relationships; and

LEGISLATIVE COUNCIL ― 22 March 2017 5237

(iii) "Domestic Incidents" refer to any family-related incidents not involving violence or a breach of the peace that occur between persons with the above relationships, such as disputes, nuisance, annoyance or conflicts, etc.

The Police have formulated a set of policies and procedures for effective handling of domestic violence cases, with a view to reducing domestic violence and strengthening protection for victims. The Police also have clear professional guidelines for the classification and handling of such cases. Irrespective of the classification of a case, police officers will handle and investigate it professionally with sympathy and understanding, as well as in a professional, fair and impartial manner. Timely referral will also be made as appropriate.

To ensure early identification of problematic families and appropriate classification and handling of cases, all frontline police officers have received relevant professional training. Upon receipt of a Domestic Conflict Report, the Police will deploy an officer of the rank of Sergeant or above to the scene of the family conflict to oversee the case in person, so as to ensure that it is properly handled.

(2) The respective numbers of cases under the three aforesaid categories and cases of "Domestic Incidents" involving "Disputes" handled by the Police in the past three years are set out in Annex 1; information on the prosecution, conviction and sentence of "Domestic Violence (Crime)" cases in the past three years is set out in Annex 2.

The Central Domestic Violence Database ("CDVD") is an electronic database of information on past domestic violence or domestic incidents. It features an alert system by which the management of the police districts concerned will be alerted of high-risk cases for closer surveillance. In handling family conflict cases, frontline officers will check against CDVD as well as the Emergency Referral Questionnaire and the Action Checklist specially designed for such purpose, so as to identify risk factors and make risk assessment in respect of the likelihood of continuance and recurrence of domestic violence.

5238 LEGISLATIVE COUNCIL ― 22 March 2017

The Police will, in light of the assessment results, take appropriate follow-up actions, including detaining the offender if appropriate and providing safe accommodation, counselling and other support services for victims and their family members in collaboration with SWD or other agencies. The Police will also provide a Family Support Service Information Card to the subjects to facilitate their further contacts with the service agencies for assistance.

For any report classified as a domestic violence case where referral to the relevant department for follow-up is deemed necessary (e.g. if the subject has a record of domestic violence or abuse of alcohol or drugs), the Police will take the initiative to arrange referral whether the subject is consenting.

(3) Batterers participating in the Anti-Violence Programme ("AVP") have to be mandated by the court to attend the programme in accordance with the Domestic and Cohabitation Relationships Violence Ordinance. On the other hand, participation in the Batterer Intervention Programme ("BIP") and the Educational Programme on Stopping Domestic Violence ("EPSDV") is voluntary.

The numbers of participants of the aforementioned three programmes in the past three years are set out in Annex 3.

SWD completed the evaluation study on the Pilot Project of BIP (the "Pilot Project") for male batterers in 2008. According to the findings, the Pilot Project, coupled with the casework counselling services provided by social workers, was effective in helping the batterers stop their violent acts towards their partners and improve their relationships. SWD is now conducting an evaluation study on BIP for women. For AVP and EPSDV, social workers in charge of the programmes will conduct evaluation for every participant upon completion of the programmes.

SWD will provide necessary services to the batterers and their family members, including those involved in recurrence cases after the batterer has completed BIP. The responsible social worker of SWD or non-governmental organizations will serve as the case manager of a domestic violence case to provide counselling and other support for the whole family, including the batterer, the victim and other affected family members. LEGISLATIVE COUNCIL ― 22 March 2017 5239

(4) As pointed out in part (1) above, the Police, through ongoing trainings, are always committed to enhancing the professional sensitivity, investigation skills and relevant legal knowledge of frontline officers in handling domestic violence cases. Training courses on skills of handling domestic violence cases, opposite sex/same-sex intimate partner relationships, psychology of victims and skills of handling conflicts have already been incorporated into the Police's Basic Training Course, Sergeants Promotion Course, Criminal Investigation Course, and Development Training Course. Training materials on the handling of domestic violence incidents are updated from time to time. With a view to further enhancing the professional sensitivity of frontline officers in handling victims of domestic violence, the Police have also produced relevant training videos and uploaded them to the Police's intranet for officers' information.

(5) The Police adopt the "One-family-one-team" system to consolidate investigations on reports involving the same family on domestic violence; if the suspect and victim(s) are recently involved in a previous report of similar nature, the investigation team handling the first report will take over such case for investigation, so as to facilitate decision making with better understanding of the whole situation. The Police will provide victims with the contact information of the investigation unit in charge of the case so that they can inform the unit of their latest situation.

A designated Domestic Violence Investigation Unit is set up in each police district to investigate serious domestic violence cases. The Crime Investigation Teams deal with "Domestic Violence (Miscellaneous)" cases with a "High Threat". The Police put in place a "Victim Management" protocol for victims of "Domestic Violence (Crime)" and high-threat "Domestic Violence (Miscellaneous)" cases, so as to follow up timely the situation of the victims and their families, and to strengthen the support and safety assurance to victims throughout the case enquiry and legal proceedings. In addition, the Police will make risk assessments as mentioned in part (2) above, and in light of the assessments results, arrange timely referrals and provide appropriate support.

5240 LEGISLATIVE COUNCIL ― 22 March 2017

Annex 1

The number of "Domestic Conflict Reports" handled by the Hong Kong Police Force in 2014-2016

2014 2015 2016 Domestic Violence (Crime) 1 669 1 464 1 509 Domestic Violence (Miscellaneous) 623 548 495 Domestic Incidents 11 510 11 733 11 306 Total 13 802 13 745 13 310

The number of "Domestic Incidents" involving "Disputes" in 2014-2016

2014 2015 2016 10 774 10 788 11 082

Annex 2

The number of Prosecutions and Sentences relating to "Domestic Violence (Crime)" cases in 2014-2016

2014 2015 2016 Total number of Prosecutions 524 467 446 Total number of Convictions 163 192 186 Immediate Custodial Sentence 40 44 36 Probation Order 25 28 24 Community Service Order 10 17 18 Suspended Jail Sentence 55 68 70 Bound Over/Conditional Discharge 0 0 1 OthersNote 33 35 37

Note:

Including training centre, detention centre, addiction treatment centre, hospital order, fine, etc.

LEGISLATIVE COUNCIL ― 22 March 2017 5241

Annex 3

The number of participants of "AVP", "BIP" and "EPSDV" in the past three years

2016-2017 2014-2015 2015-2016 (as at December 2016) AVP 0 0 0Note BIP 68 62 43 EPSDV 147 179 127

Note:

One referral was returned to the court as the batterer refused to join AVP.

Non-Civil Service Contract staff of the Buildings Department

15. MR KWOK WAI-KEUNG (in Chinese): President, earlier on, some staff union representatives have relayed to me that 33 staff members employed by the Buildings Department ("BD") on Non-Civil Service Contract ("NCSC") terms to fill the posts of Building Safety Officer and Building Safety Assistant had their contracts renewed in recent months only for a period of one year, and that they are required to leave office upon the expiry of their contracts. In this connection, will the Government inform this Council:

(1) of the number of NCSC staff of BD and the relevant total expenditure on salary in each of the past three years;

(2) of the amount of backlog of work (including taking law enforcement actions against unauthorized building works, issuing building repair orders and handling water seepage complaints) of BD in each of the past three years as a result of insufficient manpower, as well as the target amount of the relevant work to be dealt with each year;

(3) of the number of NCSC staff of BD applying for the civil service posts in BD each year since 2009 and, among them, the number of those who were offered appointment;

5242 LEGISLATIVE COUNCIL ― 22 March 2017

(4) of the major scopes of work of the aforesaid two ranks, and their respective total expenditures on salary in each of the past three years; the reasons for the authorities to reduce the number of the aforesaid posts; and

(5) whether the authorities will provide support for the aforesaid staff members, including (i) assisting them in being appointed as civil servants, and (ii) creating related civil service posts to absorb those staff members; if posts will be created, of the respective titles, numbers and responsibilities of such posts?

SECRETARY FOR DEVELOPMENT (in Chinese): President, in accordance with the current mechanism, government departments may appoint staff members on Non-Civil Service Contract ("NCSC") terms on a need basis for handling specific time-limited tasks. Departments would consider various factors when appointing NCSC staff, including their operational needs; the current resources and quotas available to them; and the performance of the NCSC staff concerned.

It is the Government's established policy to select the most suitable candidates for civil service vacancies through an open, fair and competitive recruitment process. As the entry requirements and selection process for NCSC positions may differ from those of civil service positions, there is no mechanism in the Government to directly fill civil service posts by NCSC staff. NCSC staff is required to apply for civil service posts through an open application process.

In consultation with the Buildings Department ("BD"), the Development Bureau provides a consolidated reply as follows:

(1) In the three recent financial years, the number of NCSC staff in the BD and the corresponding total staff cost (including salaries, gratuity and Mandatory Provident Fund ("MPF") contribution) are tabulated below:

All NCSC staff (Including Building Safety Officer ("BSOs") and Building Safety Assistant ("BSAs")) Expenditure Number of Staff ($'000) 265 2014-2015 90,283 (As at 31 March 2015) LEGISLATIVE COUNCIL ― 22 March 2017 5243

All NCSC staff (Including Building Safety Officer ("BSOs") and Building Safety Assistant ("BSAs")) Expenditure Number of Staff ($'000) 241 2015-2016 73,097 (As at 31 March 2016) 63,774 173 2016-2017 (Estimate) (As at 28 February 2017)

(2) The figures in relation to removal orders, repair/investigation orders, buildings repaired and the reported cases of water seepage handled by the Joint Office ("JO") set up by BD and the Food and Environmental Hygiene Department over the past three years are tabulated below:

Figures/Year 2014 2015 2016 Target 6 000 17 000 12 000 Removal orders issued (a) Actual 11 816 12 918 12 901 Removal orders complied with 12 380 13 662 14 438 Target 500 550 500 Repair/investigation orders issued (b) Actual 540 589 969 Repair/investigation orders complied with 647 798 834 Target 650 700 700 (c) Buildings repaired Actual 849 947 1 017 (d) The reported cases of water seepage 22 056 25 093 29 148 handled by the JO

(3) BD does not compile statistics on the number of BD NCSC staff who have applied for civil service posts in the department. In March 2009, there were in total 176 BSOs and 181 BSAs in BD, and all of them were appointed on NCSC term. Among them, 69 BSOs and 86 BSAs had been employed as civil servants in BD as at 13 March 2017.

(4) At present, there are a total of 25 BSOs and 8 BSAs in BD, all of them are appointed on NCSC terms. They are mainly deployed to the JO to assist in the investigation of water seepage reports, and to the Existing Buildings Divisions of BD to assist in the follow-up actions in relation to Operation Building Bright ("OBB").

5244 LEGISLATIVE COUNCIL ― 22 March 2017

In the three recent financial years, the total salary expenditures for BSOs and BSAs employed on NCSC terms (including salaries, gratuity and MPF) are tabulated below:

2016-2017 2014-2015 2015-2016 (Estimate) ($'000) ($'000) ($'000) BSOs 17,908 13,939 11,146 BSAs 4,680 2,594 2,236 Total Expenditures 22,588 16,533 13,382

BD strives to convert NCSC posts with long term operational needs to civil service posts. In the three recent financial years, BD created 96 professional civil service posts and 193 technical civil service posts. Among them, 70 professional civil service posts and 157 technical civil service posts involved the conversion of NCSC posts to civil service posts.

As the operation of the JO has been made permanent since April 2014, BD has converted all the NCSC posts under BD in JO to civil service posts in phases. Besides, OBB has been substantially completed in September 2016. Hence, since October 2016, BD would renew the contracts of BSOs and BSAs for one year only, so as to allow sufficient time for them to make appropriate arrangements. Moreover, if they wish to terminate their contracts before expiry, BD would handle such requests flexibly and consider granting gratuity on pro rata basis based on the length of their service.

(5) BD will create 23 professional civil service posts and 25 technical civil service posts in 2017-2018 mainly for enhancing enforcement actions for existing buildings. BD will abide by the principles of openness, fairness and competitiveness in the recruitment process for these posts, with a view to employing the most suitable candidates for such vacancies.

LEGISLATIVE COUNCIL ― 22 March 2017 5245

BD organizes training courses, experience sharing sessions and seminars for all professional, technical and NCSC staff (including BSOs and BSAs) to enhance their professional and technical knowledge. When BD receives applications by NCSC staff for civil service positions, it will take into account, inter alia, their years of service and experience in the department in the recruitment process subject to relevant guidelines promulgated by the Civil Service Bureau being met.

Measures to enhance passenger safety and handle public transport incidents

16. DR CHIANG LAI-WAN (in Chinese): President, in the evening of the 10th of last month, an incident of suspected arson occurred in the compartment of an MTR train travelling from Admiralty Station to Tsim Sha Tsui Station, resulting in more than 10 injuries. Some members of the public are worried about not knowing how to respond in the event of a similar incident or terrorist attack while travelling on public transport, and whether they, as passengers, are provided with adequate insurance protection. In this connection, will the Government inform this Council:

(1) whether it will request the MTR Corporation Limited ("MTRCL") to expeditiously enhance the security of various railway stations and trains (including conducting security screening on passengers, deploying additional manpower for patrols and installing closed-circuit televisions in all train compartments), upgrade the fire-fighting equipment and first-aid apparatus in railway stations and step up passenger publicity on the locations of, and how to use, fire-fighting equipment; if so, of the details; if not, the reasons for that;

(2) whether it has assessed the risks of arsons and terrorist attacks in various modes of public transport and related facilities (particularly automated people movers or stations with fewer staff on duty) since the aforesaid incident; whether it will improve the relevant contingency plans, educate members of the public on how to respond in the event of such kind of incidents and enhance the dissemination 5246 LEGISLATIVE COUNCIL ― 22 March 2017

of real-time information on emergencies to passengers through various types of channels, so that members of the public will not be caught unprepared in the event of such incidents; and

(3) whether it knows if the various public transport operators have taken out insurance for their passengers to cover the expenses of long-term treatment and rehabilitation services incurred in the event of their sustaining injuries in an arson or terrorist attack on public transport; if the operators have, of the details; if not, the reasons for that?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, on the night of 10 February 2017, a passenger was alleged to have started a fire on a Tsuen Wan Line train running from Admiralty Station to Tsim Sha Tsui ("TST") station. A total of 19 passengers were injured or felt unwell.

The train captain, having received the alert of the emergency button pulled by passengers at 7:11 pm and felt smoke, made a report to the Operation Control Centre ("OCC") right away. The staff of OCC instantly requested the staff of TST station to make preparation at the platform and inform the Police and the Fire Services Department ("FSD"). The MTR Corporation Limited ("MTRCL") disseminated the information in no time after the occurrence of the incident. Within five minutes after the train concerned arrived at the TST station at 7:14 pm, the MTR staff evacuated more than 1 000 passengers on the train and the platform, called for ambulance assistance for injured passengers and put out the fire together with the passengers. The Police and FSD personnel arrived at the scene within two minutes and four minutes respectively after the train arrived at the platform. At that time, the situation at the scene had basically stabilized. Within a brief several minutes, the MTR staff, Police and rescue personnel arrived at the scene to provide emergency services and put things under control, meeting the design and requirements of contingency plans.

Railway is the backbone of the public transport network of Hong Kong. Over 5 million passenger trips are made on MTR every day. Railway safety should be of prime importance. Although unexpected incidents or improper behaviour of individual person is difficult to prevent, there are adequate facilities and emergency arrangements in the MTR system to handle various types of incidents.

LEGISLATIVE COUNCIL ― 22 March 2017 5247

My reply to the various parts of Dr CHIANG Lai-wan's question is as follows:

(1) In considering any risk management measures, there is a need to strike a proper balance among reducing risks and the efficiency of railway system, smooth operation and passenger convenience. MTR is a mass carrier system with a daily patronage of over 5 million passenger trips and immensely packed during peak periods. Whether security screening is feasible and desirable requires careful deliberation. In view of the seriousness of the incident, MTRCL has set up a high-level committee (with participation of expert consultants) to conduct a full investigation and review of the incident. The areas to be covered include safety equipment and response procedures of the station and train car, whether the staff have effectively carried out the established procedures, the timeliness and effectiveness of service recovery, whether information was disseminated to passengers properly, as well as further improvement measures. MTRCL will submit a report to the Electrical and Mechanical Services Department ("EMSD") upon the completion of the investigation. EMSD, in conjunction with other departments such as FSD and the Police, will examine the report and follow up on the implementation of improvement measures proposed by MTRCL. The report will be made public.

After the incident, the Railway District, Yau Tsim District, Kowloon West Emergency Unit, Police Tactical Unit, and the Counter Terrorism Response Unit swiftly arrived at scene to handle the situation. In order to enhance public safety and order, and also reassure the public, other than the Railway District and the Counter Terrorism Response Unit, the five land regional Emergency Units and the Police Tactical Unit have already stepped up patrol in the MTR stations. MTRCL will also deploy additional staff to maintain order.

Closed circuit televisions ("CCTVs") were installed within MTR stations and on new trains bought after 2004 to monitor passenger flow and handle requests for assistance from passengers. MTRCL awarded a contract in July 2015 to purchase 93 trains to fully replace some trains currently running on urban lines. According to the 5248 LEGISLATIVE COUNCIL ― 22 March 2017

latest information provided by MTRCL, with the 93 new trains mentioned above and the new trains for the Shatin to Central Link being put into service, the proportion of trains equipped with CCTV systems will progressively increase from the current 35% to 85%.

As regards fire service equipment, all MTR train compartments are constructed with fire retardant materials and equipped with safety devices including fire extinguishers, ventilation windows, emergency telecommunication system with train captains, public announcement system and emergency exits. There are also fire service installations and equipment(1) inside stations including platforms. Moreover, adequate ventilation and fume extraction facilities and emergency lighting systems are provided in tunnels.

MTRCL has provided clear instructions regarding various safety equipment on trains, including emergency call handles or call buttons, emergency door releases, ventilation windows, emergency exits and fire extinguishers. MTRCL has also compiled a "Travel safely every day in the MTR" booklet. Passengers can ask for a copy from station staff or download it from MTR website. In the face of this incident, MTRCL will strengthen its publicity work.

(2) The Hong Kong Police Force attach great importance to public safety and have been actively taking follow-up actions and conducting assessments in respect of the risks of serious crimes or terrorist attacks to major public transport systems, including MTR. At present, there is no specific intelligence suggesting that Hong Kong is a potential target of terrorist attack, and the threat of terrorist attacks for Hong Kong remains at a "moderate" level. Apart from maintaining close cooperation and liaison with public transport system operators to strengthen the security and response capability of their systems, the Police have also been raising awareness of public safety through community engagement.

The Police also put a lot of emphasis into communicating with public transport system operators and the general public so as to enhance preparedness. The Critical Infrastructure Security

(1) For example, fire alarms, fire hydrants and fire hose reels. LEGISLATIVE COUNCIL ― 22 March 2017 5249

Co-ordination Centre, among others, holds seminars and offers security advice to major public transport system operators to enhance their alertness and response capability to dangerous incidents; while the Railway District educates students and the elderly about passenger safety knowledge and boosts their anti-crime awareness through various community activities such as the "Little Smart Cop", "Senior Smart Cop" and "RAILWATCH". Participants are encouraged to relay the relevant messages to their families and friends with a view to reducing crimes and incidents on railway premises.

Moreover, MTRCL has all along put in place operational and safety manuals, covering the contingency arrangements for various incidents (including fire and flooding). MTRCL would consult government departments in formulation of these manuals. These manuals are applicable to all railway lines. All MTR staff should be conversant with these safety manuals and contingency procedures. In the unfortunate event of an incident, the MTR staff will activate the relevant contingency procedures in the manuals depending on the nature and severity of the incident. The train captain and station staff will maintain close communication with OCC while the staff of OCC will coordinate response actions. Where warranted, train service will be adjusted and additional staff deployed to affected stations to assist passengers. MTRCL will inform the relevant government departments as soon as possible, including EMSD and the Transport Department. If railway services are disrupted, MTRCL will handle properly in accordance with established contingency plan (see Annex). For the alleged arson incident in question, the MTR staff have acted in accordance with safety manuals and contingency procedures.

MTRCL has been making use of various channels, such as broadcasts at stations and in trains, passenger information display panels, MTR website and smartphone application "Traffic News", as well as proactively liaising with the media to disseminate train service information, including the occurrence of any unexpected incidents. In the event of major safety incidents, the Government will also disseminate information to the public through the media.

5250 LEGISLATIVE COUNCIL ― 22 March 2017

(3) To protect the interests of both MTRCL and passengers, the Corporation has taken out third party public liability insurance. It offers adequate insurance coverage for MTRCL against liability for any injury or property loss of any third party arising from the negligence of MTR staff in the course of daily management and operation. Those injured in the suspected arson incident who want to claim compensation may file such a claim with MTRCL in writing. The Corporation will then refer the claim to its insurer for follow-up. All claims will be considered on individual merits and handled appropriately upon completion of investigation by all parties and confirmation of liabilities.

Same as MTRCL, all operators of other public transport services (including franchised buses, public light buses, taxis, trams, franchised and licensed ferries, and non-franchised buses) have complied with statutory requirements by taking out third party liability insurance pursuant to the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272) or Merchant Shipping (Local Vessels) (Amount of Insurance Cover) Notice (Cap. 548, sub. leg. K). Passengers may also consider taking out appropriate insurance policies on their own initiative, where necessary. As we understand, the operators do not take out additional insurance other than that statutorily required. As the public transport services in Hong Kong are operated by commercial organizations based on commercial principles, whether or not to take out additional insurance should be a matter for individual operator to consider and decide.

Annex

MTRCL's contingency plans for railway service disruptions

Purpose

MTRCL has drawn up contingency plans for various service disruption situations specific to the needs of individual stations. They are made available to the staff assigned to contingency duties. For information that is of use to passengers, it is made available to them in stations and in the Internet. This note gives an account of MTRCL's contingency plans for railway service disruptions. LEGISLATIVE COUNCIL ― 22 March 2017 5251

Handling of railway service disruptions

2. When a serious incident happens and is expected to lead to a prolonged suspension of railway services for 20 minutes or more, MTRCL will issue a "Red Alert" message to inform government departments including the Transport Department ("TD"), other public transport operators and media organizations of the incident. Upon notification by MTRCL, other public transport operators will provide appropriate supportive services as best as they can under the coordination of TD. On its part, MTRCL will suitably adjust its railway service to minimize impact and arrange free MTR shuttle buses to carry passengers from the affected stations to convenient locations, such as the nearest MTR station with railway service still in operation.

Alert System

3. "Red Alert" is defined as a signal which denotes that serious railway service disruption will continue or is expected to continue for 20 minutes or more, and emergency transport support services from other public transport operators are required. Upon being alerted, public transport operators will urgently mobilize their resources to provide appropriate supporting services as quickly as possible.

4. Prior to the issuance of a Red Alert message, MTRCL may issue an "Amber Alert" message. "Amber Alert" is defined as an early warning in respect of an incident which may lead to a serious disruption of service. After receiving this Alert, other public transport operators will alert their emergency unit, get prepared for possible emergency actions which may be demanded for at short notice and keep close contact with MTRCL.

5. MTRCL is also required to notify TD within eight minutes on any service disruption incident which has lasted for eight minutes or is expected to last for eight minutes or more. Train service disruption incidents refer to those incidents that lead to a suspension or delay of service at a railway station or a Light Rail stop, or on a section of a railway line.

6. Besides, according to the Mass Transit Railway Regulations (Cap. 556A), MTRCL shall report to EMSD any incident that occurs at any part of the entire railway premises and which has a direct bearing on the safe operation of the railway.

5252 LEGISLATIVE COUNCIL ― 22 March 2017

Dissemination of information during incident

7. Regarding dissemination of information to passengers, MTRCL has formulated measures to ensure effective communication with passengers during service disruption, with a view to assisting them to make appropriate alternative travel arrangements. These measures include:

(a) broadcasting details of the service situation at stations and in trains;

(b) providing information of alternative public transport service such as franchised bus routes, bus stop locations and free MTR shuttle bus boarding/alighting points on large information displays installed at stations;

(c) displaying signs from concourse ceilings and at street level to mark routes to free MTR shuttle bus boarding/alighting points when free shuttle bus service is ready;

(d) during service disruption, using LCD screens installed at visible locations near station entry gates of to provide train service information and other important notices;

(e) posting railway service disruption message and information on free MTR shuttle bus services on the MTR website and MTR Mobile App "Traffic News";

(f) displaying alternative public transport information on maps in the concourse of affected stations; and

(g) distributing "Rail Service Suspension―Passenger Guide" to passengers.

Operation of train and free MTR shuttle bus during serious railway service disruptions

8. In the event of serious service disruption, MTRCL will endeavour to minimize the area being affected and provide train service to the farthest extent by:

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(a) reversing trains at designated track sections to maintain train service in unaffected sections;

(b) diverting trains through supplementary track sections to bypass the affected section;

(c) diverting trains across lines through designated track sections to reduce the impact of service disruption; and

(d) diverting trains through spare track sections to reduce the impact of service disruption (for example, when the cross-harbour section of Tseung Kwan O Line is suspended, depending on which section is affected, cross-harbour train service can be maintained via the Service Connection Tunnel of Kwun Tong Line to provide linkage between Lam Tin Station and Quarry Bay Station).

9. MTRCL has formulated free shuttle bus deployment plans for railway incidents and agreements have been entered into with bus operators for the provision of such services during railway incidents to take affected passengers to the nearest MTR station still under normal operation to continue their journeys.

Operation of free MTR shuttle buses

10. Free MTR shuttle bus service is a supplementary measure to assist passengers to travel to convenient locations. Given the limited carrying capacity of shuttle buses, it is not intended to be a substitute for normal train service. It brings passengers to the nearest station outside the affected section of a railway line where service is disrupted, to enable them to continue with their journeys. Shuttle buses would also stop at stations in the affected section to provide services to passengers.

Activation of free MTR shuttle bus services

11. The number of free MTR shuttle buses and the level of shuttle bus service to be deployed during a railway incident will depend on which section of the railway line is involved and the seriousness of the situation. Generally speaking, according to the agreement between MTRCL and the Public Omnibus Operators 5254 LEGISLATIVE COUNCIL ― 22 March 2017

Association ("POOA")(1), when free MTR shuttle bus service is needed, POOA will arrange about seven buses to provide service within 30 to 45 minutes after receiving MTRCL's notification; an additional 40 buses, if required, will be deployed within 1 to 1.5 hour; and about 100 buses in total after 2 to 2.5 hours. The actual number of buses to be deployed will depend on the extent of impact to train service and road traffic condition. Depending on the actual situation, MTRCL may operate additional shuttle buses or modify the operating details of shuttle bus services to suit the need of the affected passengers.

12. Information on the estimated arrival time, locations of and routes to boarding and alighting points of free MTR shuttle buses is included in MTRCL's "Rail Service Suspension―Passenger Guide" which is tailor-made for each station for distribution in the station. The Guide is also uploaded to MTRCL's website .

13. Since the carrying capacity of shuttle buses is far below that of the railway, they can only serve as a support service to assist affected passengers to continue with their journeys. It is not possible for shuttle buses to serve as replacement for the entire railway service. Therefore, lines queuing for such bus service are expected and most passengers may have to change to other unaffected MTR lines or take alternative public transport services to travel to their destinations.

Manpower Deployment

14. In response to a service disruption incident, the MTRCL staff would be on duty at each MTR station to carry out crowd management duties, make public announcements, issue station notices and help passengers on fare matters according to the established procedures in times of incidents. The number of station staff will be increased as needed.

15. MTRCL has also established a dedicated Customer Service Rapid Response Unit ("CSRRU") with around 90 members to provide additional support focusing on customer service on top of the manpower stationed at individual stations. MTRCL will from time to time review the number of team members of CSRRU as necessary.

(1) POOA is the confederation of non-franchised public bus operators in Hong Kong. At present, more than 200 non-franchised operators are members of POOA, and together having a fleet of about 4 000 buses which accounts for about 60% of the total non-franchised buses operating in Hong Kong. LEGISLATIVE COUNCIL ― 22 March 2017 5255

16. Upon calling out the free MTR shuttle bus services during serious service disruption, the Operations Control Centre ("OCC") of MTRCL will mobilize team members of CSRRU to affected stations to provide extra support on:

- setting up facilities for the implementation of free MTR shuttle bus services; - maintaining order at affected stations and free MTR shuttle bus boarding/alighting points; - making timely reports to OCC during incidents to facilitate more effective coordination with relevant government departments such as the Police for better crowd management; - handling enquiries and advising passengers on alternative routes and transport choices; and - providing guidance and assistance to passengers.

17. Upon notification of deployment, CSRRU team members will proceed to the affected stations by the best available means of transport, including taxi. The first team would likely arrive within 20 minutes in most cases according to past experience. CSRRU team members are easily identifiable in their pink vests.

Regular review and updating

18. MTRCL will continue to regularly review and update its contingency plans for railway service disruption in consultation with relevant government departments, in the light of operational experience gained.

Registration and employment of non-locally trained doctors

17. DR PIERRE CHAN (in Chinese): President, if any person has been awarded a medical degree by the University of Hong Kong ("HKU") or The Chinese University of Hong Kong ("CUHK") and has completed a year of internship at the Hospital Authority ("HA"), that person is qualified to be registered as a medical practitioner. Non-locally trained medical practitioners are required to pass the Licensing Examination administered by the Medical Council of Hong Kong ("MCHK") and to complete a period of internship at HA before they may be registered as medical practitioners. In addition, non-locally 5256 LEGISLATIVE COUNCIL ― 22 March 2017 trained medical practitioners with acceptable qualifications and relevant experience, if employed by specified institutions (including the Department of Health, HA and the medical schools of HKU and CUHK) for the purposes of teaching, conducting research or performing clinical work, may apply to MCHK for limited registration with a time limit. Regarding matters relating to the registration and employment of non-locally trained medical practitioners in Hong Kong, will the Government inform this Council whether it knows:

(1) the number of local medical graduates registered as medical practitioners in each of the past five years; among them, the respective numbers of those who were and were not offered appointment by HA after registration; the general reasons why HA did not offer appointment to some of them (if any);

(2) the number of non-locally trained medical practitioners who passed the Licensing Examination in each of the past five years, with a breakdown by the country/region where they received medical training; among them, the respective numbers of those who were and were not offered appointment by HA after registration; the general reasons why HA did not offer appointment to some of them (if any);

(3) in each of the past five years, (i) the number of job applications received by HA from non-locally trained medical practitioners and (ii) the number of such medical practitioners employed by HA; among the medical practitioners employed, (iii) the number of those whose applications for limited registration were approved by MCHK, with a breakdown by the country/region where they received medical training;

(4) in each of the past five years, (i) the respective numbers of job applications received by HKU, CUHK and the Department of Health from non-locally trained medical practitioners and (ii) the respective numbers of such medical practitioners employed by those institutions; among the medical practitioners employed, (iii) the number of those whose applications for limited registration were approved by MCHK, with a breakdown by their grades and ranks as well as by the country/region where they received medical training;

LEGISLATIVE COUNCIL ― 22 March 2017 5257

(5) the respective numbers of non-locally trained medical practitioners whose applications for renewal of limited registration were approved and rejected by MCHK in each of the past five years; the general reasons why MCHK rejected some of the applications (if any); and

(6) regarding the 136 non-locally trained medical practitioners with limited registration in Hong Kong as at the end of last year, of a breakdown of that number by the number of years of working in Hong Kong (set out in the table below)?

Number of years of working in Hong Kong Number of people Over 20 years Over 15 to 20 years Over 10 to 15 years Over 5 to 10 years 5 years or less

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, operating under the principle of professional autonomy, the Medical Council of Hong Kong ("MCHK") is an independent statutory body established under the Medical Registration Ordinance ("MRO"). It is responsible for handling matters relating to the registration and regulation of doctors in Hong Kong.

In addition, according to sections 8 and 14 of MRO, a person may be registered as a doctor with full registration if he/she:

(a) has been awarded a degree of medicine and surgery by the University of Hong Kong ("HKU") or The Chinese University of Hong Kong ("CUHK") and has attained a certificate of experience of employment in a resident medical capacity in approved hospitals for a period of not less than 12 months under section 9 of MRO; or

(b) has passed the Licensing Examination and completed a period of assessment in approved hospitals as determined by MCHK under section 10A of MRO.

5258 LEGISLATIVE COUNCIL ― 22 March 2017

According to section 14A of MRO, a person may be registered as a doctor with limited registration if he/she satisfies MCHK that:

(a) he/she has been selected for an employment or for a type of employment determined and promulgated by MCHK;

(b) he/she has obtained an acceptable overseas qualification;

(c) he/she has had adequate and relevant full-time post-qualification clinical experience;

(d) he/she is registered with a medical authority outside Hong Kong; and

(e) he/she is of good character.

So far, MCHK has published 12 promulgations of limited registration in the Government Gazette. At present, there is no registration under promulgations no. 1, 5, 6, 7, 8 and 11 as the types of employment described in those promulgations no longer exist. Currently, application for limited registration can be made under the following six promulgations:

Promulgation Employment No. No. 2 For the following types of full-time employment:

(a) Employment as a medical practitioner by the Government for the purpose of research work or for such clinical practice of medicine or special health care services, as specified by the Director of Health;

(b) Employment as a medical practitioner by the Hospital Authority ("HA") for the purpose of research work or for such clinical practice of medicine or hospital work, as specified by HA;

(c) Employment as a medical practitioner by HKU or CUHK for the purpose of teaching, research or performing hospital work, in the Faculty of Medicine. LEGISLATIVE COUNCIL ― 22 March 2017 5259

Promulgation Employment No. No. 3 Being such persons (whose names were entered prior to the end of 1964 into a list maintained by the Registrar of Clinics, Department of Health ("DH")) appointed for the provision of primary health care, and to be responsible for the medical management of those clinics exempted from the provisions of section 7 of the Medical Clinics Ordinance (Cap. 343). No. 4 Being such persons (whose names were entered prior to the end of 1964 into a list maintained by the Registrar of Clinics, DH and who are or who have been registered under Promulgation No. 3 of MCHK on Limited Registration) appointed for the provision of primary health care, and to be responsible for the medical management of those clinics registered under the Medical Clinics Ordinance (Cap. 343). No. 9 Employment for supervising the medical matters which may arise in connexion with the construction work in compressed air for the Tuen Mun-Chek Lap Kok Link-Northern Connection Sub-sea Tunnel Section project under Highways Department's contract number HY/2012/08. No. 10 Employment by a firm of solicitors registered by The Law Society of Hong Kong to carry out a medical examination of a person in Hong Kong for the sole purpose of preparing a medical expert report on that person for use in a pending court proceedings in Hong Kong. No. 12 Employment for the purposes of the annual rugby event Sevens World Series.

Doctors with limited registration may carry out medical practice including teaching, research and hospital work etc. subject to specified restrictions and conditions. The maximum duration of limited registration is one year. Upon expiry of the registration, the person may apply for renewal for up to another year.

As at end 2016, there were a total of 134 doctors with limited registration in Hong Kong. They were employed by the medical faculties of HKU and CUHK (79 persons), HA (14 persons), clinics that have been exempted from the provisions of section 7 of the Medical Clinics Ordinance (27 persons), clinics registered under the Medical Clinics Ordinance (12 persons), and works 5260 LEGISLATIVE COUNCIL ― 22 March 2017 contractor commissioned by the Highways Department (2 persons). DH has not employed any doctor with limited registration. The breakdown of doctors with limited registration under the promulgations in the past five years (i.e. from 2012 to 2016) is at Annex 1.

My consolidated reply to the six questions raised by Dr Pierre CHAN is as follows:

(1) and (2)

In the past five years, the average number of doctors newly granted full registration was about 320 each year, of which about 280 possessed qualifications awarded by the two medical schools, and about 40 passed the Licensing Examination and completed internship assessment. Detailed figures are set out at Annex 2.

The number of candidates who sat and passed the Licensing Examination of MCHK in the past five years by the jurisdictions of qualification held by candidates is set out at Annex 3.

At present, there are about 5 800 doctors in HA. HA assesses the manpower situation of doctors annually and recruits doctors taking into account factors including service demand, service development needs, staff turnover and market supply.

Locally trained medical graduates are the most important source of doctors serving in the public sector. As far as Resident Trainees are concerned, HA employs most of the local medical graduates. In the past five years, for applicants who were graduates from the two medical schools and newly granted full registration, on average about 96% of them joined HA. In addition, HA also employs other qualified doctors to meet service demand. In the past five years, for applicants who were newly granted full registration after passing the Licensing Examination and completing the internship assessment, on average about 71% of them joined HA. For applicants who were not newly registered, an average of about 50% joined HA in the past five years. Detailed figures are set out at Annex 4. Looking ahead, the growth in health care services will be able to absorb new medical graduates.

LEGISLATIVE COUNCIL ― 22 March 2017 5261

The main reason for applicants not joining HA eventually because they chose not to accept HA's offers. It is understood that a small number of graduates joined the private health care sector or were employed by other institutions such as DH and the two universities.

(3) Although HA has employed most of the local medical graduates and other qualified doctors, there was still a shortfall of about 300 doctors as at end 2016. From January 2012 to end 2016, MCHK approved a total of 29 applications for limited registration from non-locally trained doctors who were employed by HA to address manpower shortage. All of them were employed as Service Residents. All applicants have at least three years' clinical experience in hospitals after completion of internship, and possess a specialist qualification comparable to the Intermediate Examinations of the constituent Colleges of the Hong Kong Academy of Medicine ("HKAM"). As at end 2016, there were 12 doctors with limited registration working in HA to address manpower shortage. They served in the anaesthesiology, emergency medicine, family medicine, internal medicine, paediatrics and radiology departments respectively.

At present, doctors with limited registration serving in HA represent only a small proportion of the overall number of HA doctors and a stringent mechanism has been put in place for recruitment of such doctors. HA conducts regular manpower assessment in consultation with the relevant departments and organizations, including the specialties with severe staff shortage, frontline doctors, doctors unions and the Doctors Staff Group Consultative Committee. Upon requests from departments and with consent of the Central Co-ordinating Committees ("COCs") of the respective specialties, HA will initiate the recruitment process for doctors under limited registration.

The Selection Panel of HA is responsible for recruitment and selection of doctors with limited registration. It consists of representatives from the relevant constituent Colleges of the HKAM and HA's COCs of the respective specialties. HA will ensure that the applicants meet the qualification requirements before submitting applications for limited registration to MCHK. It will also provide relevant information to assist MCHK in considering the applications. 5262 LEGISLATIVE COUNCIL ― 22 March 2017

HA has set up a Task Force on Limited Registration Scheme, which is responsible for monitoring the employment of doctors under limited registration. It consists of the deans of the two medical faculties, the President of HKAM, representatives of HA Board and the Chief Executive of HA. HA will report the recruitment progress and results on a regular basis at the Administrative and Operational Meetings and Directors' Meetings of HA.

Locally trained doctors will continue to be HA's main source of manpower supply, while doctors with limited registration will only be employed when necessary in order to address short-term manpower shortage. The information on doctors with limited registration in HA is at Annex 5.

(4) The information on the employment of doctors with limited registration by HKU, CUHK and DH is at Annex 6.

(5) The information on doctors with limited registration applying for renewal of registration in each of the past five years is at Annex 7.

(6) The number of years that doctors with limited registration have worked in Hong Kong is set out at Annex 8.

Annex 1

Number of doctors with limited registration

As at end As at end As at end As at end As at end Promulgation 2012 2013 2014 2015 2016 No. 2 118 115 97 104 93 - HKU (45) (45) (33) (30) (27)* - CUHK (62) (58) (51) (62) (52) - HA# (11) (12) (13) (12) (14) - DH (-) (-) (-) (-) (-) No. 3 41 36 34 31 27 No. 4 16 15 15 13 12 No. 9 - - - 2 2 LEGISLATIVE COUNCIL ― 22 March 2017 5263

As at end As at end As at end As at end As at end Promulgation 2012 2013 2014 2015 2016 No. 10 - - - 0 0 No. 11 - - - 0 0 No. 12 - - - 0 0 Total 175 166 146 150 134

Notes:

(1) Promulgations No. 1, 5, 6, 7 and 8 had ceased to be in force since 2012.

(2) Promulgations No. 9 to 12 came into force in 2015.

* According to the latest statistics provided by HKU.

# Since January 2012 up to end 2016, MCHK has approved a total of 29 applications for limited registration of non-locally trained doctors who are employed by HA to address manpower shortage. All of them were employed as Service Residents. The annual figures are as follows. As at end 2016, there were 12 doctors with limited registration working in HA to address manpower shortage.

Year Number of registrants with first registration Number of registrants as at year-end 2012 13 9 2013 3 10 2014 4 11 2015 3 10 2016 6 12 Total 29 -

Annex 2

Number of doctors newly granted full registration

2012 2013 2014 2015 2016 Number of doctors with full registration who graduated from the two local 246 250 258 326 319 medical schools Number of doctors with full registration who passed the Licensing Examination 14 24 41 71 60 and completed internship assessment Total 260 274 299 397 379

5264 LEGISLATIVE COUNCIL ― 22 March 2017

Annex 3

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Annex 4

HA Number of doctors with full registration employed as Service Residents (figures in the following tables denote the financial year)

Table 1: Doctors with full registration who were graduates of the two local medical schools and newly registered

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Number of applicants for Service Residents 259 251 253 261 319 in HA Number of applicants 240 241 243 257 311 joining HA Others (including number of applicants 19 10 10 4 8 not accepting offer)

Table 2: Doctors who were newly registered with full registration after passing the Licensing Examination and completing internship assessment

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Number of applicants for Service Residents 16 20 24 44 74 in HA Number of applicants 10 13 20 29 62 joining HA Others (including number of applicants 6 7 4 15 12 not accepting offer)

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Table 3: Doctors with full registration who were not newly registered (including doctors with full registration who were graduates from the two medical schools and those who have passed the Licensing Examination and completed the period of assessment)

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Number of applicants for Service Residents 54 55 56 41 43 in HA Number of applicants 33 20 28 25 26 joining HA Others (including number of applicants 21 35 28 16 17 not accepting offer)

Annex 5

HA Number of non-locally trained doctors with limited registration

2015-2016 2011-2012 2012-2013 2013-2014 2014-2015 (as at end 2016) Number of job applications from non-locally trained 160 72 40 34 40 doctors received by HA Number of applications for limited registration 14 6 4 6 5 submitted by HA to MCHK Number of applications approved 13 6 4 6 5(1) by MCHK Number of non-locally trained 11 5 4 4 4(2) doctors who accepted the job offer of HA 5274 LEGISLATIVE COUNCIL ― 22 March 2017

2015-2016 2011-2012 2012-2013 2013-2014 2014-2015 (as at end 2016) Number of applicants not yet for renewal of 7 4 3 1(3) completed registration the first Number of applicants year's granted renewal of 7 4 3 1 contract registration service

Notes:

(1) In January 2017, MCHK approved applications from five non-locally trained doctors for limited registration.

(2) Four non-locally trained doctors assumed their new posts in January or February 2017, while the remaining one will assume duty in April 2017.

(3) Another two non-locally trained doctors have not yet completed their first year's contract service.

Qualifications obtained and departments served by non-locally trained doctors with limited registration

(Since January 2012 up to end 2016, MCHK has approved a total of 29 applications for limited registration of non-locally trained doctors who are employed by HA to address manpower shortage. All of them were employed as Service Residents. As at end 2016, there were 12 doctors with limited registration working in HA to address manpower shortage.)

Australia/ Total United United New Canada (Number Kingdom States Zealand of doctors) Family Medicine 3 1 3(2) 7 Anaesthesiology 3 7 10 Internal Medicine 3 3 Emergency Medicine 5 5 Paediatrics 1 1 Radiology 1(1) 1 LEGISLATIVE COUNCIL ― 22 March 2017 5275

Australia/ Total United United New Canada (Number Kingdom States Zealand of doctors) Intensive Care 1(1) 1 Psychiatry 1 1 Total 17 8 1 3 29 (Number of doctors)

Notes:

(1) The applicant obtained the basic medical degree from Malaysia and specialty qualification from the United Kingdom. The applicant was a registered doctor in Malaysia.

(2) One applicant obtained the basic medical degree from the Netherlands and specialty qualifications from Canada, the United States and Australia. The applicant was a registered doctor in Canada, the United States, Australia and the United Kingdom. Another applicant obtained the basic medical degree from the Mainland China and specialty qualification from Canada. The applicant was a registered doctor in Canada.

Annex 6

Applications for limited registration submitted by HKU, CUHK and DH

2012 2013 2014 2015 2016 (i) Number of job applications from non-locally trained doctors - HKU Not applicable - CUHK (As information of all unsuccessful candidates will be destroyed within a period of time after the recruitment exercise, and the universities have not captured any statistics on locally and non-locally trained doctors for each recruitment exercise, the relevant figures are not available) - DH 4 0 2 2 0 (ii) Number of new applications for limited registration submitted to the MCHK - HKU 47 49 27 22 26 - CUHK 40 27 43 60 29 - DH 0 0 1 0 0 5276 LEGISLATIVE COUNCIL ― 22 March 2017

2012 2013 2014 2015 2016 (iii) Number of new applications approved by the MCHK - HKU 47 49 27 22 26 - CUHK 40 27 43 60 29 - DH 0 0 1 0 0 (iv) Number of non-locally trained doctors who accepted the appointment offer - HKU 47 47 25 18 24 (a) Engaged as teaching staff (4) (2) (9) (3) (7) (b) Engaged as training and/or (43) (45) (16) (15) (17) exchange personnel - CUHK 40 27 43 60 29 (a) Appointed with formal (3) (3) (4) (5) (4) offer (b) Engaged in training and/or (37) (24) (39) (55) (25) short-term academic exchanges - DH 0 0 1 0 0 (v) Number of non-locally trained doctors who declined the appointment offer - HKU 0 2 2 4 2 (Personal reasons) - CUHK 0 0 0 0 0 - DH 0 0 0 0 0

Note:

The figures are based on the effective dates of limited registration.

(vi) Number of doctors with limited registration in various grades and ranks (as at end 2016)

(A) HKU

Rank Number Clinical Assistant Professor 7 Clinical Associate Professor 2 Clinical Professor 4 Lecturer 2 Senior Lecturer 1 Clinical Associate/Honorary Clinical Associate 11 (engaging in training and/or exchanges) Total 27 LEGISLATIVE COUNCIL ― 22 March 2017 5277

(B) CUHK

Rank Number Professor 10 Associate Professor 3 Assistant Professor 9 Research Professor 1 Research Assistant Professor 1 Clinical Professional Consultant 5 Clinical Lecturer 4 Honorary Researcher/Visiting Scholar 19 (Engaging in training and/or short-term academic exchanges) Total 52

(C) DH

There was no doctor with limited registration working in DH as at end 2016.

(vii) Countries/Regions where doctors with limited registration received medical training (as at end 2016)

(A) HKU

Country/Region Number of doctors United Kingdom 8 Mainland China 7 Australia 3 Canada 2 United States 2 Brazil 1 Czech Republic 1 Georgia 1 India 1 Sri Lanka 1 Total 27

5278 LEGISLATIVE COUNCIL ― 22 March 2017

(B) CUHK

Country/Region Number of doctors United Kingdom 13 Mainland China 11 Philippines 6 India 5 South Africa 4 Canada 3 Australia 2 Bahrain 1 France 1 Germany 1 Nepal 1 Oman 1 Taiwan 1 Thailand 1 United States 1 Total 52

Annex 7

Number of doctors applying for renewal of limited registration (based on the effective dates of renewed registration)

2012 2013 2014 2015 2016 Promulgation No. 2 - HKU 17 19 15 19 14 - CUHK 44 33 32 35 39 - HA 2 9 11 11 10 - DH 0 0 0 0 0 Promulgation No. 3 39 37 36 32 28 Promulgation No. 4 18 15 14 9 12 Promulgation No. 9 - - - 0 2 Promulgation No. 10 - - - 0 0 LEGISLATIVE COUNCIL ― 22 March 2017 5279

2012 2013 2014 2015 2016 Promulgation No. 11 - - - 0 0 Promulgation No. 12 - - - 0 0 Total 120 113 108 106 105

Notes:

(1) All applications for renewal of limited registration from 2012 to 2016 were approved.

(2) Promulgations No. 1, 5, 6, 7 and 8 have ceased to be in force since 2012.

(3) Promulgations No. 9 to 12 came into force in 2015.

Annex 8

Number of years that doctors with limited registration have worked in Hong Kong (as at end 2016)

under 5 5 to 10 10 to 15 15 to 20 over 20 years years years years years Promulgation No. 2 - HKU 22 2 1 0 2 - CUHK 30 7 4 2 9 - HA 12@ 0 0 2 0 - DH 0 0 0 0 0 Promulgation No. 3 0 0 0 0 27 Promulgation No. 4 0 0 0 0 12 Promulgation No. 9 2 - - - - Promulgation No. 10 0 - - - - Promulgation No. 12 0 - - - - Total 66 9 5 4 50

Notes:

Promulgation No. 1, 5, 6, 7, 8 and 11 have ceased to be in force. Promulgation No. 9, 10 and 12 have come into force since 2015.

@ Since January 2012 up to end 2016, MCHK has approved a total of 29 applications for limited registration of non-locally trained doctors who are employed by HA to address manpower shortage. All of them were employed as Service Residents. As at end 2016, there were 12 doctors with limited registration working in HA to address manpower shortage. 5280 LEGISLATIVE COUNCIL ― 22 March 2017

Handling of stray cattle

18. MR KENNETH LAU (in Chinese): President, some residents in Mui Wo and Sha Tau Kok have relayed to me that they have all along been troubled by the nuisance caused by stray cattle. Although the Agriculture, Fisheries and Conservation Department ("AFCD") set up a Cattle Management Team ("CMT") in 2011 and implemented a "Capture-Sterilize-Relocate" programme to control the number of stray cattle, incidents of stray cattle polluting the environment, obstructing traffic, damaging crops as well as attacking residents and picnickers have still occurred from time to time. Some Mui Wo residents have suggested relocating the stray cattle in Mui Wo to Tai A Chau. In August 2016, AFCD sent its staff to conduct site inspections in Tai A Chau and, after conducting a preliminary assessment, considered Tai A Chau a suitable habitat for cattle. However, I have learnt that the relocation plan has yet to be implemented due to insufficient resources. In this connection, will the Government inform this Council:

(1) whether it knows the number of stray cattle across the territory in each of the past five years, together with a breakdown by District Council district and species of the cattle; whether there is an upward trend in the number of stray cattle in Mui Wo; if so, whether the increase is caused by the natural breeding of cattle, the migration of cattle from other places on Lantau Island to Mui Wo, or other factors; whether it has assessed if stray cattle will pose any threat to the personal safety of residents; if it has assessed, of the outcome;

(2) since the setting up of CMT, of the respective numbers of stray cattle on Lantau Island which have been (i) captured, (ii) sterilized and (iii) relocated by CMT officers, and those (iv) found to have returned to their pre-relocation sites, together with a breakdown of the numbers by whether these stray cattle were found in Mui Wo or other places;

(3) of the number of stray cattle on Lantau Island which were crushed to death by vehicles in the past five years;

(4) of the outcome of the study conducted by AFCD on the installation of cattle grids to limit the movements of stray cattle;

LEGISLATIVE COUNCIL ― 22 March 2017 5281

(5) whether the authorities will take forward the plan of relocating the stray cattle in Mui Wo to Tai A Chau; if so, of the latest progress and how the authorities will resolve the problem of having insufficient resources; if not, the authorities' plan to resolve the problem of stray cattle causing nuisance; and

(6) of the current staffing establishment of CMT; whether AFCD will increase the manpower of CMT to expedite the handling of the stray cattle problem?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, there are divergent views in the community on how best stray cattle should be managed. Some are of the view that stray cattle have ecological value and should be protected. In addition, as part of the community, stray cattle should be allowed to live freely in their original dwelling places. On the other hand, there are views that stray cattle should be relocated because they cause obstruction to traffic, affect environmental hygiene, cause nuisance to the daily lives of residents, and may damage crops at times. To strike a balance among these conflicting views, the Agriculture, Fisheries and Conservation Department ("AFCD") set up in 2011 a dedicated Cattle Management Team ("CMT") to manage the issue of stray cattle through a multi-pronged approach, including sterilizing and relocating captured cattle, having regard to individual circumstances of the places frequented by stray cattle.

My reply to the various parts of the question is given below:

(1) The species and numbers of cattle in various districts as recorded in a territory-wide population survey of stray cattle commissioned by AFCD in 2013 are set out at Annex. According to the data collected by AFCD since 2011, there has been an increase in the number of stray cattle in Mui Wo due to natural breeding. Some residents living nearby had complained about the nuisance caused by stray cattle. Since the end of 2011, AFCD has implemented the Capture-Sterilize-Relocate programme mainly on Lantau Island and in Sai Kung to control cattle population and reduce the nuisance caused to nearby residents by sterilizing and relocating the cattle to a more remote location in the same district.

5282 LEGISLATIVE COUNCIL ― 22 March 2017

(2) As at February 2017, the respective number of stray cattle captured, sterilized and relocated in Mui Wo and other places on Lantau Island since the setting up of CMT is as follows:

Lantau Island Mui Wo Other places Captured* (heads) 26 208 Sterilized (heads) 26 119 Relocated* (heads) 19 187

Note:

* Figures include stray cattle repeatedly captured or relocated.

AFCD does not have statistics on the number of stray cattle found to have returned to their pre-relocation sites.

(3) According to the Police's records, there were a total of 17 traffic accidents involving cattle on Lantau Island between 2013 and February 2017.

(4) After numerous site visits and discussions with the animal welfare organizations ("AWOs") concerned, AFCD has been exploring the feasibility of installing a cattle grid on a trial basis in Sai Kung, with a view to preventing the stray cattle from leaving their usual dwelling places. AFCD has been liaising with the relevant departments on the technical feasibility and implications to pedestrians and road users.

(5) Given the divergent views of AWOs, the Government has no plan for the time being to relocate stray cattle to Tai A Chau. However, AFCD is planning to relocate the cattle in Mui Wo to the hills at Tung Wan Tau in the district on a trial basis in order to minimize their movements in urban areas and the nuisance caused to nearby residents.

(6) The current staffing establishment of CMT is as follows: one Veterinary Officer, two Field Officers II, four Field Assistants and one Driver. The Government will examine from time to time whether the resources are adequate to cope with the management of stray cattle.

LEGISLATIVE COUNCIL ― 22 March 2017 5283

Annex

2013 Territory-wide Population Survey of Stray Cattle with a Breakdown by District and Species

District/Species of cattle Brown cattle Buffalo Sai Kung/Ma On Shan 450 0 Lantau Island 225 75 Central New Territories 200 45 East/North New Territories 235 0

Provision of employment support for persons with disabilities

19. MR HOLDEN CHOW (in Chinese): President, according to the statistics for 2013, after the Government's recurrent cash policy intervention, the poor population with disabilities was 147 400 and the poverty rate of persons with disabilities ("PWDs") was 29.5% (which was more than double the overall poverty rate of 14.5%). In addition, a social welfare organization has pointed out that since the expenditures incurred by PWDs on areas such as healthcare, transport (including the need to be accompanied by carers when going out) are generally higher than able-bodied persons, the actual poverty situation of PWDs may be even worse than that shown by the poverty rate; and the Government should strengthen the employment support provided to PWDs to help them get out of poverty. In this connection, will the Government inform this Council:

(1) given that in comparison with small and medium-sized enterprises, large enterprises are in a better position to fulfill their corporate social responsibilities by providing employment opportunities for PWDs, whether the Government will consider enacting legislation to make it mandatory for large enterprises to employ a certain percentage or number of PWDs; and

(2) whether it has studied the introduction of new policies and measures (e.g. providing subsidies and allowances) to help or encourage PWDs to secure employment so as to improve their poverty situation?

5284 LEGISLATIVE COUNCIL ― 22 March 2017

SECRETARY FOR LABOUR AND WELFARE (in Chinese): President, my reply to the two parts of Mr Holden CHOW's question is as follows:

(1) The Government's policy objectives are to provide skill training and support services for persons with disabilities ("PWDs") so that they can take up productive and gainful employment in the open market on the basis of their abilities rather than disabilities; to provide assistance for employers and to strive to promote an inclusive society. Enacting legislation to make it mandatory for large enterprises to employ a certain percentage or number of PWDs may create a negative labelling effect, which is not conducive to the integration of PWDs into the community. The Government has no plan at this stage to introduce a mandatory employment quota system for PWDs, and will continue to implement multi-pronged measures proactively to promote employment of PWDs, with a view to enhancing PWDs' abilities on one hand; and encouraging employers to employ PWDs and promoting an inclusive society on the other.

(2) The Government is committed to promoting employment of PWDs. The measures taken include providing vocational rehabilitation and training services as well as job matching services in the open market for PWDs, offering financial incentives to employers and setting up social enterprises. To further encourage employment of PWDs, the Government introduced three pilot schemes in 2016: raising the maximum level of disregarded earnings for disabled recipients under the Comprehensive Social Security Assistance Scheme from $2,500 to $4,000 per month; providing an additional monthly subsidy of $5,000 for Higher Disability Allowance recipients who are in paid employment and have met other requirements such as income limit, so as to enable them to hire carers to assist them in travelling between their home and workplace and carrying out activities in their workplace; and engaging non-governmental welfare organization by the Labour Department to offer professional psychological and emotional counselling services for job seekers with disabilities in need, so as to alleviate their emotional problems arising from their disabilities or personal/family issues, and help them concentrate on job search and settle down in their new jobs as soon as possible.

LEGISLATIVE COUNCIL ― 22 March 2017 5285

Furthermore, the Government will inject an additional funding of $100 million into the Enhancing Employment of People with Disabilities through Small Enterprise Project in 2017-2018, and increase the maximum funding support per business from $2 million to $3 million, which will be used as start-up capital and operating fund for the first three years. The monitoring period will also be extended from five years to six years, with a view to encouraging non-governmental organizations to set up social enterprises for creating more employment opportunities for PWDs.

The Labour and Welfare Bureau will continue to take forward the Talent-Wise Employment Charter and Inclusive Organisations Recognition Scheme ("the Scheme") to mobilize the Government, public bodies and the private sector to make joint efforts to further promote employment of PWDs through participation in the Scheme. Under the Scheme, a participating organization will devise a host of sustainable measures commensurate with its mode of operation and strive for effective implementation of these measures.

Use of lands on private recreational leases and military sites

20. MR CHU HOI-DICK (in Chinese): President, will the Government inform this Council:

(1) of the following information on the lands which have been leased by the Government under private recreational leases ("PRLs") with premium waived or at nominal premium to lessees for development of sports and recreational facilities and relevant services: names of the lessees, lot numbers and locations, site areas and the gross floor areas of the buildings therein, expiry dates of the existing PRLs and specified land uses; and

(2) of the locations and site areas of the military sites set aside for use by the Chinese People's Liberation Army Hong Kong Garrison for defence purpose, the gross floor areas of the buildings therein, and whether it knows the current respective uses of such sites?

5286 LEGISLATIVE COUNCIL ― 22 March 2017

SECRETARY FOR HOME AFFAIRS (in Chinese): President, having consulted the Security Bureau and the Lands Department, I reply to the two parts of the question as follows:

(1) Information on lands granted under private recreational leases ("PRLs"), including names of the lessees, lot numbers and locations, site areas and expiry dates of PRLs, is at Annex. Regarding the gross floor areas ("GFA") of the buildings, we do not have the requested information for the individual PRL sites readily and we are unable to compile and provide accurate GFA data through relevant government departments within the time constraint. As for specified land uses, PRLs contain lease conditions requiring that PRL sites shall only be used for approved recreational and designated purposes and not for other purposes. Members of the public may search such information of PRLs through the Land Registry.

(2) Article 14 of the Basic Law provides that the Central People's Government shall be responsible for the defence of the Hong Kong Special Administrative Region ("HKSAR"). Article 5 of the Law of the People's Republic of China on the Garrisoning of the Hong Kong Special Administrative Region provides that one of the defence functions and responsibilities of the Hong Kong Garrison is to control military facilities. Military sites are military facilities. Their use and management are national defence matters for which the Central People's Government and the Hong Kong Garrison have sole responsibility.

There are a total of 19 military sites in HKSAR, of which six are located on Hong Kong Island (namely the Central Barracks and Central Military Dock, Chek Chue Barracks, Headquarters House, Ching Yi To Barracks and Western Barracks), four in Kowloon (namely the Gun Club Hill Barracks, Kowloon East Barracks, Cornwall Street and Ngong Shuen Chau Barracks) and nine in the New Territories (namely Shek Kong Barracks, Shek Kong Village, San Tin Barracks, Tam Mei Barracks, San Wai Barracks, San Wai/Tai Ling Firing Range, Tsing Shan Firing Range, Tai O Barracks and the Military Transportation Centre at Chek Lap Kok). They occupy a total area of about 2 700 hectares. These sites were LEGISLATIVE COUNCIL ― 22 March 2017 5287

established in accordance with the Exchange of Notes between the Government of the People's Republic of China and the Government of the United Kingdom in 1994 on the arrangements for the future use of the military sites in Hong Kong for use and management by the Hong Kong Garrison. The details are military secret and cannot be disclosed.

Annex

List of private sports clubs and other organizations operating facilities on land granted under PRLs

Expiry Date of Site Area Lease/ Name of PRL Lessees Lot number and Location (about Holding- sq m) over Letter# 1. Area Committee of the NKIL 6535, Fung Shing 2 462 30.6.2027 Hong Kong Sea Cadet Street, Diamond Hill Corps 2. Area Committee of the Lot 719 in DD 256, Tsam 1 858 30.6.2027 Hong Kong Sea Cadet Chuk Wan, Sai Kung Corps 3. Aberdeen Boat Club AIL 454, Shum Wan 2 277 25.12.2021 Limited Road, Brick Hill 4. Boys' and Girls' Clubs Lot 676 in DD 257, 9 250 30.6.2027 Association of Hong Wong Yi Chau, Sai Kung Kong 5. Catholic Diocese of Lot 1870 in DD, Cheung 6 744 30.6.2027 Hong Kong (formerly Chau known as The Bishop of the Roman Catholic Church in Hong Kong) 6. Chinese Recreation Club, IL 9040, Tung Lo Wan 16 490 25.12.2026 Hong Kong Road 7. Clearwater Bay Golf and Lot 269 in DD 241, Po 1 256 765 30.6.2027 Country Club Toi O, Sai Kung 5288 LEGISLATIVE COUNCIL ― 22 March 2017

Expiry Date of Site Area Lease/ Name of PRL Lessees Lot number and Location (about Holding- sq m) over Letter# 8. Club De Recreio KIL 11221 23 095 25.12.2026 9. Craigengower Cricket IL 9031, No. 188 Wong 12 203 25.12.2026 Club Nai Chung Road 10. Directors of the Chinese Lot 195 SD5, Mau Wu 13 300 30.6.2027 Young Men's Christian Tsai, Hang Hau Association of Hong Kong 11. Directors of the Chinese Lot 76 in DD 254, Wong 29 400 30.6.2027 Young Men's Christian Yi Chau, Sai Kung Association of Hong Kong 12. Directors of the Chinese STTL 366, No. 2 On 111 690 30.6.2047 Young Men's Christian Chun Street, Sha Tin Association of Hong Kong 13. Directors of the Young KIL 11219, Off 4 843 25.12.2026 Men's Christian Gascoigne Road, King's Association of Hong Park Kong 14. Filipino Club KIL 11222, Wylie Road 2 819 25.12.2026 15. Hebe Haven Yacht Club Lot 1208 in DD 217, Pak 19 796 30.6.2027 Limited Sha Wan 16. Hong Kong Award for TPTL 220, Hang Ha Po, 7 200 30.6.2027 Young People (formerly Tai Po known as The Duke of Edinburgh's Award) 17. Hong Kong Buddhist Lot 175 in DD4, Cheung 4 877 30.6.2027 Association Tung Road, Tung Chung, Lantau Island 18. Hong Kong, China STTL 573, Yuen Wo 2 475 30.6.2027 Rowing Association Road, Sha Tin 19. Hong Kong Chinese KIL 11224, No. 8 Wylie 3 090 25.12.2026 Civil Servants' Road Association LEGISLATIVE COUNCIL ― 22 March 2017 5289

Expiry Date of Site Area Lease/ Name of PRL Lessees Lot number and Location (about Holding- sq m) over Letter# 20. Hong Kong Country RBL 1195, No. 188 21 090 3.4.2027 Club Wong Chuk Hang Road 21. Hong Kong Cricket Club IL 9019, No. 137 Wong 18 448 30.6.2023 Nai Chung Gap Road 22. Hong Kong Football IL 9033, No. 3 Sports 29 537 25.12.2026 Club Road, Happy Valley 23. Hong Kong Girl Guides IL 9034, No. 141 Wong 4 418 25.12.2026 Association Nai Chung Gap Road 24. Hong Kong Girl Guides Lot 1754 in DD 122, 2 076 30.6.2027 Association Ping Shan, Yuen Long 25. Hong Kong Girl Guides Lot 2544 in DD 92, Hang 2 831 30.6.2017# Association Tau Road, Kwu Tung South, Sheung Shui 26. Hong Kong Girl Guides KIL 10734, Junction of 2 357 25.12.2056 Association Gascoigne Road and Wylie Road 27. Hong Kong Golf Club RBL 1194, Deep Water 66 500 25.12.2026 Bay 28. Hong Kong Golf Club Lot 942 RP in DD 94, 1 706 106 31.8.2020 Sheung Shui 29. Hong Kong Gun Club TWTL 419, Chuen Lung, 64 900 30.6.2027 Tsuen Wan 30. Hong Kong Jockey Club IL 8847, No. 1 Sports 92 000 23.6.2034 Road and Wong Nai Chung Road 31. Hong Kong Model Lot 2416 in DD 118, Tai 34 955 3.11.2024 Engineering Club Tong, Yuen Long Limited 32. Hong Kong Playground Lot 739 in DD 2, Mui 14 983 30.6.2027 Association Wo, Lantau Island 33. Hong Kong Softball KIL 11226, Tin Kwong 8 360 24.12.2026 Association Road 5290 LEGISLATIVE COUNCIL ― 22 March 2017

Expiry Date of Site Area Lease/ Name of PRL Lessees Lot number and Location (about Holding- sq m) over Letter# 34. Hong Kong Young Lot 752 in DD 332, 10 780 30.6.2027 Women's Christian Cheung Sha, Lantau Association Island 35. Hong Kong Youth Lot 240 in DD Ngong 7 300 30.6.2027 Hostels Association Ping, Ngong Ping 36. Hong Kong Youth TPTL 133, Tai Mei Tuk 1 000 19.6.2017# Hostels Association 37. India Club, Kowloon KIL 11223, Gascoigne 3 656 25.12.2026 Road 38. Indian Recreation Club IL 9039, No. 63 Caroline 11 855 25.12.2026 Hill Road, So Kon Po 39. Jardine's Lookout IL 8895, No. 2 Creasy 12 406 25.7.2017# Residents' Association Road, Jardine's Lookout 40. Kowloon Bowling Green KIL 11217, Austin Road 7 311 25.12.2026 Club 41. Kowloon Cricket Club KIL 11216, Cox's Road 25 203 25.12.2026 42. Kowloon Tong Club NKIL 6528, No. 113A 8 886 24.12.2026 Waterloo Road, Kowloon Tong 43. Kowloon Tsai Home NKIL 6529, No. 10A 5 716 25.12.2026 Owners Association Cambridge Road 44. Mong Kok District KIL 11165, J/O Ivy 234 9.9.2018 Cultural, Recreational & Street & Beech Street Sports Association Limited 45. Municipal Services Staff KIL 11225, Wylie Path, 4 402 25.12.2026 Recreation Club Limited King's Park 46. Outward Bound Trust of Lot 718 in DD 256, Tai 23 800 30.6.2027 Hong Kong Limited Mong Tsai, Sai Kung 47. Pakistan Association of KIL 11220, Princess 2 236 25.12.2026 Hong Kong, Limited Margaret Road 48. Po Leung Kuk Lot 2419 DD 118, Tai 129 573 5.11.2026 Tong, Yuen Long LEGISLATIVE COUNCIL ― 22 March 2017 5291

Expiry Date of Site Area Lease/ Name of PRL Lessees Lot number and Location (about Holding- sq m) over Letter# 49. Po Leung Kuk Lot 675 in DD 257, Pak 48 261 30.6.2027 Tam Chung, Sai Kung 50. Royal Hong Kong Yacht ML 709, Kellett Island 18 738 19.2.2056 Club 51. Royal Hong Kong Yacht RBL 1181, Middle Island 2 940 24.5.2021 Club 52. Royal Hong Kong Yacht Lot 341 and Extension in 11 820 8.8.2017# Club DD 212, Che Keng Tuk 53. Scout Association of NKIL 6530, No. 11 420 25.12.2026 Hong Kong Rutland Quadrant 54. Scout Association of Lot 1207 in DD 217, Pak 2 405 30.6.2027 Hong Kong Sha Wan, Sai Kung 55. Scout Association of STTL 592, Sha Tin 36 191 30.6.2027 Hong Kong 56. Scout Association of IL 8961, Mansion Street, 471 25.6.2017# Hong Kong North Point 57. Scout Association of Lot 131 in DD 60, Au 65 18.1.2024 Hong Kong Tau, Yuen Long 58. Scout Association of TPTL 190, Tung Tsz, Tai 30 200 24.6.2025 Hong Kong Po 59. Scout Association of KCTL 511, No. 308 Wo 690 30.6.2027 Hong Kong and Hong Yi Hop Road, Kwai Kong Girl Guides Chung Association 60. Scout Association of STTL 591, Shui Chuen 9 549 30.6.2027 Hong Kong and Hong Au Street, Sha Tin Kong Girl Guides Association 61. South China Athletic IL 9041, No. 88 Caroline 32 480 25.12.2026 Association Hill Road, So Kon Po 62. South China Athletic KIL 11218, Wylie Path 5 309 25.12.2026 Association 63. Tai Po Sports TPTL 216, On Cheung 3 051 30.6.2027 Association Limited Road, Tai Po 5292 LEGISLATIVE COUNCIL ― 22 March 2017

Expiry Date of Site Area Lease/ Name of PRL Lessees Lot number and Location (about Holding- sq m) over Letter# 64. The Post Office and IL 8597 RP, No. 108 4 814 Quarterly Cable & Wireless Caroline Hill Road, So term# Recreation Club Limited Kon Po 65. Victoria Recreation Club Lot 316 in DD 252, Sai 14 100 31.5.2017# Kung 66. Yau Yat Chuen Garden NKIL 6508, No. 7 Cassia 5 917 25.12.2026 City Club Limited Road, Yau Yat Chuen 67. Yuen Long District YLTL 520, Yuen Long 1 163 18.10.2031 Sports Association Limited

Note:

# Holding-over letter is issued as a transitional arrangement to cover the period from the expiry of a PRL to the completion of renewal procedures.

Statistics on fixed-pitch hawker licences

21. MR HUI CHI-FUNG (in Chinese): President, regarding issues relating to fixed-pitch hawker licences ("hawker licences"), will the Government inform this Council of:

(1) the annual changes in the number of hawker licences in the past five years, with a breakdown by District Council district;

(2) the number of hawker licences surrendered in the past five years, with a breakdown by District Council district;

(3) the respective numbers of new licences issued, in the past five years by the Food and Environmental Hygiene Department ("FEHD") in relation to the fixed hawker pitches left vacant upon surrender of hawker licences by the licensees, to their assistants and other persons;

LEGISLATIVE COUNCIL ― 22 March 2017 5293

(4) the number of appeals lodged against the rejection of applications for succession or transfer of hawker licences, which were handled by the Licensing Appeals Board in the past five years; the number of successful cases among those appeals; and

(5) the criteria adopted by FEHD for considering the issuance of new hawker licences?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, it has been the Government's policy since the early 1970s that normally no new hawker licences should be issued and that on-street licensed hawkers should be put into public market buildings or off-street hawker bazaars as far as practicable so as to reduce street obstruction, environmental nuisance to the residents living nearby or even hazards relating to hygiene and fire risks. The Food and Environmental Hygiene Department ("FEHD") has continued to pursue the above policies on hawker control and licensing since its establishment in 2000.

The Government reviewed the hawker licensing policy in 2008-2009. The scope of the review covered examination of the feasibility of re-issuing new hawker licences, relaxation of the requirements for succession and transfer of hawker licences, and ways to strengthen the role of District Councils ("DCs") in hawker licensing and management. Subsequent to the review, the Government implemented various measures, including re-issuing more than 200 fixed-pitch hawker licences in the light of the vacancy situation in individual fixed pitches. These licensees included the then-employed registered assistants who had experience in running hawker business and other eligible members of the public. No succession and transfer will be allowed under the licencing conditions for these newly issued hawker licenses.

In addition, to improve the fire resistance capability and design of hawker stalls, the Government rolled out in June 2013 a five-year assistance scheme for licensed hawkers operating in the 43 fixed-pitch hawker areas (the Hawker Assistance Scheme ("HAS")), involving a funding allocation of $230 million. Financial assistance would be given to the relevant licensed hawkers for stall reconstruction and relocation, and a one-off ex-gracia payment would be offered for surrendering their licences.

5294 LEGISLATIVE COUNCIL ― 22 March 2017

My reply to the various parts of the question is as follows:

(1) The numbers of fixed-pitch hawker licences in each of the past five years (i.e. from 2012 to 2016) with breakdown by districts are as follows:

District 2012 2013 2014 2015 2016 Central and Western 661 632 612 599 588 Wan Chai 463 454 442 430 424 Eastern 464 420 396 376 329 Southern 55 54 52 51 51 Islands 2 2 2 2 2 Yau Tsim Mong 2 924 2 806 2 714 2 617 2 527 Sham Shui Po 1 147 1 108 1 078 1 041 1 021 Kowloon City 126 116 113 110 104 Wong Tai Sin 29 29 23 24 26 Kwun Tong 167 92 214 210 208 Kwai Tsing 36 35 34 26 24 Tsuen Wan 84 132 132 131 120 Tuen Mun 27 21 21 21 18 Yuen Long 19 18 17 16 14 North 14 11 11 10 6 Tai Po 14 14 14 13 10 Sha Tin 34 32 27 23 22 Sai Kung 3 3 3 3 2 Total 6 269 5 979 5 905 5 703 5 496

(2) The numbers of voluntary surrender of fixed-pitch hawker licences in each of the past five years (i.e. from 2012 to 2016) with breakdown by districts are as follows:

District 2012 2013 2014 2015 2016 Total Central and Western 4 25 17 12 10 68 Wan Chai 6 9 11 14 15 55 Eastern 3 41 26 17 34 121 Southern 1 0 1 0 0 2 LEGISLATIVE COUNCIL ― 22 March 2017 5295

District 2012 2013 2014 2015 2016 Total Islands 0 0 0 0 0 0 Yau Tsim Mong 15 106 89 80 85 375 Sham Shui Po 14 39 29 30 14 126 Kowloon City 10 10 5 2 5 32 Wong Tai Sin 0 0 0 0 0 0 Kwun Tong 7 6 6 2 0 21 Kwai Tsing 1 2 1 7 2 13 Tsuen Wan 2 2 2 1 2 9 Tuen Mun 1 5 0 0 3 9 Yuen Long 0 1 1 2 1 5 North 0 3 0 1 4 8 Tai Po 0 0 0 3 1 4 Sha Tin 4 2 2 5 1 14 Sai Kung 0 0 0 0 0 0 Total 68 251 190 176 177 862

Note:

HAS commenced in June 2013. Since then, most of the cases of surrender of hawker licences were handled through HAS, among which involved cases of pitches that could not be re-used, including pitches (for different purposes) located outside building staircase discharge points/emergency vehicular access, earmarked to accommodate stalls that require relocation due to fire safety considerations, absorbed in the course of rationalization of the overall layout of hawker areas and vacated due to other reasons, as well as reserved for relocation.

(3) In the past five years, there was no succession by registered assistants nor issue of new hawker licences to members of the public after the voluntary surrender of hawker licences.

(4) From 2012 to 2016, the Licensing Appeals Board handled a total of 14 cases concerning succession and transfer of hawker licenses. Among those appeals, 4 were allowed and 5 were allowed subject to conditions.

(5) HAS will end in June 2018. Before and after the end of HAS, FEHD will take into account the circumstances of individual hawker areas, including their fire safety and environmental hygiene 5296 LEGISLATIVE COUNCIL ― 22 March 2017

situations, the business environment, comments of relevant Government departments, as well as the views of the relevant District Council and local residents to carefully decide whether or not to issue new hawker licences so as to fill up the hawker areas where there are vacant pitches that may be re-used.

Promotion of re-industrialization and development of industries

22. MR JIMMY NG (in Chinese): President, the Chief Executive indicated in the 2016 Policy Address that "re-industrialization" would be a potential new area of economic growth for Hong Kong. The Government would introduce sustainable measures for the promotion of re-industrialization and development of suitable high-end technology industries. Besides, the Financial Secretary indicated in his Budget delivered last month that a new committee on innovation and technology ("I&T") development and re-industrialization would be set up to coordinate I&T development and re-industrialization of Hong Kong, and that a tax policy unit would be set up to explore proposals for enhancing tax deductions for I&T expenditure. In this connection, will the Government inform this Council:

(1) since the implementation of the measure allowing the operation of calibration laboratories in industrial buildings in February last year, of (i) the respective numbers of applications for waivers received and approved by the authorities in respect of the operation of testing laboratories in industrial buildings, and (ii) the total amount of waiver fees exempted by the authorities;

(2) since last year's revision of the policy on industrial estates ("IEs") to accommodate I&T industries, of the total area of unused factory sites within IEs which have been repossessed by the authorities; the total land area in the three IEs currently available for redevelopment, and the expected time when such lands will be made available for use;

(3) of the authorities' expected completion date of the study on enhancing tax deductions for I&T expenditure, as well as the manpower and expenditure involved; whether they will consider LEGISLATIVE COUNCIL ― 22 March 2017 5297

offering tax concessions to manufacturers outside Hong Kong (including Mainland China as well as the countries and places along the "Belt and Road") in respect of expenditures on acquiring machinery and using copyright; whether they will consult the industrial sector on the relevant taxation measures; if so, of the details; if not, the reasons for that; and

(4) whether the authorities will consider establishing a dedicated department for the coordination of work among various government departments, and the formulation of policies and measures to mitigate the problems currently faced by the industrial sector, such as supply of raw materials, manpower resources, logistics, taxation, in order to promote re-industrialization and development of high-end technology industries; if so, of the details (including the organization and functions of that department); if not, the reasons for that?

SECRETARY FOR INNOVATION AND TECHNOLOGY (in Chinese): President, having consulted the relevant Policy Bureaux, our reply to the four parts of the question is as follows:

(1) Effective from 1 February 2016, the Government introduced a new measure to facilitate the operation of testing and calibration laboratories ("testing laboratories") in industrial buildings. Upon approval of application, the Government will exempt the waiver fees that would otherwise be chargeable for issuing waivers to allow testing laboratories use under a general industrial land lease.

As at end February 2017, the Government had received seven applications, which involved three testing laboratories in three industrial buildings. Five of the applications (involving the same testing laboratory) have been approved.

Under general circumstances, the amount of waiver fee payable would depend on the floor area, location, and the proposed use of the premises in question. However, the Government had not assessed 5298 LEGISLATIVE COUNCIL ― 22 March 2017

the waiver fees for the above applications because the waiver fees were already exempted under the new measure.

(2) The Government has been working closely with the Hong Kong Science and Technology Parks Corporation ("HKSTPC") in promoting "re-industrialization". We have revised the Industrial Estate ("IE") policy to encourage smart production, attract high value-added technology industries and manufacturing processes. In future, HKSTPC will build and manage specialized multi-storey industrial buildings for rent to different users. In 2016, the Government also secured the Legislative Council's funding for HKSTPC to build a Data Technology Hub and an Advanced Manufacturing Centre in the Tseung Kwan O IE with a view to promoting smart production. It is expected that the two projects can be completed in 2020 and 2021-2022 respectively. In addition to the aforementioned project sites, there are about 5.55 hectares of vacant industrial sites in the three IEs.

In order to make better use of the existing IE sites, HKSTPC is actively negotiating with relevant grantees of the IE sites, encouraging them to surrender the unused plot ratio or premises which have not been fully utilized. So far, HKSTPC has successfully repossessed seven sites with an area of about 8 hectares. In addition, HKSTPC has also clawed back about 116 000 sq m of undeveloped gross floor area ("GFA") and released a GFA of about 118 000 sq m from the seawall at Tseung Kwan O IE, which can be transferred to other sites within IE.

HKSTPC will identify suitable premises from the surrendered factories and refurbish them for leasing to the technology industry. In this regard, the first project is a five-storey building on a 0.35 hectares site in Tai Po IE. HKSTPC is carrying out refurbishment works for the building. After completion of the works, a GFA of 8 500 sq m can be provided. HKSTPC has started receiving applications for admission since this month. It is anticipated that tenants can move in in September this year at the earliest.

LEGISLATIVE COUNCIL ― 22 March 2017 5299

(3) The Financial Secretary announced in the 2017-2018 Budget that the Financial Services and the Treasury Bureau would set up a tax policy unit. On the one hand, we will seek to align our tax practices with international standards and actively study ways to foster the development of industries through tax measures including enhanced deduction for scientific research expenditure, so as to ensure that Hong Kong remains competitive and can create wealth. On the other hand, we will enhance our tax regime and explore broadening the tax base and increasing revenue, so as to ensure that adequate resources are available to support the sustainable development of our society.

The Financial Services and the Treasury Bureau is actively making preparatory work for setting up the tax policy unit and aims to formulate the direction and study areas, including the deduction for scientific research expenditure, shortly. The Financial Services and the Treasury Bureau has included about $3.5 million in its Estimates of Expenditure for 2017-2018 to meet the expenditure for the additional manpower required.

(4) The 2017-2018 Budget announced that that the Government would set up a committee on innovation and technology ("I&T") development and "re-industrialization". The committee will coordinate the I&T development of Hong Kong and "re-industrialization" through a higher-level and inter-bureaux approach.

We are now working on the terms of reference and membership of the committee with a view to commencing the appointment exercise as soon as practicable. We plan to invite the major stakeholders in I&T and industrial sectors in Hong Kong to serve as members of the committee and provide their views to the Government on matters relating to the promotion of I&T development and "re-industrialization" in Hong Kong. We will work out the development strategies and work focus based on the committee's recommendations.

5300 LEGISLATIVE COUNCIL ― 22 March 2017

GOVERNMENT BILLS

First Reading of Government Bills

PRESIDENT (in Cantonese): Government Bills: First Reading.

INLAND REVENUE (AMENDMENT) (NO. 2) BILL 2017

INLAND REVENUE (AMENDMENT) BILL 2017

TRAVEL INDUSTRY BILL

CLERK (in Cantonese): Inland Revenue (Amendment) (No. 2) Bill 2017 Inland Revenue (Amendment) Bill 2017 Travel Industry Bill.

Bills 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 of Government Bills

PRESIDENT (in Cantonese): Government Bills: Second Reading.

INLAND REVENUE (AMENDMENT) (NO. 2) BILL 2017

SECRETARY FOR TRANSPORT AND HOUSING (in Cantonese): President, I move the Second Reading of the Inland Revenue (Amendment) (No. 2) Bill 2017 ("the Bill").

The objective of the Bill is to amend the Inland Revenue Ordinance, thereby providing a new standalone tax regime, under which profits tax concessions will be given to qualifying aircraft lessors and qualifying aircraft leasing managers with a view to strengthening the competitiveness of Hong Kong in offshore aircraft leasing activities.

LEGISLATIVE COUNCIL ― 22 March 2017 5301

Civil aviation is a business characterized by long-term and stable growth. The development of the civil aviation industry in Asia is particularly fast in recent years, driving the demand for aircraft leasing in the region in the long run. It is estimated that, over the next 20 years, the number of global aviation passengers will grow at about 5% per annum, whereas the growth in the Asia Pacific region will be about 6%. The numbers of new aircraft delivered worldwide and in the Asia Pacific region are estimated at over 39 000 (with an aggregate value of over US$5.9 trillion) and over 15 000 (with an aggregate value of over US$2.4 trillion) respectively. Among them, the new aircraft needed by Mainland airlines will account for more than 40% of the forecasted deliveries to the Asia Pacific region. In recent years, the proportion of new aircraft being financed by leasing around the world has risen to over 30%, and it is expected to grow further to 40%. The demand for financing aircraft purchase is expected to increase steadily at a compound annual growth rate of about 6.7%.

As an international financial centre and aviation hub, Hong Kong already possesses favourable conditions necessary for developing aircraft leasing business, namely, our sound legal and banking systems, well-developed and diversified capital markets, excellent aviation infrastructure and talents, and proximity to the huge Mainland market. Meanwhile, according to the Fourth Protocol to the Comprehensive Arrangement for the Avoidance of Double Taxation between the Mainland and Hong Kong signed in 2015, the withholding tax rate on lease rentals derived from aircraft and ship leasing businesses has been set at 5%, lower than the 6% rate in the Avoidance of Double Taxation Agreements concluded between the Mainland and aircraft leasing hubs such as Ireland and Singapore. This has provided a solid foundation for the development of Hong Kong's aircraft leasing businesses.

However, according to the prevailing tax rules of Hong Kong, depreciation allowances are denied for offshore leasing activities. Some market practitioners consider the current 16.5% profits tax rate relatively high and not conducive to offshore aircraft leasing businesses. Hence, the Bill has proposed to introduce profits tax concessions for qualifying aircraft lessors and qualifying aircraft leasing managers, with a view to enhancing Hong Kong's competitive edge in developing offshore aircraft leasing business.

As proposed by the Bill, the profits tax rate applicable to qualifying aircraft lessors and qualifying aircraft leasing managers is to be set at half (i.e. 8.25%) of the prevailing corporate profits tax rate. In addition, in view of their ineligibility 5302 LEGISLATIVE COUNCIL ― 22 March 2017 for depreciation allowances, an alternative arrangement is made under which the taxable amount of lease payments derived from leasing of an aircraft to a non-Hong Kong aircraft operator by qualifying aircraft lessors will be equal to 20% of the tax base, i.e. the gross lease payments less deductible expenses (excluding tax depreciation).

To prevent cross-border tax abuse via sub-leasing, for example, an intermediate lessor is set up in Hong Kong to claim treaty benefit and concessionary tax treatment under this proposed tax regime while the head lessor can still enjoy tax depreciation in another jurisdiction, the Bill provides that the subject aircraft must be acquired and owned by the qualifying aircraft lessor which should be a standalone corporate entity engaging only in qualifying aircraft leasing activities. Taking into account the operations of the aviation finance industry, the Bill has provided for a safe harbour rule,1 which allows aircraft leasing managers having profits primarily from, and assets primarily for, their aircraft leasing management activities to enjoy the half-rate as well.

In the meantime, to ensure compliance with international standards on combating tax base erosion and profit shifting, so as to avoid the occurrence of double non-taxation or the shifting of profits to low-tax regimes, the Government has proposed to introduce an anti-avoidance provision which stipulates that the half-rate concession will apply to assessable profits in respect of which the corresponding payments are not tax deductible in Hong Kong. The provision seeks to prevent revenue loss where there is half taxation of qualifying profits by qualifying aircraft lessors and qualifying aircraft leasing managers but full deduction of the corresponding payments by associated corporations.

1 There are two alternative safe harbours as follows:

(1) the "1-year safe harbour" which requires the corporation to satisfy certain conditions regarding its aircraft leasing management profits and aircraft leasing management assets for the year of assessment concerned. In short, the corporation's aircraft leasing management profits and aircraft leasing management assets percentages for the year shall not be lower than the prescribed profits percentage (75%) and the prescribed asset percentage (75%) respectively.

(2) the "multiple-year safe harbour" which requires the corporation to satisfy the conditions similar to those in (1) for the year of assessment concerned and the preceding one or two years of assessment. LEGISLATIVE COUNCIL ― 22 March 2017 5303

In addition, we have proposed to amend the Inland Revenue Ordinance to make it clear that the place where the aircraft is used is not the test in determining the source of the income. A qualifying aircraft lessor or qualifying aircraft leasing manager carrying on a business in Hong Kong is subject to Hong Kong profits tax in respect of its profits derived from such business, even in the case of aircraft used outside Hong Kong.

President, the Government briefed the Panel on Economic Development of the Legislative Council on 23 January this year on the above mentioned proposed tax regime dedicated to promoting aircraft leasing business, and it has received widespread support. The local aviation and financial sectors have also expressed support for the proposal. In their view, Hong Kong should be in a better position to capitalize on the opportunities arising from the rapid growth of the aircraft leasing sector if the proposed tax regime is implemented. When I attended a policy briefing in London earlier this month, I spoke on the proposed legislative amendment. Among the participants were responsible persons of major international aircraft leasing companies. After the meeting, some companies indicated an interest to explore the possibility of carrying on the business in Hong Kong.

I hope that the Legislative Council will support the expeditious passage of the Bill, with a view to implementing the new dedicated tax regime, thereby vigorously promoting the development of offshore aircraft leasing activities in Hong Kong, and boosting the demand for the financial and professional services in Hong Kong. The economic benefits and job opportunities are expected to be considerable, including the creation of thousands of jobs and additional profits tax revenue totalling more than HK$10 billion over a 20-year period. This initiative will further consolidate Hong Kong's status as an international financial centre and enhance the soft power of Hong Kong as an international aviation hub.

President, I so submit.

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the Inland Revenue (Amendment) (No. 2) Bill 2017 be read the Second time.

In accordance with the Rules of Procedure, the debate is now adjourned and the Bill is referred to the House Committee.

5304 LEGISLATIVE COUNCIL ― 22 March 2017

INLAND REVENUE (AMENDMENT) BILL 2017

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, I move the Second Reading of the Inland Revenue (Amendment) Bill 2017 ("the Bill").

The Bill seeks to amend the Inland Revenue Ordinance to give effect to the tax concession measures proposed in the 2017-2018 Budget.

First, with regard to recurrent measures, the Bill sets out the following adjustments to salaries tax and tax under personal assessment, with effect from the year of assessment 2017-2018:

(a) widening the marginal tax bands from $40,000 to $45,000. This measure will benefit 1.3 million taxpayers and reduce tax revenue by $1.5 billion a year;

(b) increasing the disabled dependant allowance from $66,000 to $75,000. This measure will benefit 35 000 taxpayers and reduce tax revenue by $50 million a year;

(c) increasing the dependent brother/sister allowance from $33,000 to $37,500. This measure will benefit 23 800 taxpayers and reduce tax revenue by $13 million a year;

(d) extending the entitlement period for home loan interest deduction from 15 years to 20 years, while maintaining the current deduction ceiling of $100,000 a year. This measure will reduce tax revenue by $430 million a year; and

(e) increasing the deduction ceiling for self-education expenses from $80,000 to $100,000. This measure will benefit 3 500 taxpayers and reduce tax revenue by $8 million a year.

The above adjustments will together reduce tax revenue by $2 billion each year.

In addition to the aforementioned recurrent measures, the Bill also sets out a reduction of salaries tax, tax under personal assessment and profits tax for the year of assessment 2016-2017 by 75%, subject to a ceiling of $20,000 per case. LEGISLATIVE COUNCIL ― 22 March 2017 5305

The reduction will be reflected in taxpayers' final tax payable for the year of assessment 2016-2017. The measure will benefit 1.84 million taxpayers of salaries tax and tax under personal assessment, and 132 000 tax-paying corporations and unincorporated businesses. Consequently Government revenue will be reduced by $18.3 billion.

President, we have we set out the details of the proposed amendments in the Legislative Council brief issued on 1 March. I hope all Members will support and pass the Bill as soon as possible for early implementation of the taxation measures.

I so submit. Thank you, President.

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the Inland Revenue (Amendment) Bill 2017 be read the Second time.

In accordance with the Rules of Procedure, the debate is now adjourned and the Bill is referred to the House Committee.

TRAVEL INDUSTRY BILL

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): President, I move the Second Reading of the Travel Industry Bill ("the Bill").

The main purpose of the Bill is to establish an independent statutory regulatory body, the Travel Industry Authority ("TIA"), to be responsible for the licensing and regulation of travel agents, tourist guides and tour escorts. The Government's policy objectives of formulating the Bill are to enhance the professionalism of the travel trade and foster the healthy long-term development of the industry.

(THE PRESIDENT'S DEPUTY, MS STARRY LEE, took the Chair)

Over the years, the Government has attached great importance to the sustainable development of Hong Kong's travel industry, and a majority of travel trade members have been carrying on their business properly. However, in the 5306 LEGISLATIVE COUNCIL ― 22 March 2017

Mainland inbound tourism market, there have been incidents of visitors being coerced into shopping, some of which have even involved the injuries and deaths of visitors, and there have been other types of non-compliance cases in the trade. These incidents have inevitably tarnished the image and reputation of our travel industry, calling for a need to reform the existing regulatory regime.

The Government launched a 10-week public consultation exercise in April 2011, and, in response to the general consensus reached after the consultation, announced in December of the same year its decision to establish an independent statutory body, that is, TIA. Under the new regulatory regime, TIA will take up the current licensing and trade regulatory roles from the Travel Agents Registry and the Travel Industry Council of Hong Kong ("TIC") respectively, so as to regulate travel agents, tourist guides and tour escorts in a holistic and impartial manner.

Overall speaking, the Bill has three key elements, namely: establishing TIA as the regulatory body for our travel industry; regulating the trade and combating serious unscrupulous acts through a statutory licensing regime; and fostering the healthy long-term development of the industry through the establishment of the Travel Industry Development Fund.

On the composition of TIA, non-travel trade members will be in the majority to establish an impartial image. The Government proposes that TIA should consist of 30 members, of whom 17 are non-travel trade members (that is, a Chairperson, a Vice-chairperson being the Commissioner for Tourism, and members from different sectors other than the travel sector) and 13 are travel trade members (that is, representatives of travel agents, tourist guides and tour escorts).

The new regulatory regime will regulate the trade mainly from three aspects, namely the primary legislation to be enacted through the Bill, subsidiary legislation, and the administrative measures to be formulated and promulgated by TIA. Certain criminal offences targeted at major unscrupulous acts will be set out in the primary and subsidiary legislation. Offenders on conviction will be liable to a maximum penalty of a fine and imprisonment, and those who are licensees will be additionally subject to the disciplinary proceedings stipulated in the Bill. Licensees who contravene only the administrative measures will be subject to the disciplinary proceedings.

LEGISLATIVE COUNCIL ― 22 March 2017 5307

As regards the licensing regime, the Bill will widen the scope of persons to be licensed as travel agents. Besides those who carry on any outbound and/or inbound travel business activities in Hong Kong, any persons who carry on any outbound travel business activities at a place outside Hong Kong and actively market, whether in Hong Kong or from a place outside Hong Kong, to the public of Hong Kong any such activities will be required to obtain licences. This is to make online travel agents, which have become increasingly popular in Hong Kong's outbound tourism market, also come under the new regulatory regime so as to afford greater protection to the outbound travellers of Hong Kong.

The requirements for issuing and renewing travel agent licences in the Bill will be drawn up with reference to the current requirements, that is, the factors for considering whether an applicant is suitable to hold a licence under the Travel Agents Ordinance and the existing requirements imposed by TIC. The Bill will also introduce certain new requirements, including the requirements of depositing guarantee money by bank guarantee and appointing authorized representatives, and allow TIA to consider the relevant factors (such as any conviction records of any offences involving violence or under the Trade Descriptions Ordinance) when vetting and approving applications for licences and renewal of licences.

Moreover, the Bill will establish a statutory licensing regime for tourist guides and tour escorts to replace the existing accreditation system implemented by TIC administratively. The requirements for issuing and renewing licences will be drawn up with reference to TIC's current requirements. Tourist guides and tour escorts upon each licence renewal will also be required to have completed the specified Continuing Professional Development Scheme, so as to enhance their service quality and professionalism. When vetting and approving applications for licences and renewal of licences, TIA will comprehensively consider whether the applicants are suitable to hold licences, such as by having regard to their conviction records of relevant offences (if any).

To combat unscrupulous acts in the travel trade (which include carrying on travel agent business, or working as a tourist guide or tour escort, without a licence; cooperating with an unauthorized Mainland travel agent; and failing to display the relevant information about a tour group on the vehicle arranged for transporting the tour group), the Bill contains provisions on relevant criminal offences. As the trade has been vexed in particularly by the problem of coerced shopping for a long time, the Bill will also empower TIA to prescribe licence conditions through subsidiary legislation to prohibit travel agents and tourist guides from committing any act of coerced shopping. Any travel agent or tourist guide that breaches a licence condition will be subject to criminal penalties and/or disciplinary orders. 5308 LEGISLATIVE COUNCIL ― 22 March 2017

We recognize that tourist guides and tour escorts, as frontline trade practitioners, mainly follow travel agents' instructions whilst working. The Bill will empower TIA to formulate a series of administrative measures to help clarify their working relationships and better protect the interests of tourist guides and tour escorts. Such measures include requiring a travel agent to provide a job sheet for its tourist guides or tour escorts, and to sign with its tourist guides or tour escorts a service agreement whereby it must pay them service remuneration, must not require them to bear or unreasonably advance any payment for a tour group received, and must not delay the reimbursement for any advance payment made by them. Any travel agent that contravenes any of the administrative measures will be subject to disciplinary orders.

The Bill will empower TIA to establish a disciplinary committee, the members of which are to be drawn from both within and outside the travel trade, with non-trade members being in the majority. The disciplinary committee will be responsible for conducting inquiries into cases of complaint or suspected misconduct against licensees, and making disciplinary orders such as warnings, demerit points, financial penalties, and licence suspension or revocation. Any licensee aggrieved by a disciplinary order may lodge an appeal with an appeal panel which is independent of TIA and appointed by the Government. To ensure the appeal panel's independence, all members of the appeal panel will be appointed by the Secretary for Commerce and Economic Development, and any public officers or members of TIA or its committees (including the disciplinary committee) must not serve as members of the appeal panel. Also, under TIA, there will be an independent panel appointed by the Secretary for Commerce and Economic Development to handle disputes between consumers and licensees that do not involve disciplinary matters.

Regarding the Travel Industry Compensation Fund, the Bill will empower TIA to continue running the current Compensation Fund to provide travellers with ex gratia payments in respect of eligible outbound travel services. In addition, to facilitate the continuous development of Hong Kong's travel industry, the Bill will empower the Secretary for Commerce and Economic Development to prescribe by subsidiary legislation a certain percentage of the Compensation Fund to be set aside for establishing a new fund called the "Travel Industry Development Fund", so as to provide the travel trade with financial support in areas such as training and information technology application.

To ensure a smooth transition, upon the full commencement of the new regulatory regime, all existing travel agent licences, as well as tourist guide passes and tour escort passes issued by TIC by then, will remain valid until they LEGISLATIVE COUNCIL ― 22 March 2017 5309 expire, or three months after the commencement date of the new regulatory regime, whichever is the later.

Before the full commencement of the new regime, the Government will, as always, continue to give its full support to TIC's regulatory work. Travel agents, tourist guides and tour escorts must continue to comply with TIC's regulatory requirements. In the future, when TIA is to vet and approve their applications for licences or renewal of licences, TIA will consider their records of compliance with TIC's regulatory regime.

After the passage of the Bill by the Legislative Council, the Government will immediately commence preparations for implementing the new regulatory regime, including seeking necessary resources to set up TIA and enable it to recruit its staff to handle tasks such as drawing up subsidiary legislation and formulating administrative measures. TIA will enter into thorough discussions with the travel trade, and the Government will, together with TIA, maintain close communication with TIC to ensure a smooth transition from the existing regime to the new one. Here, on behalf of the Government, I would like to thank TIC for its dedicated commitment to trade self-regulation over the past 30-odd years, which is a significant contribution. Looking ahead, I firmly believe that TIC will continue to play an important role in promoting the development of the industry.

During the process of formulating the Bill, the Government was always in close communication with the travel trade and other stakeholders, and did report progress to the Legislative Council Panel on Economic Development from time to time. The Bill has endeavoured to balance the views of various parties, taking into account the regulatory challenges posed by changes in the tourism market over the past few years. I hope Honourable Members can support the Bill, so that TIA can be established as soon as possible. Thank you, Deputy President.

DEPUTY PRESIDENT (in Cantonese): I now propose the question to you and that is: That the Travel Industry Bill be read the Second time.

In accordance with the Rules of Procedure, the debate is now adjourned and the Bill is referred to the House Committee.

5310 LEGISLATIVE COUNCIL ― 22 March 2017

GOVERNMENT MOTION

DEPUTY PRESIDENT (in Cantonese): Government motion. Proposed resolution under the Public Finance Ordinance.

Members who wish to speak on the motion will please press the "Request to speak" button.

I now call upon the Secretary for Financial Services and the Treasury to speak and move the motion.

PROPOSED RESOLUTION UNDER THE PUBLIC FINANCE ORDINANCE

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): Deputy President, I move that the motion, as printed on the Agenda, be passed.

The purpose of this motion is to seek funds on account to enable the Government to continue to carry on its services between the start of the financial year on 1 April 2017 and the time when the Appropriation Ordinance 2017 comes into operation. This is a long established and essential procedure. The specific arrangements also follow those of recent years.

According to the Budget timetable this year, the Legislative Council will resume the Second Reading debate of the Appropriation Bill 2017 at its meeting on 26 April 2017. As such, the Appropriation Ordinance 2017 would not come into operation before late April 2017. To ensure that the Government will not need to halt public services, including services closely related to people's livelihood such as education, social welfare, health care and security due to the lack of funds when the new financial year starts on 1 April 2017, we need to propose this motion.

The funds on account sought under each subhead in accordance with the fourth paragraph of the Resolution have been determined with reference to the relevant provisions in the 2017-2018 Estimates of Expenditure. The initial amount of funds on account under each head which has incorporated requirements at subhead level is provided in the form of a footnote to this speech. LEGISLATIVE COUNCIL ― 22 March 2017 5311

The aggregate amount of funds on account is $95,216,178,000 before the Appropriation Ordinance 2017 comes into operation. This represents around 24% of the total appropriation of $398,057,570,000 under the Appropriation Bill 2017. The proposed funds on account should be able to cope with only around two months of the Government's operational requirements.

Subject to the above aggregate amount not being exceeded, the Resolution enables the Financial Secretary to vary the funds on account in respect of any subhead, but these variations must not exceed the provision for that subhead in the 2017-2018 Estimates of Expenditure. To enhance transparency and in line with the established practice, we will report to the Finance Committee of this Council if the Financial Secretary has exercised this authority to meet necessary requirements.

The Government has to make payments for a large number of expenditure items every day. Taking the first week between 1 April and 7 April of the 2017-2018 financial year as an example, government expenditure items to be settled during the week include:

(a) subvention payments of around $4.5 billion to the Hospital Authority;

(b) payments for Comprehensive Social Security Assistance and Social Security Allowance totalling around $500 million to about 50 000 families and 80 000 individuals respectively;

(c) pension gratuities of around $700 million to retired civil servants;

(d) subvention payments of around $700 million to the Vocational Training Council; and

(e) grants of around $1.5 billion to University Grants Committee-funded institutions.

There are also other expenses such as salaries of contract staff as well as accounts payable to suppliers.

It takes at least two to three working days for government departments and banks to process a large number of payments made by autopay. It also takes some days to complete the statutory procedures after passage of the Vote on 5312 LEGISLATIVE COUNCIL ― 22 March 2017

Account Resolution including the gazettal process and procedures for issuance of the Vote on Account warrant, so that the Government can make payments starting from 1 April as usual. In order to ensure that the Government has the necessary resources to continue those services provided to the public, I urge Members to support the motion today.

The Vote on Account will be subsumed upon the enactment and commencement of the Appropriation Ordinance 2017.

Deputy President, I beg to move.

Footnote

Amount Initial amount shown in the Head of Expenditure of funds on Estimates account 2017-2018 $'000 $'000 21 Chief Executive's Office ...... 117,363 23,473 22 Agriculture, Fisheries and Conservation Department ...... 1,521,847 462,678 25 Architectural Services Department ...... 2,042,983 410,277 24 Audit Commission ...... 169,191 33,839 23 Auxiliary Medical Service...... 97,935 20,979 82 Buildings Department ...... 1,382,930 276,586 26 Census and Statistics Department...... 665,767 133,154 27 Civil Aid Service...... 109,468 21,894 28 Civil Aviation Department ...... 994,730 209,746 33 Civil Engineering and Development Department ...... 2,845,479 573,086 30 Correctional Services Department ...... 3,839,053 811,206 31 Customs and Excise Department ...... 3,652,909 800,798 37 Department of Health ...... 8,780,758 1,845,266 92 Department of Justice ...... 1,971,926 394,974 39 Drainage Services Department ...... 2,636,654 556,455 42 Electrical and Mechanical Services Department ...... 668,166 281,553 44 Environmental Protection Department ...... 6,133,742 2,966,103 LEGISLATIVE COUNCIL ― 22 March 2017 5313

Amount Initial amount shown in the Head of Expenditure of funds on Estimates account 2017-2018 $'000 $'000 45 Fire Services Department ...... 6,049,824 1,581,440 49 Food and Environmental Hygiene Department ...... 6,776,198 1,494,429 46 General Expenses of the Civil Service ...... 3,826,740 765,348 166 Government Flying Service ...... 776,275 520,918 48 Government Laboratory ...... 463,918 139,134 59 Government Logistics Department ...... 619,790 283,391 51 Government Property Agency ...... 1,942,714 429,640 143 Government Secretariat: Civil Service Bureau ...... 600,626 120,126 152 Government Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch) ...... 2,515,634 993,553 55 Government Secretariat: Commerce and Economic Development Bureau (Communications and Creative Industries Branch) ...... 409,369 278,445 144 Government Secretariat: Constitutional and Mainland Affairs Bureau ...... 698,066 150,147 138 Government Secretariat: Development Bureau (Planning and Lands Branch) ...... 392,650 202,530 159 Government Secretariat: Development Bureau (Works Branch) ...... 505,678 154,793 156 Government Secretariat: Education Bureau ...... 57,393,829 13,117,541 137 Government Secretariat: Environment Bureau ...... 80,845 20,169 148 Government Secretariat: Financial Services and the Treasury Bureau (Financial Services Branch) ...... 343,588 118,898 5314 LEGISLATIVE COUNCIL ― 22 March 2017

Amount Initial amount shown in the Head of Expenditure of funds on Estimates account 2017-2018 $'000 $'000 147 Government Secretariat: Financial Services and the Treasury Bureau (The Treasury Branch) ...... 318,842 121,425 139 Government Secretariat: Food and Health Bureau (Food Branch) ...... 162,081 32,417 140 Government Secretariat: Food and Health Bureau (Health Branch) ...... 55,990,015 12,081,683 53 Government Secretariat: Home Affairs Bureau...... 2,025,752 533,132 135 Government Secretariat: Innovation and Technology Bureau ...... 178,215 123,643 155 Government Secretariat: Innovation and Technology Commission...... 621,176 161,768 141 Government Secretariat: Labour and Welfare Bureau ...... 840,546 252,662 47 Government Secretariat: Office of the Government Chief Information Officer ...... 765,961 195,157 142 Government Secretariat: Offices of the Chief Secretary for Administration and the Financial Secretary ...... 993,951 206,651 96 Government Secretariat: Overseas Economic and Trade Offices ...... 431,946 92,618 151 Government Secretariat: Security Bureau.... 606,630 121,326 158 Government Secretariat: Transport and Housing Bureau (Transport Branch) ...... 280,433 95,306 60 Highways Department ...... 3,148,719 639,535 63 Home Affairs Department ...... 2,607,074 628,392 168 Hong Kong Observatory ...... 303,083 69,674 122 Hong Kong Police Force ...... 18,495,744 4,008,577 62 Housing Department ...... 304,587 60,918 70 Immigration Department ...... 4,558,514 932,675 72 Independent Commission Against Corruption ...... 1,074,206 223,538 LEGISLATIVE COUNCIL ― 22 March 2017 5315

Amount Initial amount shown in the Head of Expenditure of funds on Estimates account 2017-2018 $'000 $'000 121 Independent Police Complaints Council ...... 73,393 16,275 74 Information Services Department ...... 505,545 102,495 76 Inland Revenue Department...... 1,566,548 315,886 78 Intellectual Property Department ...... 156,394 31,279 79 Invest Hong Kong ...... 130,697 26,140 174 Joint Secretariat for the Advisory Bodies on Civil Service and Judicial Salaries and Conditions of Service ...... 33,107 6,622 80 Judiciary ...... 1,762,725 366,391 90 Labour Department ...... 1,953,176 641,242 91 Lands Department...... 2,452,963 496,715 94 Legal Aid Department ...... 996,812 199,363 112 Legislative Council Commission ...... 841,862 174,666 95 Leisure and Cultural Services Department ... 8,599,298 1,935,530 100 Marine Department ...... 1,362,139 347,159 106 Miscellaneous Services ...... 3,912,906 1,206,906 180 Office for Film, Newspaper and Article Administration ...... 48,345 9,669 114 Office of The Ombudsman ...... 114,068 22,814 116 Official Receiver's Office ...... 180,311 36,111 120 Pensions...... 35,385,040 7,084,973 118 Planning Department ...... 686,700 143,836 136 Public Service Commission Secretariat...... 30,350 9,105 160 Radio Television Hong Kong ...... 995,202 251,134 162 Rating and Valuation Department ...... 525,906 105,662 163 Registration and Electoral Office ...... 554,159 110,832 169 Secretariat, Commissioner on Interception of Communications and Surveillance...... 21,202 4,241 170 Social Welfare Department ...... 72,151,170 22,139,899 181 Trade and Industry Department ...... 802,446 506,918 186 Transport Department ...... 3,097,346 789,246 188 Treasury...... 391,910 78,382 190 University Grants Committee ...... 18,661,695 3,732,339 5316 LEGISLATIVE COUNCIL ― 22 March 2017

Amount Initial amount shown in the Head of Expenditure of funds on Estimates account 2017-2018 $'000 $'000 194 Water Supplies Department...... 8,282,094 1,665,757 173 Working Family and Student Financial Assistance Agency ...... 8,197,941 1,834,925 ______389,207,570 95,166,178 184 Transfers to Funds...... 8,850,000 50,000 ______Total ...... 398,057,570 95,216,178 ======

Note:

* The initial amount of funds on account under Head 106 includes $1 billion under Subhead 789 Additional commitments for contingency.

The Secretary for Financial Services and the Treasury moved the following motion:

"RESOLVED that―

1. Authority is given for a sum not exceeding $95,216,178,000 to be charged on the general revenue for expenditure on the services of the Government in respect of the financial year commencing on 1 April 2017.

2. Subject to this Resolution, the sum so charged may be expended against the heads of expenditure as shown in the Estimates of Expenditure 2017-18 laid before the Legislative Council on 22 February 2017 or, if the Estimates are changed under the provisions of the Public Finance Ordinance (Cap. 2) as applied by section 7(2) of that Ordinance, as shown in the Estimates as so changed.

LEGISLATIVE COUNCIL ― 22 March 2017 5317

3. Expenditure in respect of any head of expenditure must not exceed the aggregate of the amounts authorized by paragraph 4 to be expended in respect of the subheads in that head of expenditure.

4. Expenditure in respect of each subhead in a head of expenditure must not exceed―

(a) for an Operating Account Recurrent subhead of expenditure, an amount equivalent to―

(i) except if the subhead is listed in Schedule 1 to this Resolution, 20% of the provision shown in the Estimates in respect of that subhead;

(ii) if the subhead is listed in Schedule 1 to this Resolution, the percentage of the provision shown in the Estimates in respect of that subhead that is specified in that Schedule in relation to that subhead; and

(b) for an Operating Account Non-Recurrent subhead of expenditure or a Capital Account subhead of expenditure, an amount equivalent to―

(i) except if the subhead is listed in Schedule 2 to this Resolution, 100% of the provision shown in the Estimates in respect of that subhead;

(ii) if the subhead is listed in Schedule 2 to this Resolution, the amount that is specified in that Schedule in relation to that subhead,

or such other amount, not exceeding an amount equivalent to 100% of the provision shown in the Estimates in respect of that subhead, as may in any case be approved by the Financial Secretary.

5318 LEGISLATIVE COUNCIL ― 22 March 2017

Schedule 1 [para. 4(a)]

Percentage of provision Head of Expenditure Subhead shown in

Estimates

59 Government Logistics 225 Traffic Accident 100 Department Victims Assistance Scheme―levies

90 Labour Department 280 Contribution to the 30 Occupational Safety and Health Council

295 Contribution to the 30 Occupational Deafness Compensation Board

120 Pensions 026 Employees' 35 compensation, injury, incapacity and death related payments and expenses

136 Public Service 000 Operational expenses 30 Commission Secretariat

152 Government 000 Operational expenses 25 Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch)

155 Government 000 Operational expenses 25 Secretariat: Innovation and Technology Commission

LEGISLATIVE COUNCIL ― 22 March 2017 5319

Percentage of provision Head of Expenditure Subhead shown in

Estimates

170 Social Welfare 157 Assistance for patients 100 Department and their families

176 Criminal and law 25 enforcement injuries compensation

177 Emergence relief 100

179 Comprehensive social 30 security assistance scheme

180 Social security 30 allowance scheme

Schedule 2 [para. 4(b)]

Amount Head of Expenditure Subhead $

106 Miscellaneous Services 689 Additional commitments 0

789 Additional commitments 1,000,000,000

184 Transfers to Funds 984 Payment to the Capital 0 Works Reserve Fund

988 Payment to the Loan 0 Fund

5320 LEGISLATIVE COUNCIL ― 22 March 2017

Amount Head of Expenditure Subhead $

991 Payment to the Civil 0" Service Pension Reserve Fund

DEPUTY PRESIDENT (in Cantonese): I now propose the question to you and that is: That the motion moved by the Secretary for Financial Services and the Treasury, be passed

DEPUTY PRESIDENT (in Cantonese): Does any Member wish to speak?

MR CHAN CHI-CHUEN (in Cantonese): Deputy President, I speak against the Vote on Account Resolution moved by the Secretary for Financial Services and the Treasury under the Public Finance Ordinance. I have spoken on and voted against the Vote on Account Resolution for the past four years. However, no other Member has spoken in this session every year. Fewer than 10 Members are present at the Chamber now. There may be many reasons for that. They may want to wait until the resumption of the Second Reading debate to speak; or they consider the Resolution moved by the Secretary simply a formality which will be passed eventually.

The Vote on Account Resolution was only negatived in 2011 by accident. At that time the Government even threatened that the situation was like the doomsday. The Secretary has just listed the dire consequences if the Vote on Account Resolution is not passed. In fact, they are not true at all. He can possibly move the motion again next week and will very likely see it passed.

However, perhaps precisely because of the past blunder, the civil service staff of the Financial Services and the Treasury Bureau are particularly responsible and they handle this Resolution cautiously. They have even made an attempt to talk me into supporting the Vote on Account, despite my vote against it for the past four years. Instead of seeking my support, their real purpose is, of course, to remind me not to obstruct the passage of the Resolution. Actually I can in no way obstruct the passage of the Resolution given that each LEGISLATIVE COUNCIL ― 22 March 2017 5321

Member can only speak for 15 minutes in this session and no amendment can be proposed. No matter I vote for or against the Resolution, or abstain from voting, I cannot possibly obstruct its passage. The only chance to obstruct its passage is possibly for me to take the opportunity to claim a division at around 2:00 pm when Members are still out to lunch. In this way, the Vote on Account Resolution will not be passed with sufficient votes. However, it does not matter even if it is not passed with sufficient votes. The authorities can move the Vote on Account Resolution again any time.

The first reason for my opposition is that I object to this year's Budget. Members who oppose this Budget should logically oppose the Vote on Account Resolution in principle. As the Secretary said just now, the funds on account sought under the Appropriation Ordinance 2017 is $95.2 billion, representing about 24% of the total appropriation under the Appropriation Bill 2017. It is logically contradictory for us to oppose the Budget but not the 24% of the total appropriation therein. We consistently oppose the Budget every year because it is in fact a fraudulent Budget. I will explain in detail during the Second Reading debate.

This year's Budget has gone even further than its predecessors. We may call it a Budget of reserves. Financial Secretary Paul CHAN has only made public the provisions reserved but not the estimates. He said that there will be a surplus of over $100 billion in the end, of which $60 billion will be earmarked for various purposes. However, as you can imagine, the provisions reserved may still end up being unused. The Government has reserved funds many times in the past, which were only left idle for many years. Deputy President, I hereby say in advance that I will try my best to earnestly examine this Budget in detail during the resumption of the Second Reading and the Committee stage of the Appropriation Bill 2017.

Every year since 2013, a large number of meaningful amendments have been proposed by several Members, who have spent relatively long time to scrutinize the Appropriation Bill in earnest. For this reason, it is not until late May that the Appropriation Bill 2017 is expected to be passed. I have previously queried why the authorities had only sought funds on account for two months. The reason is that the Government would often claim that it is faced with a fiscal cliff after one month. It would urge Members to pass the Appropriation Bill as soon as possible, or else all sides would end up in ruins together. In my view, the Government should seek funding for four months. 5322 LEGISLATIVE COUNCIL ― 22 March 2017

Despite my opposition, other Members will support it. In this way, a fiscal cliff will not appear, and Members will be given sufficient time for discussing the Budget.

In my view, in the past few years, the Government has intentionally limited the chances for Members to scrutinize the Budget. For example, the authorities have indicated their intention to restrict the number of questions put by Members at the special meetings of the Financial Committee; they have also accused Members of delaying the passing of the Vote on Account by proposing a large number of amendments after the resumption of Second Reading and during the Committee stage. Former President Jasper TSANG had undoubtedly set many precedents by rejecting those meaningful amendments. I urge Secretary Paul CHAN not to assume that the President of the Legislative Council will always work in tandem with the Government, although in many cases he will. Mr CHAN should not assume that the Budget will always be passed as expected.

There are actually too many reasons for opposing the Vote on Account Resolution, e.g. the information therein is too simplistic and too slapdash, making it impossible for a serious scrutiny to be conducted. According to the Resolution, unless stated otherwise, the funds on account in respect of recurrent expenditure under each head and subhead of expenditure should account for 20% of the overall estimated expenditure, while the funds on account in respect of non-recurrent expenditure under the relevant head should not exceed 100% of the estimated annual non-recurrent expenditure under that head. When I first became a Member, I also could not figure out why 24% of the annual provisions could only meet the expenditure for two months; supposedly the amount should be sufficient for three months. However, that is not really the case. The funds on account under many heads represent over 20% of the annual expenditure, the non-recurrent expenditure of which can actually be utilized in full. For example, the funds on account under "Head 53―Government Secretariat: Home Affairs Bureau" account for 26% of the estimated annual expenditure; the funds on account under "Head 148―Government Secretariat: Financial Services and the Treasury Bureau (Financial Services Branch)" account for 34% of the estimated annual expenditure; while the funds on account under "Head 166―Government Flying Service" even account for 67% of the estimated annual expenditure.

As explained by the Government, the funds on account under each head comprise recurrent and non-recurrent expenditure. Assuming that the funds on account sought in respect of non-recurrent expenditure account for over 20% of LEGISLATIVE COUNCIL ― 22 March 2017 5323 the estimated annual expenditure, the overall average ratio will still exceed 20% even if the proportion for recurrent expenditure is 20%. For this reason, the funds on account take up 24% of the total estimated expenditure. However, I hope to get an understanding of a detailed breakdown of expenditure, so as to ensure that the Government has not violated the law; we would not allow the authorities to muddle through simply by a pledge of integrity. As we all know, the Government has no integrity at all at present, although it still insists that this practice remains effective.

According to records, a Subcommittee was set up by the House Committee to scrutinize and discuss the Vote on Account Resolution in 2009. However, even with the establishment of the Subcommittee, the Government had never submitted any documents with a detailed breakdown of the amounts of funds on account by recurrent and non-recurrent expenditures. From this, we can see that the public will not be provided with satisfactory information even if a Subcommittee is set up.

Another reason for opposing the Vote on Account Resolution is the unreasonable expenditure therein. The purpose of the Vote on Account Resolution is to seek 20% of the funding under the Estimates of Expenditure to meet the operating expenses of the Government for two months. However, we are concerned that advancing two months' funding for some departments may harm public interests and lead to a waste of public funds.

Take education expenditure as an example. Of the total estimated expenditure of $57.3 billion for the year 2017-2018, the funds on account took up $13.1 billion. I am pretty sure that the funds on account include the expenditure for the Basic Competency Assessment ("BCA") research scheme, which Secretary for Education Eddie NG would rather die than scrap. According to the BCA timetable, territory-wide speaking and audio-visual assessments for Primary Six students will be conducted between 11 and 12 May 2017, while written assessments for Primary Three students will be conducted between 13 and 14 June. I expect that the assessment papers for BCA will be prepared in April and May. As we have not set up a Subcommittee in respect of the Vote on Account Resolution, we are unable to enquire about the amount of funds on account earmarked for BCA. As we do not support BCA, there is no reason for us to support the funds on account for this purpose proposed by the Government.

5324 LEGISLATIVE COUNCIL ― 22 March 2017

In addition, the amount of funds on account under "Head 142―Government Secretariat: Offices of the Chief Secretary for Administration and the Financial Secretary" is $206 million. This head comprises expenditure of the Administration Wing, including the spending of the Chief Executive-elect's Office. At an earlier meeting of the Panel on Constitutional Affairs, when the Government indicated that the expenditure of the Chief Executive-elect's Office was as high as $30 million, Members from both the pro-establishment camp and the pro-democracy camp spoke with one voice in questioning the details of the expenditure involved. I have raised a question at the Legislative Council, but no reply has been given. Hence, the passing of the Vote on Account is actually tantamount to approving the expenditure of the Chief Executive-elect's Office. I therefore will not support the approval of this funding.

In addition, part of the funds on account under "Head 25―Architectural Services Department" may be spent on renovating the official residence of the Financial Secretary, which is really infuriating. Paul CHAN will only stay in office as the Financial Secretary for a few months, but he has requested the renovation of his official residence; and he has even sent his wife to supervise the works. By contrast, former Financial Secretary John TSANG has not requested any renovation during the long period of time he stayed there. The Government has subsequently issued a press release noting that the estimated expenditure for renovating the wear and tear in the official residence and repairing the worn-out amenities is $830,000. Of this amount, $390,000 will be used for renovating the building and the flooring; $40,000 for replacing the carpets; $180,000 for refurbishing the exterior walls; $160,000 for replacing household equipment; and $60,000 for emergency works. The works are expected to be completed in March. However, it remains unknown whether the outstanding balances of the works will be entered in the Budget for the next year.

The funds on account under the two heads relating to the Education Bureau and the Office of the Financial Secretary will inevitably include the monthly emoluments of Mr Eddie NG and Mr Paul CHAN. During the scrutiny of the Budget, I will propose docking their emoluments. Mr Eddie NG has disregarded the harm of BCA on students and turned a blind eye to the request of the two odds-on favourites in the Chief Executive election, Carrie LAM and John TSANG, for scrapping TSA. Hence, he should not be given his emoluments. If I were to support the Vote on Account, I would have in effect approved paying him two months of emoluments.

LEGISLATIVE COUNCIL ― 22 March 2017 5325

I also oppose the funds on account under "Head 92―Department of Justice". The amount of funds on account under this head is $390 million, representing 19% of the $1.97 billion estimated for the year. The amount of funds on account will expectedly comprise the expenditure for paying the government counsel fees, enabling the Government to perpetuate political persecution against Members. With unlimited public money at its disposal, the Government seeks to disqualify four elected Members. Even if the Government loses the case, it will continue to use the funds on account for lodging appeals, using public money to counter members of the public. Hence, I oppose the funds on account under head 92.

Lastly, the Vote on Account also includes 20% of funding for the Chief Executive's Office. This amount of funds on account will definitely include two months of emoluments for the Chief Executive. In his capacity as the Chief Executive, Mr LEUNG Chun-ying has also unprecedentedly taken office as a Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference ("CPPCC"). Take the case of Members as a reference. Members with dual membership, namely Legislative Council Members who are also serving as Members of the Executive Council, will have their emoluments discounted. In the coming few months, should Mr LEUNG Chun-ying handle Hong Kong affairs or his work as the CPPCC Vice Chairman? How can he still have the face to receive his emoluments in full? Anyway, his emoluments should also be discounted. I even think that he should not be paid two months of emoluments. We call for docking his emoluments every year.

Summing up the various views above, I particularly oppose the expenditure for BCA and the Chief Executive-elect's Office, as well as the judicial expenses sought by the Department of Justice to persecute Members. I call on Members to oppose the Vote on Account Resolution.

DEPUTY PRESIDENT (in Cantonese): Does any other Member wish to speak?

(Mr LEUNG Kwok-hung stood up)

MR LEUNG KWOK-HUNG (in Cantonese): Deputy President, Article 75 of the Basic Law specifies the quorum for the meeting of the Legislative Council.

DEPUTY PRESIDENT (in Cantonese): Are you requesting a headcount?

5326 LEGISLATIVE COUNCIL ― 22 March 2017

MR LEUNG KWOK-HUNG (in Cantonese): Yes.

DEPUTY PRESIDENT (in Cantonese): Will the Clerk please ring the bell to summon Members back to the Chamber.

(After the summoning bell had been rung, a number of Members returned to the Chamber)

DEPUTY PRESIDENT (in Cantonese): Does any other Member wish to speak? Mr LEUNG Kwok-hung, please speak.

MR LEUNG KWOK-HUNG (in Cantonese): Deputy President, Mr CHAN Chi-chuen has just analysed in detail the function of funds on account, that is, before the Budget is passed, the Government has to apply for funds on account for its continual operation. Article 51 of the Basic Law specifies that: "If the Legislative Council of the Hong Kong Special Administrative Region refuses to pass the budget introduced by the government, the Chief Executive may apply to the Legislative Council for provisional appropriations [I am not sure if that refers to the appropriations now being applied for]. If appropriation of public funds cannot be approved because the Legislative Council has already been dissolved, the Chief Executive may, prior to the election of the new Legislative Council, approve provisional short-term appropriations according to the level of expenditure of the previous fiscal year." Having heard that, Members will ask, "Mr LEUNG Kwok-hung, what are you talking about? Why would the Legislative Council be dissolved?" Article 50 provides that: "If … the Legislative Council refuses to pass a budget or any other important bill introduced by the government, and if consensus still cannot be reached after consultations, the Chief Executive may dissolve the Legislative Council. The Chief Executive must consult the Executive Council [including the President] before dissolving the Legislative Council. The Chief Executive may dissolve the Legislative Council only once in each term of his or her office." What if this cannot be done? Article 52 provides that: "The Chief Executive of the Hong Kong Special Administrative Region must resign … [w]hen, after the Legislative Council is dissolved because it refuses to pass a budget or any other important bill, the new Legislative Council still refuses to pass the original bill in dispute." These provisions have been expressly stipulated.

LEGISLATIVE COUNCIL ― 22 March 2017 5327

Why are we discussing this motion today? It is because the Government now applies for funds on account. As regards why the motion should not be passed, Mr CHAN Chi-chuen has just given a number of reasons, such as large-scale renovation works to be carried out in the Financial Secretary's temporary residence, and no funding should be granted to such works. If the funds on account do not include a breakdown of expenditures, we are being fooled; even if many people do not want to approve the funds on account or they do not want to approve such a large amount, they cannot do so. It is because the colonial government exploited the provisions approved by the then Legislative Council; the then Governor was not a female but a British male.

I have repeatedly said that the then Legislative Council was a coterie advisory body and Members appointed by the Hong Kong Governor, including Ex-officio Members, Unofficial Members and Official Members were a breed of the same kind, like a bunch of blockheads gathering together. So, even if the Legislative Council Ordinance was amended again after the introduction of functional constituency elections to the Legislative Council or the executive authorities succeeding the British Hong Kong Government changed the dictatorship of the Governor into an executive-led system, the basic spirit was the same.

Nevertheless, the Legislative Council today is different. After 20 years of changes after the reunification, no matter how the direct election element of the Legislative Council has been contained, directly elected Members are empowered to monitor the Government under the Basic Law. Articles 51 and 52 of the Basic Law that I just cited clearly state that if the Chief Executive ignores public opinion, resulting in the Legislative Council refusing to pass his proposed Budget, he may dissolve the Legislative Council. But if the Legislative Council subsequently formed still refuses to pass the Budget, he will have to resign immediately; the provision is very stringent. When we discuss today whether the Vote on Account should be passed, Members can certainly take it lightly, thinking that this is a practice adopted each year or this is a lesser evil. It is incorrect to say that the Government cannot implement policies if it does not have money; we must look at the breakdown of expenditures.

May I ask: Where is Financial Secretary Paul CHAN? Deputy President, are we discussing the Budget today?

5328 LEGISLATIVE COUNCIL ― 22 March 2017

DEPUTY PRESIDENT (in Cantonese): Please continue with your speech.

MR LEUNG KWOK-HUNG (in Cantonese): Yes, are we discussing the Budget today? Why is Financial Secretary Paul CHAN absent?

DEPUTY PRESIDENT (in Cantonese): We are now discussing the proposed resolution under the Public Finance Ordinance.

MR LEUNG KWOK-HUNG (in Cantonese): Isn't Financial Secretary Paul CHAN responsible for applying to the Legislative Council for funds on account? He is the supervisor of Secretary Prof K C CHAN, if he does not attend the meeting, he cannot hear our views.

He is simply playing "magical financial tricks" just like what John TSANG did. In fact, whoever becomes the next Chief Executive will play the same trick as dogs eat the same stuff. Deputy President, have you read the Budget carefully? He uses $20 billion to encourage sports development. Mr CHAN Chi-chuen, how many votes does the sports sector have in the small-circle election? He also spends $30 billion on setting up various funds under different high-sounding names, such as funds for the elderly and for poverty alleviation, etc. In other words, he does not give cash handouts after making wrong estimation or carry out a substantive reform but he concocted that efforts will be made in the future. Deputy President, some may say that the Government is credible and it will certainly do what it said; yet, such a situation has emerged.

First, the Government has in the past always wanted to introduce mandatory medical insurance, or commonly known as the "mandatory medical fund", and has allocated $50 billion. How has the money been used? During the filibuster staged by me in 2014 or 2015, the Financial Secretary responded to my question and said that he would listen to the views of "Long Hair" and allocate $50 billion for a retirement fund in the future, which is euphemistically called universal retirement protection. LEUNG Chun-ying called it a retirement fund because he loved playing with words; he said that a fund should be set up for retirement while we have been fighting for universal retirement protection. He has allocated $50 billion to deal with my request.

LEGISLATIVE COUNCIL ― 22 March 2017 5329

Deputy President, what has happened to the $50 billion? Nobody knows its whereabouts and it may have been used for offsetting. When LEUNG Chun-ying asked employers to make concessions and accept his so-called proposal to abolish the offsetting arrangement, Paul CHAN earmarked a sum of money to reduce the burden on employers. Buddy, he plays magical tricks. He plays magical tricks on $50 billion in hand.

In 2011, John TSANG gave out money arbitrarily; he transferred money to Mandatory Provident Fund accounts and members of the public could only retrieve money when they were in their twilight years. We hurled a banana at him and the pro-establishment camp berated him. At that time, Paul CHAN was not a member of the Executive Council. One day when all those members took a picture together, even Regina IP made sure that she appeared in the picture. However, as Paul CHAN's position was not high enough at the time, he did not appear in the picture.

Paul CHAN only gives out some $30 billion this year. The $50 billion are just like flour in a dough; we do not know if the flour is used for making deep fried dough sticks or salted pancakes, and we also do not know if the dough is being deep fried in the wok; perhaps it is not used for making food. Deputy President, how sad it is! For this reason alone, I think we should not allocate funds; the problem is that he does not know how many people in Hong Kong are waiting for their turn to get a share. The Community Care Fund for the "five have-nots" is actually a fund of indifference. We have got it right. The Community Care Fund has become a fund of indifference and seclusion, it has hidden away and lived in a hermitage. Should we allocate funds? Will we do so willingly?

Deputy President, cats which can catch mice are good cats, and good cats know the whereabouts of mice and their eating habits, so that they can use their claws to catch mice. What are mice most afraid of? Cat's claws. Mice immediately kneel down when they see cat's claws. I am going to filibuster so that the whole Budget cannot be passed. For me, I will only pass the Budget if universal retirement protection can be provided while other Members may ask for minor patch-up. I do not know the views of the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") and the Hong Kong Federation of Trade Unions, but if we do not take that action now, when should actions be taken. As we can see, the Chief Executive candidates seem to change their nature suddenly; even Justice WOO visited Wong Tai Sin. All of them are concerned about the grass roots. Deputy President, has DAB engaged in such 5330 LEGISLATIVE COUNCIL ― 22 March 2017

"pimping" activities? It is now a popular practice. We should follow the trend and ask Paul CHAN to pay district visit and see if anyone lacks money for meals. Buddy, while you fear that the Government does not have money to spend, do you fear that ordinary people do not have money to spend?

Deputy President, the Government spends tenfold of money on tax rebates and rates refund each year. As for the poor, public housing tenants will not be provided with one-month rent waiver this year. As such, households of subdivided units will not get any concessions, so the Community Care Fund will not offer assistance to those living in subdivided units. How can they utter such words? A person will die if he does not have any water to drink but he will not die if he does not have any wine to drink. I am very clear about that because I like drinking wine a lot. This is inhumane and insensitive. Throughout the years, I have always criticized John TSANG for being insensitive but I can hardly imagine that Paul CHAN is the same. To be honest, LEUNG Chun-ying has identified a wrong person; Paul CHAN is an accountant and he similarly will only be discreetly calculating. Buddy, it is simply a waste of time for him to serve as the Financial Secretary.

Hence, let me advise Honourable colleagues, if you really want to do something for Hong Kong people, do not pass the motion. If there is a lack of quorum later on, will the Government not discuss the details? The cat's claws will then catch the mouse's head, right? Cats will not ask mice not to run and tell the mice that they are good friends. Deputy President, will anything like this happen in this world?

On this critical point, we filibustered from day one and I will certainly filibuster this year. This is no question about that since the incumbent Chief Executive and the Chief Executive candidates said that universal retirement protection will not be implemented. Five years ago when I was fighting for universal retirement protection, although I was being ridiculed, I kept on fighting and I believed that my efforts would not be in vain. As it turns out, DAB was right in saying that this could not be done. Never mind, the most important thing is that we should not give up and we should not forget our original intent; we should not accept "lesser evil" or pocket the four-tier system first.

Deputy President, I hope that Honourable colleagues who want to do something for Hong Kong people will go with the stream, and while President XI is dozing off, they should stop the SAR Government from throwing $50 billion into the sea or giving a 10-time tax rebate. It should instead give money to the LEGISLATIVE COUNCIL ― 22 March 2017 5331 poor, and should not deprive households of subdivided units of electricity charges subsidy. The Government should not make children's lives so miserable, subjecting them to Territory-wide System Assessment then and Basic Competency Assessment now. We have to exert pressure on the Government by disapproving the Vote on Account. When the Government is "starved", it will bow down, right?

Deputy President, I am giving an advance notice that we will soon start filibustering. But if we sit down, have a cup of tea and some bread, and we may get some unexpected results. When the Government has no money to spend, it is forced to eat humble pie.

I so submit.

DEPUTY PRESIDENT (in Cantonese): Does any other Member wish to speak?

(No Member indicated a wish to speak)

DEPUTY PRESIDENT (in Cantonese): If not, I now call upon the Secretary for Financial Services and the Treasury to reply. The debate will come to a close after the Secretary has replied.

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): Deputy President, simply put, funds on account is an essential mechanism. I hope Members will support this motion to enable the Government to carry on its public services with the resources needed between the start of the financial year on 1 April 2017 and the time when the Appropriation Ordinance 2017 comes into operation.

Thank you, Deputy President.

DEPUTY PRESIDENT (in Cantonese): I now put the question to you and that is: That the motion moved by the Secretary for Financial Services and the Treasury be passed. Will those in favour please raise their hands?

(Members raised their hands)

5332 LEGISLATIVE COUNCIL ― 22 March 2017

DEPUTY PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

Mr Frankie YICK rose to claim a division.

DEPUTY PRESIDENT (in Cantonese): Mr Frankie YICK has claimed a division. The division bell will ring for five minutes.

(While the division bell was ringing, THE PRESIDENT resumed the Chair)

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Will Members please check their votes. If there are no queries, voting shall now stop and the result will be displayed.

Mr James TO, Mr Tommy CHEUNG, Prof Joseph LEE, Mr Jeffrey LAM, Mr WONG Ting-kwong, Ms Starry LEE, Mr CHAN Hak-kan, Mr CHAN Kin-por, Dr Priscilla LEUNG, Mr WONG Kwok-kin, Mrs Regina IP, Mr Michael TIEN, Mr Steven HO, Mr Frankie YICK, Mr WU Chi-wai, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Charles Peter MOK, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Mr Kenneth LEUNG, Ms Alice MAK, Mr KWOK Wai-keung, Mr Christopher CHEUNG, Dr Helena WONG, Dr Elizabeth QUAT, Mr Martin LIAO, Mr POON Siu-ping, Dr CHIANG Lai-wan, Ir Dr LO Wai-kwok, Mr Andrew WAN, Dr Junius HO, Mr HO Kai-ming, Mr LAM Cheuk-ting, Mr Holden CHOW, Mr SHIU Ka-fai, Mr Wilson OR, Ms YUNG Hoi-yan, Mr CHAN Chun-ying, Mr CHEUNG Kwok-kwan, Mr HUI Chi-fung, Mr LUK Chung-hung, Mr LAU Kwok-fan, Mr KWONG Chun-yu, Mr Jeremy TAM and Dr YIU Chung-yim voted for the motion.

Mr LEUNG Kwok-hung, Ms Claudia MO and Mr CHAN Chi-chuen voted against the motion.

LEGISLATIVE COUNCIL ― 22 March 2017 5333

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

THE PRESIDENT announced that there were 50 Members present, 46 were in favour of the motion and 3 against it. Since the question was agreed by a majority of the Members present, he therefore declared that the motion was passed.

MEMBERS' MOTIONS

PRESIDENT (in Cantonese): Members' motions. Two proposed resolutions under the Interpretation and General Clauses Ordinance in relation to the extension of the period for amending subsidiary legislation.

First motion: To extend the period for amending the Air Pollution Control (Vehicle Design Standards) (Emission) (Amendment) Regulation 2017, which was laid on the Table of this Council on 22 February 2017.

I now call upon Mr Frankie YICK to speak and move the motion.

PROPOSED RESOLUTION UNDER SECTION 34(4) OF THE INTERPRETATION AND GENERAL CLAUSES ORDINANCE

MR FRANKIE YICK (in Cantonese): President, I move that the motion under my name, as printed on the Agenda, be passed.

At the House Committee meeting on 24 February 2017, Members decided to form a subcommittee to scrutinize the Air Pollution Control (Vehicle Design Standards) (Emission) (Amendment) Regulation 2017. To allow sufficient time for the Subcommittee to report its deliberations to the House Committee, in my capacity as Chairman of the Subcommittee, I move that the period for scrutinizing the subsidiary legislation be extended to 12 April 2017.

President, I urge Members to support this motion.

5334 LEGISLATIVE COUNCIL ― 22 March 2017

Mr Frankie YICK moved the following motion:

"RESOLVED that in relation to the Air Pollution Control (Vehicle Design Standards) (Emission) (Amendment) Regulation 2017, published in the Gazette as Legal Notice No. 24 of 2017, and laid on the table of the Legislative Council on 22 February 2017, the period for amending subsidiary legislation referred to in section 34(2) of the Interpretation and General Clauses Ordinance (Cap. 1) be extended under section 34(4) of that Ordinance to the meeting of 12 April 2017."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the motion moved by Mr Frankie YICK be passed.

PRESIDENT (in Cantonese): Does any Member wish to speak?

(No Member indicated a wish to speak)

PRESIDENT (in Cantonese): I now put the question to you and that is: That the motion moved by Mr Frankie YICK be passed. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(No hands raised)

PRESIDENT (in Cantonese): I think the question is agreed by a majority respectively of each of the two groups of Members, that is, those returned by functional constituencies and those returned by geographical constituencies through direct elections, who are present. I declare the motion passed.

LEGISLATIVE COUNCIL ― 22 March 2017 5335

PRESIDENT (in Cantonese): Second motion: To extend the period for amending the Copyright Tribunal Rules, which was laid on the Table of this Council on 1 March 2017.

I now call upon Ms Starry LEE to speak and move the motion.

PROPOSED RESOLUTION UNDER SECTION 34(4) OF THE INTERPRETATION AND GENERAL CLAUSES ORDINANCE

MS STARRY LEE (in Cantonese): President, at the House Committee meeting on 17 March 2017, Members decided to form a subcommittee to scrutinize the Copyright Tribunal Rules.

Members also agreed that I move a motion in my capacity as the Chairman of the House Committee to extend the period for scrutinizing the Rules to 26 April 2017, so as to allow sufficient time for scrutiny by the Subcommittee.

President, I urge Members to support the motion as set out on the Agenda.

Ms Starry LEE moved the following motion:

"RESOLVED that in relation to the Copyright Tribunal Rules, published in the Gazette as Legal Notice No. 29 of 2017, and laid on the table of the Legislative Council on 1 March 2017, the period for amending subsidiary legislation referred to in section 34(2) of the Interpretation and General Clauses Ordinance (Cap. 1) be extended under section 34(4) of that Ordinance to the meeting of 26 April 2017."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the motion moved by Ms Starry LEE be passed.

PRESIDENT (in Cantonese): Does any Member wish to speak?

(No Member indicated a wish to speak)

5336 LEGISLATIVE COUNCIL ― 22 March 2017

PRESIDENT (in Cantonese): I now put the question to you and that is: That the motion moved by Ms Starry LEE be passed. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(No hands raised)

PRESIDENT (in Cantonese): I think the question is agreed by a majority respectively of each of the two groups of Members, that is, those returned by functional constituencies and those returned by geographical constituencies through direct elections, who are present. I declare the motion passed.

PRESIDENT (in Cantonese): Debate on motion with no legislative effect. The motion debate on "Giving full play to the edges of local tourism resources".

Members who wish to speak in the motion debate will please press the "Request to speak" button.

I now call upon Mr YIU Si-wing to speak and move the motion.

GIVING FULL PLAY TO THE EDGES OF LOCAL TOURISM RESOURCES

MR YIU SI-WING (in Cantonese): President and Honourable colleagues, the tourism industry is an important pillar industry in Hong Kong. It brings benefits to many industries and increases employment opportunities for the grass roots. Tourism is also a lifestyle which enables people to admire beautiful scenery and broaden their horizons, so as to bring happiness to their personal lives. With the advancements in transport and the information boom on the Internet, the modes of tourism have started to undergo noticeable changes.

LEGISLATIVE COUNCIL ― 22 March 2017 5337

Here, I try to classify tourists into three categories by travel purpose and consumer behaviour. The first category consists of traditional tourists who are older, or mostly travel with their families. They tend to visit many destinations within a short period of travel, and are generally satisfied as long as they can do some casual sightseeing upon their arrival at the destinations.

The second category consists of members of the new generation who have grown up in the Internet era. Netizens are able to know what is going on around the world without leaving their homes. They are used to acquiring and sharing information on destinations through the Internet, and are interested in what the destinations offer in terms of special tourist attractions, culture, food and drinks, entertainment, and so on, hoping to get first-hand experience of local folkways and customs. As recently pointed out by Copenhagen's official body for tourism promotion when it unveiled its development strategy for 2020, a new-generation traveller seeks not the perfect still picture to take home, but the emotional connection to an instantly shared experience based on interests, relations and authenticity.

The third category, which is less talked about, consists of our local tourists, that is, Hong Kong people. This category of tourists is often overlooked when we discuss the composition of visitor sources of the tourism industry. In fact, the success of many tourist attractions was initially driven by local demand before they gradually became popular and found favour with foreign tourists. Take for example Japan, which we are familiar with. Many tourist attractions in Japan were promoted overseas only after they had satisfied the demand of local people and after their ancillary services had taken shape. Some of the tourism projects there even rely on local people. A typical case in point is Tokyo Disneyland, with domestic tourists accounting for over 90% of the total attendance. So, when considering tourism planning, the authorities should also take into account the needs of Hong Kong people. The Lantau Development Advisory Committee has recently incorporated recreation and leisure into its study of tourism planning. This is a correct and wise move.

In the light of this, when devising forward-looking tourism strategies, the Government must not focus only on meeting the traditional demand of the tourists in the first category while ignoring the needs of the tourists in the second and third categories. Today, in moving this motion, I hope that the authorities can break away from the traditional concept of tourism planning, leverage the edges of local tourism resources, embrace the changes in the existing consumer base, and provide new visitor sources and impetus for Hong Kong's tourism industry.

5338 LEGISLATIVE COUNCIL ― 22 March 2017

(THE PRESIDENT'S DEPUTY, MS STARRY LEE, took the Chair)

In retrospect, it can be said that the development of Hong Kong's tourism industry over the past 10-odd years has benefited from three factors, namely good timing, geographical convenience and harmonious human relations. Thanks to the Central Authorities' policy of expanding the Individual Visit Scheme, as well as Hong Kong's own tourism resources and its strength as a shopping destination, Hong Kong saw a golden period of inbound tourism from 2004 to 2014 with a continuous and significant growth in visitor arrivals, which rose from 21.8 million in 2004 to a peak of 60.83 million in 2014, representing a nearly twofold increase. In that period, however, the Government failed to make corresponding adjustments to ancillary services to address changes in market demand. This has led to a series of problems, causing the development of our tourism industry to hit a bottleneck.

The first problem lies in the Government's complacency and lack of long-term planning. Over the past 10-odd years, the Government has only been complacent about the continuous growth in visitor arrivals without conducting any in-depth study of the changes in the composition of inbound visitors or any serious assessment of Hong Kong's receiving capacity. It has also failed to take adequate measures against our rivals in the region, and there has been a lack of long-term planning for tourism development.

The second problem is that the Government has focused on investing in major tourist attractions but given little weight to tapping local tourism resources. Regarding the development of tourist attractions, the Government has obviously focused on investing in major ones. In recent years, almost $20 billion has been committed to the expansion of Ocean Park and Disneyland. By contrast, when it comes to other local tourism resources, there has been a clear lack of investment in hardware facilities and ancillary support for software tourism services. Our policy departments in charge of tourism have even refused to provide free guided tour and tourism ambassador services on the pretext of having no budget, while these services are regularly provided in the communities and tourist attractions of certain countries. Our training and accreditation systems for tour guides are stuck in a rut. The authorities have failed to make professional classification of tour guides to address changes in visitors' needs, leading to varying standards of our tour guide services.

LEGISLATIVE COUNCIL ― 22 March 2017 5339

The third problem is the lack of coordination and connection among tourism-related projects. At present, the regulation of the tourism industry, the development of major tourist attractions and the publicity or promotional funding for tourism are within the purview of the Tourism Commission under the Commerce and Economic Development Bureau, but the powers to lead the operation of many local tourist attractions are scattered across the portfolios of different Policy Bureaux. There are many examples of this: country parks and geoparks fall under the purview of the Agriculture, Fisheries and Conservation Department; Kai Tak Fantasy and the tourism-related planning for Lantau fall under the purview of the Development Bureau; district tourism resources such as museums, antiquities, monuments and the West Kowloon Cultural District fall under the purview of the Home Affairs Bureau.

As different Policy Bureaux have their respective purview and do not want to overstep their bounds, they are unwilling to take the initiative to coordinate and solve practical problems. For instance, in the case of the Geopark, ever since the announcement that it was listed as a global geopark in 2011 by the United Nations Educational, Scientific and Cultural Organization ("UNESCO"), Hong Kong has been obliged to meet the requirements of UNESCO with respect to local engagement, improvement of rural livelihoods, science popularization and geotourism, but the follow-up actions taken by Hong Kong regarding ancillary services and publicity have been clearly inadequate. In UNESCO's assessment, Hong Kong has lost the most ground in its scores for "local engagement", nearly resulting in the removal of the Geopark from UNESCO's list. Obviously, if we had a Tourism Bureau, it would be responsible for the integration, coordination and deployment of tourism-related resources, in which case the tourism resources in various districts of Hong Kong would definitely be put to good use, and we would be able to prevent any embarrassing situation similar to the one concerning the Geopark as mentioned above.

Deputy President, the aim of giving full play to the edges of local tourism resources is not only to recommend Hong Kong's local culture and special tourist attractions to overseas tourists, but also to provide Hong Kong people with room for recreation and leisure, with a view to creating travel experiences with Hong Kong characteristics and a colourful variety of lifestyles.

In view of the needs of the aforesaid three categories of tourists regarding tourism products, as well as the problems facing us, I would like to make a few suggestions below:

5340 LEGISLATIVE COUNCIL ― 22 March 2017

Firstly, I suggest establishing an inter-departmental body responsible for coordinating and enhancing the tourism-related facilities in various districts. In addition to maintaining the competitiveness of the existing traditional tourism projects, the authorities should comprehensively collate the tourism resources scattered in different districts, and offer appropriate support in respect of ancillary facilities through coordination.

Take Tung Ping Chau for example. This island is part of the Geopark and is generally recognized as a unique tourist attraction in Hong Kong. However, as there has been no mains water or stable electricity supply on the island as yet, residents of the island have to collect rainwater and rely on electricity generators for power supply, and it is difficult for them to live there permanently. Despite the residents' vociferous calls, the problem remains unsolved, thus leading to the near-desolation of the island, which is a precious tourism resource. In the past, residents of Tung Ping Chau used the shale they obtained locally on the island to build distinctive houses, one of which has even been listed as a Grade 3 historic building of very high historical and conservation value. But now, due to the constraints of environmental policies, residents of the island can no longer obtain shale to repair the houses, let alone convert them into homestay lodgings to attract tourists.

Although Tung Ping Chau has become part of a global geopark, no improvement has been made to its facilities and accessibility. If even basic ancillary services are not up to scratch, any attempt to develop geotourism is bound to be futile. The Government should start by looking at tourism demand, collaborate with stakeholders in the local community on the premise that proper conservation should be conducted, and provide basic facilities through the implementation of favourable policies to enable people to take up residence on the island, while developing ecotourism to provide the residents with more business start-up and employment opportunities. Launching tourism projects with distinctive features based on historic and ecological revitalization is not only good for the enjoyment of the public and tourists, but also conducive to disseminating information about conservation and passing on history and culture. This is worth considering by the relevant government departments.

There are actually many similar examples. As Hong Kong has yet to set up a Tourism Bureau, I hope that the Government can study the establishment of an inter-departmental body first. It should, on the basis of feedback from all quarters, select several district development projects with tourism potential, and LEGISLATIVE COUNCIL ― 22 March 2017 5341 invest money to improve basic hardware facilities and refine ancillary services for such projects, including strengthening traffic arrangements, updating signage, increasing Wi-Fi hotspots and QR Codes, and setting up more tourist information centres, so as to progressively enhance the tourism facilities in various districts and upgrade Hong Kong's overall receiving capacity.

Secondly, the Government should attach importance to the opinions of the District Councils and stakeholders in various districts. At present, each of the 18 districts of Hong Kong has different tourism resources, some of which have already made their presence felt and are quite popular with tourists (such as Ngong Ping, Stanley, the Peak, Wong Tai Sin Temple, Hollywood Road in Central, and Cheung Chau), but some of which are still in want of enhancement in terms of ancillary facilities, promotion and publicity despite being well placed for development (such as Tung Ping Chau, which I have just talked about, Sai Kung, Lei Yue Mun, Sham Tseng, Sham Shui Po, Lam Tsuen in Tai Po, and Kai Tak Cruise Terminal). Many districts wish to boost employment and revitalize the economy through the development of tourism with distinctive features, yet they are worried that the growth in visitor numbers may get out of hand, causing nuisance to residents and undermining conservation efforts. The authorities can, through conducting surveys, take the initiative to collaborate with stakeholders in the districts according to priorities; seriously assess the tourism characteristics, traffic conditions and conservation capacities of different districts, as well as the extent to which local residents may be affected; and then, having regard to the characteristics of different districts, formulate tourism development plans for the districts in phases, and appropriately provide policy support and funding, with a view to developing district tourism in earnest after fully understanding the actual needs of different districts.

Thirdly, the Government should strengthen the pool of tour guides in Hong Kong. At present, there is only one type of licence for tour guides in Hong Kong, and the training of them is merely confined to general knowledge about guiding tourists and is certainly unable to cater for future market demand. The Government should encourage the industry to reform the current licensing regime by categorizing tour guide licences based on different tourist guiding professions. At the same time, additional funds should be allocated to provide different training platforms to progressively establish a pool of tour guides that can cater for different needs, so that tourists can get not only pleasure from their visits but also a better understanding of our unique local characteristics, Chinese and Western cultures, scenic spots and historic monuments from the introduction by tour guides, so as to know more Hong Kong stories from tourism.

5342 LEGISLATIVE COUNCIL ― 22 March 2017

Later on, I will seriously listen to the insightful opinions of Honourable colleagues, and then respond to them.

With these remarks, Deputy President, I move the motion.

Mr YIU Si-wing moved the following motion: (Translation)

"That benefiting from the expansion of the Individual Visit Scheme by the Mainland, the number of visitor arrivals to Hong Kong had been increasing continuously over the 10 years from 2004 to 2014, driving the development of Hong Kong industries such as retail, hotel, food and beverages and transport; however, the number of visitor arrivals to Hong Kong has been decreasing since 2015, which not only affects the revenues of some sectors of the tourism industry, but also produces ripple effect, causing adverse impact on many related industries, and further affecting the economic development and employment situation of Hong Kong; currently, while a number of tourist attractions which have been operated for years in Hong Kong are becoming less attractive, new tourist attractions with high development costs, such as Kai Tak Fantasy, the West Kowloon Cultural District and the expansion of the Hong Kong Disneyland, are all under planning and construction and some time is needed for their commissioning; the Government should make optimal use of local tourism resources, and integrate the features of traditional and new tourist attractions, so as to highlight the competitive edges of the tourism industry of Hong Kong, thereby attracting tourists with different consumption levels to come to Hong Kong for leisure travel and investors for investment, thus bringing a comprehensive recovery of the tourism industry; in this connection, this Council urges the Government to give full play to the edges of local tourism resources and promote a diversified culture with Hong Kong characteristics to boost the tourism industry; specific measures include:

(1) comprehensively collating resources with tourism values, including country parks, geoparks, museums, cycle tracks, historic buildings, intangible cultural heritage items and various events; and, based on the collation results, studying the establishment of an inter-departmental body to enhance the tourism-related facilities in various districts;

LEGISLATIVE COUNCIL ― 22 March 2017 5343

(2) after consulting District Councils and various local stakeholders, providing support in the light of the actual situation of tourism resources in local districts, so as to drive local economic development and increase employment opportunities; and

(3) allocating additional funding to formulate tourism promotion programmes with characteristics of Hong Kong local community, encouraging the relevant industries to join hands in developing new tourism products, and stepping up training for tourism industry practitioners, so as to promote the development of the tourism industry."

DEPUTY PRESIDENT (in Cantonese): I now propose the question to you and that is: That the motion moved by Mr YIU Si-wing be passed.

DEPUTY PRESIDENT (in Cantonese): Seven Members will move amendments to this motion. This Council will now proceed to a joint debate on the motion and the seven amendments.

I will call upon Members who move the amendments to speak in the following order: Mrs Regina IP, Mr WU Chi-wai, Mr Jeffrey LAM, Dr KWOK Ka-ki, Mr Michael TIEN, Mr Holden CHOW and Mr LUK Chung-hung; but they may not move the amendments at this stage.

MRS REGINA IP (in Cantonese): Deputy President, first of all, I thank Mr YIU Si-wing for moving the motion today to urge the Government to give full play to the edges of local tourism resources. Nevertheless, it surprised me that Mr YIU put forward a very important suggestion in his speech, urging the Government has to strengthen the coordination of various departments to give full play to the edges of local tourism resources. But how can coordination among different departments be strengthened without the establishment of a Tourism Bureau at a bureau level? Mr YIU has stated clearly in his motion and speech that coordination and collaboration should be enhanced in many aspects of the tourism industry of Hong Kong. For instance, in terms of hardware, Mr YIU has pointed out that there are many new facilities in Hong Kong, such as Kai Tak Fantasy, the West Kowloon Cultural District and the expansion of the Hong Kong 5344 LEGISLATIVE COUNCIL ― 22 March 2017

Disneyland, subject to the approval of the Legislative Council. There are other facilities which Mr YIU has not mentioned, for example, the commissioning of the Hong Kong-Zhuhai-Macao Bridge and the development of the Guangdong-Hong Kong-Macao Big Bay Area by the Mainland. What should Hong Kong do to dovetail with all these developments?

Moreover, some of the tourism hardware facilities in Hong Kong have become aged, for example, attendances at the Ocean Park and the Hong Kong Disneyland have been falling, and some new facilities in the neighbouring places, such as the theme park Chimelong Ocean Kingdom in Hengqin, have attracted many people. Does Hong Kong need any new investment? Singapore has made huge investment in building Gardens by the Bay and Marina Bay Sands as new landmarks, it has liberalized gambling―I certainly disagree―to attract many visitors. I think we should review whether our tourism hardware should be increased and enhanced.

In terms of software, Mr YIU has put forward many proposals on manpower, such as introducing a grading system of tour guides and stepping up training, etc. However, I think a Policy Bureau should be set up for direction and coordination. Deputy President, I think you are aware that at present, the Commerce and Economic Development Bureau is responsible for tourism. I fail to understand why Mr YIU, despite his many suggestions, has not proposed setting up a new Policy Bureau. I do not know if the Commerce and Economic Development Bureau has asked him not to do so. I think it is very important to set up a new Policy Bureau. At present, we have the Tourism Commission and the Commissioner for Tourism is at the rank of D6, if I am not mistaken. There is also a Permanent Secretary at the rank of D8 who is also responsible for tourism matters. In addition, the Hong Kong Tourism Board, a non-governmental organization, receives several hundred million dollars of public funding to carry out various promotional and publicity work.

However, there is room for improvement in all of the above mentioned areas of work. Let us review our tourism development in the past 10 years. Apparently, since the introduction of the Individual Visit Scheme ("IVS"), the number of visitor arrivals to Hong Kong has increased from 16.5 million in 2002 to the peak of 59 million with the implementation of multiple-entry Individual Visit Endorsements in 2015, and Mainland visitors accounted for more than 70% of our visitors. The huge number of Mainland visitors has brought business to the retail trade, hotels and the food and beverage industry. Apart from bringing LEGISLATIVE COUNCIL ― 22 March 2017 5345 substantial rental income, these visitors have really created many job opportunities for grass-roots workers. Nevertheless, the downsides are that the influx of visitors has distorted our economy to a certain extent, resulted in many cultural conflicts and affected the Mainland-Hong Kong relationship.

Since the multiple-entry Individual Visit Endorsements are replaced by the "one trip per week" Individual Visit Endorsements, the number of Mainland visitors has dropped significantly, directly affecting the retail trade of Hong Kong. As Members may know, the relevant figures have dropped continuously for 23 months. According to my understanding and as informed by some traders, the tourism industry is actually in dire straits now. Tourism in Hong Kong can be classified into inbound and outbound tourism. In 1990s when I was working in the Trade and Industry Branch, I was responsible for outbound tourism. IVS has not only affected the transformation of tourism in Hong Kong, but also its growth and decline to a great extent. Deputy President, we should also pay attention to a factor which is more important, namely, digital revolution, or the emergence of the Internet. If you ask people in the tourism industry, they will tell you that travel agents, run by a couple or a few people, which engage in hotel and air ticket booking for travellers are down in the doldrums. Just now, Mr YIU told us that there are three kinds of visitors. An increasing number of young people are travelling in the DIY mode. They will find information in the Internet to plan their trips and they will not patronize the conventional tourist agents, will they?

Moreover, the emergence of the Internet has dealt a blow to the hotel and guesthouse industry. Deputy President, I know that Airbnb has contacted you and I know that some members of your political party operate hotels and guesthouses. I believe you know very well whether Airbnb is operating legally. It is not. However, Airbnb told me that although it had fewer listings in Hong Kong than Taiwan, it derived more income from Hong Kong than Taiwan. In fact, Airbnb is very popular in Hong Kong. Many millennials like wave watching at Shek O. They stay in local residences secretly rented out by owners and upload their photos to Instagram, thinking that the lodging is cool. The hotel and guesthouse industry has complained to me, thinking that the Government should eradicate these homestay lodgings. But should we impose a total ban on homestay lodgings? Some people living in the New Territories indicated to me their wish that the Sha Tau Kok Frontier Closed Area be opened up and permission be given to them to start their homestay lodging business in their village houses to boost the economy.

5346 LEGISLATIVE COUNCIL ― 22 March 2017

In fact, the tourism industry and the retail trade have also been affected by the digital revolution and the Internet. Thus, we need to set up a new Policy Bureau led by an official with perspective and foresight to examine how the global economic and technological trends have affected the tourism industry of Hong Kong; how the industry should reposition itself under these global trends and map out its way forward; and how we should develop new tourism products for inbound as well as outbound tourism. On promoting outbound tourism, we have achieved outstanding results in obtaining visa-free arrangement for HKSAR passport holders, but our ranking in this regard has slipped recently because some places have done even better than us. If we want to promote outbound tourism, shouldn't the Security Bureau work harder in obtaining more visa-free arrangements for Hong Kong people to visit more places?

What new tourism products do we need? For example, how should we assist the Kai Tak Cruise Terminal in developing Hong Kong into the home port for more new routes and cruise vessels? As these efforts will bring higher economic returns, we really need an official at bureau level to head a new Tourism Bureau to examine the global economic, technological and tourism trends and assist the tourism industry of Hong Kong to develop new tourism products, make long-term manpower planning for the tourism industry and enhance the quality of service and knowledge of members of the industry.

Deputy President, during my visit to places such as Rome, Venice and Florence, I noticed that people with doctoral degree acted as tour guides. All of these tour guides are licensed, highly qualified and very well-paid. They take tourists to heritage sites and tell them the background of every piece of stone. As we have many monuments in Hong Kong, the Geopark and many historical remains from the Song Dynasty, we can develop cultural tourism too. Hong Kong will soon develop into a cultural hub which can attract more music lovers from Southern China, such as Xiamen, to come to attend our cultural activities.

Furthermore, we have to do a good job in promoting Hong Kong to China and abroad and polish up Hong Kong's image. I have watched some video clips produced by the Hong Kong Tourism Board on promoting shopping, dining and the natural environment. They are good, Deputy President, but I think they can be better. We need funding and new ideas for better publicity.

Nevertheless, introducing food trucks is not a new idea. It is actually a very outdated idea and food trucks do not sell authentic local food. The introduction of food trucks has kept relevant government department busy for LEGISLATIVE COUNCIL ― 22 March 2017 5347 some time on licensing matters, and I am worried that young operators of food trucks may incur losses of $1 million to $2 million. These are not forward-looking tourism products. Therefore, I think the Government should set up a Tourism Bureau at a bureau level.

MR WU CHI-WAI (in Cantonese): Deputy President, regarding this motion and its amendments, most Members have raised a point in common, that is, there should be diversified development for the tourism industry of Hong Kong. I agree to certain Members' proposal on exploring local characteristics and even promoting green tourism. However, apart from these kinds of traditional tourism products, I would like to put forward a new concept, namely adventure tourism.

I believe that many Members present have visited foreign countries for leisure travel. Apart from visiting specific tourist attractions, sightseeing and relishing delicacies, they must have joined various kinds of featured tourism activities with an element of adventure. Likewise, many foreign friends have formed groups to come to Hong Kong for leisure travel and hiking. That said, in recent years more neo tourism activities have been held in foreign countries. For example, in Indonesia, adventure programmes of walking through the tropical forests have been held in recent years. In Taiwan, apart from cycling around the island, more mountaineering activities have been introduced in recent years, with local tour guides taking visitors to national forest parks and residences of indigenous peoples. Such activities have an element of adventure, and enable visitors to better understand a place, have different types of experiences, and extend their duration of stay.

Hong Kong is well positioned to develop such tourism activities, especially in the light that our country parks, which are very important and precious tourism resources, account for some 40% of the land area of the territory. For this reason, apart from encouraging green tourism and inviting visitors to come to Hong Kong for hiking, we should further consider designing some tourism products by making optimal use of country parks, and enable visitors to come to Hong Kong for safe adventures. In fact, the suburban landscapes in many countries can also be found in Hong Kong. Blessed by nature, our country parks are not only situated in the vicinity of urban areas, but also offer different attractions, including mountains, rivers, seashores, waterfalls, fishing villages and temples. We have different types of environments and landscapes. For this 5348 LEGISLATIVE COUNCIL ― 22 March 2017 reason, to many people, country parks are very large and attractive grounds for adventures. Country parks offer the natural environment for developing adventure tourism.

In addition, Hong Kong's country parks are located in places with advanced telecommunication networks, so visitors will be able to seek help any time when they are in danger. This is the greatest difference between Hong Kong and other countries or regions that intend to promote adventure tourism. As regards the beautiful scenery of Hong Kong, we can offer attractive tour routes, and, through further promotion, enable visitors to enjoy such enchanting scenery in a very safe environment. As such, I think Hong Kong should capitalize on this competitive advantage, promote adventure tourism, expand the sources of inbound visitors, enable visitors to enjoy various types of experiences, and enhance their intention to visit Hong Kong again.

In fact, we have invested tens of billions of dollars in developing Hong Kong Disneyland, but if we merely spend an additional one tenth of the money, we will be able to achieve very desirable effect. Will we consider doing so? Of course, money is not a panacea and we need policy support even more. For this reason, I would like to lead Members to a very important subject, namely the abolition of various regulations and restrictions.

Our development of the tourism industry is actually subject to many laws and regulations. In the case of developing cultural tourism, nowadays many mobile applications can offer cultural tourism services, and certain mobile applications developed by Hong Kong can provide matching services for Hong Kong people to act as tour guides leading individual visitors to appreciate the authentic features of Hong Kong. However, queries have already been raised as to whether such services contravene the Travel Agents Ordinance. Furthermore, in the case of homestay lodging and Uber, many Hong Kong people who travel to foreign places already use such services, but in Hong Kong there are still grey areas concerning such services, which have even been ruled illegal. Given technological advancements nowadays, when we say we should make optimal use of technology and develop new tourism experiences, should we review the legislation correspondingly, so as to provide visitors with convenience on the one hand, and develop new tourism products and services on the other?

Apart from the technology-related problem mentioned above, there are actually many laws restricting the possibility of developing tourism products. Take for example the development of adventure tourism. The existing Country LEGISLATIVE COUNCIL ― 22 March 2017 5349

Parks Ordinance stipulates designated camp sites. In many cases such stipulation has nothing to do with environmental protection, but it definitely limits the venue choices of hikers and campers. They must camp at the designated camp sites, otherwise they will be prosecuted by the Agriculture, Fisheries and Conservation Department for illegal camping. Apart from camping, caravans also face similar problems. Last year, the court had differing views on whether caravan hire had violated the Hotel and Guesthouse Accommodation Ordinance. Are caravans subject to the regulation of any legislation? Does the Government encourage the development of caravan hire as far as its policies are concerned? Does the Government need to amend the legislation to promote such a tourism product? In any case, the Government must give an explanation, otherwise many practices that are common or popular in foreign countries are subject to various restrictions in Hong Kong due to laws and regulations.

I have enumerated these examples to enable Members present, government officials and the industry to consider the following question: When we propose the development of new tourism programmes, should efforts be made to abolish various regulations and restrictions and review the restrictions under the existing legislation? We must enable the legislation to dovetail with the development of new technologies and provide more room and greater flexibility for the research and development of tourism products, rather than merely focus on programmes such as developing new theme parks. I think this is a very important concept.

As regards the motion today, the Democratic Party mainly speaks from the perspective of diversifying tourism products, and proposes the idea of abolishing various regulations and restrictions, and promoting tourism with a new mindset.

Mrs Regina IP proposes "setting up a policy bureau dedicated to promoting tourism". Nowadays, the Hong Kong Tourism Board ("HKTB") and the Commissioner for Tourism take charge of tourism policy, but what about the effectiveness? Is it because of the relatively low level of HKTB that policy reviews cannot be conducted? Or are there any other reasons? Will the establishment of a Policy Bureau be able to address the problem of fragmentation of responsibilities and the situation in which different areas are subject to the regulation of different Policy Bureaux? Take for example the Innovation and Technology Bureau, which, according to the Government back then, would promote the momentous development of innovation and technology. The objective fact, however, is that technical difficulties or legal predicaments still cannot be resolved by a Policy Bureau.

5350 LEGISLATIVE COUNCIL ― 22 March 2017

For this reason, we agree that the Government should address this issue at a higher level, so as to abolish various regulations and restrictions. However, we are still doubtful whether the establishment of a Policy Bureau can achieve the said effect. The establishment of another Policy Bureau will, apart from seriously wasting resources, make it difficult to coordinate various Policy Bureaux at a higher level and review the legislation to abolish various regulations and restrictions.

Mr LUK Chung-hung proposes establishing a Tourism Bureau. May I ask what the differences between a Tourism Bureau and HKTB are? Will it be a Policy Bureau or a services unit? I believe that we need to make further reviews in this regard. That said, as we already have HKTB to take up similar tasks for the time being, we have reservations about the amendment concerned.

In addition, Mr Michael TIEN proposes focusing resources on the development of world-class tourist attractions. We certainly agree to the development of new tourist attractions, as I have specifically referred to the direction of developing adventure tourism products in Lantau. However, we should further disperse our resources to diversify our tourism products with different characteristics to cater for the needs in society or the market. As such, the development of diversified tourism is a more important subject. Mr Michael TIEN proposes in his amendment the idea of constructing a motor racing circuit. However, there is a big problem with this idea, that is, how we can strike a balance against the backdrop of tight land resources in Hong Kong.

Mr Jeffrey LAM's amendment proposes attracting more Mainland visitors to Hong Kong, but he has not proposed any specific method. In fact, as there are grave concerns in society about increasing the number of visitors under the Individual Visit Scheme ("IVS") and the applicable cities of the scheme, do we have adequate room and ancillary facilities to cope with the increase in visitors? Over the past several years, IVS visitors have given rise to many controversies in Hong Kong society. For this reason, we have doubts as to whether this proposal will run counter to the existing policy on restricting the number of IVS visitors to Hong Kong.

Finally, I agree that we should make more effort to solicit visitors from the international community in the future. However, (The buzzer sounded) … before air traffic control is properly addressed, the Government needs to give a further account of the construction of the third runway.

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DEPUTY PRESIDENT (in Cantonese): Mr WU, your speaking time is up.

MR WU CHI-WAI (in Cantonese): Thank you, Deputy President.

MR JEFFREY LAM (in Cantonese): Tourism is an important pillar of Hong Kong's economy, but our tourism industry is now facing a serious challenge. Last year, Hong Kong's total visitor arrivals had a year-on-year decrease of 4.5%, and the Hong Kong Tourism Board ("HKTB") predicted that this year's visitor arrivals will drop further by 2.2%, which is pretty worrying.

Hong Kong's tourism industry used to enjoy very unique advantages, but how come this Pearl of the Orient is losing its lustre? I think this is attributable to a number of internal and external factors. In addition to competition from neighbouring cities, there have been great changes in the travel pattern of Mainland visitors in recent years. There is also the factor of exchange rate movements. And yet, the most important reason is the intensifying political conflicts in Hong Kong in recent years and the escalating tension between the Mainland and Hong Kong. Some people even have the mentality of driving Mainland visitors away, which has discouraged many tourists from coming to Hong Kong. The local tourism industry has taken the brunt.

In my opinion, the SAR Government must find a solution to reverse the decline in visitor arrivals to Hong Kong. On the external front, the Government must respond to the unfavourable factors for the tourism industry, such as uncertain external economy and depreciation of currencies of the neighbouring areas, etc. On the internal front, we must open up more visitor sources, develop new tourist attractions and tours with special features as well as improve the tourism complementary facilities.

Deputy President, visitors under the Individual Visit Scheme ("IVS") are very important to Hong Kong's tourism industry. The Business and Professionals Alliance for Hong Kong ("BPA") has all along advocated enhancing the IVS policy to attract more quality visitors to Hong Kong. There are currently about 80 million Chinese passport holders, among them about 20 million are holders of e-passports. As they are generally wealthier and have more travel experiences, they are precisely our target visitors. Therefore, BPA suggests developing e-visa. At the initial stage, e-passport holders from the 5352 LEGISLATIVE COUNCIL ― 22 March 2017 existing 49 IVS cities are allowed to come to Hong Kong under IVS via online application, with a view to gradually extending this arrangement to other cities. This will, on the one hand, enable the relevant Mainland authorities to regulate anytime the number of visitors to Hong Kong through the electronic system in the light of our receiving capacity, which is more flexible than the existing IVS policy, and on the other hand, provide convenience to Mainland residents who are interested to come to Hong Kong under IVS, thereby achieving a win-win situation.

Deputy President, at present, many countries have already extended an olive branch to Mainland visitors by relaxing the visa requirements to facilitate inbound Mainland visitors. As at June 2016, 56 countries and regions have granted visa-free access or visa-on-arrival to Mainland visitors. During last year's National Day Golden Week, Hong Kong was no longer one of the top 10 tourist destinations for Mainland visitors. If Hong Kong still fails to make amends and improves the immigration policy of Mainland visitors, or even continues to condone the actions of some radicals to drive Mainland visitors away, not only will Hong Kong lag behind others, but will also deal a blow to the overall development of our economy in the long run.

Although the SAR Government has given more impetus to spearhead the construction of the West Kowloon Cultural District, Kai Tak New Development Area and Lantau Island over the past few years, distant water cannot put out a nearby fire and it would take some time before the long-term policies can bear fruit. In my opinion, the Government should strengthen the support for HKTB, speed up the promotion of cultural tourism and eco-tourism as well as host more events to build up Hong Kong's diversified tourism image.

In fact, as a city where Eastern and Western cultures co-exist harmoniously, Hong Kong has many precious tourism resources and a profound cultural heritage. It can be said that Hong Kong is an important window for cultural interaction between East and West. I suggest that the Government should collate information and articles relating to the traditional industries of Hong Kong, such as jade, arts and crafts, the pawn industry, and then earmark a site for setting up a "historical and cultural village" as well as provide comprehensive transport link and infrastructure support. It is believed that this will attract more visitors who are eager to have a taste of different cultures.

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Apart from sightseeing, convention and exhibition are also important aspects of Hong Kong's tourism. Convention and exhibition tourism has immense development potential. Between 2007 and 2014, the global Meetings, Incentive Travels, Conventions and Exhibitions market had recorded a growth of 37%, and its market share in business tourism was 54% in 2014. It is estimated that the annual growth of business travellers from the Asia Pacific region is 5.1% and 3.7% for 2010-2020 and 2020-2030 respectively.

Last year, benefiting from the numerous large-scale convention and exhibition projects being conducted in Hong Kong, overnight arrivals rose by about 9.9%, but the supply of convention and exhibition venues in Hong Kong is very tight. This problem has been plaguing the industry and will certainly affect the long-term development of the industry. As the expected commissioning of the Hung Hom to Admiralty section of the Shatin to Central Link will be in 2021, it is believed that there is still a long way to go before the topside development of the new convention centre at the Exhibition Station actually breaks ground. In this year's Policy Address, the Chief Executive put forward a proposal of the comprehensive development of the Wan Chai Sports Ground, which includes the construction of convention and exhibition venues. However, even if the political disputes can be settled, the project will only commence in 2019 at the earliest. BPA hopes that the Government will share the industry's sense of urgency and expeditiously carry out the relevant study and procedures. We also propose to build a large conference center in Kowloon so as to attract more conventions and exhibitions to be hosted in Hong Kong.

Deputy President, in order to promote tourism, Hong Kong must continue to enhance our advantage as an international aviation hub. As an international business and financial centre, Hong Kong must remain competitive and immediately catch up to meet the demand for stands and runway slots for general aviation and business aviation flights. In light of the imminent saturation of the Hong Kong International Airport, the Government should build the third runway and the associated airport facilities as early as possible, and expeditiously decide on the way forward upon completion of the third runway, including how to capitalize on the opportunities offered by the Belt and Road Initiative to increase flight routes to enrich the visitor sources. Following the rapid development of the Pearl River Delta Region and neighbouring countries, such as Singapore, Hong Kong should absolutely not fall behind and helplessly watch our business travellers leave for good.

5354 LEGISLATIVE COUNCIL ― 22 March 2017

Deputy President, as we can see, in the midst of uncertain external economy and volatile global stock market, it is impossible for Hong Kong, which is an externally-oriented economy, to remain unaffected. In recent years, international investment institutions and local economic experts have warned that the outlook of Hong Kong's economy is subject to downside risks, and a period of economic recession might begin. Tourism has all along been one of the four pillar industries of Hong Kong, so in order to strengthen our economy, we must create favourable conditions for the tourism industry. We must conduct comprehensive review and formulate plans in respect of the immigration policies for Mainland visitors, build new tourist attractions, and develop infrastructure facilities, etc., with a view to opening up new horizons for local tourism. The amendment that I proposed on behalf of BPA has precisely included these few areas, so I hope Honourable colleagues will support it.

All in all, I agree with the points stated in the original motion concerning the lack of tourist attractions and the optimal use of tourism resources, and I support the amendments proposed by Mrs Regina IP, Mr Holden CHOW and Mr LUK Chung-hung. However, I do have reservation about Mr WU Chi-wai's proposal to concentrate the development of major economic infrastructure and tourism in North Lantau, and disagree with Dr KWOK Ka-ki's remarks on the IVS policy, which I think is too biased. As for Mr Michael TIEN's criticism over the efforts made by the Government in promoting tourism, I do not totally agree with him.

Deputy President, I so submit.

DR KWOK KA-KI (in Cantonese): Deputy President, first of all, I would like to thank Mr YIU Si-wing for moving this motion today.

Just now I heard Mr Jeffrey LAM citing cases of visitors being impolitely treated. I suspect if his script was written two years ago because no one talk about this issue today. I believe most people of Hong Kong find that the present situation has improved greatly. Since the implementation of the Individual Visit Scheme ("IVS")―the brainchild of LEUNG Chun-ying who proclaimed to be the "father of IVS"―in 2003, many problems have arisen in Hong Kong over the past 10-odd years (especially after the implementation of the multiple-entry endorsement in 2009), such as powdered formula running out of stock, "doubly non-permanent resident babies", as well as incessant conflicts between parallel LEGISLATIVE COUNCIL ― 22 March 2017 5355 goods traders and local residents in the North District. With respect to the economic benefits brought by Mainland visitors to Hong Kong, I think statistics will tell a true picture.

On the whole, while the tourism industry is one of the four economic pillars of Hong Kong, the economic benefits generated by it are not really that big as many people have claimed. The industry only accounts for about 5% of our GDP. Practitioners of the industry represent 7.2% of the total working population, a rather high percentage. However, after years of extensive development of the tourism industry, especially the development of economy and people's livelihood driven by IVS and parallel goods trading in the past, how many Hong Kong people have truly be benefited? That is a big question.

In respect of employees' salary level, in 2013 the hourly wage rate of practitioners in the tourism industry was $57.5, $51.9 for employees of travel agencies, $46.8 for employees in the hotel industry, $40.9 for those in the retail industry and only $37.2 for those in the catering industry. The extensive economic development brought by IVS has only benefited very few people. Those reaping the most benefits are owners of shops in the popular tourist areas such as Russell Street in Causeway Bay and Tsim Sha Tsui that sell gold ornaments or watches costing several ten thousand to several million dollars apiece. Property developers are also the great beneficiary. Most frontline employees have little benefits but the price paid is great, especially for those who live in relatively remote districts with rampant parallel goods trading activities, such as the North District, and certain areas in Fan Ling and Sha Tin. They have to bear the brunt of rising rents and commodity prices, as well as the gradual closure of many shops in their neighbourhood. Therefore, if we still lament over the extensive growth in the tourism industry brought by IVS in the past and feel nostalgic about it, we are out of touch with the people's views and such attitudes will not foster the healthy development of Hong Kong's tourism industry.

All of us have travelled abroad to places such as Paris in France and London in the United Kingdom. We visit those places not because we are attracted by the big shopping centres but by the local tourist facilities, culture and history. For example I often go to countries such as Japan or Italy for leisure travel because I am attracted by the tourist attractions in those countries, particularly the sustainable tourist attractions, which I put forth in my amendment.

5356 LEGISLATIVE COUNCIL ― 22 March 2017

Pathetically, Hong Kong is promoting an "instant" economy. The drop in the number of IVS tourists is not entirely attributed to the so-called radical actions. The main reason is the anti-corruption campaign launched by "Emperor XI" and as a result, many corrupt officials and the "newly rich" in the Mainland dare not casually carry hundreds of thousands or even millions of Renminbi to Hong Kong to buy expensive watches because they may be arrested anytime when they return to China. Also, this kind of extensive development in tourism can be affected by many political factors. I believe Korea today and Japan earlier have a taste of the bitter fruit of their tourism policies being affected by politics. Seoul had once gained early-bird benefits with the influx of Mainland tourists, but owing to political factor concerning the deployment of the THAAD missile system, it suddenly has to swallow a bitter pill. Therefore, Korea, Japan and countries which have once received large numbers of Mainland visitors, such as Taiwan all say that they cannot rely on one single visitor source.

I hope that Mr Jeffrey LAM will make reference to the statistics. In fact, the number of inbound Mainland visitor increased 7.7% in January 2017 compared with that of last year. What worries us more is a reduction of non-Mainland visitors by 5.2% and other short-haul visitors by 4.6%. If this trend continues, the overall development of Hong Kong's tourism industry will be greatly impacted. In January this year, of the 4 350 000 inbound Mainland visitors, only 1 650 000 stayed overnight, but among the 1 121 000 non-Mainland visitors, 740 000 stayed overnight. As we all know, only overnight visitors can promote the development of high-quality tourism and I do not think low-quality visitors will bring great benefits to Hong Kong. Hence, please no longer make Hong Kong suffer from the evil consequences of making quick money and taking shortcuts.

Even though the Hong Kong Disneyland once attracted large numbers of visitors, it is now well evident that the Mainland Government no longer cares about our interests as a Disneyland was set up in Shanghai. Hong Kong people should be smart enough to realize that we cannot rely on one single tourist attraction such as the Disneyland. The Walt Disney Company will never be loyal to us. Its only concern is money. It may build a Disneyland in any Mainland city anytime and it does not mind building a few more theme parks, or even open up new tourist attractions in other Asian areas. Hence, I have great reservations over the unfair agreement of injecting an additional $5.8 billion into Disneyland.

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Regarding Hong Kong's attractions to visitors, apart from those Mainland visitors who come to Hong Kong for shopping or engaging in parallel goods trading, other visitors come to Hong Kong for our intangible cultural heritage, historic buildings, bazaars, the natural landscape in Tai O and Mai Po, and so on. I hope that the Government will not kill the goose that lays the golden eggs. It should stop destroying our natural landscape, such as installing a cable car system in Tai O or providing low-end tourist attractions in Lantau Island, such as a spa centre that only attracts a minority of people since such facilities can be found in many places. The most important tourist attraction in Hong Kong is the 20-odd country parks. The travelling time from the urban areas to the rural areas is very short. Moreover, we have abundant cultural characteristics.

Members may have the following experience when travelling abroad, as soon as we go into a hotel, we will find rows and rows of tourist pamphlets introducing various tourist attractions. But none of the hotels in Hong Kong adopts such a practice. All they recommend is the shopping malls. Why is our quality so low? The Hong Kong Tourism Board has received government funding amounting to billions of dollars, but how come the tourism industry still remains at the same level as that 10, 20 or even 30 years ago? Why not devise some special programmes, modeling on the practice of many overseas places? There are tours in Japan that guide visitors to different places. In our historic trails, we can provide guided tours not only in Chinese but also in English, Japanese and Korean. We can take visitors to some conservation places with special characteristics, and at such places, books in foreign languages can be provided, either free of charge or at a certain price. The Government should also subsidize these tourist programmes. We should not backtrack and should stop launching programmes that downgrade Hong Kong's status.

As regards the construction of the third runway at the airport, Members should note that if the tourist facilities can be improved with $100-odd billion, or if setting up a new Policy Bureau as advocated by Mrs Regina IP can resolve the problem, Hong Kong might as well establish a universal suffrage bureau to immediately implement election by universal suffrage. Setting up a new Policy Bureau simply cannot resolve the problem. We must understand that if the Government does not have the heart to resolve the problem, the mere creation of a few high-ranking posts offering an annual salary of a few million dollars will never work. I believe that Mrs IP, who served as a civil servant for many years, will not possibly be unaware of this fact. Hence, I hope that we have the chance today to set wrong things right and promote sustainable tourism. These are my remarks.

5358 LEGISLATIVE COUNCIL ― 22 March 2017

MR MICHAEL TIEN (in Cantonese): Deputy President, I would like to thank Mr YIU Si-wing for moving the motion. First of all, I would like to declare my interest. I am in the clothing retail industry and have nothing to do with the motor racing industry. To be frank, the Government has done a lousy job as far as the development of the tourism industry is concerned. I mean it from the bottom of my heart, and I am not being funny or sarcastic.

As I often hear, for dating young couples nowadays, there are 10 most common things they would say to each other, with the first one being, "Though this is the first time we meet, it seems that I have known you for ages!" The second one goes like this: "You are not the same as before!" The third one is something they would say to themselves silently: "After all, you are not that special!" In terms of economics, it is the law of diminishing marginal utility at work, and the same can also be applied to the choice of travel destinations.

In their first visit to Hong Kong, visitors visited the Hong Kong Disneyland, making a lot of preparation beforehand; they visited the Ocean Park and had no qualms about riding the Ferris Wheel again and again, and they also took thousands of selfies against the same night scene. In their second visit to Hong Kong, nothing seems very special at all. That is why when they are planning for their third trip, Hong Kong will be way down the list of possible destinations. Deputy President, young people nowadays like to use the head-turning rate to judge if the male/female is attractive and appealing. By the same token, how much head-turning appeal Hong Kong has for overseas visitors?

I have been paying close attention to the work of the current-term Government in promoting the development of the tourism industry. It only has three tricks up its sleeve. Firstly, it will use the same tactic over and over again. For example, the Government is still constantly promoting attractions like "A Symphony of Lights", "XX Festival" or "YY Festival", and so on, and so forth. The prime site with spectacular view in front of our offices is used to host different events every week. As a result, there is construction and demolition of venue settings. Does it sound like the best way for using our land resources?

Secondly, the Government always resorts to limitless promotion. It will consider its work done so long as money is spent on publicity and promotion. Secretary, if your boss is incompetent, no good can be done even if the most powerful public relations strategy is deployed. But in the worst case, even the publicist is incompetent. Then Hong Kong people can do nothing but continue to suffer.

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Thirdly, the Government's approach is always "superficial". Earlier, the ePrix Formula E motor race was held in Hong Kong, which can be regarded as a major breakthrough. The two-day event attracted a total of 21 000 spectators, with some 70% being overseas tourists who visited Hong Kong especially for the race. Secretary, you should know these facts very well because you also like the event. But in the long run, is there any plan to host such major motor racing event in Hong Kong? On my part, I fail to see any grandiose plan being made by the Government.

(THE PRESIDENT resumed the Chair)

All in all, are these tricks useful? Have they been effective? If these tricks are really effective, Honourable colleagues from the pro-establishment camp would not have to lament over the current plight of the tourism and retail industries. Today, I only want to bring out one message: Should our vision and audacity in promoting tourism development in Hong Kong be limited to a few gourmet food trucks? In this regard, I will talk about all measures which I consider to be useful and effective.

As a matter of fact, the motor racing industry has been striving to construct a motor racing circuit in Hong Kong since 1994. When the Government proposed to develop tourism in Lantau more than a decade ago, the then Chief Secretary Henry TANG had considered the proposal to construct a multi-purpose motor racing circuit in a piece of land covering an area of 40 hectares in the Lantau Logistics Park. According to the estimates made by the industry at that time, the construction cost of the project was $500 million and 250 000 visitors would be attracted to Hong Kong each year to create economic benefits in the range of $1 billion. Those were the figures in 1994.

At that time, there was a box-office hit called Initial D, a film adaption of the manga series of the same name. I had seen the movie, and I could still recall the scenes to this day. No matter how little we know about motor racing, we can still remember the scenes about motor cars drifting through hairpins. At that time, more than 600 people from 40 groups placed an advertisement in the newspapers, demanding that a motor racing circuit be constructed in Hong Kong without any delay. But eventually, the Logistics Park proposal was aborted, and the proposal to construct a motor racing circuit was forgotten. Since then, more 5360 LEGISLATIVE COUNCIL ― 22 March 2017 than 10 years have passed. The industry has been striving for this project for 23 years. It is the same story as the constitutional reform as well as the tax reform. When we want the Government to do something, we would only end up waiting for decades in futile. So, we cannot say that only a particular public official is idling; perhaps the entire Government is also idling.

Our neighbouring rivals, including Macao, Japan, Taiwan, Korea and Malaysia, all have their own international motor racing circuits. We always like to compare Hong Kong with Singapore. Singapore has been hosting Formula 1 races at its 5-km circuit since 2008, and the three-day event attracts 250 000 spectators every year. The local tourism authorities even package the event into a 10-day gala festival called Singapore F1 Season, shown in the poster on my left hand side, together with other attractions such as beer festival and fashion shows. World-renowned performers such as Beyoncé and Katy Perry would be invited to provide entertainment to the spectators. I am greatly attracted by such names and really want to go and watch their live performances. I do not know if the Secretary has watched their performances before.

Hong Kong's small and medium enterprises ("SMEs") have been suffering for a long time. For this major motor race held in Singapore, about 80% of the works items are undertaken by SMEs. Secretary, what SMEs need most is actually not any exemption of fees and charges by the Government, but instead, business opportunities provided by the Government to help them move upwards.

President, even if our rivals have made a head start, it does not mean that we cannot catch up. As in the upcoming election, the candidate set to win the race is most probably the last person who starts the election campaign. As the motor race in Singapore is held in a temporary street circuit, there are many restrictions. But even so, it has become such a huge success. If Hong Kong has a permanent motor racing circuit, how can we lose out? As the saying goes, "Any start is a good start." How about the Government starts conducting a study for the proposal right now?

Money aside, talents are our most important asset, and they are priceless. I often hear young people complaining that Hong Kong is a place without dreams, particularly in respect of physical and aesthetic development. No matter how passionate and visionary our young people are, many are forced to bow to reality under a "three-nil environment", that is, without government support, without comprehensive supporting services and without development opportunities.

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There are 600 licensed racing motorists and motorcyclists in Hong Kong. Racers such as Darryl O'YOUNG and CHEUNG Wai-on have reached international standards and won many regional races. But when they participated in international races, their results are not as good. The reason is quite simple. When other racers train for five hours per day, Hong Kong racers can only train for five hours per week. If a multi-purpose motor racing circuit is built in Hong Kong, local racing motorists and motorcyclists will have a professional, top-class and state-of-the-art venue for training. I am confident that Hong Kong can obtain much better results so long as such a venue is available.

President, my dream is to construct a world-class motor racing circuit in Hong Kong with a 5-km long track. The entire race course, together with ancillary facilities, would span across an area of about 80 hectares and located away from residential areas. Ideally, it should be somewhere near the Hong Kong International Airport as no buildings are allowed to be built in the vicinity. I think Members should have already figured out which place in Hong Kong can fit the description perfectly.

The Sunny Bay reclamation project currently under planning by the Government is a windfall opportunity to realize this dream. For many people who are not car owners in Hong Kong, they may consider motor racing merely a pastime for the rich. But in fact, a motor racing circuit can also be used as a training ground for road racing cyclists. In other words, people can ride bicycles or attend races in a safe and professional venue. Members can have a feel of it by looking at the display board on my right hand side. Moreover, the motor racing circuit can also be used to hold track events. At present, the number of runners in the annual marathon race has been increasing. But, considering the disturbances caused by road closures to facilitate the holding of the marathon, how can more races be held in Hong Kong? If races can be held in the motor racing circuit, runners can finish a full marathon by running 10 laps, which I think is a viable option. If the race can be organized as a gala event together with nearby hotels, recreation areas and other ancillary facilities, I am sure it will become a tourist attraction with long-lasting appeal, unlike the Hong Kong Disneyland which requires constant upgrading through cash injection or new investment funds in order to attract visitors. Secretary, in Japan, the F1 motor races are held in the same circuit for 30 years, with hardly any need for new investment funds.

5362 LEGISLATIVE COUNCIL ― 22 March 2017

Hence, I would like to stress that when contemplating the development of tourist attractions in Hong Kong, the authorities should ensure that they are sustainable, long-lasting and multi-functional. Some people may think that my proposal is far from being popular. But at the Chief Executive election forum held last Sunday, the candidates were also asked if they supported the construction of a motor racing circuit in Hong Kong. After I made the suggestion in the Legislative Council earlier, many members of the public as well as fans of motor races and motorcycle races have come to set up meetings with me. One of the groups is an organization with over 40 000 members. Honestly, I have never received so many "likes" before. The industry will also hold a meeting around noon today to express support for my proposal.

President, I think the matter can brook no further delay. I demand that a study be undertaken by the Government immediately to construct a multi-purpose car park which belongs to Hong Kong and people of Hong Kong. It is only one of the many recommendations to consider. My point is that if the tourism industry is to develop in a sustainable manner, we must have sustainable tourist attractions with our own characteristics.

A moment ago, Mr Jeffrey LAM said that he did not agree with my amendment. I think Mr LAM has not paid attention to the details. My demand is that study should be undertaken for the development of tourist attractions, "including but not limited to" the said project. How can such a proposition be wrong? Does it mean that he is against the idea that the tourist attractions to be developed should be sustainable and not easily replaceable?

I sincerely call on Members to support my amendment. It is high time for Hong Kong to seriously consider developing some world-class tourist attractions which are sustainable. We should no longer adopt a superficial approach and seek to develop tourist attractions that are supposedly multi-functional, but end up being neither fish nor fowl. I hope Hong Kong can be remembered for its characteristics, that is, unique attractions which cannot be found in other major cities. For instance, if we have a permanent motor racing circuit, it will be an attraction which cannot be found even in Singapore. Finally, there is an area in which Hong Kong fares better than Singapore.

President, I so submit.

LEGISLATIVE COUNCIL ― 22 March 2017 5363

MR HOLDEN CHOW (in Cantonese): President, first of all, I would like to thank Mr YIU Si-wing for moving this motion today.

According to the United Nations World Tourism Organization, after decades of development, the business volume of international tourism today has surpassed that of oil exports, food products or even automobiles, and tourism has become one of the major players in international commerce. Thus, competition among tourism markets around the world has become increasingly keen, and the development of tourism has become increasingly diversified. However, in Hong Kong, the development of tourism over the past 10-odd years has failed to keep up with that development trend. Having analysed various factors holistically, I think the Government should make adjustments in three areas: first, it should foster a relatively proactive approach of governance; second, it should attach importance to passing on culture, history and the message of nature conservation; and third, it should enhance flexibility and innovation in systems and legislation.

President, in various countries around the world, developing the tourism industry is an important mission undertaken by large government departments. A case in point is the Singapore Tourism Board: apart from launching publicity and promotional campaigns, overseeing the regulation of the tourism industry and tapping tourism resources, it is also responsible for coordinating and planning the long-term development of the tourism industry, so as to enhance the quality of manpower and services as well as the level of innovation in the industry. As for the United Kingdom and the United States, they have respectively set up the Department for Culture, Media and Sport and the National Travel and Tourism Office under the Department of Commerce, which are responsible for formulating relevant long-term tourism development strategies.

Yet in Hong Kong, the Government has never drawn up any long-term strategic plans for our tourism industry. Over the past 10-odd years, our tourism development has, I believe, mainly relied on the Mainland's policy of expanding the Individual Visit Scheme. The Commerce and Economic Development Bureau, being in charge of our tourism affairs, has given more consideration to regulating tourism projects or the tourism industry. The scope of responsibilities of the Tourism Commission and the Commissioner for Tourism under the Bureau is comparatively narrow. As far as I can see, the Government has never taken the initiative to formulate a comprehensive tourism plan or a clear long-term tourism development blueprint for Hong Kong.

5364 LEGISLATIVE COUNCIL ― 22 March 2017

The Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") takes the view that the Government should actively consider upgrading the existing functions of the Tourism Commission and the Commissioner for Tourism, so as to enable the authorities to play a more proactive role in promoting tourism in the future, and formulate a long-term development strategy through which the competitiveness of the local tourism industry can be enhanced. For instance, President, the SAR Government has been rather indecisive in promoting the convention and exhibition industries over the past few years. As we all know, competition in the region has become increasingly intense. In 2014, the Government commissioned a consultant to assess the demand for convention and exhibition facilities in Hong Kong in the coming 15 years (until 2028). It was projected that the convention and exhibition industries in Hong Kong would grow at 2.2% per annum, and with the provision of additional venues to further develop these industries, the growth rate was estimated to reach at least 3.7% per annum. From this we can see that these industries will grow steadily.

I have personally approached some members of the local convention and exhibition industries, and learnt that the bottleneck facing these industries now is that while many overseas firms wish to hold conventions and exhibitions in Hong Kong, it is rather difficult for them to book a venue at the Hong Kong Convention and Exhibition Centre in Wan Chai or the AsiaWorld-Expo ("AWE"). So, in my view, the SAR Government should set short-, medium- and long-term goals that are beneficial to conventions, exhibitions and tourism. As far as venues are concerned, I believe that apart from constructing a new convention centre at the Exhibition Station, the Government should also closely monitor and watch the situation of AWE on Lantau Island, expeditiously study the feasibility of the Phase 2 expansion of AWE, and identify other suitable locations for providing new convention and exhibition venues. Our country is now pressing ahead with the Belt and Road Initiative. In the long run, with the economic take-off of the Belt and Road countries in the future, we will be able to attract more visitors from new sources for doing business in relation to conventions, exhibitions and tourism in Hong Kong. I am confident that we can definitely do this.

Besides, President, I suggest that we should tap new tourism resources. In fact, we can help as long as we can properly protect the many historic buildings or traditional cultures in Hong Kong. Some buildings of great historical value, such as the Central Police Station and Hung Lau at Castle Peak, can serve as tourist attractions. Also, the Government has now recommended that various LEGISLATIVE COUNCIL ― 22 March 2017 5365 techniques including the Hong Kong-style milk tea making technique and the traditional paper crafting technique be inscribed on the Representative List of the Intangible Cultural Heritage of Hong Kong. All these cultural and historical elements are readily available tourism resources.

It has come to my attention that traditional industries like paper crafting and Cantonese Opera are facing bottlenecks in the transmission of know-how. In my opinion, the Government can provide more support for these industries. DAB suggests that the Government should establish a "cultural transmission and development fund" to promote and transmit local culture, Chinese customs and traditional techniques, so as to facilitate young people's entry into the relevant industries. We should also encourage visitors to Hong Kong to experience our culture. For example, even if they will only stay in Hong Kong for a short time, they can still learn to make Hong Kong-style milk tea, do some arts and crafts, or learn some basic skills of Cantonese Opera. All these can constitute joyful and unique tourism experiences.

Another point I wish to make is about green tourism in Hong Kong. As everyone knows, Hong Kong has many scenic country parks and beautiful coastal landscapes, but some people may not know that for many foreign visitors, one of the important purposes of coming to Hong Kong these days is to go hiking or visit green attractions. So, green tourism is actually a big draw, and I think the Government should promote it more vigorously.

In addition, if the Government is determined to make a good job of tourism in Hong Kong, it must remove barriers and lift restrictions. There is really room for improvement and updating in our relevant legislation in terms of flexibility. Cases in point include Airbnb, a business that has recently become very popular worldwide as mentioned by an Honourable colleague just now, and caravans. President, caravans are worth discussing indeed. As I understand it, and as I mentioned at a meeting of the Islands District Council, some people are really trying to carry on the business of operating caravans at present, but they have been unable to figure out whether the business is subject to regulation under the Hotel and Guesthouse Accommodation Ordinance, whether they should obtain a licence, or how they can obtain a licence. This has led to a rather serious legal dispute, which I believe will discourage those who are interested in joining this trade. In this connection, I have looked at the example of the United Kingdom, where comprehensive legislation has been enacted to regulate matters relating to caravans, including their parking locations and their travelling speed on roads. 5366 LEGISLATIVE COUNCIL ― 22 March 2017

Some people may not know that the legislation of the United Kingdom stipulates that caravans should not carry people when travelling on roads. This is perhaps because the relevant authorities consider that such behaviour is rather dangerous and may cause road safety problems.

All such overseas examples show that it is necessary to develop a relevant piece of legislation based on the needs of a particular trade in order for the trade to truly keep up with the local development trend, thereby facilitating adaptation among people joining the trade. In Hong Kong, however, it is undeniable that we still do not have an up-to-date piece of legislation on tourism, and as a result, members of the tourism industry may not know what course to follow. In my view, the Government really should seriously examine and review this situation. President, I hope that through the amendment that I am going to move today, I can make people understand that there are, indeed, still a lot of things that the Government should do to develop the tourism industry properly.

Lastly, I would like to talk about one more point. I heard Mr Michael TIEN strongly recommend that the Government should construct an international motor racing circuit in Hong Kong or on Lantau Island, or explore the idea of developing mega events on this front in the future. As I see it, this is well worth exploring. I hope that the Government will (The buzzer sounded) also make efforts in this regard.

PRESIDENT (in Cantonese): Mr CHOW, please stop speaking.

MR LUK CHUNG-HUNG (in Cantonese): President, I thank Mr YIU Si-wing for moving today's motion, giving us an opportunity to discuss the direction of the future development of Hong Kong's tourism industry.

When I examine this topic, I try to consider from the perspective of a visitor in what way does Hong Kong attract or impress me, particularly a person who likes taking photos and travelling around the world. What special features does Hong Kong have that compel me to pick up my camera and capture the beautiful moment?

If I were a visitor, I would first stroll along Hollywood Road of Central and then have a cup of quality tea at Lin Heung Tea House. Then, I would walk through some distinctive side streets and alleys and pay a visit to the Former LEGISLATIVE COUNCIL ― 22 March 2017 5367

Central Police Station which has unique historical characteristics. Unfortunately, since the revitalization process of this former Police Station has yet to complete, it is not open to the public. Instead, I could move on to the nearby PMQ to take a look at the works of local artists and have a sense of the latest trends. I could also join some workshops to make some small souvenirs. After that, I could learn to cook the famous dishes of Sing Heung Yuen, a locally renowned "Dai Pai Dong".

After spending time at the urban area, how about making a trip to the suburbs? Instead of visiting the Ocean Park or Disneyland, which is quite boring, I prefer going to Hong Kong's "back garden", Sai Kung. In Sai Kung, the magnificent sea view at Sai Wan, the High Island Reservoir and the distinctive hexagonal rock columns at the Hong Kong National Geopark are some of the attractions. The long stretching beach at Ham Tin Wan is a romantic place for dating and a perfect location for taking pictures of magnificent landscapes similar to those found in the magazine National Geographic. Next, I would make a trip to Chek Keng to get a glimpse of the golden sunset. How exciting this is!

In fact, this itinerary is not designed by me, I obtain the information from the travel notes of travellers from around the world, whose experiences are different from the traditional visitors.

In the past few years, there have been changes in the trend of development of tourism. With more diversified online tourism products and the emergence of inexpensive flights, travelling abroad has become easier. People now have more enriched tourism experiences and veteran travellers may cherish more localized and in-depth experience. The traditional travelling mode of joining tours for casual sightseeing, take a few pictures at famous attractions, check in on Facebook and shop around can no longer satisfy the needs of these visitors.

Unfortunately, the over-reliance of Hong Kong's tourism industry on the Individual Visit Scheme ("IVS") in the past has resulted in an undesirable atmosphere within the tourism industry, which emphasizes quantity over quality, resting on laurels and making quick money as well as relying too heavily on a single source of visitors. As the Government and the industry failed to proactively promote upgrading and development, the tourism industry has become pretty sluggish in recent years. It is only when the cyclical downturn in recent years rang an alarm bell that we were aware of the need to find a way out.

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The Hong Kong Federation of Trade Unions ("FTU") has always attached great importance to the development of tourism as it can invigorate a number of industries, including hotel, retail, transport and catering, etc., and provide a large number of middle to elementary level job opportunities, which is very important to maintaining employment stability among Hong Kong people.

In the past, we relied too heavily on boosting tourism through retail and turned shopping spots into tourist attractions; consequently, Hong Kong has gradually turned into a huge shopping mall and to a certain extent, lost much of its attraction. This is evident from the figures. The attraction of Hong Kong as a venue for traditional shopping (Hong Kong as a shoppers' paradise) has declined drastically, and the per capita spending of visitors in 2015 recorded the first decline after rising for 10 consecutive years. Also, the value of sales of luxury goods such as jewelry, watches and clocks, has decreased by 15%.

In view of the consolidation of the tourism industry, we must learn a lesson from this bitter experience and proactively explore a new direction for the development of tourism.

We have to develop experiential tourism. Before the tourism industry entered into a period of consolidation, FTU has already put forward the idea of developing experiential tourism, urging the Government to follow the world trend and formulate policies, and in particular, put in resources to develop the local in-depth tourism, cultural tourism and green tourism, so as to attract different types of visitors to experience the social customs of Hong Kong and hence stay longer. For foreign visitors, the natural landscape of Hong Kong, the cultural heritage of the walled villages in the New Territories, local creative culture, trendy culture, as well as the East mixes West culinary characteristics, are great attractions.

In the Budget, the Government did partially respond to our demands for additional resources to further promote the diversification of tourism services, which include launching tourism projects with local characteristics and green tourism, but the relevant provision is only $17 million. President, as the Secretary may have heard, we do consider this the right direction, but the provision of the Government is just a drop in the bucket.

Contrarily, the Government has generously invested $5.8 billion on the expansion project of the Hong Kong Disneyland. Although this can also be considered an important tourism infrastructure, the treatment of the two is so LEGISLATIVE COUNCIL ― 22 March 2017 5369 different and is absolutely biased. We therefore urge the Government to consider increasing the provision, streamline the application process for the $17 million provision that I just mentioned and lower the threshold so as to attract the applications from more micro, small and medium enterprises, especially young people or non-governmental organizations, with a view to developing tourism projects with local characteristics.

Sometimes, government policies only "look delicious but are inedible" because of the high thresholds, or borrowing a catchphrase, they are "above the ground". I will use the recent food truck initiative as an example. I am not saying that the food served by the food trucks is of poor quality. I have patronized the food trucks many times and the food was delicious, but individual operators complained about difficult business operation, varied results, poor locations and lack of support. Worse still, the Government has set a lot of rigid rules, such as not even a small table or a stool is allowed to be placed next to the food truck. How can we successfully develop the tourism industry with so many restrictions and rigid rules? Therefore, we demand that the Government should actively develop tourism with distinctive features; be prepared to cut the red tapes, such as introducing grass-roots version of food trucks; setting up night markets and bazaars as well as lowering the application threshold.

President, the development of human resources, that is, tourism practitioners, is very important to the industry. All industries need talents, and the tourism industry is no exception. While the supply of quality and stable human resources is of paramount importance to the development of Hong Kong's tourism industry, tour guides and tour escorts are currently being unfairly treated. The problem of "false self-employment" is very serious and frontline employees cannot enjoy the legitimate protection of their rights over a prolonged period. As frontline employees do not even have the most basic labour insurance coverage and work injury compensations, they have a strong sense of being unfairly treated and are greatly frustrated. As a result, the tourism industry cannot retain talents, nor can it attract new blood. Consequently, the unscrupulous practices of a small minority of operators have undermined the image and development of the entire industry. The Panel on Economic Development of the Legislative Council has passed a motion urging the Government to, upon submission of the Travel Industry Bill, clearly regulate the employment relationships between travel agents and tourist guides, and between travel agents and tour escorts. However, it seems that the Government has remained indifferent. On the question of whether this Government Bill will have our full support, FTU needs to consider in a prudent manner.

5370 LEGISLATIVE COUNCIL ― 22 March 2017

President, I wish to highlight one point, in developing the tourism industry, we must take into account the receiving capacity of the community. We should avoid bringing unnecessary nuisance to the community and local residents, and carefully balance the needs and development of various parties. For this reason, we cannot support the amendment proposed by Mr Jeffrey LAM because an arbitrary expansion of the IVS policy at this moment may not guarantee that the tourism industry will develop towards the right direction. As for (The buzzer sounded) … the original motion and other amendments …

PRESIDENT (in Cantonese): Mr LUK, please stop speaking.

MR LUK CHUNG-HUNG (in Cantonese): … we will support them. I so submit.

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): President, since 2015, various sectors of society have showed concern about the decreasing number of visitor arrivals and the slowdown in tourist spending, as well as widespread debate over the development of Hong Kong's tourism industry. This is also the issue of gravest concern to colleagues of the Tourism Commission and the Hong Kong Tourism Board ("HKTB") and I.

I think Members present at the meeting and the community at large would agree that the development of tourism should not emphasize quantity over quality. A blind pursuit of rapid growth in the number of visitors is not only unrealistic, but will also bring about various problems such as the receiving capacity of the community.

Hong Kong's tourism industry has, since 2004, experienced 10 years of rapid growth, with total visitor arrivals reaching as high as 60 million in 2014, nearly four times that of 2003. This has nonetheless led to a public debate on Hong Kong's receiving capacity. In recent years, a number of external factors, including subpar global economic growth and intensifying regional competition posed by neighbouring tourist destinations as a result of the depreciation of their currencies, have affected our tourism industry and prompted it to enter a period of consolidation. Meanwhile the "one trip per week" measure for Shenzhen residents implemented since April 2015 that took into account the receiving LEGISLATIVE COUNCIL ― 22 March 2017 5371 capacity of individual districts in Hong Kong and the development direction of attracting more overnight visitors have expectedly resulted in a drop in the number of same-day Mainland arrivals. The unfortunate incidents involving coerced shopping to Mainland group tours also caused some impact on visitor arrivals.

As for visitor arrivals, the number has fallen by 4.5% in 2016 over that in the previous year, mainly because subsequent to the change of the endorsement arrangement from "multiple entry" to "one trip per week" for Shenzhen residents, this type of visitors (mainly same-day Mainland visitors) has dropped by 30%, thereby bringing a reduction in the number of Mainland visitors by 6.7%. Although non-Mainland visitor arrivals recorded an increase of 3.1%, the fact that Mainland visitors account for about 75% of total visitor arrivals has led to an overall reduction in the number of visitor arrivals.

In face of the above environmental changes and challenges, the Government has adjusted the strategy and direction of the development of tourism since 2015. At present, it is our policy objective to pursue a balanced, healthy and long-term development towards product diversification and high value-added services. We will strive to attract high-spending overnight visitors from various source markets to Hong Kong, with a view to maintaining a diverse visitor portfolio, increasing the economic benefits brought by visitors and creating a more healthy and sustainable room for development for Hong Kong's tourism industry.

Over the past year, we have allocated additional resources to HKTB to step up promotion efforts in various source markets, enhanced the scale of mega events, provided subsidy to promote Meetings, Incentive Travels, Conventions and Exhibitions―mentioned by a number of Members earlier―and "fly-cruise" tourism, as well as promoted Hong Kong's natural scenery and unique history and culture. These measures precisely coincide with those suggested by Members.

Through the efforts of the Government and the industry, these measures have begun to bear fruits and visitor arrivals have rebounded in recent months. In the fourth quarter of 2016, the total visitor arrivals to Hong Kong registered a slight increase of 0.4% year-on-year, which has improved notably from the fall of 10.9% in the first quarter of 2016 and ended the continuous decline of five quarters since the third quarter of 2015. As we entered 2017, total visitor 5372 LEGISLATIVE COUNCIL ― 22 March 2017 arrivals has increased by 1.4% year-on-year for the first two months, in which both the number of Mainland and non-Mainland visitors have increased, reflecting that Hong Kong is still pretty attractive as a tourist destination.

While we hope this good momentum in early 2017 can be maintained, the tourism industry is still expected to face some uncertainties in the year to come. I will listen to the views expressed by Members during today's debate, and pool collective wisdom for the Government and the tourism industry to ponder how we can promote comprehensive and healthy development of Hong Kong's tourism industry, so that while we give impetus to our economy, we can also strike an appropriate balance between visitor receiving capacity and the maintenance of social harmony and stability.

President, I will make a concluding speech after listening to the views expressed by Members on this motion. Thank you, President.

MS CLAUDIA MO (in Cantonese): Haruki MURAKAMI, a renowned Japanese novelist, portrays tourism as landscape paintings, which contain not only sound, but also smell. What he means is the social customs as well as the values and features of a city, a region and a country, and such customs are completely natural. However, very regrettably, there have been repeated reluctant calls for Hong Kong to develop more tourist attractions, such as erecting a golden dragon at this place, and constructing a new Tiananmen Square at another, thinking that this would help boost the tourism industry.

The original motion and a number of amendments mentioned the Hong Kong Palace Museum in the West Kowloon Cultural District ("WKCD"), which will probably become Hong Kong's new tourist attraction. Nonetheless, this proposal involves an element of reluctance because the decision-making process was called into question. In early January, I lodged a complaint with the Independent Commission Against Corruption ("ICAC"). I pointed out that Carrie LAM might be involved in some kind of under-the-table transfer of benefits when dealing with the WKCD project, which is an offence of misconduct in public office. In its reply, ICAC advised that a file would be opened for investigation.

Let me return to talk about Hong Kong's tourism industry. The most extensive action taken by HK First was going around the territory in 2014 to give out warning that the Individual Visit Scheme ("IVS") would make Hong Kong LEGISLATIVE COUNCIL ― 22 March 2017 5373 sink. In 2014, visitor arrivals exceeded 60 million, but then the situation improved slightly in 2015 with the number falling to 59 million, followed by a further reduction to 56 million last year. Some people said that the decreasing number of visitors indicated a decline in Hong Kong's competitiveness, and stated that this situation could not persist. Government officials, characterized by their hypocrisy and double standards, claimed that they emphasized quality rather than quantity on the one hand, but stated on the other hand that the decline in the number of visitor arrival warranted the need to enhance Hong Kong's tourism industry and strengthen its competitiveness.

However, these are all nonsense. Hong Kong is still the most popular city destination for tourists and ranked first in the world. We often mention "Nylonkong", comparing Hong Kong with London and New York. According to the statistics of 2014, the number of visitor arrivals was 27.7 million, close to 28 million. How come the number was so small? Did we not say that the number exceeded 60 million just now? The truth is that the former only included the genuine visitors, but not same-day visitors or the so-called parallel traders. Even so, the 27 million or close to 28 million visitor arrivals in 2014 already doubled that of London, whereas the number of visitor arrivals of New York was only 12 million. How about Paris, it only ranked the fifth with less than 15 million visitors. May I ask how big Hong Kong is? Do we really want to make Hong Kong sink? It is outrageous that a Member has proposed an amendment, urging the Government to increase the number of IVS visitors. Even the Hong Kong Federation of Trade Unions will not render support. Hong Kong has been ranked first in the world, so what do we have to worry about? Tourism accounts for only 5% of our GDP.

The original motion and various amendments all highlight that Hong Kong has benefited from IVS, but such a remark is dishonest and has withheld some unpleasant information. In 2014, the streets were packed with goldsmith shops, pharmacies as well as cosmetics and brand name shops, do Members still remember that? We could hardly hear anyone speaking Cantonese along Canton Road. It is totally ridiculous to expect Hong Kong people to pay the price purely for the development of tourism.

The latest figures are very encouraging as the number of inbound visitors from Asia, which include Korea, Indonesia, the Philippines and Thailand, has been increasing. Visitors do not come to Hong Kong merely for the Hong Kong Disneyland. I do not rule out that Disneyland may be an attraction, but 5374 LEGISLATIVE COUNCIL ― 22 March 2017

Disneyland can also be found in Shanghai and Tokyo, and yet the Government has decided to provide additional funding for the expansion of the Hong Kong Disneyland. In December 2016, only the number of inbound visitors from India recorded a fall of nearly 10%, and an Indian organization even complained that Hong Kong has made their visa application difficult. What has happened? The Government's response is tantamount to saying nothing at all. Someone has raised questions on this and I have also followed up, but no reply has been made.

Of course, it would be best for Hong Kong to preserve its own characteristics. We have over 150 years of British history, can we not remove or conceal the Crown insignias on pillar boxes? Can we preserve Hung Lau? This is our value and feature, why should we change it? Therefore, we must ensure that Hong Kong's tourism industry will develop towards a healthy and normal direction. We pursue humanism and Hong Kong is not a city purely for making quick money as in some people's eyes.

Thank you.

MR CHRISTOPHER CHEUNG (in Cantonese): President, in recent years, the tourism industry in Hong Kong has indeed experienced one cold winter after another; visitor arrivals to Hong Kong have continuously decreased for external, local, political and economic reasons. For example, owing to the Occupy Central movement, the brutal and barbarous acts of driving Mainland visitors away and the riot that broke out in Mong Kok, the Central Authorities had decided to tighten the Individual Visit Scheme ("IVS") and implement the "one trip per week" measure. Furthermore, the continuous depreciation of Renminbi last year has exerted a lot of pressure on our tourism industry.

However, as an international metropolis with many tourism edges, Hong Kong still has its attractions to visitors all over the world. Last year, although the number of Mainland visitors to Hong Kong obviously dropped again, visitors from other places, especially the number of overnight visitors and their spending has increased; but this still failed to make up for the loss caused by the reduced number of Mainland visitors.

Even though the two major theme parks in Hong Kong have been actively carrying out construction or expansion plans, whether this can bring about a radical change and boost the tourism industry again remains to be seen. I notice LEGISLATIVE COUNCIL ― 22 March 2017 5375 that in recent years, it seems that we have rested on our laurels and relied on some ageing tourist attractions to support the tourism industry. Attractions such as the two theme parks and Ngong Ping 360 are more than 10 or reaching 20 years old; the Kai Tak Cruise Terminal, though commissioned in recent years, still cannot make its presence felt due to a lack of ancillary facilities. The commissioning of other attractions such as the West Kowloon Cultural District has also been delayed.

Therefore, I support Mr YIU Si-wing's motion today which enables us to consider how we can give full play to the edges of local tourism resources, so that our tourism industry can take off again and provide the grass roots with more employment opportunities.

I particularly appreciate the idea proposed by Mr Jeffrey LAM in his amendment on developing both sides of the Victoria Harbour into a creative world-class leisure, recreational and dining district. The Victoria Harbour is world-renowned for its scenic beauty; unfortunately, the current inadequate planning of both sides of the Victoria Harbour has wasted development opportunities. For example, the idea of the food truck scheme implemented early this year was good, yet owing to the remote parking location at the Central Harbourfront and various bureaucratic restrictions, some interested parties cannot fully developed their business and some even backed out before the implementation of the scheme.

President, I recall that many years ago before the relocation of the Kai Tak Airport, there was a suggestion of constructing a bridge crossing the Victoria Harbour. Nevertheless, in view of the construction cost, the impacts on flight paths and vessel fairways, as well as the proposed construction of a few harbour crossings, the proposal was not raised again.

Yet, in many famous cities, bridges such as the Sydney Bridge, the London Bridge, as well as the Golden Gate Bridge in San Francisco or the Pont Alexandre III in Paris are well-known landmarks. Given today's technology, constructing a bridge crossing the Victoria Harbour should not have significant impacts on flight paths and vessel fairways. If the bridge is accessible by pedestrians and cars, it will definitely become a very attractive attraction to visitors around the world.

5376 LEGISLATIVE COUNCIL ― 22 March 2017

I raise some bold suggestions, hoping to elicit other brilliant ideas. I hope that the SAR Government will be creative, think out of the box and adopt new thinking in developing new attractions. We can set up open-air cafes at the landing point of the cross-harbour bridge, complemented by food trucks or variety shows, so that Hong Kong people and visitors can enjoy beautiful scenery and good food, as well as watch local performances on both sides of the Victoria Harbour. The Pearl of the Orient will shine brightly again.

On the other hand, as the development of the Guangdong-Hong Kong-Macao Big Bay Area has been proposed, once a decision is made to implement the project, the business contacts within the region will certainly become more frequent in the future and it is doubtful whether the current "one trip per week" measure can continue to meet the demand. For this reason, I hope that the tourism industry will strive to amend this requirement as soon as possible. The Government can even consider allowing electronic passport holders in 49 IVS cities to apply online for endorsements to Hong Kong. This will ensure that visitors to Hong Kong are genuine visitors; they will not cause too much nuisance to the public and can be a source of quality visitors to Hong Kong.

With these remarks, President, I support the motion which will help revitalize our tourism industry.

Thank you, President.

MR POON SIU-PING (in Cantonese): President, the tourism industry is one of the four pillar industries of Hong Kong's economy, contributing to 5% of our GDP. According to the Census and Statistics Department, in 2015, the number of employees in the tourism and related industries was more than 200 000, accounting for 7% of the total working population of Hong Kong. The growth and decline of the tourism industry has a significant impact on the employment and economic development of Hong Kong. Incidentally, when we discuss the development of the tourism industry of Hong Kong today, the Government submitted the Travel Industry Bill ("the Bill") to the Legislative Council for scrutiny. This is an opportune time to review the performance of the tourism industry of Hong Kong and anticipate its future development.

LEGISLATIVE COUNCIL ― 22 March 2017 5377

How did the tourism industry develop into the present state? In 2000, the number of visitor arrivals to Hong Kong was 13 million, among which 3 visitors out of 10 came from the Mainland. In 2015, the number of visitor arrivals to Hong Kong reached 59 million, among which 8 out of 10 came from the Mainland. Last year, the number of visitor arrivals to Hong Kong dropped to 56 million, among which 8 out of 10 still came from the Mainland.

Let me also quote another set of figures, namely, the ratio of visitors to local population. In 2014, the number of visitor arrivals was 60.8 million, which was eight times the population of Hong Kong. In Singapore, the situation of which was very similar to Hong Kong, the number of visitor arrivals only accounted for less than two times of its population, and in Taiwan, the ratio was only 40%. These ratios show that the rapid development of the tourism industry of Hong Kong in the past six or seven years is mainly attributed to a heavy reliance on Mainland visitors and an extensive operational mode, and the development of the entire industry is underpinned by a large number of visitors.

In 2016, the number of visitor arrivals in Hong Kong was 5.67 million, representing a fall of 4.5% as compared with 2015. That was also the second consecutive year after 2015 which recorded a fall in the number of visitor arrivals. As our tourism industry relies heavily on inbound visitors, the decline is attributed to the sole reason that Hong Kong is no longer a must-go destination for visitors.

Why do Mainland visitors no longer come to Hong Kong for leisure travel and shopping? There are different views in society, but whatever the views, I believe that reliance on a single visitor source and a large number of visitors cannot sustain the healthy development of the tourism industry of Hong Kong. What is the way forward for our tourism industry? Mr YIU Si-wing who moved the motion and Members who proposed amendments to the motion have put forward many specific suggestions and I shall not repeat.

As a Member of the Legislative Council representing the labour sector, I am more concerned about the work environment and the rights of practitioners in the tourism industry. Tourism is after all a kind of interpersonal service. Thus, the performance of practitioners is crucial to the development of the industry. Some trade union members told me that at present, frontline practitioners, such as tour guides, are not reasonably protected in terms of their work, remunerations and rights.

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In October 2015, some Mainland visitors to Hong Kong were involved in a dispute arising from coerced shopping, and one member of the tour group died during confrontation. This case indirectly reveals a number of problems in our tourism industry.

In 2011, the Travel Industry Council of Hong Kong ("TIC") implemented Directives No. 194 and 195, requiring travel agencies to make payment remunerations to tour guides and prohibiting them from requiring tour guides to unreasonably advance any payments. Nevertheless, TIC had handled only five cases of non-compliance from 2013 to 2015. The trade unions told me that it is presently a common practice for tour guides to advance payments such as coach rentals and drivers' fees for travel agencies. The tour guides are, in effect, "advancing money for work". In case the travel agency suffers from financial difficulties, the tour guide will have difficulty in recovering the payments advanced.

The frontline staff of the tourism industry support the Bill tabled by the Government to set up a Travel Industry Authority which will enhance the protection of the rights of practitioners of the tourism industry of Hong Kong and spearhead the healthy development of the industry. I believe this Council will set up a Bills Committee to scrutinize the Bill and so I do not intend to discuss it here. However, I must point out that the trade unions of the industry are extremely worried about the criminal liability that frontline staff may bear under the Bill. Thus, the authorities must clarify the rights, responsibilities and roles of tour guides and travel agencies to ease the mind of frontline staff at work, in this way the tourism industry can develop in a healthy manner.

President, Hong Kong still has its unique edges and attractiveness. It is a metropolitan city where East meets West. It has the glamorous night view of Victoria Harbour, community outlook where modernity interweaves with traditional richness, easily accessible country parks and remnants of the colonial times. We are endowed by nature with these tourism assets. I am confident that if the tourism industry of Hong Kong can return to its right track, it will still have a bright future.

President, I so submit.

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MR CHAN CHUN-YING (in Cantonese): President, as a traditional pillar industry of Hong Kong, the tourism industry has contributed significantly to local GDP and employment. In the aftermath of the SARS outbreak in 2003, the tourism industry has also provided an opportunity for the Hong Kong economy to break through its economic deadlock.

However, as major economies worldwide have implemented the qualitative easing monetary policy, the value of currency and purchasing power of various countries have changed, coupled with the fact that other complicated disputes in respect of the receiving capacity of the community have yet to be completely resolved, the number of visitor arrivals and rate of consumption growth have exhibited a downward trend in the recent two years. In fact, the development of Hong Kong's tourism industry has already reached a crossroads. The difficulty and side effects of solely pursuing visitor arrivals and consumption growth have remarkably increased. In view of this situation, it is necessary for Hong Kong to improve services and develop new tourism products to attract target visitors. This would help prevent the continued loss of visitors from affecting the employment of practitioners in the industry and the businesses of related industries, such as retail, aviation and transport. Meanwhile, the problems of visitors mainly go to certain districts for shopping and leisure travel should also be addressed so as to avoid affecting the daily life of local residents, giving rise to social conflicts.

The problems of the tourism industry to be addressed cover both tourism hardware, including public transport, hotels, local tourism and recreational facilities; as well as software, including the supply of tourism products, product quality, high shop rentals, as well as cultural differences and conflicts. It is difficult for the Government to resolve these issues simply with a conventional mindset.

I strongly concur with the views expressed by Mr YIU Si-wing and other Members on the motion just now. It is necessary to collate all the resources with tourism values in Hong Kong and explore new tourist attractions with inter-departmental, inter-agency cooperation. In the face of the competition from neighbouring tourist destinations, legislation regulating the tourism industry should be reviewed afresh in line with the new global trends. The Government and the industry are urged to adopt a multi-pronged approach by developing the traditional tourist market on the one hand, and exploring innovative tourism products to cater for the new market on the other.

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I am not an expert on tourism, but I have four simple visions for the development of Hong Kong's tourism industry. First, Hong Kong should be developed into a hospitable city. All tourist destinations should be friendly to their tourists. The Government should step up publicity and civic education to guide the public to reconstruct Hong Kong's image as a hospitable city. Second, Hong Kong should be developed into a cultural city by capitalizing on its long-standing characteristic as a city blending the Chinese and foreign cultures. In addition to promoting the Chinese culture, we have also retained our past colonial flavour to cater for the interests of tourists from different places. Third, Hong Kong should also be developed into a gourmet city. In addition to promoting Hong Kong as a city boasting delicacies from around the world, the Government should also better utilize and revitalize vacant facilities. With reference to the examples of "Dai Pai Dong" food stalls in Singapore and the night markets in Taiwan, more delicacies with Hong Kong characteristics can be developed. Lastly, Hong Kong should be developed into a shopping city. Shopping is not necessarily confined to luxury products or daily necessities; we may also promote locally produced products such as "wife cake" and mini-egg puff. The Government should crack down on the minority of shop operators who sabotage Hong Kong's reputation as a shoppers' paradise, including those unscrupulous operators who tried to replace catty with tael and pass fake products off as real ones. The law-breakers should be held criminally accountable in order to reconstruct Hong Kong's reputation as a shopping centre.

Those projects with good development momentum at present should continue to be promoted, such as mega events or event tourism. International sports events such as the Hong Kong International Dragon Boat Races, yacht races, Formula E races and rugby races can attract a large number of visitors. The selling point of these tourism events is that they can avoid conflicts arising from any overlapping of tourism resources and the community resources of the Hong Kong people, highlighting the vitality of Hong Kong's tourism.

Second, the Government should attach importance to the development trend of family tourism, and strategically give play to the role of large-scale family tourism attractions such as the Hong Kong Disneyland and the Ocean Park. The hotels in the amusement parks should be coordinated to receive overnight visitors. In this way, more tourists will be attracted to travel to Hong Kong and spend money with their whole family here, thereby maximizing the enjoyment of their families.

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Third, develop ecological tourism. Many Members have mentioned just now that Hong Kong's natural and ecological resources compare favourably with those of other places, and Hong Kong has become a member of the Global Geoparks Network. We have wetland and country parks which attract foreign hikers to stay and spend in Hong Kong. The Government should step up the promotion of green travel in line with the principles of nature conservation and sustainable development, as well as improve the facilities in country parks. This can not only diversify our homogeneous tourism products, but can also upgrade purely sightseeing tourism to in-depth tourism.

Fourth, develop gourmet and cultural tourism. The tourism resources in various districts of Hong Kong should be packaged as tourism products with local characteristics to promote gourmet and cultural experience tours. For example, the Hakka walled villages and fishing villages in Tai O, etc. are good examples. Tourists will get a distinctive taste when they enjoy local delicacies such as dim sum, Poon Choi (big bowl feast) and seafood in places with local characteristics.

Lastly, I would like to remind the Government. As the Hong Kong-Zhuhai-Macao Bridge, the Guangzhou-Shenzhen-Hong Kong Express Rail Link and other major infrastructure projects will be completed soon, we should make preparation in advance by expeditiously conducting assessments on five major areas, namely the handling capacity of control points, the capacity of tourism attractions, the receiving capacity of hotels, the passenger capacity of public transport networks and the receiving capacity of the community and people's livelihood. In sum, Hong Kong should turn local characteristics into tourism resources and make good use of them in order to make a breakthrough in the tourism industry.

President, I so submit.

MR KENNETH LAU (in Cantonese): President, the tourism industry is one of the four pillar industries of Hong Kong, and the number of people employed in tourism-related industries reached some 270 000 in 2014. Benefiting from the introduction of the Individual Visit Scheme by the Mainland in 2004, Hong Kong had enjoyed a 10-year honeymoon period for tourism. In 2015, the number of visitor arrivals to Hong Kong recorded a drop for the first time, a decrease of 1.5 million compared with 2014, and an annual decrease of 2.6 million was even recorded in 2016. Most of such visitors were from the Mainland. At the same 5382 LEGISLATIVE COUNCIL ― 22 March 2017 time, the per capita spending of overnight visitors also started to drop in 2014. As I said earlier in the debate on the motion of thanks for the Policy Address, tourism programmes that focus on catering, retailing, shopping and sightseeing have gradually lost their appeal to Mainland visitors.

Mega events that aim at attracting international visitors, such as the Hong Kong Sevens and the FIA Formula E Championship, held the first time in Hong Kong last year, still have certain appeal. According to the statistics from the Hong Kong Tourism Board, the number of overseas visitor arrivals in 2016 increased by 3.1% compared with 2015. However, the increase in overseas visitors cannot make up the shortfall arising from the rapid decrease in Mainland visitors. Given that Mainland visitors have accounted for around 75% of the overall visitor arrivals over the years, representing a major source of visitors for our tourism industry, we have to face up to the problem of a shrinking number of Mainland visitors. We must also reflect on whether the tourism experiences offered by Hong Kong today can cater for international demand, so that while leveraging on the Motherland, Hong Kong can still face the international community and continue to attract visitors from various places of the world to come here for leisure travel, thereby maintaining the livelihood of some 270 000 people in the industry.

President, I very much agree to the first point of the original motion, that is, "comprehensively collating resources with tourism values … the establishment of an inter-departmental body to enhance the tourism-related facilities in various districts". In fact, if we continuously develop new tourism programmes and facilities, we will be able to maintain the novelty of Hong Kong, and if we make optimal use of existing tourism resources and add value to existing facilities and attractions, I believe we will be able to produce a synergistic effect.

Some 40% of land in Hong Kong has been designated as country parks, making Hong Kong the champion in Asia in terms of land conservation ratio. According to the statistics from the Agriculture, Fisheries and Conservation Department, the number of visitor arrivals to country parks is about 12 million every year. In my view, the beautiful sceneries of the New Territories and the humanistic features of the villages are exactly the advantages and characteristics of Hong Kong. The Government should make good use of them to develop eco-tourism, rather than merely conserve them.

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In foreign countries such as Japan and Taiwan, there are homestay lodgings along the hiking trails or in the suburbs of many places. Hikers and visitors can enjoy a short stay to experience the serenity and beauty of nature before heading for a more challenging trail. Though mountains in Hong Kong are not lofty, there are rolling hills, scenic country parks, and many hiking trails that traverse through certain remote villages. If we can restore such villages, provide water supply and power generation facilities, undertake basic road and drainage works projects, and allow villagers to use their own houses to operate homestay lodgings to provide limited accommodation and catering services, I believe there are potentials to develop eco-tourism given the beautiful environment of country parks.

President, in the eyes of general visitors, Hong Kong is a modern and international metropolis, but if visitors are allowed to have a short stay in rural villages, they will be able to have an in-depth understanding of the humanistic culture of the villages and experience a different Hong Kong. They will appreciate Hong Kong from a humanistic perspective. I think such unique experiences will attract more high quality visitors on a continuous basis.

Last August, a report issued by the Youth I.D.E.A.S. of the Hong Kong Federation of Youth Groups indicated that given the homogeneous image of Hong Kong in terms of tourism, individual young tourists are no longer satisfied with visits to famous attractions and theme parks, catering and shopping. They want to understand Hong Kong through other channels, such as historical and cultural relics as well as district characteristics.

President, the examples I referred to just now, namely the development of eco-tourism and limited lodging in remote villages, actually involve various Policy Bureaux. Country park affairs are under the purview of the Environment Bureau or the Food and Health Bureau; homestay lodging is under the purview of the Home Affairs Bureau; and the maintenance of bridges and roads is under the purview of the Transport and Housing Bureau or the Development Bureau. If no Policy Bureau is to assume a leading role, all efforts will be to no avail. For this reason, the Government must establish an inter-departmental body for coordination and making arrangements.

If Hong Kong can reinforce, strengthen and rationalize its existing tourism resources, and dares to innovate, I believe that the tourism industry, which is an economic pillar of Hong Kong, will reclaim its past glory and scale even greater 5384 LEGISLATIVE COUNCIL ― 22 March 2017 heights. I hope that future visitors to Hong Kong will not merely enjoy a homogeneous tourism experience, but instead have a journey across a diversified Hong Kong, which starts from mega events, followed by the observation of a modern Hong Kong, and ends with the appreciation of the natural beauty and rural culture of Hong Kong. These are my expectations for the tourism industry of Hong Kong, as well as my expectations for the implementation of a better tourism policy by the Government.

President, I so submit.

MR JEREMY TAM (in Cantonese): President, there are 50 million-odd visitor arrivals to Hong Kong each year, which is more than double that of Japan. Hence, the number of visitors is never a problem to the tourism industry of Hong Kong, what is missing is a clear positioning.

For instance, non-overnight visitors under the Individual Visit Scheme only come to Hong Kong to purchase daily necessities or carry out parallel trading activities. Their spending level is not comparable to that of overnight visitors or high value-added visitors. Besides, the influx of non-overnight visitors has brought problems to our transport services, pushed up commodity prices, and affected the public's quality of living. Undue public grievances have thus accumulated. We should reflect on how to stay away from this kind of purely extensive development of the tourism industry.

Let us get back to the basics. People travel not just for feasting, pleasure-seeking, shopping and entertainment; they also want to enhance their knowledge, experience another way of lifestyle, as well as learn about the foreign culture and meet local people. Travelling are experiences in life.

Hong Kong was once a British colony. Many years ago, an emperor of the Song Dynasty fled the country and took refuge in Hong Kong. Hong Kong experienced World War II when some Canadian, Indian and British soldiers bravely fought for Hong Kong. The history of Hong Kong is as unique and colourful as the lights of the Victoria Harbour.

Unfortunately, as Hong Kong develops, various historical traces have been erased intentionally and unintentionally. The two ancient wells dated back to the Song and Yuan Dynasties at To Kwa Wan Station have been so badly LEGISLATIVE COUNCIL ― 22 March 2017 5385 damaged that they cannot be preserved. Hung Lau, commemorating Dr SUN Yat-sen, has not been conserved in the past and it would have been completely demolished were it not for the incessant complaints lodged by some disapproving members of the public. The crown markings on posting boxes have been secretly covered by Hongkong Post. Members will clearly remember that former Postmaster General Jessie TING was as dumb as a fish when Members put questions to her on this matter at the Legislative Council.

Overseas countries, on the other hand, have made a lot of efforts in promoting their history and culture. One will surely find many guided tour pamphlets in any homestay lodging in overseas cities. Backpackers can join guided tours every Saturday or Sunday to visit different places to explore different corners of a city. Take Berlin as an example. When people visit the concentration camp sites, they will be guided by those well versed in history. By facing history squarely and drawing lessons from history, Berlin gradually builds up its image as an international city.

In recent years, some young people in Hong Kong have restored the historical facts of the Battle of Hong Kong in World War II. They conduct guided tours to visit important military bases during the War and told visitors about the history. Moreover, some groups organize tours to ecological habitats which have not yet been destroyed and explained to participants the biological diversity of Hong Kong. Some will even take foreign visitors to places showcasing Hong Kong's characteristics, such as paper crafting shops in Sheung Wan, snake soup shops and fung shui buildings in Central. The focus is not simply a visit to these places, but an explanation to visitors the custom of joss papers burning by Hong Kong people, the concept of taking snake soup as a tonic and the profound impact of fung shui on Hong Kong and many Chinese people. I do not wish to see visitors coming to Hong Kong just for casual sightseeing, have a couple of meals, take a glimpse of tall buildings, and then take leave without knowing the story of Hong Kong. Have the Government put in place any complementary measures?

Apart from conserving our resources and making promotions, which kind of Hong Kong values does the Government intend to promote to the rest of the world? What I am saying is not vibrancy or vitality of Hong Kong so often stressed by the Government, but the core values which connect us with the rest of the world. For example, the Ocean Park which receives 7.7 million visitors per 5386 LEGISLATIVE COUNCIL ― 22 March 2017 year was initially established as an educational theme park. Nevertheless, while we are promoting animal protection and teaching people that animals are precious, we allow trainers of the Ocean Theatre to confine the animals in tiny water tanks and compel them to perform in a disciplined manner actions which are against their nature. That is very cruel. Each year, 7.7 million people watch this kind of shows which are uncivilized by world standards. Which is actually more important: proceeds from tourism or the image of Hong Kong? What is the proper way of protecting animals on earth?

I understand that there are surely visitors who like shopping, but if Hong Kong merely has shopping convenience as its competitive edge, many cities will catch up with us or even overtake us. Thus, we should explore whether Hong Kong can develop some world-class attractions which can sustain visitors' interests. Mr Michael TIEN's analysis of the tourism industry of Hong Kong and his suggested direction of development as contained in his amendment are actually commendable, but the proposal of constructing an international motor racing circuit at the end of his amendment is a bit too rigid. He is asking the Government to construct such a circuit instead of conducting studies on the proposal. Therefore, the Civic Party cannot support his amendment. I personally think that the proposal of constructing an international motor racing circuit is certainly worth studying because the culture of motor racing is well developed in Hong Kong and its neighbouring areas. Besides, the proposal can also attract automobile manufacturers to Hong Kong and provide local universities with incentives to develop new automobile technology which will promote research on transport safety. That is actually a high value-added industry and tourism business.

Take the FIA Formula E Championship held in 2016 as an example. There were 21 000 spectators in just two days and the Tourism Commission said that the event was very well-received, reinforcing Hong Kong's position as a premier destination offering diversified attractions for visitors. A motor racing circuit can be used to hold Formula races, saloon races, motor cycle races, bicycle races and even new car launches. Experience in Shanghai and Malaysia shows that motor racing circuits are never laid idle during the year and they produce huge economic returns. It is true that many people still have very negative views about motor racing. The point is, people had very negative views about snooker and boxing in the past, but their views are very different now.

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I very much hope that the Government will cherish the intrinsic values of Hong Kong and promote tourism projects which are not easily replaceable. If the Government blindly seeks to promote tourist spending, the tourism industry will not sustain eventually, and such a mistake is hard to rectify.

I so submit.

MR WONG TING-KWONG (in Cantonese): President, tourism, also known as the smokeless industry, is one of the four pillar industries of Hong Kong.

Hong Kong used to promote convergence of Chinese and Western cultures, convenience in transport, availability of cuisines from all around the world, interesting night life and the reputation as a shoppers' paradise as its selling points. However, as time changes with social development, we can no longer just rest on our laurels; otherwise, we shall fall behind. While maintaining our existing tourism resources, we should also develop more tourism projects with special features to attract visitors from different sources, and do a good job in regulating the tourism industry, so as to truly facilitate the long-term development of the industry.

President, our tourism industry is inadequate in the sense that we do not have a natural and magnificent landscape. Although Hong Kong has beautiful rural scenic spots and Tung Ping Chau, listed as the Hong Kong Global Geopark of China, they pale in comparison with the majestic splendour of world-class glaciers, mountains, valleys, grasslands, forests, rivers and lakes in the Mainland and other countries. Therefore, apart from expanding tourist facilities and developing new ones, we also have to explore tourism products with local features to make up the inadequacy. Certain places with special features and heritage elements may be packaged as new tourism products. An example of which is the proposed repackaging of the areas in the vicinity of Central into a trendy lifestyle zone with a concentration of arts, cultures, historic buildings, gourmet food and entertainment. It is believed that the District Council, local organizations and shop operators will support the plan, provide assistance and get involved in it. It is also hoped that better communication and coordination will be maintained.

Moreover, on the development of green tourism, Hong Kong still has its attractions despite the absence of natural resources. We should make full use of our natural landscape, different species of flowers, birds, insects and fishes, as 5388 LEGISLATIVE COUNCIL ― 22 March 2017 well as diversified local conditions and customs, etc. to develop alternative tourism products. Such products, supplemented by the terrain and scenes of different country parks, fully reflects Hong Kong's unique charm and diverse experience to attract nature-loving visitors to come and enjoy the countryside, thus broaden our visitor source.

As we develop tourism products, visitors also value shopping experience. Since Hong Kong has the reputation as a shoppers' paradise, it should capitalize on its existing edges. Hence, I advocate the construction of the San Tin Shopping Centre at the border. Through the expansion of the retail mode, a new channel is provided to enhance our capacity in receiving Mainland visitors on the one hand, and giving further play to the advantages of geographical adjacency and "buying from Hong Kong" on the other. While the border shopping centre is conducive to the sustained development of the tourism and retail industries, it also performs a diversion function to alleviate the negative impacts resulted from the over-concentration of Mainland visitors, and provides new employment opportunities to local residents for promoting a balanced social development. Currently, this project is progressing smoothly and certain infrastructures have already been completed. Later, business promotion activities will be held and media coverage will be arranged. Our target is that the shopping center will be ready for operation this summer. Over the past two-odd years, relevant government departments have granted approvals in accordance with the procedures, so as to facilitate the smooth completion of the shopping centre.

On the other hand, I must mention the problems caused by low-fare inbound Mainland tours and arranged shopping tours. Apart from repeated confrontations between tour group members and tour guides due to coerced shopping, great nuisances have also been caused by such groups to residents in the vicinity of shopping spots, giving rise to dissatisfaction amongst the residents. A small group of law-breakers in society had even initiated a series of so-called "anti-locust campaigns", and taken violent acts such as hurling abuses at Mainland visitors and even kicking their suitcases. Such incidents not only tarnished Hong Kong's hospitable image and the reputation of the tourism industry, but also undermined Mainland visitors' confidence in coming to Hong Kong.

Therefore, I consider the regulation of the tourism industry should brook no delay. I support the Travel Industry Bill introduced into the Legislative Council and urge for the expeditious establishment of the Travel Industry Authority to implement a holistic licensing regime on travel agencies, tour guides and tour LEGISLATIVE COUNCIL ― 22 March 2017 5389 escorts, and impose an overall regulation of the tourism industry of Hong Kong. In particular, the Bill proposes the Travel Industry Authority to take charge of the compensation fund, and the Secretary for Commerce and Economic Development to prescribe a certain percentage of the fund for establishing the Travel Industry Development Fund, so as to offer financial support in areas such as training and information technology application to the trade. I expect that the fund can provide support and training to practitioners of the trade, and coupled with a stringent regulatory regime, the service standards of the trade can be further enhanced to allow the tourism industry to improve its operation, so as to strive for perfection.

Certainly, more has to be done for the well operation of the tourism industry. The above are some of my concerns. I hope fellow Members will raise more views to pool wisdom to facilitate the long-term development of the tourism industry.

President, I so submit.

MR CHARLES PETER MOK (in Cantonese): President, it is good to see Secretary Gregory SO returning to the Chamber because he used to oversee innovation and technology, so I think he may share my views.

What is the problem with the tourism industry? In the Legislative Council, discussions will naturally focus on policies and industries. First of all, what I want to say is that, at present, many projects that are supposed to be tourism projects do not fall under that category, whereas the so-called tourism projects actually do not belong to that category, and the most typical example is certainly food trucks. Last year, a delegation of the Legislative Council, of which I am a member, visited San Francisco of the United States. Apparently, the local food trucks do not operate merely for tourists, but they seek to make up for the insufficient supply of restaurants in certain areas, such as commercial and school areas, and the operation has proved to be a success. However, in Hong Kong, the operation of food trucks is regarded as a tourism project, and hence the development has been constrained.

On the other hand, projects that are supposed to be tourism projects have turned out to become other projects, for example, e-gaming which the Government has recently highlighted in the Policy Address. As Members may 5390 LEGISLATIVE COUNCIL ― 22 March 2017 be aware, this proposal was put forward by the Chairman of the Hong Kong Tourism Board ("HKTB"), but I learnt that the Innovation and Technology Bureau intended to turn to the Cyberport for support. Frankly, in my opinion, there are more important things for the Innovation and Technology Bureau to deal with, including financial technologies. Thus, I really have no idea of the division of work among various Policy Bureaux. The situation is just a mess.

When I was still serving in the chamber of commerce more than 10 years ago, I had taken part in certain projects of the Travel Industry Council of Hong Kong to examine how information technology ("IT") could be used to promote and assist the tourism industry. Who paid the bill back then? It was the Office of the Government Chief Information Officer ("OGCIO") but not the Commissioner for Tourism. The former allocated funds in three phases to organize forums, and much effort had been made to introduce promotion through Internet, customer management and industry solutions, etc. Nonetheless, the question remained as to why such work was not handled by HKTB or the Commissioner for Tourism, but by the most enthusiastic OGCIO instead. I wonder if OGCIO was the most nosy or most enthusiastic government department as it always worked for other departments, and even paid their bills.

Today, the rate of IT application among small and medium enterprises ("SMEs") of the tourism industry is still low and the industry still remains short-sighted. Over the past few years and even decades, thanks to the Individual Visit Scheme ("IVS"), SMEs had made quick money for a certain period of time and their performance was pretty good. I nonetheless have to commend HKTB for their good work in digital marketing, or else the number of foreign visitors to Hong Kong might be even lower.

Just now, both Mrs Regina IP and Mr WU Chi-wai cited some examples of sharing economy, such as Airbnb and local tour guides Sam the Local, etc. The problem is, innovation is inevitably a challenge to the regulation under the existing legislation. Hence the relevant operations are basically unlawful and "overstepping the line".

Another example that is also closely related to visitors is mobile application for taxi-hailing, such as Uber and "didichuxing" of the Mainland. After the arrest of drivers of a certain company, "didchuxing" shelved its plan to start business in Hong Kong for the time being in view of the unfavourable LEGISLATIVE COUNCIL ― 22 March 2017 5391 situation and it is uncertain when the plan would start again. While the applications work well in the Mainland, they have yet to achieve success in Hong Kong. As soon as visitors arrive at Hong Kong, they naturally think of using apps for taxi-hailing, but they are required by the authorities to download the local taxi apps. President or the Secretary, would you download the taxi app of Seattle as soon as you landed there, and then download another taxi app of Las Vegas once you got there? I don't think so. Such a policy is actually "driving away the visitors". The Secretary for Innovation and Technology may say that this is none of his business as it falls under the purview of the Transport and Housing Bureau. After all, various departments of the SAR Government only mind their own business and take this for granted. So far, no solution has been identified. What can the Government do for us? When the limbs fail to coordinate and the brain cannot control the heart, this person can be certified dead.

I think the tourism industry and the IT industry to which I belong do share many things in common in terms of their fate and problems. As a matter of fact, not only these two industries are alike, many others are also having similar problems relating to the policies and industries. The Government is only concerned about implementing infrastructures, setting up funds and establishing new administrative structures. It has adopted the same approach for all industries. There is downright no prospect and development opportunity, and various industries will end up facing the same problem.

What do we mean by infrastructures? Many Members or members of the trade requested the authorities time and again to develop more tourist attractions or build a shopping centre at the border for IVS visitors, but instead of doing so, would it be better to provide support for the development of e-commerce in Hong Kong? E-merchants across the border also need some space to set up their modern logistics warehouses, but they have received no assistance at all.

Just now a Member proposed to set up funds and establish a new Travel Industry Authority under the existing administrative structure; there is even an amendment suggesting the Government to establish a relevant Policy Bureau. In fact, both the tourism and IT industries need to create new market and address the problem of lack of talent, but more importantly, there is a need to abolish various regulations and restrictions. The future tourism industry must emphasize innovation, creativity and technology, which will inevitably challenge the 5392 LEGISLATIVE COUNCIL ― 22 March 2017 industry's existing operation, practices and regulations. In this connection, without reform, there will be no hope; even the construction of 10 more Disneyland will not help. What is more, the reality is that I do not think there will be another Disney group willing to invest in Hong Kong.

President, I so submit.

MR CHAN CHI-CHUEN (in Cantonese): President, since the implementation of the Individual Visit Scheme in 2003, the number of Mainland visitor arrivals has been on the rise and the China-Hong Kong conflicts have also been intensified. The resentment and grievances involved, as well as the causes and effects cannot be clearly accounted for.

In recent years, the national sentiment in the Mainland has remained high, and such sentiment can easily be instigated. For example, if certain countries or regions have done something that displeased some Mainlanders, they are apt to launch boycotts by refusing to travel to those places. For example, after TSAI Ing-wen became the President of Taiwan, many Mainlanders claimed that an advocate of Taiwan Independence was elected, and being fueled by the Government's, they stopped visiting Taiwan. Thus the number of Mainland visitors to Taiwan plummeted. Recently, South Korea deployed the THAAD anti-missile defence system to guard against North Korea's missile attack. I am not sure whether the anti-Korean sentiment is thus aroused and many Chinese have cancelled their tours to South Korea. From our experience gained or lessons learned in the past 10-odd years, we can draw the conclusion that a place or a country cannot over rely on one single visitor source. That is very dangerous. The experience of Taiwan and South Korea can be seen by all.

To enhance the quality of our tourism industry and increase its resilience, it is very important to look for new source of visitor. Today I just wish to talk about one direction to share with the Government, in the hope of helping Hong Kong establish a unique image within a short time and attract different kinds of visitors, that is, to develop LGBT tourism.

Over the years, the Hong Kong Government has never paid attention to developing LGBT tourism, and even in the absence of the Government's active promotion and interference, LGBT tourism has brought huge economic benefits LEGISLATIVE COUNCIL ― 22 March 2017 5393 to Hong Kong. According to the estimation of LGBT Capital, in 2015 the average per capita spending of LGBT tourists from all over the world in Asian countries each year are: the highest is China, US$5.6 billion, the next is Thailand, US$4.6 billion, and then Hong Kong, US$4.3 billion, followed by Singapore, India and Japan. Although the Hong Kong Government has never adopted any special policies to attract LGBT tourists, Hong Kong can still be benefited from LGBT tourism. On the other hand, the Mega Events Fund allocates $15 million each year to sponsor the activities held by the Hong Kong Golf Club, such as the international golf tournaments, but how many people can participate in the event? The Government has never allocated a cent to sponsor the LGBT parades.

The Government absolutely lags behind other Asia Pacific countries in this respect. In Taiwan, when MA Ying-jeou was the mayor of Taipei city, after overcoming many obstacles and paying no heed to the objections of the conservative members of his party, he asked the Taipei municipal government to allocate $1 million each year to sponsor events held by LGBT organizations. That was how the LGBT parade in Taiwan came about. In the first year, 2 000 people participated in the parade and the number of participants rose to over 80 000 last year. The parade has now become the biggest LGBT event in all Chinese communities.

Each year, around the end of October when the Taiwan LGBT parade is held, tens of thousands of visitors will fly to Taipei. The hotels are fully occupied, and it is hard to get an air ticket to Taipei. Although end October is not a peak tourism period, this event brings huge economic benefits to Taipei. LGBT are high-spending visitors. Since they have no children to support, they are very willing to spend money on entertainment, travel and investment. Hence, the authorities should not neglect the sexual minority tourists when they seek to develop high-yield markets.

When it comes to the so-called moral values, people who are more conservative or having religious belief will query if there are moral concerns for the Government to sponsor LGBT parades. Let me cite an example for your consideration. In Israel―a Legislative Council Panel had paid a visit to that country―where Judaism is the dominant religion, the mayor of Tel Aviv, the second biggest city of Israel, who is also a Judaist himself, funds the annual LGBT parade with government resources and the parade has become the biggest LGBT event in the Middle East region. It is a well-known fact that Judaism is 5394 LEGISLATIVE COUNCIL ― 22 March 2017 more conservative than Christianity and attaches greater importance to rules and regulations. How come the Israelites can let go of this moral burden and receive LGBTs of different nationalities in a friendly manner? I believe Hong Kong has the edges to attract LGBTs and can become an LGBT tourist hub.

I know that some people in Hong Kong are bidding to host the Gay Games in 2022 and I am grateful that the Hong Kong Tourism Board and the Constitutional and Mainland Affairs Bureau have written recommendation letters in support of Hong Kong's bid for this event. Among the cities bidding for the Gay Games in 2022, Hong Kong is the only Asian city and it is one of the final three. If Hong Kong can become the first Asian city that hosts the Gay Games, it will be a great boost to our tourism industry. In fact, some civil organizations are also organizing tours in Hong Kong that serve the sexual minorities. For example, there is a guided tour in Central that guides tourists to LGBT-related spots in Hong Kong.

Apart from deploying resources to develop LGBT tourism, Hong Kong must become a diversified and inclusive city in order to attract overseas visitors, so that visitors of different sexual orientations from various parts of the world will not feel being discriminated. Hence, our priority task is to enact legislation to prohibit discrimination on the ground of sexual orientation. As a matter of fact, one criterion adopted by certain international tourism magazines to determine whether a place welcomes visitors is its acceptance of people of different sexual orientations. I hope that all government departments, not just the Commerce and Economic Development Bureau, will work hand in hand to make Hong Kong the world's leading travel destination. To achieve that and attract visitors from all corners of the world, we should expeditiously enact legislation against discrimination on the ground of sexual orientation.

I so submit.

MS YUNG HOI-YAN (in Cantonese): President, the tourism industry which contributes to 4.5% of Hong Kong's GDP and employs 230 000 people, is one of the four traditional economic pillars of Hong Kong. Although the number of visitor arrivals to Hong Kong more than doubled in the past 10 years from 25 million in 2006 to more than 56 million in 2016, there is a trend that the increase has slowed down in recent years. This shows that Hong Kong's attractiveness and competitiveness as a world-famous tourist city is being LEGISLATIVE COUNCIL ― 22 March 2017 5395 undermined and challenged. Thus, Hong Kong cannot be complacent and the Government can no longer stick to its established mode of developing the tourism industry of Hong Kong. The SAR Government needs to comprehensively review the overall strategy of developing the tourism industry so as to give full play to the characteristics and edges of Hong Kong.

The Policy Address this year stated that the Government would continue to attract more high-yield overnight visitors and support the tourism industry by allocating an additional sum of $243 million. One of the measures is to further promote the diversification of tourism products and encourage the development of more diversified tourism products so as to attract more visitors to Hong Kong.

As Hong Kong has been vigorously promoting the development of innovation and technology in recent years, I think the Government is capable of reforming the tourism industry by utilizing technology. With the advancement of technology, e-sports has become more mature. E-sports is not only a sports event in China, but also one of the three major sports events in the world. At present, there are a number of world-class e-sports tournaments and a huge number of e-sports professional gamers and fans. Last year, the global e-sports market has recorded a revenue of US$460 million and attracted an audience of nearly 400 million.

President, South Korea is one of the places where e-sports has been successfully developed. E-sports has become a mainstream culture in South Korea and top gamers are as famous as movie stars. Quite a number of e-sports tournaments often draw full houses and many people have to watch the live broadcasts on television or the Internet. For example, the League of Legends: S4 World Championship held in the Seoul World Cup Stadium in 2015 attracted an on-site audience of more than 40 000. In 2016, the United Kingdom formally established the British Esports Association ("BEA") under the Department of Culture, Media and Sport. Apart from supporting e-sports gamers, BEA will construct a National Training Centre for Esports to promote the development of electronic gaming and train talent in the country.

Unlike conventional sports events, e-sports is highly entertaining and enjoyable, and everyone can participate in it, even though there are some specific venue requirements such as network cabling. As Hong Kong is an international city, it has certain linguistic and cultural edges in attracting overseas and Mainland gamers to come and participate in international leagues. This will be conducive to promoting Hong Kong to the whole world.

5396 LEGISLATIVE COUNCIL ― 22 March 2017

Moreover, e-sports tournaments can create many job opportunities. Apart from e-sports gamers, there are posts for commentators, tournament staff, as well as personnel for providing technical support, repair and maintenance or venue decoration. The economic development of Hong Kong can thus be effectively promoted.

I hope that the "Hong Kong Summer Party", to be held by the Hong Kong Tourism Board, can include a mega e-sports tournament which I believe will attract more young visitors from different countries to Hong Kong. I also hope that more similar mega international tournaments will be held in Hong Kong in the future. With the application of innovative technology, such as virtual reality, holographic display and motion capture, interaction between the gamers and the audience can be enhanced. This will create a sense of novelty and increase the attractiveness of the tournament.

Furthermore, I hope that the Government can actively utilize the unique culture of local markets and develop them into tourist attractions in Hong Kong. There are many successful overseas examples from which we can draw reference. For example, many years ago, the Tongin Market in Insa-dong of Seoul had light visitor flows and little business. Nevertheless, owing to the Korean Government's determination to revitalize the market, ancient copper coins were issued for visitors to buy food at collaborating vendors in the market. This initiative made the market famous and consequently attracted many local and overseas visitors. The number of visitors soared from 50 000 in 2012 to 170 000 in 2014.

Another example is the Queen Victoria Market in Australia. It is not only a place where families in southern Australia buy their daily food, but also a popular destination for visitors. According to a local newspaper, in 2016, 47% of foreign visitors to Victoria had visited Queen Victoria Market to appreciate the life of local residents. I think the Hong Kong Government has to review the design and positioning of our markets, and consider introducing pilot schemes in suitable markets where tour guides will be held and stalls will be operated by social enterprises. This will not only create job opportunities for the disadvantaged, but also provide a richer and more diversified experience for visitors and enhance their understanding of Hong Kong.

President, in order to promote the development of the tourism industry of Hong Kong, the Government has to strengthen cooperation among relevant Policy Bureaux and departments. Thus, I agree to and support Mrs Regina IP's LEGISLATIVE COUNCIL ― 22 March 2017 5397 proposal of setting up a Policy Bureau dedicated to promoting tourism and handling all tourism matters. This will lessen the problem of lack of coordination among departments and be conducive to effectively coordinating different work and policies to promote tourism development. I hope that the Government can adopt a multi-pronged approach to alleviate the problem of Hong Kong's deteriorating tourism industry and develop diversified tourism projects to enhance its attractiveness and competitiveness.

President, I so submit.

MS STARRY LEE (in Cantonese): President, first of all, I thank Mr YIU Si-wing for moving this motion debate today so that this Council can once again have the chance to discuss how to give full play to the edges of local tourism resources. The tourism industry contributes to 5% of our GDP and directly employs a population of about 270 000. If employees of the retail, hotels, catering and transport industries are also included, the total number of employees will be as high as 500 000. Simply put, when the tourism industry is flourishing, these 500 000 direct or indirect employees will be in employment and even have a pay rise. If the tourism industry is experiencing a bleak winter, I am afraid these workers will be directly affected.

As we all know, the tourism industry is undergoing a period of consolidation, and some even say that it is now in dire straits. In the past two years, the number of visitor arrivals to Hong Kong has continued to fall. The situation this year is not optimistic either and a further drop of 2.2% is expected. In particular, the rate of reduction in the number of Mainland visitors is even more apparent. Besides, as the economic recovery in Europe and North America is slow and products of Hong Kong have become increasingly expensive under the Linked Exchange Rate System, the per capita spending of over-night visitors in Hong Kong is expected to drop even further.

Many Members have pointed out that Hong Kong is actually resting on its own laurels in respect of tourist attractions. At present, in promoting our tourist attractions, the focus is still the Peak which we are very familiar with, as well as Hong Kong Disneyland, Ocean Park, Avenue of Stars and Giant Buddha in which investments were made long ago. In fact, apart from tourist attractions, mega events for attracting visitors are also the Hong Kong Dragon Boat Carnival, Hong Kong Rugby Sevens and Hong Kong Marathon, with no new events added. 5398 LEGISLATIVE COUNCIL ― 22 March 2017

However, it is not true that the Government has not considered investing in new tourism resources or is unwilling to do so. At present, the Government is persuading Members to support the proposed expansion of Hong Kong Disneyland to further enhance our tourism infrastructure and it is also conducting studies on developing Lantau. Furthermore, there have been enthusiastic discussions on developing the West Kowloon Cultural District which will soon become a new tourist attraction. Nevertheless, under the current political climate, it is still uncertain whether these proposals will be approved by this Council or whether there will be delays time and again.

Nevertheless, I think the biggest challenges encountered by the tourism industry actually come from the digital revolution and the change in young people's concept of travelling. Many young people no longer join tour groups, and they show no interest to take photos at a particular place or tourist attractions and then check in on Facebook. Instead, they want to experience the local culture and stay with local residents. I think the authorities should update their tourism policies to dovetail with the digital revolution and the changing concept of travelling.

According to the information that I have found, the official organization for promoting tourism in Copenhagen has announced its latest development strategies earlier. It points out that the traditional mode of travelling with a large group of tourists visiting a certain place for a few days for sightseeing has come to an end. At present, visitors find information about the tourist attractions and culture of a place from official websites or expert recommendations. They will join activities which we have never thought of. As I said earlier, their concept of travelling has changed. Visitors no longer want to check in tourist attractions on Facebook; they want to have direct experiences.

The organization also considers the traditional mode of travelling outdated and puts forward the idea of "temporary residents". In other words, visitors of the new generation do not want perfect scenic pictures; instead, they want immediate experience comprising of pursuing their interests, building inter-personal relationships and seeing the real faces of the city.

President, it is a bit radical to say that the traditional mode of travelling is outdated and incompatible with the reality or the actual circumstances of Hong Kong. There is something for everyone, so to speak. Some people like taking photos at tourist attractions, while others enjoy shopping in Hong Kong and we should certainly encourage them to do so, for they will bring huge economic LEGISLATIVE COUNCIL ― 22 March 2017 5399 benefits to Hong Kong. Nevertheless, Copenhagen has put forward new tourism strategies in response to the changing concepts. I think it will be worthy for the Hong Kong Government to draw reference from this approach.

Given the time constraints, I will choose two points to share with Members. First, we should discover local new value with emotion connection. Simply put, we should give visitors an impressive experience in Hong Kong so that they will come again. Second, while we should attach importance to the experience of visitors, we should also be concerned about maintaining the quality of life of local residents.

President, I will talk about discovering local new values with emotion connection first. Very often, visitors do not visit tourist attractions nowadays. As I said earlier, they may choose to go hiking in places like Cheung Chau, Sai Kung, Tai O or Lamma Island; or visit streets with special features such as streets selling dried seafood and Temple Street; and visitors who are interested in the unique culture of Hong Kong may go to Canal Road in Wan Chai to watch the traditional practice of "villain hitting". I do not know if the Secretary has considered how these customs can be further conserved. I think Mr Holden CHOW's earlier suggestion of establishing a "cultural transmission and development fund" can achieve this purpose. I really hope that the Secretary will give due consideration. Probably, this cannot be done by the Government of this term, but I very much hope that a "cultural transmission and development fund" can be established by the Government of the next term. This initiative can on the one hand, conserve our fading traditions with cultural characteristics and meet the demands of visitors of the new generation on the other.

Earlier, I visited many streets with special features. In the streets selling dried seafood, some stall operators drying salted fish told me that young people did not join the trade and after a few years, those stalls would disappear. If we can conserve those stalls from the perspective of promoting tourism, we can enrich the travel experience of visitors as well as preserve traditions with cultural characteristics in Hong Kong. How wonderful it will be!

President, given the time constraints, I will briefly talk about the second point. In promoting tourism, the Government should pay attention to the impact of tourists on the quality of life of the community; otherwise, conflicts will arise.

President, I so submit.

5400 LEGISLATIVE COUNCIL ― 22 March 2017

MR HO KAI-MING (in Cantonese): President, a recent advertisement of a travel agency says "go travelling, go all out". Apart from being a slogan, this is also a portrayal of Hong Kong people go travelling. The current trend for Hong Kong people travelling on an individual basis to the Mainland or countries in Europe and America is to engage in in-depth activities. They pick grapes at vineyards, attend meditation classes, practice martial arts at martial arts clubs, and even milk cows. All these are in-depth activities. That said, for a friend coming to Hong Kong for leisure travel, apart from Ngong Ping 360, the Disneyland and Ocean Park, what other quality attractions that will not disgrace Hong Kong can I recommend to him? Frankly speaking, I really cannot come up with any such place.

President, Mr KWOK Wai-keung and I both have a child aged around one year old. Whenever I can spare time, I very much hope to take him to different places to get in touch with various things of the outside world. However, in the current web page of the Hong Kong Tourism Board ("HKTB"), I honestly cannot find any information on recreational venues or facilities in Hong Kong suitable for families like ours. The web page of HKTB contains no information on featured recreational facilities or promotion venues where we can buy baby products, and whether there are baby-sitting rooms or other facilities in such venues. Instead, we learn from magazines the 10 best places in Hong Kong for babies, and some of these places are located in government premises. As such, I often take my son to the Children's Play Room at Tai Kok Tsui Sports Centre where he can crawl for an hour without being tired out. The situation that government web pages do not contain such information whereas they are provided in non-government publications should be rectified.

Hong Kong is not in lack of various facilities and we have the potential to identify other facilities. For example, a common one-day local tour invariably includes visits to a cake shop, Yakult plant, Vitasoy plant and Coca-Cola plant; we simply have no other places to go. For this reason, when I recommend these places to the residents, they say that they have visited those places several years ago and query why they should go again. I can only respond that we have no alternative given the small size of Hong Kong. However, other countries can repackage these plants that not only attract local residents, but also foreign visitors. In the case of instant noodle plants, Hong Kong can draw on the Japanese experience and make the instant noodle plant a spot to attract the visit of tourists.

LEGISLATIVE COUNCIL ― 22 March 2017 5401

If foreign visitors to Hong Kong can learn in person the manufacturing of shrimp roe noodles, sun-dried oyster, soy sauce, beer or dim sum, they will get to learn Hong Kong's cultural traditions in a more interesting way. After repackaging, both local residents and foreign visitors can visit such establishments with Hong Kong characteristics. As far as the tourism industry and revitalizing Hong Kong's manufacturing industry are concerned, this is an initiative that can kill two birds with one stone. However, HKTB has yet to adopt such an initiative. To our disappointment, HKTB would rather promote discounts for purchasing cosmetic products than develop in-depth tourist attractions.

Hong Kong has many potential tourism resources, one of which is bicycles. In foreign countries, there are many cycling tour programmes. A friend of mine, who works with the Correctional Services Department, cycles to visit various countries in Eastern Europe. However, though Hong Kong is a city, there is no cycle tour. The cycle tracks in Hong Kong are disconnected, and cycling is not an option in the urban areas. For example, in Kwun Tong where I serve as a District Council member, the harbourfront of Kowloon East is very beautiful. People can walk from Kowloon Bay direct to Tsui Ping, and, upon the transformation of Tsui Ping River by the Drainage Services Department, to Lei Yue Mun. Regrettably, cycling is not permitted in the promenade park. If cycling is permitted in this spot, one may rent a bicycle in Lei Yue Mun and cycle to Kai Tak; they may even cycle to Hung Hom in the future, and from Hung Hom to the Star Ferry Pier in Tsim Sha Tsui, and then return the bicycle. Isn't this delightful? That said, as different departments are responsible for managing the promenade park, the ancillary facilities are inadequate, bicycles are not permitted inside the park and a convenient bicycle rental system is not in place, Hong Kong's cycle tourism not only lags behind other foreign countries, but even lags behind the Mainland.

Lei Yue Mun, a good place worth visiting by visitors, has remained unchanged over the years in respect of transport, environment or other areas. To put it nicely, there is a nostalgic element; and to put it bluntly, no progress whatsoever has been made. Sam Ka Tsuen Ferry Pier has truly remained unchanged all these years. That said, I know that local community groups have taken the initiative to organize tourism programmes such as Lei Yue Festival, cooperating with local businessmen or food establishments to attract people to pay a visit. The nearby Tin Hau Temple, old quarries and military relics in the mountains are also packaged as part of the tourism programmes. All such 5402 LEGISLATIVE COUNCIL ― 22 March 2017 efforts illustrate that Lei Yue Mun is a good place worth visiting. However, all efforts are made by the community. The Government has not provided any resources or guidance on what should be done. Consequently, to our dismay, Lei Yue Mun is still merely a place for seafood.

In fact, Hong Kong often adopts a one-size-fits-all approach in promoting tourism programmes. Food trucks, being a tourism project, can attract patronage. However, at present, food trucks can only attract local customers. In bustling districts like Central and Tsim Sha Tsui, the business of food truck is deteriorating for consumers are no longer interested in the food offered. Hong Kong must develop in-depth tourism and become a place where visitors can engage in exploration continuously. If we still merely engage in some superficial work, and simply focus on promoting programmes featured by eating and drinking, the development of Hong Kong's tourism industry will not be sustainable.

Regardless of whether we are talking about Hong Kong as a culinary capital or a shopping capital, we must not live off our past gains. As 5% of our GDP comes from the tourism industry, and some 270 000 people are engaged in the industry, we must develop in-depth tourism (The buzzer sounded) …

PRESIDENT (in Cantonese): Mr HO, please stop speaking.

MR HO KAI-MING (in Cantonese): Thank you, President.

MR KWOK WAI-KEUNG (in Cantonese): President, in a tiny place like Hong Kong, it is indeed a miracle for the tourism industry to become one of the four major economic pillars. Unlike Macao which boasts its own gaming industry, Hong Kong can only rely on its edges of flexibility and adaptability.

Visitor arrivals to Hong Kong have dropped since 2015, resulting in a plunge in our economic benefits. The businesses and employees of the tourism, catering and retail industries, etc. have borne the brunt. Shop tenants who manage to pay exorbitant rents in clusters of brand-name shops come under heavy pressure, whether they are selling high-end or low-end products. The primary task of the Government is to address and reverse the current difficult situation of LEGISLATIVE COUNCIL ― 22 March 2017 5403 the tourism industry, as well as optimize the use of and explore tourism resources in Hong Kong. We understand that it is difficult to increase the number of visitor arrivals as this will affect the quality of life of local people. It is therefore more important for the Government to focus on quality by attracting quality tourists with high purchasing power as a way out for the tourism industry.

Despite a series of government initiatives to promote the local tourism industry, for example, by setting up the Mega Events Fund, sponsoring large-scale commercial projects and hosting the FIA Formula E Championship, Hong Kong Wine and Dine Festival and the fire dragon dance of Tai Hang, visitor arrivals have dropped rather than increased. The management of the Mega Events Fund has certainly left a lot to be desired. Nevertheless, has the Government assessed the effectiveness of the Fund? If the authorities lack a reformist mindset and keep rehashing its initiatives, the problems will never be solved.

In recent years, the definition of tourism is no longer confined to shopping and enjoying delicacies. It has been a global trend for visitors to start seeking in-depth tourism projects. They are willing to spend more time to get an understanding of the local conditions and customs of every place. Hence, the Hong Kong Federation of Trade Unions has proposed to develop exploration tourism by making use of the different characteristics and tourism resources of the 18 districts of Hong Kong, with a view to creating a brand-new travel experience which will deepen visitors' understanding of Hong Kong's culture. In this way, they can not only see it, hear it and feel it, they can even tell others about their experience after their trips. Their words of mouth will be our best reputation. They can write articles and post their comments and photos on the Internet to share their travel experience in Hong Kong with others.

Hong Kong was a fishing port in the early stage of its opening. The long-established Aberdeen Wholesale Fish Market has been the place for fish catch to be carried ashore. It should thus be extremely valuable for tourism, enabling tourists to understand a facet of Hong Kong other than finance. Similar fish markets around the world can also be successfully enriched with some projects and elements. Fish markets in Japan, Europe, the United States and Australia, etc. can also attract tourists in addition to selling fish. By integrating the characteristics of the supporting facilities of Hong Kong's fishery culture, a new tourism attraction can be created, which should also help fishermen in their 5404 LEGISLATIVE COUNCIL ― 22 March 2017 restructuring. Together with the Ocean Park, Ap Lei Chau Main Street and the outlets at South Horizons in the Southern District, a potential railway tourism project can be created. Why is there still a lack of coordination?

In addition, I have to mention one point. Every time when Southern District Council members came to the Legislative Council for a discussion with us, they have also mentioned the ways to boost economic activities in the areas near the fish market in the Southern District, such as arranging a bazaar and shows relating to fishermen's culture in the adjacent park and football pitch, or opening the barges berthed at the shore for visits by tourists. However, due to numerous restrictions imposed by the Marine Department and the lack of resources allocated, the discussion has remained just an empty talk after a few years.

Talking about Hong Kong's development, it is essential to mention Dr SUN Yat-sen Historical Trail, which serves as a very good example. The Furen Literary Society (Furen Wenshe) was previously situated at the Pak Tsz Lane in Central and Sheung Wan today, and it was where Mr YEUNG Ku-wan was assassinated. Regrettably, due to unclear road signs, unresolved hygiene problems, and such long-standing problems as a lack of instructional support and mismanagement of facilities, such a quality historic tourist spot has been totally wasted. I have once proposed to the Government to rename the Pak Tsz Lane Park as the Furen Literary Society Park. By preserving the original flavour of this historical event, it will not be detached from the modern times. Regrettably, the Leisure and Cultural Services Department responded that it cannot be renamed. Why can't all historic sites preserve their original flavour? This is a very big problem. In addition, the significance of this park can also be promoted if a statue of Mr YEUNG Ku-wan can be erected there.

In addition, I would like to talk about food trucks, which has been widely discussed recently. To avoid any impact on the restaurants nearby, the policy of the authorities is to impose numerous restrictions on food trucks. Take the Hong Kong Island as an example. At the three parking spaces of the Ocean Park, the Central Harbourfront and the Golden Bauhinia Square, I have often seen tourists passing briskly by the food trucks. Due to a lack of publicity, it would be difficult to attract tourists to stop and patronize. According to some operators with whom I have come into contact, they are now operating at a loss and they fear that they may no longer sustain if the problems remain unresolved. Of course, the Government may claim that there are way too many operators waiting LEGISLATIVE COUNCIL ― 22 March 2017 5405 in line to take over them. However, I think that such a mentality is seriously mistaken. If the Government adopts such a mentality, I fear that food trucks will no longer be able to continue their operation.

In sum, the conditions are relatively ripe for developing cultural tourism in Hong Kong in view of the availability of history, life and cultural characteristics. The key lies with the Government's awareness. If the authorities remain over-ambitious and detach themselves from the reality by hiding in the ivory tower, the tourism industry of Hong Kong will only shrink further. It is essential to give full play to the current tourism resources in promoting local cultural tourism and in-depth tourism, with a view to attracting more tourists to Hong Kong. In this way, Hong Kong's edges in international competition will be enhanced, which helps reinvigorate the local tourism industry and reconstruct the positive image of Hong Kong as a "tourism city". All these tasks indeed brook no delay. Thank you, President.

MR CHAN KIN-POR (in Cantonese): President, the tourism industry is a pillar industry of Hong Kong. Together with various tourism-related industries including catering, retail and exhibition industries, several hundred thousand frontline staff are employed. The tourism industry has supported many Hong Kong people and made great contributions to Hong Kong.

In recent years, our tourism industry has been hit hard and the number of visitors to Hong Kong has been decreasing. As the industry employs a large number of grass-roots workers, if it suffers a sustained downturn, a chain reaction will certainly be resulted, dealing a heavy blow to the retail and hotel industries, and adversely affecting the livelihood of the grass roots. Therefore, I strongly support Mr YIU Si-wing's motion; we should draw lessons from our bitter experience and consider how our tourism industry can be revitalized.

There are many reasons attributing to the challenges faced by the tourism industry. They mainly include changes in the international environment and the internal problems of Hong Kong. Regarding the international environment, there are signs of an economic slowdown in the Mainland in recent years, and coupled with weakening exchange rates for Renminbi to Hong Kong Dollar, spending in Hong Kong has become more expensive. On the contrary, they can have higher spending power in our neighbouring tourist hot spots such as Japan. These places have also actively extended friendly hands to Chinese visitors and 5406 LEGISLATIVE COUNCIL ― 22 March 2017 introduced a lot of facilitating measures to attract them. As a result, some Mainland visitors who originally intended to come to Hong Kong will visit other places instead.

The international environment is a worldwide problem which cannot be resolved by Hong Kong, but problems in Hong Kong must definitely by resolved by us. Since the introduction of the Individual Visit Scheme ("IVS") in the Mainland in 2003, the number of Mainland visitors has increased rapidly year after year. As the industry could hardly attend to the influx of the visitors, it naturally does not have time to think about sustainable development, and the Government's planning work has also been stagnant. Consequently, the tourism industry attaches importance to quantity rather than quality. As we are all aware, having a homogeneous source of visitors is very risky; once Mainland visitors go to other destination instead, the impacts on Hong Kong are immediately felt.

I think we should consider how our tourism industry can be improved. We should not rely solely on the Mainland market, but should try to develop more diversified visitor source markets to attract more high-spending overnight visitors to Hong Kong, attaching importance to both quality and quantity. Thus, I support Mr YIU Si-wing's motion on comprehensively collating resources with tourism values, and based on the collation results, proposing enhancement measures

I agree that Hong Kong needs to enhance tourism facilities and develop new strengths. Besides being an international metropolis, a gourmet and shopping paradise, Hong Kong has many natural attractions with local characteristics that can attract many foreign visitors, including the world-class Geopark, ancient walled villages with traditional cultural features, Aberdeen the fishing village and country parks with beautiful scenery, etc. In the past, we have not well utilized these readily available tourism resources, and now we should take this opportunity to vigorously develop tours with local characteristics. If the authorities do a good job on planning, carry out promotional and publicity activities in a systematic manner, and provide appropriate transport connections, I believe we should be successful.

To attract long-haul international visitors, local characteristics are vital. If foreign visitors want to experience the life in an international metropolis, they may well travel to New York and London, and they need not travel long distances LEGISLATIVE COUNCIL ― 22 March 2017 5407 to Hong Kong. Therefore, to attract international visitors, we have to promote tours in a metropolis with local characteristics, as this will be more attractive to international visitors. Moreover, the expenses on developing such tours are not too high, and the merits include stimulating the local economy, diverting visitors to reduce pressure of visitor flows in popular tourist districts; we can really achieve many things at one stroke.

I believe Hong Kong must rebuild its hospitable image. In recent years, owing to the endless pursuit of visitor growth, the busy urban areas and tourist districts were often packed with people, and coupled with the uncivilized behaviours of some visitors, resentment among local people had been aroused. At the same time, the activities against parallel traders and the act of a small minority of people to drive away Mainland visitors under the banner of localism had infuriated Mainland visitors. At present, the number of visitors to Hong Kong has decreased and conflicts between local residents and visitors have been slightly relieved. But once the number of visitors increases again, the conflicts may intensify. Hence, I hope that the Government and the industry will find ways to resolve the conflicts and rebuild the hospitable image of Hong Kong; otherwise, even if we have outstanding tourism infrastructure, local residents and visitors are still unhappy and the loss outweighs the gain.

Lastly, I think the tourism industry must be determined to combat the black sheep in the industry. At present, there are still a number of low-fare Mainland tours to Hong Kong which are actually shopping tours, with a lot of time spent on coerced shopping. The negative news has dealt a serious blow to our tourism image. The tourism industry should join hands with the Mainland authorities concerned to prohibit these low-fare shopping tours, so as to prevent visitors from being ripped off again.

President, I so submit.

DR CHENG CHUNG-TAI (in Cantonese): President, I am very grateful to Mr YIU for suggesting that the Government should give full play to the edges of local tourism resources to boost Hong Kong's local tourism industry. However, when we discuss this issue, we must note the reason why it is so hard to leverage the edges of local tourism resources. How come it seems that we cannot find a way out in the process of discussing and implementing relevant proposals? How come it seems that we cannot make this happen? In my view, this is all because 5408 LEGISLATIVE COUNCIL ― 22 March 2017 of one reason―we have no culture. The edges of local tourism resources are not just about how much money can be earned, which tourist spots are attractive, or things like that. This issue is closely bound up with cultural policy. I will briefly talk about this from four perspectives.

The first perspective is related to historical culture. The Hong Kong Government has never valued local history. From a recent incident, we can easily and clearly see what local resources mean to us. Local buildings are our resources, but as we have no culture, we do not know how to preserve Hung Lau in Tuen Mun. Members, have you ever laid eyes on Hung Lau in Tuen Mun over the past few years? Do you know what it looks like? Have we valued its history? Hung Lau is a Grade 1 historic building, but over the past few years, it has actually been used for providing subdivided units. It did not receive much public attention until recently, when the public learnt that it was threatened with demolition for no reason after being sold to a Mainlander for $5 million. But that was too late; over the years, we have done nothing to preserve this monument which might be connected with the revolution initiated by Dr SUN Yat-sen.

Besides, the heated controversy surrounding the State Theatre, which is very close to us on Hong Kong Island, is another example showing that we have no culture. The historical culture represented by this cinema is perhaps not as old and remote as that represented by Hung Lau. Built in 1959, this cinema is characterized by its Soviet-style architecture with a parabolic roof structure which commands the admiration of Hong Kong's local architects. Yet in 1997, that is, 10-odd or 20 years ago, it was used as a billiard saloon. And now we are talking about local resources―how about that! From 1997 up till now, have we examined our own history? Have we paid due regard to our identity as Hong Kong people and our buildings from bygone days? No. Some people may say that I am wrong, as there are examples of exceptions to what I said. Well, just look at the Central Piers area not too far away from the Legislative Council Complex; is it not something rebuilt by the Government? More ridiculous still, it was rebuilt after being demolished. It is neither fish nor fowl. There are more examples involving buildings, but I am not going to talk about every single one of them in detail here. Historical culture forms the basis of our knowledge of Hong Kong's local resources. Without a sense of identity, history and culture, there is no local tourism.

Secondly, we, Hongkongers, are Cantonese people who take pride in our food culture. Speaking of this, let me start with my conclusion: Hong Kong has degenerated from "a gourmet paradise" into "a hell of abominable foods". Why? LEGISLATIVE COUNCIL ― 22 March 2017 5409

Because we do not know how to cherish our local culture. Instead of discussing the diversity and richness of Cantonese cuisine, I will focus on our local snacks. Egg waffles, for example, became truly famous only after they were introduced into the United Kingdom. Has the Hong Kong Government ever valued our local snacks? I believe Secretary Gregory SO also knows that egg waffles are now very famous in the United Kingdom, where they have become a type of puff.

Why do I say that we do not value our food culture? Since November last year, there have been media reports that a number of century-old shops selling local snacks in Hong Kong have come under the threat of demolition or elimination because of toilet problems or their possible non-compliance with the existing ordinances relating to food and environmental hygiene. These include bean curd pudding shops in Sham Shui Po and Kowloon City―a Chief Executive candidate has even put on a show at one of these shops. Of course there are bean curd pudding shops in Mong Kok too, but "Mongkokers" must know about the shops of Kung Wo Bean Curd Factory in Sham Shui Po and Kowloon City. The one in Sham Shui Po, for instance, started operating as early as the 1960s. Both shops have 50 years of history. Leaving aside the stoves they use to make bean curd pudding, the shops themselves are historical relics. What have we valued? Members, we are now saying eloquently in this Chamber that we highly value this and that, and yet we cannot even safeguard bean curd pudding. We do not understand our food culture.

The owners of these bean curd pudding shops have written to various departments including the Hong Kong Tourism Board ("HKTB") and the Food and Environmental Hygiene Department to seek assistance, but the departments have passed the buck to each other. This is a bureaucratic problem. When neither the Food and Health Bureau nor HKTB cares about them, who will care about them? Members of the general public only want to buy a bowl of bean curd pudding from these shops, but just because these shops do not have a toilet required by their licence, the Government has forbidden them to sell food for consumption on the premises. These small businesses have operated for some 60 years, and now, all of a sudden, they are threatened with elimination. This is because we have no culture.

Some Members have mentioned earlier that Hong Kong is blessed with the beauties of nature, such as mountains, peaks and hills. This involves the natural heritage of Hong Kong. Members, ask yourselves this question: Have we ever 5410 LEGISLATIVE COUNCIL ― 22 March 2017 valued and cherished the natural heritage of Hong Kong? I trust that all of you do remember clearly that the construction of the third runway at the airport has resulted in Chinese white dolphins being killed or driven away from their habitat. The Government has vowed to develop Lantau Island and turn it into a treasure island for tourism. It plans to have shopping malls built in the fishing village of Tai O, which is hailed as the Venice of the Orient, and to extend the cable car system to Tai O. For this reason, Tai O Cultural Workshop, a non-governmental organization set up by local residents of their own accord, has been eliminated. At the end of the day, this is because we have no culture.

I have just talked about our history, food and natural environment. An Honourable colleague has mentioned that Hong Kong has a unique living culture, and suggested inviting Japanese people to organize tours to Hong Kong to view our gorgeous wet markets. Take Yat Tung Market in Tung Chung for example. This market has been renovated by Link REIT, and now there is an aeroplane model fixed to its ceiling. What is that for? Tourists visiting this market for sightseeing will only hinder the small traders there in doing business. On the one hand, these small traders are being oppressed by Link REIT, but on the other, they need to do business there. This is unreasonable by any standard.

So, President, from these several perspectives alone, it can be seen that we have never valued Hong Kong's history, food, natural environment and living culture. Now that Members are saying today that the Government should give full play to the edges of local tourism resources, I call upon the Government to get down to basics and start afresh by improving Hong Kong's cultural policy.

Thank you, President.

DR PRISCILLA LEUNG (in Cantonese): President, travelling is delightful. As members of a family are generally busy at work, if they can travel abroad together, they can have a relaxing time. I think there is even a chance to eliminate "generation split"―splitting views of people of different generations. If the whole family travel together, they can, as stated in a cruise advertisement, "escape completely", they can put aside all daily pressures and conflicts. Can visitors to Hong Kong escape completely from work and enjoy the fun of travelling?

LEGISLATIVE COUNCIL ― 22 March 2017 5411

In my view, our largest and most valuable resource is the Victoria Harbour. It is also the most important memory of local residents. Many years ago, many large ferries carrying passengers across the Victoria Harbour to and from work. People can also enjoy the night view of the Pearl of the Orient. How can we make good use of the beautiful Victoria Harbour?

I agree that Hong Kong has no foresight at all in developing the tourism industry. In 2011, the authorities cancelled, on the ground of traffic, a number of ferry routes that I had all along been familiar with, including the route from Hung Hom to Central and the route from Hung Hom to Wan Chai. Recently, there are discussions that the route from Tsim Sha Tsui to Central may also be cancelled due to commercial reasons or insufficient profits. These ferry routes carried Hong Kong people's nostalgic feelings and local memories. The junk called "Duk Ling" is still sailing across the Victoria Harbour; its beautiful red flags present the ancient look of Hong Kong and reflect the development of Hong Kong from a fishing village into an international metropolis today.

Speaking of how to make good use of the Victoria Harbour, I naturally think of the Kai Tak Cruise Terminal. As members of the public have to travel a long way to the Cruise Terminal, they do not want to go there and spend money. Foreign visitors who come to Hong Kong by cruise have to take a coach and then connect to inland transportation, and they will only reach the shopping centres in Tsim Sha Tsui after travelling in crowded public transport. Therefore, I hope marine services can be provided for local and foreign visitors. I am not talking about hydrofoils but ferries in the past, moving in slow speed. Passengers travelling from Kai Tak to Tsim Sha Tsui can enjoy the beautiful sea view along the way. However, the authorities will only consider if ferries will improve the traffic situation and whether they can provide connection to the West Kowloon Cultural District, etc. Hence, I find this regrettable.

Talking about tourism, we should take into consideration people of different generations. I hope that some high-tech events can be held in Hong Kong. I visited Art Basel, one of the counters exhibited many unmanned aircrafts. The unmanned aircrafts flying in the night sky gave out very beautiful lighting, just like flying saucers of different colours. We should host such events so that young people and international visitors will realize that Hong Kong is an international metropolis. We should also follow the high-tech trend; for example, having many very beautiful women robots walking around. A few years ago, my son recommended me to watch the movie entitled I, Robot; I was elated by the high-tech world. 5412 LEGISLATIVE COUNCIL ― 22 March 2017

In fact, local artists can sell their works to foreign countries; Hong Kong's ethnic minorities have very distinctive cultures, such as the culture of India, Pakistan and Sri Lanka which include food, dance and movies. Korea has put in a lot of resources promoting movies and food. Many years ago, owing to the drama Dae Chang Kum, Hong Kong people become interested in Korean food. Later, Korea's cosmetics and garments have also taken up a place in the international market.

However, I cannot agree with Mr CHAN Chi-chuen. His proposal is controversial. For example, he is hard selling that many homosexual friends have high spending power, so Hong Kong should hold events catering for them and follow the example of Taiwan. I do not agree with him as I think that travelling is basically pleasure seeking, and one should not forcibly raise some controversial issues through travel packaging. I am afraid that this will give rise to a lot of protests, demonstrations and clashes, ruining for no reason some happy things just like what happened in connection with the constitutional reform. I do not want to see that happen.

Tourism that brings people happiness requires cooperation among Policy Bureaux because areas such as development, transport, commerce and industry, environment and home affairs are involved. The West Kowloon Cultural District is now connected to the inner area. Apliu Street in Sham Shui Po is rich in traditional features; will shadow play still be staged for the audience? We can explore that. A number of Members have just said that many things have been ignored including some food such as egg puffs and bean curd pudding, etc. Why can't food trucks sell fermented bean curd; why must they sell designated food? I agree that food trucks really fail to meet the expectations of the public and I hope that this situation can be slowly improved.

It is my wish that when we discuss the development of the tourism industry, the discussion is conducted happily, and controversial issues or controversial legislation should not be involved as this may be counterproductive. We really should not adopt such an approach. I hope that we can talk about tourism happily and allow foreign visitors to Hong Kong to enjoy the beautiful Victoria Harbour. I also hope that the Secretary will consider making inter-bureau efforts to promote the tourism industry.

President, I so submit.

LEGISLATIVE COUNCIL ― 22 March 2017 5413

MR STEVEN HO (in Cantonese): President, I have to thank Mr YIU Si-wing for moving this motion. Just now, I heard Dr Priscilla LEUNG say how beautiful the Victoria Harbour would be if ships and ferries were sailing on the waters, like the harbours in other countries. Two years ago, my sister visited Hong Kong with her foreign husband. When my brother-in-law asked me what special places he could visit in Hong Kong, I thought of the harbour cruise in a boat named Aqua Luna. Yet, it was very difficult to reserve a place, especially during the peak tourist season. Dr Priscilla LEUNG, our Victoria Harbour is indeed very beautiful but the tourist facilities are extremely inadequate. With one Aqua Luna and another ferry that also serves meals, is that sufficient? The Government has to provide Dr LEUNG with some figures so as to study how development can be made.

The sea is our excellent natural tourism resource. The United States has a big fishing industry, with 70% being leisure fishery. Despite having a coastline of over 1 000 km long, Hong Kong has not taken good advantage of this edge. A few years ago, visitors under the Individual Visit Scheme ("IVS") created a host of problems disrupting people's livelihood. We admit that there was a high concentration of IVS visitors in a few shopping districts and I think the Secretary has heard such views times and again. At that time, we had looked into the possibility of identifying new attractions but so far, not many new attractions have been identified.

Like Mr YIU, we also wish to extend Hong Kong's tourist attractions outwards to the sea, offering visitors a richer and more comprehensive tourism experience. The development of leisure fishing is one feasible option. However, the Government's policies and measures are highly inadequate. It always talks about reclamation, of which I am not an ardent supporter. When reclaiming land or developing new development areas, has the Government considered developing angling facilities, such as building an angling base? Some may say that there is no land available but is it possible to set up some angling bases in newly reclaimed areas? As the operation areas of the fishing industry have kept shrinking due to reclamation, establishment of marine parks and extension of airport runways, the fishing sector has great grievances.

In damaging the marine resources, the Government has not formulated any measure to help the transformation of the industry to tie in with the tourism industry. I am very disappointed about that. We hope that the Government will establish some leisure angling bases in the southern or western part of the 5414 LEGISLATIVE COUNCIL ― 22 March 2017 newly reclaimed areas. When Hong Kong people go to Thailand, as soon as they get off the plane, they will receive pamphlets introducing local one-day tours. The same arrangement should be made to inbound visitors. After paying a few hundred dollars, visitors can have a guide to take them around and they can engage in various marine activities. I hope that foreign visitors to Hong Kong can visit our angling bases or they can take boat cruise. Visitors do not only have the option of buying brand name handbags at urban centres or queuing for a harbour cruise on Aqua Luna, a small boat with limited capacity. I wish to provide new experiences for our visitors and hope that the Government will implement policies in this regard.

Apart from taking advantage of the sea, we also like to promote eco-tourism or leisure agricultural industry. We have had such a plan for many years. I always tell the Secretary for Food and Health that we are unable to develop our farmlands as we are restricted by all kinds of health, environment and land use legislation. If I want to sell products made from the strawberries I grow, I have to obtain a licence for food processing; and if I sell strawberry juice, I have to obtain another licence and then I have to pay land premium because that involves commercial activities. If I grow vegetables, people can come to my farm to buy my produce, but the law does not allow me to collect money from people who come to visit my farm without buying vegetables. All these rules and regulations pose a great obstacle to the integration of agriculture and tourism.

Hence, I hope that Gregory SO, the Secretary for Commerce and Economic Development, can join hands with Secretary Dr KO to formulate new industry management approaches for the 4 000-odd hectares of farmland in Hong Kong, so that farmers can, apart from farming, set aside a small portion of their farmland to promote leisure agriculture, such as providing limited catering services by using their produce as ingredients of their dishes. People do not only have to choice of having American steaks or Angus beef. Can we use our farm produce to make signature dish or even sell food products made from our farm produce? These all involve the law concerning land use. I hope that the Government will give due consideration to my suggestions; otherwise, there is no way we can build up Hong Kong people's confidence in the local eco-agricultural industry or the leisure agricultural industry.

(THE PRESIDENT'S DEPUTY, MS STARRY LEE, took the Chair)

LEGISLATIVE COUNCIL ― 22 March 2017 5415

Many young people in Hong Kong like going to Taiwan and Japan, etc. whenever they have long holidays. What kind of activities will they engage in? They may stay in a leisure farm for a couple of days to experience the farm life and appreciate the beautiful nature. But in Hong Kong, even homestay lodgings are not allowed. How will foreign people perceive us? They come to Hong Kong for the mere purpose that Hong Kong is a gourmet paradise and a shoppers' paradise. Are there other reasons? Do they come to eat fish balls? This is rather tricky. Hence, I hope that the Government will be more in touch with reality and refrain from managing Hong Kong's affairs from the perspective of a ruler; rather it should play the role as service provider to serve the public. It should enact tailor-made legislation and amend inappropriate legislation from the perspective of the people and users. Will the Legislative Council impede the implementation of policies that are conducive to the people's livelihood? At least the pro-establishment Members will not do so. The opposition Members sitting on the other side of the Chamber may say that the Government acts as if it cares for the people's livelihood, but there is actually a conspiracy behind. But obviously we are not like that. But if the Government does not propose legislative amendment, we are unable to do anything even if we want to render support.

In the last 20 or 30 seconds, I have to apologize to Mr YIU Si-wing. I mentioned the concept of leisure angling bases to him three or four years ago. I wonder if he remembered. At that time, Mr MA Fung-kwok and I proposed to him the idea of holding an "Angling Grand Prix" with Hong Kong being one of the tournament stations. We could join hands with China Recreational Angling Association and organize activities in Macao, Hong Kong, Shanghai and Beijing. Angling enthusiasts can thus participate in angling competitions in Hong Kong. It is a shame that this idea has yet to come to fruition. Why? Perhaps the government systems are too rigid. I hope that the Government has the ability to perfect itself, and it will put forward new proposals to promote Hong Kong's tourism industry (The buzzer sounded) … as well as the fishery and agriculture industries. Thank you, Deputy President.

MR LEUNG CHE-CHEUNG (in Cantonese): Deputy President, Hong Kong people love to travel, and the most popular destinations are Japan, Taiwan and Korea, etc. The tactics that these places employed to promote tourism and attract visitors are indeed more varied than those of Hong Kong, including the promotion of festivals, shopping and scenery of the four seasons, and much effort 5416 LEGISLATIVE COUNCIL ― 22 March 2017 has been made on the promotion of culture as well. For Hong Kong, just as my colleagues have said, its status as a shoppers' paradise has attracted more than 50 million visitors to come here for shopping every year as a major tourist programme. But can this become an important competitive edge that would give impetus to our tourism industry? While being a shoppers' paradise is definitely our competitive edge, can we rely on this alone to attract visitors?

Going back to the tourism industry, it is one of the four economic pillars of Hong Kong. Visitor arrivals dropped by 2.5% in 2015, but it is even worse in 2016 with a decline of 4.5%. In the first half of 2016, total expenditure associated with inbound tourism was about $144 billion, but this represents a year-on-year decrease of 13.6%. A decline in the number of visitors proves that we have failed. Therefore, in this connection, I think Hong Kong must diversify and adopt appropriate measures to enhance our tourism features, with a view to giving full play to the edges of local tourism. Mr Michael TIEN proposed to "change the previous development approach for tourism projects which was quantity driven, lacking in depth and superficial", and to focus resources on the development of world-class tourist attractions. This is indeed a great idea as he seeks to develop world-class tourist attractions.

What world-class tourist attraction does Macao have? Casinos. Our adjacent Mainland, on the other hand, has built a number of artificial attractions, including shopping malls, which are considered very useful by the Mainland. However, Mr Michael TIEN opined that it would be sufficient to have only one world-class tourist attraction. As in the case of buying food, while some people like vegetables, some like carrots; not all people like the same kind of food. The development of world-class attractions can only cater for the interest of a small number of people, so how about the others?

A few years ago, my colleagues and I proposed to develop homestay lodgings in the hope of attracting visitors by offering experience, accommodation and culture of local characteristics. On the face of it, is seems that the SAR Government is very willing to explore further. However, the legislation has failed to keep up with the requirements of homestay lodgings. For example, the Government has all along stressed that the legislation regulating homestay lodgings will model on the Hotel and Guesthouse Accommodation Ordinance and it does not intend to amend the existing legislation in the light of homestay lodgings. As a result, Hong Kong has missed the golden opportunity for developing homestay lodgings.

LEGISLATIVE COUNCIL ― 22 March 2017 5417

Since no progress has been made in the development of homestay lodgings, it is simply not possible for rural villagers, especially young landlords, to make use of their properties to promote homestay lodging services. Worse still, there are various obstacles. Some people once used caravans to provide homestay lodging services, but then the Government brought the case to court. The operators had spent huge sums of money, but still, they were unable to provide such services. Therefore, if the Government is to promote or create tourism edges for Hong Kong, it must proactively provide more appropriate assistance in various respects.

Mr Holden CHOW suggested to "promote, protect and transmit local culture, customs and traditional techniques", and I strongly agree with this. For example, the Cheung Chau Bun Festival held on Buddha's Birthday and the ceremony of making a wish at the Wishing Tree in Lam Tsuen during Chinese New Year are unique features that cannot be found in other places. While these features are attractive to visitors and local residents, the latter have mixed feelings about these two festive events. They certainly like them because such events are local characteristics which they take pride in, but the annual Cheung Chau Bun Festival, for example, attracts so many visitors that ferries to Cheung Chau are fully occupied. Leaving the island by ferry is not easy either, and visitors have to wait for hours before they can get on board. Cheung Chau residents are therefore very frustrated and avoid going out on that day. They would rather stay home as it would be difficult to get a place in a restaurant during meal hours. To them, this is undoubtedly a painful experience. As a matter of fact, transportation is a very essential tourism-related infrastructure and it would be wrong for the Government to maintain that such service is sufficient.

The promotion of tourism does not only require the necessary legislation, but also transportation, catering and other complementary facilities, and all of them are essential. Therefore, in my opinion, when the Government promotes festive events, it should also take into consideration the necessary tourism complementary facilities and the receiving capacity of the attractions as excess is as bad as deficiency.

I so submit. Thank you.

IR DR LO WAI-KWOK (in Cantonese): Deputy President, first of all, I would like to thank Mr YIU Si-wing for moving the original motion. As one of the pillar industries in Hong Kong, the tourism industry contributes about 5% to our 5418 LEGISLATIVE COUNCIL ― 22 March 2017

GDP and employs about 270 000 people. Moreover, tourism has been driving the development of many Hong Kong industries such as retail, hotel, food and beverages and transport. Great contribution has been made by the tourism industry to the economy of Hong Kong. Hence, Honourable colleagues from the Business and Professionals Alliance for Hong Kong and I are gravely concerned about the measures to be taken to promote the sustainable development of Hong Kong's tourism industry. The amendment proposed by Mr Jeffrey LAM today underlines some of our major concerns and specific proposals.

Although Hong Kong is still one of the most visited cities in the world, a number of local tourist attractions have been operated for years, and some complementary facilities have become outdated. Hence, Hong Kong's appeal as a travel destination has been waning. Meanwhile, the global tourism industry has become more competitive, with different places either opening up new attractions or streamlining tourist visa application procedures. All these factors, together with a strong Hong Kong Dollar against many foreign currencies, have undermined the desire of visitors to travel to Hong Kong. While some new tourist attractions, such as Kai Tak Fantasy, the West Kowloon Cultural District and the expansion of the Hong Kong Disneyland, are under planning and construction, some time is needed for their commissioning. Clearly, it is a case that the steed starves while the grass grows.

I consider that in order to suit the remedy to the case, the SAR Government should timely adjust its development strategy for the tourism industry by taking short-, medium- and long-term countermeasures respectively. Firstly, the Government should capitalize on Hong Kong's advantage as a meeting point between Eastern and Western cultures and explore the potentials of existing tourism resources, including the natural landscape of geoparks, country parks, and so on; the cultural landscape of museums, historic buildings, intangible cultural heritage items, and so on; as well as various major events such as Hong Kong Rugby Sevens and the Hong Kong Arts Festival, so as to promote diversified and high value-added tourism projects in a holistic manner.

Secondly, the Government should properly plan and allocate resources for the development of new attractions, as well as the improvement of the relevant complementary facilities. For instance, according to the SAR Government, a tender will be invited this year for the Kai Tak Tourism Node in the vicinity of the Kai Tak Cruise Terminal to develop a world-class tourist attraction. I hold LEGISLATIVE COUNCIL ― 22 March 2017 5419 that the authorities should also expedite the planning and construction of the Kai Tak Sports Park, so that more international sports competitions and large-scale events can be organized.

Upon the successive completion of the Hong Kong-Zhuhai-Macao Bridge and the entire Tuen Mun-Chek Lap Kok Link, the authorities should strive to expedite the construction of the third runway at the airport, and improve the relevant transport connections and complementary infrastructure, so that the airport at Chek Lap Kok and its surrounding areas will form a large-scale integrated hub where flight routes, railways, highways and ferry routes converge. The authorities should also fine-tune the Airport Authority's SKYCITY project by actively making reference to the experience of the Amsterdam Airport Schiphol in the Netherlands in developing its airport city, so that a dedicated area incorporating such functions as tourism, convention and exhibition, business, retail, dining and entertainment can be planned and developed.

After the authorities completed the public engagement exercise for the development of Lantau along the overall direction of "development for the north, conservation for the south" in early 2016, it is expected that the blueprint for Lantau's development will be published in the first half of this year. In my opinion, the authorities should also take into account the development strategy and planning of Lantau and its surrounding areas, as well as conduct a comprehensive environmental impact assessment study. Moreover, the representativeness of the Lantau Development Advisory Committee should be enhanced through cross-sectoral membership. Apart from the relevant heads of departments, its membership should also comprise representatives of professional sectors such as the planning, construction and engineering sectors; representatives of the tourism, logistics and environmental protection industries, and so on; representatives of green groups and conservation organizations; as well as people from Lantau and its adjoining areas, so as to draw on collective wisdom for putting forward practicable proposals.

Separately, the authorities should make good use of the SAR Government's network of overseas economic and trade offices, as well as offices in the Mainland to strengthen the publicity, promotion and cooperation in relation to Hong Kong's tourism industry, including discussing with the relevant Mainland authorities the enhancement of the policy of Individual Visit Scheme. In particular, the authorities should step up promotion among countries along the Belt and Road, with primary focus on developing new visitor sources and attracting visitors with high spending power or young or overnight visitors.

5420 LEGISLATIVE COUNCIL ― 22 March 2017

Notwithstanding the above, it is equally important for the SAR Government to expeditiously formulate long-term and comprehensive policies, as well as make overall planning for our tourism industry. Besides, work should be done to improve the relevant system and framework, so as to further promote tourism development in Hong Kong. Incidentally, the Travel Industry Bill, which seeks to provide for the establishment of a statutory body, the Travel Industry Authority, and the legislative framework for the licensing and regulation of travel agents, tour guides and tour escorts, received its First Reading in Council today.

As the tourism industry is related to a number of policy areas, I think the authorities should consider the establishment of an inter-departmental body to oversee and coordinate the development of tourism industry and other related industries, such as in respect of resource allocation. Apart from expanding the Hong Kong Convention and Exhibition Centre and the Asia World-Expo, the Administration should also increase venue supply from the perspective of land use planning, so that large convention and exhibition centres can be constructed to attract the holding of more international conventions and exhibitions in Hong Kong, thereby increasing the number of convention and exhibition visitors.

Deputy President, as far as the implementation of the tourism development blueprint and planning is concerned, the authorities must ensure communication with different stakeholders, while improving inter-departmental coordination and seeking the cooperation of the relevant districts. On the part of the tourism industry, it should improve the remunerations and training of practitioners, in order to enhance the service quality as well as receiving capacity. All parties must work concertedly to uphold Hong Kong's image as a hospitable travel destination.

Deputy President, I so submit.

DR LAU SIU-LAI (in Cantonese): Deputy President, first of all, I would also like to thank Mr YIU Si-wing for moving this motion, because through discussing how to make Hong Kong a more attractive tourist city, we can actually think about how to make Hong Kong a more liveable city. A city is attractive only if it is truly liveable.

LEGISLATIVE COUNCIL ― 22 March 2017 5421

Very often, when we discuss how to make Hong Kong an attractive tourist destination, we will consider whether we can provide more tourist attractions and make them world-class; as mentioned by Mr Michael TIEN, we should develop world-class tourist attractions. Still, we should first consider one question: How do we define a tourist attraction nowadays? Do we need to build one more giant Buddha statue, one more Disneyland, or other hardware facilities? I do not question the role of such hardware facilities, as they can undoubtedly provide visitors to Hong Kong with certain places to go. However, the concept of tourism has started to change. The current trend is towards staying longer in a destination for in-depth tourism.

By the so-called in-depth tourism, people visit a place to truly get to know the social customs of the place; acquaint themselves with the daily lifestyle of the locals in terms of clothing, food, housing and transport; and acquire a better understanding of the authentic culture of the place and the ethos of the locals. In the case of Taiwan, while there are many famous tourist attractions, what truly makes it an attractive tourist destination is the humanity of its people. This is not only the most beautiful attraction of Taiwan, but also a world-class trump card that Taiwan has been playing all along.

As for Hong Kong, what are our tourism features and social customs? In the past, we used to perceive Hong Kong as a world-class shoppers' paradise, or a world-class and international gourmet paradise. This perception has existed for a long time. Today, when we are faced with the concept of in-depth tourism embraced by visitors who want to truly get to know the way of life of Hong Kong people, we realize that Hong Kong can no longer satisfy the demands of such visitors, and needs to make changes in certain areas. Visitors arriving at Hong Kong can only see well-known brands and gourmet food which are available everywhere in the world. Many visitors have told us that they cannot see the local food and local culture of Hong Kong. What exactly are the features of the local culture of Hong Kong? We need to think about this.

This aside, what is Hong Kong like in terms of its people's ethos and its human landscape? Is Hong Kong a city of humanity? Speaking of this, Hong Kong does have a world-class attribute: it is not a city of hospitality or humanity, but a city of cold indifference where community relations are minimal. Why? Because everyone here is enduring the world's longest working hours, and after they get off work, they are so tired that they look like zombies walking around. 5422 LEGISLATIVE COUNCIL ― 22 March 2017

What is Hong Kong most famous for? It has been reported in the press: If you want to see the cold poker face of a workaholic, come to Hong Kong and you will see it.

Therefore, if we are to beautify the human landscape of Hong Kong, we must legislate for standard working hours, which seems unrelated to the issue at hand. Anyway, let us not stray too far from the subject. Can we build better community relations in Hong Kong, so that Hong Kong will be more capable of developing its local culture and showing a sense of humanity? In this regard, a bazaar policy is actually a very important entry point. A bazaar policy, if implemented, can allow members of the general public to sell products made by them, and can bring together attractive commodities over time so that they will become part of our local culture. This can be done among grass-roots people and women. In addition, young people can do creative street arts performances, which can in turn develop into a kind of local culture. Many artists can perform in the streets, and their performances are very attractive local characteristics.

When it comes to more important local characteristics, Mr Steven HO has mentioned earlier that Hong Kong even lacks places for people to buy skewered fish balls to eat. Does Hong Kong need a night market? We have discussed various ideas on many occasions. At the meetings of the Subcommittee on Issues Relating to Bazaars, Members from different political parties or different camps unanimously agreed that we should expeditiously implement a bazaar policy. This is because bazaars, however small, can really serve to improve the livelihood of Hong Kong people, safeguard the grass roots' right to earn a living, and even bring our local characteristics into play, so as to revitalize or support our tourism industry. In the light of this, we should indeed expeditiously implement a bazaar policy.

It is true that after many years of discussion, the Government's attitude has changed a little, but over the past two years, the Government has only kept saying that it keeps an open mind. What does it mean by an open mind? It seems that the Government has not provided any proactive assistance. Any organization interested in setting up a bazaar has to knock at the doors of different government departments one by one, asking what should be done. Given the extremely mysterious land information and exceedingly complicated application procedures, there is simply no way that ordinary hawkers can do business in a bazaar; even middle-class applicants or artists do not know what they should do. It usually takes an interested organization half a year to go through the application process LEGISLATIVE COUNCIL ― 22 March 2017 5423 for operating one bazaar. So, in order for a bazaar policy to be implemented, I hope that the Government will establish a dedicated department to streamline the process, make public the land information and, ideally, set up a bazaar in every district on a pilot basis, so that bazaars will come on stream as soon as possible.

More importantly, we have entrusted community organizations with many bottom-up responsibilities. Actually, a community organization has to put in a lot of manpower and resources when applying to operate a bazaar, but no support has been provided by the Government in this regard. Therefore, I hope that the Government can establish a seed fund to promote the implementation of a bazaar policy, and genuinely adopt a bottom-up approach to promoting bazaars which showcase Hong Kong people's vitality and our local culture.

Once again, I thank Mr YIU Si-wing for moving this motion. This concludes my speech. Thank you.

MR SHIU KA-CHUN (in Cantonese): Deputy President, first of all, I would like to thank Mr YIU Si-wing for moving the motion on "Giving full play to the edges of local tourism resources". I thank him not out of courtesy, for I especially like his use of the word "tourism". The words "sightseeing" and "tourism" seem to be interchangeable, but there are actually great differences between them. Sightseeing is an act of consumption, a buy-sell relationship. A group of people travelling to a beautiful spot to take photos, or even spend money to hire a guide to bring them to places for food, drinks and fun, and ultimately they buy souvenirs before returning home. This is what we call sightseeing. Tourism is certainly more sophisticated than sightseeing in the sense that visitors develop a relationship of affection with local residents, rather than a pecuniary relationship. Visitors can live, eat, chat and work with local residents, taking care of their children and having fun. By living together with local residents, visitors may acquire knowledge, wisdom, different perspectives to perceive things and certain thoughts on life. This is what we call tourism, and what we are discussing today is tourism.

For this reason, if a Member merely attaches importance to Mainland visitors, holding the view that living off our past gains in respect of tourist attractions is not feasible, he is basically talking about sightseeing. If one simply emphasizes development of new tourist attractions, he is basically talking 5424 LEGISLATIVE COUNCIL ― 22 March 2017 about sightseeing. Such a mode of thinking that merely pursues development and further development has adversely affected Gods knows how many sectors in Hong Kong. The social welfare sector is one of the sectors being adversely impacted. In order to meet management demand, the sector is required to pursue incessant development, resulting in experience being unable to accumulate for the sake of innovation. The sheer emphasis on width rather than depth in all cases will only cripple the sector.

Against the backdrop of globalization today, what visitors pursue is characteristics, namely local characteristics. Presently, tourism development of Hong Kong always focuses on seeking innovation and catching up with other countries. Why do visitors choose Hong Kong if they merely seek identical experience? Are they attracted by the size of the Hong Kong Disneyland? Are they attracted by the special features of Hong Kong's shopping malls?

Regrettably, officials who tilt towards the business sector have always come up with some fallacies when assessing the Hong Kong economy. They have all along lauded Mainland visitors to the neglect of visitors from other sources, and have made use of various publicity channels to mislead the tourism industry, the retail industry and the public, resulting in market development being constantly restrained. In other words, the tourism industry of Hong Kong has not been operating under free market principles over the recent 10 years.

The saying that any reduction in the number of visitors under the Individual Visit Scheme ("IVS") will bring about economic calamities is a means of the business sector to scare the public. As the saying goes, data tells all. The business sector threatens that employment will be at stake, which is downright bullshit. They merely want to safeguard their own interests, particularly interests in commercial properties held by them, using IVS to forge their competitive advantages and monopolize the market. A free market is simply out of the question.

When it comes to genuine free market operation, the framework that induces the market to concentrate on Mainland visitors should be lifted, in particular, the retail sales figures that are conducive to fabricating the advantages brought about by Mainland visitors should be removed, for such fabricated economic gains are after all unsubstantiated, running counter to the demand of genuine tourism management. The tourism industry and the retail industry that retains most of the ultimate gains should set eyes on visitor sources of different nationalities from the world.

LEGISLATIVE COUNCIL ― 22 March 2017 5425

In my opinion, to give full play to the edges of Hong Kong tourism, we may consider from the perspectives of country parks, bazaars, history, homestay lodgings, community tours in 18 districts and bicycle tourism. As regards country parks, I am not talking about opening up sites in country parks for developing hotels or tourist attractions, but rather making optimal use of Hong Kong's unique natural resources. Foreign visitors consider Sai Kung a pearl and Lantau a garden in our backyard, and some of them even specifically come to Hong Kong for hiking. On the contrary, Hong Kong will commit a self-defeating act if it arbitrarily destroys its country parks in the name of development.

As regards bazaars, while all tourist cities in Southeast Asia have night markets, Hong Kong acts in a diametrically opposite way by constantly cracking down on hawker bazaars. In fact, during this year's Lunar New Year holiday, the spectacular Tung Chau Street night market and Langham night market proved that it was worthy to introduce night markets. I hope that the department in charge of food and environmental hygiene will offer a way out to facilitate the development of bazaars.

As regards history, despite the presence of many casinos, Macao not only facilitates the development of casinos, but also retains many historic relics, such as churches, which are well preserved. On the contrary, Hong Kong has failed to retain the Queen's Pier and even the Red House commemorating SUN Yat-sen.

As regards homestay lodgings, many young people nowadays choose homestay lodgings during their leisure travel or working holiday. However, the Hong Kong Government merely attaches importance to tourism and sightseeing, and only focuses on attracting lavish customers with high-spending power. If the Government is intent on developing tourism, it should encourage the feasibility of homestay lodgings for those on working holiday in terms of publicity and policy formulation.

As regards community tours in 18 districts, the most important sight for visitor is people, or a sense of humanity or humanistic care. Humanistic care is more appealing than tourist attractions. I urge the community and the Government to better consider the perspective of humanistic care.

5426 LEGISLATIVE COUNCIL ― 22 March 2017

As regards the formulation of a cycling policy, the development of cycling tourism to explore the 18 districts of Hong Kong is one of the feasible methods. If we merely approach the tourism industry with a mindset focusing on development, we will eventually use up our fortune even if we develop new tourist attractions in Lantau. We should instead strengthen the existing advantages of Hong Kong; we should deepen existing tourist attractions but not develop new attractions. Living off our past gains is actually not that undesirable.

Deputy President, I so submit.

MR FRANKIE YICK (in Cantonese): Deputy President, tourism is one of the important pillars of the Hong Kong economy. It plays an important role in promoting economic development and providing employment opportunities. The vibrancy of the tourism industry directly drives the development of other industries, such as retail, accommodation, food and beverage, and transportation and logistics to which I belong. Let me take taxi as an example. Since it is the visitors' preferred means of transport, increasing visitor arrivals is thus conducive to the increase of taxi drivers' income. Given the great importance of tourism on the economic development of Hong Kong, we should keep enhancing our competitiveness in tourism to promote the sustainable development of the industry.

In light of the huge profits brought by tourism, our peripheral regions are proactively developing their tourism industry in recent years with many new tourism facilities. It is no longer effective for Hong Kong to rest solely on its laurels as a shoppers' paradise and a culinary capital for attracting visitors; and coupled with the global economic downturn, the overall visitor arrivals last year dropped by 4.5% to some 56.7 million as compared with 2015, which was an annual decrease for the second year in a row. The number of Mainland visitors, being our major visitor source, has even dropped by as much as 6.7%. Indeed, it is necessary for us to face up to the problem of continuous decline of visitor arrivals, we may even have to rationalize our tourism resources to enhance the competitiveness of the local tourism industry, so as to reinforce Hong Kong's status as Asia's major tourist city.

LEGISLATIVE COUNCIL ― 22 March 2017 5427

In fact, after the commissioning of the Hong Kong Disneyland in 2005 and an expansion conducted in 2009, no new large-scale tourist attraction has been developed, and only slight enhancements have been made to existing tourism facilities. It was only until recently that the Disneyland has proposed a relatively large scale expansion plan. With the completion and commissioning of the Hong Kong-Zhuhai-Macao Bridge in the near future, as well as the development of the Airport North Commercial District, an increase in the number of inbound visitors is anticipated. Thus, I consider it necessary to expand the Disneyland.

It is an indisputable fact that tourist attractions in Hong Kong are ageing and lacking in novelty. However, as the tourism industry is developing in the direction of diversification, it is thus imperative to develop diversified new tourist attractions. The authorities should put in more resources for developing tourism projects of scale, creativity and characteristics, thereby providing a variety of tourism facilities with more choices for visitors, so as to meet various demands of overseas visitors.

Meanwhile, the authorities also have to make optimal use of existing tourism resources, such as country parks, geoparks, museums, antiquities and monuments, and so on, and enhance the attractiveness of these tourism facilities through collation, renovation, packaging and promotion, so as to put in new elements to our tourism resources. For instance, although city tours are now provided by open-top double decker buses, the "Crystal Bus" was launched in recent days after packaging. Visitors not only can take a ride to enjoy the scenery of Hong Kong, they can also taste local dim sum en route. This is another kind of travel experience. We should welcome such new products and more encouragement should be made.

Lantau Island has been playing the role as the back garden of Hong Kong. However, at present, the tourist attractions are over concentrated in North Lantau, which include the Disneyland, Po Lin Monastery cum the Big Buddha Statue in Ngong Ping, the cable car in Tung Chung and the fishing settlement in Tai O. During holidays and peak travel seasons, the complementary tourist facilities are overloaded. The Government should make good use of the natural tourism resources and scenic spots in South Lantau, such as the traditional resort areas of Pui O, Cheung Sha and Tong Fuk. Better tourism infrastructures should be 5428 LEGISLATIVE COUNCIL ― 22 March 2017 developed in these places to divert visitors and drive local development. In order to complement the development on Lantau, the Government should consider opening the SkyPier for local residents and Mainland visitors so as to perfect Lantau's transport planning and ancillary facilities.

Not only hardware, software is also very important. While the appeal of scenic spots is certainly crucial to a visitor's satisfaction of his journey, the quality of service should not be neglected as well. As visitors are not familiar with the place, taxi is their preferred means of transport; and whether they have a pleasant ride hinges upon the service quality of taxi drivers. Although the Quality Taxi Services Steering Committee organizes the Taxi Driver Commendation Scheme every year, and quite a number of drivers have been awarded so far, and there are also numerous cases of drivers returning found property to its owner in the past, I must admit that "a little mouse dropping is enough to spoil a whole pot of porridge". A small group of black sheep of the taxi trade over-charging fares and ripping off tourists will seriously affect other law-abiding taxi drivers who endeavour to provide quality services to passengers. As the saying goes, "A good deed goes unnoticed, but scandal spreads fast". In order to uphold Hong Kong's reputation as a premier tourist city, it is thus crucial to ensure the quality of taxi services. I hope that the Police will enhance its enforcement against taxi malpractices, and request the court to impose severe punishments. In addition to imposing heavy penalties on repeat offenders, revocation of licence and imprisonment of the person involved should be considered for achieving deterrent effect, thus wiping out "bandit taxis" or "black taxis".

As for setting up a Policy Bureau dedicated to promoting tourism as proposed by Mrs Regina IP and Mr LUK Chung-hung in their amendments, the Liberal Party has reservation about this proposal. This is because the Tourism Commission is now established under the Commerce and Economic Development Bureau and there is also the Hong Kong Tourism Board, if a Tourism Bureau is established, there might be duplication and redundancy. In our view, the present problem lies in the fragmented administration amongst various Policy Bureaux and the lack of communication and coordination, resulted in the failure of effective implementation of policies. If no measure is made to resolve the present predicament in governance, setting up one more Policy Bureau is still of no avail.

LEGISLATIVE COUNCIL ― 22 March 2017 5429

The development of tourism infrastructures and ancillary facilities in Hong Kong lags far behind our neighbouring regions. Therefore, the authorities must catch up and provide more new tourism resources to allow visitors to have diversified travel experiences and meet the need of different markets, so as to promote the sustainable development of the tourism industry.

Deputy President, I so submit.

MR MA FUNG-KWOK (in Cantonese): Deputy President, amid the global economic slowdown, Hong Kong cannot be spared and the tourism industry is the first to take the brunt. According to the statistics, there were over 56 million visitor arrivals in the whole year of 2016, a drop of 4.5% compared to 2015, and it was the second year that a drop was recorded. The spending per capita of overnight visitors in 2016 was $6,600, a drop of 8.7% compared to 2015. The Hong Kong Tourism Board also estimates that the number of visitor arrivals and visitors' per capita spending will further decline this year.

Two years ago, people complained about Hong Kong being overcrowded with visitors, but the situation is quite different today. The MTR train compartments are no longer crowded with Individual Visit Scheme ("IVS") visitors and there are fewer Putonghua speakers on the streets. I believe many people can see the increasing number of vacant shops in tourist districts such as Mong Kok and Causeway Bay. The tourism industry has past its prime and now enters a period of consolidation. Our future work will focus on how to rally all the forces to make a comeback during the period of consolidation and attract more high-quality and high-spending overnight visitors to Hong Kong.

After the SARS epidemic, Hong Kong's tourism industry benefited from the policy on IVS and there had been a sharp increase in the number of visitors, but that is a kind of extensive growth. At that time, the Government and the whole community did not consider carefully or plan thoroughly how to maintain a sustainable growth in the tourism industry. The over-reliance on the extensive development of IVS brought great pressure on the main tourist attractions and shopping districts and pushed up the rental; at the same time, shops that mainly attracted Mainland visitors had mushroomed. In some districts, there were more goldsmith shops and drug stores than convenience stores. These shops drove away traditional shops, which directly affected people's daily lives.

5430 LEGISLATIVE COUNCIL ― 22 March 2017

The reduction of tourists has really dealt a blow to the tourism industry, fortunately even though the number of Mainland visitor arrivals has dropped by 6.7% compared to last year, arrivals from both short-haul and long-haul markets have increased; visitors from Indonesia, Malaysia and Thailand have attained an impressive increase of over 12%. Nevertheless, arrivals from new markets such as India and Russia have dropped. These figures show the changing visitor source of the local tourism industry. Hence, the Administration and the tourism industry can no longer be stuck in a rut, but should actively adjust its policy and make plans to cater for different clientele groups, especially the high-spending visitors who have higher expectations. We should attract more of such visitors to Hong Kong by offering them a bigger variety of special experiences, so that they can better appreciate Hong Kong's unique cultural and urban characteristics.

There should be a special Policy Bureau to undertake the planning of these matters. I always opine that our culture, sports and tourism have great potentials and they need to be considered and developed as a whole. Other than tourist attractions, it is also very important to offer tourists unique experiences, for instance special events such as the Hong Kong Sevens, Harbour Race, Standard Chartered Hong Kong Marathon, Hong Kong Dragon Boat Carnival and FIA Formula E Hong Kong ePrix are all mega events that feature cultural, sports and tourism elements of Hong Kong. If a Cultural, Sports and Tourism Affairs Bureau can be set up to a coordinate and promote the synergy of all three aspects, the effect will be even better.

Deputy President, disregarding whether the Government will set up an independent Policy Bureau in this respect, it has to carefully review the existing resources deployed in tourist attractions, supporting facilities and manpower of the tourism industry.

In respect of the resources deployed in tourist attractions, let us look at the deveiopment in our neighbouring countries. Since 2008, Singapore has developed new tourist attractions almost every year. In South Korea, the filming sites of its television dramas and movies are developed as new tourist attractions. Hong Kong pales in comparison. No new large-scale tourist attraction has developed in the past few years, and some of the existing attractions need to upgrade their facilities, such as the Hong Kong Disneyland. Besides, many attractions show signs of ageing and have lost their appeal. To maintain and even enhance Hong Kong's appeal, new tourist facilities must be developed. For LEGISLATIVE COUNCIL ― 22 March 2017 5431 example, the Hong Kong Palace Museum in the West Kowloon Cultural District announced early this year will greatly enhance the attraction of the local cultural tourism, incorporating the features of the convergence of Chinese and Western cultures; and the design of the Kai Tak Sports Park should also be based on the perspective of tourism. Moreover, we should also explore the community culture and consider how to capitalize on the tourism potential of country parks. It was mentioned in last year's Policy Address that the Government was taking forward planning studies on the Tourism Node at Kai Tak and Lantau. As some of the plans involve the interests of different stakeholders, resistance will be great, but I hope that the authorities will spend time to listen to various views and strike a balance as soon as possible in order to implement the relevant plans.

In respect of the supporting resources, as Hong Kong is a densely populated city with limited space, a large number of people use various modes of public transport every day, and coupled with tens of millions of visitors each year, the public transport systems have to bear a very heavy passenger load. We must improve the transport arrangements by constructing new spur lines and conducting new planning. Also, the supporting facilities of existing tourist attractions should be adequately renewed and adjusted. For example, in respect of business operation of the Kai Tak Cruise Terminal, it is necessary to step up promotion and improve the transport arrangement in the vicinity areas. The authorities should try to attract visitors to stay longer in Hong Kong and attract more cruise liners to use Hong Kong as their home port.

On human resources, there were incidents of disputes between tour escorts and tour guides and tourists, or incidents of coerced shopping. Even though such incidents were not common, Hong Kong's reputation as an international tourism city has been seriously affected. Hence, the Administration should provide resources and implement measures to encourage practitioners of the tourism industry to receive further training on communication and language skills, so that they can communicate better with tourists, provide better service and upgrade the quality of their service.

Deputy President, the tourism industry is an important pillar of Hong Kong's economy and the Government should allocate more resources to adjust the relevant policies, as well as make better and more thorough long-term planning to ensure the sustainable development of Hong Kong's tourism industry. I so submit.

5432 LEGISLATIVE COUNCIL ― 22 March 2017

MR SHIU KA-FAI (in Cantonese): Deputy President, today I am glad to see that all Members of leftist, centralist and rightist political parties present at the meeting support this motion; they only differ in the areas of attention. While some Members find bean curd pudding very important, others consider bazaars very important. I think that is acceptable and all views are welcome. Today, we convey a clear message to the Government: the present situation is different from that two years ago. Two years ago, members of the public opined that there were too many Mainland visitors, they had to wait for two more MTR trains and thus got impatient; or they might swear if Mainland visitor's wheeled suitcase run over their feet. But today, Members from leftist, centralist and rightist political parties all agree that the tourism industry is very important to Hong Kong.

As the representative of the wholesale and retail industries, I would like to report to the Deputy President that 40% of the retail industry's turnover comes from inbound visitors. It has been reported in the press that the turnover of the wholesale and retail industries has fallen for 23 months in a row. I believe that the turnover of the tourism industry has also fallen, and the same situation also applies for the catering, transport and other related industries. Secretary, the types of industries in Hong Kong are indeed very limited.

Members of this Council belonging to different political parties and groupings think that the tourism industry is very important to Hong Kong, and I believe that is because they have seen the impact of the downturn of the tourism industry on different industries and trades. How can we improve the tourism industry to attract more visitors to Hong Kong? I think tourist attractions play an important role. The expansion plan of the Hong Kong Disneyland ("Disneyland") has aroused great controversy this year but the plan was finally passed. Secretary SO should make greater efforts to ensure that this theme park will turn out to be grander and more beautiful than before.

Although the procedure for constructing the Hong Kong Palace Museum in the West Kowloon Cultural District has aroused great controversy, in respect of the general direction, I believe most people in Hong Kong have no reason to say no to the construction of such a great museum in Hong Kong. While the procedure may not be in order, the result should be welcomed by everyone, thus I hope the Government will implement this project expeditiously.

LEGISLATIVE COUNCIL ― 22 March 2017 5433

Besides the Hong Kong Palace Museum and Disneyland, many successful events have been held in Hong Kong, such as the Hong Kong Sevens and Formula E Championship. In addition, there are many established industries in Hong Kong, such as the trades of dried seafood and Chinese medicine. Products of the highest quality available in the whole country can also be found in Hong Kong. How can we take full advantage of the edges of these trades to attract visitors from our neighbouring areas? We can organize festivals such as the "Chinese Medicine Festival" and "Dried Seafood Festival". Although the beauty industry in Hong Kong has aroused many disputes in recent years, our beauty and hair industries had great achievements in the past and played a leading role in the whole Asian area. How can we tap into the strengths of these industries to attract visitors from the neighbouring areas? If the Government provides more resources for these industries to host different events in different months, I believe that these industries will surely support. We can organize events such as the "Beauty Festival" and "Hair Festival" and hold competitions for the participation of visitors as well. A competition usually lasts for a few days, during which visitors will have to stay in hotels, travel by taxi, have a taste of different food and go shopping, and all such activities will benefit a host of industries.

Of course, we have many other resources. Mr YIU Si-wing has also mentioned that there are many country parks in Hong Kong. I often go fishing in Sai Kung but I find the supporting facilities inadequate. It is not easy to hire a sampan to go fishing in the sea. As a matter of fact, the outlying islands such as Cheung Chau offer many water activities which can attract people who like sports. As regards how to develop the water activities or marine industries in the outlying islands, the Bureau should conduct a study. More sampans should be made available to attract more people to go angling at sea, but certainly, there must be fish in the sea. The Drainage Services Department has done a good job in recent years. I often see people catching big fish at the Victoria Harbour, and I believe this reflects that the water quality of Hong Kong's waters has improved greatly. Secretary, I think all these are conducive to the development of the tourism industry and are worthy of vigorous promotion by the authorities.

In this year's Budget, the Government promises to allocate an additional $243 million for the enhancement of tourism appeal. I think the Government can do better. Though $243 million seems to be a large sum of money, the funding only increases by $3 million as $240 million was allocated last year. 5434 LEGISLATIVE COUNCIL ― 22 March 2017

Since many Members see the need to enhance tourism appeal, the Government should allocate more resources for the Hong Kong Tourism Board to promote Hong Kong's special features abroad. Attractive appeal needs to be publicized, but "suitcase-kicking" behaviour needs not be mentioned. Even if we do not talk about such behaviour, they are widely circulated through WhatsApp and WeChat.

Next, I would like to tell fellow Hongkongers, no matter how good our facilities and hardware are, if we do not treat our visitors well, all the attractions are of no avail. For example, a handful of unscrupulous merchants deliberately confuse tourists with the weight units of catty and tael, or some shops charged $50,000 for two bottles of Alcool de menthe de Ricqlès which only cost $60 each. That is really outrageous. A taxi driver once charged me $400 for a trip from Central to Causeway Bay. I was not a Member of this Council then. I called the Police for help. All these incidents have tarnished Hong Kong's reputation. The Government must therefore strictly enforce the law against law-breakers. We should offer products with quality assurance and at reasonable prices, and all guests should be treated like family members. What does that mean? That is to say, when visitors enter a shop, they should be offered a seat, and employees of the shop should always wear a smile on their face. If we see tourists on the street holding a map and looking confused, we should offer help. These are small gestures but can help improve Hong Kong's image immensely. That is something the Government can do, and I believe all members of the public can do, as all benefits brought to Hong Kong will become tax revenue. Thank you, Deputy President. (The buzzer sounded)

DEPUTY PRESIDENT (in Cantonese): Mr SHIU, your speaking time is up.

MR LAM CHEUK-TING (in Cantonese): Deputy President, as a representative of public opinion in New Territories East and a member of the North District Council, I must say that Hong Kong certainly welcomes visitors for an international metropolis should extend hospitality to visitors. However, a city cannot possibly receive an unlimited number of visitors from various parts of the world; this is an issue relating to the capacity of receiving visitors.

LEGISLATIVE COUNCIL ― 22 March 2017 5435

As a representative of public opinion in North District, I must speak for the local residents. At present, North District is still under very heavy pressure. Although the overall number of visitors has decreased, my observation is that the number of visitors in North District has not decreased. There are more and more shops selling parallel imports and the numbers of visitors or parallel traders are abundant. Even though shop rental in various districts of the territory has fallen, shop rental in North District has risen. While shop rental in Causeway Bay has fallen by 20% to 30%, shop rental in North District has risen by more than 10%.

North District suffers from high rental and commodity prices, congested MTR train compartments and streets, as well as a lot of rubbish and cardboards littered on the streets. As many people do their packing on the streets, the streets are littered with rubbish. Moreover, as the pavements are occupied by people dragging suitcases, residents can only walk on the roads, and conflicts will arise when wheeled suitcases run over people's feet. Some shops selling parallel imports had also been hit by fire bombs, intending to set the shops ablaze.

What I would like to say is that we welcome visitors but we do not welcome people who come to Hong Kong to engage in parallel trading. We have to consider our capacity of receiving visitors; otherwise, our city simply cannot cope with a huge amount of visitors. As we lack supporting transport and public facilities, visitors may have an unpleasant experience in Hong Kong and the reputation of Hong Kong as a tourism city will be damaged. The subject of this motion is to give full play to the edges of local tourism resources; I support this motion but I think we have to consider the situation in different districts. Please give full play to the edges of local tourism resources in other districts, but not in Sheung Shui because Sheung Shui already has excessive visitors and parallel traders.

Deputy President, please do not laugh. If you visit North District, I will, as the host, show you around. The situation is really bad. Owing to the problem of parallel trading, the China-Hong Kong conflicts in North District have intensified in the past few years. An "anti-locust campaign" and protests were held in the past. I do not support such relatively violent resistance actions, but we have to consider the feelings of local residents. Some district officials once said to me, "'Ah Ting', if shops selling parallel goods operated until late at night, riots similar to the one that happened in Mong Kok on the first day of the Lunar New Year would have happened in Sheung Shui long ago." I am not being an alarmist; there are indeed widespread public grievances in North District, and the problem remains unsolved. 5436 LEGISLATIVE COUNCIL ― 22 March 2017

Deputy President, I have earlier asked the Commissioner of Police to deploy more police officers to maintain order in North District because a large number of visitors and parallel traders have caused social disorder. However, the Commissioner of Police has rejected my reasonable request. How many people are there in the task force for handling parallel trading activities in North District? North District covers a very large area but there are only seven police officers handling the parallel trading activities round the clock. After deducting holidays, I do not know how many people are left to deal with the serious problem of parallel treading of the whole North District. The parallel trading problem and the problem of visitors to Hong Kong are overlapping as many local people just cannot tell which Mainlanders come to Hong Kong for parallel trading and which Mainlanders come here to buy daily necessities for their own use.

Therefore, I would like to urge the Government to really understand the plight of residents of North District and develop the tourism industry in other districts. Please do not come to North District, the areas to the south such as Southern District will be better because there are a large number of tourist facilities. Visitors can eat seafood, go sailing in the sea and see many fishing boats, which are very unique activities. Please do not come to North District; it is no fun for visitors to visit North District and take a look at parallel trading activities, and there is rubbish all over the streets.

I so submit. Thank you, Deputy President.

MR LEUNG KWOK-HUNG (in Cantonese): Deputy President, according to Article 73 of the Basic Law, we are duty-bound to monitor the Government.

The question raised by Mr LAM Cheuk-ting is very enlightening. In North District, many people cross the border with goods bought from Hong Kong for selling in China, taking advantage of the differences in price and quality of the goods between the two places. Are they tourists? Are they visitors? There is no way we can tell. According to the Government's statistical method, whoever crosses the border to Hong Kong on the strength of their Mainland documents are regarded as tourists; the purpose for their visit will not be asked. This is an extremely inept mistake made on the part of the Government, leading to an exaggerated number of visitors (that is, genuine visitors). The Government has LEGISLATIVE COUNCIL ― 22 March 2017 5437 no idea whether these visitors will stay overnight in Hong Kong or what activities they will engage in, all these will not be compiled as statistics. All Mainland people who have crossed the border to Hong Kong are tourists.

Frankly speaking, the tourism industry should be "spanked". In fact, in the tourism industry, some members of the trade rely on visitors who come to Hong Kong for shopping. In that case, the figure will be exaggerated if they are regarded as tourists. I once doubted if the tourism industry had such great contribution because as it accounted for a mere 6% of GDP, it had to support a large number of practitioners, implying that the profit margin was extremely low. In other words, if Hong Kong people are really dependent on the tourism industry, our life would be pretty miserable.

After speaking for so long, what am I trying to say? First, the Government has not formulated any comprehensive strategy for the tourism industry. To the Government, whoever comes to spend in Hong Kong is a visitor; but people coming to buy powdered formula are not tourists, buddy. Frankly, if we could turn the clock back to the so-called "good old days", it was just a time when a large number of Mainlanders came to Hong Kong for shopping and we made a profit from the price differences. Could this be regarded as contribution of the tourism industry? Actually, it was the retail industry which made contribution. Retail and tourism are completely different concepts. Judging from this angle, I do not see any good strategy implemented by the Government.

Genuine tourists are people coming for a tour in Hong Kong. They usually stay for a few days and spend money in Hong Kong, which will certainly involve some kind of logistics or travelling, meaning that they will move around. This will bring impetus to Hong Kong's economy. However, the Government does not think so; it has therefore treated the tourism industry pretty lightly. So long as Mainland people continue to flock to Hong Kong from the north and then flock back from the north, they will be regarded as visitors. This is why the government policy is totally wrong. LEUNG Chun-ying still insists that we should build more hotels, but will those who drag suitcases to Hong Kong for shopping stay in a hotel?

There are also proposals to develop the bridgehead economy, meaning that there is no need for visitors to travel to the city centre for shopping. Mr WONG Ting-kwong has put forward a similar proposal, right? What kind of strategy is this?

5438 LEGISLATIVE COUNCIL ― 22 March 2017

My opinion is very simple. First, if Hong Kong has to develop tourism, more emphasis should be placed on local residents rather than foreign visitors. Hong Kong itself has a market of 7 million people. Deputy President, how many Hong Kong people will make a tour in Hong Kong? I mean moving around to take a good look at Hong Kong, our world-class attractions in Sai Kung and the local monuments. No one would do so because no promotion has been launched by the Government.

Mr SHIU Ka-fai just now said that Hong Kong has a lot of leading industries. When we travel abroad, we usually visit different museums and learn about their industries of the old days, for example, how they made candles or how the related machines operated. We may spend one whole afternoon buying postcards or souvenirs, or enjoying afternoon tea in the museums. These are ways to earn foreign exchange. And yet, this is not what Hong Kong is doing. Tourism in Hong Kong operates in the following ways: firstly, quick purchase; secondly, live in expensive hotels if there are still visitors staying overnight in Hong Kong; and thirdly, charge for sky-high prices. But how high can the price be? If Mainlanders do not have a genuine need to come to Hong Kong as a transient population for business or parallel trading, or engage in whatever activity that is not related to tourism, will they come at all?

I would like to ask, what kind of entertainment do Hong Kong people have after 11:00 pm? What else can we do? Singing karaoke? Why would tourists come to sing karaoke in Hong Kong? What else can we do? Just think, if Hong Kong people choose to stay behind for a vacation for, say, three days, this would generate some income for local tourism, right? In fact, we may develop some kind of tour in Sai Kung, which has a number of tourist attractions. However, the authorities have failed to do so.

This is precisely the problem of small-circle election: recompense and replacement. Every time the Hong Kong Tourism Board ("HKTB") has a new composition, it will be controlled by a small group of people. These people will hold power for just a short period of time, but long enough for them to make money, and they could not care less about HKTB's long-term development. It is a waste of time to look for new attractions and relics, not to mention the need to go through a number of Policy Bureaux. These people are only eager to look for ways to make quick money, and they do not care if those so-called "tourists" merely come for shopping with their suitcases; just regard them as tourists. Nor do they care if Hong Kong people will suffer.

LEGISLATIVE COUNCIL ― 22 March 2017 5439

Deputy President, we have built a lot of "canals": the Hong Kong-Zhuhai-Macao Bridge, the Express Rail Link and the boundary control point at Liantang. Let me skip the part on cargo traffic but focus solely on passenger traffic. I would like to ask, in the absence of water or anything that absorbs water, is it possible to channel water here even if the canals start to operate? Due to the Government's erroneous projection, heavy investments had been made. What I mean is, despite the construction of lot of infrastructures, not that many people will come to Hong Kong. Even if there are so many people coming, they are not tourists. In that case, what is the point of discussing the development of tourism? We have been relying solely on inbound Mainland visitors, and for overseas visitors, there is simply no places for fun and entertainment in Hong Kong. Even the people of Hong Kong have nowhere to go for fun and entertainment.

Therefore, in my opinion, the subject of today's motion makes no sense in logic. Members have simply taken this opportunity to grumble about the poor business, and have no intention to examine what can be done to enable Hong Kong's tourism to achieve certain progress in its development. It is (The buzzer sounded) … forget it.

DEPUTY PRESIDENT (in Cantonese): Mr LEUNG, your speaking time is up.

MR CHAN HAN-PAN (in Cantonese): Just now Mr LEUNG Kwok-hung said that all inbound visitors are not tourists, but people from the Mainland. Nonetheless, people coming from the Mainland to Hong Kong are also visitors; they are our guests and should be politely treated.

Three years ago, I went to Kat O with Mr Steven HO as both of us were eager to explore what new tourism experiences could the policy of homestay lodgings bring to Hong Kong. Unfortunately, three years have passed, and we are still discussing the same topic, just like "cooking congee without rice".

(THE PRESIDENT resumed the Chair)

5440 LEGISLATIVE COUNCIL ― 22 March 2017

In fact, there is a trend that international visitors may not join group tours, instead they prefer individual visit or in-depth tourism; they may not stay in hotels as in the past, but may stay in homestay lodgings to get the special experience. Tourists are looking for friendly and peaceful environment with new and unique tourism experiences. In my opinion, Hong Kong should immediately do two things without delay: Firstly, to rebuild the image of Hong Kong's tourism. Subsequent to the row over "kicking suitcases", everyone, be they people whom I met in Mainland cities or visitors to the Legislative Council Complex whom I met a few days ago, would talk about the image of Hong Kong's tourism. They think that Hong Kong people seem not very friendly and do not welcome visitors. But the fact is, there is a story behind every incident and it takes a pretty long time for the incident to be forgotten. Worse still, the incident may not be easily forgotten with time as the relevant images will keep looping on the Internet. Therefore, the Government must work very hard to rebuild the image of Hong Kong's tourism before we can see any improvement. Not only Mainland visitors know about the row over "kicking suitcases", visitors around the world are also aware of the incident. Today, we might need to consider changing the slogan "Laughter makes a beautiful world" and rebuild Hong Kong as a friendly city.

Another question I have raised time and again is how to make members of the public welcome visitors? I think the most effective way is to let them take part in the tourism industry, and share the benefits altogether. In other words, not only major consortia or large organization make profits from the tourism industry, members of the public also get a share. In that case, people will definitely welcome visitors. And, to achieve this end, the best way is through the operation of homestay lodgings. In the case of Taiwan, for a two-storey unit, a family may occupy the lower level and vacate the rooms at the upper level for rental to tourists. Their hospitality services will certainly provide visitors with new experiences, which I think is most precious.

Take Taiwan's Kenting as an example, it offers natural scenery, delicious food and unique experiences. In fact, Hong Kong also has places as beautiful as Kenting. As I have previously said time and again, the natural scenery of Cheung Sha in South Lantau is as beautiful as Kenting, but since it does not offer any homestay lodging or delicious food, further development is not possible. Visitors to Hong Kong cannot get unique experience in Hong Kong, and local LEGISLATIVE COUNCIL ― 22 March 2017 5441 people have to fly to Kenting to get that feeling. In fact, it is possible for Lantau to offer the same feeling, but we have to make this happen. Therefore, I hope that the Government will step up its efforts in supporting homestay lodgings.

What benefit will the operation of homestay lodgings bring about? When I went hiking in recent years, I have come across many abandoned villages which have only one or two households, and the occupants are all elderly persons. We may call these elderly persons "empty-nest elderly", because the younger family members have moved to the urban areas for work and will only return once every week or two weeks. The younger family members may wish to stay behind, but they cannot make a living there. If the Government allows them to develop homestay lodgings in Tai O, for example, then local residents will not have to travel long distance to work in the urban area, but can still make ends meet in Tai O. What is more, they can take care of the elderly persons at home. In so doing, there will be fewer social problems, so I hope the Government will consider this proposal.

Furthermore, the issue relating to the image of Hong Kong's tourism which I have just mentioned is another serious problem. It is natural for visitors to go shopping in Hong Kong because our products have quality assurance and are reasonably priced. Nonetheless, our products have been subject to serious challenges in recent years, especially drugs. According to the Chinese Medicine Ordinance, only traditional Chinese medicine shall be registered under this Ordinance, and any mixture containing Vitamin C or evening primrose oil will not be regarded as Chinese medicine. For this reason, they cannot be registered and will be subject to food regulation instead. Recently, as disclosed by the media, many products that are not Chinese medicine but claimed to be so have flooded the market. There is no doubt that visitors coming for shopping in Hong Kong expect to buy medicated balm of good quality, but when they find that the product they bought has no efficacy, they would certainly blame Hong Kong for this. This will surely undermine the image of Hong Kong or the "Made in Hong Kong" brand, which is a serious issue. However, although the media has uncovered such cases for some time, I have not seen any action taken by the Government. I am going to raise a question next week about how products which actually belong to health food and not drug counterfeits, but claimed to be Chinese medicine should be dealt with in the absence of legislative regulation.

5442 LEGISLATIVE COUNCIL ― 22 March 2017

In this connection, instead of adopting a piecemeal approach, I think we should give holistic consideration to the tourism industry as the issue involves consumption, tourism and the image of Hong Kong people in the world. I believe Hong Kong may continue to develop if we can reconstruct a good image, but if we still fail to boost to the tourism industry, the image of Hong Kong's tourism will be adversely affected. I hope the Bureau will carefully consider how Hong Kong's tourism image can be improved.

Today, I am very grateful to Mr YIU Si-wing for moving this motion, which allows us to express our views on the matter. We strongly support Mr YIU's motion.

PRESIDENT (in Cantonese): Does any other Member wish to speak?

MR PAUL TSE (in Cantonese): President, I certainly have to thank Mr YIU Si-wing. In addition to moving a motion on the long-term planning of Hong Kong's tourism industry on 23 October 2013, he moved another motion today. In fact, the current situation of the tourism industry is particularly worrying. As the development of the tourism industry has been hindered, the economy has even come under a big threat. However, it is necessary for us to make it clear whether Members are talking about their personal travel preferences―as everyone has his own Brokeback Mountain―or they are discussing an industry in the socio-economic system of Hong Kong which is in need of support. I believe that more than 1 million Hong Kong people are making a living in this industry. However, many colleagues have simply taken this opportunity to talk about their views on culture, history, the industry and other matters.

Given the time limit, I wish to stick closer to the topic by focusing my discussion on how to properly give play to the edges of the existing local tourism resources in Hong Kong. Mrs Regina IP has proposed an amendment to set up a regulatory body dedicated to promoting tourism, which will coordinate various departments so as to avoid fragmentation of responsibilities, a lack of coordination among departments, and even a multi-layered governing structure. In fact, I moved a motion in the Council on 13 May 2009 to set up a Tourism Bureau to promote the development of the tourism industry. I would like to thank Mrs Regina IP and other colleagues for supporting the development in this direction. I will talk more about this if I have time later.

LEGISLATIVE COUNCIL ― 22 March 2017 5443

Certain colleagues have expressed their personal views on tourism. I once jokingly said that every colleague has his own opinion on education policy and he would sound like an education expert only by talking about his personal experience. Similarly, as we have all travelled before, we can all give a long and pompous speech on tourism policy based on our travel preferences. In fact, talking about one's travel preferences is totally different from discussing the specific issues faced by the tourism industry and the ways to boost and help the industry.

Before going into other details, I would like to raise one point. Although a colleague has generally mentioned this point just now, I would still like to focus on it. In fact, tourism is not only about tourist attractions, infrastructure and natural advantages. While these aspects are certainly very important, security is also vital for giving play to the edges of Hong Kong's tourism resources. All Members must have travelled abroad before. So do many Hong Kong people. What do we cherish? What is Hong Kong's strength in respect of security? Do we have to step up our security measures now? Security is a very important factor, particularly in view of the recent rise in violent incidents and robberies. Hong Kong has been very safe for years, thereby attracting many visitors to come. Nevertheless, it is necessary for the authorities to attach more importance to security.

Secondly, the air quality of Hong Kong is also very important. Many people are very conscious of the pollution level of a place when they make their travel plans. We have to put in more efforts as well in this regard.

The third point concerns Hong Kong's hospitality, which has been mentioned by a colleague just now. We can approach this from different perspectives. It does really matter as to whether Hong Kong people treat visitors as their guests, or discriminate against those coming from places less civilized than us, or even infringe upon visitors' rights and interests. In recent years, the tourism industry is faced with a major problem arising from our insufficient work in this regard. Hospitality is very important.

Fourth, I would like to talk about our language proficiency. While Hong Kong used to be well-known for its integration of Chinese and foreign cultures, our language proficiency is worsening. Our English presentation skill has been deteriorating. Worse still, we are even lagging further behind our long-time 5444 LEGISLATIVE COUNCIL ― 22 March 2017 competitor Singapore. Hence, I have to point out that we have to pay attention to this problem. Although this problem seems not to relevant to tourism, it is a vital fundamental element for a place to give full play to the edges of its tourism resources.

President, as far as our regulatory framework is concerned, as I have mentioned in the Council before, compared with other industries, the tourism industry correlates more closely with various other industries. Many colleagues who represent various sectors have just talked about their views on how the tourism industry would interface with other industries. Indeed, almost all industries, including shipping, traffic, transport, hotels, retail, catering, cultural and entertainment, are related to the tourism industry. For this reason, a cross-trade, cross-sector and even inter-departmental coordinating body is essential in this regard.

The tourism industry has been plagued by the threat of increasing natural and human disasters. Hence we need a coordinating body with emergency response capability to deal with emergencies, such as the forced evacuation of many visitors from Hotel MK during the SARS outbreak and other large-scale accidents. In the past, different departments implemented their measures separately in this regard. Although the authorities have already introduced a new bill in respect of regulating the industry, the tourism industry would not be capable of meeting the numerous challenges at present if we failed to elevate the status of the regulatory body, putting it on an equal footing with other Policy Bureaux in terms of seeking resources, the right to speak and access to various government departments should problems arise.

Present, my speaking time is very limited. I have prepared a lot for my speech but I will not be able to finish them. After listening to the views of many colleagues today, I only hope that the Secretary will properly treasure all the existing resources of the tourism sector and resolve the difficulties facing the industry. In this way, Hong Kong will be able to do a better job in promoting tourism. Thank you, President.

PRESIDENT (in Cantonese): Mr YIU Si-wing, you may now speak on the amendments. The speaking time limit is five minutes.

LEGISLATIVE COUNCIL ― 22 March 2017 5445

MR YIU SI-WING (in Cantonese): President, first of all, I would like to thank the seven Members who have proposed amendments to my original motion. My purpose in moving the motion is to elicit valuable ideas and draw on collective wisdom. I hope that the authorities can seriously listen to Members' views and alleviate the current predicament of the tourism industry.

Mrs Regina IP's amendment proposes setting up a Policy Bureau dedicated to promoting tourism, that is, setting up a Tourism Bureau. This is in line with the tourism sector's objective. Yet I am concerned that it may not be possible to set up a Tourism Bureau in the short term. That is why I have suggested that the Government should start off by establishing an inter-departmental coordination committee to tackle the existing development problems first. So I will support Mrs Regina IP's amendment.

Mr WU Chi-wai's amendment proposes strictly adhering to the Revised Concept Plan for Lantau released in 2007. I do not agree to this proposal. As the Lantau Development Advisory Committee has updated the overall plan, we should not take the retrograde step of going back to the original plan, which is out of date. Moreover, Mr WU has suggested in his speech that we should amend the relevant legislation to support the sharing economy, alluding to the business model of Airbnb. This model is simply out of keeping with the actual situation in Hong Kong, because it can easily cause many safety and nuisance problems in our densely populated city and is unfair to operators of licensed guesthouses and hotels, not to mention that it is illegal. So I will oppose Mr WU's amendment.

Mr Jeffrey LAM's amendment adds in a number of specific proposals on the basis of the original motion, including developing the high-end convention, exhibition and aviation industries. In fact, there is no conflict between fortifying the traditional tourism industry and giving full play to the edges of local tourism resources, and these two elements can complement each other. So I will support Mr LAM's amendment.

Dr KWOK Ka-ki, in his amendment, blames certain social problems on the policy on Individual Visit Scheme ("IVS"), and the wording of his amendment gives the impression that IVS is the key factor that has intensified the conflicts between the Mainland and Hong Kong. In my view, the nuisances in question are isolated cases occurring in certain districts. We cannot deny the contribution of IVS to the Hong Kong economy as a whole. So I will oppose Dr KWOK's amendment.

5446 LEGISLATIVE COUNCIL ― 22 March 2017

Mr Michael TIEN proposes developing world-class and sustainable tourist attractions, and, in particular, developing the motorsport industry. At present, some of our tourist attractions are indeed showing signs of ageing, and this should be reviewed. If we can create a world-class attractive landmark―be it a major tourist attraction or a mega event―and use it as an iconic project for our tourism industry to make up for its current lack of attractiveness, this is of course a good thing. So I will support Mr TIEN's amendment.

Mr Holden CHOW, in his amendment, proposes establishing a "cultural transmission and development fund". In many places, to ensure the passing on of traditional craftsmanship, local governments will offer subsidies to traditional craftsmen. I agree that the Government can allocate more resources to this area, and use the tourism industry as the starting point to promote, protect and transmit local culture. So I will support Mr CHOW's amendment.

Mr LUK Chung-hung's amendment proposes specifying expressly the employment relationship between travel agencies and tour guides as well as tour escorts. This proposal will be embodied in the Travel Industry Bill, and will serve to protect the interests of both travel agencies and their employees. This is not in conflict with the development of the tourism industry. So I will support Mr LUK's amendment.

I so submit. Thank you, President.

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): President, I am very grateful to Mr YIU Si-wing for moving the motion today and to Members for proposing amendments and speaking in the debate. I very much agree with the valuable views given by Members and in fact, many of such views have been reflected in our tourism policies and measures. I will now talk about the Government's view on the main areas mentioned by Members.

The Government has all along made overall planning on the hardware and software of tourism in the short-, medium- and long-term. Our policy objective is that the tourism industry should not merely seek to increase the number of visitors, but should pursue stable, healthy and long-term development. In terms of strategies, the planning of our tourism industry focuses on highlighting Hong Kong's special features, increasing the number of diversified tourism products, developing new markets and attracting more high-spending overnight visitors to Hong Kong. As stated in the Policy Address and the Budget announced earlier, LEGISLATIVE COUNCIL ― 22 March 2017 5447 we will continue to follow the above mentioned policy direction and objectives in implementing a series of supportive measures introduced by the Government and the Hong Kong Tourism Board ("HKTB") to boost tourism.

Green tours

A number of Members mentioned green tours in this debate. We agree that Hong Kong has a rich pool of green resources, e.g. different kinds of hiking trails. The Tourism Commission ("TC") has all along collaborated with the Agriculture, Fisheries and Conservation Department, HKTB, the tourism industry and other event organizers in using HKTB's "Great Outdoors Hong Kong" marketing platform to actively promote nature-based green tourism products and outdoor attractions to visitors. These include the Hong Kong UNESCO Global Geopark ("the Geopark"), hiking trails, outlying islands, cycling trails as well as guided tours and green tourism products offered by the tourism industry and other organizations.

In 2017-2018, we will allocate a funding of $5 million to HKTB to launch the "Pilot scheme to promote in-depth green tourism". We will provide subsidies to the tourism industry to encourage its development of markets interested in green tourism and more diversified in-depth green tourism products. In developing in-depth green tourism products, the industry will plan its programmes to comply with the environmental protection requirements of the relevant departments, e.g. permits must be obtained for vehicles accessing designated areas of the Geopark.

The Government also agrees that there is room for developing green tourism in Lantau and will conduct studies of planning under the principle of balancing the needs of development and conservation. At present, the future development of Lantau mainly follows the direction of "development for the north, conservation for the south". The Development Bureau is preparing the Sustainable Lantau Blueprint and expects to release it in the first half of this year.

Cultural tours

Many Members also mentioned cultural tours. The Government has all along collaborated with HKTB to actively develop and promote cultural tours of Hong Kong. We promote these tours to visitors, the international media and the tourism industry and seek to offer more diversified tourism choices in Hong Kong.

5448 LEGISLATIVE COUNCIL ― 22 March 2017

In promoting the traditional festivals and local culture, HKTB holds mega events each year, such as the Chinese New Year Night Parade and the Hong Kong Dragon Boat Carnival, etc. to introduce Hong Kong's traditional festivals and culture to visitors. HKTB also actively promotes four traditional festivals which have been inscribed onto the third national list of intangible cultural heritage, including the Yu Lan Ghost Festival, the Cheung Chau Jiao Festival, the Tai O dragon boat water parade and the Tai Hang fire dragon dance.

In addition, HKTB has been using different means to promote markets and shopping streets with local characteristics to visitors, including the Flower Market, the night market in Temple Street, Apliu Street, Sai Yeung Choi Street (i.e. "Women's Street"), Upper Lascar Row (i.e. "Antiques Street"), Li Yuen Street East and Li Yuen Street West, etc. to encourage visitors to experience the local culture of Hong Kong and the fun of shopping in different ways.

To show visitors that Hong Kong is a world-class arts hub, HKTB again holds the Hong Kong Arts Month in March this year to introduce different arts zones to visitors, such as the art studios, art galleries, heritage buildings and cultural and arts activities in Hollywood Road in Central and Sheung Wan; and promote various arts events such as the Hong Kong Arts Festival, Art Basel, Art Central, etc. HKTB will also continue to promote various art and cultural activities such as Le French May Arts Festival, Affordable Art Fair, Chinese Opera Festival, etc.

Heritage Tours

The Government and HKTB have been actively developing and promoting heritage tours. We are now updating and enriching the Dr Sun Yat-sen Historical Trail, including re-designing the memorial plaques and updating the information. The work is expected to be completed by the end of this year. The Dr Sun Yat-sen Historical Trail, together with PMQ and the "Big Station" (i.e. the Former Central Police Station Compound) to be commissioned later, will transform the Central and Western District into an "art-across-time" community.

The Government is also conducting conservation and conversion works on some historic buildings in various districts through the Revitalising Historic Buildings Through Partnership Scheme. For example, revitalizing the old Tai O Police Station into a boutique hotel called the Tai O Heritage Hotel and converting the former Lai Chi Kok Hospital into the Jao Tsung-I Academy. The LEGISLATIVE COUNCIL ― 22 March 2017 5449

Government is also planning to revitalize the historic building of Hung Shing Yi Hok in situ into the Tai Hang Fire Dragon Heritage Centre, scheduled to commence operation in 2019.

Measures under the Policy Address and the Budget

To give full play to the edges of local tourism resources, we have announced in the Policy Address and the Budget delivered earlier that the Government has allocated an additional funding of $243 million to boost tourism by introducing a series of supportive measures. Such measures include re-arranging A Symphony of Lights to develop Hong Kong's own brand of light attraction; further promoting the diversification of tourism products, such as green tours, cultural and heritage tours, etc.; implementing a series of promotional plans with the tourism industry to attract high-spending visitors, including Meetings, Incentive Travels, Conventions and Exhibitions visitors, transit passengers and cruise passengers; supporting mega international events, home-grown events and tourism activities showcasing Hong Kong's local characteristics to diversify the events offered and enhancing Hong Kong's attractiveness as a premier tourist destination.

Planning of tourist attractions

Regarding tourism hardware, the Government has spared no effort in developing and enhancing the tourism facilities of Hong Kong as well as increasing its competitiveness by various means. Our work in this area includes continuously updating the existing tourist attractions, e.g. introducing a variety of new programmes in the Hong Kong Disneyland and the Ocean Park. We expect that these programmes will be commissioned one after another in the coming years.

As Members will agree, Victoria Harbour is a world-famous tourist attraction as well as one of Hong Kong's unique natural resources. In recent years, the new Central harbourfront has become a favourite spot for visitors. It is also a good venue for holding mega events such as the Hong Kong Wine and Dine Festival and the FIA Formula E Hong Kong ePrix. The Government understands that society has expectations of developing the harbourfront. Thus, the Development Bureau will collaborate with the Harbourfront Commission to actively implement programmes of enhancing the harbourfront to give full play to 5450 LEGISLATIVE COUNCIL ― 22 March 2017 the characteristics and potentials of different lots of the area. The Government has earmarked $500 million for the first stage for taking forward harbourfront development.

From 2017 to 2019, other new tourist attractions will be commissioned one after another in Hong Kong, including various attractions at the West Kowloon Cultural District. In the long term, we are taking forward the plans of the Tourism Node at Kai Tak with a view to developing the place as a world-class tourist and recreational attraction. The Government will also continue to conduct planning studies on the development of Lantau, including studies on using North Lantau for the purposes of recreation and tourism. These new tourist attractions will enrich visitors' experience in Hong Kong and maintain Hong Kong's competitiveness.

In relation to Members' proposals on convention and exhibition venues, the Government has been exploring different options to increase the floor area of convention and exhibition venues to maintain the competitiveness of the convention and exhibition industry. Among them, the Government will build a convention centre above the Exhibition Station of the Shatin-to-Central Link after the latter's completion. The Hong Kong Trade Development Council has been invited by the Government to design the convention centre under this plan. Furthermore, the West Kowloon Cultural District Authority is considering developing a medium-sized, multi-purpose venue for exhibition, convention and performance purposes in the western part of the West Kowloon Cultural District.

The service quality and the rights of practitioners of the tourism industry

Some Members are concerned about the service quality and the rights of practitioners of the tourism industry. The Government has attached great importance to this issue. We subsidize training of practitioners of the tourism industry, including staff members of travel agents, tour guides and tour escorts, through the Travel Industry Council of Hong Kong to raise the overall service quality of the industry and enhance Hong Kong's image as a place providing quality tourism.

Setting up a Tourism Bureau

Mrs Regina IP and Mr LUK Chung-hung mentioned setting up a Tourism Bureau dedicated to promoting tourism in their amendments. I would like to point out that the policies, promotion and regulatory framework of tourism in LEGISLATIVE COUNCIL ― 22 March 2017 5451

Hong Kong have, for many years, followed the market trend and developed in response to the views of the industry and the community. At present, TC of the Commerce and Economic Development Bureau is tasked with formulating strategies for tourism development, allocating resources to implement various tourism initiatives, as well as coordinating and collaborating with different parties in pushing ahead various work on tourism development. All along, TC, HKTB and the Travel Industry Council of Hong Kong have been performing separate roles with clear division of work in respect of formulating policies, promoting tourism and regulating the industry. In fact, TC has all along played the role of coordinating and collaborating various work on tourism development, so as to promote the stable, healthy and long-term development of tourism in Hong Kong. In considering measures and proposals on tourism, the Policy Bureaux, government departments and HKTB will discuss with the stakeholders such as the District Councils, members of the local community, consultative groups, professional bodies and representatives of the tourism industry to receive a wide range of views from different sectors.

All in all, we will continue to join hands with the tourism industry in promoting the long-term and healthy development of the tourism industry of Hong Kong. We will continue to gauge a wide range of views by humbly listening to the views of the District Councils, the stakeholders of the local communities and the public so as to reinforce Hong Kong's position as a premier tourist destination.

Thank you, President.

PRESIDENT (in Cantonese): I now call upon Mrs Regina IP to move an amendment to the motion.

MRS REGINA IP (in Cantonese): President, I move the amendment under my name.

Mrs Regina IP moved the following amendment: (Translation)

"To delete "benefiting" after "That" and substitute with "Hong Kong has benefited"; to add "setting up a policy bureau dedicated to promoting tourism to" after "(1)"; to delete "; and, based on the collation results, studying the establishment of an inter-departmental body to enhance" 5452 LEGISLATIVE COUNCIL ― 22 March 2017

after "events" and substitute with ", and strengthening the coordination and collaboration of relevant departments as well as enhancing"; and to add ", so as to promote the revival and further development of the tourism industry of Hong Kong" after "various districts"."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment, moved by Mrs Regina IP to Mr YIU Si-wing's motion, be passed.

PRESIDENT (in Cantonese): I now put the question to you as stated. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

Mrs Regina IP rose to claim a division.

PRESIDENT (in Cantonese): Mrs Regina IP has claimed a division. The division bell will ring for five minutes.

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Will Members please check their votes. If there are no queries, voting shall now stop and the result will be displayed.

Functional Constituencies:

Mr Jeffrey LAM, Mr WONG Ting-kwong, Ms Starry LEE, Mr CHAN Kin-por, Mr Steven HO, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Martin LIAO, Mr POON Siu-ping, Ir Dr LO Wai-kwok, Mr HO Kai-ming, Mr Holden CHOW, LEGISLATIVE COUNCIL ― 22 March 2017 5453

Dr Pierre CHAN, Mr CHAN Chun-ying, Mr LUK Chung-hung, Mr LAU Kwok-fan and Mr Kenneth LAU voted for the amendment.

Mr LEUNG Yiu-chung, Mr Charles Peter MOK and Dr YIU Chung-yim voted against the amendment.

Prof Joseph LEE, Mr Frankie YICK, Mr IP Kin-yuen, Mr CHUNG Kwok-pan and Mr SHIU Ka-fai abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr CHAN Hak-kan, Mr WONG Kwok-kin, Mrs Regina IP, Mr Paul TSE, Mr Michael TIEN, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Alice MAK, Dr Elizabeth QUAT, Dr CHIANG Lai-wan, Mr Wilson OR, Ms YUNG Hoi-yan and Mr CHEUNG Kwok-kwan voted for the amendment.

Mr LEUNG Kwok-hung, Ms Claudia MO, Mr CHAN Chi-chuen, Mr CHU Hoi-dick and Dr CHENG Chung-tai voted against the amendment.

Mr WU Chi-wai, Dr KWOK Ka-ki, Dr Helena WONG, Mr Alvin YEUNG, Mr Andrew WAN, Mr LAM Cheuk-ting, Mr HUI Chi-fung, Mr Nathan LAW and Dr LAU Siu-lai abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 26 were present, 17 were in favour of the amendment, 3 against it and 5 abstained; while among the Members returned by geographical constituencies through direct elections, 27 were present, 13 were in favour of the amendment, 5 against it and 9 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he therefore declared that the amendment was negatived.

5454 LEGISLATIVE COUNCIL ― 22 March 2017

MS STARRY LEE (in Cantonese): President, I move that in the event of further divisions being claimed in respect of the motion on "Giving full play to the edges of local tourism resources" or any amendments thereto, this Council do proceed to each of such divisions immediately after the division bell has been rung for one minute.

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the motion moved by Ms Starry LEE be passed.

PRESIDENT (in Cantonese): Does any Member wish to speak?

(No Member indicated a wish to speak)

PRESIDENT (in Cantonese): I now put the question to you as stated. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(No hands raised)

PRESIDENT (in Cantonese): I think the question is agreed by a majority respectively of each of the two groups of Members, that is, those returned by functional constituencies and those returned by geographical constituencies through direct elections, who are present. I declare the motion passed.

I order that in the event of further divisions being claimed in respect of the motion on "Giving full play to the edges of local tourism resources" or any amendments thereto, this Council do proceed to each of such divisions immediately after the division bell has been rung for one minute.

LEGISLATIVE COUNCIL ― 22 March 2017 5455

PRESIDENT (in Cantonese): Mr WU Chi-wai, you may move your amendment.

MR WU CHI-WAI (in Cantonese): President, I move that Mr YIU Si-wing's motion be amended.

Mr WU CHI-WAI moved the following amendment: (Translation)

"To delete "benefiting from the expansion of the Individual Visit Scheme by the Mainland," after "That" and substitute with "the tourism industry has all along been one of the economic pillars of Hong Kong;"; to add "in addition, the design and development of many innovative tourism products have been constrained due to restrictions imposed by the existing legislation;" after "commissioning;"; to add "particularly conserve Lantau to facilitate the development of eco-tourism," after "use of local tourism resources,"; to add "and, by abolishing various regulations and restrictions, facilitate" after "edges of local tourism resources"; to delete "and" after "opportunities;"; and to add "; (4) strictly adhering to the proposal on development of major economic infrastructure and tourism uses in North Lantau as set out in the Revised Concept Plan for Lantau released in 2007, including concentrating residential and commercial development projects on sites along North Lantau Highway to ensure that the status quo of the country parks of Lantau will not be affected, so as to protect the eco-tourism resources of Hong Kong; (5) formulating appropriate policies and amending the existing legislation to regulate the tourism-related services under a sharing and new economy, so as to enable an orderly development and operation of such services, thereby giving full play to the efficiency of sharing economy and facilitating the diversified development of tourism products; and (6) reviewing the Country Parks Ordinance, the Marine Parks Ordinance, regulations concerning the management of beaches etc. to promote green tourism and adventure tourism by abolishing various regulations and restrictions" immediately before the full stop."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment, moved by Mr WU Chi-wai to Mr YIU Si-wing's motion, be passed.

5456 LEGISLATIVE COUNCIL ― 22 March 2017

PRESIDENT (in Cantonese): I now put the question to you as stated. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

Ir Dr LO Wai-kwok rose to claim a division.

PRESIDENT (in Cantonese): Ir Dr LO Wai-kwok has claimed a division. The division bell will ring for one minute.

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Will Members please check their votes. If there are no queries, voting shall now stop and the result will be displayed.

Functional Constituencies:

Mr LEUNG Yiu-chung, Prof Joseph LEE, Mr WONG Ting-kwong, Ms Starry LEE, Mr Steven HO, Mr Charles Peter MOK, Mr IP Kin-yuen, Mr POON Siu-ping, Mr HO Kai-ming, Mr Holden CHOW, Dr Pierre CHAN, Mr LUK Chung-hung and Mr LAU Kwok-fan voted for the amendment.

Mr CHAN Kin-por, Mr YIU Si-wing, Mr Martin LIAO and Mr CHAN Chun-ying voted against the amendment.

LEGISLATIVE COUNCIL ― 22 March 2017 5457

Mr Jeffrey LAM, Mr Frankie YICK, Mr MA Fung-kwok, Ir Dr LO Wai-kwok, Mr CHUNG Kwok-pan, Mr SHIU Ka-fai, Mr Kenneth LAU and Dr YIU Chung-yim abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr CHAN Hak-kan, Mr WONG Kwok-kin, Mrs Regina IP, Mr Paul TSE, Ms Claudia MO, Mr Michael TIEN, Mr WU Chi-wai, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Alice MAK, Dr KWOK Ka-ki, Dr Helena WONG, Dr Elizabeth QUAT, Dr CHIANG Lai-wan, Mr Alvin YEUNG, Mr Andrew WAN, Mr LAM Cheuk-ting, Mr Wilson OR, Ms YUNG Hoi-yan, Mr CHEUNG Kwok-kwan and Mr HUI Chi-fung voted for the amendment.

Dr CHENG Chung-tai, Mr Nathan LAW and Dr LAU Siu-lai voted against the amendment.

Mr LEUNG Kwok-hung, Mr CHAN Chi-chuen and Mr CHU Hoi-dick abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 26 were present, 13 were in favour of the amendment, 4 against it and 8 abstained; while among the Members returned by geographical constituencies through direct elections, 27 were present, 21 were in favour of the amendment, 3 against it and 3 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he therefore declared that the amendment was negatived.

PRESIDENT (in Cantonese): Mr Jeffrey LAM, you may move your amendment.

5458 LEGISLATIVE COUNCIL ― 22 March 2017

MR JEFFREY LAM (in Cantonese): President, I move that Mr YIU Si-wing's motion be amended.

Mr Jeffrey LAM moved the following amendment: (Translation)

"To add "the tourism industry, being one of the four pillar industries of Hong Kong, is crucial to Hong Kong's economic development;" after "That"; to delete "and" after "opportunities;"; and to add "; (4) building new tourist attractions when conditions are ripe, such as a 'historical and cultural village' to display information and articles relating to the traditional industries of Hong Kong, and providing comprehensive transport link and infrastructure support for the 'historical and cultural village' and other remote tourist attractions, such as Hong Kong Geopark; (5) developing both sides of the world-famous Victoria Harbour into a creative world-class leisure, recreational and dining district; (6) apart from expanding the Hong Kong Convention and Exhibition Centre and the Asia World-Expo, constructing another large convention and exhibition centre in Kowloon to increase venue supply and attract the holding of more conventions and exhibitions in Hong Kong, thereby increasing the number of convention and exhibition visitors; (7) discussing with the relevant Mainland departments the enhancement of the policy on Individual Visit Scheme, including allowing Mainland residents with passports to apply online for exit endorsement for visiting Hong Kong, so as to attract more Mainland visitors to Hong Kong, thereby promoting the economic development of Hong Kong; and (8) expediting the construction of the third runway at the airport and relevant complementary facilities, and capitalizing on the opportunities offered by the Belt and Road Initiative to increase flight routes to develop new visitor source markets, so as to consolidate Hong Kong's status as an international aviation hub and further enrich the visitor sources of the tourism industry of Hong Kong" immediately before the full stop."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment, moved by Mr Jeffrey LAM to Mr YIU Si-wing's motion, be passed.

LEGISLATIVE COUNCIL ― 22 March 2017 5459

PRESIDENT (in Cantonese): I now put the question to you as stated. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

Dr KWOK Ka-ki rose to claim a division.

PRESIDENT (in Cantonese): Dr KWOK Ka-ki has claimed a division. The division bell will ring for one minute.

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Will Members please check their votes. If there are no queries, voting shall now stop and the result will be displayed.

Functional Constituencies:

Mr Jeffrey LAM, Mr CHAN Kin-por, Mr Frankie YICK, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Martin LIAO, Ir Dr LO Wai-kwok, Mr CHUNG Kwok-pan, Mr SHIU Ka-fai, Dr Pierre CHAN, Mr CHAN Chun-ying and Mr Kenneth LAU voted for the amendment.

Mr LEUNG Yiu-chung, Prof Joseph LEE, Mr Charles Peter MOK, Mr IP Kin-yuen and Dr YIU Chung-yim voted against the amendment.

5460 LEGISLATIVE COUNCIL ― 22 March 2017

Mr WONG Ting-kwong, Ms Starry LEE, Mr Steven HO, Mr POON Siu-ping, Mr HO Kai-ming, Mr Holden CHOW, Mr LUK Chung-hung and Mr LAU Kwok-fan abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr Paul TSE and Mr Michael TIEN voted for the amendment.

Mr LEUNG Kwok-hung, Ms Claudia MO, Mr WU Chi-wai, Mr CHAN Chi-chuen, Dr KWOK Ka-ki, Dr Helena WONG, Mr Alvin YEUNG, Mr Andrew WAN, Mr CHU Hoi-dick, Mr LAM Cheuk-ting, Ms Tanya CHAN, Mr HUI Chi-fung, Dr CHENG Chung-tai, Mr Nathan LAW and Dr LAU Siu-lai voted against the amendment.

Mr CHAN Hak-kan, Mr WONG Kwok-kin, Mrs Regina IP, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Alice MAK, Dr Elizabeth QUAT, Dr CHIANG Lai-wan, Mr Wilson OR, Ms YUNG Hoi-yan and Mr CHEUNG Kwok-kwan abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 26 were present, 12 were in favour of the amendment, 5 against it and 8 abstained; while among the Members returned by geographical constituencies through direct elections, 28 were present, 2 were in favour of the amendment, 15 against it and 11 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he therefore declared that the amendment was negatived.

PRESIDENT (in Cantonese): Dr KWOK Ka-ki, you may move your amendment.

LEGISLATIVE COUNCIL ― 22 March 2017 5461

DR KWOK KA-KI (in Cantonese): I move that Mr YIU Si-wing's motion be amended.

Dr KWOK Ka-ki moved the following amendment: (Translation)

"To add "the tourism industry has all along been one of the economic pillars of Hong Kong;" after "That"; to delete "; however, the" after "transport" and substitute with ", but at the same time bringing about a series of social problems, including the short supply of daily necessities arising from parallel trading activities, the overloaded public services and transport systems, the continuous inflation of commodity prices and shop rentals to extremely high levels etc., seriously intensifying the conflicts between the Mainland and Hong Kong; although the decreasing of the"; to delete "has been decreasing" before "since 2015"; to delete ", which not only affects" before "the revenues" and substitute with "has affected"; to delete "but also produces ripple effect, causing adverse impact on many related industries, and further affecting the economic development and employment situation of Hong Kong" after "sectors of the tourism industry," and substitute with "some pharmacies, jewellery and goldsmith shops as well as cosmetics shops, which had expanded their business abnormally due to the policy on Individual Visit Scheme, have gradually returned to normal operational levels"; to add "review the economic efficiency of various tourist attractions and" after "the Government should"; to delete "and" after "use of local tourism resources," and substitute with "as well as"; to add "of different nationalities and" after "attracting tourists"; to add "and avoiding the problem of a homogenous source of visitors," after "investment,"; to add ", on the premises of conservation," after "enhance"; to delete "and" after "opportunities;"; and to add "; (4) formulating measures to promote the diversified tourism resources of Hong Kong, so as to attract more overnight visitors of different nationalities to come to Hong Kong for leisure travel and prevent the excessive reliance of the tourism industry on a homogeneous source of visitors; (5) enhancing the appeal of the Hong Kong Disneyland to further drive the development of the tourism industry of Hong Kong; at the same time, before entering into an agreement concerning the expansion of the Disneyland, the Government should review afresh the expected patronage, economic efficiency etc. of the expanded Disneyland to ensure that it can attract more non-local visitors and local residents upon its expansion, and strive to eliminate unfair contract terms in the agreement to protect the 5462 LEGISLATIVE COUNCIL ― 22 March 2017

interests of Hong Kong; (6) formulating a long-term bazaar policy to encourage the development of various kinds of bazaars with local characteristics, including livelihood bazaars, cooked food bazaars, and culture and arts bazaars, so as to attract non-local visitors; and (7) promoting green tourism, including protecting sustainable tourist attractions, such as the natural landscape in Tai O and Mai Po, and promoting cultural tourism, such as ancestral halls, walled villages and temples" immediately before the full stop."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment, moved by Dr KWOK Ka-ki to Mr YIU Si-wing's motion, be passed.

PRESIDENT (in Cantonese): I now put the question to you as stated. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

Dr KWOK Ka-ki rose to claim a division.

PRESIDENT (in Cantonese): Dr KWOK Ka-ki has claimed a division. The division bell will ring for one minute.

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Will Members please check their votes. If there are no queries, voting shall now stop and the result will be displayed.

LEGISLATIVE COUNCIL ― 22 March 2017 5463

Functional Constituencies:

Mr LEUNG Yiu-chung, Prof Joseph LEE, Mr Charles Peter MOK, Mr IP Kin-yuen, Mr POON Siu-ping, Mr HO Kai-ming, Dr Pierre CHAN, Mr LUK Chung-hung and Dr YIU Chung-yim voted for the amendment.

Mr Jeffrey LAM, Mr CHAN Kin-por, Mr Frankie YICK, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Martin LIAO, Ir Dr LO Wai-kwok, Mr CHUNG Kwok-pan, Mr SHIU Ka-fai, Mr CHAN Chun-ying and Mr Kenneth LAU voted against the amendment.

Mr WONG Ting-kwong, Ms Starry LEE, Mr Steven HO, Mr Holden CHOW and Mr LAU Kwok-fan abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr WONG Kwok-kin, Mrs Regina IP, Mr Paul TSE, Mr Michael TIEN, Mr WU Chi-wai, Ms Alice MAK, Dr KWOK Ka-ki, Dr Helena WONG, Mr Alvin YEUNG, Mr Andrew WAN, Mr LAM Cheuk-ting, Ms YUNG Hoi-yan, Ms Tanya CHAN, Mr HUI Chi-fung, Dr CHENG Chung-tai, Mr Nathan LAW and Dr LAU Siu-lai voted for the amendment.

Ms Claudia MO voted against the amendment.

Mr CHAN Hak-kan, Mr LEUNG Kwok-hung, Mr CHAN Chi-chuen, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Dr Elizabeth QUAT, Dr CHIANG Lai-wan, Mr CHU Hoi-dick, Mr Wilson OR and Mr CHEUNG Kwok-kwan abstained.

5464 LEGISLATIVE COUNCIL ― 22 March 2017

THE PRESIDENT announced that among the Members returned by functional constituencies, 26 were present, 9 were in favour of the amendment, 11 against it and 5 abstained; while among the Members returned by geographical constituencies through direct elections, 28 were present, 17 were in favour of the amendment, 1 against it and 10 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he therefore declared that the amendment was negatived.

PRESIDENT (in Cantonese): Mr Michael TIEN, you may move your amendment.

MR MICHAEL TIEN (in Cantonese): President, when I spoke for about eight and a half minutes just now, I said that, "… a study be undertaken … to construct a multi-purpose" …

PRESIDENT (in Cantonese): Mr Michael TIEN, please move your amendment as stated in the Script.

MR MICHAEL TIEN (in Cantonese): President, please let me make a clarification first because I have said something wrong in my previous speech.

PRESIDENT (in Cantonese): Your request is not allowed. You must now move your amendment as stated in the Script.

Do you want to move your amendment?

MR MICHAEL TIEN (in Cantonese): I just said "car park which belongs to Hong Kong and people of Hong Kong", but it should be "motor racing circuit". It is my fault, and I am afraid that Members may vote against my amendment for this reason. (Laughter) I demand that a motor racing circuit be built, and this is a crucial point.

LEGISLATIVE COUNCIL ― 22 March 2017 5465

President, I move that Mr YIU Si-wing's motion be amended. Is that correct, President?

Mr Michael TIEN moved the following amendment: (Translation)

"To delete "benefiting" after "That" and substitute with "Hong Kong has benefited"; to delete "and" after "edges of local tourism resources" and substitute with ","; to add ", and develop world-class and sustainable tourist attractions in Hong Kong" after "Hong Kong characteristics"; to delete "and" after "opportunities;"; and to add "; and (4) changing the previous development approach for tourism projects which was quantity driven, lacking in depth and superficial, and focusing resources on the development of tourist attractions which are world-class, sustainable and not easily replaceable, including but not limited to the project of constructing an international motor racing circuit" immediately before the full stop."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment, moved by Mr Michael TIEN to Mr YIU Si-wing's motion, be passed.

PRESIDENT (in Cantonese): I now put the question to you as stated. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

Mr WU Chi-wai rose to claim a division.

PRESIDENT (in Cantonese): Mr WU Chi-wai has claimed a division. The division bell will ring for one minute.

5466 LEGISLATIVE COUNCIL ― 22 March 2017

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Will Members please check their votes. If there are no queries, voting shall now stop and the result will be displayed.

Functional Constituencies:

Mr Jeffrey LAM, Mr CHAN Kin-por, Mr Frankie YICK, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Martin LIAO, Mr POON Siu-ping, Ir Dr LO Wai-kwok, Mr CHUNG Kwok-pan, Mr HO Kai-ming, Mr SHIU Ka-fai, Dr Pierre CHAN, Mr CHAN Chun-ying, Mr LUK Chung-hung and Mr Kenneth LAU voted for the amendment.

Mr LEUNG Yiu-chung, Mr Charles Peter MOK and Dr YIU Chung-yim voted against the amendment.

Prof Joseph LEE, Mr WONG Ting-kwong, Ms Starry LEE, Mr Steven HO, Mr IP Kin-yuen, Mr Holden CHOW and Mr LAU Kwok-fan abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Dr Priscilla LEUNG, Mr WONG Kwok-kin, Mrs Regina IP, Mr Paul TSE, Mr Michael TIEN, Ms Alice MAK and Ms YUNG Hoi-yan voted for the amendment.

Mr LEUNG Kwok-hung, Ms Claudia MO, Mr CHAN Chi-chuen, Mr CHU Hoi-dick and Dr CHENG Chung-tai voted against the amendment.

LEGISLATIVE COUNCIL ― 22 March 2017 5467

Mr CHAN Hak-kan, Mr WU Chi-wai, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Dr KWOK Ka-ki, Dr Helena WONG, Dr Elizabeth QUAT, Dr CHIANG Lai-wan, Mr Alvin YEUNG, Mr Andrew WAN, Mr LAM Cheuk-ting, Mr Wilson OR, Ms Tanya CHAN, Mr CHEUNG Kwok-kwan, Mr HUI Chi-fung, Mr Nathan LAW and Dr LAU Siu-lai abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 26 were present, 15 were in favour of the amendment, 3 against it and 7 abstained; while among the Members returned by geographical constituencies through direct elections, 29 were present, 7 were in favour of the amendment, 5 against it and 17 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he therefore declared that the amendment was negatived.

PRESIDENT (in Cantonese): Mr Holden CHOW, you may move your amendment.

MR HOLDEN CHOW (in Cantonese): President, I move that Mr YIU Si-wing's motion be amended.

Mr Holden CHOW moved the following amendment: (Translation)

"To delete "benefiting" after "That" and substitute with "Hong Kong has benefited"; to add "(2) expediting the construction of a main stadium for holding concerts and other large-scale performances in the Kai Tak Sports Park, so as to attract more visitors to come to Hong Kong to enjoy the performances, and facilitate the further development of the tourism industry and the music and entertainment industry of Hong Kong;" after "various districts;"; to delete the original "(2)" and substitute with "(3)"; to delete "and" after "opportunities;" and substitute with "(4) establishing a 'cultural transmission and development fund' to promote, protect and transmit local culture, customs and traditional techniques, and encourage young people to join the relevant industries, thus facilitating the transmission of traditional techniques; in addition, while promoting the development of the local cultural and creative industries and preserving local projects that blend Chinese and Western cultures, introducing more 5468 LEGISLATIVE COUNCIL ― 22 March 2017

unique and trendy tourism products to attract visitors to come to Hong Kong; (5) stepping up the promotion of Hong Kong as a culinary capital, a shopping capital and a convention and exhibition capital among countries along the Belt and Road; and"; and to delete the original "(3)" and substitute with "(6)"."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment, moved by Mr Holden CHOW to Mr YIU Si-wing's motion, be passed.

PRESIDENT (in Cantonese): I now put the question to you as stated. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

Mr LEUNG Kwok-hung rose to claim a division.

PRESIDENT (in Cantonese): Mr LEUNG Kwok-hung has claimed a division. The division bell will ring for one minute.

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Will Members please check their votes. If there are no queries, voting shall now stop and the result will be displayed.

LEGISLATIVE COUNCIL ― 22 March 2017 5469

Functional Constituencies:

Mr Jeffrey LAM, Mr WONG Ting-kwong, Ms Starry LEE, Mr CHAN Kin-por, Mr Steven HO, Mr Frankie YICK, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Martin LIAO, Mr POON Siu-ping, Ir Dr LO Wai-kwok, Mr CHUNG Kwok-pan, Mr HO Kai-ming, Mr Holden CHOW, Mr SHIU Ka-fai, Dr Pierre CHAN, Mr CHAN Chun-ying, Mr LUK Chung-hung, Mr LAU Kwok-fan and Mr Kenneth LAU voted for the amendment.

Mr LEUNG Yiu-chung, Mr Charles Peter MOK and Dr YIU Chung-yim voted against the amendment.

Prof Joseph LEE and Mr IP Kin-yuen abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr CHAN Hak-kan, Dr Priscilla LEUNG, Mr WONG Kwok-kin, Mrs Regina IP, Mr Paul TSE, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Alice MAK, Dr Elizabeth QUAT, Dr CHIANG Lai-wan, Mr Wilson OR, Ms YUNG Hoi-yan and Mr CHEUNG Kwok-kwan voted for the amendment.

Mr LEUNG Kwok-hung, Ms Claudia MO, Mr CHAN Chi-chuen, Mr CHU Hoi-dick and Dr CHENG Chung-tai voted against the amendment.

Mr Michael TIEN, Mr WU Chi-wai, Dr KWOK Ka-ki, Dr Helena WONG, Mr Alvin YEUNG, Mr Andrew WAN, Mr LAM Cheuk-ting, Ms Tanya CHAN, Mr HUI Chi-fung, Mr Jeremy TAM, Mr Nathan LAW and Dr LAU Siu-lai abstained.

5470 LEGISLATIVE COUNCIL ― 22 March 2017

THE PRESIDENT announced that among the Members returned by functional constituencies, 26 were present, 20 were in favour of the amendment, 3 against it and 2 abstained; while among the Members returned by geographical constituencies through direct elections, 30 were present, 13 were in favour of the amendment, 5 against it and 12 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he therefore declared that the amendment was negatived.

PRESIDENT (in Cantonese): Mr LUK Chung-hung, you may move your amendment.

MR LUK CHUNG-HUNG (in Cantonese): President, I move that Mr YIU Si-wing's motion be further amended by my revised amendment.

Mr LUK Chung-hung moved the following amendment: (Translation)

"To add ", and creating a large number of job opportunities for the middle class and grassroots, but resulting in the development trend of the Hong Kong tourism industry emphasizing quantity rather than quality" after "transport"; to add "(1) establishing a Tourism Bureau to coordinate and implement the development policies and promotion strategies of the tourism industry; (2) formulating a five-year Overall Development Strategy for the Tourism Industry, which should not only facilitate visitors in retail consumption, but also strengthen the development of exploration tourism, including local in-depth tourism, cultural tourism and eco-tourism, so as to attract visitors of different types (including visitors with high spending power or young or overnight visitors) to Hong Kong, so that the visitor source will become more international;" after "include:"; to delete the original "(1)" and substitute with "(3)"; to add "for developing exploration tourism as well as resources" after "collating resources"; to delete "studying the establishment of an inter-departmental body to enhance the tourism-related facilities in various districts" after "collation results," and substitute with "formulating comprehensive tourism publicity strategies and adopting measures to improve the complementarity of the tourism-related resources"; to delete the original "(2)" and substitute with "(4)"; to delete "and" after "opportunities;"; to delete the original "(3)" and substitute with "(5)"; to delete "characteristics LEGISLATIVE COUNCIL ― 22 March 2017 5471

of Hong Kong local community" after "programmes with" and substitute with "local cultural, historical and countryside characteristics"; and to delete "and stepping up training for tourism industry practitioners, so as to promote the development of the tourism industry" immediately before the full stop and substitute with "so as to enhance the development of exploration tourism in Hong Kong; (6) promoting the development of tourism complementary facilities and tourist attractions, such as 'grass-roots version of food trucks', creativity bazaars and night markets, and amending existing legislation to support and dovetail with such development; and (7) expressly specifying the employment relationship between travel agencies and tour guides as well as tour escorts, and improving the rights and interests, remunerations and training of practitioners in the tourism industry, so as to enhance the service quality of the tourism industry"."

PRESIDENT (in Cantonese): Mr LUK, you should move that Mr YIU Si-wing's motion be amended.

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment, moved by Mr LUK Chung-hung to Mr YIU Si-wing's motion, be passed.

PRESIDENT (in Cantonese): I now put the question to you as stated. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

Mr WU Chi-wai rose to claim a division.

5472 LEGISLATIVE COUNCIL ― 22 March 2017

PRESIDENT (in Cantonese): Mr WU Chi-wai has claimed a division. The division bell will ring for one minute.

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Will Members please check their votes. If there are no queries, voting shall now stop and the result will be displayed.

Functional Constituencies:

Mr Jeffrey LAM, Mr WONG Ting-kwong, Ms Starry LEE, Mr CHAN Kin-por, Mr Steven HO, Mr YIU Si-wing, Mr Martin LIAO, Mr POON Siu-ping, Ir Dr LO Wai-kwok, Mr HO Kai-ming, Mr Holden CHOW, Mr CHAN Chun-ying, Mr LUK Chung-hung, Mr LAU Kwok-fan and Mr Kenneth LAU voted for the amendment.

Mr LEUNG Yiu-chung, Mr Charles Peter MOK and Dr YIU Chung-yim voted against the amendment.

Prof Joseph LEE, Mr Frankie YICK, Mr IP Kin-yuen, Mr CHUNG Kwok-pan, Mr SHIU Ka-fai and Dr Pierre CHAN abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr CHAN Hak-kan, Dr Priscilla LEUNG, Mr WONG Kwok-kin, Mrs Regina IP, Mr Paul TSE, Mr Michael TIEN, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Alice MAK, Dr Elizabeth QUAT, Dr CHIANG Lai-wan, Mr Wilson OR, Ms YUNG Hoi-yan, Mr CHEUNG Kwok-kwan and Dr LAU Siu-lai voted for the amendment.

LEGISLATIVE COUNCIL ― 22 March 2017 5473

Mr LEUNG Kwok-hung, Ms Claudia MO, Mr CHAN Chi-chuen, Mr CHU Hoi-dick and Dr CHENG Chung-tai voted against the amendment.

Mr WU Chi-wai, Dr KWOK Ka-ki, Dr Helena WONG, Mr Alvin YEUNG, Mr Andrew WAN, Mr LAM Cheuk-ting, Ms Tanya CHAN, Mr HUI Chi-fung, Mr Jeremy TAM and Mr Nathan LAW abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 25 were present, 15 were in favour of the amendment, 3 against it and 6 abstained; while among the Members returned by geographical constituencies through direct elections, 30 were present, 15 were in favour of the amendment, 5 against it and 10 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he therefore declared that the amendment was negatived.

PRESIDENT (in Cantonese): Mr YIU Si-wing, you still have 1 minute and 33 seconds to reply. The debate will come to a close after Mr YIU Si-wing has replied.

MR YIU SI-WING (in Cantonese): President and Honourable colleagues, I am grateful to the 35 Members who have spoken on my original motion.

From their speeches, I can tell that all the Members, regardless of whether they are from the pro-establishment or the pan-democratic camp, are supportive of developing tourism in Hong Kong. They share certain views on many issues, and their common views include: first, the tourism industry definitely needs to change its mode of extensive development and should not rest on its laurels, and we must adopt diversified in-depth exploration strategies to develop the tourism industry; second, developing green tourism and cultural tourism is the right direction; the Government must remove barriers and lift restrictions policy-wise, designate a high-level policy department to coordinate efforts, and accord priority to the construction of tourism-related facilities, with a view to giving full play to the edges of local tourism resources; third, apart from upgrading Hong Kong's own software and hardware, we must also uphold hospitality as the basis of our approach to welcoming visitors, and prevent any discourteous behaviour towards visitors or any incidents of deceiving visitors from occurring again.

5474 LEGISLATIVE COUNCIL ― 22 March 2017

Members have floated many innovative ideas, such as motorsport tourism as discussed by Mr Michael TIEN, gourmet tourism as suggested by Mr CHAN Chun-ying, and guided tours of World War II historic sites as mentioned by Mr Jeremy TAM. All these are brilliant proposals. I hope the Government can listen to Members' views and implement the proposals as soon as possible.

I hope Members will support my motion. Thank you.

PRESIDENT (in Cantonese): I now put the question to you and that is: That the motion moved by Mr YIU Si-wing be passed. Will those in favour please raise their hands?

(Members raised their hands)

PRESIDENT (in Cantonese): Those against please raise their hands.

(Members raised their hands)

PRESIDENT (in Cantonese): I think the question is agreed by a majority respectively of each of the two groups of Members, that is, those returned by functional constituencies and those returned by geographical constituencies through direct elections, who are present. I declare the motion passed.

SUSPENSION OF MEETING

PRESIDENT (in Cantonese): I now suspend the meeting until 9 am tomorrow.

Suspended accordingly at 7:51 pm.