LEGISLATIVE COUNCIL ― 9 June 2021 7017

OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 9 June 2021

The Council met at Eleven o'clock

MEMBERS PRESENT:

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

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

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

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

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

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

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

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

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

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

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

THE HONOURABLE WAI-CHUN, J.P.

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

7018 LEGISLATIVE COUNCIL ― 9 June 2021

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

THE HONOURABLE CHI-MING, S.B.S., J.P.

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

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

THE HONOURABLE CHAN HAN-PAN, B.B.S., J.P.

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

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

THE HONOURABLE KWOK WAI-KEUNG, J.P.

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

THE HONOURABLE , B.B.S., J.P.

THE HONOURABLE CHEUNG-KONG, G.B.S., J.P.

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

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

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

THE HONOURABLE CHUNG KWOK-PAN

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

DR THE HONOURABLE KWAN-YIU, J.P.

THE HONOURABLE HO-DING

THE HONOURABLE SHIU KA-FAI, J.P.

LEGISLATIVE COUNCIL ― 9 June 2021 7019

THE HONOURABLE CHONG-SHING, M.H.

THE HONOURABLE YUNG HOI-YAN, J.P.

DR THE HONOURABLE

THE HONOURABLE CHAN CHUN-YING, J.P.

THE HONOURABLE CHEUNG KWOK-KWAN, J.P.

THE HONOURABLE LUK CHUNG-HUNG, J.P.

THE HONOURABLE LAU KWOK-FAN, M.H.

THE HONOURABLE IP-KEUNG, B.B.S., M.H., J.P.

DR THE HONOURABLE CHENG CHUNG-TAI

THE HONOURABLE VINCENT CHENG WING-SHUN, M.H., J.P.

THE HONOURABLE WAI-CHUEN, B.B.S., J.P.

PUBLIC OFFICERS ATTENDING:

THE HONOURABLE KIN-CHUNG, G.B.M., G.B.S., J.P. CHIEF SECRETARY FOR ADMINISTRATION

THE HONOURABLE TERESA CHENG YEUK-WAH, G.B.S., S.C., J.P. SECRETARY FOR JUSTICE

DR THE HONOURABLE LAW CHI-KWONG, G.B.S., J.P. SECRETARY FOR LABOUR AND WELFARE

PROF THE HONOURABLE SIU-CHEE, J.P. SECRETARY FOR FOOD AND HEALTH

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THE HONOURABLE MICHAEL WONG WAI-LUN, J.P. SECRETARY FOR DEVELOPMENT

THE HONOURABLE KWOK-WAI, I.D.S.M., J.P. SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS

THE HONOURABLE YING-WAI, J.P. SECRETARY FOR HOME AFFAIRS

THE HONOURABLE CHING-YU, J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY

MR TSE CHIN-WAN, B.B.S., J.P. UNDER SECRETARY FOR THE ENVIRONMENT

DR BERNARD CHAN PAK-LI, J.P. UNDER SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT

DR RAYMOND SO WAI-MAN, B.B.S., J.P. UNDER SECRETARY FOR TRANSPORT AND HOUSING

CLERKS IN ATTENDANCE:

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

MS DORA WAI, DEPUTY SECRETARY GENERAL

MS ANITA SIT, ASSISTANT SECRETARY GENERAL

MS MIRANDA HON, ASSISTANT SECRETARY GENERAL

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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)

LAYING OF PAPERS ON THE TABLE OF THE COUNCIL

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

Subsidiary Legislation Legal Notice No.

Fire Service (Installations and Equipment) (Amendment) Regulation 2021 ...... 73 of 2021

Firearms and Ammunition (Declaration of Arms) (Amendment) Regulation 2021 ...... 74 of 2021

Telecommunications (Registration of SIM Cards) Regulation ...... 75 of 2021

Court Proceedings (Electronic Technology) (Specification of e-Courts) Rules ...... 76 of 2021

Court Proceedings (Electronic Technology) (Magistrates' Court) Rules ...... 77 of 2021

Court Proceedings (Electronic Technology) (District Court Civil Proceedings) Rules ...... 78 of 2021

Court Proceedings (Electronic Technology) (District Court Criminal Proceedings) Rules ...... 79 of 2021

Court Proceedings (Electronic Technology) (District Court) (Electronic Fees) Rules ...... 80 of 2021

7022 LEGISLATIVE COUNCIL ― 9 June 2021

Court Proceedings (Electronic Technology) (Magistrates' Court) (Electronic Fees) Rules ..... 81 of 2021

Court Proceedings (Electronic Technology) Ordinance (Commencement) Notice ...... 82 of 2021

District Court Civil Procedure (Fees) (Amendment) Rules 2021 ...... 83 of 2021

Rules of the District Court (Amendment) Rules 2021 ... 84 of 2021

Tax Reserve Certificates (Rate of Interest) (Consolidation) (Amendment) (No. 3) Notice 2021 ...... 85 of 2021

Other Papers

Kowloon-Canton Railway Corporation Annual Report 2020 (including Financial Statements and Independent Auditor's Report)

Report No. 18/20-21 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments

ORAL ANSWERS TO QUESTIONS

PRESIDENT (in Cantonese): Questions. First question.

Regulation of credit reference agencies

1. MR CHAN CHUN-YING (in Cantonese): President, regarding the regulation of credit reference agencies ("CRAs"), will the Government inform this Council:

(1) as the authorities in Singapore will require credit providers (e.g. banks) to submit credit data to CRAs once a week, while the relevant time limit in Hong Kong is 31 days, whether the LEGISLATIVE COUNCIL ― 9 June 2021 7023

Government will consider shortening such time limit so that credit reports will reflect the up-to-date credit risks; if so, of the details; if not, the reasons for that;

(2) whether it will, by drawing reference from the relevant practices in Singapore and the United Kingdom ("UK"), enact legislation to require that CRAs' operation must be recognized or authorized by the financial regulator; if so, of the details; if not, the reasons for that; and

(3) given that at present, the Office of the Privacy Commissioner for Personal Data ("PCPD") may only issue enforcement notices to the data users who have contravened the Personal Data (Privacy) Ordinance, whether the Government will, by drawing reference from the relevant practices in Singapore and UK, empower PCPD to impose fines on the data users (including CRAs) who have contravened the Ordinance; if so, of the details; if not, the reasons for that?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, having consulted the Constitutional and Mainland Affairs Bureau ("CMAB") and the Hong Kong Monetary Authority ("HKMA"), my reply to the various parts of the question is as follows:

(1) and (2)

Under the current legal framework, personal data are protected by the Personal Data (Privacy) Ordinance ("PDPO"). The Code of Practice on Consumer Credit Data ("Code of Practice") is issued by the Office of the Privacy Commissioner for Personal Data ("PCPD") under section 12 of PDPO with an aim to provide practical guidance on the handling of consumer credit data to credit reference agencies ("CRAs") and credit providers in Hong Kong. The Code of Practice covers requirements governing the collection, accuracy, use and security of consumer credit information, as well as data access and correction requests. The Code of Practice also requires consumer CRAs to take appropriate actions in daily operations, 7024 LEGISLATIVE COUNCIL ― 9 June 2021

including monitoring and reviewing on a regular and frequent basis usage of the database, with a view to detecting and investigating any unusual or irregular patterns of access or use.

Banks and other credit providers, as users of services of CRAs, are required to comply with the requirements of PDPO and the Code of Practice in their sharing and use of customers' credit data through CRAs. HKMA, as a regulator for banks, requires banks to have clear and comprehensive policies and procedures to ensure compliance with the relevant requirements.

To promote competition in the sector, HKMA has been discussing with the Hong Kong Association of Banks, the Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies and the Hong Kong S.A.R. Licensed Money Lenders Association Limited (collectively referred to as "Industry Associations") the proposal of introducing more than one consumer CRA in Hong Kong. It seeks to implement the relevant arrangement soon with a view to enhancing the service quality of consumer CRAs and reducing the operational risk of having only one commercially-run consumer CRA in the market, particularly the risk of single point of failure. HKMA and the Industry Associations have reached a consensus on the new operating model under the proposal. The Industry Associations are actively pursuing various preparatory work, including the drawing up of a code of practice for the CRA industry ("Industry Code") to stipulate applicable standards on various aspects including corporate governance, internal control, and use and protection of customer data; as well as the setting up of a governance body to enforce the relevant work. HKMA will endorse the Industry Code and revise its Supervisory Policy Manual module on "The Sharing and Use of Consumer Credit Data through a Credit Reference Agency" to set out the supervisory expectation for banks to interface with CRAs through a multiple CRAs platform and comply with the regulatory requirements upon commencement of the platform. As these arrangements will significantly enhance the regulation of consumer CRAs, the Administration has no plan to introduce legislation to require CRAs to seek endorsement or authorization from financial regulators for their operations.

LEGISLATIVE COUNCIL ― 9 June 2021 7025

According to the Code of Practice, credit providers should update account information promptly, by the end of each reporting period and not exceeding 31 days in any event. While shortening the reporting period for credit providers to submit data may allow credit reports to reflect the latest information, it will also reduce the time available for credit providers to handle and verify the relevant information. A customer's credit record and rating may be affected as a result should any doubt arises over the accuracy of data submitted to CRAs. The trade generally considers that the current information updating arrangements can broadly fulfil its credit risk management needs. The Industry Associations have not received any views requesting changes to the current practice during discussion of the proposal to introduce multiple CRAs. Since shortening the information reporting period may affect to a varying extent credit providers' operational workflow and information technology system, we consider it appropriate to maintain the reporting period at 31 days.

(3) Pursuant to PDPO, if the Privacy Commissioner for Personal Data ("the Commissioner") considers that a data user contravenes a Data Protection Principle, the Commissioner may issue an enforcement notice to the data user requesting rectification. If the data user does not comply with the requirements of the enforcement notice, the Commissioner would refer the case to the Police for criminal investigation and prosecution. Upon conviction, non-compliance with an enforcement notice may attract a fine at level 5 (HK$50,000) and imprisonment of up to two years.

CMAB is contemplating amendments to PDPO, with a view to strengthening the protection of personal data privacy. It consulted the Legislative Council Panel on Constitutional Affairs earlier on the direction of amendments to PDPO, including exploring the feasibility of introducing administrative fines for data users who contravene PDPO. CMAB is further studying with PCPD the precise arrangements involved such as the penalty mechanism and level of fine, and will make reference to relevant laws in other jurisdictions with a view to devising practicable legislative proposals.

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MR CHAN CHUN-YING (in Cantonese): President, the Bureau has given quite a detailed response to my concerns and I can see its point. Given that consumer credit reference agencies ("CRAs") in the United Kingdom are allowed to provide credit data to not only financial institutions but also institutions of other sectors (e.g. public utilities or government bodies) to facilitate their verification of personal identity and recovery of default payments, may I ask whether the authorities will consider allowing institutions of other sectors to obtain consumer credit data?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, the Code of Practice issued by the Commissioner provides Hong Kong's credit providers with practical guidance on their access to consumer credit data held by CRAs. As Mr CHAN just said, credit providers currently do not cover institutions of other sectors such as public utilities and government bodies because under the Code of Practice, credit providers mainly include authorized institutions within the meaning of section 2 of the Banking Ordinance and their subsidiaries, and a money lender licensed under the Money Lenders Ordinance.

Of course, we are aware of the public calls for the authorities to facilitate personal identity verification by institutions of other sectors. Yet, there is a question of balance. We must strike a balance between the consideration of facilitating the verification of personal identity and the recovery of default payment by institutions and the need to protect consumer credit data. We will further listen to views on this issue because there must be sufficient justifications before we can allow institutions of other sectors to access consumer credit data through CRAs. If CRAs are allowed to provide credit data to institutions of other sectors, the Code of Practice may have to be revised accordingly. This warrants further discussion, and we will continue to work with HKMA and PCPD to continue to listen to people's views.

MR CHAN KIN-POR (in Cantonese): President, presently in Hong Kong, the consumer CRA charges a monthly subscription fee of $280 for online access to credit reports. If a lender refuses to grant loans after assessing an individual applicant's credit record, the applicant may obtain a free credit report from CRA. However, in Australia and the United States, an individual is entitled to obtain one free credit report from CRAs every year; in the Mainland of China, an LEGISLATIVE COUNCIL ― 9 June 2021 7027 individual is even entitled to two free reports per year. My question is: Will the authorities introduce the relevant measure in Hong Kong to allow each member of the public to obtain one free credit report every year?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, under the existing arrangement, a loan applicant may obtain a free credit report from CRA if his loan application is rejected. According to my understanding, the Industry Associations intend to extend this arrangement by requesting CRAs to provide more credit reports for free, e.g. one free report for each member of the public per year. The Industry Associations will announce the specific arrangement and relevant details in a timely manner.

MR MARTIN LIAO (in Cantonese): President, in Hong Kong, CRA currently charges a monthly subscription fee of $280 for online access to credit reports. An individual loan applicant may obtain a free credit report from CRA only when his loan application is rejected by the lender after credit record assessment. However, in Australia and the United States, an individual is entitled to obtain one free credit report from CRAs every year, whereas in the Mainland of China, an individual is entitled to two such reports per year. My question is: Will the authorities consider requiring CRAs to provide each member of the public with at least one free credit report every year?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, since both Mr CHAN and Mr LIAO have expressed similar views on a similar subject just now, it shows that this is a matter of grave concern to Members. Here, I reiterate that the Industry Associations intend to extend the existing arrangement under which an individual loan applicant may obtain a free credit report from CRA after the rejection of his loan application. The Industry Associations will later announce the specific details, including considering requesting CRAs to provide additional credit reports for free, perhaps one free report for every member of the public per year.

MR MA FUNG-KWOK (in Cantonese): President, while consumers' financial data and personal information are contained in the database, members of the public may have their preferred consumer CRA given the different backgrounds of CRAs. I would like to ask the authorities: Do members of the public have the 7028 LEGISLATIVE COUNCIL ― 9 June 2021 right to choose the CRA they like when applying for bank loans, as in the present case of choosing the vaccine to be administered? Or the choice of CRAs must be approved or appointed by banks?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, we understand very well that the public are concerned whether they have the right to choose their preferred CRAs. Therefore, we have long been discussing the relevant arrangement with the Industry Associations. As far as I understand it, the Industry Associations have already reached a consensus on the new business model of CRAs and will require all credit data be shared among all CRAs under the new system. In addition, according to the recommendation of the Industry Associations, it will be for banks to decide which CRA to use in obtaining credit reports for the purposes of loan approval, and to inform their customers of the relevant decisions. If members of the public want to obtain credit reports on their own initiatives, they are free to choose their preferred CRAs.

MR YIU SI-WING (in Cantonese): President, while credit data are currently provided directly to CRAs by credit providers, banks or individuals are required to pay $280 for obtaining such data. Yet, in future, credit data will be provided by credit providers to CRAs through the Hong Kong Interbank Clearing Limited ("HKICL"). To this end, HKICL has spent $100 million to develop the necessary system and the annual maintenance cost for data processing is between $20 million and $30 million. In that case, will banks and individuals be required to, apart from CRAs, make payments to HKICL as well? If so, will this add to the financial burden of banks or individuals? Will the Government consider asking HKICL not to charge a fee for this?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, a number of Members have just given views on the charging of fees from different angles. The fee level set by CRAs is simply a commercial decision, and it is expected that following the introduction of a new CRA to promote competition in the industry, not only the service quality will be improved, the fees of credit data services to be paid by consumers may also be further reduced.

LEGISLATIVE COUNCIL ― 9 June 2021 7029

After giving a brief explanation of the situation that new market entrants may drive down overall fee as a result of competition, I have also mentioned certain specific circumstances just now. For instance, the Industry Associations intend to request CRAs to extend the current arrangement under which a loan applicant may obtain a free credit report from CRA after his loan application was rejected. Our major principle is to address the fee issue through competition, and make individual arrangements for specific circumstances to provide appropriate subsidies or assistance for the applicants to obtain free reports.

PRESIDENT (in Cantonese): Mr YIU Si-wing, which part of your supplementary question has not been answered?

MR YIU SI-WING (in Cantonese): My question is not about the fee charging arrangement of CRAs. Instead, will HKICL charge a fee for the collection of data submitted by credit providers before transferring it to CRAs in the future? After all, the development cost borne by HKICL is very high.

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

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, just now, I tried to answer the question from the perspective of users and explained how the introduction of competition may bring changes to the fee level. On the issue mentioned by the Member earlier concerning the Industry Associations and the relevant organizations, there was actually communication among them. Of course, we will relay Mr YIU's opinions given just now to the Industry Associations for consideration.

MR TONY TSE (in Cantonese): President, credit data is often necessary, but my understanding is that only individuals are allowed to access such data under the current system. However, small and medium enterprises ("SMEs") taking bank loans in the name of an enterprise also need the relevant services.

7030 LEGISLATIVE COUNCIL ― 9 June 2021

Here is my question. Will banks access the credit data of owners or shareholders of SMEs if they apply for loans? Will the Government consider, when necessary, reviewing the existing data access arrangement applicable only to individuals? If not, what are the reasons? Is there a timetable?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, as Mr TSE just said, the credit data access situation of SMEs is different from that of individuals, which has given rise to different arrangements. If the credit data access system has to be expanded to cover SMEs, this may necessitate an update of the services provided by individual CRAs for compliance with the relevant laws and regulations. As I said earlier, CRAs are required to comply with the Code of Practice issued by the Commissioner and other relevant laws. We must therefore give holistic consideration.

We will consider the suggestion in due course to examine the possibility and circumstances under which new or additional services can be provided, given that the credit nature of SMEs and individuals is different and falls under different scopes. And yet, we will consider the relevant views.

MS ALICE MAK (in Cantonese): President, here in Hong Kong, credit data services are essentially no-cost business as we have to pay CRAs for access to personal data collected from us. As mentioned by various Members just now, members of the public are required to pay CRAs for accessing their own credit records. How can it be right to charge a person for accessing his own personal data? To subscribe the notification service of access to credit data, members of the public will have to pay several hundred dollars per month to CRAs.

Just now, I heard the Secretary say in the main reply that the introduction of a new platform was under consideration. This initiative sounds good to me, but what is the progress and how long will it take? Why does the Secretary consider that no regulation is necessary after the introduction of this platform? CRA is simply too bad. Although something went wrong in its handling of personal privacy data earlier on, PCPD could only send it a complaint letter or urge it to make rectification. CRAs are not subject to any regulation but possess the personal data of all Hong Kong people. As long as a person has applied for a credit card, CRAs could then secure his personal data. Why does the LEGISLATIVE COUNCIL ― 9 June 2021 7031

Secretary consider that problems relating to such unregulated agencies, including the requirement for members of the public to pay for the access of their own data, can be solved by introducing a new platform to bring in competition?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, as said by Ms Alice MAK, if we look from a micro-perspective, it is true that CRAs have maintained massive personal data. Yet, they do not merely play the role of a library but also engage in a series of tasks mentioned by Ms Alice MAK, such as information security, system administration and data management. Furthermore, they have to satisfy certain requirements because, after all, the data maintained by them involves a large number of people rather than a single person. Therefore, CRAs are not doing no-cost business as the Member just said. They need to put in resources and must be subject to regulation.

As I stated earlier on, three agencies have been invited by the Industry Associations to undergo further competency assessment in the next phase for bringing in more market participants. It is hoped that by increasing the number of market participants, the availability of choices in the market will provide room for service improvement and fee reduction that are beneficial to the entire market.

PRESIDENT (in Cantonese): Ms Alice MAK, which part of your supplementary question has not been answered?

MS ALICE MAK (in Cantonese): My question for the Secretary is: Why does he consider that no regulation by the regulatory authorities is necessary after the introduction of competition?

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

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): This is absolutely not the case. Right at the beginning of my main reply, I said that both PDPO and the Code of Practice are still applicable after the admission of new market participants. Thus, there is absolutely no such case as CRAs are left unregulated. This is my first point.

7032 LEGISLATIVE COUNCIL ― 9 June 2021

Secondly, I would like to take this opportunity to briefly state the progress of evaluation of the three agencies. The Industry Associations announced in early May that three agencies had been shortlisted to enter the next stage of tender evaluation for further assessment of their competencies in a series of tasks, including information security and system administration.

PRESIDENT (in Cantonese): Second question.

Encouraging members of the public to receive vaccination

2. MS YUNG HOI-YAN (in Cantonese): As at the end of last month, there were about 1 million members of the public in the territory who had received two doses of vaccines against the Coronavirus Disease 2019, accounting for 15% of the local population aged 16 or above. An expert on epidemiology has pointed out that such a take-up rate is inadequate to build a herd immunity barrier to guard Hong Kong against the outbreak of a new wave of epidemic. In this connection, will the Government inform this Council:

(1) of the targeted publicity and education programmes to allay public concerns over the safety of the vaccines;

(2) whether it will adopt a multi-pronged approach to spur various public and private organizations to provide incentives to encourage their staff to receive vaccination; if so, of the details; if not, the reasons for that; and

(3) as an expert on epidemiology has pointed out that persons who have been fully vaccinated have a very low chance of contracting or spreading the disease, whether the Government will relax the restrictions on immigration, social distancing, resumption of classes, etc. to which such persons are subject; if so, of the details; if not, the reasons for that?

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, the Government launched the "Early Vaccination for All" campaign with an aim to building an immune barrier in Hong Kong as soon as possible by significantly LEGISLATIVE COUNCIL ― 9 June 2021 7033 raising the vaccination rate during the critical period from now until the end of August, thereby restoring normality to society sooner rather than later.

In consultation with the Education Bureau, my reply to the various parts of the question raised by Ms YUNG Hoi-yan is as follows:

(1) The Government has followed the principles of openness, transparency, accuracy and timeliness and adopted a science-based approach to provide members of the public with the latest information on COVID-19 vaccines through different channels and made public the views of experts, so as to build up social momentum and improve citizens' willingness to get vaccinated.

To provide the public a one-stop destination to learn about the latest information on COVID-19 vaccines, we have launched the COVID-19 Vaccination Programme thematic website to explain the principles of the vaccines, their protection and need-to-know facts, etc. We have recently added new features to the thematic website and set up a data dashboard to publish latest information regarding vaccination, including the number of doses administered, remaining days of operation and remaining quotas of the Community Vaccination Centres, etc.

In terms of publicity and education, the Department of Health ("DH") has produced a large amount of materials delivered via different media channels for promotion to urge members of the public to get vaccinated. We understand that science-based evidence is particularly important. DH therefore invited family doctors to participate in informative programmes to assess whether different cases are suitable for receiving vaccines. For example, DH is now collaborating with the Hospital Authority and Radio Television Hong Kong for several weeks, through the programme "Vaccine Line", to explain whether different illnesses will affect the effectiveness and safety of COVID-19 vaccination. The programme also answers public enquiries so that members of the public would feel at ease about getting vaccinated.

7034 LEGISLATIVE COUNCIL ― 9 June 2021

The two vaccines currently provided in Hong Kong are safe, efficacious and of good quality. Having considered that members of the public are concerned about adverse events following COVID-19 vaccination, we issue a weekly press release to provide updated statistics and relevant information on monitoring COVID-19 vaccination. The comparison figures of adverse events out of those with and without vaccination as well as the respective baseline reference figures have also been uploaded to the thematic website. So far, there is no death case identified by the Expert Committee on Clinical Events Assessment Following COVID-19 Immunisation as having causal relationship with COVID-19 vaccination.

We will continue to disseminate accurate and comprehensive information on COVID-19 vaccination in an open and transparent manner. We will also step up monitoring of false information on vaccines within the community and make clarifications as necessary. For example, we have repeatedly explained that COVID-19 vaccines are being used in large scale around the world. This has provided us substantial real world data to prove that unless one has contraindications, the vast majority of people are suitable for vaccination. The public really does not need to wait and should get vaccinated as soon as possible. They should consult a doctor if there are any concerns.

(2) and (3)

Since the start of the COVID-19 Vaccination Programme, about 2.71 million doses of vaccines had been administered and about 1.58 million of them were the first dose, accounting for 24.1% of the population aged 16 or above in Hong Kong. To encourage members of the public to get vaccinated as soon as possible, various measures are being gradually rolled out by the Government and different sectors in the community.

Facilitating vaccination

To take the lead, government employees will be entitled to a day of vaccination leave or be allowed to apply for one day of authorized absence for each vaccination dose received. A high vaccine take-up rate is beneficial for our society and businesses. The LEGISLATIVE COUNCIL ― 9 June 2021 7035

Government appeals to organizations and enterprises to encourage their staff to get vaccinated, and to arrange vaccination leave and other facilitation measures where practicable.

Facilitating gatherings

The Government will further relax social distancing measures with the "vaccine bubble" concept as the basis, including relaxation of the maximum number of persons allowed at premises and group gatherings, the maximum capacity of premises and operation hours, the types of activities allowed, the distance among groups, and the mask-wearing requirement.

Facilitating travelling

The Government has shortened the quarantine period for fully vaccinated persons arriving at Hong Kong under the "vaccine bubble" concept. When the Government discusses travel arrangements with other countries or regions in the future, vaccination before travel will be a necessary requirement to ensure that citizens will have sufficient protection during travel.

Vaccination in lieu of regular testing

The vaccination in lieu of regular testing approach is being implemented for frontline government employees to safeguard their health. Frontline employees who have received the first dose of a vaccine and provided their vaccination record could be exempted from regular testing.

Arrangements for class resumption

The Education Bureau has been encouraging teachers and staff of schools to get vaccinated and encouraging schools to provide them with facilitation. The Education Bureau has also issued letters to encourage schools in Hong Kong to arrange vaccination leave for teachers and staff for receiving vaccination. When considering the resumption of full-day classes and other anti-epidemic measures in 7036 LEGISLATIVE COUNCIL ― 9 June 2021

the future, the Government will consider the overall vaccine take-up rate of teachers and staff as well as students in each school and consider allowing more learning time and activities to resume.

Vaccination promotion activities

The Government welcomes the incentives actively provided by the commercial sector and organizations to encourage members of the public to receive COVID-19 vaccines. We understand that the commercial sector and many organizations are considering to organize lucky draw activities for this. In order to facilitate their applications for the relevant licence(s), the Government will expedite the processing of the relevant applications and assist in conducting verification, etc.

Last week in Hong Kong, a confirmed case with unknown source of infection involving the highly transmissible mutant strain emerged, sounding the alarm for the epidemic. The fifth wave of the epidemic could strike at any time and could possibly involve mutant strains with higher transmissibility and bringing greater threats. The two vaccines provided by the Government fulfil the criteria of safety, efficacy and quality. Only through the "Early Vaccination for All" campaign can Hong Kong build a barrier for protection with no delay.

MS YUNG HOI-YAN (in Cantonese): President, I have noticed that the Government has actually done a lot of work to allay public concern and encourage vaccination. I have also noticed that the latest seven-day average of doses administered has exceeded 40 000, and the "LeaveHomeSafe" mobile app ("LeaveHomeSafe") has also recorded downloads of over 4 million, which are big numbers. Besides, we are aware that after the Government spurred the business sector to promote vaccination, the latter has given its all-out support and launched a large variety of activities offering various kinds of prizes such as flats, hotel accommodation, travel packages and Hong Kong Disneyland coupons. In fact, the greatest hope of members of the public is to make use of "LeaveHomeSafe" to enrol in all lucky draws. Even though the Government has not undertaken to provide any cash prize or launch lucky draws for the public, people will very much welcome if it can liaise with the business sector to enable them to make use of "LeaveHomeSafe" to enrol in all lucky draws.

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Will the Government consider boosting the overall vaccine take-up rate by enabling members of the public to enrol in the lucky draws using "LeaveHomeSafe", while at the same time promoting "LeaveHomeSafe" to get more downloads? Will the Government consider this option?

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, as Ms YUNG Hoi-yan said just now, "LeaveHomeSafe" has recorded downloads of over 4 million. To provide convenience, members of the public can now use "LeaveHomeSafe" to access premises under the "vaccine bubble" and to show others that they have received vaccination in the future. In fact, the Innovation and Technology Bureau has already introduced new functions in "LeaveHomeSafe" so that the public can use it to view the general status of their vaccination.

Apart from "LeaveHomeSafe", people can also view the status of their vaccination in "iAM Smart" and the records of the Hospital Authority. Finally, there certainly is a paper vaccination certificate for use by the public too.

PRESIDENT (in Cantonese): Ms YUNG Hoi-yan, which part of your supplementary question has not been answered?

MS YUNG HOI-YAN (in Cantonese): President, she has not answered me. Will the Government liaise with the business sector to enable the people to enrol in the lucky draws using "LeaveHomeSafe" so as to save them the trouble of having to visit over 10 websites and enrol through different pathways?

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

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, as I said earlier, we welcome the provision of incentives by the business sector and will facilitate their work by all means. We will provide assistance mainly in two areas. First, when the business sector applies for licences for organizing, say, 7038 LEGISLATIVE COUNCIL ― 9 June 2021 lucky draws, the Government will expedite the processing of the applications. Second, if there is a need to verify whether a winner has actually received vaccination, the Government will also provide assistance in verification.

DR CHIANG LAI-WAN (in Cantonese): President, the Government ordered about 2 million doses each of Comirnaty and CoronaVac back then, but after administering the vaccines for a while, there are fewer and fewer doses left now. If I project on the basis of the average booking rate for the next seven days, CoronaVac will probably be used up in mid or late July while Comirnaty will probably be used up even sooner in late June. My projection was made on the basis of the average booking rate for the next seven days and the remaining stock for administering the first and second doses of vaccines; and according to the Government, no more vaccines will be delivered to Hong Kong this year.

May I ask the Secretary to state clearly whether more vaccines will be delivered to Hong Kong this year? The Secretary once said that the vaccines would last until the end of August or September, so will there be a situation where those who now plan to receive vaccination in September may not be able to do so? If more vaccines will be delivered to Hong Kong this year, will the Government consider requiring members of the public who intend to receive vaccination to indicate their willingness to do so when registering online so as to enable the Secretary to confirm the shipment of vaccines to avoid wastage?

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, I thank Dr CHIANG Lai-wan for the supplementary question. As regards the current supply of the two vaccines, we will certainly monitor the situation closely. In fact, over the past week, we have noticed that apart from an increase in the number of doses administered per day, the number of bookings has also increased. However, quotas are still available in each of the vaccination centres. Thus, I will hereby particularly appeal to members of the public who intend to receive vaccination to make a booking as soon as possible.

Regarding the schedules of shipment and delivery of the two vaccines, we have been liaising closely with the parties concerned, including that of Comirnaty. In fact, the take-up rates and the number of vaccination bookings for both vaccines have increased. Thus, we will continue to monitor the overall LEGISLATIVE COUNCIL ― 9 June 2021 7039 and shipment schedules on this basis in the days to come so as to avoid problems of vaccine supply. We have been working all along, but would also like to particularly appeal to the public to receive vaccination as soon as possible while vaccines are still available. Although there is an increase in the number of bookings in each vaccination centre, quotas are actually still available. Therefore, members of the public should expeditiously make a booking while stocks last.

MR SHIU KA-FAI (in Cantonese): Secretary, on 5 May, I asked the Government in this Chamber whether it would offer additional electronic consumption vouchers worth $3,000 as an incentive to encourage more people to receive vaccination. Back then, I said that since the atmosphere for receiving vaccination was bad and there might still be room for the Government to improve its explanatory work on the benefits of vaccination, the vaccine take-up rate was very low. Recently, I noticed that the Secretary has made much improvement in her promotional efforts and plenty of explanatory work has been conducted to explain the effects of vaccination on the public to allay their concerns. In the community, many people from the business sector are so good that they have offered many incentives by organizing lucky draws to give out prizes such as flats, gold, cash, movie tickets, etc. I am very grateful to them.

Although the vaccine take-up rate has now increased significantly, may I ask the Secretary what else can be done if it fails to reach 70% by a certain time? If people refuse to drink a toast, will they be forced to drink a forfeit? If they choose to drink a forfeit, will the Secretary set a time limit and tell the public the price to be paid if they refuse to receive vaccination by then, e.g. to pay for the vaccines, so that they will get vaccinated as soon as possible?

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, I thank Mr SHIU Ka-fai for the supplementary question. First, certainly, on the premise of providing vaccines that are safe, efficacious and of good quality, the Government has been closely monitoring the overall vaccine take-up rate, and where feasible, providing various facilitation measures as I mentioned earlier in the main reply, including the "vaccine bubble", vaccination leave as well as open and transparent information that facilitates members of the public, so that they can have a clear understanding of the general information about the vaccines. 7040 LEGISLATIVE COUNCIL ― 9 June 2021

And, if members of the public are concerned about their health conditions, we have also broadcast programmes including "Vaccine Line" in which medical practitioners will answer questions from the public to make them feel at ease about getting vaccinated. Certainly, we are currently monitoring the overall situation of vaccination and hope that the rest of the business sector and other sectors will join hands to offer incentives so as to achieve early vaccination for all.

While we will continue to offer incentives, conduct explanatory work and provide open and transparent information, the reality is that getting vaccinated can protect the people themselves and their families as well as build an immune barrier in the community. As Members may be aware, there was another case with unknown source of infection last week that sounded an alarm. If the fifth wave of the epidemic does strike, I feel that the one and only most effective way out is for everyone to get vaccinated soon enough to protect themselves and fight against the next wave of the epidemic.

We will continue to monitor the shipment and supply of the vaccines, hoping that on the premise of no wastage, all Hong Kong people will cooperate and get vaccinated together. Certainly, as we have pointed out many times, in many places around the world, vaccines may not be available or may not be sufficient for everyone. Hence, with abundant supply of vaccines in Hong Kong, we should not waste them.

PRESIDENT (in Cantonese): Mr SHIU Ka-fai, which part of your supplementary question has not been answered?

MR SHIU KA-FAI (in Cantonese): President, the Secretary has not answered my supplementary question in her three-minute reply. Will the Secretary set a time limit and tell the public that if they do not get vaccinated by then, they may have to pay a fee, as Dr Junius HO said?

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

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SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, in fact, the time limit has been set. We have indicated that the 29 vaccination centres across the territory will complete their work in September, after which vaccination will mainly be administered by private doctors using CoronaVac. If there are needs for some targeted groups to be administered with Comirnaty, arrangements will then be made. Thus, the time limit has been set.

As regards whether a fee payment will be required in the future, we have certainly heard many different voices. Thus, on the premise of providing free vaccination at present, we will make every effort to encourage the public to get vaccinated first.

MR CHUNG KWOK-PAN (in Cantonese): President, the Secretary has been encouraging the public to get vaccinated since long ago. Protecting ourselves is something we should do, but many people do not get vaccinated even though they know it can protect them. At present, many in the business sector have launched various reward schemes offering incentives which are material in nature. However, there is another very big incentive. If the Government can liaise with Mainland officials, particularly those of the Guangdong Provincial Government, to require members of the public entering the Mainland to be quarantined for 21 days if they have not been vaccinated; for 14 days if they have received the first dose of vaccine and for 7 days if they have received the second dose, this can be a great incentive and motivation for people who have to do business on the Mainland to get vaccinated. Those who want to reunite with their families will also get vaccinated. This will encourage many people who need to do business or reunite with their families to get vaccinated, and for those who want to travel abroad. Can the Government do that as this sounds really attractive?

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, I thank Mr CHUNG for the supplementary question. As regards whether members of the public can travel or what the travel restrictions will be after they get vaccinated, we need to discuss with other places, whether it is the Mainland or other countries. At present, we have been paying close attention to the announcements of various places. For people who have been vaccinated with certain vaccines, it is possible that their quarantine periods will be shortened. Hong Kong has already implemented this kind of measures. However, if 7042 LEGISLATIVE COUNCIL ― 9 June 2021 members of the public want to travel to other places, we must continue to liaise with the authorities concerned. Members can rest assured that we will continue to liaise with the Mainland and other places in this regard.

PRESIDENT (in Cantonese): Third question.

Medication management relating to the elderly

3. DR CHIANG LAI-WAN (in Cantonese): It is learnt that due to a lack of knowledge of medications, quite a number of the elderly living at home organize and store medications improperly, and even unknowingly take at the same time multiple medications that cause an overdose or cancel out each other's effects, thus harming their health. Furthermore, medication incidents such as wrong dispensation of medication, and failure to keep accurate medication records have occurred from time to time at residential care homes for the elderly ("RCHEs"). For example, an incident occurred last year in which an elderly resident of an RCHE suffered from cerebrovascular disease and fell into a coma allegedly because she had taken the wrong medication given to her. In this connection, will the Government inform this Council:

(1) whether it will subsidize non-profit-making organizations for providing pharmacist home visit services, and strengthen the pharmacist services provided by District Health Centres, such as providing the elderly with counselling on the use of medicines and services for organizing and packaging of medications; if so, of the details; if not, the reasons for that;

(2) given that the Government implemented the Pilot Scheme on Visiting Pharmacist Services for RCHEs during the period between 2010 and 2018 to enhance the medication management capabilities of RCHE staff, whether the Government will implement again and regularize the Scheme; whether the Government will provide subsidy to RCHEs for installing an electronic medication dispensing system and training their staff, so as to minimize cases of erroneous dispensation of medications; if so, of the details; if not, the reasons for that; and

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(3) given that the Office of The Ombudsman recommended, in its direct investigation report published in 2018, making wrong administration of medications by RCHE staff an offence, and the Working Group on the Review of Ordinances and Codes of Practice for Residential Care Homes also recommended enacting legislation to require RCHEs to properly handle medications, whether the Government will amend the relevant legislation; if so, of the timetable; if not, the reasons for that?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, having consulted the Food and Health Bureau ("FHB"), my consolidated reply is as follows:

(1) Operators subsidized by the Government to provide home care services for the frail elderly have to conduct assessment of each frail elderly person in order to formulate their individual care plans, including assessing whether he/she needs drug management service taking into account the conditions of the elderly person concerned and his/her family. Operators will provide drug management service for elderly persons in need, which includes advising them to check the expiry date of medication and sorting medication, providing them and their carers with information related to medication, assisting them to understand the importance of taking medication on time, etc.

In a bid to shift the emphasis of the present healthcare system and mindset from treatment-oriented to prevention-focused, the Government, through FHB, is setting up District Health Centres ("DHCs") in all 18 districts across the territory. A multidisciplinary team comprising nurses, allied health professionals, pharmacists, social workers and supporting staff provides government-funded services, including health promotion, health assessment, chronic disease management and community rehabilitation at district level. As part of the DHC team, the on-site pharmacists are responsible for providing free medication consultation and drug compliance counselling service to members. Meanwhile, DHCs are positioned as district primary healthcare hubs to connect the primary healthcare services provided by the public sector, private sector and non-governmental organizations in the community, with a view to 7044 LEGISLATIVE COUNCIL ― 9 June 2021

providing healthcare services and information on community resources to the public and enhancing information transparency. DHCs also strive to offer professional guidance to members of the public when needed and in a coordinated manner. FHB will continue to review the demand for pharmacy services and their role in primary healthcare.

(2) To raise awareness of drug safety and strengthen capability in drug management of residential care homes for the elderly ("RCHEs"), the Social Welfare Department ("SWD") has implemented various measures covering different aspects such as system establishment, staff training, professional advisory service and technological support, including the following five measures:

(a) SWD collaborated with the Department of Health and the Hospital Authority to review the Operational Manual on Drug Management in RCHEs, and published the revised Guidelines on Drug Management in Residential Care Homes in end August 2018. It sets out clear guidelines on the basic principles, procedures and quality assurance mechanism for drug management in residential care homes ("RCHs"). Among others, the guidelines cover such areas as establishing effective drug management systems in RCHs, conducting regular medication review for residents and performing drug safety audits in RCHs, and updating records of medication to ensure accuracy. These facilitate the elderly residents to use medication properly and safely, and ensure the RCH staff to implement effective and safe drug management;

(b) The Code of Practice for Residential Care Homes (Elderly Persons) (Revised Edition) ("the CoP"), effective since January 2020, sets out detailed and clear guidelines on drug management. According to the requirements of the CoP, RCHs should arrange staff with relevant training (e.g. nurses or health workers) to be responsible for preparing drugs according to the prescriptions of medical practitioners, giving medication and assisting residents in taking medication safely. They should also properly maintain and timely update medication records of the residents;

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(c) To assist RCHs in drug management, the elderly service units receiving subsidies from SWD, if required, may apply for procurement or rental of drug management technology products, e.g. automatic tablet dispensing and packaging system, drug management system, etc., from the Innovation and Technology Fund for Application in Elderly and Rehabilitation Care launched by SWD in December 2018. Besides, between 2010-2011 and 2020-2021, the Social Welfare Development Fund subsidized welfare organizations to implement 16 drug management projects for RCHEs;

(d) Since October 2018, SWD has arranged the Visiting Medical Practitioner Service for all RCHEs in the territory. Furthermore, SWD provides advice on how drug management should be improved depending on the actual circumstances during inspections, and organizes relevant training workshops for RCHs regularly; and

(e) Since March 2019, SWD has provided health workers of RCHEs with full subsidies to attend Qualifications Framework-based courses including those relating to drug management.

The Pilot Scheme on Visiting Pharmacist Services for Residential Care Homes for the Elderly ("the Pilot Scheme") was launched in June 2010. Its main aim was to assess and optimize the drug management systems in the RCHs and enhance the knowledge and capability of their staff in drug management. The number of participating RCHEs dropped gradually, from 26 in the first year to six in 2018, right before the completion of the Pilot Scheme. In fact, with the implementation of the five measures mentioned in the above paragraphs, majority of RCHEs have established effective drug management systems, and their relevant staff have received training including drug management, and therefore the services provided by the Pilot Scheme were no longer required. SWD will continue to implement the said measures to support RCHEs in drug management and safeguard the well-being of the elderly residents.

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(3) To further enhance the regulation of RCHs, SWD set up the Working Group on the Review of Ordinances and Codes of Practice for Residential Care Homes ("the Working Group") in June 2017. The Working Group completed the review in May 2019 and put forward various recommendations, among which was to include in the Residential Care Homes (Elderly Persons) Regulation (Cap. 459A) provisions relating to care service so that RCHs should properly manage drugs and strictly follow doctors' prescription in assisting residents to take medication. The Government is in the process of drafting the legislative amendments, and will submit them to the Legislative Council for scrutiny as soon as practicable upon completion. SWD will continue to liaise closely with the sector and stakeholders to prepare for the implementation of the amended regulation in the future.

DR CHIANG LAI-WAN (in Cantonese): President, I very much hope that the Secretary will consider providing regular home visits and outreach pharmacist services. The Government does not need to hire a staff member for each RCH. All it needs to do is to allocate a certain amount of allowances, as in the case of kindergarten social workers, for a pharmacist to provide roving services to a few RCHs and a certain number of patients. Pharmacists can also provide home visits to patients whose circumstances are special, e.g. when it is inconvenient for certain patients to bring a lot of medications home. As patients will be prescribed different medications when they consult different doctors, this is a rather dangerous situation at present. Many elderly people are taking multiple medications which may easily lead to complications and even cancel out each other's effects. Will the Secretary consider setting up an outreach pharmacist service team for the elderly?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, in terms of RCHEs, it is mentioned in the main reply just now that we will provide staff training and sufficient flexibility to allow operators providing RCH services to use these support services when necessary. There are also visiting medical practitioners to provide assistance. As for home services, as stated in the main reply, if necessary, we will consider how to assist the elderly in taking medications on time and avoid mixing up the medications to be taken.

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MS ELIZABETH QUAT (in Cantonese): President, the Secretary has just mentioned a lot of services for RCHEs and I hope that they can be implemented as soon as possible. However, our gravest concern is that many elderly people, especially those living alone or families of elderly doubletons, have plenty of medications at home because they need to consult different specialists. They are given medications for one or two months each time, and will likely mix up the medications or have surplus medications from time to time. I asked them why there were surplus medications, and I was told that they sometimes forgot to take medications and could not remember when they should take medications or which should be taken together after some time.

I know that some new hospitals have introduced new machines to put medications that must be taken at the same time in the same bag so that the elderly can easily distinguish which medications should be taken at a certain time and which medications cannot be mixed up. Some non-profit-making organizations such as the Society of Hospital Pharmacists of Hong Kong provided very good services and they helped the elderly in the districts to use pill boxes to sort out the medications to be taken at different time slots on each day of the week. This is very helpful to the elderly so that they and their family members do not need to worry about taking medications erroneously. I believe many elderly people need this kind of service.

As the Secretary is also aware, with an ageing population, there will be more and more elderly people living alone or families of elderly doubletons. Under what circumstances will the Government consider collaborating with private organizations, district organizations, district service centres or non-profit-making organizations providing pharmacist services as mentioned earlier in implementing certain schemes so that the elders in various districts can have someone to assist them in medication management and monitor the medications taken by them? This is really helpful to them. As they usually attend follow-up consultations at public hospitals a few months later, it would be too late if we discover only then that they have mixed up or failed to deal with the medications.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, I think Members also know that there are 1.4 million elderly people in Hong Kong and a lot of them have to take different medications. When I was dining with my friends of more or less the same age, I found out that all of us were taking a 7048 LEGISLATIVE COUNCIL ― 9 June 2021 lot of medications, thus extensive education and support are really important. At present, services are provided to the frail elderly because it is more likely that they have to take medications. Therefore, we will conduct assessments and formulate Individual Care Plans to understand the assistance required by the elderly. We will also make use of the home care services teams to help remind the elderly to take medications.

Medication taking is not only a social welfare issue but also an issue of much concern to hospitals. As Members have just said, since elders often forget to take medications, a large amount of medications have been wasted and sent to landfills, which may also bring health and other risks. We will make efforts to consider how improvements can be made in this regard, and medication taking is also an issue of international concern. The kinds of technologies, procedures or tools that can assist the elderly, especially those living alone, are also our major consideration.

PRESIDENT (in Cantonese): Ms Elizabeth QUAT, which part of your supplementary question has not been answered?

MS ELIZABETH QUAT (in Cantonese): As I have mentioned just now, I hope that the Government will implement certain schemes or collaborate with the relevant organizations to help the elderly in need with all available resources. Of course, I understand that not all elderly people will be taken care of, but given that many of them have such need, I hope that the Secretary can …

PRESIDENT (in Cantonese): Ms Elizabeth QUAT, you have pointed out the part of your supplementary question that has not been answered.

Secretary, do you have anything to add?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, I believe we need not only to implement one scheme but a number of complementary schemes to help a large number of elderly people. We will continue to strengthen and improve the relevant work.

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MS ALICE MAK (in Cantonese): President, a few years ago, I visited an organization which specialized in the research and development of technologies for automatic tablet dispensing and packaging to provide assistance to RCHs.

As we all know, each elderly person will be given different medications and the handling and dispensing of medicines involve very complicated procedures, which include cutting the tablets and distributing them to the elderly who attended consultations. I saw an automatic tablet dispensing and packaging system during the visit, and the Secretary has also mentioned in the main reply that RCHs may apply for procurement of automatic tablet dispensing and packaging system and drug management system under the Innovation and Technology Fund for Application in Elderly and Rehabilitation Care. However, the relevant figures showed that there were only 16 applications within 10 years from 2010-2011 to 2020-2021. Can the Secretary tell us whether the automatic tablet dispensing and packaging system is rarely used in RCHs or there is no need for them to apply for the fund at all? How can the authorities further promote the use of the system in RCHs? Have the authorities ascertained why RCHs have not used the system? Apart from the issue of space―this system takes up a lot of space―will the authorities assist RCHs in using these systems to reduce the chance of committing errors due to manual dispensing or storage of medications?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, we understand that simply looking at the figure, there may be an impression that few RCHs are using the system. In fact, since the implementation of the relevant scheme in 2010, more and more units and institutions have provided automatic tablet dispensing and packaging arrangements and services. Of course, in this regard, we expect not the best but better.

In fact, the key does not lie in space. The automatic tablet dispensing and packaging system do not take up too much space, and there are very systematic procedures for nurses or health workers to distribute medications in every room. As to how wastage or failure to take medications on time can be avoided, we will continue to review and pay attention to the possible improvements that can be made.

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DR JUNIUS HO (in Cantonese): President, the results of the Pilot Scheme are actually favourable and there are dedicated people to assist the elderly, given that they are old and may easily get confused about when to take medications and what medications should be taken.

I would like to share with the Secretary that while there are many caring people and many schemes, the Secretary should also make proper arrangements and coordinate health workers, nurses, social workers and doctors from the Hospital Authority. We must not forget that the elderly do have family members though they are the ones taking the medications. Is it possible to make use of an application ("App") to help doctors or pharmacists keep on the App records such as the daily dosage of an elderly person's 10 kinds of medications to be taken, serving as a reminder for the relevant groups, family members or health workers? The App will issue a reminder when it is time to take medications and record whether the elderly has taken the medications to facilitate follow-up. Therefore, the App can facilitate coordination and the production of clearer records. This is my opinion.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): I thank the Member for his opinion. RCHEs are currently advancing in this direction. There are dozens or nearly 200 elderly people in each RCH and most of them have to take medications, so the use of information technology will certainly make the work of the staff smoother. In the past 10 years or so, the application of information technology has become increasingly popular and many RCHEs consider it necessary to improve the relevant work.

PRESIDENT (in Cantonese): Fourth question.

Manpower and expenditure of the Department of Justice

4. DR CHENG CHUNG-TAI (in Cantonese): It has been reported that there has been an upsurge of staff departure in the Department of Justice ("DoJ") recently. Regarding the manpower and expenditure of DoJ, will the Government inform this Council:

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(1) of the number of DoJ's officers of the Government Counsel grade who departed in each quarter since January 2014, with a breakdown by reason of departure as well as their rank and title upon departure; whether DoJ has assessed the causes for the upsurge of staff departure; and

(2) whether the expenditure of the National Security Prosecutions Division under DoJ is appropriated from the $8 billion special fund dedicated to meeting the expenditure for safeguarding national security; if so, of the amount involved and the uses of the various items of the estimated expenditure; if not, the head from which the Division's expenditure is appropriated as well as the uses and amounts of the various subheads?

SECRETARY FOR JUSTICE (in Cantonese): President, Article 99 of the Basic Law stipulates that public servants must be dedicated to their duties and be responsible to the Government of the Hong Kong Special Administrative Region ("HKSAR"). Civil servants, being a key component of the public service, have a constitutional role to give their best in serving the Chief Executive and the Government of the day. According to the Civil Service Code issued by the Civil Service Bureau ("CSB"), civil servants are required to uphold the core values of commitment to the rule of law, honesty and integrity, objectivity and impartiality, political neutrality, dedication, professionalism and diligence, and to ensure that no actual, perceived or potential conflict of interest shall arise between their official duties and private interests. Moreover, civil servants shall at all times ensure that their behaviour would not impede their performance of official duties in a fair and professional manner. The above principles are equally applicable to Government Counsel ("GC") grade members at the Department of Justice ("DoJ").

DoJ plays a key role in the legal system of Hong Kong and maintaining the rule of law. In recent years, the HKSAR Government has to cope with ever-increasing challenges, and particularly in the past two years after restoration of order and stability, and as a result of the impact brought by the pandemic. The challenges faced by DoJ in its legal work are also unprecedented.

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For instance, DoJ's prosecution work may sometimes attract extensive discussions in the community. Whilst members of the public have the right to express their views on related matters within the boundary permitted by the law, some overseas and local persons have maliciously attacked DoJ's prosecution work repeatedly with unfair and unfounded allegations. On civil work, following the social unrest in 2019, DoJ handles a substantial number of related judicial reviews, including those relating to the Emergency Regulations Ordinance and the Police's operations. On the other hand, in light of the rise in acts during social unrest involving online dissemination of information to incite violence and doxxing activities towards judges and law enforcement officers, the Secretary for Justice, as the guardian of public interest, successfully applied for four court injunctions to restrain acts that jeopardize people's lives, safety and property, and deter or harass the public from enjoying their common rights back then.

As the head of department, I entirely appreciate that colleagues at DoJ, on top of heavy daily workload, also have to bear the unnecessary outside pressure. Amid such challenges, I and DoJ as a team have all along been discharging our duties with the highest professional standards, impartiality and without fear or favour. These duties include controlling criminal prosecutions free from any interference in accordance with Article 63 of the Basic Law; providing independent and professional legal advice to the Government; and drafting legislation.

In relation to Dr CHENG Chung-tai's questions, I now reply as follows:

(1) Natural staff wastage is commonplace in any organization, and the Government is no exception. It is inappropriate to describe such normal personnel turnover as what so-called "an upsurge of staff departure". According to the statistics from CSB, in 2020-2021, the wastage in the civil service was around 4.8% of the strength. Retirement was the primary reason for departure of civil servants, and the other reasons include resignation, completion of agreement and death. In the past few years, the annual numbers of departing DoJ civil servants were about the same, being comparable to the wastage rate of the civil service at large. Departure of GC grade members in DoJ (including retirement and resignation) is indeed normal personnel turnover and most importantly, DoJ's operation remains unaffected. The society should take this in stride.

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DoJ has been monitoring the manpower situation within the department. A vacancy, as it arises, will be filled as appropriate under the succession arrangement to ensure the normal operation of the department. I believe that colleagues now at DoJ are all sharing a common goal: to serve Hong Kong, to advance the rule of law and access to justice, thereby achieving "Rule of Law and Justice for All".

Moreover, DoJ will continue to provide professional training for our counsel with a view to broadening their horizons and enhancing their skills in different areas of work. We will also give due recognition to colleagues with outstanding performance and strive to gain them the same from the sector.

(2) As pointed out in the HKSAR Government's statement of 25 February this year, the funding arrangement for the expenditure for safeguarding national security in HKSAR is made in strict accordance with the relevant requirements in the Law of the People's Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region ("the National Security Law"). According to Article 19 of the National Security Law, the Financial Secretary of HKSAR shall, upon approval of the Chief Executive, appropriate from the general revenue a special fund to meet the expenditure for safeguarding national security and approve the establishment of relevant posts, which are not subject to any restrictions in the relevant provisions of the laws in force in HKSAR. The Financial Secretary shall submit an annual report on the control and management of the fund for this purpose to the Legislative Council of HKSAR. To this end, the Financial Secretary has made a provision of $8 billion to meet the expenditure for safeguarding national security in the next few years and will submit a report to the Legislative Council in due course.

DR CHENG CHUNG-TAI (in Cantonese): President, in response to my main question, the Secretary for Justice has described the upsurge of staff departure at DoJ as natural wastage and called on the community to look at it with a calm mind. However, I have asked about the breakdown of staff departure figures in 7054 LEGISLATIVE COUNCIL ― 9 June 2021 the main question. I wonder if the Secretary was afraid to answer, afraid to face the public or afraid to face the reality. In fact, however, the Secretary has just mentioned that the Government might appoint legal officers as Senior Counsel in future. In my view, by putting forward this proposal, DoJ has voluntarily admitted that there is a massive staff departure at the middle and senior levels, thus rendering it necessary to make up for the loss of manpower with the proposal.

My supplementary question is: Will the proposal, if implemented, has the effect of undermining our rule of law system? The positions and roles of legal officers have been clearly defined, but it just so happens that the proposal will blur their roles.

SECRETARY FOR JUSTICE (in Cantonese): I thank the Member for his supplementary question. He mentioned the proposal of appointing legal officers as Senior Counsel that we had recently consulted the profession. I would like to raise three points in this regard: First, we must understand that the work of legal officers at DoJ cannot be directly compared with that of barristers in private practice. In accordance with the law, legal officers have equal rights as all admitted barristers and solicitors when handling government-related matters. Moreover, there is no differentiation between barristers and solicitors in their official roles, and even solicitors are required for advocacy in court when such a need arises. This is contrary to the practice in the private sector.

Secondly, the proposal would not alter any of the existing requirements for the appointment of Senior Counsel as set out in section 31A of the Legal Practitioners Ordinance. We will continue to uphold these criteria and the merit-based principle in our selection process.

Thirdly, the proposal will not affect the private practice of the profession because under our proposal, only serving legal officers can be appointed or retain the title of Senior Counsel. I am therefore very grateful to the Member for raising this supplementary question, which gives me an opportunity to respond briefly here.

Regarding DoJ's work, as I have reiterated, staff wastage is very commonplace. It is possible that some leave because they wish to switch to private practice; some retire; some no longer wish to practise law, and some step LEGISLATIVE COUNCIL ― 9 June 2021 7055 down for other personal reasons. Therefore, I must emphasize that we should look at these personnel changes with a calm mind since they happen in all organizations. I believe everyone in the existing DoJ team shares the same goal and will, as always, do our work in an impartial manner.

MR PAUL TSE (in Cantonese): President, in the strict sense, the proposal on the appointment of Senior Counsel is basically irrelevant to the main question. I therefore find the question and reply just now really strange. President, I would like to raise a supplementary question. If the reply given by the Secretary for Justice just now was a response given during cross-examination in court, the judge would definitely chastise her for failing to answer or even evading the question. To put it simply, the first part of the main question concerns staff departure. The Secretary for Justice should simply present the facts and figures for the past few years in her reply so long as there is founded basis. Only part (1) of the main reply is relevant to the main question, whereas the preceding preamble is entirely meaningless. I wonder if the reply was previously so short that it has been padded out to make it look better. However, this reply will only leave people with the impression that the Secretary is trying to cover up something and evade the question.

President, the main question is very simple. What were the ranks of DoJ officers who left in the past few years, and what was the total number? She should reply if information is available, or decline to answer if she considers it inappropriate to do so due to privacy concerns. The Secretary should not say something like "in the past few years". How many years does she mean by "few years"? She also said that the numbers were "comparable to the wastage rate of the civil service at large", so what is the percentage "comparable" stands for? What was the overall wastage rate of the civil service? All these questions can be answered with figures, and the answers should not be ungrounded. Hence, we hope that the responsible public officers will understand that when answering these questions, facts and figures are very important and they should not evade the questions.

SECRETARY FOR JUSTICE (in Cantonese): Thank you, Honourable Member. When answering questions, we would try to set out all the relevant considerations as far as practicable. We are indeed under some pressure, which has resulted in an increased workload for our staff. As I said earlier, the annual 7056 LEGISLATIVE COUNCIL ― 9 June 2021 staff departure rate of DoJ was about the same in the past few years. For example, in the past four years, the average rate was about 5% and the actual overall wastage was about 60 staff members on average. These are the actual figures we have gathered at the moment. If necessary, I will provide the year-on-year figures later.

MRS REGINA IP (in Cantonese): President, as I recall, before the return of sovereignty, the Attorney General's Chambers used to engage a number of lawyers from other common law jurisdictions, such as Australia, New Zealand and Canada, and they were very helpful. I have a question for the Secretary for Justice. Apart from local recruitment, has DoJ continued to recruit lawyers from overseas? Are there any difficulties in its recruitment exercises? Which posts require special recruitment arrangements? For example, based on my understanding, lawyers in private practice have less experience in law drafting. What is the Secretary's view on recruiting expatriate lawyers? Are there any difficulties? Is it necessary and are there any benefits?

SECRETARY FOR JUSTICE (in Cantonese): We have not made any special arrangements for recruiting expatriate counsel. According to my understanding―I will provide supplementary information later had I got any information wrong―the current recruitment exercises are mainly open recruitment for the post of GC. As I mentioned just now, we did conduct open recruitment for Law Draftsman and the open recruitment exercise for the Director of Public Prosecutions is also underway. Rarely do we conduct open recruitment for other posts. As far as I recall, open recruitment exercises were mainly conducted for the post of GC and for filling senior positions upon the retirement and departure of the relevant staff.

MR SHIU KA-FAI (in Cantonese): President, as our society has experienced the "black-clad violence" in recent years, I know that there is a huge backlog of the relevant court cases. Amid the pandemic, the local market has been sluggish for a long time. I have heard many lawyers say that their businesses had been less than satisfactory. What can be done to assist lawyers in seeking employment? Will the Secretary's department recruit a large number of lawyers so as to clear LEGISLATIVE COUNCIL ― 9 June 2021 7057 the huge backlog of court cases brought about by the "black-clad violence" as soon as possible?

SECRETARY FOR JUSTICE (in Cantonese): Thank you, Honourable Member. We have all along been concerned about the issue and will do our best to ensure that prosecution work will not be procrastinated. With regard to recruitment, we have been conducting recruitment exercises according to the actual vacancies within the establishment. However, instead of recruiting a candidate just for the sake of filling a post, we will ensure that a suitable candidate is selected. Pursuant to the requirements under Article 99 of the Basic Law, namely the requirements I mentioned just now, we will only engage people who are committed, dedicated, willing to act in accordance with the law, independent and professional. We will conduct recruitment based on these considerations by all means. For example, there are nearly 500 applicants for GC and other legal professional posts, but not all of them are suitable. We have to go through a selection process to carefully identify the right candidate.

DR JUNIUS HO (in Cantonese): President, in the Secretary's reply to the question just now, I am so glad to hear that there is actually no upsurge of staff departure. The wastage rate of the civil service is about 4.8%, and DoJ is of a comparable level. Just now, the Secretary for Justice has also added that there were more than 500 applicants for the vacancies of GC and other important positions. Not all of them will be employed, and the selection will be based on suitability and merits.

My supplementary question concerns the expenditure relating to the National Security Law stated in part (2) of the main reply. The National Security Law itself is a continental law, and is different from the common law which has all along been practised in Hong Kong. With the provision of $8 billion, will the Secretary consider engaging Mainland legal professionals in its work plan for the next few years, so as to facilitate the implementation of the National Security Law, the coordination with the internal operations of the country as well as DoJ's personnel training?

7058 LEGISLATIVE COUNCIL ― 9 June 2021

SECRETARY FOR JUSTICE (in Cantonese): I thank the Member for the supplementary question. In fact, DoJ has already introduced an initiative to require GCs on probation to complete a course on the fundamental principles of Chinese law within the first three years, which features basic knowledge about the Constitution, the Basic Law and the National Security Law to enable them to understand these laws which are applicable in Hong Kong. Of course, they should also be equipped with other basic knowledge of Chinese laws as it is always better to know more as a legal practitioner. However, the ultimate aim is to ensure that our newly recruited colleagues can gain some knowledge of the constitutional laws through the course.

Secondly, at the suggestion of the Civil Service Bureau, we organized an event last Monday for colleagues joining DoJ after 2018 to watch a video presentation on the National Security Law delivered by the Deputy Director of the Hong Kong and Macao Affairs Office of the State Council Mr Deng Zhonghua, which was followed by a brief discussion. We do not rule out holding more relevant discussions to enable our colleagues to have a more accurate understanding and proper application of the National Security Law.

Thirdly, as to whether we can engage the necessary talents within the Government, we have been fortunate so far to have recruited some solicitors or barristers who have studied Chinese law and practised in Hong Kong to work at DoJ. If we encounter more difficult legal issues, we may also seek experts' advice by briefing out. Hence, the existing avenues are sufficient to ensure that we can obtain proper and professional legal advice.

MR PAUL TSE (in Cantonese): President, we understand that DoJ staff are facing heavy workload and pressure, as stated in the reply of the Secretary for Justice. However, one special thing about DoJ is the practice of briefing out highlighted by the Secretary just now. In fact, DoJ can always seek outside legal advice on prosecution work or other serious and complicated cases. This flexibility provides greater protection for DoJ by ensuring that it can proceed with its work unaffected. Regardless of whether there is the so-called "upsurge of staff departure", the wastage rate of DoJ was only about 5%. But there is no breakdown of the relative percentages of staff departure by reasons such as retirement, resignation or early resignation. These are important information and I hope to obtain these relevant figures. But what I am more eager to know LEGISLATIVE COUNCIL ― 9 June 2021 7059 is, has the proportion of cases briefed out by DoJ increased and by how much when compared with the past?

SECRETARY FOR JUSTICE (in Cantonese): I thank the Member for the supplementary question. This question involves two parts. First, we may not know the reasons for the departure of these people. What I have just cited are the common reasons we have noticed. What I can provide is only the number of people who have left, which is about 60 as I have said earlier on.

Let me quickly respond to the second question on whether the proportion of cases briefed out has increased or decreased. We cannot look at the figures alone as they do not represent the actual situation. While we will brief out cases to seek legal advice, the final decision still rests with DoJ. Therefore, we must adopt a consistent set of legal interpretation and principles. Given that briefed-out cases usually belong to those which need to appear in court, sometimes legal advice will be sought but this may not be the most effective. At the end of the day, the final decision of prosecution will still be made by us.

PRESIDENT (in Cantonese): Mr Paul TSE, which part of your supplementary question has not been answered?

MR PAUL TSE (in Cantonese): I asked about the figures but not the reasons for briefing out. I hope that if there is an opportunity, the Secretary will provide the relevant information.

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

SECRETARY FOR JUSTICE (in Cantonese): I hope Members will understand that the figures may not necessarily explain the reasons for briefing out. I will go back and check if the relevant figures are available.

PRESIDENT (in Cantonese): Fifth question.

7060 LEGISLATIVE COUNCIL ― 9 June 2021

Support for families which need to hire domestic helpers

5. MS STARRY LEE (in Cantonese): President, it is learnt that due to the impacts of measures such as immigration quarantine and the place-specific flight suspension mechanism, there has been a significant drop in the number of foreign domestic helpers ("FDHs") coming to work in Hong Kong in recent months, with the daily number declining from more than 500 before the epidemic to about 100 in recent days. As a result, quite a number of families have been unable to hire FDHs, and FDHs' wages have surged. There are views that the importation of Mainland domestic helpers ("MDHs") may alleviate the aforesaid problems. In addition, as quite a number of families hire FDHs for the purpose of taking care of their elderly members and less language barrier is encountered when MDHs communicate with the elderly, the elderly may receive better care. In this connection, will the Government inform this Council:

(1) as the epidemic in FDH source countries has yet to be brought under control, what measures the Government will put in place to cope with the situation of a persistently low number of FDHs coming to work in Hong Kong; whether such measures will include introducing new source countries for FDHs and relaxing the current policy, with reference made to Macao's practice of importing MDHs, so that a certain number of MDHs may be imported under a pilot scheme; if so, of the details; if not, the reasons for that;

(2) whether specific measures are in place to encourage more local women to work as domestic helpers; if so, of the details; if not, the reasons for that; and

(3) of the measures in place to further assist families which hire FDHs to take care of their elderly members, and whether it will regularize the "Pilot Scheme on Training for Foreign Domestic Helpers in Elderly Care", which is being implemented by the Social Welfare Department?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, having consulted the Security Bureau and the Immigration Department ("ImmD"), my consolidated response to the Member's question is set out below:

LEGISLATIVE COUNCIL ― 9 June 2021 7061

(1) At present, there are close to 370 000 foreign domestic helpers ("FDHs") working in Hong Kong, with most of them coming from the Philippines and Indonesia. In the face of the COVID-19 pandemic, the Government has been making its best effort to provide assistance and facilitation to FDHs and their employers subject to changes in and the need for prevention and control of the pandemic. Since early 2020, the Labour Department ("LD") and ImmD have put in place various measures to help FDHs and their employers cope with the COVID-19 pandemic, including allowing employers to extend the validity period of the existing contracts with their outgoing FDHs for a maximum of three months, and further extending the special arrangement for FDHs to defer their return to their place of origin. In general, FDHs may apply for a one-year deferral for returning to their place of origin, subject to agreement with their employers. During the pandemic, if an FDH is still unable to return to his/her place of origin within the first one-year deferral, he/she may apply to ImmD again for a further extension of limit of stay until the end of the contract before returning to his/her place of origin. The above special arrangements are subject to agreement between FDH and the employer.

In 2020 and 2021 (January to May), ImmD approved close to 190 000 and over 150 000 applications respectively for further employment of FDHs (including applications from FDHs for contract renewal with the same employer, and from employers for extending the validity period of contracts with FDHs as well as from FDHs for further deferral of return to their place of origin under the special arrangements). The aforesaid had facilitated families in need to continue to receive support from FDHs as far as possible. In the past year (May 2020 to May 2021), ImmD also approved around 23 000 applications for change of employers in Hong Kong after premature termination of contract owing to the special circumstances of the pandemic. On the other hand, ImmD understands the need of local families for FDHs amid the pandemic, and has proactively deployed its manpower to expedite the processing of new applications so that FDHs could report duty in Hong Kong as soon as possible. ImmD will continue to expedite the vetting and approval procedures.

7062 LEGISLATIVE COUNCIL ― 9 June 2021

The Government has all along strived to maintain Hong Kong as an attractive work place for FDHs and actively explores new source countries of FDHs, including relaxing the visa requirements of Cambodian nationals in March 2017 to allow Cambodian domestic helpers to come to work in Hong Kong. LD will also continue to keep in contact with the governments of FDH source countries and their consulates general in Hong Kong to encourage their nationals to come to work as FDHs in Hong Kong to meet the long-term demand of local families.

Owing to immigration control and security considerations, the current entry arrangement for admission of domestic helpers does not apply to Chinese residents of the Mainland, the Macao Special Administrative Region and Taiwan, as well as nationals of Afghanistan, Cuba, Laos, the Democratic People's Republic of Korea, Nepal and Vietnam. The Government has no plan to make changes. Save from the above, the Government has not imposed any restrictions on, nor does it promote the employment of FDHs of, any particular nationalities. Employers may, having regard to individual needs, decide to hire FDHs from any countries and regions other than those specified above.

(2) To satisfy the demand of local employers for domestic services, the Labour and Welfare Bureau and LD have all along been assisting local job-seekers to participate in domestic helper jobs, including providing them with training, recruitment and employment services.

The Employees Retraining Board ("ERB") provides training courses for the unemployed, underemployed and other persons in need (including women), assisting them to join the employment market. ERB currently offers 15 training courses related to the skills of domestic helpers, providing about 3 100 training places for relevant courses in 2021-2022. ERB's "Smart Living" Scheme provides free, one-stop referral services for graduates and household employers registering job vacancies. The "Smart Living" Scheme received registration of over 20 000 vacancies in 2020-2021.

LEGISLATIVE COUNCIL ― 9 June 2021 7063

In addition, LD provides employers and job-seekers with convenient and easy-to-use recruitment and employment services, including domestic helpers. From January to May 2021, LD's Interactive Employment Service website posted more than 1 200 local domestic helper positions, of which more than 1 000 were part-time positions. As some women are not able to work full-time due to various reasons such as the need to take care of children/family, LD has especially set up a dedicated web page on part-time vacancies on the Interactive Employment Service website to facilitate their search for suitable job vacancies (including local domestic helpers). The subject web page of Employment under GovHK also provides points-to-note and other practical information on hiring local domestic helpers for employers' reference.

(3) If newly-hired FDHs are temporarily unable to come to Hong Kong due to the pandemic, or the current FDHs are not able to return to their place of origin, employers may make use of the special arrangements implemented by LD and ImmD in Part (1) above to allow their current FDHs to continue to stay in Hong Kong to take care of the elderly in the household.

In terms of training, as FDHs play a major role in caring for elderly persons in many families, the Social Welfare Department ("SWD") has implemented the Pilot Scheme on Training for Foreign Domestic Helpers in Elderly Care to better train FDHs in skills for caring for elderly persons, such as assisting elderly persons with feeding and taking medicines, first aid, and assisting elderly persons with bathing and oral care, etc., thereby enhancing the elderly's quality of life in the community and supporting their ageing in place. Phase I of the Pilot Scheme is held from March 2018 till September 2021, providing 300 training places initially and an additional 950 training places in May 2019. SWD will implement Phase II of the Pilot Scheme from October 2021 to September 2023 and provide a total of around 1 350 training places. Under Phase II, using a different approach adopted in Phase I, SWD will commission a training institute as a pilot to provide training for FDHs. After reviewing the outcome of Phase II of the Pilot Scheme, SWD will decide on the way forward for the Scheme.

7064 LEGISLATIVE COUNCIL ― 9 June 2021

MS STARRY LEE (in Cantonese): President, in the face of the pandemic of the century, we must adopt new mindset to cope with the difficulties in front. In fact, middle-class families badly need help from foreign domestic helpers ("FDHs"), and FDHs can really help many middle-class families to take care of elderly persons and children, so that they can continue to work. As Members also know, 97% of FDHs in Hong Kong come from the Philippines and Indonesia. Under the current pandemic, it remains unknown how long the measures of lockdown and quarantine will last. One year and a half has lapsed so far, but we are still yet to see the end. As Members also know, the current problems of job-hopping and picking employers by FDHs are increasingly serious, and many employers recruit FDHs at a cost of $6,000 or even higher in the hope of seeking help from FDHs. I also know that the Government has actually done some work, but I think it is still not adequate and there is a lack of short- and medium-term proposals.

As I have mentioned in the main question, during this special period, it is worthwhile for the Government to seriously consider importing Mainland Domestic Helpers ("MDHs"), and allowing pilot points to be set up in the Mainland, so that MDHs can come to Hong Kong to help Hong Kong families tide over the difficult period. However, the main reply of the Secretary is very simple and direct, saying that owing to immigration control and security reasons, the current entry arrangement for admission of domestic helpers does not apply to Chinese residents of the Mainland, the Macao Special Administrative Region and Taiwan, as well as nationals of Afghanistan, Cuba, Laos, the Democratic People's Republic of Korea, Nepal and Vietnam. I know that there were many reasons in the past for not implementing the arrangement, but under the pandemic, will the Secretary seriously consider making some exceptional arrangements and further examining them during this period of time? After all, the level of containment of the pandemic in the Mainland is the most reliable.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, if the community is concerned about this issue, we may continue to explore it. However, as Members also know, a lot of factors need to be considered when importing helpers to Hong Kong from the Mainland to provide home-based services, so the Government has not given any consideration to this for the time being.

LEGISLATIVE COUNCIL ― 9 June 2021 7065

However, as Members also know, foreign workers have been imported for providing services at residential care homes in Hong Kong. These foreign workers are "Mainland workers" because majority of them come from the Mainland. Unfortunately, in recent years, it is very difficult to recruit foreign workers to come to Hong Kong to work even at a monthly salary of $13,000. A monthly salary of $13,000 now fails to attract people from the Guangdong Province to come to Hong Kong to work. Therefore, at present, many imported foreign workers come from Guangxi, but they know how to speak Cantonese. Regarding whether it is realistic or not to recruit a domestic helper at some $4,000, we will also consider it.

MRS REGINA IP (in Cantonese): President, Secretary Dr LAW mentioned that owing to the immigration policy, the importation of domestic helpers from the Mainland of China will not be considered, and he has lumped together the Mainland of China, Afghanistan, Cuba, Laos and the Democratic People's Republic of Korea. This is a very outdated policy. The importation of MDHs from the Mainland (especially the Guangdong Province) has been discussed for several decades. The late Mr WAI Kee-shun wanted to set up a company to import MDHs several decades ago, but back then ImmD was worried that these helpers would overstay and there was difficulty in distinguishing them from local people.

Nowadays, with enhanced living standard in the Mainland, as the Secretary has said earlier, MDHs may not come to Hong Kong even if Hong Kong imports them, right? Therefore, previous concerns on immigration control or possible family disputes no longer exist. I think the Secretary should discuss this with the Security Bureau and ImmD. If the income of the people in the Guangdong Province is high, the Government can consider importing helpers from Guangxi or Guizhou. There are many people from Jiangsu and Zhejiang in Hong Kong, perhaps people from these places are willing to come to Hong Kong. I think the Secretary should adopt new mindset. Can the Secretary undertake to discuss this subject with the Security Bureau and ImmD?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, we have heard the views of the Members, and are very happy to bring them back for discussion and consideration.

MR CHUNG KWOK-PAN (in Cantonese): President, during this period of 7066 LEGISLATIVE COUNCIL ― 9 June 2021 time, many middle-class citizens in Hong Kong are still applying for FDHs. Although FDHs from the Philippines cannot come to Hong Kong for the time being, there are also many applications for FDHs from Indonesia. When such applications are approved, FDHs have to stay in hotel for quarantine for 21 days upon their arrival in Hong Kong. However, there is currently a lack of hotel rooms and the room rate level is very high, costing more than $1,000 per day for each room. Just imagine, employers have to pay as much as $20,000 to $30,000 for FDHs' 21-day hotel quarantine upon their arrival in Hong Kong and the hotel room rate per day is over $1,000. This is a very heavy burden for them. Although this issue is not under the purview of the Secretary, can the Secretary discuss it with the relevant Policy Bureaux to make arrangements for the provision of more hotel rooms to accommodate the incoming FDHs in the days to come? Several thousands of applications will need several thousands of hotel rooms, coupled with the fact that many students are returning to Hong Kong from overseas as the summer holiday is approaching, so many people will be scrambling for hotel rooms. Will the Secretary please pay attention to the supply of hotel rooms with the relevant Policy Bureaux? Besides, if FDHs coming to Hong Kong are willing, can they be vaccinated immediately?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, according to my knowledge, the designated quarantine hotel rooms which have been in shortage recently are those of high tariff hotels, so the authorities have recently increased several thousands of rooms of those high tariff designated hotels. As for those more economical hotels, they are not fully occupied for the time being. We will keep track of the hotel situation. Regarding the quarantine arrangement for FDHs who have been vaccinated, we will take this into consideration but it certainly depends on the risks in the regions they come from. Basically, if the risk level is moderate, the quarantine period for FDHs who have been vaccinated can be reduced from 21 days to 14 days.

MS ELIZABETH QUAT (in Cantonese): Secretary, hiring FDHs is really very difficult now. I receive complaints day after day, especially on the problem of job- hopping of FDHs. I think this warrants the attention of the Secretary.

Some Members have mentioned earlier the current quarantine LEGISLATIVE COUNCIL ― 9 June 2021 7067 arrangement, that is, FDHs need to stay in hotel for quarantine upon their arrival in Hong Kong. Some employers told me that when the long-awaited FDHs employed by them arrived in Hong Kong and stayed in hotel for quarantine, they had to foot the bill of several tens of thousands of dollars. However, after working for one month, their FDHs resigned to job-hop. Currently, the monthly salary of FDH has been driven up to $8,000, $10,000 or even higher, which shows that the problem is really very serious. For this reason, Ms Starry LEE proposes today that attempts must be made to replenish the shortage of such workers.

I think the importation of MDHs is a method that must be considered, because no one knows when the pandemic will come to an end. As the Secretary has said earlier, many ward attendants and care workers in residential care homes are helpers coming to Hong Kong from the Mainland. I understand that the salary level is currently high in the Guangdong Province, but people from many other places of the Mainland may also be interested in providing services in Hong Kong. Therefore, I hope that the Secretary can engage in active discussions so as to expeditiously extend the scope to import more Mainland personnel to engage in home-based services, especially providing care for the elderly. On the other hand, it is also hoped that the Secretary will study how to tackle the problem of job-hopping because this is unacceptable. Earlier on, I have proposed that some money should be deducted from FDHs' monthly salaries and returned to them upon the completion of their service. Otherwise, continuous job-hopping of FDHs is very unhealthy and offers no protection to employers.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, there are several parts in the Member's supplementary question, but I wish to focus on the problem of job-hopping. In fact, this is really a dilemma. On the one hand, some FDHs have reasonable reasons for terminating their contracts prematurely. In relation to FDHs who have reasonable reasons for terminating their contracts prematurely, since they have already come to Hong Kong, they may be able to help other employers so long as suitable arrangements are made to enable them to find jobs. However, on the other hand, some FDHs may put forward reasonable reasons for terminating their contracts prematurely to cover their underlying motive of job-hopping. Therefore, over the past one year or so, 7068 LEGISLATIVE COUNCIL ― 9 June 2021 we have been paying particular attention to such situation.

In view of the problems relating to FDHs' wages and job-hopping, ImmD has tightened the relevant arrangements. Therefore, except for some special circumstances, for FDHs whose "contracts have been prematurely terminated" for job-hopping, we basically will not continue to allow them to stay in Hong Kong to avoid the situation of job-hopping. As to whether there will be misjudgement, we will pay close attention to the situation.

MR PAUL TSE (in Cantonese): This is really a dilemma because the authorities do not want to drive away FDHs to further reduce the supply. Therefore, in the short term, the authorities must consider studying expeditiously the request made in the main question, that is, the issue of MDHs. Whether the salary is realistic and the hiring of helpers from Guangdong, Guangxi or even places further north are decisions of the members of the public. As long as the authorities relax the restrictions, there are actually many alternatives. The Secretary considers it unrealistic, but I think realistic or not depends on the choices of the market and members of the public. If the authorities do not relax the restrictions, the situation of job-hopping will persist forever.

The supplementary question that I wish to focus on is: As pointed out in the main reply, over the past one year, there were 23 000 applications for premature termination of contract. If we look at the figure alone, we may not be able to see any problem. We must compare it with the number of relevant applications at other points of time. May I ask if the Secretary has such figures? The pay difference between previous and current job of FDHs may be the reason for job-hopping. The pay difference should not be too great if FDHs are genuinely unwilling to work for their employers; but if the pay difference is very great, it is possible that FDHs have made up reasons to cover up the job-hopping motive. I hope that the Secretary can pay heed to the plight of Hong Kong people and be more down-to-earth by doing some real work for them.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, we may not have the concrete figures in hand, especially those on job changing and salary. However, we will closely monitor the specific arrangements with ImmD. In the past, if FDHs job-hopped twice within a short time, we would definitely LEGISLATIVE COUNCIL ― 9 June 2021 7069 not extend their visas for staying in Hong Kong. Recently, we have further tightened the relevant arrangement. If they terminated their services for job-hopping, we will basically not allow them to extend their visas unless there are very special reasons.

MS STARRY LEE (in Cantonese): President, not extending the visas of FDHs for staying in Hong Kong is virtually a punishment of their employers. The employers had to go through much hardship to recruit FDHs and pay them to undergo quarantine in Hong Kong before FDHs actually work for them. However, in the absence of complementary measures of the policy, adding that some ill-intentioned people have encouraged FDHs to job-hop, those FDHs changed their jobs. As a result, the employers have to start the FDH recruitment process all over again while, at the same time, there is no one to look after their family affairs.

Therefore, I hope that the Secretary will review whether the previous balance point has been "displaced". I have heard many employers say that the existing legislation and complementary measures offer no protection to them at all. Just imagine, in the aforesaid case, what should the employers do? The employers can only lament their lack of luck. If the Secretary rejects the visa extension of those FDHs, should employers who cannot hire FDHs bid in the market or do some other things? What advice does the Secretary have for these employers in the short term?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Over the past one year or so, we did keep a close monitor on the issue. Initially, we had relaxed the restrictions a bit to allow time for FDHs to make arrangements after terminating their work. Members may notice that in the middle of last year, there was a problem relating to the so-called "boarding house" where FDHs live. It was another disease prevention problem, but was subsequently resolved. However, when making adjustments to tighten or relax the restrictions, we find that slight relaxation would cause the number of job-hopping cases to increase and more employers would be affected. Therefore, we must handle the situation carefully and need to keep a close monitor on the situation when tightening or relaxing the restrictions.

PRESIDENT (in Cantonese): Last oral question. 7070 LEGISLATIVE COUNCIL ― 9 June 2021

Gay Games

6. MRS REGINA IP (in Cantonese): President, the 11th Gay Games ("Gay Games 2022") is scheduled to be held in Hong Kong from 11 to 19 November next year, and it will be the first time the Games are hosted in Asia. According to the estimation of the organizers, this sports event will attract more than 12 000 participants from around the world, bringing economic benefits of HK$1 billion to Hong Kong; and apart from facilitating the development of the tourism industry in Hong Kong, this event will showcase to the world Hong Kong's diversity and its support for equal opportunities. In this connection, will the Government inform this Council if it knows:

(1) the progress of booking of event venues by the organizers of Gay Games 2022; whether it has any targeted policies or measures in place to assist the organizers in booking government sports venues; if so, of the details; if not, the reasons for that; and

(2) whether the various local national sports associations ("NSAs") will support and participate in Gay Games 2022; if they will, of the details, including a list of those NSAs which will send athletes to compete in the Games and the number of participating athletes; whether the Government will encourage the various NSAs to participate in the Games?

SECRETARY FOR HOME AFFAIRS (in Cantonese): President, from a sports policy perspective, the Government of the Hong Kong Special Administrative Region has been promoting sports development in Hong Kong with a three-pronged strategic approach, namely promoting sports in the community, supporting elite sports and maintaining Hong Kong as a centre for major international sports events. We encourage wider public participation in sports so as to foster a strong sports culture in the community. We nurture potential athletes and provide them with quality training environment and integrated support, enabling them to develop their full potential and achieve outstanding results in the international sports arena. In parallel, we facilitate the national LEGISLATIVE COUNCIL ― 9 June 2021 7071 sports associations ("NSAs") in launching major international events in Hong Kong, thereby allowing members of the public to appreciate high-level sports competitions.

To complement the promotion of sports development, the Leisure and Cultural Services Department ("LCSD") has put in place a booking procedure for recreation and sports facilities, allowing eligible organizations to make priority booking of such facilities to organize sports competitions or activities. According to LCSD's current booking procedure, the Sports Federation & Olympic Committee of Hong Kong, China ("SF&OC"), NSAs, district sports associations and the Hong Kong Schools Sports Federation are among the top priority category, under which they are allowed to reserve all peak or non-peak slots of recreation and sports facilities up to 12 months in advance. Affiliated clubs of NSAs, charitable organizations, bona fide associations and corporations are among the second priority category, under which they are allowed to reserve peak slots of recreation and sports facilities up to three months in advance, or all slots of squash courts as well as non-peak slots of main arenas and activity rooms of sports centres up to six months in advance.

My consolidated reply to the questions raised by Mrs Regina IP is as follows:

According to the information provided by the organizer, the 11th Gay Games ("GG2022") to be held in Hong Kong has been recognized by the Federation of Gay Games and will be hosted by the Gay Games Hong Kong. Under the theme of "Unity in Diversity", the event plans to feature 36 sports competitions, 13 arts and cultural activities, opening and closing ceremonies, etc. In other words, organizing sports and cultural activities for all is the means to pursue the aim of promoting equality and inclusion. Therefore, everyone is welcome to participate in the event, regardless of ethnicity, religion, age, gender identity, sexual orientation, ability or background.

Unlike international multi-sports games in general, GG2022 is not a sports event recognized by the International Olympic Committee, the Olympic Council of Asia or any international sports federation. I understand that neither SF&OC nor NSAs will send athletes to participate in the competitions. Moreover, the aim of GG2022 is to promote equality and inclusion through various activities. 7072 LEGISLATIVE COUNCIL ― 9 June 2021

Sports is merely one of the elements of the event.

I understand that the organizer has, during the search of venues, considered various options, including tertiary institutions, non-governmental venues, space at Central Harbourfront and other cultural venues. In accordance with LCSD's current practice, the Gay Games Hong Kong may, as a locally registered organization, reserve non-peak slots and peak slots of sports facilities up to six months and three months in advance respectively.

The organizer has approached some tertiary institutions, sports clubs, clubhouses, etc. for hiring their sports facilities to organize some competitions. Separately, the organizer has been discussing with 26 NSAs or sports organizations to explore possible cooperation, including the provision of referee services, technical support and venue booking support. So far, 11 NSAs have reached agreements with the organizer, four have declined cooperation due to other issues (such as manpower arrangement), and the remaining 11 are still in discussion with the organizer. If the organizer secures the support of NSAs in co-organizing the relevant activities, it may reserve related sports facilities up to 12 months in advance under the current policy. Upon receipt of the applications from the organizer and/or the relevant NSAs, LCSD is pleased to provide necessary assistance and process their applications in accordance with the current procedure.

MRS REGINA IP (in Cantonese): President, after listening to the Secretary's reply, I certainly understand that GG2022 is not equated with the Olympic Games and that is why neither SF&OC nor NSAs will take part. But anyway, it is an international event. The organizer has stated that over 10 000 athletes from 100 countries will come to Hong Kong and some 7 000 spectators will watch the competitions, bringing enormous economic benefits to Hong Kong and showcasing Hong Kong's status as an international city. Against this background, the organizer has indicated that it needs 56 venues, but it is still unable to book half of them. Some NSAs are utterly reluctant to cooperate by providing venues. May I ask whether the Secretary can call on NSAs to help provide the venues?

Hong Kong hosted another major event in 2005, which was over a decade LEGISLATIVE COUNCIL ― 9 June 2021 7073 ago. In fact, Hong Kong is very pleased to host events to demonstrate our international standing. Hong Kong was the host of the Sixth Ministerial Conference of the World Trade Organization (MC6) in 2005, which I believe the President still remembers. Anticipating that people from many countries would come to Hong Kong, the Government set up a coordination office to deal with various matters such as visa and security. On this occasion, will anyone from the Government take the lead to deal with such matters? As Hong Kong has defeated 10-odd countries to win the elusive hosting rights, I do not think anyone would wish to see Hong Kong becoming a laughing stock, doing a bad job or making all sorts of mistakes as a host. Will the Secretary offer assistance?

SECRETARY FOR HOME AFFAIRS (in Cantonese): When the organizer put forth the hosting bid in 2006, I was still working in the ("HAB"), so I had chances to meet with it to understand the situation of the bid. As Mrs Regina IP has just said, Hong Kong is indeed an events capital. From the perspective of home affairs policy, we must stick to all prevailing procedures, especially in respect of sports, because the supply of venues is relatively tight. As I have just mentioned, when the organizer made the hosting bid, we had provided assistance by checking the suitability of venues and explaining the procedures and requirements of the application.

As far as I understand, some government departments such as the Hong Kong Tourism Board ("HKTB") have assisted in the search for venues by sharing the contact information of some recreation and sports facilities and tertiary institutions. As I have just mentioned, quite a number of NSAs even took the initiative to give support in the past. I can see that many of the 36 sports competitions may not need venues. Why do I say so? I am aware that there are some athletics competitions such as full marathon, half marathon, 5-km race, 10-km race, track and field, and trail running. During the pre-pandemic times, many such events were held in Hong Kong almost every week. Of course, other Policy Bureaux may be involved in some programmes such as eSports and sea sports like sailing (dinghy). In the days ahead, we will endeavour to contact the organizer to see how we can provide assistance in accordance with the established procedures.

As I have specifically mentioned just now, this major event is not only a 7074 LEGISLATIVE COUNCIL ― 9 June 2021 sports event, but actually a carnival that includes many different cultural activities. Therefore, to my understanding, the organizer had also approached various venues, which I have just mentioned in the main reply, during the bidding process. They had considered the space at Central Harbourfront, M+ Museum, Tai Kwun, West Kowloon Cultural District, etc., all of which are excellent venues. In fact, we always strive to facilitate the hosting of major tourism events in Hong Kong. As for other policies, I will let other Policy Bureaux make a response. That is all for my reply now.

DR PRISCILLA LEUNG (in Cantonese): President, I have all along been very supportive of the four major ordinances under the purview of the Equal Opportunities Commission ("EOC"), namely the ordinances of race discrimination, sex discrimination, disability discrimination and family status discrimination. Nevertheless, sexual orientation is such a highly controversial issue in Hong Kong's society that may even tear the community apart. As the Secretary has just mentioned, GG2022 is not only a sports event, but also has a strong mission to promote the gay movement. I notice that the Information Services Department, Invest Hong Kong and HKTB have given high-profile support to this event. First of all, has the Government considered that this event will arouse strong opposition from the community? Should the Government remain neutral on this matter, withdraw its support in the organization of the event and leave it in the hands of the community?

Despite its low popularity rating, the Government still gives high-profile support to such a controversial event on this occasion. I believe the vast majority of Hong Kong's community supports maintaining the institution of heterosexual monogamous marriage. Therefore, the Government had better leave the event in the hands of the community. As the Government has now given high-profile support, I have heard lots of opposing voices. At first, I was not quite aware of this subject, but I have to raise this supplementary question on behalf of a large number of organizations and the general public: If the Government gets so involved on this occasion, will it allocate more resources and step up its efforts in promoting the current legal form of marriage, which is heterosexual monogamous marriage, as the best form of marriage for our society and the growth of children? Will the Government withdraw the support given to GG2022 by its departments, refrain from giving support and remain neutral?

PRESIDENT (in Cantonese): Which public officer will give a reply? Secretary LEGISLATIVE COUNCIL ― 9 June 2021 7075 for Home Affairs, please reply.

SECRETARY FOR HOME AFFAIRS (in Cantonese): President, I would like to make it clear that HAB deals with such matters from a sports policy perspective, and that is why our Policy Bureau has not given any support to GG2022 in respect of sports policy. Members surely understand that HAB also undertakes religion and family policies. I remember that during the previous bids to host the Gay Game in the past few years, we heard quite a lot of opposing voices, including whether the message conveyed by the event would divide the community, just as the Member has mentioned earlier on. Of course, various Policy Bureaux also undertake work relating to the equality of rights and respect for diversity. Let us see whether they will have anything to add later. At present, we process all applications in accordance with the established procedures. That is all for my reply.

MR HOLDEN CHOW (in Cantonese): President, the Gay Games Hong Kong, as a registered organization, certainly has the right to submit applications, but I think all matters should be handled according to the rules. As I am aware, the Gay Games are neither affiliated with the International Olympic Committee nor a recognized international sports federation, and SF&OC will not send athletes to participate in the competitions. The rules are clear. I think the Government should process the applications submitted by the Gay Games Hong Kong according to the rules, and there is no need to give them top priority. All registered organizations should be treated equally.

President, the supplementary question I wish to raise is: Given that hosting GG2022 has attracted dissenting views from many family values concern groups or religious bodies in the community, and as Dr Priscilla LEUNG has just pointed out, hosting GG2022 will stir up considerable controversy in society, how will the Bureau respond to the controversy over hosting such games, which may plunge society into even greater controversy? Has the Bureau made any assessment?

SECRETARY FOR HOME AFFAIRS (in Cantonese): President, I thank the 7076 LEGISLATIVE COUNCIL ― 9 June 2021

Member for the supplementary question. Just now I have particularly highlighted that Hong Kong is an events capital that embraces diversity, we have surely taken the opposing voices into account, especially from the perspectives of home affairs policy as well as religion and family policies. We will continue to advocate core family values and religious inclusion. As cultural diversity or inclusion concerns other Policy Bureaux, let us see if they have anything to add.

MS YUNG HOI-YAN (in Cantonese): President, I note that GG2022 is a unique combination of sport, arts, culture, fun and community. Its objectives are to foster and enhance self-esteem among people with different sexual orientations all over the world, and enable them to be respected and understood by non-homosexuals or non-sexual minorities. I would like to ask the Administration, what measures have been put in place to enhance self-esteem among sexual minorities and facilitate understanding of them by ordinary people? As far as I know, the Government has organized various activities including cultural and recreational activities. I would like to ask the Secretary: What further promotional measures will be implemented next in this regard?

SECRETARY FOR HOME AFFAIRS (in Cantonese): Perhaps I speak a bit more first. We have organized various events of different themes. Of course, everyone is welcome to participate in the sports events or cultural activities promoted by us. Perhaps the Constitutional and Mainland Affairs Bureau ("CMAB") may add a bit more on the support for sexual minorities.

SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS (in Cantonese): President, the Government has been striving to promote a diverse and inclusive society. It also hopes to eliminate all forms of discrimination and promote the values of mutual respect. Regarding sexual minorities, the SAR Government has made lots of efforts, including publicizing the message of "eliminate discrimination, embrace inclusion" through various platforms and channels such as television, Internet and public transport network. Besides, we also provide support services for sexual minorities by various means. For example, we have set up PRIDE Line, a 24-hour hotline for sexual minorities. Besides, we have also provided training for medical and healthcare professionals and frontline officers of disciplined services to enhance their knowledge of and sensitivity towards sexual minorities. We will continue to step up our efforts in LEGISLATIVE COUNCIL ― 9 June 2021 7077 various respects later in the hope of fostering more respect for different values in the community.

DR JUNIUS HO (in Cantonese): President, GG2022 refers to the Gay Games. Let me first state that the residents I represent strongly oppose legalizing same-sex marriage. Of course, we respect the sexual orientation of every person. Whatever you do in your own room is your business, but if you do it in public, it will be disgraceful. In the past, there was a round of debate on the legalization of homosexuality. Although it is imperative that we keep abreast of the times, when the bottom line of fundamental social values is touched upon, we cannot but remain vigilant. What I fear most is we give them an inch and they will take a mile. What two homosexuals do between them is their own business. But if they are going to make it public and even want to promote the Gay Games, will it be their next step to advocate the legalization of same-sex marriage as in Taiwan? Earlier, a civil servant named LEUNG Chun-kwong went to Australia and married a …

PRESIDENT (in Cantonese): Dr Junius HO, please raise your supplementary question directly.

DR JUNIUS HO (in Cantonese): … my point is very simple. The Government should not interfere in this matter. Community matters should be left in the hands of the community. The Government should not provide funding support. I do not want to earn this kind of "dirty money" either, and we should let go of this $1 billion.

PRESIDENT (in Cantonese): Secretary, do you have any response?

SECRETARY FOR HOME AFFAIRS (in Cantonese): I will give a brief response. At this juncture, at least HAB has not provided any support through its funds, nor has it received any request for financial assistance. As for venues, to put it simply, the relevant applications will be processed in accordance with the established procedures.

Regarding the marriage policy, which Members have just mentioned, we 7078 LEGISLATIVE COUNCIL ― 9 June 2021 do not have plans to make any changes at this juncture. I just want to make these few points clear.

MRS REGINA IP (in Cantonese): President, I would like to point out that, as a matter of fact, the last-term Government, CMAB, EOC, the Commerce and Economic Development Bureau and HKTB had all indicated support for this event, which only aims to organize sports activities and promote some cultural activities in order to demonstrate Hong Kong's support for equal opportunities, rather than advocating same-sex marriage. I hope that my colleagues will not get too worried. In addition, the court has already handed down judgments on a number of cases, but none of them is related to same-sex marriage, be it the cases of Miss W, KT or LEUNG Chun-kwong.

I would like to ask Secretary TSANG―I am very glad to see him present at the meeting―I believe the Government has no plan to take forward a legislative amendment exercise to amend the marriage institution, nor will it embark on this exercise casually unless a consensus is reached in the community after a wide and in-depth public consultation. The court has likewise indicated that it will not alter our marriage institution, and legislative amendments would only be made upon public discussion and approval by the Legislative Council. Secretary, is this the correct understanding? Would you make an appeal and explain to the public so that they will not get too agitated about a sports event?

SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS (in Cantonese): At present, same-sex marriage is indeed a very controversial issue, and there are diverse views and opinions on this subject in the community. When making any policy changes, the Government certainly pays regard to the social conditions. Before the community can reach a relatively broad consensus, we will not make any policy changes casually. This point is very clear.

PRESIDENT (in Cantonese): Oral questions end here.

WRITTEN ANSWERS TO QUESTIONS LEGISLATIVE COUNCIL ― 9 June 2021 7079

Profit requirements for companies to be listed on the Main Board

7. MR CHRISTOPHER CHEUNG (in Chinese): President, at present, companies seeking to be listed on the Main Board have to satisfy the following profit requirements: the profit attributable to shareholders in the most recent financial year of the trading record period must not be less than $20 million ("Threshold A"), and the profit attributable to shareholders in the two preceding financial years must not be less than $30 million ("Threshold B"). The Stock Exchange of Hong Kong Limited ("the Exchange") launched a two-month public consultation exercise at the end of November last year on a proposal to raise the profit requirements either by 150% (i.e. raising Thresholds A and B to $50 million and $75 million respectively) or by 200% (i.e. raising Thresholds A and B to $60 million and $90 million respectively). As revealed in the consultation findings published last month, among the 115 non-duplicated responses, respectively 17% and 83% supported and did not support the proposal to raise the profit requirements. The Exchange indicated that, after careful consideration of all responses, it had decided to raise Thresholds A and B to $35 million and $45 million respectively (i.e. raising Thresholds A and B from an aggregate $50 million by 60% to $80 million). The new profit requirements will take effect on 1 January next year. In this connection, will the Government inform this Council:

(1) whether it has gained an understanding from the Exchange why it had not gone along with the mainstream responses collected from the public consultation exercise by shelving the proposal to raise the profit requirements;

(2) whether it will request the Exchange to review and shelve its decision, so as to go along with the mainstream responses collected from the public consultation exercise; and

(3) as some practitioners of the securities industry have pointed out that upon upward adjustment of the profit requirements, the threshold for listing on the Main Board of the Exchange would be the highest among the securities markets in the world, how the Government ensures that small and medium enterprises can still make use of the securities market of Hong Kong to raise fund through launching initial public offerings?

7080 LEGISLATIVE COUNCIL ― 9 June 2021

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Chinese): President, at present, the Listing Rules of the Hong Kong Exchanges and Clearing Limited ("HKEX") requires that companies applying for listing ("listing applicants") should meet requirements such as minimum market capitalization, profit, etc. The relevant requirements aim at upholding market quality and strengthening Hong Kong's position as an international financial centre. HKEX has all along been adjusting the relevant requirements in light of the latest development of the market.

The profit requirements for listing applicants have not been revised since 1994. While HKEX increased the minimum market capitalization requirement for listing applicants in 2018, it did not correspondingly increase the minimum profit requirements. The Securities and Futures Commission ("SFC") and HKEX notice that there have been listing applicants who could marginally meet the profit and market capitalization requirements and with relatively high valuation when compared with their listed peers. Many of these companies could not maintain the relevant valuation after listing, causing losses for investors and hence regulatory authorities' concern about the basis of these listed companies' valuation. SFC and HKEX also note that certain misconduct, including the orchestration of "ramp-and-dump" schemes, etc., usually involved listed companies that could barely meet the minimum market capitalization requirement but with relatively low profit.

In order to address these regulatory issues, HKEX considers it necessary to increase the profit requirements and consulted the market on such proposals from November 2020 to February 2021. Specifically, HKEX proposed to increase the profit requirements by 150% ("Proposal 1") or 200% ("Proposal 2"). Having carefully considered the respondents' feedback, HKEX issued the consultation conclusions in May 2021 with the decision to increase the profit requirements by 60% and postpone the implementation date to 1 January 2022. At the same time, SFC and HKEX issued a joint statement setting out issues that have been identified in recent initial public offerings and the commitment to step up their collaboration to tackle misconduct and improper behaviour involving newly-listed companies.

Having consulted SFC and HKEX, my reply to the three parts of the question is as follows:

LEGISLATIVE COUNCIL ― 9 June 2021 7081

(1) and (2)

It has been HKEX's established practice to conduct market consultation on proposed amendments to the Listing Rules and make suitable adjustments to the proposals as set out in the consultation paper having regard to the views received from market participants. Doing so would ensure that the rules formulated are in the overall interest of the market and investors.

In respect of the increase in profit requirements of listing applicants, HKEX has also conducted a consultation in accordance with the above mentioned arrangement and it has carefully considered the feedback received. HKEX stated in the consultation conclusions that majority of the 17% of the respondents were inclined to support Proposal 1 and the rest of the respondents did not support the proposals due to various reasons. Although these respondents did not agree to the level of increase in profit requirement (i.e. Proposal 1 or Proposal 2) as proposed by HKEX, they were not against the principle of improving the quality and maintaining the diversity of the capital market in Hong Kong.

After careful consideration of the respondents' feedback and the principle of upholding market quality and protecting the interest of the investing public, HKEX decided to adjust the level of increase in profit requirements, i.e. from an increase by 150% or 200% to an increase by 60%, and postpone the implementation date to 1 January 2022.

(3) The specific business and financial requirements for listing applicants of the securities exchanges in different jurisdictions vary and therefore cannot be directly compared. As far as profit requirements are concerned, the three-year minimum aggregate profit requirement for listing on NASDAQ's Global Select Market or the New York Stock Exchange ranges from US$11 million to US$12 million (i.e. approximately HK$85 million to HK$93 million), which is higher than the profit requirements to be imposed by HKEX from 1 January 2022 (i.e. three-year total of HK$80 million). NASDAQ's Global Select Market and the New York Stock Exchange also require issuers to have minimum public 7082 LEGISLATIVE COUNCIL ― 9 June 2021

float of US$40 million (i.e. approximately HK$310 million), which is significantly higher than the minimum public float of HK$125 million for HKEX's Main Board listing applicants.

HKEX will continue to implement initiatives to promote further market development and uphold market quality in light of its latest development, thereby strengthening Hong Kong's position as an international financial centre.

Work attitude of civil servants

8. MR SHIU KA-FAI (in Chinese): President, quite a number of members of the public have relayed that despite their having lodged complaints repeatedly with government departments about public affairs, the problems concerned have not been followed up or resolved after a prolonged period of time, which gives them the impression that the work attitude of some civil servants is perfunctory, and that they often "accept complaints but continue to work as usual". In this connection, will the Government inform this Council:

(1) of the number of complaints about the perfunctory work attitude of civil servants received in each of the past five years (with a breakdown by the government department to which the civil servants under complaint belonged), and the relevant investigation procedure;

(2) among the complaints mentioned in (1), of the number of those found substantiated after investigation, and the number of civil servants disciplined as a result (with a breakdown by type of disciplinary actions);

(3) whether it knows the total number of complaints of a similar type received by the Office of The Ombudsman and other relevant organizations in each of the past five years (with a breakdown by organization); among such complaints, of the number of those found substantiated after investigation, and the number of civil servants disciplined as a result (with a breakdown by type of disciplinary actions); and

LEGISLATIVE COUNCIL ― 9 June 2021 7083

(4) whether it has assessed if the perfunctory work attitude of some civil servants is related to their enjoying immense job stability (i.e. the so-called "iron rice bowls"); if it has assessed and the outcome is in the affirmative, how the Government will make improvements; if the assessment outcome is in the negative, of the reasons for that?

SECRETARY FOR THE CIVIL SERVICE (in Chinese): President, the civil service is the backbone of the Government of the Hong Kong Special Administrative Region. "Dedication, professionalism and diligence" is a core value that civil servants are required to uphold. The civil service endeavours to serve the community and contributes to the effective governance as well as stability and prosperity of Hong Kong.

Our consolidated reply to the various parts of the question is as follows:

(1) and (3)

The complaint figures kept by the Civil Service Bureau ("CSB") do not include the category of "perfunctory work attitude of civil servants". It is our understanding that The Ombudsman's statistics do not include the above category either.

Under the established mechanism, complaints against civil servants are handled by their departments. Members of the public generally also lodge their complaints with the relevant departments directly. If such complaints are directed to CSB, CSB will refer them, in accordance with the established practice, to the relevant departments for follow-up.

Civil servants are subject to performance appraisal on an annual basis which enables the management to monitor and assess staff performance. However, if an officer is observed by his/her department as less than fully efficient or productive, or there are other areas for improvement in his/her work performance, this should normally be dealt with as soon as the shortcoming is observed either by speaking to him/her or writing to him/her, without waiting for the annual staff report. If a civil servant is suspected to have committed misconduct, the relevant department will conduct 7084 LEGISLATIVE COUNCIL ― 9 June 2021

investigation having regard to the actual circumstances of the case. If it is confirmed upon investigation that the civil servant has committed misconduct, the department should take appropriate disciplinary action under the disciplinary mechanism.

(2) In the past five financial years from 2016-2017 to 2020-2021, the number of cases involving punishment against misconduct relating to insubordination, negligence/neglect of duty and unauthorized absence/unpunctuality broken down by year is as follows:

Financial Year Number of cases 2016-2017 239 2017-2018 252 2018-2019 267 2019-2020 150 2020-2021 167

The majority of the above disciplinary cases involved minor misconduct, and the officers were punished with verbal or written warnings. There were a small portion of cases which involved repeated or more serious misconduct, and the punishments imposed included reprimand, severe reprimand, compulsory retirement or dismissal, etc.

(4) As mentioned above, civil servants are subject to performance appraisal on an annual basis which enables the management to monitor and assess staff performance. A civil servant may be granted an increment only if his/her performance at work has been satisfactory during the appraisal period. For an appraisee with substandard performance, his/her increment could be stopped or deferred. An officer's work performance is also an important consideration for the departmental or grade management when selecting suitable officers for promotion and training. For individual civil servants with persistent sub-standard performance, the Government may invoke section 12 of the Public Service (Administration) Order to retire the officer concerned in the public interest.

LEGISLATIVE COUNCIL ― 9 June 2021 7085

On the other hand, the Government has made use of various commendation schemes (such as the Civil Service Outstanding Service Award Scheme, the Secretary for the Civil Service's Commendation Award Scheme and the Commendation Letter Scheme, etc.) to recognize and motivate exemplary performance of civil servants, and encourage them to provide quality service to members of the public with dedication.

With the community's rising expectations for public services, the civil service will continue to strive for excellence.

Biotechnology and healthcare technology

9. MR MARTIN LIAO (in Chinese): President, there are views that following the constant breakthroughs in life science research and with the increasing pressure on the healthcare system created by an ageing population, coupled with the challenges brought by the Coronavirus Disease 2019 epidemic, various places around the world are paying increasing attention to the development of biotechnology. The biotechnology industry is among the nine emerging strategic industries put forward in the Outline of the 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Long-Range Objectives Through the Year 2035, which also pledges support for developing the Guangdong-Hong Kong-Macao Greater Bay Area ("Greater Bay Area") into an international innovation and technology hub. Besides, Hong Kong has a strong foundation for developing biotechnology. At present, Hong Kong hosts more than 250 companies which engage in the biotechnology industry, and various tertiary institutions participate in cutting-edge biomedical research. In addition, Hong Kong has a sound regime for the protection of intellectual property rights and sound financing channels. With the Hong Kong Exchanges and Clearing Limited allowing pre-revenue biotechnology enterprises to raise fund through listing on the Main Board since 2018, Hong Kong has now become Asia's largest and the world's second largest funding hub for biotechnology. In this connection, will the Government inform this Council:

(1) given that the biotechnology industry, being a strategic industry, can hardly develop by itself relying solely on the market, whether the Government will, by drawing reference from the rich experience of 7086 LEGISLATIVE COUNCIL ― 9 June 2021

Switzerland and Singapore, formulate a development blueprint for the biotechnology industry; if so, of the details and timetable;

(2) given that the Government has established at the Hong Kong Science Park Health@InnoHK, a research cluster focusing on healthcare technology, to attract world‑renowned institutions, science and research institutes and enterprises to set up research and development laboratories to conduct collaborative scientific researches, of the respective up-to-date numbers of admission applications received and approved by the Government, and the situation of applicants being successfully admitted to the cluster; whether there are cases of withdrawn applications or declined admission to the cluster after applications have been approved; if so, of the number and reasons;

(3) as it is learnt that the Mainland authorities have banned the import and export of bio bank and medical data, whether the Government will explore with the Governments of the Guangdong Province and Macao on relaxing the restrictions in relation to the relevant policies (including those on intellectual property rights), so as to promote the development of the biotechnology industry in the Greater Bay Area; if so, of the details; if not, the reasons for that; and

(4) given that the Work Plan for Regulatory Innovation and Development of Pharmaceutical and Medical Device in the Guangdong-Hong Kong-Macao Greater Bay Area, issued by the Mainland Government in November last year, put forward the aspiration of establishing a comprehensive coordination mechanism for regulating pharmaceutical and medical devices in the Greater Bay Area by 2035, of the policies and measures put in place by the Government in support of the relevant work?

SECRETARY FOR INNOVATION AND TECHNOLOGY (in Chinese): President, medical technology is one of the areas where Hong Kong enjoys clear advantages in innovation and technology ("I&T"). The Government has all along been fostering the relevant research and development ("R&D") on various fronts. Hong Kong has a solid foundation in biotechnology research and an ecosystem that is gradually improving. Currently, we are also Asia's largest and LEGISLATIVE COUNCIL ― 9 June 2021 7087 the world's second largest fundraising hub for biotechnology companies, and the first in the world of which clinical data is recognized by international authoritative medicine regulatory authorities for medicine registration, including the National Medical Products Administration, the United States Food and Drug Administration, and the European Medicines Agency at the same time.

Having consulted the Food and Health Bureau and the Commerce and Economic Development Bureau, my consolidated reply to various parts of the question is as follows:

(1) In order to further promote R&D on biotechnology and the development of the industry, the Government has been implementing the following major measures in terms of infrastructure, research funding, financing and talent in recent years:

In terms of infrastructure, wet laboratories ("wet-labs") are indispensable to biomedical research. Currently, the leasable area of wet-labs in the Hong Kong Science Park ("HKSP") amounts to 59 000 sq m, and will increase to about 68 000 sq m after the completion of the conversion works of Building 6W to wet-labs by the end of this year. The first batch of works of Phase 2 of the Science Park Expansion Programme will provide an additional wet-lab area of 10 000 sq m. On the other hand, the Biobank and Biomedical Informatics Platform in HKSP, which was commissioned in December 2020, provides services for collecting, processing, storage and sharing of bio-specimens, as well as cloud storage service of biomedical data and computing and analytical services using sandbox respectively. The Hong Kong Science and Technology Parks Corporation ("HKSTPC") is also planning the development of the laboratory research facilities for medical device testing, drug testing, and animal research, etc.; and the Biomedical Technology Support Centre, which is equipped with life-science instruments, will be expanded within this year with the total area increased by 70% to about 2 040 sq m. Furthermore, one of the first two InnoHK research clusters, which are Hong Kong's flagship I&T projects, focuses on healthcare technologies with a view to leveraging local universities' R&D strengths in healthcare technologies to develop Hong Kong as the international hub for research collaboration in healthcare technologies. In the medium to 7088 LEGISLATIVE COUNCIL ― 9 June 2021

long term, the Government is taking forward the development of the Hong Kong-Shenzhen Innovation and Technology Park ("HSITP") in the Lok Ma Chau Loop in full swing. The first eight buildings are expected to be completed in phases from 2024 to 2027. One of the priority development areas of HSITPL will be healthcare technologies.

In terms of research funding, the Incu-Bio Incubation Programme of HKSTPC provides funding of up to $4 million to incubatees engaging in biotechnology. In view of the relatively complex regulatory procedures involved in biotechnology researches, the incubation programme also offers a targeted funding of up to $2 million to incubatees for certification or investigational new drug applications, etc. As at end-April, the Programme has supported 41 start-ups, with more than $55 million approved by HKSTPC. On the other hand, the Innovation and Technology Fund has supported more than 630 projects on biotechnology technologies over the years, including many of its first in the world, such as artificial "mini-hearts", internally motorized minimally invasive robot surgeon, non-invasive prenatal diagnostic technique, etc. The research results of some projects have been commercialized successfully, where some start-ups have even developed into unicorns, making great contributions to global scientific research.

In terms of financing, Hong Kong has implemented a new listing regime since end-April 2018 to facilitate the listing of pre-revenue/pre-profit biotechnology companies in Hong Kong. A total of 31 pre-revenue/pre-profit biotechnology companies have listed in Hong Kong under the new regime so far. The Corporate Venture Fund of HKSTPC has also invested in biotechnological start-ups engaging in drug delivery, stem cell technology and cancer treatment research, etc.

In terms of talent, Hong Kong has many world-class experts in biomedical research who frequently won local and overseas science awards in their respective professional areas. Their research results were also widely adopted in many countries. Among the 16 State Key Laboratories in Hong Kong, nine of them focus on biotechnology-related studies. In addition, the Innovation and LEGISLATIVE COUNCIL ― 9 June 2021 7089

Technology Commission launched the Technology Talent Admission Scheme ("TechTAS") in June 2018, which provides a fast-track arrangement to admit technology talent. As of end-April 2021, TechTAS has allotted 558 quotas, of which 58 are related to biotechnology; and more than 1 400 applications for funding support related to biotechnology were approved in the same period under the Research Talent Hub which provides funding support for organizations and companies to engage research talent to conduct R&D work.

(2) The InnoHK research cluster initiative has received enthusiastic response, with over 60 proposals from world renowned universities and research institutes and 27 selected, including 15 R&D centres that focus on biomedical technology. The first batch of 20 admitted R&D centres have completed the renovation of their laboratories and commenced operation progressively. It is estimated that the remaining seven R&D centres will commence operation later this year. We will closely monitor the relevant progress.

(3) The National 14th Five-Year Plan announced this March includes biotechnology industry as one of the nine major emerging strategic industries, and meanwhile proposes high-quality development of the Guangdong-Hong Kong-Macao Greater Bay Area ("GBA") and facilitation of the cross-boundary flow of innovation elements. It also supports Hong Kong's development into an international I&T hub and integration into national development, leveraging the complementary advantages with Mainland.

The Government will continue to facilitate the effective flow of innovation elements, including scientific research resources. The Central Government announced in November 2019 two facilitation measures, namely (i) relaxing the limitation on exporting Mainland human genetic resources to Hong Kong by allowing Mainland branches established by Hong Kong's universities and scientific research institutes, upon being confirmed by the Ministry of Science and Technology ("MOST") to be meeting the specified requirements, to lodge applications for exporting human genetic resources to Hong Kong independently under a pilot scheme for research purpose, and (ii) facilitating customs clearance of imported animal-derived 7090 LEGISLATIVE COUNCIL ― 9 June 2021

biomaterials by simplifying the vetting process and shortening the processing time in accordance with the relevant laws and regulations, thereby making it easier for Hong Kong's universities and scientific research institutes to conduct animal experiments in the Mainland. On relaxing the limitation on exporting Mainland human genetic resources to Hong Kong, three Mainland branches established by Hong Kong's universities have been confirmed by MOST to be meeting the specified requirements under the pilot scheme so far.

In terms of intellectual property, generally speaking, intellectual property protection is territorial in nature, different jurisdictions process intellectual property registration applications based on their respective intellectual property system and laws. As the Mainland is a significant market for output of scientific research in Hong Kong, the Government has been exploring facilitation measures with the relevant Mainland authorities to provide convenience for enterprises and research institutes in Hong Kong and the Mainland (especially in GBA) when applying for intellectual property registration. For instance, the original grant patent system of Hong Kong allows patent applicants to file applications for inventions involving use of micro-organisms based on samples of micro-organisms deposited in international depositary authorities or equivalent institutions which are situated in the Mainland, without the need to transport the samples to Hong Kong.

The Government will continue to pay close attention to the difficulties encountered by the biotechnology industry in GBA, and explore with related Mainland authorities the possibility of relevant measures to facilitate the development of related industries in GBA.

(4) The Government has been maintaining close liaison with the relevant Mainland authorities to discuss the implementation of the measure of allowing designated healthcare institutions operating in GBA to use Hong Kong-registered drugs with urgent clinical use and medical devices used in Hong Kong public hospitals ("the Measure"), at the University of Hong Kong-Shenzhen Hospital ("HKU-SZH") on a trial basis, subject to the approval of Guangdong Province. Our latest work include establishing a collaborative platform and LEGISLATIVE COUNCIL ― 9 June 2021 7091

compiling a directory of drugs and medical devices that can be used in designated healthcare institutions in GBA, etc. The Guangdong Provincial Medical Products Administration ("GDMPA") has commenced the Measure to use the relevant drugs and medical devices at HKU-SZH on a trial basis, with a trial period up till 31 July this year. Under the Measure, the first drug item and first medical device have already been delivered to HKU-SZH in April this year for clinical use.

The Government will continue to work and liaise with GDMPA with a view to expanding the directory of drugs and medical devices as soon as possible, and extending the arrangement gradually to cover more designated healthcare institutions in GBA after achieving phased progress under the trial arrangement at HKU-SZH. We hope to provide greater medical convenience for Hong Kong residents working and living in GBA, to foster mutual benefits, connectivity and in-depth integration of the medical and pharmaceutical industries in GBA, as well as to promote a comprehensive coordination mechanism for regulating pharmaceutical and medical devices in the region.

Transport facilities in North

10. IR DR LO WAI-KWOK (in Chinese): President, the development projects being taken forward in New Territories North ("NTN") and North East New Territories can accommodate a population of more than 800 000 upon completion. Some residents of NTN have pointed out that currently they mainly rely on the Tolo Highway and the MTR East Rail Line to travel to and from the urban areas. As such transport facilities have reached their maximum capacity during peak hours, they can hardly cope with the additional transport demand arising from these development projects. In this connection, will the Government inform this Council:

(1) of the respective (i) average vehicular flow (vehicle/hour) and (ii) average vehicular speed (kilometre/hour) of the Tolo Highway and the Fanling Highway (southbound and northbound) during peak hours in each of the past three years;

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(2) as the Government indicated in January this year that it had commenced the strategic studies beyond 2030 in respect of railways and trunk roads, which included exploring proposals to construct a new north-south railway and improve the north-south road network, of the progress of the studies concerned (including the preliminary proposed railway alignment); and

(3) as the Government has indicated that if the proposed Northern Link spur line is re-routed to the Lok Ma Chau Loop and connects with the redeveloped Huanggang Port, it will help strengthen the cross-boundary transport links and those between the Loop and the urban areas, and the Government has thus requested the MTR Corporation Limited to study the feasibility and benefits of this option, of the timetable for the relevant work?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, our reply to various parts of Ir Dr LO Wai-kwok's question is as follows:

(1) The average vehicular flows of Fanling Highway and Tolo Highway at peak hours in 2018 and 2019(1) are listed in Table 1.

Table 1 Average vehicular flow per hour at peak hours(2) Road Direction 2018 2019 AM PM AM PM Fanling Southbound 2 210 2 650 2 310 2 430 Highway Northbound 2 280 2 080 2 090 2 250 Tolo Southbound 6 870 5 580 6 840 5 240 Highway Northbound 4 850 5 790 5 140 6 140

Note:

(2) The relevant data were collected from different surveys. Peak hours generally refer to the periods from 7:00 am to 10:00 am and from 4:00 pm to 7:00 pm on weekdays. The figures in Table 1 indicated the traffic situation during the above mentioned periods, whereas the vehicular speeds in Table 2 were collected during the busiest periods of the peak hours (i.e. from 8:00 am to 9:30 am and from 5:00 pm to 7:00 pm).

(1) Traffic volume statistics in Annual Traffic Census are currently available up to 2019. The Transport Department ("TD") does not have relevant figures of 2020. LEGISLATIVE COUNCIL ― 9 June 2021 7093

The average vehicular speeds of Fanling Highway and Tolo Highway at peak hours from 2018 to 2020 are listed in Table 2.

Table 2 Average speed at peak hours(2) (km/hr) Road Direction 2018 2019 2020 AM PM AM PM AM PM Fanling Southbound 68 - 74 - 80 - Highway(3) Northbound 70 - 76 - 82 - Tolo Southbound 47 68 28 71 49 76 Highway Northbound 61 55 72 72 75 74

Notes:

(2) The relevant data were collected from different surveys. Peak hours generally refer to the periods from 7:00 am to 10:00 am and from 4:00 pm to 7:00 pm on weekdays. The figures in Table 1 indicated the traffic situation during the above mentioned periods, whereas the vehicular speeds in Table 2 were collected during the busiest periods of the peak hours (i.e. from 8:00 am to 9:30 am and from 5:00 pm to 7:00 pm).

(3) TD does not have the average vehicular speed data of Fanling Highway during the evening peak hours.

(2) The Highways Department and TD commenced the "Strategic Studies on Railways and Major Roads beyond 2030" in December 2020. Based on the final development strategy of the "Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030" planning study which will soon be published by the Development Bureau, the Studies will explore the layout of railway and major road infrastructure, including the connection between new development area in New Territories North and the urban area, and conduct preliminary engineering and technical assessments for their alignments and supporting facilities, so as to ensure that the planning of large-scale transport infrastructure will complement or even reserve capacity to meet the overall long-term development needs of Hong Kong. The Studies will also examine the impact of the proposed transport infrastructure on the existing transport network in order to formulate the corresponding strategies.

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It will take around 38 months and 27 months respectively to complete the railways part and major roads part of the Studies. We will consult the Legislative Council at an appropriate time when preliminary findings of the Studies are available.

(3) According to the recommendation of the Railway Development Strategy 2014, in addition to the main line connecting the Kam Sheung Road Station to the Kwu Tung Station of the proposed Northern Link ("NOL"), subject to the growth in cross-boundary transport demand, a bifurcation could be added to connect the Kam Sheung Road Station to the existing Lok Ma Chau Station direct.

Based on Shenzhen's redevelopment plan of the Huanggang Port, the redeveloped Huanggang Port will become a transport hub complex. If the NOL bifurcation is realigned to connect to the redeveloped Huanggang Port through the Lok Ma Chau Loop, it will help strengthen the cross-boundary transport link as well as the connection between the Lok Ma Chau Loop and the urban area. It will also provide another option for citizens and tourists travelling within Guangdong-Hong Kong-Macao Greater Bay Area. We notice that the Shenzhen authority has stated that space will be reserved in the redeveloped Huanggang Port to enable connection of the NOL bifurcation. This will provide flexibility in the planning of the NOL bifurcation.

Considering that the optimization of the Huanggang Port may drive cross-boundary transport demand, we have requested the MTR Corporation Limited to investigate the feasibility and benefits of constructing the NOL bifurcation, so that the Government can consider the way forward of the project in due course.

Railway projects involve huge capital investment, and the Government has to plan in a prudent manner. We will review the need for constructing the NOL bifurcation and its technical and financial feasibility, and will make adjustment to the railway implementation timetable in accordance with the detailed studies, latest demand assessment and availability of resources.

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Import and export trading of pharmaceutical products and medicines

11. MR FRANKIE YICK (in Chinese): President, it is learnt that in recent years, there has been a surge in the quantities of pharmaceutical products and medicines (collectively referred to as "medicines") purchased by Mainland residents from Hong Kong's online traders. However, the development of such business has been hindered by the complicated procedure involved in the import and export of medicines. In this connection, will the Government inform this Council:

(1) of the respective quantities and total values of medicines (i) imported to and (ii) exported from Hong Kong in each of the past three years, and the year-on-year rates of change of such figures, and a breakdown of such figures by (a) type of medicines (i.e. health supplements, over-the-counter drugs, prescribed drugs and dangerous drugs) and (b) whether the Mainland was the import/export destination as well as the relevant percentages;

(2) given that the application procedure for an import licence/export licence for medicines is complicated and time-consuming (e.g. (i) that application is required for every instance of importation/exportation of medicines, (ii) that the application forms are available for sale only at specified locations, (iii) that application for re-export of unregistered medicines may only be made through the electronic system, and (iv) that the relevant arrangements have been designed on the basis of bulk trading of medicines), whether the Government will streamline such procedure (e.g. granting exemption to small-volume trading of medicines between enterprises and consumers), and shorten the time taken for vetting and approval of applications;

(3) whether it will discuss with the authorities of the Mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area ("Greater Bay Area") the introduction of measures to promote the trading of medicines in the Greater Bay Area, with a view to developing Hong Kong into a trading hub for medicines in the Greater Bay Area; if so, of the details; if not, the reasons for that; and

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(4) of the measures in place to assist Hong Kong businessmen in tapping the business opportunities in the import/export trade of medicines on the Mainland?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, according to the Pharmacy and Poisons Ordinance (Cap. 138) ("PPO"), "pharmaceutical products" must satisfy the criteria of safety, efficacy and quality, and must be registered with the Pharmacy and Poisons Board of Hong Kong ("PPB") before they can be sold, offered for sale, distributed or possessed for the purposes of sale, distribution or other use in Hong Kong. The above control does not apply in the case of possession or use where the unregistered pharmaceutical product ("UPP") or substance has been imported into Hong Kong (i) to be exported outside Hong Kong; or (ii) by a licensed manufacturer for the purpose of manufacture or the compounding of pharmaceutical preparations.

Under PPO, holders of valid wholesale dealer licence or manufacturer licence issued by PPB may carry on business as an importer/exporter of pharmaceutical products, and the licensed manufacturer can only import pharmaceutical products for the purpose of manufacturing the person's own pharmaceutical products or the products to be exported are manufactured by the person. In addition, the import and export of pharmaceutical products are subjected to control of Import and Export Ordinance (Cap. 60) ("IEO"). Licensed wholesaler must apply for import or export licences for each shipment of pharmaceutical products with the Department of Health ("DH") beforehand.

After consulting DH and the Trade and Industry Department ("TID"), the Government's consolidated response to Mr Frankie YICK's question is as follows:

(1) The number of import and export licences for pharmaceutical products issued by DH over the past three years are listed below. DH does not maintain the total figure nor value of the relevant pharmaceutical products, and does not classify the pharmaceutical products in accordance with the product category and sales control.

No. of Import and No. of Import No. of Export Year Export Licence Licence Issued Licence Issued Issued 2018 44 117 124 493 168 610 2019 48 119 120 047 168 166 2020 47 409 150 873 198 282

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(2) In response to the recommendation by the Review Committee on Regulation of Pharmaceutical Products in Hong Kong in 2009, and to strengthen the monitoring of the flow of pharmaceutical products as well as prevent unregistered drugs imported for re-export purposes from entering the local market illegally, DH has set up the electronic "Pharmaceuticals Licence Application and Movement Monitoring System" ("PLAMMS") in 2015 and licensed wholesalers must lodge applications for import and export licences of pharmaceutical products via PLAMMS.

Each licensed wholesaler which carries on the business of import of UPP for re-export must first enlist the product intended for such purpose via PLAMMS individually before applying for the relevant import/export licences. This process aims to ascertain such products fulfil the legal definition of pharmaceutical product, to classify the pharmaceutical substances in accordance with their legal classification, and to require the wholesaler to be a holder of a valid permit (e.g. Antibiotics Permit) to deal in such substance or preparation. Furthermore, the movement of such UPP into or out of Hong Kong is monitored via PLAMMS together with inspection of the licensed premises of the wholesalers conducted by DH to audit the imported UPP for re-export purpose. It is unnecessary to enlist registered pharmaceutical products with DH and applications for import/export licences for such products can be lodged via PLAMMS.

Currently, except from import/export licence applications for the import for re-export of UPP that must be submitted and processed via PLAMMS, other applications of import/export licences for pharmaceutical products can be submitted and processed via PLAMMS or in paper application forms. To provide greater convenience for applying for import/export licences, DH has planned that with effect from 31 December 2021, all import/export licence applications must be lodged via PLAMMS and by then, licensed wholesalers are no longer required to purchase the paper application forms from specified locations.

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Pharmaceutical products, medicines, Chinese herbal medicines and proprietary Chinese medicines may be exempted from DH's licensing requirements if they are only being shipped to another place via Hong Kong and there are relevant supporting documents (including through bill of lading) to prove that they are transhipment cargoes, except for the dangerous drugs as defined by section 2 of the Dangerous Drugs Ordinance (Cap. 134). According to the Transhipment Cargo Exemption Scheme ("TCES") administered by TID, subject to conditions, shipping companies and airlines, or their appointed freight forwarders registered under TCES are exempted from the import/export licensing requirements under IEO and the Reserved Commodities (Control of Imports, Exports and Reserve Stocks) Regulations (Cap. 296A) in respect of specified types of transhipment cargo. The relevant licensing authorities would devise different exemption conditions for the specified cargoes.

For pharmaceutical products and medicines, as well as Chinese herbal medicines and proprietary Chinese medicines, the exemption conditions include storing the transhipment cargo separately and apart from any other merchandise, and in premises registered by the company under TCES; keeping physical custody of the transhipment cargo by the company at all times while the transhipment cargo is in Hong Kong; keeping up-to-date books and records by the company in respect of all transhipment cargo handled; allowing authorized officers of the Customs and Excise Department to inspect its godown premises, transhipment cargo, and books and records relating to the transhipment cargo whenever required. Companies successfully registered under TCES would be issued with an exemption certificate which will be valid for two years. Registration can be done electronically in respect of such as submitting the application forms, tracking the applications and receiving the certificates.

(3) and (4)

In order to seize the tremendous opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area ("GBA") development, the Hong Kong Special Administrative Region ("HKSAR") Government has been strengthening economic and trade cooperation with the Mainland in all aspects, with a view to LEGISLATIVE COUNCIL ― 9 June 2021 7099 promoting the integration of the two places and assisting Hong Kong's business community, service providers and investors to expand into the Mainland market. Under the framework of the Mainland/Hong Kong Closer Economic Partnership Arrangement ("CEPA"), all "goods of Hong Kong origin" that comply with the relevant origin rules can enjoy zero tariff preference upon importation into the Mainland. In the CEPA Agreement on Trade in Goods implemented since 1 January 2019, there is also a dedicated chapter on "Trade Facilitation Measures in the Guangdong-Hong Kong-Macao Greater Bay Area" setting out the trade facilitation measures between Hong Kong and the nine Pearl River Delta municipalities. The measures include publishing periodically the overall customs clearance time for goods and further shortening the overall customs clearance time for goods, with a view to facilitating movement of goods in GBA.

In addition, in terms of the pharmaceutical industry, the Central Government has promulgated the Work Plan for Regulatory Innovation and Development of Pharmaceutical and Medical Device in the Guangdong-Hong Kong-Macao Greater Bay Area at the website of the National Medical Products Administration on 25 November 2020, allowing designated healthcare institutions operating in GBA to use Hong Kong-registered drugs with urgent clinical use, and medical devices used in Hong Kong public hospitals with urgent clinical use ("Measure"), subject to the approval of Guangdong Province. The HKSAR Government has been maintaining close liaison with the relevant Mainland authorities to discuss the implementation of the Measure at the University of Hong Kong-Shenzhen Hospital ("HKU-SZH") on a trial basis, including establishing a collaborative platform and making agreement on the directory of drugs and medical devices that can be used in designated healthcare institutions in GBA. The Guangdong Provincial Medical Products Administration ("GDMPA") has commenced the Measure to use the relevant drugs and medical devices at HKU-SZH on a trial basis, with a trial period up till 31 July. Through the Measure, the first drug item and first medical device have already been delivered to HKU-SZH in April for clinical use.

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The HKSAR Government will continue to work and liaise closely with GDMPA to implement the Measure, with a view to expanding the directory of drugs and medical devices as soon as possible, and extending the arrangement gradually to cover more designated healthcare institutions in GBA after achieving phased progress under the trial arrangement at HKU-SZH. We hope to foster mutual benefits, connectivity and in-depth integration of the medical and pharmaceutical industries in GBA, as well as attract medical and pharmaceutical companies to utilize the opportunity to develop in GBA.

Treatment for persons in custody suffering from hepatitis C

12. DR PIERRE CHAN (in Chinese): President, on the treatment for persons in custody ("PICs") suffering from hepatitis C provided by the Medical Officers seconded from the Department of Health to correctional institutions, will the Government inform this Council:

(1) of the current number of PICs diagnosed with hepatitis C;

(2) of the number of PICs who received treatment for hepatitis C in each of the past five years, and whether they were prescribed with medications for treating hepatitis C; and

(3) whether any PICs suffering from hepatitis C were referred to the hepatology specialist outpatient clinics under the Hospital Authority for treatment in the past five years; if so, of the number of persons in each year?

SECRETARY FOR SECURITY (in Chinese): President, the Correctional Services Department ("CSD") is committed to providing a secure, safe, humane, decent and healthy custodial environment for persons in custody ("PICs"), including ensuring that all PICs can receive necessary and appropriate medical services in accordance with the Prison Rules (Cap. 234A).

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Based on the information provided by CSD and the Food and Health Bureau, the consolidated reply to the questions raised by the Member is as follows:

Every correctional institution under CSD has a hospital or sick bay operating 24 hours a day, where medical officers from the Department of Health ("DH") and correctional officers with nursing qualifications provide basic medical services. PICs who require specialist treatment, intensive care or surgery will receive treatment in public hospitals. Moreover, medical specialists from the Hospital Authority ("HA") and DH visit correctional institutions on a regular basis to provide PICs with specialist consultation and treatment.

Generally speaking, CSD does not maintain statistics on the numbers of PICs suffering from different kinds of diseases, including hepatitis C.

HA and CSD do not maintain statistics on the number of PICs with hepatitis C who have been referred to hepatology specialist outpatient clinics under HA for treatment.

As for treatment of hepatitis C patients in general, HA has expanded the Drug Formulary since October 2020 to make full use of oral direct-acting antiviral ("DAA") medicines for treatment of hepatitis C patients regardless of the severity of patients' condition. With DAA medicines, the cure rate is as high as 95% to 100%, which is higher than that of the conventional combination of interferon and ribavirin used previously. The treatment period has also been shortened from over a year to 8 to 12 weeks.

Initiative to reform the Old Age Living Allowances

13. MR VINCENT CHENG (in Chinese): President, the Normal Old Age Living Allowance and the Higher Old Age Living Allowance are currently pitched at $2,845 and $3,815 per month respectively. In January last year, the Government proposed a reform initiative: combining the two allowances with the higher payment rate to be adopted, and raising the asset limits for elderly singletons and elderly couples to $500,000 and $750,000 respectively. Nevertheless, the Government stated in November last year in the Supplement to 7102 LEGISLATIVE COUNCIL ― 9 June 2021 the 2020 Policy Address that in light of the financial implications of the initiative, the Government would reassess the timing of implementing the initiative. In this connection, will the Government inform this Council:

(1) of the details, progress and outcome of the reassessment work; whether revising the proposed asset limits is within the scope of the reassessment work; if so, of the details and justifications, as well as whether it will consider further raising the asset limits; and

(2) whether it has set an implementation date for the initiative; if so, of the details; if not, whether the Government intends to give up implementing the initiative; if so, the reasons for that?

SECRETARY FOR LABOUR AND WELFARE (in Chinese): President, my consolidated reply to the Member's question is as follows:

In January 2020, the Chief Executive announced a number of livelihood initiatives, including the proposals of combining the Normal Old Age Living Allowance ("OALA") and Higher OALA and adopting the higher payment rate (Normal OALA currently at $2,845 per month and Higher OALA at $3,815 per month), as well as relaxing the asset limits of OALA significantly, viz. from $365,000 under Normal OALA or $159,000 under Higher OALA to $500,000 for elderly singletons, and from $554,000 under Normal OALA or $241,000 under Higher OALA to $750,000 for elderly couples after standardizing the payment rate. The two proposed enhancements involve significant recurrent expenditure. It is estimated that the Government's recurrent expenditure on OALA will increase from about $30 billion to $35 billion per year, i.e. by $5 billion or a 16% increase. The Government also requires substantial administrative and staffing resources to cope with the significant increase in number of applications.

Subsequently, the Chief Executive announced in the 2020 Policy Address Supplement that, in light of the significant financial implications of the two aforementioned OALA enhancements, the timing of implementation will be reassessed. Therefore, the additional resources and expenditure required for implementing the two measures have not been included in Social Welfare Department's 2021-2022 Estimates of Expenditure.

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Given Hong Kong's population ageing will continue and the two measures will involve significant recurrent expenditure, the present and projected Government's overall fiscal position is to be taken into account in the assessment. The Government will announce the assessment outcome at an appropriate juncture.

Reprovisioning or redevelopment of school premises

14. DR PRISCILLA LEUNG (in Chinese): President, regarding the reprovisioning or redevelopment of the premises of primary, secondary and special schools, will the Government inform this Council:

(1) of the respective current numbers of (i) primary schools, (ii) secondary schools and (iii) special schools whose premises have a site area of less than 3 000 square metres and are over 30 years old, and the facilities in which are below the current standards;

(2) of the following information on those schools the premises reprovisioning or redevelopment works for which (i) were completed within the past five years and (ii) are currently in progress:

(a) name of school,

(b) type of school (i.e. government, subsidized, Direct Subsidy Scheme and private),

(c) name of school sponsoring body ("SSB") (if applicable),

(d) year of completion of the original school premises,

(e) date on which the School Allocation Committee ("SAC") under the Education Bureau ("EDB") received the application concerned,

(f) date on which the Finance Committee of this Council approved the funding application of the project concerned,

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(g) approved project estimates, and

(h) actual project expenditure (if applicable); and

(3) as it has been reported that there has been a wave of students dropping out in this school year, whether SAC will, when considering applications from SSBs in future, take into account the overall change in the school-age population in Hong Kong; whether EDB has reviewed from time to time the school premises reprovisioning or redevelopment projects which are scheduled to commence, so as to avoid an oversupply of school places?

SECRETARY FOR EDUCATION (in Chinese): President, at present, there are about 900 public sector schools in the territory. Their premises covering various facilities were built in different periods in accordance with the building standards at the time of construction. Since 1997, the Government has designed and built new public sector schools in accordance with the prevailing standards, and has updated such standards from time to time in response to implementation of new policies and initiatives (such as the New Senior Secondary academic structure).

In response to Dr Priscilla LEUNG's questions on the reprovisioning and redevelopment of school premises, our reply is as follows:

(1) As at May 2021, about 200 public sector schools were built according to the prevailing standards. Based on the information from the Education Bureau ("EDB"), among the remaining approximately 700 public sector schools, over 130 ordinary primary schools and 10 ordinary secondary schools are with a site area of less than 3 000 sq m and premises over 30 years old. That said, most of these schools have enhanced their premises and facilities through the School Improvement Programme, minor improvement works projects and the annual Major Repairs exercise. In addition, based on school-based management, schools may alter the use of some school facilities to meet students' needs and suit the overall school development. All existing school premises in operation comply with the prevailing statutory requirements.

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In respect of special schools, since there are different types/scales of special schools with varying facilities to meet the diverse needs of their target students, the requirement on school site area is different. Unlike ordinary public sector primary and secondary schools, the Hong Kong Planning Standards and Guidelines have not set a reference site area for different types of special schools. Provision of facilities for newly built special schools (including boarding section) would be vetted on a case-by-case basis. EDB will regularly review the reprovisioning or redevelopment needs of special schools.

(2) Information on schools that have completed reprovisioning or redevelopment in the past five years (2016 to 2020) and those that are undergoing redevelopment or reprovisioning are at Annexes 1 and 2 respectively.

(3) Land resources are valuable, and the construction, redevelopment or reprovisioning of primary and secondary schools involves substantial public expenditure. EDB has all along been prudent in its development of public sector school building projects so as to meet overall and district-specific needs, ensure the steady development of the school sector, and at the same time enhance schools' learning and learning environment.

EDB has been closely monitoring the changes in student population. Generally speaking, it is not unusual to observe student mobility within or after the start of a school year. In addition, the development of the COVID-19 epidemic has also affected the number of newly-arrived students and cross-boundary students joining local schools. According to prevailing mechanism, EDB will make reference to the school-age population projections, which are compiled based on the population projections updated regularly by the Census and Statistics Department, and take into account the actual number of students at various levels as well as the latest demographic changes (including the number of newly-arrived children from the Mainland) in estimating the future demand for school places and related resources. EDB will consider factors such as the latest projections, other factors that may affect the demand for school places in certain districts, different options to 7106 LEGISLATIVE COUNCIL ― 9 June 2021

increase the supply of school places in particular districts, the prevailing education policies (including to enhance teaching and learning environment through reprovisioning) before deciding whether it is necessary to allocate school premises (including suitable vacant school premises) for setting up new school(s) or reprovisioning of existing school(s) or to carry out in-situ redevelopment. EDB will continue monitoring the projected supply of and demand for public sector school places in Hong Kong as a whole and in different districts, and will carefully consider all relevant factors to plan for school building projects as needed.

Most school premises built in recent years have been used for reprovisioning schools built in accordance with past standards, in order to provide them with a better learning and teaching environment. For in-situ redevelopment projects, when considering the suitability of an individual school for in-situ redevelopment, apart from the quality of education provided and sustainability of the school concerned, factors such as the size of the existing school, age and facilities of the school premises, technical feasibility of the redevelopment, availability of decanting premises, as well as acceptance, commitment and readiness of the school (including parents and teaching staff) shall also be taken into consideration.

In view of the latest downward trend of school-age population in the medium to long term, the needs of different districts vary. Apart from continuing to primarily consider reprovisioning use when launching new school premises for allocation in the future, EDB will also actively encourage school sponsoring bodies to apply for cross-district reprovisioning of public sector schools in areas with surplus school places, in order to meet the demand for school places in new development areas, as well as to improve the learning and teaching environment of public sector schools at the same time.

EDB will continue to maintain close communication with stakeholders, and encourage the sector to plan ahead to maintain the overall quality of education while ensuring sustainable development of the school sector as a whole and effective use of resources.

LEGISLATIVE COUNCIL ― 9 June 2021 7107

Annex 1

Information on schools that have completed reprovisioning or redevelopment in the past five years (2016-2020)

(2)

(1)

day prices)

- the No. - of - School Type School School Name School Year of Original Premises Project Nature

New School Premises Commissioning Year of of Year Commissioning School Sponsoring Body Sponsoring School Year of School Allocation School of Year (in money (in Financial Year of Funding Approval Funding of Year Financial Approved Project Estimate ($million) Completion

1. 2016 Tung Wah Aided Tung Wah 1961 Not 2012-2013 Redevelopment 323.7 Group of secondary Group of applicable Hospitals Wong school Hospitals Fut Nam College 2. 2016 P.L.K. Stanley Aided Po Leung Kuk 1971 2010 2013-2014 Reprovisioning 317.5 Ho Sau Nan primary Primary School school 3. 2016 S.K.H. Holy Aided Anglican (Hong 1965 2010 2013-2014 Reprovisioning 312.4 Cross Primary primary Kong) Primary School school Schools Council Limited 4. 2017 Tung Wah Aided Tung Wah 1984 2013 2014-2015 Reprovisioning 417.2 Group of primary Group of Hospitals Ma school Hospitals Kam Chan Memorial Primary School 5. 2018 St. Francis' Aided The Mother 1963 Not 2010-2011 Redevelopment 318.7 Canossian secondary Superioress Of applicable College school The Daughters Of Charity Of The Canossian Institute (Hong Kong) 6. 2018 P.L.K. Anita Aided Po Leung Kuk 1978 2013 2014-2015 Reprovisioning 484.0(3) L.L. Chan special (Centenary) school School 7108 LEGISLATIVE COUNCIL ― 9 June 2021

(2)

(1)

day prices)

- the No. - of - School Type School School Name School Year of Original Premises Project Nature

New School Premises Commissioning Year of of Year Commissioning School Sponsoring Body Sponsoring School Year of School Allocation School of Year (in money (in Financial Year of Funding Approval Funding of Year Financial Approved Project Estimate ($million) Completion

7. 2018 Chi Yun School Aided The Lotus 1962 2013 2014-2015 Reprovisioning special Association of school Hong Kong 8. 2018 C.C.C. Aided The Church of 1980 2014 2015-2016 Reprovisioning 256.6 Mongkok special Christ in China Church Kai Oi school Mongkok School Church Education Development Limited 9. 2018 North Point Aided The Methodist 1959 2012 2015-2016 Reprovisoning 660.0(3) Methodist primary Church, Hong (whole-day Primary School school Kong conversion) 10. 2019 Pun U Aided The Pun U 1971 2012 2015-2016 Reprovisioning Association primary District (whole-day Wah Yan school Association of conversion) Primary School Hong Kong 11. 2019 Ying Wa Girls' Aided The Hong Kong 1953 Not 2012-2013 Redevelopment 653.4 School secondary Council of the applicable and school Church of 2013-2014(4) Christ in China 12. 2019 Cognitio Aided Cognitio 1970 2013 2016-2017 Reprovisioning 446.7 College secondary College (Kowloon) school Foundation Limited 13. 2019 Tung Wan Mok Aided The Hong Kong 1960 2014 2016-2017 Reprovisioning 408.5 Law Shui Wah special Student Aid School school Society Limited 14. 2019 S.K.H. Aided Anglican (Hong 1969 2015 2016-2017 Reprovisioning 351.1 St. John's Tsang primary Kong) Primary Shiu Tim school Schools Council Primary School Limited

LEGISLATIVE COUNCIL ― 9 June 2021 7109

Notes:

(1) Applications for in-situ redevelopment by schools do not involve allocation of school premises. They are not processed under the School Allocation Exercise.

(2) As the account of the school building project is being finalized, we are unable to provide the actual construction cost.

(3) As the construction contract covered more than one school, and the schools share some facilities upon commissioning, we are unable to provide the individual approved project estimate for each of the school building projects.

(4) The relevant construction cost was first approved in 2012-2013, and was subsequently approved for increase in 2013-2014 due to higher-than-expected tender prices and increase in price adjustment.

Annex 2

Information on schools undergoing reprovisioning or redevelopment

(1)

day prices) -

the - No. of - School Type School School Name School Project Nature New School Premises School Sponsoring Body Sponsoring School Year of School Allocation School of Year (at money (at Expected Commissioning Year of of Year Commissioning Expected Financial Year of Funding Approval Funding of Year Financial Approved Project Estimate ($million) Completion Year of Original Premises Original of Year Completion

1. 2021 St. Paul's Aided The Mother 1907 Not 2016-2017 Partial 467.8 Primary primary Superior of applicable Redevelopment/ Catholic school the Sœurs de Extension School Saint Paul de Chartres (Hong Kong) 2. 2021 Pak Tin Aided The Catholic 1973 2015 2017-2018 Reprovisioning 345.5 Catholic primary Diocese of Primary school Hong Kong School 3. 2021 Hong Chi Aided Hong Chi 1960s Not 2017-2018 Reprovisioning 170.2 Pinehill special Association (boarding applicable (boarding No. 2 school section) section) School 4. 2022 Island Private The English 1974 Not 2017-2018 Redevelopment 536.3 School(2) secondary Schools applicable school Foundation 7110 LEGISLATIVE COUNCIL ― 9 June 2021

(1)

day prices) -

the - No. of - School Type School School Name School Project Nature New School Premises School Sponsoring Body Sponsoring School Year of School Allocation School of Year (at money (at Expected Commissioning Year of of Year Commissioning Expected Financial Year of Funding Approval Funding of Year Financial Approved Project Estimate ($million) Completion Year of Original Premises Original of Year Completion

5. 2022 Maryknoll Aided Maryknoll 1966 2015 2019-2020 Reprovisioning 434.8 Secondary secondary Schools School school Limited 6. 2024 Hong Kong Aided The Hong 1978 Not 2020-2021 Partial 285.3 Chinese secondary Kong applicable Redevelopment Women's school Chinese Club Women's College Club 7. (pending) C.C.C. Aided The Hong 1960 2018 (3) Reprovisioning 392.8 Chuen Yuen primary Kong (estimate) First school Council of Primary the Church of School Christ in China 8. (pending) Hong Kong Aided The Hong 1969 2018 (3) Reprovisioning 369.9 Taoist primary Kong Taoist (estimate) Association school Association Wun Tsuen School 9. (pending) Po Leung Aided Po Leung 1980 2019 (3) Reprovisioning 365.4 Kuk Siu primary Kuk (estimate) Hon Sum school Primary School 10 (pending) Wa Ying Aided The 1971 Not (3) Redevelopment 473.3 College secondary Methodist applicable (estimate) school Church, Hong Kong

Notes:

(1) Applications for in-situ redevelopment by schools do not involve allocation of school premises. They are not processed under the School Allocation Exercise.

LEGISLATIVE COUNCIL ― 9 June 2021 7111

(2) The Government in the past provided capital grant to the English Schools Foundation ("ESF") at an amount equivalent to the cost of constructing a standard-design public sector school for the same student population. From 2016-2017 school years onwards, the Government has been phasing out its annual recurrent subvention to ESF. The redevelopment of Island School is the last project in which the Government provided capital grant to ESF.

(3) The school building project is pending funding approval from the Finance Committee of the Legislative Council.

Traffic management and law enforcement

15. MR WILSON OR (in Chinese): President, it has been reported that the situation of illegal parking has become increasingly serious in recent years, and one of the causes for this is the shortage of car parking spaces. Moreover, this Council passed in November last year a Member's motion not intended to have legislative effect, urging the Government to take measures to alleviate road traffic congestion, including increasing the supply of commercial vehicle parking spaces and public car parking spaces. In this connection, will the Government inform this Council:

(1) as the Transport Department has indicated that the newly revised standards for parking facilities in the Hong Kong Planning Standards and Guidelines will be promulgated immediately after consultation with the relevant stakeholders, of the promulgation date of such standards;

(2) given that the Government plans to develop a new Traffic e-Enforcement System to reduce traffic accidents and illegal parking through efficient traffic law enforcement actions, thereby alleviating the traffic congestion caused by such situations, of the expected effectiveness of the said system in quantifiable terms;

(3) given that the Police have, since September last year, implemented traffic management measures in the Kwun Tong Business Area to tackle the problems of traffic congestion black spots and illegal parking in the area, whether it has evaluated if such measures have achieved notable results; if it has evaluated and the outcome is in the affirmative, whether it will extend such measures to other districts where the problem of illegal parking is serious; and

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(4) apart from the measures mentioned in (2) and (3), of other practicable measures in place to solve the traffic congestion problem caused by illegal parking and shortage of car parking spaces?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, the Government's existing policy on the provision of car parking spaces is to accord priority to considering and meeting the parking demand of commercial vehicles ("CVs"), and to provide an appropriate number of private car ("PC") parking spaces if the overall development permits, but at the same time not to encourage frequent users of public transport to opt for PCs in lieu of public transport, so as to avoid aggravating the road traffic. After consulting the Hong Kong Police Force ("the Police") and the Transport Department ("TD"), my reply to the various parts of Mr Wilson OR's question is as follows:

(1) TD has substantially completed the review of the standards for parking facilities specified in the Hong Kong Planning Standards and Guidelines ("HKPSG"), and consulted relevant stakeholders. The Government will promulgate revised parking standards after duly considering the views gathered. The revised parking standards will increase the number of PC parking spaces in private and public housing developments and the number of CV parking spaces in public housing in future.

(2) At present, the workflow of traffic enforcement is mainly operated manually. Since March 2020, the Police has progressively commenced an e-Ticketing Pilot Scheme ("the Pilot Scheme"). Under the Pilot Scheme, frontline law enforcement officers use their mobile devices to retrieve or input data on illegally parked vehicles and offending drivers and instantly print out the fixed penalty notices ("FPNs").

Electronic traffic enforcement can improve the current workflow which will in turn enhance the overall enforcement accuracy and efficiency. The Pilot Scheme has demonstrated that issuing FPNs by electronic means can significantly reduce the number of FPNs withdrawn due to human errors and shorten the processing time of FPN issuance by about 15 minutes. By taking more efficient and prudent traffic enforcement actions, it may more effectively deter LEGISLATIVE COUNCIL ― 9 June 2021 7113

vehicle owners and drivers from committing traffic offences and foster good driving attitude, which is conducive to reducing traffic accidents and illegal parking, thereby alleviating traffic congestion in the long run.

Given the effectiveness of the Pilot Scheme, the Police has proposed to develop a new Traffic e-Enforcement System for processing the FPNs and summons applications relating to traffic contraventions by electronic means. The system will also manage all traffic enforcement related information and data with a view to facilitating traffic management work of the Police.

The Government consulted the Legislative Council Panel on Transport on the proposed system in April 2021, and will seek funding approval from the Finance Committee of the Legislative Council within this legislative year for developing the proposed system.

(3) The Police has been very concerned about the traffic conditions in the Kwun Tong Business Area ("KTBA") and has implemented a host of traffic management measures in that area during weekdays since September 2020. These include deployment of police officers to direct traffic at the dominant entrances, as well as exits of KTBA (viz. Hoi Yuen Road roundabout, Lai Yip Street/Wai Yip Street junction and Chong Yip Street/How Ming Street junction) and to advise and warn the drivers not to stop, park and pick up/drop off illegally. In November 2020, the Kwun Tong Police District set up the District Traffic Enforcement Team dedicated to handling of traffic complaints and scenes of traffic accidents in the district. Regarding the enforcement against illegal parking, the Police is taking actions against illegally parked vehicles at irregular hours on a daily basis to enhance the deterrent effect. For illegal parking that causes obstruction to traffic or endangers other road users, the Police will issue multiple FPNs for continuous illegal parking and tow away the vehicles concerned, in order to achieve greater deterrent effect. In the first quarter of 2021, the Police issued a total of about 32 000 FPNs against illegal parking in the Kwun Tong Police District, representing an increase of nearly 50% as compared with about 22 000 FPNs issued in the same period in 2020. The Police stated that the traffic management measures implemented so far have 7114 LEGISLATIVE COUNCIL ― 9 June 2021

been effective, and have received support from the public and stakeholders in the district. In the first quarter of 2021, the number of traffic complaints concerning the district received by the Kwun Tong Police District is 10% less as compared with that of the same period last year. The Police will continue with the efforts in order to further improve the traffic conditions during peak hours in the area, and will keep on deploying resources flexibly according to the actual traffic conditions in various districts, as well as taking targeted enforcement actions during peak hours, with a view to changing the behaviour of drivers that contravenes the law.

(4) The Government adopts a multi-pronged strategy to alleviate road traffic congestion, including efforts to improve transport infrastructure, expand and enhance public transportation system, as well as managing the use of road. In addition to the aforementioned measures, the Government has all along been actively pursuing a host of short- and medium- to long-term measures to increase car parking spaces as appropriate, which include:

(a) designating suitable on-street locations as night-time parking spaces for CVs;

(b) encouraging schools to allow student service vehicles to park within school premises after school hours;

(c) requiring provision of parking spaces at the higher end of the current parking standards specified in HKPSG for all new developments, prior to the promulgation of revised standards under HKPSG; and

(d) taking forward pilot projects on automated parking systems, and providing new public car parks in suitable "Government, Institution or Community" facilities and public open space projects following the principle of "single site, multiple uses". Subject to technical feasibility and timely funding approval, about 20 suitable works projects are expected to provide a total of around 5 100 public parking spaces in batches and are expected to complete gradually from 2024-2025 onwards.

LEGISLATIVE COUNCIL ― 9 June 2021 7115

TD and the Police have all along been working closely with the Road Safety Council on using various suitable ways and channels, such as producing publicity video clips, leaflets as well as Road Safety Bulletin, and making use of social media platforms and through organizing events, to call on drivers to comply with road safety regulations, thereby alleviating the problem of illegal parking and traffic obstruction. The Government will continue to step up related efforts in publicity and education.

Implementation of summer time

16. MR PAUL TSE (in Chinese): President, summer time was implemented in Hong Kong on certain days in the summers of 1941, 1946 to 1976 and 1979, during which the clock was set forward by one hour. Some members of the public have suggested that summer time be implemented again in Hong Kong to encourage members of the public to go to bed early and rise early, thereby making optimal use of daylight and reducing the use of lighting facilities. They have pointed out that the implementation of summer time may induce members of the public to take advantage of the cooler time in the early morning for getting to work or going to school; besides, the longer duration between the time when members of the public get off work and sunset will facilitate them to conduct outdoor activities after work, which is conducive to increasing the customer flow for the retail outlets and eateries at night, thereby fuelling the early recovery of the economy from the epidemic. In this connection, will the Government inform this Council:

(1) given that the economy of Hong Kong has been hit consecutively by acts of serious violence and the Coronavirus Disease 2019 epidemic in recent years, and that under the impact of global warming, Hong Kong recorded last month the highest temperature in May since 1963, whether the Government will explore from the perspectives of energy-saving, optimal use of daylight, facilitating economic recovery, etc. to see if it is now more imperative for Hong Kong to implement summer time as compared to the situation in 1979 or before;

7116 LEGISLATIVE COUNCIL ― 9 June 2021

(2) whether it will estimate the amount of energy to be saved and the benefits to be brought to the overall economy of Hong Kong by the implementation of summer time; and

(3) if it will conduct a public consultation on whether the implementation of summer time can cater better to the daily living, travelling as well as work and rest of members of the public and to the operation of commercial organizations?

CHIEF SECRETARY FOR ADMINISTRATION (in Chinese): President, the summer time arrangement is generally a practice of setting the clock forward by one hour to take advantage of the natural phenomenon of the sun rising earlier in summer. It is usually implemented in regions at higher latitudes where the differences in the duration of daylight between winter and summer are more noticeable. As Hong Kong is located in a region of low latitude, there is no significant variation in its duration of daytime between winter and summer. Also, there is not much change in the temperature before and after sunrises (i.e. from 5:00 am to 8:00 am) in Hong Kong.

In response to Mr Paul TSE's questions, the reply is as follows:

The implementation of summer time system has a far-reaching impact on all walks of life and should be considered in a holistic manner.

With respect to the use of energy, as people generally get to work and go to school during daytime, setting the clock forward by one hour cannot significantly reduce energy consumption in indoor lighting and air-conditioning. Besides, working hours will not be shortened in spite of the implementation of summer time. The impact on building energy consumption will accordingly not be significant.

In terms of economic implications, the implementation of summer time will lead to a time gap between the Mainland and Hong Kong in part of the year, which will not be conducive to the economic and trade exchanges between the two places. As for local business and trade activities, there is so far no specific assessment on the impact of summer time on the industrial and trade sectors in Hong Kong. Overall speaking, introducing summer time may not necessarily benefit the economic development of Hong Kong.

LEGISLATIVE COUNCIL ― 9 June 2021 7117

Under a summer time system, members of the public have to adjust to time change at least twice a year. This will require corresponding adjustments to their lifestyle and daily routine. These will involve social costs but will not bring clear benefits to society.

The implementation of summer time will affect the operations of every sector in society and should be considered carefully. Given that there is currently no evidence to show that introducing summer time will bring clear benefits to Hong Kong, the Government has no intention of conducting public consultation on the matter.

Transfer of under-occupation public rental housing households

17. MR TONY TSE (in Chinese): President, at present, the Hong Kong Housing Authority ("HA") allocates public rental housing ("PRH") units based on the standard of an internal floor area ("living floor area") of not less than 7 square metres ("m2") per person on average. It is learnt that in recent years, the numbers of occupants in quite a number of PRH units have decreased continuously due to the family members of the households concerned moving out or passing away, resulting in a continued increase in the average per-person living floor area of PRH units (which has risen to 13.4 m2 as at the end of March this year). Furthermore, HA classifies those PRH households with a living floor area exceeding a specified level (depending on the household size) as "Under-occupation households" ("UO households") and those PRH households with a living floor area exceeding an even higher level (excluding those households with family members who are disabled or have reached the age of 60) as "Prioritized under-occupation households" ("PUO households"). In this connection, will the Government inform this Council:

(1) of the following statistics on (a) UO households and (b) PUO households respectively in each of the past five years:

(i) the number of households (with a breakdown by household size),

(ii) the total living floor area beyond the standard and the number of persons that can be accommodated in such an area, calculated on the basis of 7 m2 per person,

7118 LEGISLATIVE COUNCIL ― 9 June 2021

(iii) the living floor area beyond the standard per household on average, and

(iv) the average number of years for which such households have been classified as UO/PUO households;

(2) of the details of the existing policies on the transfer of UO and PUO households, including:

(i) the specific transfer arrangements,

(ii) the incentives for transfer provided,

(iii) the consequences for the households' refusal to transfer (if any),

(iv) the implementation situation of the policies in the past five years, and

(v) the main reasons for some households' refusal to transfer;

(3) given that HA launched a trial scheme in 2019 to allow UO households whose members are all aged 70 or above ("UO70+ households") to enjoy lifetime full rent exemption upon their transfer, as well as regularized the scheme and relaxed the application restrictions at the end of last year, of the latest implementation situation and effectiveness of the scheme; and

(4) whether, in order to optimize the use of the existing PRH resources and hence expedite the allocation of PRH units to PRH applicants, the Government will consider enhancing the existing policies on and measures for the transfer of UO, PUO and UO70+ households; if so, whether the measures under consideration will include:

(i) adjusting the definitions of the three types of households, so that more households may enjoy priority or preferential arrangements when they transfer,

LEGISLATIVE COUNCIL ― 9 June 2021 7119

(ii) boosting the incentives for transfer, such as providing a removal allowance of a higher amount and rental concessions to eligible households,

(iii) raising the penalties that can be imposed on PUO households for refusal to transfer without reasonable grounds, and

(iv) removing the locality restrictions on transfer, etc. so that more households will accept transfer offers and will accept transfer offers earlier?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, my reply to the question raised by Mr Tony TSE is as follows:

(1) and (2)

Under the prevailing policy of the Hong Kong Housing Authority ("HA"), public rental housing ("PRH") units will be allocated based on household size according to the established allocation standards. As a result of some family members moving out of the flat or have passed away, the living space of the remaining members of a PRH household may exceed the established allocation standards. Under the existing tenancy agreement, these under-occupation ("UO") households have to move to a PRH unit of an appropriate size as determined by HA.

HA has adopted a phased approach to handle UO cases in PRH with priorities given to Prioritised Under-occupation ("PUO") households, i.e. households living in units with an internal floor area ("IFA") exceeding the prescribed thresholds and without disabled members or elderly members aged 60 or above. Non-PUO households(1) are placed at the end of the UO list and accorded with lower handling priority. UO households with elderly members aged 70 or above or disabled members are excluded from the UO list and are not required to move out of their flats. The current UO standards and PUO thresholds are set out at Table 1.

(1) Non-PUO households include UO households with living space not exceeding the PUO thresholds and UO households with elderly members aged 60 or above but below 70. 7120 LEGISLATIVE COUNCIL ― 9 June 2021

In the past five years, the statistics of HA's PRH UO households and PUO households are set out at Table 2 and Table 3 respectively. HA does not maintain a central record of other statistical data requested in the question.

In respect of transfer arrangements, in general a maximum of three housing offers will be made to all HA's PRH UO households and they will be offered Domestic Removal Allowance ("DRA"). Subject to the availability of resources, they may be offered the opportunity to transfer to units in newly-completed estates. In respect of PUO households, HA will allow a standard stayput period of one year on grounds of decease of family member. HA will adopt a reasonable and considerate approach based on individual situation when considering the stayput request of PUO households who are waiting for family reunion. Additional incentive in the form of rent waiver up to three months will also be provided to PUO households.

There were cases in the past where PUO households refused to move out. The reasons which they put forward included requesting the allocation of larger units and specific estates, reluctance to move out due to familiarity with the present living environment, traffic inconvenience in the allocated estates, etc. Notices-to-Quit will be issued by HA to terminate the tenancies of PUO households who refuse all housing offers without justified reasons.

In the past five years, HA resolved an average of about 2 200 PUO cases each year, while the number of new cases accorded with priority was about 2 100 each year.

(3) In December 2019, HA launched the Trial Scheme on Full Rent Exemption for Elderly Under-occupation Households ("the Scheme"), whereby UO households with all family members aged 70 or above are allowed to enjoy full rent exemption for life upon their transfer to suitably-sized units. Eligible households will be given a maximum of three housing offers of new or refurbished units in the residing estate or an estate in the same District Council ("DC") district. They will also be provided with DRA.

LEGISLATIVE COUNCIL ― 9 June 2021 7121

The Scheme can effectively make use of existing public housing resources to increase the supply of larger units for households of larger family size who are awaiting PRH allocation. In view of the favourable response, HA regularized the Scheme in December 2020; extended its coverage to elderly households with family members all aged 70 or above living in Housing for Senior Citizens of Type I Design and non-self-contained Converted-One-Person units; and widened the district choice from the same DC district to the same PRH Application District (i.e. Urban, Extended Urban (including Tung Chung), New Territories and Islands (excluding Tung Chung)).

Up to end April 2021, HA has approved about 340 applications under the Scheme. Among them, 72 households have accepted allocation.

(4) In December 2020, HA conducted a review of the UO Policy. Considering the increasing demand for PRH and the limited supply of units to be allocated to UO households, HA decided to continue the existing classification and standards of UO households, as well as the arrangements of priority for action and other incentives. HA will conduct a review of the UO Policy and the Scheme in 2023 in one go.

Table 1: HA's PRH UO Standards and PUO Thresholds

UO Standards PUO Thresholds Household Size IFA IFA 1-person >25 sq m >30 sq m 2-person >35 sq m >42 sq m 3-person >44 sq m >53 sq m 4-person >56 sq m >67 sq m 5-person >62 sq m >74 sq m 6-person >71 sq m >85 sq m

Table 2: Statistics on HA's PRH UO Households

Statistical Month Classification 3/2017 3/2018 3/2019 3/2020 3/2021 PUO Households 5 570 5 900 5 670 5 370 5 320 Total number of UO HouseholdsNote 63 760 67 840 72 300 75 700 79 380

7122 LEGISLATIVE COUNCIL ― 9 June 2021

Note:

The total number included PUO households, non-PUO households and Excluded UO ("EUO") households. The number of cases of non-PUO household in the past five years was about 25 150, 26 600, 28 280, 29 180 and 30 170; while the number of cases of EUO households was about 33 040, 35 340, 38 350, 41 150 and 43 890.

Table 3: Statistics on HA's PRH PUO Households

Number of Average Year as Statistical Month Number of Persons Households PUO Households 3/2017 5 570 7 700 2.00 3/2018 5 900 7 950 2.18 3/2019 5 670 7 480 2.25 3/2020 5 370 7 000 2.28 3/2021 5 320 6 840 2.29

Mutual recognition of vaccination records

18. MS ALICE MAK (in Chinese): President, some members of the public have indicated that they have received vaccination against the Coronavirus Disease 2019, with a view to their travelling between Hong Kong and the Mainland, when traveller clearance between the two places fully resumes, without being required to undergo compulsory quarantine. Nevertheless, as the types of vaccines administered to the people of the two places and the vaccination records held by them as proof are different, such members of the public are worried that in the absence of a mechanism for mutual recognition of the vaccination records of the two places, it will be difficult for the people of both places to resume normal travel between the two places. In this connection, will the Government inform this Council:

(1) whether it has discussed with the relevant Mainland departments the establishment of a mechanism for mutual recognition of the vaccination records of the two places, so as to prepare for the full resumption of traveller clearance between the two places; if so, of the details; if not, the reasons for that;

(2) whether it has discussed with the relevant Mainland departments the conditions for the full resumption of traveller clearance (e.g. the types of vaccines recognized, and whether inbound travellers will be LEGISLATIVE COUNCIL ― 9 June 2021 7123

required to undergo antibody tests) to let members of the public have a clear target, so as to increase the incentives for them to receive vaccination; and

(3) whether it will add a new function to the electronic vaccination records to allow inclusion of records of non-locally received vaccinations to facilitate holders of the vaccination records to prove that they have completed vaccination?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, in consultation with the Constitutional and Mainland Affairs Bureau, my reply to the various parts of the question raised by Ms Alice MAK is as follows:

The Hong Kong Special Administrative Region Government has been communicating and liaising closely with the relevant authorities in the Mainland and Macao Special Administrative Region Government on disease prevention and control measures. We are actively exploring the resumption of normal cross-boundary activities amongst residents of the three places in a gradual and orderly manner when the epidemic situation in the three places is under control and without increasing public health risks.

Currently, non-fully vaccinated persons arriving at Hong Kong who have stayed on the Mainland and Macao, whether arriving in Hong Kong via the airport or land boundary control points, are subject to 14-day compulsory quarantine at home if they did not return under the Return2hk Scheme, and five compulsory tests after arrival at Hong Kong. As regards fully vaccinated persons, the compulsory quarantine period is shortened to seven days, with a subsequent seven-day self-monitoring period and three compulsory tests after arrival at Hong Kong.

Fully vaccinated persons means persons who have received the necessary doses as stipulated in guidelines of a COVID-19 vaccination course 14 days prior to their arrival at Hong Kong. For persons arriving at Hong Kong whose vaccines were administered outside Hong Kong, apart from the COVID-19 vaccines already recognized for use in Hong Kong, vaccines on the World Health Organization ("WHO") Emergency Use Listing or Pre-qualification lists, as well as vaccines recognized for use by Stringent Regulatory Authorities as designated 7124 LEGISLATIVE COUNCIL ― 9 June 2021 by WHO or the National Medical Products Administration would also be accepted. The Government has uploaded the list of relevant vaccines to the COVID-19 thematic website, and will update the list from time to time.

For those who have completed vaccination outside of Hong Kong with vaccines on the aforementioned list, currently they can present their vaccination records issued by relevant local authorities and complete a declaration form to meet the requirements under the vaccine bubble. We are considering ways to further facilitate Hong Kong residents to make use of their non-local vaccination records.

Applications to the Hong Kong Arts Development Council for grants

19. MR HOLDEN CHOW (in Chinese): President, it has been reported that an arts group received in the past three years grants from the Hong Kong Arts Development Council ("HKADC") totalling $2.78 million, some of which was used in the production of a film "Inside the Red Brick Wall". There are comments querying that as the said film advocates hatred, violence and anti-government sentiments, HKADC should not have sponsored the film's production with public money. In this connection, will the Government inform this Council:

(1) whether it knows the number of films sponsored by HKADC in each of the past five years, and set out in a table the amount of grant received by each film;

(2) whether it knows the criteria adopted by HKADC for vetting and approving grant applications and deciding the amount of the grant; and

(3) of the new measures in place to spur HKADC to vet and approve grant applications more stringently, so as to prevent the situation of public money being used to sponsor arts groups in producing artistic work that advocates hatred and violence, or violates the National Security Law for Hong Kong?

LEGISLATIVE COUNCIL ― 9 June 2021 7125

SECRETARY FOR HOME AFFAIRS (in Chinese): President, having consulted the Hong Kong Arts Development Council ("HKADC"), my reply to the various parts of the Member's question is set out as follows:

HKADC operates funding schemes of different nature to support local arts groups and arts practitioners to pursue and implement creative endeavours to nurture artistic excellence.

There are two main types of grants, i.e. Year Grant and Project Grant. The former is provided on organization basis and provides greater room for creativity (including project format, content, etc.) during the grant period. The latter is provided on project basis which requires the submission of project details at the time of application. In 2020-2021, HKADC funded 60 arts groups (including five film and media arts groups) under Year Grant (including the Literary Arts Platform Scheme) and 267 projects (including nine film projects) under Project Grant, involving a funding allocation totalling $102,666,400.

(1) Details of arts groups and artists who received grants from HKADC under the Project Grant to implement film projects, and details of film and media arts groups who received Year Grant from HKADC in the past five years are set out in Annexes 1 and 2 respectively. HKADC has not kept information on the breakdown of expenditure on individual film projects by Year Grant recipients.

(2) Since 1999, HKADC has put in place an approval mechanism to process grant applications by "peer assessment". Through open recruitment and selection, it has appointed arts professionals and veterans as examiners to assist in assessing applications for various grants and effectiveness of funded programmes and make funding recommendations for endorsement of HKADC. The "peer assessment" mechanism and the funding mechanism aim to achieve the following objectives:

(a) minimizing the chance of conflict of interests;

(b) enhancing professionalism of "peer assessment"; and

(c) by having the examiners' funding recommendations endorsed by the committee/council, ensuring that HKADC members exercise their monitoring power and shoulder the final gate-keeping responsibility.

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According to its established procedures, HKADC regularly recruits and selects, through voluntary nominations and open invitations in newspapers, arts practitioners and professionals from various arts sectors to serve as examiners for various assessment exercises. Currently, HKADC has 103 arts consultants and 602 examiners. HKADC reviews the implementation of the examiners' system from time to time to ensure the quality of examiners and to refine the mechanism. HKADC will review the performance of examiners on a regular basis, for example, by taking into account their past attendance records and records of assessments as one of the references in considering service extension.

HKADC has set up approval mechanisms to process applications of Year Grant and Project Grant respectively to ensure that assessments are conducted professionally and impartially and that the approvals are given stringently. The assessment panels are composed of examiners and HKADC members of the relevant art form groups with a system of declaration of interests put in place. HKADC will also invite external experts to assist in the adjudication if necessary. In order to ensure professionalism and credibility of assessment, examiners are selected for appointment to assessment panels based on their professional backgrounds and qualifications and are decided by drawing lots.

(3) Ying E Chi Limited ("Ying E Chi") was one of the arts groups receiving Year Grant in 2020-2021. The grant amount was $892,400, which was about 0.9% of the total grants approved under HKADC's Year Grant and Project Grant during the year. HKADC did not fund the production of Inside the Red Brick Wall by Ying E Chi. It was one of the films arranged for screening in the Hong Kong Independent Film Festival organized by Ying E Chi. HKADC has required all arts groups receiving grants, including Year Grant and Project Grant, to undertake that they will fulfil the terms of the contract entered into with HKADC, including compliance with the laws of Hong Kong during the grant period. HKADC also issues letters from time to time to remind all arts groups receiving Year Grant to comply with the laws of Hong Kong and other contract terms. The last occasion when HKADC issued such a letter was in January 2021. If arts groups receiving grants LEGISLATIVE COUNCIL ― 9 June 2021 7127

breach contract terms in any respect as confirmed by law, including advocating the independence of Hong Kong and overthrowing the Government under the current laws of Hong Kong, HKADC may exercise its rights to postpone, adjust or suspend grant disbursement for the funded arts groups for the grant year.

In addition, HKADC will examine the funding contracts to be entered into with grantees to ensure that their content complies with the requirements of the latest legislations. HKADC will also organize talks to provide grantees with information relating to the requirements of the National Security Law and other new legislations so as to enhance their understanding of the relevant laws.

Annex 1

Arts Groups and Artists Receiving Grants from HKADC under Project Grant to Implement Film Projects (2016-2017 to 2020-2021)

Amount Arts groups/artists of grants Film project funded receiving grants approved ($) 2016-2017 Kong Khong Chang The River 160,000 Lau Kin Lun The CUBE Phantom, a film and media arts 200,025 production Hung Kwong Yin Djembe in the 13 Streets 88,200 Chui Chi Yin Inhuman, a documentary project 60,000 Chan Tze Woon 14/67 193,500 Ng Pui Shan The Vanishing Time 162,500 Chi Gui Hwa An Endless Music Journey with Rebecca Pan 325,000 Li Sum Yuet The Goose-pork Rice for SCA 41,200 Wong King Fai Dance under Umbrella: Mui Cheuk Yin 254,500 2017-2018 Kong King Chu Walk on with Franco Mella 270,000 Cheuk Cheung Floating 425,000 7128 LEGISLATIVE COUNCIL ― 9 June 2021

Amount Arts groups/artists of grants Film project funded receiving grants approved ($) Chan Ho Lun The Storyteller 357,000 Lo Chi Ming The Pang-jai Story 60,000 Wong Lai Ming Shit Happens 182,900 Tsang Yuk Hei Peter, a documentary project 60,000 2018-2019 Chan Kam Lok The Unanswered Question 460,000 Relentless Melt Serial Parallels 72,700 Wong Fei Pang What is Your First Meal in Hong Kong? 233,200 Lau Kok Rui Being Mother 140,200 Wong Chun Long A Little Box 107,600 Cheng Oi Yue My Home-coming 226,700 Ieong Kin Pong Laughing Man 60,000 Wan King Fai Comrade on the Road 110,000 Lui Yee Pan, Ian The Hongkongers 60,000 Lee Pak Yee The Night I Read 60,000 2019-2020 Mak Hoi Shan, Anson Fear(less) and Dear 390,000 THY ASIA LIMITED Deep Memory Pier 83,500 Wong Yik Fung Modern Cinderella 141,800 Fu Wing Yan, Lilian A Cat from Room 902 170,300 Cheung Cheuk Ho Let the Chips Fall, a deaf film 60,000 Relentless Melt Parallaxity 87,500 Li Man Chung, Mark Homes under Five Rings 200,600 Yu Ka Ho, Albert The Building: A VR Animation 163,700 Electric Diamond SEMI, an independent film production 433,300 Production Limited project Low Kin Hung, Alvin Summer in the Light, Winter in the Shade 60,000 Tse Hei-long 演 60,000 2020-2021 Hong Kong Harry Odell: Hong Kong's First Impresario & 80,000 Community Heritage His Legacy Foundation Limited Wong Sze Kit, HONGKONGERS 281,300 Lawrence Philip LEGISLATIVE COUNCIL ― 9 June 2021 7129

Amount Arts groups/artists of grants Film project funded receiving grants approved ($) Tsang Tsui Shan Flowing Stories 2.0 396,900 Chan Sheung Shing Painting Only 413,000 Cheng Ka Shing Chef the Bear, a short animation production 189,800 Ren Xia We 295,600 Thousand Sails Hong Kong Mixtape 393,300 Pictures Limited Kwok Chung Yee Cuddle in White Noise 60,000 Wong Cheuk Man The Night Shift 60,000

Annex 2

Film and Media Arts Groups Receiving Year Grant(1) from HKADC (2016-2017 to 2020-2021)

Arts groups receiving Amount of grants Details of grant grants approved ($) 2016-2017 Visible Record Limited One-year grant 643,500 Ying E Chi Limited Two-year grant: 2nd year 674,200 funding Videotage Limited Two-year grant: 2nd year 1,303,200 funding v-artivist Company Three-year grant: 1st year 1,245,400 Limited funding Hong Kong Film Critics Three-year grant: 1st year 1,033,700 Society Limited funding 2017-2018 Videotage Limited Three-year grant: 1st year 1,303,200+160,000 funding & Extra activities grant =1,463,200 Ying E Chi Limited Two-year grant: 1st year funding 674,200+155,000 & Extra activities grant =829,200 v-artivist Company Three-year grant: 2nd year 1,245,400 Limited funding 7130 LEGISLATIVE COUNCIL ― 9 June 2021

Arts groups receiving Amount of grants Details of grant grants approved ($) Hong Kong Film Critics Three-year grant: 2nd year 1,033,700+70,000 Society Limited funding & Extra activities grant =1,103,700 Visible Record Limited One-year grant & Extra 643,500+70,000 activities grant =713,500 2018-2019 Videotage Limited Three-year grant: 2nd year 1,393,100 funding Visible Record Limited Two-year grant: 1st year funding 687,900+142,700 & Extra activities grant =830,600 Ying E Chi Limited Two-year grant: 2nd year 720,700+166,300 funding & Extra activities grant =887,000 v-artivist Company Three-year grant: 3rd year 1,286,900 Limited funding Hong Kong Film Critics Three-year grant: 3rd year 1,105,000+117,400 Society Limited funding & Extra activities grant =1,222,400 2019-2020 Hong Kong Film Critics Three-year grant: 1st year 1,177,900 Society Limited funding Videotage Limited Three-year grant: 3rd year 1,485,000 funding v-artivist Company Three-year grant: 1st year 1,371,800 Limited funding Visible Record Limited Two-year grant: 2nd year 733,300+234,300 funding & Extra activities grant =967,600 Ying E Chi Limited Three-year Grant: 1st year 768,200+365,700 funding & Extra activities grant =1,133,900 2020-2021 v-artivist Company Three-year grant: 2nd year 1,371,800 Limited funding Hong Kong Film Critics Three-year grant: 2nd year 1,177,900 Society Limited funding Ying E Chi Limited Three-year grant: 2nd year 768,200 funding Videotage Limited Three-year grant: 1st year 1,485,000+249,500 funding & Extra activities grant =1,734,500 LEGISLATIVE COUNCIL ― 9 June 2021 7131

Arts groups receiving Amount of grants Details of grant grants approved ($) Visible Record Limited Three-year grant: 1st year 733,300+390,400 funding & Extra activities grant =1,123,700

Note:

(1) Year Grant is available for application by arts groups under two parts, with the first part being Operational Expenses Grant and the second part being Extra Activities Grant. Applicants for Operational Expenses Grant may, if necessary, also apply for Extra Activities Grant to meet staff remuneration, production cost and other related costs of individual extra activities approved by HKADC.

MTR fare adjustments

20. MR CHAN HAN-PAN (in Chinese): President, currently, the MTR Corporation Limited ("MTRCL") makes its annual fare adjustments in accordance with the Fare Adjustment Mechanism ("FAM"). After a joint review of FAM with the Government in 2017, MTRCL agreed to increase the fare concessions to be provided under the Profit Sharing Mechanism ("PSM"), with the amounts of the fund to be set aside for concessions being prescribed in a pre-determined tiered table of underlying business profits. In this connection, will the Government inform this Council:

(1) whether it will consider requesting MTRCL to, apart from providing fare concessions in accordance with PSM, directly set aside a certain percentage of its property and rental revenue for the provision of additional fare concessions; if so, of the details; if not, the reasons for that;

(2) whether it has plans to propose, in the next review of FAM to be conducted jointly with MTRCL, the incorporation of "the public's affordability of transport fares" and "MTRCL's profitability" as factors for consideration under FAM; if so, of the details; if not, the reasons for that; and

(3) given that the handling of the fare increases accumulated over the last two years in accordance with FAM (i.e. 1.58%) that should be recouped will be deferred to next year, whether the Government has 7132 LEGISLATIVE COUNCIL ― 9 June 2021

plans to propose, in the next review of FAM to be conducted jointly with MTRCL, the inclusion in FAM of a time limit for recouping fare increases; if so, of the details; if not, the reasons for that?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, the current Fare Adjustment Mechanism ("FAM") of the MTR Corporation Limited ("MTRCL") has been adopted since the rail merger in 2007, replacing the fare autonomy MTRCL then enjoyed. FAM is an objective and transparent mechanism, using a direct-drive formula in determining the fare adjustment rate. According to calculation based on the FAM formula, the MTR fare in 2021 will reduce by 1.85%. New fares will take effect on 27 June 2021.

My reply to the various parts of the question raised by Mr CHAN Han-pan is as follows:

The "Profitability-Linked Arrangement" was introduced into FAM after the review in 2013 in response to public concern about the correlation between MTRCL's profitability and fare adjustment. According to the "Profitability-Linked Arrangement", MTRCL will set aside an amount of fare concessions to be shared with passengers each year corresponding to the underlying business profit level in the previous year by reference to a pre-determined tiered table. The underlying business profits include profits from all MTRCL businesses, i.e. profits from Hong Kong transport operations, Hong Kong station commercial business, Hong Kong property rental and management business, property developments, as well as profit from MTRCL's non-local ventures (profit arising from investment property revaluation is excluded).

After the FAM review in 2017, MTRCL increased the amount of fare concession allocated under different profit levels, and raised the ceiling of the profit amount to be shared each year. The pre-determined tiered table under the current "Profitability-Linked Arrangement" is set out at Annex.

Moreover, to take into account the public's affordability, the "Affordability Cap" arrangement was introduced into FAM after the review in 2013, whereby the effective fare increase pursuant to the FAM formula should not be higher than the change in the Median Monthly Household Income in the corresponding period. The "Affordability Cap" arrangement was activated in 2019 and 2020. LEGISLATIVE COUNCIL ― 9 June 2021 7133

Since there will be fare reduction this year, the fare adjustment rate to be recouped due to the "Affordability Cap" arrangement will be carried forward according to the mechanism.

Under the Operating Agreement entered into between the Government and MTRCL, the next FAM review will be completed by 2023. Every time when the Government carries out the review, it will consult different sectors in the community on issues including the correlation between the profit level and fares of MTRCL, affordability of the public, and arrangements for handling the fare increase to be recouped, etc. and negotiate with MTRCL in order to formulate a proposal that can strike a balance among different views.

Annex

Pre-determined tiered table under the "Profitability-Linked Arrangement"

Underlying Business Profit in the Previous Year Amount to be Shared Below $5 billion $0 $5 billion to <$6 billion $75 million $6 billion to <$7 billion $100 million $7 billion to <$8 billion $125 million $8 billion to <$9 billion $150 million $9 billion to <$10 billion $175 million $10 billion to <$11 billion $200 million $11 billion to <$12 billion $225 million $12 billion to <$13 billion $250 million $13 billion to <$14 billion $275 million $14 billion to <$15 billion $300 million ≥ $15 billion $325 million

The Square Kilometre Array Project

21. MS ELIZABETH QUAT (in Chinese): President, the Square Kilometre Array ("SKA") Project is an international astronomy science project, with the objective to build the world's largest aperture synthesis radio telescope array and operate it for 50 years, which will provide a major opportunity for mankind to 7134 LEGISLATIVE COUNCIL ― 9 June 2021 understand the universe. "The Square Kilometre Array Observatory" ("SKAO"), an international intergovernmental organization established by a number of countries, is responsible for the implementation of the SKA Project. Following the ratification of the Convention establishing the Square Kilometre Array Observatory ("the Convention") by the Standing Committee of the National People's Congress in April this year, China has become an official member of SKAO. On the other hand, the Chinese Government has announced that the Convention is not applicable to Hong Kong for the time being. In this connection, will the Government inform this Council:

(1) whether it has assessed and consulted local academics how Hong Kong's participation in the SKA Project may benefit the local academia's research in areas such as astronomy, physics, frontier science as well as innovation and technology; if so, of the outcome; if not, whether it will expeditiously conduct such an assessment;

(2) whether it has estimated the resources that Hong Kong needs to deploy for participating in the SKA Project; if so, of the details; if not, whether it will make such an estimation; and

(3) whether it has plans to discuss with the Central Authorities the application of the Convention to Hong Kong, so that Hong Kong may participate in the SKA Project; if so, of the details; if not, the reasons for that?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Chinese): President, according to information from the website of the Square Kilometre Array Project ("SKA Project"), the SKA Project plans to build radio telescopes in Australia and South Africa, and conduct scientific researches on issues such as the formation and evolution of stars and galaxies, cosmic magnetism, nature of gravity and life beyond Earth.

As instructed by the Chief Secretary for Administration, the Commerce and Economic Development Bureau would reply to the question on behalf of the Administration as follows:

The Government of the Hong Kong Special Administrative Region had not conducted assessments on the issues described in the question, and also has no plan to conduct such assessments.

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The Convention establishing the Square Kilometre Array Observatory ("Convention") is not applicable to Hong Kong. The Government has no plan to request the application of the Convention to Hong Kong.

Manpower of lifeguards

22. MR LUK CHUNG-HUNG (in Chinese): President, the Leisure and Cultural Services Department ("LCSD") employs not only civil service lifeguards but also non-civil service contract ("NCSC") lifeguards according to seasonal and operational needs for providing lifeguard services at its public swimming pools, gazetted beaches and water sports centres. In this connection, will the Government inform this Council:

(1) of the respective strengths of the (i) civil service lifeguards and (ii) NCSC seasonal lifeguards under LCSD at present, and their respective percentages in the relevant staffing establishments;

(2) of the total number of drowning cases which occurred at the public swimming pools, beaches and water sports centres under LCSD in each of the past three years and, among such cases, the number of those in which the number of lifeguards on duty at the scenes at the relevant time was less than the relevant staffing establishment; and

(3) whether it has plans to expeditiously conduct a grade structure review for lifeguards and enhance the remuneration package of the grade, so as to retain lifeguards and attract new blood to the grade; if so, of the details and work schedule; if not, the reasons for that?

SECRETARY FOR HOME AFFAIRS (in Chinese): President, the Leisure and Cultural Services Department ("LCSD") currently provides aquatic or water sports facilities at 44 public swimming pools, 38 gazetted beaches and 5 water sports centres. My reply to the questions raised by Mr LUK Chung-hung is as follows:

(1) The lifeguards employed by LCSD include civil service lifeguards and seasonal lifeguards employed during the swimming season. As at 1 June 2021, there were 1 372 civil service lifeguards (including senior lifeguards) and 214 seasonal lifeguards in LCSD. Details are at Annex 1.

7136 LEGISLATIVE COUNCIL ― 9 June 2021

In light of the COVID-19 pandemic, LCSD's swimming pools were closed between December 2020 and March 2021. The selection interview and trade test for seasonal lifeguards for this year, originally scheduled during this period, were also suspended. As some public swimming pools and beaches have been reopened starting from 2 April 2021, the selection interview and trade test for seasonal lifeguards have been resumed. The recruitment exercise is being expedited and the appointed lifeguards will report for duty gradually.

(2) In the past three years from 2018-2019 to 2020-2021, there were a total of 219 rescue cases and 7 drowning cases at LCSD's public swimming pools, gazetted beaches and water sports centres at the time of service (see Annex 2). When the incidents happened, there were sufficient lifeguards on duty at the public swimming pools and beaches involved. To ensure the safety of swimmers, LCSD will provide sufficient lifeguards on duty at the public swimming pools while they are open for service as well as at gazetted beaches that are provided with lifeguard services.

(3) The lifeguards employed for providing lifesaving services at LCSD's aquatic venues include lifeguards employed on a long-term basis and seasonal lifeguards employed during the swimming season. The former are mainly staff from the Artisan (Beach/Swimming Pool) ("Ar(B/SP)") grade.

In accordance with the prevailing policy, the Government will only consider conducting a grade structure review for individual non-directorate civilian civil service grades when the following two criteria are met:

(a) the grades have proven and persistent recruitment and retention difficulties which cannot be resolved through the regular pay surveys under the "Improved Civil Service Pay Adjustment Mechanism"; or

(b) there are fundamental changes to the job nature, job complexity and level of responsibilities of the grades.

LEGISLATIVE COUNCIL ― 9 June 2021 7137

LCSD has all along been adopting an open mind on conducting a structure review for the Ar(B/SP) grade. LCSD is closely monitoring the recruitment situation this year with a view to gathering sufficient and objective data to explore the feasibility of initiating such review for the Ar(B/SP) grade.

Annex 1

Number of Civil Service Lifeguards and Seasonal Lifeguards of the Leisure and Cultural Services Department in 2021-2022 (As at 1 June 2021)

Number of Civil Service Lifeguards(1) Number of Seasonal Lifeguards (As at 1 June 2021) (As at 1 June 2021) Percentage of Number Percentage of Number of of Staff Strength over Basic Strength Lifeguards Lifeguards Establishment Staff Requirement (b) Recruited Recruited (a) Establishment (d)(2) (e) over Basic (c)=(b)/(a) Requirement (f)=(e)/(d) 1 428 1 372 96% 265 214 81%

Notes:

(1) Including civil service senior lifeguards and lifeguards.

(2) The manpower demand for seasonal lifeguards this year has dropped significantly because the number of users in swimming pools has to be reduced to not exceeding 30 % of the pool capacity and some pool facilities, including all leisure pools, children's pools, toddlers' pools and Jacuzzis have to be closed temporarily in accordance with the prevailing directions under the Prevention and Control of Disease (Requirements and Directions) (Business and Premises) Regulation (Cap. 599F). Besides, the manpower requirement for those pool facilities that are temporarily closed for annual maintenance and for those beaches not provided with lifeguard services temporarily due to the COVID-19 pandemic is not included.

7138 LEGISLATIVE COUNCIL ― 9 June 2021

Annex 2

Rescue and Drowning Cases at Aquatic Venues under Leisure and Cultural Services Department(1) from 2018-2019 to 2020-2021

Public Swimming Pools Gazetted Beaches(2) Total Rescue Cases(3) 86 133 219 Drowning Cases(4) 2 5 7

Notes:

(1) There were no rescue and drowning cases at water sports centres in the past three years.

(2) During periods provided with lifeguard services.

(3) Rescue cases refer to cases where swimmers get into trouble in the water and rescue operations are required (including all cases regardless of whether the swimmers need to be delivered to the hospital).

(4) The classification of drowning cases is based on the direct cause of death determined by the Forensic Pathologist.

MEMBERS' MOTIONS

PRESIDENT (in Cantonese): Member's motion with no legislative effect.

Mr WONG Kwok-kin will move a motion on "Increasing land supply on all fronts".

Four Members will move amendments to the motion.

This Council will proceed to a joint debate on the motion and the amendments.

Later, I will first call upon Mr WONG Kwok-kin to speak and move the motion. Then I will call upon Mr Tony TSE, Ir Dr LO Wai-kwok, Mr Steven HO and Dr Junius HO to speak in sequence, but they may not move their amendments at this stage.

LEGISLATIVE COUNCIL ― 9 June 2021 7139

The joint debate now begins. Members who wish to speak please press the "Request to speak" button.

I now call upon Mr WONG Kwok-kin to speak and move the motion.

MOTION ON "INCREASING LAND SUPPLY ON ALL FRONTS"

MR WONG KWOK-KIN (in Cantonese): President, I move that the motion, as printed on the Agenda, be passed. President, a few months ago, during a meeting with Hong Kong deputies to the National People's Congress, Vice Premier of the State Council HAN Zheng mentioned that the housing problem in Hong Kong needed to be solved. As he has pointed out, the housing problem in Hong Kong is related to its history and development, and although there are great difficulties in solving the problem, we still have to grab it by the horns. This makes us wonder whether the SAR Government has started tackling this difficult problem of land and housing. I personally think that the SAR Government's efforts and speed in tackling the land and housing problem are far from adequate.

Since Hong Kong's return of sovereignty, the land and housing problem has been plaguing people's livelihood and the economy all along. Due to the prolonged shortage of land supply, the quality of Hong Kong people's living environment has been declining, whereas housing costs have been on the rise, which means that people are paying more for a smaller flat. This long-standing problem eventually grew into deep-seated conflicts. Even the Government's housing protection for the grass roots, i.e. public housing, has been suffering one defeat after another. The latest waiting time for public housing has risen to 5.8 years, which is nearly 6 years, hitting a record high in 22 years. However, this is only the figure released by the Government. We have come across many cases in the community where people have waited seven to eight years but still have not been allocated public housing. In addition, the shortage of land supply also hinders the innovation and transformation of various industries in Hong Kong. Since rents account for a substantial part of operating costs, enterprises do not have additional resources for innovation, research and development as well as recruitment of talents, which in turn hinders the development of various industries in Hong Kong and reduces the opportunities for upward mobility for the people. This shows that land problem is a fundamental problem that must be urgently addressed in Hong Kong. Solving the land and housing problem has become the common vision of the national leaders and the community of Hong Kong at large. 7140 LEGISLATIVE COUNCIL ― 9 June 2021

Therefore, my motion today seeks to urge government departments to implement the proposals so that the Government can identify land on all fronts with confidence and determination.

President, FTU's position is very clear, i.e. we support any initiatives or methods that can solve the land and housing problem in Hong Kong. We advocate land development on all fronts through short-, medium- and long-term measures, so that there will be more land available for development in Hong Kong. Given the time limit, I will not go through each and every proposal in the motion as many of them have been mentioned on various occasions. Nonetheless, I would like to make a few points.

First of all, FTU supports land formation by reclamation and development of sites on the periphery of country parks for housing construction. Increasing land supply through reclamation is a long-established and effective method in Hong Kong. With the advancement of technology nowadays, there is no technical difficulty in either levelling hills or reclaiming land from the sea, while at the same time meeting the environmental requirements. Therefore, FTU opines that the Government should proceed with reclamation once a suitable location is identified. In addition, developing sites on the periphery of country parks is one of the options. In particular, I would like to point out that over 75% of the land in Hong Kong is agricultural land, barren land or woodland, with country parks accounting for about 40% of the total land area of Hong Kong. Therefore, with proper planning, the Government should be able to use these land for development without causing an impact on the environment or people's living quality.

President, as Hong Kong likes to make comparison with Singapore, I will take Singapore as an example. While Singapore's nature reserves and parks only account for about 8% of the total land area, adding only about 13% of reservoirs, we have never heard that Singapore is lagging behind in environment and living quality. Thus, the crux of protecting the environment and maintaining a green ecology is not the amount of land taken up by country parks, but the effectiveness of planning and conservation measures.

In addition, I have also proposed in the motion that the Government should expedite the land planning procedures, thereby shortening the process of transforming a piece of "primitive land" into a "spade-ready site". According to the information provided by the Secretary earlier, the current land formation LEGISLATIVE COUNCIL ― 9 June 2021 7141 process takes at least six years. Some large-scale development projects, such as the North East New Territories development project, have taken nearly 20 years to complete, during which studies and procedures have been constantly carried out before reaching the land resumption stage. However, it still requires infrastructure development before the land can be used for housing construction or development. I believe both the procedures and time required for land formation are hardly acceptable. Therefore, I suggest that the Government should streamline various procedures ranging from land planning and land use study to the adjustment of layout plans; improve the rehousing and compensation policies for land resumption, and even revise the statutory procedures so that the relevant study, planning, consultation, assessment and infrastructure development can be conducted on schedule or concurrently, thereby shortening the time for land development. In order to make the best use of land, the Government should also put pressure on landowners who deliberately delay the development or leave their land idle for more than 10 years by, for example, introducing an idle land tax to urge them to better utilize their land within a reasonable time, thereby sending a clear message to the community that the Government does not allow land to be hoarded and sold at a premium, so as to avoid prolonged idling of land.

Lastly, President, I would like to reiterate that the land and housing issue is a livelihood conundrum in Hong Kong that needs to be urgently addressed without delay. As this Council has now restored the normal state of discussion with no more filibusters or trouble-makers, we should cast our mind on public interests and welfare. To address the land supply issue, the Government should take bold actions instead of indulging in empty talk. I hope that today's debate will give an impetus to the Government. I so submit. Thank you, President.

Mr WONG Kwok-kin moved the following motion: (Translation)

"That the prolonged shortage of land supply in Hong Kong not only fails to satisfy people's enormous demand for housing but also hinders the development of various industries; given that land shortage has become the biggest obstacle to Hong Kong's development, this Council requests the Government to exhaust all means to increase the short-, medium- and long-term land supply on all fronts and expedite the land development and planning procedures, thereby increasing the housing supply and speeding up industries' development; specific measures include:

7142 LEGISLATIVE COUNCIL ― 9 June 2021

(1) expeditiously taking forward the project of artificial islands in the Central Waters, and reviewing the scope of application of the Protection of the Harbour Ordinance to increase suitable sites for near-shore reclamation;

(2) developing sites with relatively low ecological value on the periphery of country parks for housing construction to alleviate the housing demand;

(3) expediting the development of the land of the former Frontier Closed Area for developing new towns and new industries;

(4) proactively invoking the Lands Resumption Ordinance to resume land for public housing construction and introducing an idle land tax, so as to fully utilize land resources;

(5) improving the existing rehousing and compensation policies for land resumption, streamlining the lengthy process of land use study and planning by government departments, and reviewing the Town Planning Ordinance, so as to shorten the time for land rezoning and planning;

(6) unleashing the potential of land by raising the highest development density of land in the New Territories, and establishing a development principle prioritizing infrastructure and ancillary community facilities to take forward the development of strategic traffic and transport infrastructure, thereby increasing the carrying capacities of the communities and the land available for development;

(7) conducting studies on the relocation of large-scale facilities, such as the Fanling Golf Course and the Kwai Chung Container Terminals, so as to vacate a vast amount of land for housing construction and development; and

(8) striking a balance between land development and ecological conservation, including adding the requirement for developers to undertake conservation responsibilities in the land sale conditions, in order to reduce disputes arising from land development, thereby accelerating the land creation process."

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PRESIDENT (in Cantonese): I now propose the question to you and that is: That the motion moved by Mr WONG Kwok-kin be passed.

MR TONY TSE (in Cantonese): President, I shall first thank Mr WONG Kwok-kin for proposing today's motion to allow discussion on the land supply issue in Hong Kong by the Legislative Council again. I agree in principle to most of the proposals in the original motion, which include accelerating the land creation process, developing sites with relatively low ecological value on the periphery of country parks, expediting the development of the land of the former Frontier Closed Area, raising the highest development density of land in the New Territories, and conducting studies on the relocation of large-scale facilities to vacate land for housing construction. Given the limitation of time, I shall focus on explaining my amendment.

While the original motion requests the Government to expedite the land development and planning procedures, I am of the view that it is equally important to streamline and expedite the approval procedures; otherwise no matter how perfect the planning and layout plans are, implementation will be impossible or very slow and land supply can hardly be increased. At the request of the industry and me, the Development Bureau has already started to streamline the approval procedures for developments a few years ago. However, despite having a right direction, the Bureau is not working efficiently enough. Therefore, I hope that the authorities can expedite even further.

Recently, there have been heated discussions on developing sites on the periphery of country parks again. I have mentioned on multiple occasions that apart from having 40% of its area occupied by country parks, Hong Kong still has about 15% of its area covered by green belts. Besides, there is also plenty of deserted agricultural land not being put to good use, which is quite a waste. Given the reasons as insufficient infrastructure, inconvenient transport, the need to think about the surrounding environment, etc., many green belts, deserted agricultural land or sites on the periphery of country parks might not be suitable for high-density residential development. Nevertheless, if such sites were used for developing low-density elderly, educational, healthcare as well as cultural and leisure facilities, there may be fewer problems to be solved. Moreover, it can synergize with the rural environment to allow for the relocation of those relevant facilities currently situated in the urban area to the countryside, thereby vacating 7144 LEGISLATIVE COUNCIL ― 9 June 2021 the original sites for housing construction. This can likewise alleviate the housing demand. Hence, I have added the wordings of "ancillary community facilities" in the original motion to make good use of the rural land.

The original motion proposes to introduce an idle land tax. However, just like the proposal of a vacancy tax on first-hand properties before, this only treats the symptoms but not the root cause of the problem. To get to the root of the problem, we need to increase supply as well as facilitate and accelerate private housing development. Other than the role of a regulator, the Government should also actively play the role of a facilitator to remove barriers and streamline the approval procedure. So long as there is an adequate supply, the problem of vacancy shall no longer exist.

It has also been the consistent advocacy of the industry and me on striking a balance between land development and ecological conservation. While the proposal of requiring developers to undertake conservation responsibilities in the land sale conditions is well-intentioned, I am afraid that it will only make the development procedures even slower and more complicated. My proposal is to review the Environmental Impact Assessment Ordinance and streamline relevant procedures, so as to strike a balance between conservation needs and the pace of development.

Lastly, I would like to talk about the amendments proposed by the other three Members. As Ir Dr LO Wai-kwok is also from the construction industry, his amendment and mine share the same direction. Regarding Ir Dr LO's proposed deletion of the reference to "such as the Fanling Golf Course and the Kwai Chung Container Terminals" from item (7) of Mr WONG Kwok-kin's original motion about conducting studies on the relocation of large-scale facilities, I want to point out that conducting studies does not necessarily mean that relocation must be effected. Mr Steven HO proposes to amend the New Territories Ordinance for releasing the development potential of Tso/Tong lands. Since this point has already been raised by me long ago, I will support it. Dr Junius HO proposes two amendments, of which my support is given to the general principle on improving the arrangements for granting compensation on compassionate grounds and streamlining the relevant procedures. However, in my opinion, the proposal of re-introducing a land bond similar to previous Letter B entitlements will not only complicate the issue, but also give rise to many problems. Thus, it may not be favourable to the speedy increase in the supply of land and housing. Hence, I will not support it.

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With these remarks, President, I implore Members to support my amendment.

IR DR LO WAI-KWOK (in Cantonese): President, first of all, I would like to thank Mr WONG Kwok-kin for moving the original motion. Increasing land supply on all fronts involves not only the housing issue which is of great concern to the public, but also the development of various industries, which has a great impact on Hong Kong's economy and people's livelihood.

President, the living space of Hong Kong people is very small. Not only are we paying more for the housing, but the living space is getting smaller and smaller. With the average waiting time of general public housing applicants reaching 5.8 years, hitting a record high in 22 years, complaints were heard everywhere. BPA has all along attached great importance to this issue. On 7 June, this Monday, BPA released a 10-year housing plan for Hong Kong, proposing that the SAR Government should change its current passive role, which formulates piecemeal policies to deal with problems on an ad hoc basis and create land in a rush for the sake of expediency, into an active and comprehensive planning role to increase land and housing supply through a multi-pronged approach. BPA's 10-year housing plan proposes to develop 2 400 hectares of land, increase the number of public and private housing units by 650 000, and increase the per capita living space from 161 sq ft to 200 sq ft, with a view to solving the deep-seated housing problem in Hong Kong at root.

Therefore, I agree with the basic principle and direction of the original motion, which requests the Government to exhaust all means to increase the short-, medium- and long-term land supply and expedite the land development and planning procedures, thereby increasing the housing supply and speeding up industries' development. The Government should expeditiously take forward the project of artificial islands in the Central Waters and the feasibility studies on various reclamation plans for land creation, and review the scope of application of the Protection of the Harbour Ordinance to increase suitable sites for near-shore reclamation.

Developing sites with relatively low ecological value on the periphery of country parks and green belt areas is an important option. BPA is of the view that in the long run, the Government can rezone 3% of the total area of country parks, namely 1 329 hectares of land on their periphery to residential use. At the 7146 LEGISLATIVE COUNCIL ― 9 June 2021 same time, the Government should embark on massive land development in the New Territories by expediting the development of the land of the former Frontier Closed Area and progressively opening up the closed area of Sha Tau Kok Town. To unleash the potential of existing land, the Government should also expedite the redevelopment of old public housing estates while raising the highest development density of land in the urban areas and the New Territories.

BPA also urges the authorities to, while proactively invoking the Lands Resumption Ordinance to expedite the resumption of brownfield sites, Tso/Tong lands and idle agricultural land in the New Territories, conduct a comprehensive review on the existing ex-gratia zonal compensation system and set up a reasonable compensation mechanism with flexibility and transparency, so as to safeguard various rights to which land owners are entitled as set out in the Basic Law.

President, while the SAR Government has to increase land and housing supply on all fronts, it should refrain from taking inappropriate measures in a haphazard manner. I do not agree with the introduction of an idle land tax proposed in the original motion. I surely reckon the need to strike a balance between land development and ecological conservation, and consider that the authorities should enhance the communication and coordination with developers, local stakeholders and conservation groups so as to formulate a win-win option. While I agree with the proposal in the original motion to conduct studies on the relocation of large-scale facilities to vacate land for development, in my amendment I have deleted the examples of large-scale facilities from the original motion. As the Fanling Golf Course has its unique preservation value in terms of heritage, local culture, ecology and sports development, there is still controversy in society over its relocation. The relocation of the Kwai Chung Container Terminals is not an easy decision to make either.

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

With these remarks, Deputy President, I implore Members to support my amendment.

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MR STEVEN HO (in Cantonese): Deputy President, first of all, I would like to thank Mr WONG Kwok-kin for proposing this motion so that we can discuss the land issue.

Mr WONG Kwok-kin used the term "deep-seated conflicts" in his earlier speech, to which I strongly concur. But what does it mean by "deep-seated conflicts"? Some people may think that the "deep-seated conflicts" over land creation are attributable to the complicated government procedures taking as long as several decades; and as pointed out by Mr WONG just now, the studies conducted by the Government took long time to complete. Yet, I personally think that "deep-seated conflicts" are not confined to land creation. Why was there opposition to the Government's land resumption exercises? This is also a form of deep-seated conflict. Even after a piece of land is created, whether the residents there are living happily may be another form of deep-seated conflict.

I am not totally disagree with Mr WONG's earlier remarks on the procedural issue, but considering the complexity of the issue and the numerous opinions from Mr LAU Kwok-fan, I have proposed an amendment on the premise of not making any amendment to the original motion by all means. In fact, in Mr WONG's motion, there is a pretty controversial suggestion of "introducing an idle land tax". How can the public not worry about it? A lot of lands, including Tso/Tong lands, are not easy to sell or lease. Some of them are in very remote and inaccessible locations where roads are not available. Is it right for the SAR Government to tax these land owners? Yet, I am not totally against the idea that the Government will conduct studies on this controversial suggestion. We can all voice our views freely in today's discussion.

Next, I would like to highlight the problems facing farmers and offshore operators. Why do we sometimes find it hard to agree to certain government practices? We certainly understand the importance of land, but it is not right for the Government to bulldoze stakeholders into submission with righteous causes all the time without showing any concern about their rights, means of living or feelings.

I am going to give an example, but before that, I have to first declare my stance. Over the years, I have repeatedly stated in the Legislative Council that I do not mean to stop the Government from resuming or reclaiming land. Nevertheless, the territory of HKSAR as designated by the Central Authorities under the Basic Law, including both land and sea, is fixed in size. For every additional inch of land reclaimed in Hong Kong, the area of the sea will reduce accordingly. And yet, local offshore operators are not allowed to go further 7148 LEGISLATIVE COUNCIL ― 9 June 2021 south to operate on waters which are not our exclusive economic zone. Hong Kong is only a special administrative region, and has no right to claim that 200 km off the territory belongs to us. Our sea area has been designated by the Central Authorities. So if the SAR Government is concerned about the fishing industry, can it expand the operation area southward? Can it introduce policies to solve the livelihood problems of offshore operators?

Going back to onshore operations, I will now tell a tragic story. The SAR Government once resumed a pig farm for housing construction. Although the Government had granted the pig farmer several millions of dollars as compensation, it had not taken into consideration his future livelihood. After the pig farmer who had no other skills used up the compensation in the following one or two years, he turned to the Government for CSSA allowance. This has given rise to another social problem. While the Government did use the farm site to build public rental housing ("PRH") for PRH applicants, the pig farmer originally resided there has to turn to the Government for a monthly CSSA allowance of some $10,000 or $20,000. Is that desirable? Not necessarily.

Therefore, from the policy perspective, be it land resumption or reclamation, the Government should make proper plans for restructuring and structural adjustment, or even assist in the resumption of operation. While the SAR Government often claims that it cares about the resumption of operation, I would like to give the following example which I have cited before. In order to resume land, the Government has to relocate the farm concerned and calculate the compensation amount for its wells, squatters, farm equipment and seedlings. According to the Government, the ex-gratia allowance for relocation is assessed at standard rates with reference to the affected items less depreciation value of those items. While it is the Government that demands the pig farmer to relocate, it had included the depreciation of assets in the calculation of compensation. For farm tools that have been used for one or two decades, they barely have any value left, but the farmer would have to buy new tools out of his own pocket after relocation. It is thus natural for them to refuse to leave. The well they having been using is also very old. While one can make money from "drawing an old well"1, it is costly to dig a new well and it is imperative for the SAR Government to find out how much it costs. Can I pay the Government double amount in exchange for not being relocated? These are the conflicts which need to be solved.

1 "Drawing an old well"("淘古井") is a Cantonese slang which means having an affair with an old rich lady. LEGISLATIVE COUNCIL ― 9 June 2021 7149

The debate of today is a very good platform for us to review and understand where the problem lies. "Deep-seated conflicts" are neither confined to procedural issues nor merely found in land resumption. Some Legislative Council Members have proposed land resumption before, but why were there opposition to details whenever the Government submitted the specific plans? That is because the SAR Government had not addressed the deep-seated conflicts properly or understood the conflicts correctly. The above views were expressed on behalf of the trade.

Before I finish, I would like to talk about the fishing industry in the remaining 30 seconds of my speaking time. Just now, I asked if the Government could expand the area of the SAR, which is unlikely, it is thus necessary for the Government to carry out structural adjustment. While the Government reclaims land for Lantau Tomorrow, it has turned down the trade's request for land to carry out industry adjustment, saying that prior planning was necessary. Truth be told, how enthusiastic is the SAR Government about structural adjustment? The Agricultural Priority Areas that has been studied for 30 months will undergo another 30 months' of study, but the development at Kam Tin South has been completed within 30 months (The buzzer sounded) … So, it all depends on how enthusiastic the SAR Government is. Thank you, Deputy President.

DEPUTY PRESIDENT (in Cantonese): Mr Steven HO, your speaking time is up.

DR JUNIUS HO (in Cantonese): Deputy President, I am very grateful to Mr WONG Kwok-kin for proposing the "Increasing land supply on all fronts" motion, which I think is very intriguing. The amendments proposed by Mr Tony TSE, Ir Dr LO Wai-kwok, Mr Steven HO and I share one thing in common, i.e. we all agree that Hong Kong has been slow in land creation and thus led to stagnant social development. Is there really no land in Hong Kong? No. In terms of objective conditions, the total land area of Hong Kong is 1 100 sq km, of which 35% to 40% is developed land and about 45% of the remaining land is country parks, semi-developed/undeveloped or land that can be developed/cannot be developed. The sum total is 100% and so, objectively speaking, there is still land in Hong Kong.

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I went to Liantang for an inspection earlier. After driving through the tunnel at Queen's Hill and turning the corner, the land on the way to Yantian was about 1.5 km to 2 km wide. When I was standing at a height at the Pak Fu Shan observation post, the land from the tunnel at Queen's Hill was about 6 km deep. We can multiply the width and the depth to get a few hundred hectares of land. It is therefore incorrect for us to say that there is no land. We have simply covered up ourselves with a golden shield and then complained about the shortage of land. A colleague has just said that we should make reckless attempts by all means. I nonetheless do not want the authorities to make reckless attempts as the most important thing is to remove barriers and restrictions. Mr WONG Kwok-kin has proposed that the authorities should conduct studies on the relocation of the container terminals. The authorities should consider this proposal and should never say "no". We only need to learn two English words, "yes" and "no", right? However, it is better to say "yes" than "no". Hence, I will not modify other people's proposals and will only add my own opinions. I do not have any views on the proposals of the other three Members either.

Mr Steven HO hopes that the agricultural and fisheries industries can resume operation after land development and there is nothing wrong with his idea. Ir Dr LO Wai-kwok has put forward an all-win proposal and asked for tolerance. Mr Tony TSE has expressed support for improving the compensation mechanism, but he disagrees with the re-introduction of a land bond similar to Letter B entitlements.

I would like to tell Members that there is nothing wrong with old tricks. The most important of all is to modify them and make them work. In the past, former Member CHU Hoi-dick used to complain about "government-business-rural-triad" collusion and it seemed that the authorities could do nothing about that. There must be cooperation between the Government and the people as it takes two hands to clap, and there is no way one can make the sound of clapping by swaying one hand, right? Cooperation between the Government and the people is essential, but this has been seriously smeared.

What is Letter B entitlement proposed by me? During the Hong Kong-British era, the British lacked the money to create land, so they issued debentures. The concept is the same as ours today, i.e. seeking inclusion and cooperation. After land resumption, land bonds will be issued. People who are LEGISLATIVE COUNCIL ― 9 June 2021 7151 willing to cooperate or redeem the land bonds in the future will be holding priority passes, which are similar to Disneyland's FASTPASS tickets. If I do not secure FASTPASS tickets in Disneyland, I will have to queue up for an hour for an entertainment. With FASTPASS tickets, the queuing time can be shortened by 40 minutes. Will other people say that it is so unfair for you to have the FASTPASS tickets? Letter B entitlement is a FASTPASS ticket that saves the holder from being criticized as colluding with the Government as it is a priority system created by the people concerned. When taking a flight in the past―which is impossible now―the ground crew member of Cathay Pacific would ask me about my membership status with Marco Polo Club. When I told them I was a Diamond or Platinum member, they would arrange priority boarding for me. Non-members may question why I have the priority for boarding, but everything happens for a reason, so it is no use envying others. The system is designed to serve certain people.

Therefore, the most important thing is to broaden our mind and horizon. I have no objection to all other proposals as I have always supported the merging of diversified ideas, just like a hotpot with assorted ingredients. Thank you, Deputy President.

SECRETARY FOR DEVELOPMENT (in Cantonese): Deputy President, I thank Mr WONG Kwok-kin for moving the original motion, and Mr Tony TSE, Ir Dr LO Wai-kwok, Mr Steven HO and Dr Junius HO, who has just spoken, for proposing the amendments.

Shortage of land resources in Hong Kong is an indisputable fact. After taking office, the Chief Executive has clearly pointed out that housing is not simply a commodity and that our community has a rightful expectation of the Government to provide adequate housing. This is also fundamental to social harmony and stability. Increasing the supply of land and housing is also a top priority of the Government.

Thus, shortly after the current-term Government took office, the Task Force on Land Supply ("the Task Force") was established. The Task Force has carried out a lot of quality public engagement work and forged broad consensus in society. The Task Force has discussed 18 options and decided that eight of them should take priority, which include taking forward brownfield development, spearheading the projects of new development areas, conducting study on 7152 LEGISLATIVE COUNCIL ― 9 June 2021 developing artificial islands in the Central Waters, etc. There are nine other options which have not received the general support of society or involve more complex considerations, and were not recommended by the Task Force to be accorded priority. These options include developing sites on the periphery of country parks and relocating the Kwai Tsing Container Terminal as mentioned earlier on. As for these options which have not been recommended as priority, the Task Force believes in the long run, the Government can still consider in the future if it is necessary to conduct further studies on the viability as well as pros and cons of those options according to the actual circumstances. Considering the recommendations of the Task Force and the need to capitalize on the planning and construction resources, the Government has decided to concentrate its resources on taking forward the eight priority options recommended by the Task Force at this stage.

Deputy President, it actually takes time to create land. Most land supply options will not be able to create land overnight, nor will they take effect immediately. Fortunately, after continuous hard work in the past few years, the joint efforts of the Government and society have gradually yielded results. The number of public rental housing ("PRH") units to be completed in the next 10 years will reach 316 000, which has exceeded the demand for 301 000 PRH units estimated by the Long Term Housing Strategy in the same period, that is, in the 10-year period from 2021-2022 to 2030-2031. As I said in my reply to the question raised by Mr SHIU Ka-fai last week, the number of 316 000 PRH units to be completed actually represents a substantial increase compared to 272 000 units in 2019 and 248 000 units in 2018. However, since two thirds of the supply (i.e. more than 200 000 units) will only come into existence in the last five years of the 10-year period, we will still face considerable challenges in the next few years. At present, the average waiting time for PRH is about 5.8 years and it is expected that this number will continue to rise in the short term. In other words, members of the public will still encounter difficulties in being allocated with PRH units in the next few years. In this regard, the Government will continue to make every effort to develop land and provide housing supply. We hope that the general public will understand that increasing the supply of land and housing requires long-term and continuous efforts.

As we proceed with our work, we will listen carefully to different views in society. In Mr WONG Kwok-kin's motion and the amendments proposed by many Members today, there are many suggestions for increasing land supply on all fronts. Some of the proposals, such as strengthening Government-led land LEGISLATIVE COUNCIL ― 9 June 2021 7153 use planning, proactively invoking the Land Resumption Ordinance and the related laws, and expeditiously taking forward the project of artificial islands in the Central Waters are tasks that the current-term Government has been advocating and taking forward all along. Other suggestions such as streamlining the process of land and housing supply and shortening the time for land rezoning and planning are also measures being actively taken forward. In fact, if we analyse the 330 hectares of land that will be used to build 316 000 PRH units in the next 10 years, we will discover that about 35% of the land comes from new development areas and large-scale development projects, and about 40% comes from a number of sites rezoned for developing PRH units. All these reflect the achievements that we have made in rezoning the land use, land resumption and the development of new development areas in the past period of time. I would like to thank all Members of the Legislative Council for their strong support of our efforts on different occasions.

Deputy President, increasing land supply is a long-term task and is closely related to issues such as transport infrastructure and conservation. Today, the Under Secretary for Transport and Housing and the Under Secretary for the Environment are also present. We will listen carefully to Members' speeches and make appropriate responses later in the closing remarks. Thank you, Deputy President.

MR LAU KWOK-FAN (in Cantonese): Deputy President, I speak in support of the motion on "Increasing land supply on all fronts". In view of the shortage of land supply in Hong Kong, I agree that land supply should be increased on all fronts. In the articles written by me lately, I have expressed support for the development of sites with relatively low ecological value on the periphery of country parks; the need to conduct studies on green belts development; how to release the Wetland Buffer Area and Tso/Tong lands of the New Territories, as well as the importance of developing the land of New Territories North with full effort.

In fact, writing these articles has given me a lot of inspirations. Members have come up with many ways to create land and produce more "flour", but the Government has often used the shortage of land supply to account for its failure to meet the housing supply target. But is it true that there is no land in Hong Kong? Or is it the slow land creation process on the part of the Government due to the requirements to complete a series of environmental impact assessment and 7154 LEGISLATIVE COUNCIL ― 9 June 2021 town planning procedures that has lengthened the baking process of "bread" and made land creation and housing construction so slow and expensive despite the availability of land and "flour"?

Mr WONG Kwok-kin just now mentioned the sites that have been left idle under the sun, but actually most of the idle land belongs to the SAR Government. I would like to cite an example, which is the Kwu Tung North/Fanling North New Development Areas ("NDAs") in the Northeast New Territories. This is the first phase of Fanling North's development. While both developments were gazetted in 2018, the private development by way of in-situ land exchange has completed almost two thirds of its construction and is scheduled for sale this year. The first intake of residents is also expected to take place next year or the year after next. According to the Government, the first population intake of the Kwu Tung North/Fanling North NDAs is precisely attributable to the private residential development. Adjacent to it are the many public housing developments planned by the Government, but the site there has remained lush green. The Government has just completed the land resumption process in some two weeks ago, and the site has yet to be handed over to the Hong Kong Housing Authority ("HA") for carrying out site formation works. Although the Government has been given such a long period of time, the project is still in a mess. Many villagers have told me that the land resumption process was hasty and pressing. As some government departments had been working from home during the epidemic, the villagers had to move out before they could contact with the responsible persons and seek clarifications. Although both of the two sites belong to the first phase of development and require the resumption of land, the private housing development has almost completed whereas the site of the Government still remains idle under the sun. Originally, another private development nearby is also ready to commence construction, but it has been put on hold because the Government did not allow it to commence as it belongs to the second and third phase but not the first.

I would like to give another example―Under Secretary for Transport and Housing is present today―HA has recently announced the redevelopment of four factory estates for public housing use. HA expects to resume the land in 2022, but the project will not be completed to provide 4 000 housing units until 2031. It will have to take 10 years to demolish and redevelop four factory estates. What kind of speed is that? In the past, we used to take pride in the speed of Hong Kong. But today, Hong Kong is synonymous with slow and high cost, and is definitely lagging behind the pace of Shenzhen and our country.

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On the other hand, the Government keeps stressing the principle of prioritizing infrastructure development. But in reality, looking at the infrastructure works in Hong Kong, such as Kwu Tung Station and Northern Link, the construction and completion were behind schedule and involved high construction costs. How can such progress tie in with Hong Kong's development?

With the improved electoral system, it is evident that the Legislative Council can now fully dovetail with the Government. I sincerely urge the Government to comprehensively amend such outdated legislation as the Town Planning Ordinance and the Environmental Impact Assessment Ordinance as soon as possible. What I mean is that these ordinances or certain government departments have not only slowed down Hong Kong's land creation progress, but also posed as stumbling blocks that have been slowing down our housing supply. I hope that when the Government examine the "flour", it will also examine the machine for making "bread" as well. Thank you, Deputy President.

MR MARTIN LIAO (in Cantonese): Deputy President, for many years, the shortage of land and housing has been the number one livelihood issue that plagued Hong Kong people. Since the problems involved are so intertwined, it is also one of the deep-seated conflicts that has remained unsolved. Fortunately, following an improvement of the electoral system and an establishment of a new order conducive to rationalizing the relationship between the executive and the legislature as well as enhancing the efficiency of governance, Hong Kong is expected to bid farewell to the political quagmire of the past and redirect its energy in promoting economic development and improving people's livelihood. The Government has also indicated that priority will be given to solving the problems of land and housing. This motion today provides an opportunity for us to put our heads together.

Since the return of sovereignty, the previous terms of the Government have made every effort to solve these problems. As pointed out in the motion, efforts have been made to identify land on all fronts. As far as the current-term Government is concerned, it has been seeking short-, medium-, and long-term ways to increase land supply, including those mentioned or not mentioned in the motion, and some of them have achieved certain results. The problem is that compared with demand, the amount of land identified is still inadequate and the process is too slow.

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The motion mentioned that the Government announced two years ago that it would proactively invoke the Land Resumption Ordinance to resume suitable land for public rental housing ("PRH") development, but so far it has only identified 1.2 hectares of land to be resumed which is estimated to provide only 1 600 units. Since land resumption will actually take effect upon completion of the relevant procedures, there may be a wait of two more years. Another example is the proposal of brownfield development. According to the announcement, the authorities have identified eight groups of brownfields, providing about 20 000 PRH units, on the basis of its preliminary studies, but it is expected to be completed only 10 years later. Undeniably, there are many considerations before adopting the various short- and medium-term options, but is there still room for the Government to speed up the process and increase the supply? For example, can it cut the red tape, expedite vetting and approval procedures, speed up the development of supporting facilities and increase the development plot ratio?

The Government has also adopted a new mindset and put forward an ambitious plan, namely the Lantau Tomorrow Vision reclamation project for land creation spanning a period of 20 to 30 years, which will provide up to 260 000 housing units, more than 200 000 jobs and a new core business district. The motion has specifically urged the authorities to expeditiously take forward this project.

The proposal of developing sites with relatively low ecological value on the periphery of country parks, which is recently discussed in society again and is also mentioned in this motion, has considerable potential for increasing land supply. Since the proposal lacked support in society in the past, the authorities indicated that they would commence further studies on it only after completion of their work on the priority options to increase land supply as originally planned. This proposal is indeed controversial, but considering the predicament of hundreds of thousands of grass-roots people who have become unemployed or underemployed under the novel coronavirus epidemic but still have to pay high rent, live in harsh living conditions such as subdivided units and do not have the slightest idea when they can be allocated a PRH unit, can the authorities facilitate people from all walks of life to rationally reconsider this proposal with sufficient information? Can the authorities expeditiously put forward specific options with details, including how much suitable land will be allocated from country parks which account for 40% of Hong Kong's total area, how much PRH units can be provided and the impact on Hong Kong's ecology, so that we can make informed choices in the overall interests of society?

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Deputy President, I think there are many suggestions in the motion that are worthy of the Government's consideration, but due to time constraints, I can only briefly touch on a few key points. Finally, I must point out that many problems will be encountered in land development, and the biggest lies in political courage and determination.

Deputy President, I so submit.

MR LUK CHUNG-HUNG (in Cantonese): Deputy President, I speak in support of Mr WONG Kwok-kin's motion on "Increasing land supply on all fronts". Insufficient land supply and inadequate housing supply have caused tremendous pain to Hong Kong people. They have even discouraged young people from making more efforts, turning their attitude from "Buddhist-style" to "Lying flat-ism". These are all attributable to an inadequate supply of land and housing.

The present situation of Hong Kong can be likened to a critical patient who must be admitted to the Accident and Emergency Department for resuscitation, and the Members and government officials present are the doctors who are eager to resolve this problem. Although there is a treatment method called "cure-all formula", it is usually ineffective. It requires a consolidated treatment and multi-pronged approach to cure the patient. However, it is always easy to talk than to do as there are bound to be many difficulties. What is more, it may involve problems such as resource development and interest distribution, which will inevitably create many obstacles. The last Chief Executive proposed developing sites with relatively low ecological value on the periphery of country parks for the construction of public housing, facilities for government uses and so on. Some people, especially those from the opposition camp and the "mutual destruction camp", like bringing up high-end and groovy concepts incessantly and reiterating "brown before green" in a brainwashing manner. This seems to have given a false expectation that after all the brownfield sites are used up, Hong Kong people will have adequate land and place for living and all the problems can then be resolved.

First, I will talk about the concept of "brown before green" again. This is a false proposition. Why do I say so? There are around 1 300 hectares of brownfield sites in the New Territories, such as those located in Hung Shui Kiu and North East New Territories. In fact, the Government has been very aggressive as 540 hectares of brownfield sites with greater development potential 7158 LEGISLATIVE COUNCIL ― 9 June 2021 have been used. As for the remaining 763 hectares, there will be a lot of difficulties if they are used for development, including the scattered and remote location. Brownfield sites are currently required for some undertakings and cannot be removed completely. Logistics support, storage, industrial support, maintenance, environmental industries and recycling industries need brownfield sites. Hence, brownfield sites should not be a very negative term. With regulation, they can also generate a lot of economic activities. Thus, brownfield sites cannot be relied on alone to resolve land shortage.

Another problem is: If we rely solely on brownfield sites, then people owning brownfield sites or having land reserve will be very happy because their land will be well sought after. They may hoard up their land for more favourable prices, which will delay the progress of development. When the Government earnestly requests them to participate in the development, they will provide the site slowly like "squeezing toothpaste from a tube". This will end up encouraging property hegemony. After all, there is currently insufficient supply of land in Hong Kong, especially the supply of new sites, which has deterred the owners of brownfield sites from hastily developing their land. As a result, these sites will be left lying idle under the sun, which is very wasteful indeed. To me, this is precisely the major reason why the Land Sharing Pilot Scheme previously proposed by the Government had received lukewarm public response.

To cure the illness of shortage of land supply in Hong Kong, a multi-pronged approach must be adopted by employing all possible methods, including making use of some sites with no ecological value in country parks. The use of only 1% of the land of country parks will enable several thousands of families to become home owners and live and work in peace. Why do we not consider it? Even if 1% to 2% of the land of country parks is used, country parks still account for 40% of the land. When compared with other major cities, Hong Kong remains a place with the greatest country park ratio. The land for country parks enjoyed by us will not be reduced as a result.

As for the second question, "infrastructure first" must be pursued. The Government has talked about it for a long time, but I find that this is not the case. For example, regarding the recent Hung Shui Kiu Station, its construction will only be completed after 2030; needless to say, the construction of the entire Northern Link will only be completed in 2034. On the one hand, the people residing in the districts are very miserable because there is no public transport and LEGISLATIVE COUNCIL ― 9 June 2021 7159 the traffic there is very congested; on the other hand, the development density cannot be raised under the enhanced ancillary transport facilities to genuinely optimize land use.

While land development requires the concerted efforts of various parties, the multi-faceted problems must be resolved with pioneering spirit and we cannot hesitate to move forward. I very much hope that the Development Bureau, the Transport and Housing Bureau as well as the relevant departments will demonstrate their determination and courage in resolving the problem of shortage of land and housing supply for members of the public. Thank you, Deputy President.

MR KWOK WAI-KEUNG (in Cantonese): Deputy President, I speak in support of Mr WONG Kwok-kin's motion on "Increasing land supply on all fronts".

When it comes to land supply, quite a number of people have an unfathomable question: Is land available in Hong Kong? We can learn from primary school textbooks that Hong Kong has a total land area of 1 111 sq km, which is bigger than the 720 sq km of Singapore. Although the land area of Singapore is only 65% of that of Hong Kong, why does Singapore fare better than Hong Kong in respect of housing? The average living floor area per person in Singapore is 320 sq ft, which doubles the corresponding figure of only 160 sq ft for Hong Kong. This is attributable to a number of reasons, including the Government's use of land, wavering housing policy, lack of long-term housing plans after the abolition of the target of building "85 000 flats" annually in 2003. Moreover, whenever there is any plan to increase land and housing supply, many people, especially those with vested interests in land, will find spokespersons to raise objections.

Take reclamation as an example. If the Government can take forward reclamation in the Central Waters to develop East Lantau, up to 1 700 hectares of additional land will be generated in Hong Kong. Quite a number of experts consider this the most cost-effective option to increase land supply, because at least housing construction by way of reclamation does not take longer than land resumption. Why is there such a view? Take the negative example of the development of North East New Territories. The Planning Department completed the consultancy study on the development of North East New Territories in 2003, but since the implementation of the North East New 7160 LEGISLATIVE COUNCIL ― 9 June 2021

Territories New Development Areas project has been obstructed by the "mutual destruction camp" in the past 18 years, it remains a piece of barren land on today's map. Deputy President, 18 years has passed. It is a lie to say that the resumption of land takes shorter time than reclamation. We must bear in mind the example of the North East New Territories development.

Land development always comes along with enormous interests at stake and manipulation on the part of interest groups. They are worried that after the Government has secured new land, they will be unable to sell the land hoarded by them at a high price. Thus, they will exhaust all means to safeguard the value of their land, and mobilize spokespersons to defend their interests by opposing all land development projects, including the reclamation in the Central Waters. In the past, the feedback we heard most often is "dumping money into the sea". Such smear tactics only have one objective, that is, to prevent the Government from increasing land supply so as to safeguard the interests of those with vested interests.

As a matter of fact, the reclamation site at the Central Waters, whose ecological value is not high, waters are not deep and fairways will remain intact after reclamation, has been identified after years of studies. The advantage of the Central Waters is that to its west lie the Lantau Island, the airport and Kau Yi Chau and to the east Hong Kong Island, thus making it possible to construct a new link road connecting the airport and the core business districts on Hong Kong Island. Up to 400 000 residential units can be provided on the new artificial islands, and the location is convenient for the residents to commute to and from the urban areas or the airport for work. In fact, this suggestion is very worthy of consideration, particularly given the very intensive development and extremely limited supply of new public rental housing ("PRH") units and Home Ownership Scheme ("HOS") flats on Hong Kong Island in recent years. Many families have failed to buy HOS flats on Hong Kong Island against their wish because there are no new HOS flats or PRH units on Hong Kong Island. In order to increase public housing supply, this suggestion absolutely warrants consideration.

Besides, Deputy President, Mr WONG Kwok-kin's motion also mentioned conducting studies on amending the Protection of the Harbour Ordinance. I would like to mention some painful experiences, including the judicial reviews on the Central―Wan Chai Bypass and the deliberation on the construction of the boardwalk underneath the Island Eastern Corridor. Subject to the regulation of LEGISLATIVE COUNCIL ― 9 June 2021 7161 the Ordinance, any project which intrudes into the harbour or blocks the view of the harbour may be liable to be challenged by judicial review though the project itself does not have any effect on the harbour, thus causing significant delays to these good projects.

Deputy President, all in all, as Mr LUK Chung-hung has just remarked, the land and housing problems of Hong Kong are in a critical condition that brooks no delay. I hope that the Bureau can streamline the structure and expedite all procedures in order to find a way out for the housing problems of Hong Kong. Thank you.

MR FRANKIE YICK (in Cantonese): Deputy President, of the total land area of some 1 000 sq km in Hong Kong, only about a quarter is built up. Is Hong Kong really short of land? With regard to this question, I would like to first share with Members the comments made by Dr CHAN Yan-chong in a radio programme last week. As pointed out by Dr CHAN, Hong Kong has a land area of some 1 100 sq km and Singapore has only some 700 sq km; the population of Hong Kong and Singapore are some 7 million and slightly over 6 million respectively, but the average living space per person in Singapore is double that of Hong Kong. Dr CHAN added that the same piece of land could be used for building a 3-storey or even a 30-storey structure, so it all depends on how we intend to use the land. Is Hong Kong really short of land or are we simply tying our own hands?

Based on the figures, Hong Kong is obviously not short of land, but the SAR Government has never formulated a comprehensive land policy. It was not until the Government saw the soaring housing demand in society, strong public resentment over housing issues, continuous increase in the waiting time for public housing, rents of subdivided units surpass that of luxury flats and young people can hardly afford to purchase properties, that it hastily set up the Task Force on Land Supply to conduct studies and make recommendations on land supply.

The Liberal Party agrees with the Government that the housing problem should be solved through housing construction, which is the top priority of the SAR Government. Therefore, the Liberal Party supports the Government's multi-pronged measures to increase land supply by reclamation, developing sites on the periphery of country parks, resuming Tso/Tong lands, relaxing the height restrictions on small houses, developing brownfield sites, and so on.

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However, the Liberal Party would like to reiterate that brownfield operations, including open storage yards, container yards, logistics facilities and vehicle repair workshops, provide support to port and logistics development, and form an essential and integral part of the entire logistics supply chain. While the Government will provide ex-gratia compensation for affected brownfield operators, the application threshold for the ex-gratia compensation is too high and the issue of operational sustainability remains unresolved. We thus hope that the Government will review the ex-gratia compensation system and provide alternative sites for affected brownfield operators as far as possible, so as to minimize the impact on the port and logistics development in Hong Kong.

The keen housing demand mainly stems from the shortage of supply. The development of a new development area from preliminary study to completion for intake often takes 15 to 20 years, resulting in a serious lag in housing supply. Therefore, the Liberal Party welcomes the Government's announcement of establishing the Steering Group on Streamlining Development Control to examine whether there is room for streamlining the current development processes, with a view to shortening the time required for development.

Considering cost-effectiveness, the Liberal Party thinks that land formation by reclamation is more advantageous. While the Government has the "imperial sword" of invoking the Lands Resumption Ordinance to resume land, the procedures are complicated and may give rise to legal proceedings, which would slow down the development progress. As reclamation creates new land, land planning will be relatively more flexible without the constraints imposed by existing developments. In fact, apart from shortage of housing supply, one of the reasons for the surging property prices today is the high construction costs in Hong Kong. According to a study report, Hong Kong ranked third for construction costs among the world's 100 largest cities, trailing after London and New York. If the Government can control construction costs, property prices will naturally come down.

As for the proposed relocation of the Fanling Golf Course and the Kwai Chung Container Terminals, the Liberal Party believes the Government should strike a balance between social and development needs. As golf is a popular sport among some members of the public, the golf course should be retained as long as the golf club opens up its facilities for participation by members of the public. As for the relocation of the Kwai Chung Container Terminals, I personally think that the time has already passed. Had this proposal been put forward 20 years ago, I would have expressed strong support.

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Deputy President, to alleviate the keen demand for housing by members of the public, the Government has been resuming land designated for industries' development in recent years. The Liberal Party is worried that if the situation persists, some people may end up having a home but no job, which will in turn lead to other social problems. The Government has to strike a balance between housing construction and economic development in allocating land resources.

I so submit.

MR WILSON OR (in Cantonese): Deputy President, I am so grateful to Mr WONG Kwok-kin for proposing today's motion. I would like to begin my speech today with the following two lines: "Pace of identifying land to increase housing supply lags far behind, bureaucratic procedures needs reform".

Deputy President, I think fellow colleagues of the Council as well as the Secretaries can see clearly from this photograph in my hand that many people are still living in inadequate housing. No matter what method the Government uses, we still have to face the reality, i.e. we must endeavour to develop land resources. We do not want the different social strata in Hong Kong to persistently face this deep-rooted problem.

Deputy President, I would like to cite a report produced by a group specialized in conducting housing studies. As pointed out in the report, the supply of private housing dropped precipitously in 2019 and is anticipated to remain lingering around at rock bottom in the next five years, thus forming a situation that resembles a "land cavity"; besides, the production volume of public rental housing in the next four years will not be able to achieve the goal set in the Long Term Housing Strategy. Although the Chief Executive has stated in the Chief Executive's Question and Answer Session of the Legislative Council that the Government will provide 310 000 public housing units in the next decade, I hope various Secretaries would understand that the Chief Executive has merely set the goal. I think how the goal can be achieved requires serious thoughts and we should not let the problem continue to aggravate. Deputy President, it is "continue to aggravate". I only said it twice because the situation is not that bad. I urge the Government to exhaust all means to explore new land as soon as possible, and more importantly, to cut the red tape relating to the development processes of land and housing―Secretary, particularly the tedious ones, so as to increase housing supply.

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Deputy President, we are not simply paying lip service. Since I have my personal insights about land development, I wish to offer two suggestions for consideration by various Secretaries. First, it is about how land can be released as soon as possible. The crux is that the Government should cut the red tape of various administrative procedures relating to land development by all means. I have highlighted time and again, both inside and outside the legislature, that if the relevant procedures remain rigid like an iron plate, no matter what the Secretary does and even until he has a full head of white hair, he will still fail to solve the problem. Would the Secretary please do not laugh at this because I can see that he has got more white hair. I hope that the Secretary will face the crux of the problem, i.e. cutting the red tape.

In my observation, the various application procedures are currently operating at extremely slow turtle speed. Not only are repeated consultations required, but there is also a need to go through the Town Planning Board and PlanD (i.e. the Planning Department), which is a serious waste of time. Moreover, in respect of the development projects, we shall all bear in mind that apart from streamlining the procedures, it is also important to develop land, including land rezoning that we often talk about, the development of new development areas, the Land Sharing Pilot Scheme, urban renewal, the development of topside properties at railway stations as well as large-scale reclamation of a much longer term. They all require re-examination and streamlining of procedures.

All these are not empty talks, because I have consulted many professionals and they have provided some views―which are also their tips―for the consideration of the Secretary. First, they hope that the authorities would consider setting up a delegated central group, i.e. a central group of HKSAR providing a one-stop service platform to deal with all planning and land development applications. The Mainland is also using one-stop service platforms to save people the trouble of wasting their time. Second, there should be well-defined scope of approval of various departments in respect of development and architecture to save applicants' time and efforts. Third, land lease conditions must be simplified. Fourth, targets for land and housing supplies have to be set. I shall skip the others and submit the written proposals to the Secretary later. As I have only five minutes to speak, I would like to move on to the second part.

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The second part is about how the authorities can respond to our demand for public housing. I hope that the Transport and Housing Bureau can consider re-establishing the Steering Committee on Long Term Housing Strategy to review the housing demand projection, because I am worried that the current projected target can hardly be met. Targets of the first five years can be barely met, but I am afraid that those of the subsequent five years cannot be achieved. Therefore, I hope that the authorities can conduct a review afresh.

Deputy President, I want to point out that a small change may affect everything. Development projects of individual areas often need to be consolidated to tie in with the overall development planning. However, the Government always encounters various difficulties when carrying the relevant work and has to conduct detailed studies time and again before implementation. This would certainly result in delays in timing. Honestly speaking, people will be very angry to see this. I hope that the Secretary can truly remember my earnest and well-meant proposals and will bring them back to seriously consider how land and housing supplies can be increased, so as to give people a sense of happiness.

Thank you, Deputy President. I so submit.

MR JEFFREY LAM (in Cantonese): Deputy President, before I start, I would like to declare that I am a member of the Hong Kong Golf Club.

Deputy President, land shortage has haunted Hong Kong for more than a decade. Yet, this problem continues to exist after the Government conducted repeated studies over the past years. Members of the public are much aggrieved as their homes are getting tinier and pricier. Not only is there a lack of community and livelihood facilities, there is also insufficient commercial and industrial space.

Lantau Tomorrow is an ambitious and visionary plan proposed by the Chief Executive to increase land supply in one go. BPA has conducted a detailed study to extensively consult a variety of professionals and members of the public and put forward a series of proposals. I trust that they can bring benefits to the community.

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Land planning requires professionalism and rationalism. However, during the consultation, some people manipulated public sentiment with biased arguments. There were also certain groups sending hundreds of submissions to express overwhelming support or opposition for particular options. And yet, the Government subsequently took these consultation results as authority and is thus doomed to fail.

Deputy President, regarding how to increase land supply, there have long been diverse views and all-inclusive proposals in the community, including relaxing the height restriction and plot ratio, developing underground space and relocating facilities to caverns. Now that 10 years have passed, we find that the biggest problem lies in the Government's attitude and determination in implementing policies. If government officials remain closed-minded and say "no" to everything, the Government will end up ignoring all suggestions, no matter how good they are.

Year after year, BPA has suggested a large-scale in-situ redevelopment of old public rental housing ("PRH") estates in the belief that 10-odd years later, all applicants will be allocated PRH units. The first step is, however, to identify new PRH units to rehouse the PRH tenants affected by the redevelopment. Yet, the Government has resolutely refused, saying that it has to follow the rules. The fact is even rules need to adapt to evolving circumstances, but a simple "no" from the Government means remain status quo and PRH applicants are left to wait for many more years. The Government would rather construct single-block PRH buildings at a high cost on its small or irregular sites than conducting large-scale redevelopment to make the best use of land.

If the Government does not think outside the box, the many of us giving advice are tantamount to talking to the wall. Considering that residential sites take up less than 7% of land in Hong Kong and developed land accounts for only a quarter of the total area of Hong Kong, we should adopt a more macro perspective in thinking how every piece of land in Hong Kong can be utilized. It is wrong to focus on a single site used for an Olympic sport, i.e. golf. Hong Kong fails to walk its talk on supporting sports development. We should consider how to utilize each and every piece of land so as to make Hong Kong a more livable international city where people's livelihood can improve as the economy develops.

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In addition, the Government should also enhance its efficiency. For example, the Youth Hostel Scheme was first proposed in 2011, but its first batch of units has not been occupied until 2021. The youths back then have become grown-ups already.

Deputy President, the handling of land resources is never easy. Yet, land use is intertwined with every aspect of Hong Kong's development and people's livelihood. While the Government should be people-oriented in its administration, it should also understand that those who cannot afford to purchase properties are not interested in any explanation about rules and procedures. All they want to know is when they can have their own homes. I hope that the Government will have the courage to boldly increase land supply and make a breakthrough for Hong Kong's development.

Deputy President, I so submit.

MR HOLDEN CHOW (in Cantonese): Deputy President, first of all, I would like to thank Mr WONG Kwok-kin for moving the motion on "Increasing land supply on all fronts" today. I have noticed that a multi-pronged approach should be used to increase land supply and the motion has proposed many different ways and methods. We often mention the use of a multi-pronged approach, but more importantly, the faster and easier way of achieving the objective should be introduced first. That is our usual way of thinking.

Deputy President, regarding today's motion, I especially want to speak on one of the proposals. Some Frontier Closed Areas ("FCAs") in Hong Kong can be rezoned, such as Sha Tau Kok. Deputy President, I personally visited FCA Sha Tau Kok in an on-site study tour earlier. The person who is more familiar with this place is certainly my colleague Mr CHAN Hak-kan. I remember Mr CHAN often tells me that Sha Tau Kok has been FCA for a long time, which has limited its local development and restricted the local residents from meeting various needs for employment and economic development. After entering FCA, we learned that the residents there really wished to have new room for development so as to meet their needs for employment and economic development.

In fact, there is an opportunity now. The Mainland is exploring the possibility of rezoning or developing the Sha Tau Kok boundary control point on the Mainland side. This means that Sha Tau Kok in Shenzhen on the opposite 7168 LEGISLATIVE COUNCIL ― 9 June 2021 side will be further developed, which it may provide more opportunities for economic development and employment. If Sha Tau Kok on Hong Kong side can make good use of the land, which was originally FCA, by slightly changing its planning and positioning, the area will be enable to develop, and the local residents may also benefit from the new planning in development by having more opportunities for employment and economic development.

The two places are in close proximity to each other. People who have visited the places will know that basically, they are just a street apart. However, the Government has all along maintained that there is no need to review the matter or this is not the most urgent issue to be dealt with, so it simply sticks to the mentality of the British Hong Kong era. Since the place has always been FCA, it will continue to be so and no rezoning is necessary. However, today, noting the large-scale development in Shenzhen, has it provided any opportunities that facilitate the employment and economic development of Hong Kong people?

The Government often stresses the need to increase land supply, and short-, medium- and long-term planning are now in place. In terms of long-term planning, as Members may be aware, studies are being conducted on the project of artificial islands in the Central Waters, which will significantly increase the supply of land and land for long-term use. Therefore, I opine that we should also consider in this direction. However, which of the sites are more readily available for use? Sha Tau Kok is one. Can we change the planning model of Sha Tau Kok to increase land supply? Some people may also ask about the ancillary transport facilities. However, the Government should at least be determined to improve the planning of this area so that the local residents can travel to and from the adjacent Shenzhen quickly in the future. Members should not forget that Hong Kong is still developing Lok Ma Chau, and there will also be large-scale development in the district of Lok Ma Chau/San Tin. At least 57 hectares of land in the district will be used for future industrial and technological development, and the Loop just lies adjacent to it. Thus, I would consider it a more appropriate approach to provide more land to accommodate the local people and provide job opportunities in the surrounding area. Deputy President, these are the views I would like to express in this regard.

Deputy President, I so submit.

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MR CHAN HAN-PAN (in Cantonese): Deputy President, I speak in support of this motion. In fact, I believe given the enormous housing demand, the Government has a bounden duty to develop land. I certainly know that the various government departments have been working very hard. As mentioned just now, the Secretary is so busy that his hair has turned white. However, as we can see, some people are living in very small subdivided units. For those who are tall, perhaps taller than Mr Steven HO, they can only sleep with their bodies curled up. This is really heart-breaking.

We are a bit blunt with the Government because of the problems we see. Land is being developed at a pathetically slow pace. Besides red tape and cumbersome procedures, some departments even deliberately sat on the files and worked on them only after many years. Such bureaucracy is really frustrating. I believe while we feel frustrated, members of the public are even more frustrated.

Leaving aside the development of other land, some land lots which have been designated for development still remain idle even to this day. As Mr LAU Kwok-fan has just said, of the sites that were gazetted at the same time, one has completed construction and is ready for sale, whereas the other belonging to the Government is still grassy and unformed. Land formation will be followed by planning before it is passed to another department for drainage works, which will take quite some time. As other developers are also required to go through all these procedures, why would they complete so quickly but the Government is so slow? Can the Government expedite its work to address people's pressing needs? "Striving ahead" means adopting a revolutionary mindset to deal with a myriad of issues. If the Government refuses to adopt a revolutionary spirit but sticks to the red tape and cumbersome procedures, it will be utterly impossible to address the development issues.

Developing new land is certainly a difficult task. As the development of the periphery of country parks has aroused controversy, the Government thus put the plan on hold. As the relocation of container terminals has also aroused controversy, the Government again shelved the plan. All controversial plans have been put on hold. What about the reclamation in the Central Waters? Have the fishermen not taken issue with that? Have the concern groups not spoken up? Why did the Government still press on? These projects have to go ahead despite controversy, and should not be put on hold in the face of controversies given that there is a genuine shortage of land. Do members of the 7170 LEGISLATIVE COUNCIL ― 9 June 2021 public strongly feel the shortage of land only now? No, but because they can see a lot of unused land everywhere. Of course, the Government would say that some of these land lots do not belong to it, but some of them do belong to it.

I have assisted some organizations with their applications for use of government land, but was subsequently caught in a weird loop of requests by government departments to submit this and that. An organization intended to make an application in respect of two small land lots, but was requested by the Government to submit one application form for those two land lots. After the organization failed to do so, the Government then requested it to submit two application forms. The organization has waited for two years to make an application for using the unused land, and after it submitted the two application forms as requested, the Government indicated that consultation would have to be conducted, which might take another year. The organization just wanted to farm on the unused land, but it had to wait for three years. Such cases are very common, and are also found in land and housing development. Earlier on, I suggested that the Government should take new measures to expedite the redevelopment of old areas. For example, no redevelopment has been carried out in Tsuen Wan due to the low plot ratio. Therefore, I suggested the Government to suitably raise the plot ratio of old areas to increase their attractiveness. At that time, the Government gave a positive response. However, to this day, I still have not seen the implementation of such measures. Nor is there any news about the redevelopment of Tsuen Wan.

While I believe time is the solution to problems, time has also attracted many strong views about the Government's administration. As Members, especially those returned by direct elections like me, we always feel puzzled and perplexed when facing these issues in the front line. However, I hope that the Secretary can work harder, hang in there and expedite the work. Thank you.

MR CHAN KIN-POR (in Cantonese): Deputy President, the housing problem has long plagued Hong Kong and it is our foremost deep-seated problem. At present, Hong Kong has improved the electoral system. Everything is now back on track and the Government can implement the executive-led system. So, it is time for us to make up our mind to thoroughly solve the problem at root so that members of the public can truly live and work in peace and contentment.

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The proposals of Mr WONG Kwok-kin's original motion include developing sites on the periphery of country parks and taking forward the project of artificial islands in the Central Waters. I support all these proposals. Due to time constraints, I particularly want to talk about the proposals in Mr Tony TSE's amendment, such as streamlining and expediting the land development, planning and approval procedures.

The Legislative Council has recently discussed the New Territories North development project and the Government intends to apply for funding this year. If the funding application is approved, the investigation study and detailed design for the works of the San Tin/Lok Ma Chau Development Node will commence. The construction works will commence in 2025 with full intake of population by 2034. In other words, the overall planning will take more than 10 years. Our pace of development is no longer comparable to that of China, and has lagged far behind that before the return of sovereignty. Back then, the planning and construction of the new airport, the Airport Express, Route 3 and the Tung Chung New Town all took less than 10 years.

There are institutional problems at present. During the grand debate on land supply conducted a few years ago, someone made an analogy: Turning land into housing units for occupation is just like turning flour into bread. He remarked that if the bread maker is out of order, it would take very long time to bake the bread regardless of how much flour we obtain. So long as the bread maker is not fixed, the problem will basically remain unsolved.

The land issue stems from the planning and approval procedures. Land and housing planning in Hong Kong involves two Policy Bureaux and multiple departments and there is fragmentation of responsibilities. Each department has its own responsibilities and is not subordinate to one another, and all officials have to work in accordance with the laws and procedures. Worse still, there are more regulations and the relevant procedures are much more complicated and time-consuming than before the return of sovereignty. All applications must go through overlapping formalities of different departments, which is a serious waste of time.

As a few Members have pointed out just now, removing red tape is the solution. Now that an executive-led system can be implemented, the Government should therefore show its courage and establish a new planning system to drastically remove unnecessary procedures in the future. I suggest 7172 LEGISLATIVE COUNCIL ― 9 June 2021 that all departments should simply merge together to consolidate the fragmented responsibilities under the coordination of one director of bureau. Even if we cannot merge all the departments, they should fully cooperate and perform their own duties. After all, officials should know best what to do and how to merge. I hope that they can weigh this up seriously.

The Government must fix the bread maker; otherwise, even if flour is found, nothing can be done but wait. Thank you, Deputy President.

MR CHRISTOPHER CHEUNG (in Cantonese): Deputy President, the problem of land and housing raised by Mr WONG Kwok-kin today has spanned four terms of office of the Chief Executive, and has been the foremost one faced by each term of the Government. The current-term Government has devoted a lot of efforts in the problem of land. In October 2018, Chief Executive proposed for the first time the "Lantau Tomorrow Vision", under which the Government plans to carry out phased reclamation in the waters off Hei Ling Chau for the construction of artificial islands with a total area of 1 700 hectares. In the first phase, the project will provide 150 000 to 260 000 units, of which 70% being public housing. Ultimately, the entire project provides 260 000 to 400 000 residential units, which could accommodate a population of 700 000 to 1.1 million. The proposal is indeed forward-looking, and can provide a lot of land for comprehensive planning. However, if everything goes smoothly, the first batch of residential units will only be completed in 2034. This created an impression that the project cannot provide a solution to the imminent problems.

As seen from the recent exuberance of the property market, the developers sold out their flats very quickly. In reply to my question raised at the meeting of the Panel on Financial Affairs this Monday, the Financial Secretary stressed that the current property market was led by sellers and local and foreign investors only represented an extremely small proportion. This showed that the demand for residential housing was inelastic, and there is no question of speculation at all. Under the "Lantau Tomorrow Vision", the Government plans to produce several hundreds of thousands of housing units, which is actually a good proposal. However, the Government must rationalize the housing policy to address the short- and medium-term housing demand in Hong Kong.

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Taking the study on the housing construction on the periphery of country parks as an example, as there were voices that protecting country parks was more important back then, the Development Bureau decided to end the study halfway. However, this proposal can really provide Hong Kong with a lot of quality land for housing development in the short and medium terms. Deputy President, I am not saying that protecting the environment is not important. I also understand the aspirations of the majority of the public. However, at present, there are 24 country parks and 22 special areas in Hong Kong, accounting for an area of 443 sq km. In view of the need for conservation and the deep-seated problem of land and housing shortage, the Government should flexibly handle the country park areas in the light of the actual demand in a people-oriented manner, and should not stick to established practice. The Government must show its courage, boldness and leadership.

On the premise of protecting most of the country parks, the planning of only 3% (around 10 sq km) of the sites with relatively low ecological value on the periphery of country parks and the green belt areas located between urban areas and country parks for housing construction, providing 200 000 residential units, will not only have no impact on the overall conservation of country parks, but will also balance the development needs. The advantages for Hong Kong have far outweighed the disadvantages. The Government should really seize this opportunity to first conduct a preliminary study on the aforesaid proposal before putting it forward for deliberation by the community.

Deputy President, we must not waste any more time and the housing policy has to be settled urgently. While I support the major direction of the original motion, I think that some measures, including the introduction of an idle land tax, need further study and are not very desirable. Except for the amendment of Ir Dr LO Wai-kwok, I will abstain from voting on other amendments. I so submit.

MR SHIU KA-FAI (in Cantonese): Deputy President, first of all, I thank Mr WONG Kwok-kin for proposing the original motion. It is believed that "increasing land supply on all fronts" is currently the foremost problem in Hong Kong. After the improvement in the electoral system, I think that political conflicts in Hong Kong will be rather scanty in future. It is thus the expectation of this Council and Hong Kong people for the Government to focus on improving people's livelihood, and housing issue is certainly the top priority. So, it is 7174 LEGISLATIVE COUNCIL ― 9 June 2021 appropriate and timely for Mr WONG Kwok-kin to propose this original motion today. I would also like to thank the other four Members, including Mr Tony TSE, Mr Steven HO, Dr Junius HO and Ir Dr LO Wai-kwok, for proposing amendments.

I very much agree to most of the proposals made by Mr WONG Kwok-kin in his original motion. Firstly, he suggests "expeditiously taking forward the project of artificial islands in the Central Waters, and reviewing the scope of application of the Protection of the Harbour Ordinance". To put it simply, he suggests reclamation. The Lantau Tomorrow project under discussion is one of the important ways to create land, I therefore strongly support it and agree to Mr WONG's first proposal.

His second proposal is "developing sites with relatively low ecological value on the periphery of country parks for housing construction". Of the total land area of about 1 100 sq km in Hong Kong, some 25% (i.e. about 277 sq km) is developed land, among which 6.9% to 7% is used for housing, 5.9% for infrastructure development, 2.7% for commercial purpose, 2.3% for government and community facilities and 2.3% for open space, making a total of about 25% of developed land. When compared with Singapore, despite a population of only 5 million, over 80% of its land is developed land whereas that of Hong Kong is merely 25%. Thus, Singapore has an average living space per person of 323 sq ft, which is double that of Hong Kong's 161 sq ft. As Members may be aware, the reason is because some of our country park sites are "untouchable". I think we should reconsider this seriously and explore the way forward.

His third proposal is "expediting the development of the land of the former Frontier Closed Area". I also agree with and support this proposal for it is a waste of resources to leave the land in Sha Tau Kok and other places idle.

His fourth proposal is "proactively invoking the Lands Resumption Ordinance". This Ordinance is precisely the "imperial sword" for resuming private properties that Members often said. If a certain piece of land involves substantial public interests, e.g. only three people are farming on a huge site of 100 000 sq ft and they refuse to leave, it would be natural for the Government to figure out ways to resume it for housing construction. However, if the Government uses the "imperial sword" "proactively", it will slightly deviate from the legislative intent because the "imperial sword" should only be used when there is no alternative. I wish to draw Members' attention to the concept of LEGISLATIVE COUNCIL ― 9 June 2021 7175

"proactively when there is no alternative", because in Hong Kong, balance must be struck among many private property rights. However, if there involves substantial public interests, we will definitely support the invocation of the Ordinance. And yet, we do have reservation about the word "proactively".

His fifth proposal is "improving the existing rehousing and compensation policies for land resumption", which means to increase compensation; and "streamlining the lengthy process of land use study and planning by government departments" that we often discuss, e.g. the long lead time taken by the Town Planning Board. I hope that the Government will expeditiously streamline the process, or else housing construction may not be possible even with the availability of land.

His sixth proposal is "unleashing the potential of land by raising the highest development density of land in the New Territories", which I have all along supported. Given that the houses have only three storeys at present, they should be able to accommodate more residents if they can be built higher. If the houses can be changed from three storeys to 30 storeys, it should be able to accommodate 10 times more residents. This is worthy of consideration.

Regarding his seventh proposal, which is "conducting studies on the relocation of large-scale facilities, such as the Fanling Golf Course", I am sorry that I cannot support it. Although we have long been advocating that Hong Kong should develop on all fronts, it makes no sense to demolish the Government House for housing construction. Some places, such as international golf course, must be preserved. As we have repeated time and again, there should not be lopsided support for any single sports, so we are sorry that we cannot support this proposal.

His eighth proposal is "striking a balance between land development and ecological conservation" and discussing with developers about their relevant responsibilities. We also support this proposal. However, just as I said earlier on, since the motion has mentioned the Fanling Golf Course, we have reservation about it.

As for the amendments proposed by the four Members, only the one proposed by Ir Dr LO Wai-kwok has deleted the reference to "the Fanling Golf Course" whereas the other three Members have not, I therefore find it hard to 7176 LEGISLATIVE COUNCIL ― 9 June 2021 support them. My last point is about foreign workers. If Hong Kong does not import foreign workers, the Secretary cannot possibly expect property prices to come down. Thank you.

MR LEUNG CHE-CHEUNG (in Cantonese): Deputy President, I would first like to thank Mr WONG Kwok-kin for proposing the motion on "Increasing land supply on all fronts". This motion has indeed invited diverse views from Members and attracted different viewpoints on land supply.

I recall that the Chief Executive has already launched the grand debate on land supply when assuming office in 2018. Just now, the Secretary also briefly mentioned that there are eight options that should take priority in increasing land supply. Most of these eight options seek to increase land supply in the long run, with two of them capable of solving the problem immediately. They include existing planned land, e.g. the developments in Hung Shui Kiu, Kam Tin South and Kwu Tung North, which cover a total of 720 hectares of land. The other is the development of brownfield sites, including part of the land in Hung Shui Kiu, but the size is not enough to meet or make up for the present shortfall in housing supply in Hong Kong.

Another point is about the public-private partnership. So far, I cannot see any of the major or powerful developers negotiating or collaborating with the Government on building public housing. In our view, the conclusion derived from the grand debate on land supply is that, in order to genuinely solve the problem, the Government should come up with land development options that can set people's mind at ease.

As regards Kau Yi Chau or even caverns, they are all high-sounding but empty proposals whereby housing developments will only be completed after at least 20 to 30 years. With regard to these developments, people may think that they are merely empty talk of the Government as the generated land supply would only benefit their grandchildren. Therefore, Secretary, in order to expeditiously increase land supply on all fronts, is it possible to improve the approach of public-private partnership to induce more private land owners to collaborate with the Government? Take the "ancestral lands" as an example. How can the Government lure the owners of such lands to collaborate with it? Given that not LEGISLATIVE COUNCIL ― 9 June 2021 7177 all "ancestral lands" are owned by individuals, why does the Government not consider striving for enhanced collaboration with these owners? I hope that the Secretary will consider increasing land supply with a new mindset.

Second, I think that there is something wrong with the land resumption process. The authorities resumed three land lots last month, which I think is fantastic. In my view, this is an attempt to try out and there should be more sites to come. Through resumption, the Government has turned these idle land lots into useful sites. Can this practice be extended to agricultural lands under public and private ownerships that are genuinely idling under the sun? It seems that the Secretary has only set his eyes on land parcels under public-private partnership while continuing to leave other sites lie idle under the sun. How can this help secure more land for housing construction for the people?

Therefore, I think that the SAR Government should come up with some new ideas in respect of compensation. Currently, only the so-called "new town land" will be acquired at Zone A rates, whereas the rest belong to Compensation Zone B or even Zone C and Zone D. As land owners think that this is an attempt of the Government to seize people's properties, they will not surrender their land to the Government on their own initiatives as the rates are too low. What is more, surrendering their land to the Government is tantamount to killing the goose that lays golden eggs as they will lose their source of income. In this connection, should the Government review the compensation arrangement under the existing land resumption policy so as to induce more land owners to surrender their sites to the Government for development?

I so submit.

MR VINCENT CHENG (in Cantonese): Deputy President, first, I would like to thank Mr WONG Kwok-kin for proposing the original motion on "Increasing land supply on all fronts" today, which allows Members to rationalize the views expressed by various parties on how to increase land supply.

Certainly, the most important point is that the Government must have the determination and the power of execution to find and create land, as well as expedite the supply of public and private housing, especially the supply of public housing. In 2018, the current-term Government launched the grand debate on 7178 LEGISLATIVE COUNCIL ― 9 June 2021 land supply and appointed the Task Force on Land Supply. At end-2018, the Task Force put forward 18 proposals that could increase land supply, among them eight were priority options. However, while two and a half years have lapsed, a lot of government land and private land are still lying idle under the sun. They are not only found in the New Territories, there are also plenty in the urban areas.

Due to insufficient land supply, the huge housing demand of the public cannot be met. While members of the public have to pay more for flats, their living space is getting smaller and smaller. Many of them are living in subdivided units with an average area of less than 7 sq m. This is precisely where Hong Kong's long-term social conflict lies. Therefore, under the current rational parliamentary culture, I very much hope that the authorities can seize the present opportunity and time to increase land supply.

Deputy President, the right to accommodation is a right to which members of the public are entitled. Everyone was taken aback after learning that a parking space at the Peak costs $11.88 million, because it is really the most expensive in the world. A parking space alone costs more than $10 million. Residential property prices in Hong Kong are still rising continuously in the midst of the pandemic. So, the Government must be determined to tackle the problems of land and housing expeditiously.

The index of home purchase affordability of Hong Kong citizens has continued to rise all the year round, and is much higher than that of other places in the world. The ratio of mortgage payment to income reaches 77%, so a family may not be able to buy a flat even without eating and drinking for more than 20 years. Deputy President, this is the sad tragedy of this city. The Financial Secretary said two days ago that the property market had risen 3% in the first half of the year.

Deputy President, since the property prices have become seriously out of tune with people's incomes, many young generations can only purchase the Home Ownership Scheme ("HOS") flats as they cannot afford to buy other flats. Earlier on, the authorities set the HOS prices at 60% of the market price. This sounds good, but the supply is very limited. The situation in 2020 was a bit better with more than 7 000 HOS flat units available, but there will only be 6 000-odd and 3 000-odd flat units available in the days to come. It is impossible for the public to buy HOS flats at all. Like many grass-roots families, they have waited for five to six years but are still not allocated any PRH units. This is why they have to turn to the private residential market.

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However, the current problem of poverty in Hong Kong has remained unresolved and more than 200 000 people have chosen to live in subdivided units. Since the Under Secretary is also present, I wish to point out that it is good to implement rent control for subdivided units, rental subsidy and transitional housing, but these measures can only provide some relief temporarily. If the problems still remain unresolved and those living in subdivided units are still not allocated any PRH flats, the needs of the community can hardly be met no matter how many transitional housing units have been provided.

Secretary, I once had a meeting with the colleagues of the Urban Renewal Authority and raised a lot of questions about building maintenance, lift maintenance, fire safety and so on, but the work progress has become slower of late. Given that the buildings are ageing, the Secretary must compete with time. Besides, some think tanks and scholars have done some computations for the Government. During the 10 years from 2015 to 2025, the number of public housing units which can actually be produced by the Government fails to meet the target and is far below the target set under the Long Term Housing Strategy. There is a shortfall of 100 000 units in total, which is equivalent to the number of units provided by 15 redeveloped So Uk Estate. Therefore, there is still a long way to go before the target can be reached.

As pointed out by a think tank, Our Hong Kong Foundation, the number of public housing units which will be completed in the coming four to five years is still lagging far behind the target. Therefore, to resolve this deep-seated conflict over housing, increasing land supply on all fronts should be the top priority. Earlier on, some renowned people have proposed using the periphery of country parks and allocating 100 hectares of the land of the Tai Lam Country Park for the construction of 20 000 to 30 000 HOS units to be sold at a standardized per-square-foot cost of $6,000. These are the issues discussed by Members. DAB previously advocated invoking the Lands Resumption Ordinance, which has been mentioned by Members earlier. This is a good suggestion, but only three pieces of land will be resumed. Will more land be resumed later on? Can the supply be further increased?

Deputy President, this topic can be discussed for a long time, but I only wish to reiterate one point, that is, I hope that the Bureau can really fasten its pace, because I have witnessed the construction procedures of many public housing estates. Can the Bureau expedite the construction? Have the standards of accountability been put in place? If the Bureau fails to meet the 7180 LEGISLATIVE COUNCIL ― 9 June 2021 target, can it be held accountable? Why must the process take so long? Deputy President, apart from increasing land supply, I expect that in the future, all government officials, the Housing Department and so on must properly contemplate how to speed up the progress. Secretaries, the grass-roots tenants are facing great hardship, so I hope that under the present parliamentary culture which allows the rationalization of views, we can work together to increase land supply as soon as possible. Thank you, Deputy President.

MS ELIZABETH QUAT (in Cantonese): First, I would like to thank Mr WONG Kwok-kin for moving the motion on "Increasing land supply on all fronts". I absolutely agree that the shortage of land has become the biggest obstacle to development in Hong Kong. Thus, I strongly support all the proposals made in the motion, which include "requests the Government to exhaust all means to increase the short-, medium- and long-term land supply on all fronts and expedite the land development and planning procedures, thereby increasing the housing supply and speeding up industries' development".

Deputy President, I believe housing is the most deep-rooted problem in Hong Kong which affects people's hearts most. Rent and property prices are so expensive in Hong Kong that those who cannot afford to rent a flat have to turn to subdivided units; if they cannot even afford to rent a subdivided unit, they will have no choice but to rent capsule-like accommodation. Property prices have gone way beyond people's affordability, and even a parking space costs more than $10 million, which is more expensive than a housing unit. While people are paying more and more for accommodation, they are living in smaller and smaller units. Hong Kong people often say that they cannot even afford a shelter, let alone to get married and have children. The population of Hong Kong is ageing, but even if young people save for decades and work extremely hard, they cannot afford to buy a small place of their own to live. They can neither afford to buy property nor see hope, and they are very disappointed with Hong Kong. The commercial sector has also been seriously affected. Since rent and everything are expensive, the business environment in Hong Kong is adversely affected. Community facilities in Hong Kong are inadequate and many facilities cannot be built because no land is available. There is a shortage of residential care homes for the elderly and the disabled as well as other facilities. There is nothing we can do but wait.

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In the past, many opposition Members said that land and housing was a very important matter of top priority, but every time the Government put forward a proposal, be it concerned with reclamation or the development of North East New Territories, they simply opposed for the sake of opposition. They indefinitely delayed matters and stood in the way of development. Although people often complained about land shortage, there is plenty of land around them lying idle under the sun. They often asked why this and that piece of land cannot be developed and has been left idle under the sun for a long time, especially in areas close to the Frontier Closed Area ("FCA"). Shenzhen on the opposite side was originally agricultural land, but it is full of high-rise buildings now. I saw tall buildings on the opposite side, but barren and muddy land on this side, which I do not know for the purpose of reserving. On the one hand, we are told that there is no land; but on the other hand, we see land. It is just that the Government has not used it for housing construction.

The Government said that most of these sites were owned by private developers. I then asked the developers why the land was not used for housing construction and whether they wanted to hoard land to push up property prices. Many developers replied that they also wanted to keep selling properties, because it was very expensive and costly to stock up land. However, as some think tanks have said, private developers have to go through many government procedures from the purchase of agricultural land to planning and rezoning. It can easily take them 10 to 20 years, and in some cases, 20 to 30 years before they can build housing units for sale. Take the site for developing a housing estate at Ma On Shan as an example. It took the developer 23 years to turn the agricultural land into residential units, and there were many difficulties to overcome in the course of it. Thus, this motion proposes to find suitable sites for reclamation by all means; develop sites with relatively low ecological value on the periphery of country parks for housing construction, particularly to meet the needs of public housing; expedite the development of land of FCA; invoke the Lands Resumption Ordinance to resume idle residential land for rezoning, streamline the land development process as far as possible and unleash the potential of land.

Deputy President, all the proposals are very important and the Government should implement them all. The problems are not raised only today but long time ago, why hasn't the Government dealt with them all along? The most important purpose of the motion today is to urge the Government to seriously deal with the problems.

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Since a lot of land is owned by private developers, I think it is most important to streamline the procedures and remove the red tape. While the Government can develop land and expedite the process, it should also provide more expedient one-stop services to help private developers deal with their land. At present, the numerous hurdles posed by various government departments and the repeated public consultations have slowed down the entire planning and construction processes time and again, thereby making it difficult to meet the demand for land and housing even after a prolonged period of time. Therefore, I hope that the Government will consider ways to remove the red tape at each stage and streamline the procedures as far as possible, so that the Government or private developers can resume land and build housing units as quickly as possible to meet our demand for land and housing.

Deputy President, I so submit.

MR CHAN HAK-KAN (in Cantonese): Deputy President, first of all, I would like to thank Mr WONG Kwok-kin for proposing the motion on "Increasing land supply on all fronts" today, and Mr Steven HO for proposing the amendment, which adds some very meaningful content. Deputy President, we have discussed this subject in the Council numerous times, more than we can count with our fingers and toes.

As many colleagues have just pointed out, the most pressing tasks for Hong Kong are to resolve housing problems, increase land supply, develop the periphery of country parks, carry out reclamation and streamline relevant processes, all of which I agree with. However, very little has been said about a topic raised in Mr Steven HO's amendment. I would like to spend my speaking time on "amending the stipulations in the New Territories Ordinance on the sale of Tso/Tong lands to release the development potential of such lands".

Deputy President, I wonder if you have watched a television programme about Tsos/Tongs recently. I discovered that Tso/Tong lands cover an area of 2 400 hectares across the territories, even larger than the total area of land to be generated by the Lantau Tomorrow Vision project costing hundreds of billions of dollars. Therefore, the release of these 2 400 hectares of Tso/Tong lands will be highly conducive to increasing land supply and stabilizing property prices in Hong Kong. I know that television viewers may not have any idea about Tso/Tong lands. Simply put, Tso/Tong lands are ancestral land, that is, the land LEGISLATIVE COUNCIL ― 9 June 2021 7183 bequeathed by an ancestor to his descendants. Even if the descendants go broke or bankrupt in the future, they can still support themselves with the money generated from the land. When there is a need to renovate the ancestral hall or conduct road works, the costs can be paid from the money generated by the Tso/Tong lands. However, Tso/Tong lands have all become brownfield sites, storage facilities or car parks now. The effectiveness of such land uses is very low.

On many occasions when someone wishes to develop Tso/Tong lands, there were bound to be difficulties during the merger and acquisition of such lands. It could be that one or two descendants were not willing to sell the piece of Tso/Tong land, thus bringing the entire development of the land to a halt. Quite a number of large-scale land development projects got stuck due to a piece of Tso/Tong land in the middle, just like a hole in cheese. As a consequence, no development can be carried out on the whole piece of land covering an area of dozens or even hundreds of hectares. Is this beneficial to the community at large?

There is a very important problem with the development of Tso/Tong lands, and that is the inaction of the Government. This certainly has nothing to do with the three Directors of Bureaux present at the meeting as it is more of a matter of home affairs. Under the New Territories Ordinance, the consent issued by the Home Affairs Department, the Home Affairs Bureau or District Officers is required for the transactions of Tso/Tong lands. As we all know, the responsible officers would say that Tso/Tong lands can only be sold with 100% consent of the descendants, and the transaction cannot proceed so long as one of them objects. But how on earth is it possible to obtain 100% consent of the descendants? Basically, it is impossible. The Secretary has dealt with so many development projects. Is there any one of them that has obtained unanimous support from the people in the area concerned? Therefore, many development projects involving Tso/Tong lands have got stuck just because of one or two persons.

Deputy President, I have four files in hand which are all related to the development of Tso/Tong lands. The earliest one dates back to 2008. At that time, efforts had been made to complete the transaction of a piece of Tso/Tong land, but could not make it because of the opposition of one or two persons. The transaction has then been stuck in a stalemate for 13 years. Another case is even more preposterous. A son, who has transferred the title to a piece of Tso/Tong 7184 LEGISLATIVE COUNCIL ― 9 June 2021 land to his father, subsequently opposed to the development of the land. Even a court ruling had been handed down, but the Home Affairs Department still refused to issue the consent to the sale of the Tso/Tong land. We can see that this is the cause that has hindered many development projects.

Therefore, I would like to put forth two suggestions to the Secretary here. Firstly, should the Government slightly lower the threshold for the sale of Tso/Tong lands? If it is impossible to secure 100% consent, can the requirement be lowered to, say, 90% or 80%? I have no idea because I do not have any figures with me at the moment. Secondly, as I have just mentioned, some stakeholders of the Tso/Tong lands concerned may raise objections, but it does not matter. When the land is developed and buildings are completed in the future, the parts in respect of which objections have been raised can be designated for the provision of public facilities. This is a win-win solution because this will not draw criticisms that the Secretary favours the descendants who wish to sell Tso/Tong lands, and existing land can also be released for development. That 2 400 hectares of land is in no way a small parcel. If we can develop or unleash such lands for development, many housing supply problems can be resolved instantly. Therefore, I implore the Secretary to go back and consider the suggestions seriously.

MS YUNG HOI-YAN (in Cantonese): Deputy President, land shortage has become the most acute problem in Hong Kong, directly resulting in the serious demand-supply imbalance in residential flats in Hong Kong, causing rents and property prices to remain persistently high in recent years and even hit record high time and again. With property prices still on a rising trend amid the epidemic, the dream of the general public to purchase homes is becoming more and more distant.

In this year's Report on the Work of the Government, Premier of the State Council Mr LI Keqiang pointed out that the housing needs of the people should be guaranteed and the outstanding housing problem in big cities should be solved by insisting on the positioning that "housing is for living in, not for speculation", and the specific method includes increasing land supply. During a meeting with Hong Kong deputies to the National People's Congress during the two Sessions this year, Vice-Premier of the State Council Mr HAN Zheng who is in charge of Hong Kong and Macao affairs also reminded us that if Hong Kong was to achieve stability, the housing problem had to be solved. The serious housing problem in LEGISLATIVE COUNCIL ― 9 June 2021 7185

Hong Kong has not only aroused concern of the top echelons of the Central Authorities, but has also prompted our national leaders to voice their opinions time and again. Therefore, increasing land supply on all fronts is the most urgent task for Hong Kong.

The land shortage problem has been plaguing Hong Kong for a long time. During the public consultation on Enhancing Land Supply Strategy in 2011, the Government proposed the options of reclamation outside Victoria Harbour and rock cavern development. Subsequently, in September 2017, the Chief Executive decided to set up a Task Force on Land Supply ("the Task Force") to examine various land supply options in Hong Kong and to collect and analyse public views. In the report published in late December 2018, the Task Force recommended the Government to accord priority to studying and implementing eight land supply options set out in the consultation document, namely developing brownfield sites, tapping into private agricultural land reserve in the New Territories, developing the East Lantau Metropolis, expeditiously taking forward the New Development Area ("NDA") projects including those of North East New Territories and Hung Shui Kiu, alternative uses of sites under private recreational leases (including examining whether the Fanling Golf Course should be resumed), and near-shore reclamation outside Victoria Harbour, developing caverns and underground space, and developing the River Trade Terminal site in Tuen Mun West.

In fact, most of these options, including the development of the East Lantau Metropolis, have already been rolled out upon many rounds of studies. In Mr WONG Kwok-kin's original motion and other Members' amendments, there was no mention of whether the artificial islands in the Central Waters should be shelved or proceed forthwith. I believe most Members may think that this project will commence at any time and the implementation is inevitable and definite, but why such other land as the periphery of country parks has not been developed or no relevant studies on country parks have been conducted? While the Government has mentioned in the report that this is not a priority option, why do we not develop country parks when we are to develop the East Lantau Metropolis? I think the Government should conduct further studies on this aspect.

Deputy President, the Government has conducted at least two studies as well as debates and public consultations on land supply in the past 10 years. However, no matter how many proposals the Government has put forward or how 7186 LEGISLATIVE COUNCIL ― 9 June 2021 many public consultations it has launched, there has yet to be a breakthrough. The SAR Government must show determination and take resolute policies and measures to find a viable way out to increase land supply.

Besides, I noticed that a Member's amendment and Mr CHAN Hak-kan's earlier speech have mentioned the use of Tso/Tong lands and ways to release more Tso/Tong lands. Regarding land in the New Territories, I think that the Government should give more consideration to small house development and examine whether there are multi-storey small houses for public use, or whether some of the land can be released for alternative uses. I believe the Rural Committees will support this idea as more small house owners can then acquire their first home and move into small houses as soon as possible. I hope that the Government will conduct studies on small houses and consult different villages so as to release more land in various ways.

With regard to reclamation outside Victoria Harbour, reclamation is surely inevitable and we wish to draw reference from the practice of Singapore. As regards increasing land supply, there are a few points worthy of our consideration, such as the Disneyland site and enhancing urban renewal efforts (The buzzer sounded) …

DEPUTY PRESIDENT (in Cantonese): Ms YUNG Hoi-yan, your speaking time is up.

MR KENNETH LAU (in Cantonese): Deputy President, since the return of sovereignty, housing prices and rents in Hong Kong have been steadily rising. For the middle class, home ownership has gradually become an unattainable dream; for the grass-roots people, waiting for public housing is like waiting in vain. After the current-term Government assumed office, the Task Force on Land Supply was set up for extensive site search. From a long-term perspective, the development of new land resources is the trend; as for short-term supply, the living environment of grass-roots people is deteriorating, so the Government should take bold action to identify land for housing construction within a short time.

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Today, I will mainly discuss two aspects of this issue. To expedite site search, one of the suggestions is to open up the Sha Tau Kok Town Frontier Closed Area ("FCA") and make good use of the idle land in the area.

Back in 2017, i.e. shortly after the beginning of the term of office of the current-term Legislative Council, I raised an oral question on the feasibility of opening up the Sha Tau Kok Town FCA. The Sha Tau Kok Town is located at the Shenzhen-Hong Kong border and there is a lot of idle land available for use. Coupled with the relocation of Shenzhen-Hong Kong boundary control points and complementing the development of the Greater Bay Area, the Sha Tau Kok Town definitely has the potential for development into a new border town.

The four rural committees in North District, New Territories, agreed that the Government should lift the restrictions on the Sha Tau Kok Town, and local residents had no objections either, but the Government refused to consider for security reasons, worrying that smuggling cases might increase. I have proposed time and again to step up police patrol against smuggling during weekends or holidays on trial basis, but the Government has yet to accept my proposal. I hope that the Government can change its mindset and stop wasting land resources at the border for no reason.

On the second aspect, there have recently been heated discussions on invoking the Lands Resumption Ordinance ("the Ordinance") to resume land for public housing construction. While the Ordinance is the "imperial sword" of the Government, I must remind it that the criteria of compensation in the Ordinance are legally contradictory. On the one hand, it specifies that the potential value of the land is not considered; on the other hand, it clearly specifies that the market value should be considered in land resumption. In fact, land resumption on grounds of public interests is also contrary to the principle of protecting private property rights.

The Government currently acquires farmland or Tso/Tong lands in the New Territories at a price between $300 and more than $1,300 per sq ft, but the landowners cannot buy back land lot of similar size in the same district at the same price. Take the area around the Yuen Long Station on the West Rail line as an example. If a land lot is resumed by the Government with Zone A compensation (i.e. $1,300) and is subsequently sold to developers for housing construction under the land application list system, the per-square-foot price will 7188 LEGISLATIVE COUNCIL ― 9 June 2021 be no less than $6,000 and the selling prices of the housing units upon completion can exceed $10,000 per sq ft. This practice of acquiring land from villagers at lower prices and reselling the land to developers at higher prices is utterly unfair.

In fact, this ex-gratia zonal compensation system consisting of four compensation zones is behind the times. The improved transportation network at present has pushed up the prices of land and housing in the New Territories but the Government still uses the basic ex-gratia compensation rate in the Sir Y K KAN Working Group Report in 1978 with reference to the value of land in the towns of Tsuen Wan, Sha Tin and Tuen Mun. It is time to make adjustments because the rental returns of some brownfield sites are high, but the Government has not considered the actual value of the land. With Heung Yee Kuk playing the role of a lobbyist in the past, landowners were willing to accept land resumption, but this does not mean that the system has worked well.

In fact, the indigenous residents of the New Territories do not want all their Tso/Tong lands be resumed, so Heung Yee Kuk has suggested that the Government should cooperate with Tsos and Tongs in land development. As a certain percentage of the properties will be allocated to Tsos and Tongs upon completion, the system of Tsos and Tongs can thus be passed on.

Deputy President, the Government should review the existing ex-gratia zonal compensation system to ensure that the amounts of compensation for land resumption will not be out of line with the market prices, and not to adopt a difficult rather than an easy approach in site search.

I declare that I am a member of the Hong Kong Golf Club and also hold land in the New Territories. Thank you, Deputy President.

MR MA FUNG-KWOK (in Cantonese): Deputy President, the land issue should be the most difficult and compelling issue to be solved in Hong Kong. In addition to housing, land is also required in respect of healthcare, social welfare, education, culture and recreation, transport infrastructure and commercial development, etc. and different uses of land are competing with one another. I remember that when I was re-elected as a Member of this Council in 2012, the first task was to oppose the Government's proposal to convert land of the Kai Tak Multi-purpose Sports Complex to land for housing construction. With only nine lids for ten teapots, different policy areas have to compete for land and this is the biggest culprit in restricting the development of Hong Kong.

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While the last-term Government had accorded top priority to resolving the land issue, the current-term Government has also accorded top priority to increasing land supply and conducted a grand debate on land that lasted one and a half years, setting out different options on increasing land supply. Deputy President, I affirm the Government's efforts to open up more land. And yet, the objective reality is that the speed at which the Government provides additional land has not only failed to catch up, but is lagging further behind. The study conducted by Our Hong Kong Foundation earlier on points out that Hong Kong is caught in a deadlock of triple lows, namely low spade-ready land supply, low housing completions and low quality of living. The cumulative shortfall of public and private housing units in the past eight years is equivalent to 1.6 Taikoo Shing and 13.5 Choi Hung Estate.

Secretary Michael WONG highlighted the harsh reality last week. According to the existing procedures, it generally takes at least six years to transform "primitive land" into "space-ready sites". I have been very much concerned about the annual figures of land formation by the Government. Within four years from 2003 to 2007, the Government's land formation each year was more than 90 hectares; but within 13 years from 2008 to 2020, the average land formation each year was only 18 hectares, representing only 20% of the previous figure. I am afraid the land issue that we are facing is more serious than having only nine lids for ten teapots, as there are probably only seven lids for ten teapots.

Facing acute land shortage, the Government should expeditiously meet the demand for land in an eclectic and multi-faceted manner on all fronts as far as practicable. On the whole, I support Mr WONG Kwok-kin's motion, but would like to highlight my specific reservation about the motion and raise an additional point. I have reservation because even though there is an acute shortage of land, we must avoid scrambling for land. The motion proposes to conduct studies on the relocation of the Fanling Golf Course, which I have strong reservation about. Deputy President, the Fanling Golf Course is the main training ground for Hong Kong's golf team. It has a long history and there are a number of monuments worth preservation, including the official residence of the Chief Executive which has been listed as a Grade I historic building. Once the proposal on the relocation of the golf course is implemented, green space needed in the surrounding area will be gone. Instead of arbitrarily changing the location of the golf course, we believe the operator of the golf course should be asked to meet the overall requirements of society. I trust that the loss will outweigh the gain if the golf course is arbitrarily relocated.

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I would like to emphasize that society should not resolve the land issue by sacrificing the needs in other policy areas. Instead, land should be developed to increase capacity so as to get temporary solution and effect permanent cure. Hence, I would like to make an additional proposal to Mr WONG Kwok-kin's motion, i.e. we still need to negotiate with the Mainland authorities to explore the lease of large pieces of land surrounding the Mainland, or the creation of enclaves through reclamation to provide more options for increasing land supply in Hong Kong.

Deputy President, I so submit.

MS ALICE MAK (in Cantonese): Deputy President, talking about land supply, I certainly have a lot to say. However, due to time constraint, I will only focus on one point, that is, the proposed deletion of the phrase "introducing an idle land tax" from Mr WONG Kwok-kin's original motion in both the amendments of Mr Tony TSE and Ir Dr LO Wai-kwok. In this connection, FTU cannot support the aforesaid amendments.

In fact, land is not a commodity, but a necessity essential for people's survival and a necessary element for the development of this city. Living, community activities and commercial activities are inseparable from land, and the impact of land supply is immense, so the Government cannot leave any acts of land hoarding go unchecked. Leaving them go unchecked is tantamount to endorsement. An absence of regulation by the Government is an endorsement of land hoarding by some people. According to some media reports, several major developers have held nearly 100 million sq ft of agricultural land reserve. If some of the land held and hoarded by them could be used for development, many housing problems in Hong Kong would be resolved. The Government must address the land hoarding problem squarely. Thus, FTU has proposed introducing an idle land tax to increase the cost of land hoarding by consortiums and reduce their incentives to hoard land. This will increase the chips for land resumption by the Government and help build up an abundant land reserve, so that the Government can securely control the city's development direction and pace.

Some people asked: Why did Mr WONG Kwok-kin add the phrase "introducing an idle land tax" in the motion? If there had not been such a phrase, the motion would be passed unanimously when it was put to vote later on LEGISLATIVE COUNCIL ― 9 June 2021 7191 and no division would be needed. However, Deputy President, this is a matter of principle. We must voice out that in the Hong Kong community, no land hoarding should be allowed to stand in the way of land supply and housing development. Being a union serving grass roots, we have the responsibility to voice it out. If we do not voice it out, who else will do so? The Government should squarely address the problem of land hoarding rather than averting it. If some people say that the introduction of an idle land tax cannot resolve the problem of land hoarding, please ask them to tell us what method should be adopted. If the Secretary says later that an idle land tax is not feasible and will not introduce it as this cannot resolve the problem of land hoarding, please ask him to tell us what suggestions he will make. If some people say that the problem of land hoarding does not exist in Hong Kong, please ask them to tell us where that 100-odd million sq ft of land comes from and why they are there.

I believe some facts cannot be averted and must be dealt with. Otherwise, the problems of insufficient land supply and housing shortage will persist in Hong Kong. In fact, many places have also introduced an idle land tax. The ordinary and simple studies done by us have shown that our country, Taiwan of China, South Korea, the Philippines, Brazil, and Columbia have all introduced idle land tax. In Hong Kong, only a Building Covenant period is imposed, that is, the land bought is subject to a Building Covenant period. However, this is totally different from handling idle land and land hoarding. So, please do not tamper with concepts. Up till now, the Government has not squarely addressed the problem of land hoarding.

Besides, I wish to respond to Mr SHIU Ka-fai. After hearing the last sentence of his earlier speech, I really felt unhappy. He said that property prices would not go down without the importation of foreign workers. Does he have poor memory? He is about the same age as me. Has he forgotten whether property prices in the 1980s or the 1990s were high or low? Were there foreign workers at that time? Will property prices definitely go down with the importation of foreign workers? The root cause of high land and housing prices is insufficient land supply. Capital monopolization has existed in land and housing, which is also the root cause of the wide disparity between the rich and the poor in society. Why have Members of this Council still proposed to implement measures to widen the gap between the rich and the poor in society? Shouldn't Members give thought to people's livelihood? For this reason, we do not agree with the view that the importation of foreign workers can bring down property prices.

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The root cause of the problem is the shortage of land supply in Hong Kong. Taking the development of the New Territories North alone as an example, the Government applies for a funding of $1 billion in seven years to conduct studies only without planting even a blade of grass. It applies for a funding of $1 billion in seven years without planting even a blade of grass. What kind of speed is this? The Government must be courageous and bold to improve the existing rigid system of the Government, increase land supply, address those problems which have long existed in society and the system, and dare to challenge the parties with vested interests.

Deputy President, I so submit.

DEPUTY PRESIDENT (in Cantonese): Does any other Member wish to speak?

(Mr Abraham SHEK indicated his wish to speak)

DEPUTY PRESIDENT (in Cantonese): Mr Abraham SHEK, please speak.

MR ABRAHAM SHEK (in Cantonese): Deputy President, shortage of land is not a problem that emerges today. I do not want to talk about the days before the return of sovereignty. Over the past 24 years since the return, we discuss social issues in this air-conditioned Chamber every year. Members may imagine that at 40°C, some children have to study and live in a flat of some 100 sq ft. We make grandiose speeches here every year, but what has been done? Whenever the Government procrastinates on policy matters, the pro-establishment camp invariably expresses support. What "Class Monitor" Mr LIAO has just said is right. The problem is not shortage of land because there is a lot of land in Hong Kong. It lies in the selection of land, which is a matter of the system.

Just now, Mr LIAO also talked about the Government's political courage and determination in tackling problems, whereas Ms YUNG mentioned that the Central Authorities should give the Government an order. However, the Central Authorities have done two significant things. Firstly, we had been unable to legislate Article 23 of the Basic Law for fear of disputes, and that is why the National Security Law was enacted to maintain social stability. Secondly, the LEGISLATIVE COUNCIL ― 9 June 2021 7193

Government had resorted to political means for fear of controversy, which prompted the country to pass the decision on improving our electoral system. Now, we have to address this deep-seated social conflict of housing problems, though not requested by the country.

The cause of housing problems is shortage of land. Contrary to what Ms Alice MAK has said, land in Hong Kong is not controlled by property developers. The biggest landowner is the Hong Kong Government, who owns all the land. How is our land converted into housing sites? I can tell Ms MAK that there are four major ways: firstly, sale of land by the Government; secondly, grant of land by the Government; thirdly, rezoning of existing sites by the Government; fourthly, stepping up the relevant efforts. All these are under the control of the Government. Yet, its high land price policy has led to the problems plaguing Hong Kong today. Since the cost of flour is high, the bread is certainly expensive.

Just now, Ms MAK also reproached Mr SHIU over labour issues. Labour shortages occur sometimes, and the relevant figure has currently climbed to 8% to 9%. Nevertheless, regarding this matter, importation of labour is not a move against workers, but is aimed to maintain a stable labour supply in the whole market.

Deputy President, I would like to point out that even if land is available, it takes at least 6 to 10 years to turn "primitive land" into "spade-ready sites", as Secretary WONG mentioned on the last occasion. He has been working very hard to introduce reforms, but it should take only 27 months to complete housing development. The Government is unacceptably slow as private developers can do it in only three years. Previously, the latter needed around 5 years, but not as long as 10 years or even 20 years.

The government structure has to be reformed. We must have the courage to amend the existing ordinances. Many ordinances such as the town planning law should be revised to keep abreast of the times, but what will happen when the relevant proposals are submitted to the Legislative Council? Members will support the Government. While we have spoken so much in the Legislative Council today, 250 000 people are still waiting for public rental housing flats and over 100 000 people are living in subdivided units. For those elderly persons who are waiting for subsidized residential care places, some of them have passed away even before being admitted. We need to reform the government structure 7194 LEGISLATIVE COUNCIL ― 9 June 2021 so that the Government can understand and address the housing problems together with the people. It should not blame others anymore, which will only create more conflicts in society. We have to resolve housing problems together for the well-being of Hong Kong people. Thank you, Deputy President.

DR CHENG CHUNG-TAI (in Cantonese): Deputy President, the two Members' motions today are quite interesting and sound more like the debate topics before the Chief Executive election. I believe from now on until March next year, the issue of "increasing land supply on all fronts" will become a heated topic among the mainstream media and this Council.

As many Members have mentioned, the problems of land supply and housing did not emerge in Hong Kong overnight; neither were they left undiscussed till today. During this term of office, we have discussed them for at least two or three years, especially during the so-called grand debate on land supply. Yet, today, I wish to express some viewpoints from the perspective of 2021.

I do not agree with this motion, and I do not actually know what Members think about it. The characteristics of Hong Kong, be they tangible or not, are well-known to Hong Kong people. We are all clear about what are left for Hong Kong. In respect of land and housing development, I think there is a fundamental principle that we should uphold without crossing the line, i.e. we must not choose irreversible options that will deplete the public resources of Hong Kong in the process of development. It is now 2021. If we still look at the issue of land and housing supply in the same way as we did 20 or 30 years ago, I am afraid that we are really behind the curve.

What are the resources that we should safeguard without depleting them any further? What are the public resources that cannot be reversed after the development so that we must not cross the line? An example is, proposals to amend or review the Protection of the Harbour Ordinance should not be considered because the area of the Victoria Harbour has already become so small that one may almost swim across it. We should not leave Hong Kong without a harbour if we wish to fulfil our responsibility to the next generation. Of course, if some people do not like the name "Victoria", they might as well rename the harbour. If this name is considered to have colonial overtones, it can be changed.

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Next, speaking of country parks, Members may now think that there are too many green belts and country parks in Hong Kong. They are considered valueless when we do not need them. However, during the SARS outbreak in 2003 and in the recent two years, where did Hong Kong people go to get some fresh air? We only dared to take off our masks in uninhabited rural areas. Country parks are more than nature to Hong Kong, but are one of Hong Kong's characteristics. Where else on earth can we travel from city to nature in just one hour? The Country Parks Ordinance does not merely seek to protect the nature of Hong Kong. In the old days when Hong Kong was developed as a city-state, this Ordinance also distinguished Hong Kong from the Mainland of China. Public resources, especially trees, oceans and fresh air, cannot be replenished if used. Therefore, I would say that the fundamental principle of this motion debate is to discuss from the perspective of Hong Kong people who will continue to live here for long.

I do not support developing country parks or reviewing the Protection of the Harbour Ordinance. As for the suggestion relating to the golf course, I think there are still many other options available for us to explore. So, I consider my earlier discussion on country parks applicable to this suggestion.

Lastly, the suggestion concerning the Lands Resumption Ordinance is actually deficient as it is concerned with intangible public resources. If the Lands Resumption Ordinance is invoked frequently, this will undermine a precious but intangible tradition of Hong Kong, and that is, the protection of private property rights. Unfortunately, such protection is incomprehensive in Hong Kong. In this regard, my view is very simple. I think we may discuss this suggestion, but all of us present should know that there is little room for amendment. We can at most review the relevant land resumption and compensation procedures to reduce the administrative costs. (The buzzer sounded)

I so submit.

DEPUTY PRESIDENT (in Cantonese): Dr CHENG Chung-tai, your speaking time is up.

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MRS REGINA IP (in Cantonese): Deputy President, first of all, I thank Mr WONG Kwok-kin for proposing this important motion for debate and I also thank a few colleagues for proposing the amendments. The fact that a few colleagues have put forward proposals on increasing land and housing supply showed that they are well-versed in this issue. If the Government had listened to our opinions earlier, it would not be necessary to appoint the Task Force on Land Supply and wasted 18 months. If the current-term Government had discussed with us earlier, we would now be in the process of resolving the issue. However, Deputy President, I will not vote to support the motion today because I think there is something wrong with each of the amendments.

Due to time constraints, I just want to focus on a few issues. I strongly oppose sacrificing the Old Course of the Hong Kong Golf Club in Fanling to increase housing supply because there is a very limited area of only 36 hectares and the location is basically unsuitable. The traffic in the area of Fan Kam Road is very busy and there are four schools and the North District Hospital nearby, so I do not understand why the Government has chosen such a small and remote place rather than a bigger one in the vicinity. My colleagues have put forward a number of proposals, and deleted certain proposals such as the proposal relating to the Kwai Chung Container Terminals. If the Government really proceeds with these proposals, this will be the fastest way because there are a lot of "spade-ready sites" and reclamation will not be necessary. I am not opposed to reclamation, but I think the Government's proposal relating to Kau Yi Chau, i.e. Lantau Tomorrow Vision, is really just a vision and a long-term one. Yet, distant water cannot put out a nearby fire.

As for the Government's intention to sacrifice the Old Course of the Hong Kong Golf Club in Fanling, Deputy President, I would like to declare that I am a member of the Hong Kong Golf Club. My current membership is a retired golfer, which means that I am no longer playing golf, so there will not be any impact on me even if the land on which the Hong Kong Golf Club in Fanling is situated is completely resumed. However, I think that the Government has applied double standards. I remember 10 years ago, some British subjects protested in the Legislative Council and the Development Bureau immediately chickened out and agreed to preserve the West Wing of the Central Government Offices ("CGO"). Civil servants who used to work in the West Wing of CGO and some veteran civil servants including whom I have consulted said that the building was not worth preserving.

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At that time, I witnessed more than 10 foreign women made uproar at a Panel meeting and criticized why the Government had to demolish the West Wing of CGO. The Government eventually spent $1 billion to preserve this building. Why does the Government not preserve the Old Course? It has very high environmental protection and ecological values. I also want to condemn those who requested the demolition of the Hong Kong Golf Club in Fanling, including the Liber Research Community. I have recently read newspaper reports that they urged the Government to preserve more facilities related to the British army. I do not know why the facilities related to the British army should be preserved. I have looked up the relevant information. The Old Course was built in 1911 and the soul engineer was a British soldier named Major Edward Albert RAM, who was also an architect. His company "Denison, Ram & Gibbs" was responsible for the construction of buildings such as the service reservoir at Bishop Hill that had inextricable links with the history of Hong Kong.

(THE PRESIDENT resumed the Chair)

Nevertheless, the Government intends to sacrifice this golf course for no reason―I think the Government was kowtowing to the pan-democratic members of the Task Force on Land Supply, including members of the localist groups such as WU Chi-wai and CHU Hoi-dick. What is most intolerable is that this incited sentiments of hatred of wealthy people and businessmen. In fact, this golf club is definitely not for wealthy people only. A doctor told me today that he fails to make golf bookings because many people are going to the Kau Sai Chau Golf Course. He also suggested that the Government should build additional golf courses.

Tiffany CHAN is a female golfer nurtured in Hong Kong. She lives in Tuen Mun and is qualified for a tournament of the Ladies Professional Golf Association. In fact, golf has become an increasingly popular sport and everyone but not only wealthy people can participate.

The Government has not fulfilled its responsibility to lead the public and make explanations to them; instead, it kowtows to those more ferocious people. I strongly condemn the Government for holding double standards and will not vote for the motion today. I so submit.

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PRESIDENT (in Cantonese): Does any other Member wish to speak?

(No Member indicated a wish to speak)

PRESIDENT (in Cantonese): Mr WONG Kwok-kin, you may now speak on the amendments.

MR WONG KWOK-KIN (in Cantonese): President, first of all, I would like to thank Mr Tony TSE, Ir Dr LO Wai-kwok, Mr Steven HO and Dr Junius HO for proposing amendments to my motion and including their proposals to make the content richer.

Mr Tony TSE has mentioned the development of green belt areas and deserted agricultural land, and proposed reviewing the Environmental Impact Assessment Ordinance. These are all conducive to expediting land supply and the planning procedures. Ir Dr LO Wai-kwok has proposed progressively opening up the closed area of Sha Tau Kok Town and expediting the redevelopment of old public housing estates, which are also requests of FTU.

Mr Steven HO has expressed concerned about the compensation and relocation arrangements for the affected operators in the agricultural and fisheries industries as well as brownfield operators. He has proposed reviewing outdated legislation on land use regulation and amending the stipulations in the New Territories Ordinance on handling the issue of Tso/Tong lands. All these proposals are considered desirable by FTU as well.

In his amendments, Dr Junius HO has requested improving the arrangements for granting compensation on compassionate grounds and streamlining the relevant procedures, as well as re-introducing a land bond similar to the one previously introduced. We think that the Government must enhance the previous approach before adopting this method. However, there are merits with this proposal, so we are supportive of his amendments too.

Generally speaking, FTU agrees with the newly added proposals in the amendments, but I have noted that both Mr Tony TSE and Ir Dr LO Wai-kwok have deleted the proposals of introducing an idle land tax and adding the requirement for developers to undertake conservation responsibilities in the land LEGISLATIVE COUNCIL ― 9 June 2021 7199 sale conditions. I wish to reiterate that an idle land tax is targeted at the land owners or developers who hoard land without developing it. They have no regard for shortage of land and leave their land idle for their own interests, thus causing a waste of resources. Therefore, it is reasonable and fair for the Government, being responsible for granting land, to introduce an additional tax in this regard. Some Members may say that this is only a gesture and is difficult to be implemented. While I agree with this, the point is that we cannot remain silent on this issue for this reason. In fact, idle land tax has been imposed in the Mainland as well as many overseas countries and regions, which proves that this proposal is somehow feasible. What is more, when Hong Kong has been dubbed the world's most unaffordable city in terms of property prices for 11 consecutive years, why must we tolerate land hoarding of developers rather than considering all measures to expedite land supply? I consider this unreasonable.

Similarly, in the present era where a balance needs to be struck between conservation and development, even developers use farmland scenery, environmental protection and ecology as the selling points when selling their flats, so it is logical to add the requirement for developers to undertake conservation responsibilities in the land sale conditions, which will not affect the existing procedures. Based on the aforesaid reasons, please pardon me for not being able to agree with the amendments of Mr Tony TSE and Ir Dr LO Wai-kwok, and FTU will not support the amendments of these two Members.

President, although different Members have different views towards individual proposals, the Council generally has reached a high degree of consensus on land development. Now, what is lacking is only the Government's action to develop land vigorously. I hope that this motion will give the Government more determination and power in identifying land and breaking through the deadlock, so as to tackle the land problem that has plagued the development of Hong Kong for years. I would like to take this opportunity to thank Members who have spoken actively today. Although Members have different viewpoints, we hope that our diverse view will be heard by the Government, which will then consider implementing the various suggestions put forward today.

I so submit. Thank you, President.

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UNDER SECRETARY FOR THE ENVIRONMENT (in Cantonese): President, I appreciate Mr WONG Kwok-kin for moving the motion, and Mr Tony TSE, Ir Dr LO Wai-kwok, Mr Steven HO and Dr Junius HO for their amendments. I also have to thank various Honourable Members for the valuable views that they have shared today, which involve different Policy Bureaux and departments. I will highlight the Government's policies and efforts in natural conservation.

Mr WONG Kwok-kin proposes to add the requirement for developers to undertake conservation responsibilities in the land sale conditions. Currently, the Government has similar arrangements for sites of higher ecological value that require conservation, so as to strike a balance between society's need for conservation of sites with high ecological significance and aspiration for development.

Under current nature conservation policy, there is a Public-Private Partnership Scheme ("PPP") which allows landowners of private sites with high ecological significance and for enhanced conservation to carry out development on the portion of land with lower ecological significance on the condition of undertaking long-term conservation of the land portion with high ecological significance. Under PPP, landowners shall appoint conservation agents and pay the Environment and Conservation Fund a lump sum sufficient to support the conservation and management programmes on the land with high ecological significance in the long run prior to carrying out development.

On the premise of due conservation of sites with high ecological significance, PPP offers a mechanism to allow suitable development of private land while encouraging landowners and non-profit-making organizations to take part in nature conservation together. In March this year, an agreement has been reached for a site in Wo Sang Wai under PPP to allow rehabilitation and conservation of the degrading land and suitable development in the area.

Mr Tony TSE's amendment proposes to streamline the environmental impact assessment ("EIA") process. The Environmental Impact Assessment Ordinance ("the Ordinance") provides a statutory procedure for designated projects to respond to and deal with environmental issues relating to them through EIA studies and statutory consultative process during planning stage, thus providing a crucial platform for striking a balance between environmental protection and development.

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During the planning stage, it is generally necessary to consider the environmental issues that are likely to arise from the projects before proceeding to detailed design. Hence, EIA studies usually go simultaneously with other technical assessments, e.g. traffic impact assessments and design work of the projects. Not only should properly conducted EIA studies have any impact on the overall progress of projects, they should even facilitate the smooth construction and operation of the projects that follow.

To address the problem of lengthy EIA studies in many cases, we have conducted a preliminary review and found that the major cause lies not in legal requirements but two other aspects: First, the EIA process involves numerous departments, thus the project proponents have to spend a lot of time consulting and handling the views and requirements of different departments. Second, the public has strong views on some controversial projects and raises many environmental issues during the EIA studies or even at the later stage, thus prolonging the EIA studies.

In order to expedite the EIA process, the Environmental Protection Department ("EPD") will, in response to the first aspect, form an environment study management group for each EIA study, so as to coordinate the views and requirements from various relevant departments of the Government and facilitate the project proponents to efficiently conduct the EIA studies and complete the EIA reports. As for the second aspect, EPD has not only issued guidelines in respect of different EIA matters and organized training and seminars to help the project proponents understand various EIA requirements, it has even encouraged project proponents to communicate with different stakeholders in the initial planning stage to understand their views as early as possible, so that all environmental issues of concern can be included in the EIA studies right at the beginning to avoid prolonging the process.

As for some designated projects of small scale and nature that basically do not have any impact on the environment, a simplified EIA process has already been provided in the Ordinance, whereby project proponents can apply for environmental permits directly without conducting EIA studies.

The Ordinance has been implemented for more than 20 years. Apart from assisting project proponents in planning and designing various designated projects via the EIA process, EPD will also keep on optimizing and enhancing the operating efficiency of the EIA mechanism.

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Ir Dr LO Wai-kwok's amendment proposes that the Government enhances the coordination with developers, local stakeholders and conservation groups. The Environmental Bureau and EPD have all along been endeavoured to communicate with different stakeholders, including developers, local stakeholders and environmental groups. For instance, stakeholders are consulted via different platforms such as the Advisory Council on the Environment, the Country and Marine Parks Board and other different advisory boards, public consultation exercises, etc. on natural conservation issues. We will also assist the proponents of EIA projects, pursuant to the requirement in the Ordinance, to thoroughly consider and accept the views from the public and various stakeholders as far as possible when formulating EIA study briefs, conducting EIA studies and vetting EIA reports.

President, once again, I would like to thank Mr WONG Kwok-kin for proposing the motion and Mr Tony TSE, Ir Dr LO Wai-kwok, Mr Steven HO and Dr Junius HO for their amendments. I also thank various Honourable Members for their speeches. We will study relevant proposals in detail. I so submit.

UNDER SECRETARY FOR TRANSPORT AND HOUSING (in Cantonese): President, I have listened attentively to Honourable Members' views and would like to thank them. Regarding the proposals of according priority to transport infrastructure, relocating the Kwai Tsing Container Terminals and developing public housing, please allow me to respond and supplement a few points in respect of the views expressed by Members.

In respect of according priority to infrastructure, I shall take the main line of the Northern Link ("NOL") to illustrate the infrastructure-led and capacity creating approach in planning. The main line of NOL is of paramount importance to unleash the development potential which is unable to be put to full use along its alignment. Except for a few low-to-medium density existing/planned residential developments in the vicinity of Kam Sheung Road Station and Au Tau Station, the areas along the alignment are yet to be developed. The implementation of NOL can create more development opportunities for the area concerned to improve the use of land in the vicinity of the area, thereby realizing the infrastructure-led and capacity creating planning approach advocated by the current-term Government. And yet, this planning approach cannot be realized without NOL. Not only will the enhancement of transport capability benefit key government projects under planning, it can also encourage developers to advance their developments and bring about a larger housing yield.

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As regards the time required for planning, the detailed planning and design stage generally takes two to three years and would involve a number of activities, including consultation with the public and stakeholders and resolution of the comments received, carrying out feasibility study, site investigation, project design, gazettal of railway schemes and handling of objections, carrying out environmental impact assessment, seeking authorization of the railway schemes, as well as preparation of relevant agreements with the MTR Corporation Limited. We understand Honourable Members' concerns over the time required, and will compress our work as far as practicable with a view to expediting the delivery of infrastructure projects.

Concerning the views on relocating the Kwai Tsing Container Terminals, ports are very important for Hong Kong's economic development and form an integral part of the trading and logistics industry. The trading and logistics industry is one of Hong Kong's four key economic pillars, with its economic contribution accounting for about one-fifth of the Gross Domestic Product and 17.5% of the working population.

Despite the challenges brought by the rapid growth of other ports in the region to Hong Kong's port business in recent years, Hong Kong maintains its status as one of the world's top 10 ports with the cargo throughput of 2020 reaching 1 800 twenty-foot equivalent units. Moreover, the National 14th Five-Year Plan and the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area also support Hong Kong to entrench its status as an international maritime centre.

The ports of Hong Kong are currently operating well. We will continue to enhance its competitiveness through strengthening existing port facilities. Given the uniqueness of port operation, not only is operating the port in its present location conducive to the mutual collaboration of ancillary facilities, it also has a synergy effect with the development of the peripheral logistic sites. We will continue to monitor the development of Hong Kong's port business, including changes in cargo throughput, so as to ensure timely provision of the necessary port facilities and port-related infrastructural facilities to support the development of the port.

Housing is both an important livelihood issue and a significant problem that the current-term Government is determined to solve. In the Policy Address 2020 and the Long Term Housing Strategy Annual Progress Report 2020, the 7204 LEGISLATIVE COUNCIL ― 9 June 2021

Government announced that after many years of efforts, it has identified 330 hectares of land to build 316 000 public housing units, satisfying the demand for about 301 000 public housing units for the next decade (i.e. from 2021-2022 to 2030-2031).

As regards the opinion about reviewing the Long Term Housing Strategy ("LTHS"), LTHS is a projection of the rolling 10-year total housing demand. It is an objective and scientific method to project future housing demand using objective data.

Housing supply deficiency is a subject of great concern in society today. Increasing the overall supply of housing sites is the fundamental solution to the housing supply problem. In addition to identifying sites for housing construction, various government departments are also striving to take forward the relevant work and improve internal coordination, with a view to completing the necessary processes and expediting the development process as far as practicable.

In recent years, the Hong Kong Housing Authority ("HA") also adopts a series of measures to increase public housing supply, which including the redevelopment of four of its factory estates by HA for housing use. Subject to successful planning, three of them will be able to provide around 4 200 units in 2031.

The second measure is the redevelopment of Shek Lei Interim Housing for public housing development. Approval for relaxing planning restrictions on the site has been granted by the Town Planning Board. It is expected that about 1 600 units can be provided in 2028.

Concerning the proposal of redeveloping public housing estates, HA has all along based on the four basic principles under the "Refined Policy on Redevelopment of Aged Public Rental Housing Estates", namely structural conditions of buildings, cost-effectiveness of repair works, availability of suitable rehousing resources in the vicinity of the estates to be redeveloped and build-back potential upon redevelopment, to prudently consider the redevelopment of individual public housing estates in the light of the actual circumstances. Redeveloping public housing estates may increase public rental housing ("PRH") supply over the long term, but redevelopment takes a long time and additional flats would often be made available only towards the latter phase of the LEGISLATIVE COUNCIL ― 9 June 2021 7205 redevelopment. In the short term, PRH stock available for allocation will be reduced because a large number of PRH units that may otherwise be allocated to households with imminent housing needs would be used for resettling PRH residents affected by redevelopment instead. Such an arrangement not only instantly reduces public housing supply, but also inevitably lengthens the queuing time for families awaiting flat allocation. Therefore, redevelopment of public housing estates can only play a subsidiary role in increasing housing supply.

On 24 May this year, HA published the study results on the feasibility to redevelop its factory estates for residential use and the clearance and demolition arrangement of four factory estates. The four factory estates intended for clearance and demolition have about 2 100 affected tenants. In order to speed up the pace of development, HA will proceed with the clearance of the tenants of the four factory estates and thereafter demolition of the buildings while the rezoning exercise of the sites is in progress, so as to shorten the redevelopment programme and advance the supply of public housing units to meet demand.

In respect of actively identifying and creating land, the Government certainly hopes to improve people's living quality in such aspects as environment and space, but we understand the importance of making good use of public resources. Therefore, we have to provide the limited public housing resources to those who need to be allocated with a flat as soon as possible.

As for tenancy control of subdivided units, we aim to introduce a bill within the current legislative year.

Concerning transitional housing, we are confident that we can identify the sites for 15 000 transitional housing units in the first half of this year.

President, I have listened attentively to Honourable Members' views, and thank them for sharing of their valuable opinions about the motion on "Increasing land supply on all fronts". The Transport and Housing Bureau will carefully study the proposals provided by Members today, and continue to tie in with the relevant policies of the Development Bureau for unleashing land development potential.

Thank you, President.

7206 LEGISLATIVE COUNCIL ― 9 June 2021

SECRETARY FOR DEVELOPMENT (in Cantonese): President, I am grateful to Mr WONG Kwok-kin for moving the original motion and the four Members for proposing their amendments. I am also grateful to various Members for expressing their valuable views today. While different Members may not see eye to eye on individual proposals, I noticed today they share the hope that the Government would continue to make efforts to expedite land development and increase housing supply. This is not only the expectation of the Members who have spoken on us, but also the goal we have been striving to achieve. I will now give some brief responses to several points raised in Members' speeches and update Members on the progress we have made so far.

First, I will talk about reclamation. A Member has asked if it would take 20 to 30 years for reclamation work to show results. It does not necessarily take that long. Currently, if the development of the artificial islands in the Central Waters goes smoothly and every step is taken properly, the first population intake is scheduled for 2034, which is 13 years from now and is not a short period of time. However, Members should not forget that Hong Kong's population, both in terms of population size and the number of households, will continue to grow between now and 2040. Some of our new development areas ("NDAs") have reached the harvest stage, e.g. the Kwu Tung North/Fanling North NDA will see its first population intake in 2023-2024, to be followed by a large population intake targeted for 2026-2027; the Hung Shui Kiu NDA will also see its first population intake in 2023-2024, to be followed by a large population intake starting from 2030 onwards. Coming up next will be the developments of the artificial islands in the Central Waters and New Territories North ("NTN"), which will be the main source of housing supply and support for our economic activities. In other words, the "distant water" will soon become "midway water" and then "nearby water", which is precisely what we need. They are necessary for the future development of Hong Kong.

Our experience has proven that reclamation can also be expedient. In the Tung Chung East reclamation project, we started the reclamation work back in 31 December 2017 and then handed over the first plot of land ready for housing construction to the Hong Kong Housing Authority in March 2020. It has taken only 27 months' time. Compared with the resumption of land, it may sometimes take more than 27 months to undertake the numerous compensation and resettlement arrangements. We are indeed more experienced in reclamation, which is more manageable in terms of time and costs.

LEGISLATIVE COUNCIL ― 9 June 2021 7207

Secondly, I would like to talk about land resumption. First, I would like to brief Members on some figures. In the past two years from 2019 to 2021, we have recovered an average of 45 hectares of land every year. How do we put that in context? As compared with the preceding five years before 2019, only an average of four hectares of land had been recovered each year. In the next five years from 2021 to 2026, we expect to recover an average of 100 hectares of land annually. In other words, the potential of land resumption can actually increase substantially. I would like to add a couple of points on land resumption. We will of course resume land based on public interests and rather than arbitrarily. As land is private property, we must respect private property rights. However, under the current regulation, we can recover any land as long as it is justified by public purposes.

Members have also talked about the compensation mechanism. I am going to briefly talk about it now because I have talked about it before. The current compensation mechanism consists of four compensation zones, namely Zones A, B, C and D. It is in fact an ex gratia or non-statutory compensation mechanism, offering land owners an alternative to the statutory mechanism. Based on our experience, an owner might opt for statutory compensation instead of the existing ex gratia compensation, but the ex gratia compensation often turned out to be higher than the statutory compensation. As public money is involved, we will not change the arrangement casually. I have heard the views expressed by Members today.

Some Members have touched on Tso/Tong lands. In fact, as I am aware, the Home Affairs Bureau has been discussing with Heung Yee Kuk on how the administration of Tsos/Tongs can facilitate the making of decisions. I believe the discussion is still underway, and I have no further information to disclose today.

With regard to brownfield sites, I strongly concur with Mr LUK Chung-hung that we cannot rely on brownfield sites alone. What is the current situation of brownfield sites and what are we going to do with them? There are about 1 500 hectares of brownfield sites in Hong Kong, over half or more than 800 hectares have actually been planned for development for other purposes. In addition, recently, we have reviewed the remaining 700 hectares of brownfield sites and identified 12 more clusters of land for developing public housing, which will provide a total of 30 000 units. Going forward, we hope that brownfield sites will be used more efficiently. But is it possible for Hong Kong to have no 7208 LEGISLATIVE COUNCIL ― 9 June 2021 brownfield sites at all? The answer is in the negative. This has been a clear stance adopted by the Government. Brownfield operations, be they open storage or logistical support facilities, constitute an integral part of our economic chain. We have therefore called for a multi-pronged strategy rather than eliminating all brownfield sites. In fact, the Government has no intention to get rid of all brownfield sites and will absolutely not do so.

Quite a few Members have talked about the development of the border areas. In fact, there will be very robust development in the border areas in the future. As far as I know, we will consult the Legislative Council Public Works Subcommittee on the development of NTN later this month to discuss the three NDAs in NTN. I hope that Members will support our proposal to carry out the relevant study. We will explore ways to expedite our work further.

What will we have in the border areas in the future? Looking from the west to the east, we will develop in the Lok Ma Chau Loop, an excellent science and research base of nearly 1 sq km (87 hectares). As for the Liantang/Heung Yuen Wai Boundary Control Point in the east, a study is now being carried out to examine the feasibility of setting up a high-tech industrial estate. In the central, we will have the NTN New Town (covering areas around Heung Yuen Wai), the Man Kam To Logistics Corridor and the San Tin/Lok Ma Chau Development Node. As the next step in the development of the New Territories, we have finally reached a point where we can consider optimizing the use of the land in these areas. The total area of the three NDAs in NTN is about 1 400 hectares.

Some Members have also mentioned the situation of Sha Tau Kok, I will give a brief response here because I have talked about this topic at the Legislative Council earlier on. In the Sha Tau Kok Frontier Closed Area, particularly under the arrangement of Chung Ying Street, the security and smuggling risks are high due to its own historical reasons. For this reason, any further development of the area, particularly whether tourism can be developed in coordination with the Mainland, will primarily hinge on how the challenges posed by security and smuggling risks can be overcome.

Lastly, I would like to talk about expediting the approval process. Mr MA Fung-kwok has just cited the remarks made by me last week that transforming a piece of "primitive land" into a "spade-ready site" needs six years at present. I also said that with reference to the development of NDAs, the process has already been compressed from previously 9 to 11 years to 6 years. LEGISLATIVE COUNCIL ― 9 June 2021 7209

But I definitely agree that six years is still a long time. In view of this, with the support of the Chief Executive, the Development Bureau set up a Steering Group on Streamlining Development Control last year. To put it simply, our work involves a few areas: first, as mentioned by a Member, if several departments are involved in certain work processes which are actually led by just one of the departments, it is basically sufficient for that particular department to make decisions so as to avoid multiple vetting by other departments. If the process can be further streamlined by, for example, removing some unnecessary approval processes, we will work on it. Our work also includes reviewing some of the existing ordinances, including the Town Planning Ordinance and those relating to the gazettal of roads, to see if there is any room for compression.

As I have said before, the relevant study covers a wide scope of areas and we may not be able to come up with any specific proposals in the next few months within the current term of the Legislative Council. That being said, we hope that we will be able to put forward specific proposals and give an account to the Legislative Council next year, and see which of them can be taken forward first. However, I want to stress that there must be something upholding the existence of the existing laws, which I hope Members will understand. For example, there should be some rationales behind the number of consultations to be conducted. If we decided to reduce the number of consultations from three to one or two, there are bound to be trade-offs and choices. I hope that the whole community and the Legislative Council will give us valuable advice by then.

I have previously cited the following example. It is our usual practice to obtain approval from the Town Planning Board before seeking funding approval for a project. I wonder if it is possible for us to first seek funding approval from the Legislative Council for certain preliminary works which we have confidence in its planning and will likely be carried out, so that the relevant works can commence as soon as the planning is approved. This is what we would like to further discuss with Members.

Last October, we set up a Development Projects Facilitation Office under the Development Bureau to centrally coordinate and handle private development projects which would provide more than 500 residential units. Currently, we have been assisting over 50 development projects involving 40 000-odds housing units. I hope that Members will soon be able to see the concrete results we obtain in this respect.

7210 LEGISLATIVE COUNCIL ― 9 June 2021

President, as I said in my opening remarks, the Government is now pressing ahead with the eight land supply options identified by the Task Force on Land Supply ("the Task Force") after extensive public consultation, and we are pressing ahead with the work of streamlining control and expediting the entire work process. As for the other land supply options, such as developing the periphery of country parks, just as I said in my opening remarks, the Task Force has not ruled out the possibility of implementing them. According to the Task Force, these options will be considered afresh in due course when the Government has almost finished with the work on promoting the eight priority options and is able to free up some manpower in the future.

President, I hereby thank Mr WONG Kwok-kin once again for proposing the motion and other Members for expressing so much valuable views. I so submit.

PRESIDENT (in Cantonese): I now call upon Mr Tony TSE to move an amendment.

MR TONY TSE (in Cantonese): President, I move my amendment.

The amendment moved by Mr Tony TSE (See the marked-up version at Annex 1)

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment moved by Mr Tony TSE 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)

LEGISLATIVE COUNCIL ― 9 June 2021 7211

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 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 WONG Ting-kwong, Ms Starry LEE, Mr Steven HO, Mr Martin LIAO, Mr POON Siu-ping, Mr Holden CHOW, Mr LAU Kwok-fan and Mr Tony TSE voted for the amendment.

Mr LUK Chung-hung voted against the amendment.

Mr Abraham SHEK, Mr Tommy CHEUNG, Mr Jeffrey LAM, Mr CHAN Kin-por, Mr Frankie YICK, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Christopher CHEUNG, Ir Dr LO Wai-kwok, Mr CHUNG Kwok-pan, Mr Jimmy NG, Mr SHIU Ka-fai, Dr Pierre CHAN, Mr CHAN Chun-ying and Mr Kenneth LAU abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr CHAN Hak-kan, Mr Paul TSE, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Elizabeth QUAT, Dr Junius HO, Mr Wilson OR, Mr CHEUNG Kwok-kwan and Mr Vincent CHENG voted for the amendment.

7212 LEGISLATIVE COUNCIL ― 9 June 2021

Mr WONG Kwok-kin, Ms Alice MAK, Mr KWOK Wai-keung and Dr CHENG Chung-tai voted against the amendment.

Dr Priscilla LEUNG, Mrs Regina IP, Mr Michael TIEN and Ms YUNG Hoi-yan abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 25 were present, 8 were in favour of the amendment, 1 against it and 15 abstained; while among the Members returned by geographical constituencies through direct elections, 17 were present, 9 were in favour of the amendment, 4 against it and 4 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he declared that the amendment was negatived.

MS STARRY LEE (in Cantonese): President, I move that in the event of further divisions being claimed in respect of the motion on "Increasing land supply on all fronts" 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): 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)

LEGISLATIVE COUNCIL ― 9 June 2021 7213

PRESIDENT (in Cantonese): I think the question is agreed by a majority of each of the two groups of Members present, that is, those returned by functional constituencies and those returned by geographical constituencies through direct elections.

I declare the motion passed.

I order that in the event of further divisions being claimed in respect of the motion concerned 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): Ir Dr LO Wai-kwok, you may move your amendment.

IR DR LO WAI-KWOK (in Cantonese): President, I move my amendment. I urge Members to support it.

The amendment moved by Ir Dr LO Wai-kwok (See the marked-up version at Annex 2)

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment moved by Ir Dr LO Wai-kwok 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 Tony TSE rose to claim a division.

7214 LEGISLATIVE COUNCIL ― 9 June 2021

PRESIDENT (in Cantonese): Mr Tony TSE has claimed a division. The division bell will ring for one minute.

PRESIDENT (in Cantonese): Will Members please proceed to vote.

PRESIDENT (in Cantonese): Mr Wilson OR, are you going to vote?

(Mr Wilson OR cast his 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 Abraham SHEK, Mr Tommy CHEUNG, Mr Jeffrey LAM, Mr Frankie YICK, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Christopher CHEUNG, Ir Dr LO Wai-kwok, Mr CHUNG Kwok-pan, Mr Jimmy NG, Mr SHIU Ka-fai and Mr Kenneth LAU voted for the amendment.

Mr LUK Chung-hung voted against the amendment.

Mr WONG Ting-kwong, Ms Starry LEE, Mr CHAN Kin-por, Mr Steven HO, Mr Martin LIAO, Mr POON Siu-ping, Mr Holden CHOW, Dr Pierre CHAN, Mr CHAN Chun-ying, Mr LAU Kwok-fan and Mr Tony TSE abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Dr Priscilla LEUNG, Mr Paul TSE, Mr Michael TIEN, Dr Junius HO and Ms YUNG Hoi-yan voted for the amendment.

LEGISLATIVE COUNCIL ― 9 June 2021 7215

Mr WONG Kwok-kin, Ms Alice MAK, Mr KWOK Wai-keung and Dr CHENG Chung-tai voted against the amendment.

Mr CHAN Hak-kan, Mrs Regina IP, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Elizabeth QUAT, Mr Wilson OR, Mr CHEUNG Kwok-kwan and Mr Vincent CHENG abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 25 were present, 12 were in favour of the amendment, 1 against it and 11 abstained; while among the Members returned by geographical constituencies through direct elections, 17 were present, 5 were in favour of the amendment, 4 against it and 8 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he declared that the amendment was negatived.

PRESIDENT (in Cantonese): Mr Steven HO, you may move your amendment.

MR STEVEN HO (in Cantonese): President, I move my amendment.

The amendment moved by Mr Steven HO (See the marked-up version at Annex 3)

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment moved by Mr Steven HO 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)

7216 LEGISLATIVE COUNCIL ― 9 June 2021

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 WONG Ting-kwong, Ms Starry LEE, Mr Steven HO, Mr POON Siu-ping, Mr Holden CHOW, Mr LUK Chung-hung, Mr LAU Kwok-fan and Mr Tony TSE voted for the amendment.

Mr Abraham SHEK, Mr Jeffrey LAM, Mr Christopher CHEUNG, Ir Dr LO Wai-kwok, Mr Jimmy NG, Dr Pierre CHAN and Mr Kenneth LAU voted against the amendment.

Mr Tommy CHEUNG, Mr CHAN Kin-por, Mr Frankie YICK, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Martin LIAO, Mr CHUNG Kwok-pan, Mr SHIU Ka-fai and Mr CHAN Chun-ying abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr CHAN Hak-kan, Mr WONG Kwok-kin, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Alice MAK, Mr KWOK Wai-keung, Ms Elizabeth QUAT, Dr Junius HO, Mr Wilson OR, Mr CHEUNG Kwok-kwan and Mr Vincent CHENG voted for the amendment.

LEGISLATIVE COUNCIL ― 9 June 2021 7217

Dr Priscilla LEUNG and Dr CHENG Chung-tai voted against the amendment.

Mrs Regina IP, Mr Paul TSE, Mr Michael TIEN and Ms YUNG Hoi-yan abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 25 were present, 8 were in favour of the amendment, 7 against it and 9 abstained; while among the Members returned by geographical constituencies through direct elections, 17 were present, 11 were in favour of the amendment, 2 against it and 4 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he declared that the amendment was negatived.

PRESIDENT (in Cantonese): Dr Junius HO, you may move your amendment.

DR JUNIUS HO (in Cantonese): President, I move my amendment.

The amendment moved by Dr Junius HO (See the marked-up version at Annex 4)

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment moved by Dr Junius HO 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)

7218 LEGISLATIVE COUNCIL ― 9 June 2021

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): Mr Tony TSE, are you going to vote?

(Mr Tony TSE cast his 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 POON Siu-ping and Mr LUK Chung-hung voted for the amendment.

Mr Abraham SHEK, Mr Jeffrey LAM, Mr Christopher CHEUNG, Ir Dr LO Wai-kwok, Mr Kenneth LAU and Mr Tony TSE voted against the amendment.

Mr Tommy CHEUNG, 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 CHUNG Kwok-pan, Mr Jimmy NG, Mr Holden CHOW, Mr SHIU Ka-fai, Dr Pierre CHAN, Mr CHAN Chun-ying and Mr LAU Kwok-fan abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

LEGISLATIVE COUNCIL ― 9 June 2021 7219

Geographical Constituencies:

Mr WONG Kwok-kin, Ms Alice MAK, Mr KWOK Wai-keung and Dr Junius HO voted for the amendment.

Dr Priscilla LEUNG and Dr CHENG Chung-tai voted against the amendment.

Mr CHAN Hak-kan, Mrs Regina IP, Mr Paul TSE, Mr Michael TIEN, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Elizabeth QUAT, Mr Wilson OR, Ms YUNG Hoi-yan, Mr CHEUNG Kwok-kwan and Mr Vincent CHENG abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 25 were present, 2 were in favour of the amendment, 6 against it and 16 abstained; while among the Members returned by geographical constituencies through direct elections, 17 were present, 4 were in favour of the amendment, 2 against it and 11 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he declared that the amendment was negatived.

PRESIDENT (in Cantonese): Mr WONG Kwok-kin, you still have 1 minute 35 seconds to reply. Then, the debate will come to a close.

MR WONG KWOK-KIN (in Cantonese): President, land and housing supply has become a major issue of common concern to the community of Hong Kong at large. Be it in the community or the Legislative Council, there are often people initiating various discussions and proposals. The focus of my motion today is, firstly, to increase land supply on all fronts and, secondly, to expedite the land development and planning procedures. I hope that the Secretary is able to receive our messages. I nonetheless understand that sometimes the Secretary, constrained by his position, may have the heart to do something but just lacks the power. Although the next Chief Executive Election will not be held until March or April next year, there have been various discussions in the community as well as the political and other circles recently. I believe no matter who is interested 7220 LEGISLATIVE COUNCIL ― 9 June 2021 to run in the election, he or she must have reasonable and practicable policy propositions and determination to resolve the land and housing problems in Hong Kong, or else they will not get the support of the public and the blessing of the Central Authorities.

I so submit. Thank you, President.

PRESIDENT (in Cantonese): I now put the question to you and that is: That the motion moved by Mr WONG Kwok-kin 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)

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 WONG Ting-kwong, Ms Starry LEE, Mr Steven HO, Mr POON Siu-ping, Mr Holden CHOW, Mr LUK Chung-hung and Mr LAU Kwok-fan voted for the motion.

LEGISLATIVE COUNCIL ― 9 June 2021 7221

Mr Abraham SHEK, Mr Jeffrey LAM, Mr Christopher CHEUNG, Ir Dr LO Wai-kwok, Mr Jimmy NG and Mr Kenneth LAU voted against the motion.

Mr Tommy CHEUNG, Mr CHAN Kin-por, Mr Frankie YICK, Mr YIU Si-wing, Mr MA Fung-kwok, Mr Martin LIAO, Mr CHUNG Kwok-pan, Mr SHIU Ka-fai, Dr Pierre CHAN, Mr CHAN Chun-ying and Mr Tony TSE abstained.

THE PRESIDENT, Mr Andrew LEUNG, did not cast any vote.

Geographical Constituencies:

Mr CHAN Hak-kan, Mr WONG Kwok-kin, Mr Paul TSE, Mr CHAN Han-pan, Mr LEUNG Che-cheung, Ms Alice MAK, Mr KWOK Wai-keung, Ms Elizabeth QUAT, Dr Junius HO, Mr Wilson OR, Mr CHEUNG Kwok-kwan and Mr Vincent CHENG voted for the motion.

Dr CHENG Chung-tai voted against the motion.

Dr Priscilla LEUNG, Mrs Regina IP, Mr Michael TIEN and Ms YUNG Hoi-yan abstained.

THE PRESIDENT announced that among the Members returned by functional constituencies, 25 were present, 7 were in favour of the motion, 6 against it and 11 abstained; while among the Members returned by geographical constituencies through direct elections, 17 were present, 12 were in favour of the motion, 1 against it and 4 abstained. Since the question was not agreed by a majority of each of the two groups of Members present, he declared that the motion was negatived.

7222 LEGISLATIVE COUNCIL ― 9 June 2021

PRESIDENT (in Cantonese): Member's motion with no legislative effect.

Mr Jeffrey LAM will move a motion on "Rebuilding public confidence".

Dr Junius HO will move an amendment to the motion.

This Council will proceed to a joint debate on the motion and the amendment.

Later, I will first call upon Mr Jeffrey LAM to speak and move the motion. Then I will call upon Dr Junius HO to speak, but he may not move the amendment at this stage.

The joint debate now begins. Members who wish to speak please press the "Request to speak" button.

I now call upon Mr Jeffrey LAM to speak and move the motion.

MOTION ON "REBUILDING PUBLIC CONFIDENCE"

MR JEFFREY LAM (in Cantonese): President, I move that the motion, as printed on the Agenda, be passed.

President, I believe Members will definitely put forward many insightful views on the motion proposed by me today from different entry points. Given that the novel coronavirus epidemic has already lasted for one and a half years, I think what Hong Kong needs most now is to rebuild public confidence and obtain an acknowledgement from within and outside Hong Kong that we are a safe city which has achieved herd immunity. To achieve this goal, there is a pressing need to achieve large scale vaccination and increase the vaccination rates as soon as possible. We must obtain this ticket to allow Hong Kong to resume normal operation and restart the economy.

The fight against the epidemic is a protracted battle. Although we do not have a crystal ball to predict when the epidemic will end, we can learn from past lessons. Taiwan has guarded against the epidemic for a year but still cannot prevent another outbreak. This shows that once a fish slips through the net, the LEGISLATIVE COUNCIL ― 9 June 2021 7223 epidemic will get out of control. Some people suspected that the epidemic outbreak in Taiwan was attributable to the arrogance of the officials and their ignorance of the increased virulence and higher transmissibility of the mutant strain.

The virus will not select its targets. Hong Kong has gone through four waves of the epidemic so far. The fifth wave will come or not depends on whether we have done enough to deal with the mutant strain. As a precautionary measure, the Chief Executive has launched the "Early Vaccination for All" campaign a while ago. At present, "fighting the vaccine war" is of the top priority and whether we win or lose in the next three months, will directly affect the speed at which Hong Kong can restart the economy.

The vaccination programme in Hong Kong has been implemented for more than 100 days, but the vaccination rate for people aged 16 or above in Hong Kong is only over 20%, which is much lower than other economies such as the Mainland, Europe and the United States. A question worthy of our consideration is: Why do some people refuse to get vaccinated despite the adequate supply of vaccines in Hong Kong? I think that there are many factors, and among them is the lack of explanation by the Government in the previous stage, which has given rise to a lot of negative and incorrect information. Thus, many people have chosen to wait and see before making a decision. However, there is now an opportunity that should not be missed. If the public continue to adopt a wait-and-see attitude and miss this golden opportunity, it may be too late for them to repent when vaccine is no longer available or they cannot choose which vaccine to take. Thus, I think in respect of the explanatory work of vaccination, it is most important for the authorities to "avoid ambiguity and explain clearly".

My first point concerns the safety of vaccines. A significant number of over 1.8 billion doses of vaccines have been administered globally, and the two vaccines available in Hong Kong, namely CoronaVac and Comirnaty, have been approved by the World Health Organization for emergency use. We should believe in science. Secondly, when the whole world is scrambling to purchase vaccines, the SAR Government has purchased a sufficient number of doses for vaccination for all Hong Kong people. It will therefore be a waste if people refuse to get vaccinated though sufficient vaccines are available. Is this fair to places where there are serious outbreaks of the epidemic?

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After all, the public's hesitation in getting vaccinated may be caused by a lack of confidence to a certain extent. There is no shortcut to solving the problem of confidence as confidence cannot be regained overnight. Therefore, everyone has the responsibility to "fight the good fight in the vaccine war" and needs to remain steadfast in their duties in their respective fields. Both the Government and the business sector have tried their best in recent days to boost the vaccination rate by adopting a carrot and stick approach.

I would like to thank the Chief Executive once again for launching the "Early Vaccination for All" campaign and taking the lead in providing vaccination leave to civil servants. Since then, many public organizations and private companies have followed suit. Many caring people in the business sector have also responded to the Government's appeal and tried every means to encourage the public to get vaccinated as soon as possible. For instance, the Hong Kong General Chamber of Commerce has organized lucky draws which will give out prizes worth at least $20 million, including 500 MTR annual passes, Cathay Pacific business class air tickets, hotel accommodation, etc. It is true that the business sector has strived to contribute both money and effort to achieve the goal of increasing the vaccination rate together. This will boost the confidence of the Mainland and the rest of the world in opening the door of quarantine-free traveller clearance with Hong Kong.

President, all Hong Kong people are obliged to fight the epidemic and there should be no discrimination. Looking to the future, if Hong Kong's economy is to truly recover, the first step is to restore people flow between Hong Kong and the Mainland. The prerequisite for resuming normal traveller clearance is that Hong Kong must be a safe city without any cases of unknown origin. In order to make Hong Kong a safe city, I think the Government must proceed step by step. In addition to continuing with the policy of "guarding against the importation of cases and the resurgence of domestic infections", the Government must also build a herd immunity barrier. It cannot be caught off guard for a day. I believe if the vaccination rate can be significantly increased and the epidemic situation in Hong Kong and the Mainland remains stable, the day when we can resume quarantine-free traveller clearance will be just around the corner.

In making quarantine-free traveller clearance arrangement with the Mainland, I think this can be implemented by three phases. The first phase is the launching of "business bubbles" in the Greater Bay Area. Business people can, 14 days after they have had two doses of vaccine, travel to and from the LEGISLATIVE COUNCIL ― 9 June 2021 7225 designated cities on designated vehicles after taking all necessary tests. They are not allowed to take public transportation during their stay. It is recommended that a weekly quota of 1 000 be given initially. If everything goes smoothly, the next phase will be point-to-point tourism, to be followed by the last phase of tourism bubbles in the Greater Bay Area.

Once the epidemic is put under control, the Government should revitalize the economy, seize the opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area and capitalize on the positioning and role designated to Hong Kong in the National 14th Five-Year Plan. I suggest that the Government should set up an Economic Stimulation Committee composed of government officials, the business sector and scholars, thereby pooling the strength of the Government, the business sector and the public at large to formulate an action plan for revitalizing the economy in the post-epidemic period, which includes setting specific timetables and indicators. At the same time, introducing the Greater Bay Area Business Bubbles will help to resume people flow with the Mainland, which is an important step for Hong Kong to establish its image as a safe city.

President, the work of revitalizing the economy should go hand in hand with that of restoring the public's confidence in the governance of the Government. In fact, the Central Authorities have all along been very concerned about Hong Kong and made efforts on two occasions to solve Hong Kong's problems and restore its political stability. Firstly, the enactment of the National Security Law has immediately provided a stabilizing effect to restore stability in Hong Kong society. Secondly, the introduction of an improved electoral system of Hong Kong to fully establish the principle of "patriots administering Hong Kong" has also ousted anti-China disruptors from the system. All of these measures can strengthen the executive-led political system and rationalize the political order, so that people from various sectors can focus on solving the deep-seated conflicts in Hong Kong society, including land and housing as well as upward mobility of young people.

I think that in order to solve the deep-seated conflicts in society, accountability officials of the Government must adopt a realistic approach, continue to listen to the voices of the industrial and commercial sectors, and maintain positive interactions with the general public. For this reason, officials should actively visit the districts to understand the situation themselves. This is always more effective than just reading cold documents and reports.

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In this regard, I would specifically discuss the relationship between the Government and the business sector. In the past period of time, some officials were deterred by the accusation of collusion with the business sector and transfer of benefits, so they had their own hands and feet tied and could not make decisions and take actions freely. Some even just sat on their hands and did nothing. I think government officials should not impose restrictions on themselves. As long as government-business cooperation works well, it can get twice the result with half the effort. Recent efforts in promoting vaccination for all Hong Kong people provide the best example. With the business sector taking the initiative and the Government playing a complementary role, the cooperation has produced good results.

In addition, officials should make good use of the social platforms to listen to the voices from all walks of life, especially young people, and try to achieve "three mores", namely, "listen more", "reach out more" and "communicate more".

As the current work of the Government related to addressing young people's concerns about education, career pursuit and home ownership, and encouraging their participation in politics as well as public policy discussion and debate are separately handled by different government departments with different priorities, I propose to establish a Youth Development Coordination Unit for one-stop processing of the work related to addressing young people's concerns about education, career pursuit and home ownership; encouraging their participation in politics as well as public policy discussion and debate, and laying down performance pledges and indicators to respond to the concerns in the language of young people within a specified time limit, so as to truly meet the urgent needs of young people.

President, in order to revitalize the economy of Hong Kong, we must work towards a common goal and join hands to tackle the current epidemic.

President, I so submit.

Mr Jeffrey LAM moved the following motion: (Translation)

"That this Council urges the Government to formulate feasible policy measures to boost the economy and improve people's livelihood, establish positive interaction with the public and connect with young people, LEGISLATIVE COUNCIL ― 9 June 2021 7227

thereby rebuilding public confidence in the Government; specific proposals include:

(1) setting up an Economic Stimulation Committee to formulate action plans for post-pandemic economic recovery;

(2) accountability officials strengthening their communication with various stakeholders in the process of formulating major economic and livelihood-related policies and, by way of visiting various districts, organizing and participating in forums or meetings, utilizing social platforms, etc., extensively collecting public views and holding discussions with the public; and

(3) establishing a Youth Development Coordination Unit for one-stop processing of the work related to actively addressing young people's concerns about education, career pursuit and home ownership, and encouraging their participation in politics as well as public policy discussion and debate."

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the motion moved by Mr Jeffrey LAM be passed.

DR JUNIUS HO (in Cantonese): President, I thank Mr Jeffrey LAM for proposing the motion on "Rebuilding public confidence". I believe Members will have no objection as this is the common direction, but this is really easier said than done in implementation.

When it comes to the representative system of district administration in Hong Kong, it used to be effective but had taken a wrong political path. This has necessitated the throwing of the "combination punches", including the improvement of the electoral system and the enactment of the National Security Law. After throwing "combination punches" and requiring public officers to take oath, we have no reason to leave the good system of the past idle and put it aside. We should not leave it idle.

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As I said earlier, how to properly adjust the 18 District Councils is an issue that requires careful and discreet consideration. I nonetheless think this is an opportunity, but consideration should be given to the roles of the 18 District Officers. I have exchanged views with the Secretary earlier. If the affairs of 18 districts can be dealt with as soon as possible, this can really alleviate residents' grievances. People's livelihood, environment, health and public order issues in each district should be important issues of concern.

What are the responsibilities of District Officers? During the Hong Kong-British era, District Officers were very high-ranking officials who were responsible for handling district affairs. They also acted as adjudicators, e.g. they would adjudicate when the chicken raised by aunt disappeared and was suspected to be taken away by an old lady. They were also officials in charge of district affairs because the local situation at the time was relatively simple, but I think the idea should be similar. Therefore, it would be good if the powers of the 18 District Officers to manage the districts can be strengthened.

However, I feel uncomfortable about something. It seemed that the peaceful Occupy Central movement in 2014 had nothing to do with other districts, but many young people actually went to occupy Central from different districts at that time. We should note that they are not merely matters of certain districts, but the entire Hong Kong. In 2019, I failed to see District Officers perform any functions. After throwing the "combination punches", these local officials should address the pressing needs of the public and roll up their sleeves to solve problems immediately without hesitation. As for health, environment and livelihood issues, the District Officers should show that they care. In fact, they are just like the junior chief executive of each district. There are more talents in Hong Kong than the Chief Executive only. The 18 District Officers are assisting the Chief Executive in dealing with Hong Kong affairs by means of division of labour. The eighteen Lohans should work together rather than sitting on their hands and watching only Guanyin work.

Of course, the Chief Secretary is also duty-bound. I consider it necessary to rectify the existing system. McKenzie briefings should be held once every two weeks, whereas local matters to be dealt with will be discussed every morning. The original motion of Mr Jeffrey LAM is pretty good but, besides theories, I think it should be specific about how the Government should LEGISLATIVE COUNCIL ― 9 June 2021 7229 implement relevant proposals. I hope that Members will support my amendment.

I so submit.

CHIEF SECRETARY FOR ADMINISTRATION (in Cantonese): President, I am grateful to Mr Jeffrey LAM for proposing the motion, and Dr Junius HO for proposing the amendment. Hong Kong has experienced an unprecedented double blow over the past two years. We were first hit by the "black-clad violence" in 2019, and then the epidemic spanning from last year to this year, which has undermined our social stability, impeded our economic development, and resulted in a heavy price for our society and people. The first and foremost task for the SAR Government is, of course, doing our best to fight the epidemic and encouraging members of the public to get vaccinated as early as possible, thereby building a herd immunity barrier and "fighting the good fight in the vaccine war". What Mr Jeffrey LAM has just said is so right. But at the same time, we have to get ourselves prepared in order to rebuild public confidence after the epidemic, so that the development of Hong Kong and people's lives will go back to normal as soon as possible.

Mr Jeffrey LAM's motion mentions action plans for post-pandemic economic recovery, and the Government is well aware of their importance. This year's Budget has proposed many measures to support post-pandemic economic recovery. Among them, issuing electronic consumption vouchers is an important one. We hope that the electronic consumption vouchers can energize the market in a timely manner and boost local consumption to assist the retail, catering and personal services sectors in particular, with a view to accelerating economic recovery through the multiplier effect. At present, the preparation for issuing the vouchers has reached the final stage. We expect that the details, including the arrangement for registration and disbursement, will be announced at the end of this month and registration will start next month.

The country provides the strongest buttress for reinvigorating Hong Kong's economy after the epidemic. China not only gives Hong Kong fundamental strength, but also provides ample opportunities, and Hong Kong's advancement hinges heavily on our country. The Outline of the 14th Five-Year Plan and the 7230 LEGISLATIVE COUNCIL ― 9 June 2021 development of the Guangdong-Hong Kong-Macao Greater Bay Area ("GBA") will bring immense new opportunities to Hong Kong, and provide a solid foundation for Hong Kong to forge ahead after the epidemic.

Under the Outline of the 14th Five-Year Plan, the Central Government continues to support Hong Kong to consolidate and enhance competitive advantages, and again expressly affirms and supports the development of Hong Kong as four "traditional centres", namely, international financial, transportation and trade centres as well as a centre for international legal and dispute resolution services in the Asia-Pacific region. But more importantly, the Central Authorities indicate for the first time support for developing Hong Kong into four "emerging centres", that is, firstly, an international aviation hub; secondly, an international innovation and technology hub; thirdly, a regional intellectual property trading centre, and lastly an East-meets-West centre for international cultural exchange. Through the diversified and comprehensive positioning in these eight areas, Hong Kong can continue to play a critical role in "capitalizing on our strengths to serve the country's needs". Given the ample opportunities, Hong Kong may, on the one hand, leverage our own strengths to open up more room for development, and on the other hand, contribute to the development of GBA.

Amid the pandemic, the global political and economic landscape has undergone subtle changes. We need to take the initiative to cope with them by expanding Hong Kong's international economic and trade, investment and tax agreement networks. In November last year, our country signed the Regional Comprehensive Economic Partnership ("RCEP") Agreement with 14 economies. Hong Kong is actively seeking to be among the first batch of economies joining RCEP after it comes into effect, so as to help Hong Kong entrepreneurs and investors open up markets, thereby fostering the long-term economic development of Hong Kong.

Once the pandemic further subsides, the SAR Government will launch a large-scale publicity and promotional campaign at home and abroad, showcasing our unique advantages to the world and the Mainland, with a view to attracting enterprises, investors and talent to Hong Kong.

Mr Jeffrey LAM also suggests that the Government strengthen the communication with various stakeholders and hold discussions with the public in the process of formulating major policies.

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President, I have to stress here that the current-term SAR Government attaches great importance to public engagement. This is to ensure that in the course of policy formulation, views from different sectors of society would be duly heard and accepted so as to build consensus. Let us take the Policy Address as an example. Apart from organizing a number of consultation sessions for the Chief Executive to receive views from various sectors directly, the Government also collects opinions from the general public through different channels such as websites and social media. For some major policy issues, the relevant Policy Bureaux and committees conduct a wide variety of public engagement activities, including sharing sessions, workshops, public forums and outreach activities. Though it is not possible to hold face-to-face meetings frequently due to social distancing requirements amid the pandemic, there have been ongoing exchanges between the Government and various stakeholders. During this period of time, we have actively held and participated in various kinds of local and overseas online conferences to maintain communication with stakeholders. I will have an online conference with chambers of commerce of ASEAN member states this Friday to promote Hong Kong and update them on the latest situations.

In order to have a more accurate and comprehensive grasp of district affairs and public views and sentiments, politically appointed officials actively reached out to the public and conducted over 270 district visits in the first two years of the current-term Government. However, the past two years of chaos in Hong Kong hampered the frank exchanges between the Government and the public via the District Councils. Fortunately, with the full support of the Central Authorities, the National Security Law was enacted last year. Coupled with the decision to improve the electoral system of HKSAR made this year, Hong Kong has shifted from chaos to stability, restored stability in society and put the "one country, two systems" back on the right track. Here, I would like to give special thanks to the Legislative Council for the cooperation in scrutinizing the bill on improving the electoral system. A rational society is not only conducive to the interaction and communication between government officials and the public, but also allows us to enhance the development and formulation of policies, including the work of receiving and collecting public views.

Under the new climate of good governance, the Legislative Council will continue to serve as an important platform for the SAR Government to receive public views. In fact, after normality was restored to the Legislative Council at 7232 LEGISLATIVE COUNCIL ― 9 June 2021 the end of last year, the Chief Executive immediately attended the Chief Executive's Question and Answer Session again in November last year to listen to Members' views and answer Members' questions directly.

During the Chief Executive's Question and Answer Session in February this year, the Chief Executive announced five major legislative exercises involving different policy areas, including stipulating oath-taking requirements for public officers, admitting non-locally trained doctors, imposing tenancy control of subdivided units, combating doxxing and enhancing fire safety in old buildings. These five proposals are precisely the Government's proactive and positive responses to the views presented by the public and Members over the past period of time, demonstrating the new horizons of positive interaction between the executive and the legislature.

I believe after improving the electoral system to fully implement the principle of "patriots administering Hong Kong", we can eradicate the excessive politicization that has plagued the Legislative Council and the internal rifts that have torn Hong Kong's society apart in recent years. As the Legislative Council will have a broader representation in the future, and the SAR Government will continue to receive public views proactively through the Legislative Council to effectively enhance the governance capability of the SAR Government.

Mr Jeffrey LAM is also very concerned about the issue of youth development. Undoubtedly, young people are the future of our society as well as the driving force for the long-term development of our society and economy.

The current-term Government attaches great importance to youth development. Since the Youth Development Commission was established in April 2018, it has been committed to promoting cross-bureau and cross-departmental collaboration with the aim of addressing young people's concerns about education, career pursuit and home ownership and encouraging their participation in politics as well as public policy discussion and debate.

Regarding education, the Government has been striving to provide young people with flexible and diversified articulation pathways with multiple entry and exit points by promoting the quality and sustainable development of the publicly-funded and self-financing post-secondary education sectors. Currently, the number of publicly-funded and self-financing first-year-first-degree places is sufficient to admit all secondary school leavers who meet the basic requirements for entry to post-secondary institutions. Meanwhile, the Government has LEGISLATIVE COUNCIL ― 9 June 2021 7233 various subsidy schemes in place to assist young people in continuing their studies. We also actively promote vocational and professional education and training, and encourage young people to pursue education pathways and join industries that best suit their abilities and interests.

Concerning career pursuit, besides actively promoting diversified economic development, the Government creates quality job opportunities for young people and implements various measures to help young people explore career paths in Hong Kong and abroad. It has allocated additional resources to enhance the Funding Scheme for Youth Life Planning Activities and the Youth Employment and Training Programme, thereby strengthening the support for life planning and on-the-job training for young people. It has also introduced measures to create jobs under the Anti-epidemic Fund. Among these jobs, over 22 000 jobs have been filled and quite a number of them are suitable for young people.

In order to encourage Hong Kong young people to aim high and leverage the new opportunities brought by the development of GBA, the Government formally launched two GBA-related youth schemes in January this year. The innovative Greater Bay Area Youth Employment Scheme encourages enterprises to recruit and deploy university graduates in Hong Kong to work in the Mainland cities of GBA. As at the end of last month, over 340 enterprises provided more than 2 500 job vacancies, and the graduates who have received offers will be arranged to commence employment by late August. Moreover, the Funding Scheme for Youth Entrepreneurship in the Guangdong-Hong Kong-Macao Greater Bay Area is expected to provide capital subsidy for about 230 youth start-ups, and render entrepreneurial support and incubation services to 4 000 young people.

As for home ownership, the Government is aware that housing is not only an issue for young people but one that affects the community as a whole. In view of the serious shortage of land supply, the Government has been taking various measures, such as identifying land for housing development, making better use of existing resources and enriching the housing ladder, with a view to supporting Hong Kong people (including young people) to achieve home ownership.

Besides, the Government has introduced the Youth Hostel Scheme. The seven projects currently under the scheme are expected to provide more than 3 300 hostel places in total. Yesterday afternoon, I visited the youth hostel in 7234 LEGISLATIVE COUNCIL ― 9 June 2021

Tai Po, which is the first to be completed. Both the operator and youth tenants gave very positive feedback about this new attempt. In addition to providing a comfortable private living space for young people, youth hostels also assist them in learning diverse life skills and life planning through a wide variety of activities and facilities to help enable their upward mobility and realization of aspirations. The Government will continue to vigorously push forward the various projects under the scheme. The Finance Committee of the Legislative Council has recently granted funding approval for two youth hostel projects. I would like to extend my gratitude to Members for the support.

Regarding participation in politics as well as public policy discussion and debate, the Government has regularized the Member Self-recommendation Scheme for Youth since 2018, under which young people with a commitment to serve the community are recruited regularly to participate in government advisory committees. So far, around 400 posts are held by young people who have been appointed directly or indirectly through the self-recommendation scheme. The overall ratio of youth members in advisory and statutory bodies has increased from around 8% in late 2017 to nearly 14% at present, very close to the target of 15% set by the current-term Government.

President, Dr Junius HO's amendment urges the Government to strengthen the powers of the 18 District Officers over the administration of the district.

I wish to point out here that District Officers and District Offices have all along represented the SAR Government at the district level. They implement and coordinate the execution of district administration programmes to ensure that local views are properly followed up. District Officers also maintain close liaison with different sectors of the community and promote local residents' participation in district affairs.

District Officers are also responsible for coordinating the operation of an early alert and action mechanism to strengthen interdepartmental cooperation. When there are major issues affecting the livelihood of local residents, depending on the nature of the issues, District Officers may convene District Inter-departmental Committee meetings or ask the departments concerned to set up task forces on a need basis, with a view to expeditiously resolving the district problems identified.

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District Offices also provide administrative support for Area Committees, District Fight Crime Committees and District Fire Safety Committees. With the latest improvement to the electoral system, these district-based committees will assume a new function in the electoral system. As the subsectors of the sector "Legislative Council Members, representatives of district organizations and other organizations" in the Election Committee, they can ensure that local views will be fully reflected. Government departments will closely cooperate with these committees where necessary, and consult them on district affairs.

President, with the full support of the Central Authorities and under the leadership of the Chief Executive, the SAR Government will seize the opportunities brought by the National Security Law and the improved electoral system, and make all-out efforts to promote the sustainable development of the economy and society of Hong Kong. We hope to overcome the epidemic as soon as possible and put Hong Kong back on the right track.

President, I so submit. I will give my closing remarks after Members have spoken. Thank you.

IR DR LO WAI-KWOK (in Cantonese): President, first of all, I would like to thank Mr Jeffrey LAM for proposing the original motion. I believe we will all agree that the SAR Government should formulate feasible policy measures to boost the economy and improve people's livelihood, establish positive interaction with different sectors of society, thereby rebuilding public confidence in the Government.

President, as a political group with members from the business and professional sectors, BPA is very much concerned about boosting the economy. On 15 October 2020, Mr Jeffrey LAM and I jointly wrote to the Chairman of the Legislative Council Panel on Commerce and Industry proposing the setting up of the Subcommittee on Issues Relating to the Stimulation of Hong Kong's Economy ("the Subcommittee") under the Panel to comprehensively review and study policies relating to the stimulation of Hong Kong's economy. We also emphasized in the letter that, given the double whammy of ongoing COVID-19 epidemic and economic recession facing Hong Kong, different sectors of society should conscientiously respond to the daunting challenges in front of us. The SAR Government should, on the one hand, provide all sectors with appropriate assistance to "support enterprises, safeguard jobs" and help the unemployed, and 7236 LEGISLATIVE COUNCIL ― 9 June 2021 on the other hand, actively make plans for economic recovery in the "post-epidemic era". It should adopt a multi-pronged approach to support the business and professional sectors, enhance competitiveness, capitalize on the advantages of "one country, two systems" and seize the opportunities of regional cooperation. It is also imperative for Hong Kong to conduct studies and plan early to link up with domestic and international markets, actively grasp the opportunities brought by the "dual circulation" in the country's economy and complement the National 14th Five-Year Plan to give play to its special role.

Later on, after discussion, the Subcommittee was formed with the consent of the House Committee and held its first meeting on 22 December. After over six months of discussions, the Subcommittee and the Administration have explored in considerable detail how to facilitate the revival of the local economy, promote Hong Kong's professional services active participation in the domestic and international dual circulation through the amended Agreement on Trade in Services under CEPA, ride on the development opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area to promote the local economy, promote the development of innovation and technology in Hong Kong, and so on. Therefore, I support the setting up of an Economic Stimulation Committee by the SAR Government to formulate action plans and complementary policy measures for post-epidemic economic recovery.

President, obviously, even if there are viable plans to revitalize the economy, the effectiveness of the relevant policy measures will hinge on the success of the Government in controlling the local epidemic situation. It is thus imperative for the SAR Government to work with all sectors of society to increase the vaccination rate expeditiously. There are many weird talks in the community opposing or even casting doubt on the attempts to boost vaccination. However, be it the appeal of the World Health Organization or the measure taken by different countries of the world, it is an essential move to build herd immunity by raising the vaccination rate to a specified high level. When it is absolutely right to boost vaccination, the SAR Government should explain its work to the public with compelling arguments and confidence. In case there is any untrue or false information, it should quash them quickly. Also, it should strengthen its communication and collaboration with the business and professional sectors to provide as many facilitations and incentives as possible to encourage vaccination. In addition, the authorities should set clear goal for the vaccination campaign to promote vaccination for all.

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I agree with the amendment proposed by Dr Junius HO about "strengthening the powers of the 18 District Officers over the administration of the districts so that they can make rapid response and act proactively to address the concerns of the people promptly". As we all know, over the past two years, the District Councils ("DCs") have been subject to various disturbances caused by some members from the "mutual destruction camp" and thus failed to perform their intended functions. In view of this, while strengthening the powers of the 18 District Officers over the administration of the districts, the authorities should also strengthen communication and collaboration with community organizations (including Area Committees) in various districts so as to address district livelihood issues more effectively.

President, with these remarks, I support Mr Jeffrey LAM's original motion and Dr Junius HO's amendment.

MR WONG TING-KWONG (in Cantonese): President, the first proposal in Mr Jeffrey LAM's motion focuses on economic recovery, which shows its importance. One of the keys to enabling Hong Kong to take off again, boosting the economy and restoring confidence in society lies in the extensive inoculation by the public. Cross-boundary travel can only be resumed when "zero infection" is achieved, and the resumption of cross-boundary travel means that people's life and economic activities will resume normal with the smooth flow of people and goods. This is precisely what we and members of the public have hoped for. As cross-boundary activities between Hong Kong and the Mainland have been hindered by the pandemic for a long period of time, the Government should negotiate with the Mainland Government as soon as possible for allowing Hong Kong residents who received the COVID-19 vaccination and certified as carrying antibodies of COVID-19 to be exempted from quarantine when travelling to the Mainland, so that normal cross-boundary travel can be resumed. Therefore, at the Chief Executive's Question Time last week, in reply to my question on the SAR Government's proposal of resuming traveller clearance, the Chief Executive also considered that Hong Kong would be in a better position to resume traveller clearance when the "zero infection" situation in Hong Kong was getting more stable. However, inoculation is a prerequisite for granting exemptions from compulsory quarantine when travelling to the Mainland or overseas.

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Although the current epidemic situation seems to have stabilized, COVID-19 cases with unknown source involving the virus variant found in the United Kingdom were identified again recently. These days, many business corporations, public organizations as well as the Government have introduced various forms of incentives to encourage the public to receive vaccination. Apart from vaccination leave, lucky draw prizes such as flat units, large spending credits, cash and free MTR tickets for the whole year will also be given out, with an aim of encouraging the public to get vaccinated expeditiously. I therefore agree with and support all efforts, in whichever form, conducive to the early inoculation of the people under suitable circumstances after they have gained an understanding of their own health conditions.

Apart from this, people's degree of trust in the Government is also very important in rebuilding public confidence. Therefore, efforts should also be made by the Government to properly carry out publicity and communication work in different aspects to obtain support from the general public. When formulating policies, the Government must enhance liaison with the representatives of the public. On publicity strategies, the Government should adopt a new mindset and make good use of the new media (such as Internet). It should devise more detailed publicity strategies against the attack of the Government by fake news and wrong messages, so as to prevent such incorrect messages from causing further misunderstanding between the public and the Government.

There is a common saying that youth are the future pillars of society. Their development nowadays will certainly determine how the future of Hong Kong is. Therefore, item (3) of the motion has also mentioned the issue related to addressing young people's concerns about education, career pursuit and home ownership, and encouraging their participation in politics as well as public policy discussion and debate. At this moment, I am particularly concerned about youth employment and entrepreneurship, so I suggest that the Government should subsidize more private companies and suitable organizations to employ more tertiary institution graduates; ensure that the coverage of the Continuing Education Fund courses can include more high value-added and professional aspects, so that people can obtain better professional qualifications through continuing education and cooperate with more employers to search for more job vacancies suitable for youngsters. As for entrepreneurship, I suggest that the Government should simplify and expedite the vetting and approval of the applications for the Innovation and Technology Fund, as well as increase the tax deduction amount for intellectual property registration and research fees. This is LEGISLATIVE COUNCIL ― 9 June 2021 7239 conducive to attracting talents and enterprises from various places to set up research and development centres in Hong Kong, thereby creating more job opportunities.

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

Deputy President, with these remarks, I support the original motion and the amendment.

MR CHRISTOPHER CHEUNG (in Cantonese): Deputy President, I speak in full support of Mr Jeffrey LAM's original motion and Dr Junius HO's amendment.

The "black-clad violence" and the epidemic have dealt a serious blow to Hong Kong's economy and affected people's livelihood. It cannot be more apt for Mr Jeffrey LAM to urge the Government at this time to boost the economy and improve people's livelihood, which is consistent with the interests and aspirations of the community.

I will focus on the proposal set out in item (2) of the original motion. I think it is very important for the Government to listen to and grasp public opinion in the course of administration. I have noticed that although the leaders of our country have to deal with many important matters every day, they still travel a lot to reach out to people in different places, e.g. President XI Jinping just visited Qinghai a few days ago.

In Hong Kong, district visits by government officials have become a rarity. In formulating or introducing policies, it seems that the Government has only attached importance to expert opinions while completely neglecting people's feelings and voices. For example, when the third wave of the epidemic broke out, the Government ordered to ban dine-in services at all times in restaurants after some experts advised that the risks of dine-in services were high. As a result, a large number of wage earners were made very embarrassed as they had to finish their meals on the roadside braving the wind and rain. Another example is that when the fourth wave of the epidemic broke out, an expert's comment of insufficient supply of fresh air in restaurants had caught all restaurants in Hong Kong in a bustle after the Government ordered them to install 7240 LEGISLATIVE COUNCIL ― 9 June 2021 ventilators within a month or so. What are the difficulties faced by the people under the epidemic? What kind of assistance do they need most? It seems that the Government has never asked these questions. As a result, the Government has repeatedly encountered obstacles and difficulties in its governance. Not only have its policy measures failed to win the support of the people, but have even aroused public resentment. This is the result of the Government's lack of understanding of public aspirations.

Thus, in order to rebuild public confidence in the Government, I think that instead of sitting behind closed doors in air-conditioned rooms all the time, government officials must adopt a down-to-earth approach, listen attentively to the opinion of the people, think what they think and address their pressing needs. I believe only in this way will the governance of the Government secure the support of members of the public.

Deputy President, apart from feeling the pulse of the public, I think carrying out high-quality publicity work is just as important. The society's loss of confidence in the Government in the past was largely due to its poor publicity, coupled with the malicious smearing by the opposition camp, it turned out that those policies obviously beneficial to society and people's livelihood had also failed to obtain public support. The vaccination programme which benefits everyone is another example. Since the Government's poor publicity work has failed to allay public concern, the vaccination rate has been utterly low. While there are places where people are eager to get vaccinated but vaccines are unavailable, it is strange to see that some Hong Kong people refuse to get vaccinated when vaccines are available. Thus, in order to rebuild public confidence in the Government, I think the Government must enhance its publicity work so that the public can correctly understand its policies and distinguish between right and wrong.

Last but not least, I want to say that controlling the epidemic is the primary task to revitalize the economy, improve people's livelihood and rebuild public confidence in the Government. If the Government does not even have the determination and ability to enable the people to take off their face masks and lead a normal life, then all is but empty talk. Thus, I hope that the Government will make all-out efforts to achieve "zero infection" as early as possible.

Deputy President, I so submit.

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MR JIMMY NG (in Cantonese): Deputy President, the community of Hong Kong has now entered a critical moment in history, with the epidemic still lingering and the economy and people's livelihood in peril. I am very grateful to Mr Jeffrey LAM for proposing the motion on "Rebuilding public confidence" so that Members can express their own views.

Amid a weak global economy, Hong Kong's economic activities have now shown signs of recovery. According to the figures released by the Government, GDP (Gross Domestic Product) and unemployment rates have improved. However, Hong Kong is an externally-oriented economy. While the economic performance in the first quarter has fared well, the current vaccination rate in Hong Kong remains low in general and this may slow down the pace of economic recovery. If we are to quicken the pace of resumption of economic activities, then keeping the epidemic under control is the key to reopening borders and resuming travel with other places as well as promoting commerce, trade and investment. Therefore, the Government should seek to work out cross-border travel arrangements with more markets on the Mainland as well as overseas through "business bubbles" or "travel bubbles", so as to bring in visitors and stimulate the economy.

Of course, in order to implement the two aforesaid "bubbles", an important prerequisite is to keep the epidemic situation of the two places under control. Although only sporadic confirmed cases were recorded in Hong Kong recently, the community cannot afford to let down its guard. Since the outbreak of the epidemic in 2019, a number of new variants have emerged. The low vaccination rate may make the community more susceptible to the rapid spread of the variant or even result in transmission in the community, leading to the outbreak of a new wave of epidemic.

The Government has recently launched the "Early Vaccination for All" campaign, which has been well received by various sectors of the community. The business sector has even taken concrete actions by offering various rewards and incentives to encourage members of the public to get vaccinated as soon as possible. However, some people in the community are concerned about the vaccines, mainly because there are worries about their own health conditions or the possible side effects of vaccination. This reminds me of a quote from the late United States President Franklin ROOSEVELT: "The only thing we have to fear is fear itself." The vaccination rate is crucial to the future success of our 7242 LEGISLATIVE COUNCIL ― 9 June 2021 fight against the epidemic. If "nameless, unreasoning, unjustified terror", as President Franklin ROOSEVELT put it, is allowed to spread in the community, all efforts that we have put in during this period will be wasted.

As the fight against the epidemic is a protracted battle and also a new normal, we need to explore and review the current mode of economic development so as to make timely adjustments. I hope that the SAR Government and the industries will monitor the latest situation and development attentively to identify and respond early to the restructuring and evolution of the international industrial division and supply chain systems in the "post-pandemic era", and promote re-industrialization in light of the circumstances, so as to ensure local economic security and safeguard people's livelihood, while playing a special role in the future development of the country.

Deputy President, we need to rebuild not only public confidence in the SAR Government, but also the confidence of the local business sector and foreign investors in Hong Kong's economy and market. We have to put Hong Kong back on the right track and rekindle hope for the community as soon as possible.

Deputy President, with these remarks, I support the original motion of Mr Jeffrey LAM and the amendment of Dr Junius HO.

MR CHAN KIN-POR (in Cantonese): Deputy President, since the return of sovereignty, in order to gain political capital, Members from the opposition camp have been attacking the Government's governance for a long time by distorting and discrediting its benevolent policies while magnifying its deficiencies. Unfortunately, the Government has all along failed to respond to these attacks, thus causing people's confidence in the Government to nose dive.

With the actions taken by the Central Government, Hong Kong has eventually set things right and returned to the right track. I am very grateful to Mr Jeffrey LAM for proposing this motion, and I totally agree with that. At present, the top priority task of the Government is to rebuild public confidence in the Government. Many Members have offered quite a few insightful views today. I agree with most of them, so I am not going to repeat. I just want to focus on the point that I consider the most important.

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One of the proposals in the original motion is to require officials to strengthen their communication with various stakeholders in the process of formulating major policies and extensively collect public views. I concur with the proposal, but I think it might not be sufficient. In my opinion, the Government must break with tradition and adopt a new mindset when making decisions. While major policies must be kept confidential all the way from the formative stage to approval, public views have to be consulted in each and every stage, so as to minimize the chances of making wrong decisions and achieve benevolent governance in the long run.

At present, the Government will consult stakeholders, Members and the public before formulating policies, and may even conduct large-scale public consultation according to actual needs, which is a good practice. However, when the policies were examined and formally approved, the Government would, using confidentiality as a reason, shut the door of communication and refuse to disclose any details or discuss them again with the public. There is no way the public can tell what is in the mind of the Government and on what basis the decisions are made. Government officials often hold discussions with Members only after a decision has been made. On the surface, this is a sign of respect for Members, but as the policy has already been formulated, Members were only being informed rather than consulted.

It was a traditional practice under elitism for officials to formulate policies with the confidentiality principle. It mainly seeks to ensure independent thinking by avoiding external influence, social conflicts or conflicts of interest arising from the disclosure of confidential information. Of course, there will be no problem if the decisions made by officials are correct, but given the complicated and volatile society of today, it is impossible for officials to keep tabs on the changes in public sentiments no matter how smart they are. In fact, public sentiment could have changed time and again in the process of policy deliberation, which may take a long time. It is thus impossible for the Government to fully understand the needs of society. The policies will be doomed to failure if officials made a wrong judgment, which will inevitably give rise to grievances.

In order to achieve benevolent governance and reduce policy blunders, the Government should consider seriously whether it should examine and decide on policies alone behind closed doors, or incorporate public views by all means to truly address the needs of society. As I have pointed out many times, officials 7244 LEGISLATIVE COUNCIL ― 9 June 2021 and Members should be good partners. As officials are obliged to manage resources and take into consideration the interests of various parties, they tend to avoid making mistakes and often stay on the conservative side that would prevent them from grasping social changes. Members, on the other hand, have wide-stretching interpersonal and social networks that enable them to understand the needs of the community and be ready to innovate, which precisely makes up for the deficiencies of the officials. Therefore, officials should adopt a new mindset and discuss policies with Members at every stage from formulation to the concrete implementation, so as to ensure that they will not make decisions behind closed doors. Although these arguments may sound like cliché, it is time for the Government to earnestly look into this broken link in its governance.

Certainly, at the final stage, officials should be responsible for making independent judgments. Like judges, after gaining a full understanding of different issues, they are obliged to select the most appropriate policies for the community. The advantage of this proposal is that Members can participate throughout the entire process of policy formulation, so that the Government can have a good grasp of public sentiment, set priorities, even out distribution of interests and allocate resources to address the pain-points of the public. I believe this is the way to achieve benevolent governance.

Thank you, Deputy President.

DR PRISCILLA LEUNG (in Cantonese): Deputy President, I speak in support of Mr Jeffrey LAM's motion on "Rebuilding public confidence" and Dr Junius HO's amendment.

Deputy President, upon completion of the two important tasks of passing the National Security Law and improving the electoral system, the hardware of our system has basically been improved significantly. Now, what we need to look into is the problem with our software. After strenuous efforts have been made by the country to break new grounds and remove obstacles for Hong Kong, I think there are two indicators of success: firstly, ensuring national security; and secondly, ensuring quality governance. In both cases, execution is of paramount importance. The purpose of ensuring national security is to "maintain stability, prevent chaos and focus on law enforcement". Law enforcement involves three agencies, namely the Police Force, the Department of Justice and the court.

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People have been holding the belief that justice delayed is justice denied. In 2019, the low enforcement efficiency at a snail's pace caused members of the public to lose confidence in our rule of law. The rule of law is what really brings Hong Kong from chaos to governance. As we can see, improvements have been made in the efficiency of both law enforcement and justice today. I hope that we can get back on track in these aspects, so that members of the public will see lawbreakers being brought to justice.

The second indicator is quality governance. The purpose of improving the electoral system is to avoid a certain kind of competition among candidates, which may lead to rifts and conflicts in society, causing social dissension and divisions in the community. The indicator of success is the ability to recruit different talents into the governing team in future. As the saying goes, "Only the toughest grass can stand the test of strong winds, and the true and faithful can only be identified in times of trouble". In this regard, I think we should spare no efforts in recruiting new talents into the governing team through all channels. We have to break the traditional rigidity and broaden our horizons, so as to impress the community with an improved electoral system and talent mix.

Hong Kong has all along upheld the principle of "small government, big market". This is fully reflected in the present fight against the epidemic. We can see that no matter how hard the Government appeals to the public to undergo testing and get vaccinated, the effectiveness is not comparable to the incentives provided by the business sector and the market. The business sector has organized a number of lucky draws and offered various kinds of incentives to lure more members of the public to get vaccinated without raising weird concerns. It is funny that Hong Kong people will go in the opposite of whatever direction the Government tells them to go. Apart from political issues, they dislike whatever arrangements the Government has made for them. If the arrangements are made by the market with no mandatory requirements, they will accept them. They are like kids, who simply refuse to do whatever they are told. Therefore, in my opinion, the Government should provide only 70% of the vaccines at most in future. This is tantamount to serving food that is not enough for everyone at the dining table, thereby leaving people to scramble for the vaccines.

Another aspect is confidence. At present, many Hong Kong people are refuse to get vaccinated due to their belligerence, while some others prefer to be part of the 30% of the population out of fear. They hoped that the remaining 70% of the population will get vaccinated to produce immunity. However, I 7246 LEGISLATIVE COUNCIL ― 9 June 2021 think they are selfish and have brought trouble upon themselves. In the face of a confidence crisis, I advise the Government and Members to keep a sincere, humble, determined and caring heart. Can your deeds eventually make members of the public feel your care? If we want the Government to achieve implementation efficiency as high as the Mainland Government, I believe this would not be possible for a long while. Yet, we can capitalize on the advantage of "small government, big market". We may take this anti-epidemic experience as the first step. The Government can encourage the business sector and the market to play their role, which I think is acceptable to members of the public, probably because this is the culture of Hong Kong and the characteristics of a capitalist society. I hope that this time Hong Kong can leverage the advantages under "one country, two systems" by maximizing the market forces. Deputy President, I so submit.

MR YIU SI-WING (in Cantonese): Deputy President, first of all, I thank Mr Jeffrey LAM for proposing the motion on "Rebuilding public confidence". Due to time constraints, I will only focus on the part about boosting the economy.

The economy of Hong Kong is dominated by the service sector which, in the past 10 years, accounted for 92% of GDP (Gross Domestic Product). The four pillar industries in Hong Kong's economy, namely trading and logistics, financial services, professional and producer services and tourism accounted for more than half of GDP in 2019. Although the tourism industry accounts for a small proportion of GDP, it provides a large number of low-skilled jobs. COVID-19 has plagued Hong Kong for nearly a year and a half, and has become a global pandemic. The epidemic situation has been volatile, not knowing when the epidemic will end and it is possible that it may not disappear completely. Various countries must look for ways to coexist with the virus and get used to the new normal. The spread of the epidemic has severely hit the Hong Kong economy, especially tourism-related industries. Many enterprises have resorted to layoff, salary reduction and even closure. The affected employers and employees will inevitably lose confidence in the prospects.

In view of this, the Legislative Council set up the Subcommittee on Issues Relating to the Stimulation of Hong Kong's Economy late last year. While everyone was busy fighting the epidemic, it conducted discussions on various ways to revitalize the local economy and pave the way for economic recovery. Nevertheless, taking actions is better than engaging in discussions. I agree with LEGISLATIVE COUNCIL ― 9 June 2021 7247

Mr Jeffrey LAM's proposal that the Government should set up an Economic Stimulation Committee to formulate action plans for post-pandemic economic recovery.

Concerning the action plans, I think we have to consider two aspects: First, we must grasp the opportunity of the development of the Guangdong-Hong Kong-Macao Greater Bay Area ("GBA"). The Mainland was the only major economy that achieved positive growth last year, and GBA is one of the regions with awesome development potential in the Mainland economy and has the support of many national policies. Along with the development of GBA, Hong Kong can use the experience of the service sector accumulated over the years to assist in the development of related industries in GBA. In particular, the financial services as well as the professional and producer services in Hong Kong have always enjoyed advantages. They can continue to perform their capital raising and connectivity functions, and develop insurance after-sales services, etc., contributing their strengths and complementing each other. Regarding the tourism industry, the Ministry of Culture and Tourism promulgated the Culture and Tourism Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area early this year, which sets out the directions for the overall cultural and tourism development of GBA, facilitates the development of Guangdong, Hong Kong and Macao, and attracts overseas tourists and tourists from other mainland provinces and cities to embark on multi-destination journeys to Hong Kong and the two places above. This will strengthen the positions of Hong Kong as an international metropolis as well as an international tourism and aviation hub.

Second, we must continue to invest resources in the development of innovation and technology. In recent years, the Government has attached great importance to the development of innovation and technology. It has invested tens of billions of dollars each year to create technological innovation atmosphere that can attract relevant enterprises and talents. In terms of digital competitiveness, the performance of technology infrastructure and innovation index, etc., Hong Kong is currently amongst those at the forefront of the world. The Outline of the 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Long-Range Objectives Through the Year 2035 also supports the development of Hong Kong into an "international innovation and technology hub". The first standard patent under the original grant patent system has recently been granted in Hong Kong, and this provides a convenient, direct and expeditious route for patent applicants and provides better protection for the results of scientific research. I hope that more 7248 LEGISLATIVE COUNCIL ― 9 June 2021 results of scientific research can be commercialized to effectively improve the quality of life of the public and solve daily life problems. As long as we make good use of high and new technologies, we will definitely find a way to get out from the predicament and boost the Hong Kong economy.

With these remarks, Deputy President, I support the original motion and the amendment.

MR FRANKIE YICK (in Cantonese): Deputy President, after the National Security Law came into effect on 30 June last year, the social destruction brought by the "black-clad violence" has finally come to a stop. The recent passage of the Public Offices (Candidacy and Taking Up Offices) (Miscellaneous Amendments) Bill 2021 and the Improving Electoral System (Consolidated Amendments) Bill 2021, which ensure "patriots administering Hong Kong", will lay a more solid foundation for the long-term prosperity and stability of Hong Kong.

Now that society is back on track, the Liberal Party hopes that the current-term SAR Government will seize the opportunity to restore public confidence in it. As Hong Kong has gone through two dark years of economic decline owing to the "black-clad violence" and the novel coronavirus epidemic, in order to stimulate the economy, the Liberal Party welcomes that the Government has taken on board the proposal to issue consumption vouchers to the public. As long as the vouchers are used for local consumption, the Government should not impose excessive restrictions on their use and should disburse them as soon as possible.

Apart from stimulating consumption to boost the economy, the Liberal Party also hopes that the SAR Government will make efforts to enhance industrial development and increase job opportunities so that people will not have to worry about their livelihood. The country's advocacy of the Belt and Road Initiative, promotion of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area and implementation of the 14th Five-Year Plan will all help boost the demand for logistics services in the region. In order to seize the opportunities, the neighbouring People's Government of Guangdong Province has already worked hard to improve the hub port facilities in its province. By contrast, Hong Kong is still living off its past success. In the absence of new competitive advantages, the port ranking of Hong Kong has gradually fallen to rank eighth.

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Although the Government always stresses that the trading and logistics industry is one of Hong Kong's four key economic pillars, its support has been seriously insufficient. Take the long-standing acute shortage of sites for logistics development as an example, there has been no signs of improvement over the years. In recent years, in order to alleviate the strong demand for housing, the Government has blindly put land for housing purposes, thereby reducing the land supply for economic development. Apart from some short-term tenancy sites which have been resumed for housing development, many logistics and warehousing companies previously being forced to move to the brownfield sites in the New Territories because of the revitalization of industrial buildings are now facing another eviction. In fact, years of development has already made brownfield sites an important source of land supporting port and logistics development. Unfortunately, these sites are in great shortage now. Some brownfield operators facing eviction are so frustrated that they decide to quit their business. This will undoubtedly hinder the long-term development of the logistics industry.

As the Government has often failed to provide land as promised, the trade is greatly disappointed. Apart from the 10 hectares of land in Tuen Mun West―among which only 3.5 hectares have been provided so far―the land use of Tuen Mun Areas 40 and 46 totalling 10 hectares will be reconsidered under the land use study of Lung Kwu Tan. As for the logistics park originally planned to be built in Siu Ho Wan after reclamation, the site will now be used for housing development instead. In addition, one third of the topside space at Hong Kong Boundary Crossing Facilities island of Hong Kong-Zhuhai-Macao Bridge was initially planned for logistics use, but this area will now be significantly reduced. Although the Government has reserved 60 hectares of land for logistics use in Hung Shui Kiu, the site formation works will not be completed until 2023 at the earliest. So, we have no idea about when this site will be available. Apart from that, the logistics sites at San Tin/Lok Ma Chau and the Man Kam To Logistics Corridor are still under study. In this case, how can the trade members develop their business with confidence? How can Hong Kong compete with the fast-growing neighbouring cities in the race of logistics development at our pace?

The ultimate reason for the present shortage of land and manpower in the logistic industry is the Government's absence of long-term planning. Therefore, the Liberal Party hopes that the Government can set up a statutory body similar to the Airport Authority Hong Kong, which will be conferred with decision-making and execution powers. It is hoped that by formulating a long-term development 7250 LEGISLATIVE COUNCIL ― 9 June 2021 blueprint for Hong Kong's shipping and logistics industry and drawing up land and manpower plans according to this blueprint, we can restore the confidence of the trade and promote the sustainable development of Hong Kong's shipping and logistics industry.

Deputy President, although the economic performance of Hong Kong in the first quarter was not that bad and recorded a 5.4% growth in real GDP, the overall business environment is still difficult and small and medium enterprises are financially hard-pressed. The Liberal Party hopes that the relief measures previously introduced by the Government can continue and more waivers/concessions of government fees can be introduced by all means to give enterprises some breathing space.

Deputy President, I so submit.

MR HOLDEN CHOW (in Cantonese): Deputy President, I thank Mr Jeffrey LAM for proposing the motion on "Rebuilding public confidence" today and Dr Junius HO for proposing the amendment. I support the original motion and the amendment.

First of all, the original motion has specially mentioned how to boost the economy, which Members are more concerned about. Regarding the setting up of an Economic Stimulation Committee, I believe that planning is needed for boosting the economic development of Hong Kong in the long term after the pandemic is over. In the short term, I agree with what many colleagues have mentioned earlier in their speeches that the most important thing to do now is to effectively raise the vaccination rate. I think that the Government can and should provide more incentives to encourage the public to receive vaccination.

However, I opine that the Government can enhance its publicity work at the same time. For instance, on the weekend which has just passed, a confirmed case with the mutant strain of COVID-19 was found in Tin Shui Wai. In fact, when we communicated with members of the public during our visits to the districts, we found that many of them did not know that they would not be subject to compulsory testing if they had been administered with two doses of COVID-19 vaccine 14 days ago. However, the publicity on this message appears to be inadequate. When members of the public enquire us about the issue during our contacts with them in the street, we can explain to them as we know the situation. LEGISLATIVE COUNCIL ― 9 June 2021 7251

However, if the Government can inform the public of this message in a more extensive manner so that they know anyone who has been administered with two doses of vaccine successfully 14 days ago will not be subject to compulsory testing, they can at least instantly see the incidental benefits of vaccination. In fact, I think that the Government's publicity in this respect is indispensable. It can step up publicity to inform members of the public that vaccination can bring about benefits and incidental consequence.

Besides, in the original motion today, Mr Jeffrey LAM has also mentioned youth development. Deputy President, as I have said all along, to enable young people to move upwards, we have to be particularly concerned about the types of job opportunities which can be provided for them. As we have said in the past, the industries of Hong Kong were overly unitary which only focus on finance and estates. Recently, I have stated time and again that Hong Kong does have the conditions to implement re-industrialization. What I am talking about is high-technology re-industrialization, e.g. producing the most high-end technology products. In this respect, Hong Kong may make use of the Loop to proceed in this direction of development. However, a simpler way is the intelligentization of traditional industries, that is, the installation of smart production lines in some existing traditional industries to enhance the level of the industries as a whole, which can also bring about new job opportunities.

Deputy President, having visited some industry stakeholders recently, I realize that the food processing industry is absolutely advantageous in Hong Kong. Members will know when I cite some examples and figures. As shown by the figures of the Hong Kong Trade Development (TDC) in 2019, Hong Kong's export value for processed food alone was as high as $53.8 billion, with 47% (nearly 50%) of which being exported to the Mainland. As of 2020, there are 1 483 enterprises engaging in food processing, with over 28 000 employees being employed.

Deputy President, the speaking time of five minutes is not quite enough. I can only say that the food processing industry installed with smart production lines is absolutely promising. If the Government can really accept Mr Jeffrey LAM's proposal of setting up an Economic Stimulation Committee today, I think that the proposal of re-industrialization should also be included. Later, after the introduction of this new smart industry, a study should be conducted on how to provide young people with more new job opportunities. These employees are 7252 LEGISLATIVE COUNCIL ― 9 June 2021 no longer production workers in old factories but new skilled workers, and they have a promising prospect. In my opinion, the Government should do more in this aspect so that there will be new development in Hong Kong in the future.

Deputy President, I so submit.

MS YUNG HOI-YAN (in Cantonese): Deputy President, first of all, I am very grateful to Mr Jeffrey LAM for proposing this motion today so that Members can take this valuable opportunity to discuss which policies can be used to rebuild public confidence in the SAR Government.

First, let us discuss the issue of confidence. Why have members of the public lost confidence? The Government has introduced many measures, which include facilitating and encouraging the public to get vaccinated. Today, I have raised follow-up questions about vaccination, including how the Government should encourage more people to get vaccinated. While it is certainly worth encouraging for the Government to request the commercial sector to provide more incentives for the people to get vaccinated, we noticed that as many entrepreneurs have flocked to support vaccination for all, it has gradually given rise to a problem. As numerous activities have been launched, members of the public may be pretty confused. It may take them two or three hours to complete the enrolment, and it is also very time-consuming to click on the various links. What can members of the public do if they cannot complete all the enrolments? They may seek assistance from District Council members or personnel of their district offices. However, the Government has not provided sufficient support in terms of resources and other means.

I noticed that Dr Junius HO's amendment has proposed to strengthen the powers of the 18 District Officers over the administration of the districts so that they can make rapid response and act proactively to address the concerns of the people promptly, in an endeavour to achieve the benefit of addressing district affairs at the district level. We very much hope that the Government can really address issues of people's livelihood and their concerns promptly. How can it be achieved? The Government has introduced measures to encourage the business sector to take actions, but people are most concerned about what the Government has done. We very much hope that the Government will really get more involved and connect with the districts. What should it do? Today, I suggested the Government to make use of the "LeaveHomeSafe" app to connect members of LEGISLATIVE COUNCIL ― 9 June 2021 7253 the public or the business sector with the Government, so that the business can launch lucky draws or offer prizes or other support as incentives and members of the public can enrol more easily. This will not only help the public, but also encourage them to download the "LeaveHomeSafe" app and lure them to get vaccinated. However, the Secretary has not directly answered my question today, probably due to the time restraints. Even though the Government has not provided cash support in this regard―as I said, some foreign countries have provided cash support―and it is alright for it to avoid getting involved, it is important to facilitate their enrolments in the various lucky draws and other schemes, which are cordially welcomed by the people.

Just now I received many calls from members of the public, saying that my suggestion is good. If certain links or buttons are added to the "LeaveHomeSafe" app to enable people to enrol in all lucky draws by pressing a button, this will be very convenient for the people. While personal information of the people will not be disclosed, information about who have received two doses of vaccine will be available. I think this is a very good suggestion. Therefore, I hope that the Government will reconsider what is currently most needed by the people and what measures can truly facilitate them.

On addressing young people's concerns about education, career pursuit and home ownership, and encouraging their participation in politics as well as public policy discussion and debate, Mr Jeffrey LAM proposes to establish a Youth Development Coordination Unit to process the relevant work. I noticed that the Chief Executive has proposed in her election pledges in 2017 and a number of policy addresses to address young people's concerns about education, career pursuit and home ownership, and encouraging their participation in politics as well as public policy discussion and debate.

After the occurrence of the "black-clad violence" incidents in 2019, which has caused some disruptions, we are now experiencing the epidemic and a few years have passed. I noticed that the Government has launched the Greater Bay Area Youth Employment Scheme ("the Scheme"). Since the launch of the Scheme on 8 January, 320 enterprises have offered 2 400 job vacancies and received an overwhelming number of applications. This shows that enterprises and young people in Hong Kong have responded very enthusiastically and strongly supported the Scheme. It is also hoped the Government will do more work on the Scheme. Although cross-boundary travel has not resumed normal at present, everyone understands that Hong Kong is also one of many cities in the 7254 LEGISLATIVE COUNCIL ― 9 June 2021

Greater Bay Area. Even though traveller clearance has yet to resume normal during the epidemic, I hope that the Government can encourage everyone to have a clear perspective of the Greater Bay Area in developing and planning their career. I am also grateful to Mr Jeffrey LAM for proposing to set up an Economic Stimulation Committee. I think it is very important to make accountability officials (The buzzer sounded) … communicate more with the public.

Thank you.

DEPUTY PRESIDENT (in Cantonese): Ms YUNG Hoi-yan, your speaking time is up.

MR CHAN CHUN-YING (in Cantonese): Deputy President, Hong Kong has experienced the "black-clad violence" and the raging novel coronavirus epidemic over the past two years with its economy plunged straight to rock bottom. Since the formal implementation of the National Security Law, society is largely stable; with the epidemic becoming slightly mitigated, the economy has also gradually showed a V-shaped rebound. People are looking forward to good order after serious chaos, and there is also a need to rebuild public confidence.

Noting the emerging variants of the novel coronavirus, it is anticipated that the epidemic will co-exist with humankind for a long while. In order to respond to this new normal, I thank Mr Jeffrey LAM for proposing this motion today to allow us to think about Hong Kong's future way out and to make up for the time lost when economic development remained stagnant.

To begin with, I agree to the proposal of "setting up an Economic Stimulation Committee to formulate action plans for post-pandemic economic recovery" in the motion. Member of the Governing Council of the European Central Bank cum the Governor of the Italian central bank Ignazio VISCO pointed out in April this year that the biggest threat to global economic recovery actually lies in the varied progress of novel coronavirus vaccination amongst different countries. Looking around the world, it can be said that all kinds of tactics have been employed to encourage people to get vaccinated. For instance, the State of Ohio of the United States has been providing US$1 million every week for a lucky draw for five consecutive weeks; youngsters may receive full LEGISLATIVE COUNCIL ― 9 June 2021 7255 scholarships from state universities; even the controversial hunting rifles have become prizes of the lucky draw. It can thus be seen that the governments of various countries are well aware of the importance of vaccination to restarting the economy, and are ready to pay a high price for it.

The encouraging measure of the SAR Government so far includes only the provision of vaccination leave. Civil servants will be granted one day of leave for each dose of vaccine taken, and the attractiveness is pretty limited. Nevertheless, realizing that vaccination is the only way to get Hong Kong's economy back on track, the business sector and different organizations actively responded to the "Early Vaccination for All" campaign launched at the end of last month. It is roughly estimated that the value of the rewards offered by the business sector so far is approximately $120 million. After developers have offered residential flats as rewards for the vaccination, they were followed by lucky draws of gold, chances to win $100,000 free credit card spending limits and free buffet for one year, etc. Dazzling prizes have been offered, involving numerous organizations. However, if members of the public want to take part in all the lucky draws, I believe they have much to prepare.

There is no doubt that the enthusiastic participation of Hong Kong's business sector has provided a very strong incentive for people to get vaccinated, which is conducive to relaunching our economic activities as soon as possible. However, providing convenience to the public is also a substantial problem. Since the Government is not quite willing to get involved, the proposed Economic Stimulation Committee may play the role of a super connector. Apart from maintaining its continuous efforts to encourage other organizations in the business sector to participate, it can also consolidate the information of different lucky draws and upload it to a dedicated website, or even release the relevant information via the media on a regular basis for the knowledge of the public.

The electronic consumption vouchers to be disbursed soon also belong to measures to boost the economy. After the "black-clad violence" incidents occurred in 2019, local consumption has remained sluggish. Coupled with the fact that visitors from overseas and the Mainland were discouraged to come, many Members had already repeatedly requested the Government to use consumption vouchers to encourage local spending. The Economic Stimulation Committee can play an even more direct role in liaising with different trades and merchants for their participation in the electronic consumption voucher scheme, and setting out all the information in the most convenient form, e.g. compiling 7256 LEGISLATIVE COUNCIL ― 9 June 2021 lists of restaurants and shops that offer additional discounts and their accepted means of payment. In other words, it helps to draw a map of consumption voucher to facilitate members of the public in dining, shopping and entertainment, so as to unleash their repressed shopping desire.

It requires a stable social environment to boost the economy. Item (2) of the motion highlights the importance of "extensively collecting public views" before formulating policies. I absolutely agree to this. Therefore, during the Chief Executive's Question Time of the Legislative Council held last week, I asked the Chief Executive again if she would resume holding Community Dialogue sessions, with an aim to allow people from all walks of life to directly express their views to the Government.

Deputy President, rebuilding confidence cannot be achieved overnight, yet it will never be wrong to listen more to people's views and share the public's urgent concern. As Dr Junius HO's amendment also seeks to improve people's livelihood, I will therefore support both the original motion and the amendment.

I so submit. Thank you, Deputy President.

MR TONY TSE (in Cantonese): Deputy President, the passage and commencement of the bill on improving the electoral system at the end of last month, together with the implementation of the National Security Law, has led Hong Kong to a brand new political setting, which can ensure the steadfast and successful implementation of "one country, two systems". But since the economy of Hong Kong has not yet recovered from the COVID-19 epidemic, adding that deep-seated conflicts, such as housing and youth problems, are not yet resolved, it is thus very timely for this Council to discuss the motion on "Rebuilding public confidence" today.

Mr Jeffrey LAM has put forward three proposals, including formulating action plans for economic recovery, extensively collecting public views in the process of formulating major economic and livelihood-related policies, and actively addressing young people's concerns about education, career pursuit and home ownership. I concur with the general direction, but there are divergent views in the community on what specifically should be done.

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The first proposal is to set up an Economic Stimulation Committee. Previously, the SAR Government has set up a number of committees of various sizes and recruited people from different fields to be members, among them are business leaders, professionals, experts and academics, to offer advice and suggestions on Hong Kong's economic development and other issues. The question is: how much advice has the Government taken eventually? Does it have the determination and ability to put them into practice? What concrete results have been achieved? Many people have doubts about it.

The second proposal is for accountability officials to extensively collect public views and hold discussions with the public by way of participating in forums in various districts and utilizing social platforms. The SAR Government has conducted a lot of consultation exercises in the past. While some of them have proved to be effective, in some cases, particularly consultations on land and housing development, the processes were repetitive and time-consuming but the results were unsatisfactory. Public discussions eventually became discussions without decision, and decision without action.

Furthermore, there have been many online and offline consultations in recent years, but they were usually controlled and hijacked by a small group of people, who kept amplifying their opposition voices, spreading widely untrue information and completely overshadowing the well-intentioned and constructive opinions. The extensively collected public views have been twisted, making the Government even more stagnant in its governance. I have no objection to the Government's attempts to conduct consultations or listen to public views, but there must be appropriate and effective ways to distinguish between rational and unreasonable opinions. After examining the opinions, the Government should make decisions and implement them as soon as possible, instead of sitting on its hands and doing nothing because of the divergent views.

The last proposal is about the issue of young people's concerns about education, career pursuit and home ownership, and encouraging their participation in politics as well as public policy discussion and debate. Could these issues be solved through the establishment of a Youth Development Coordination Unit? Regarding those three concerns of young people, in the past few years, many young people in Hong Kong have already been very active in participating in politics as well as public policy discussion and debate. How can we encourage them to discuss politics in a peaceful, rational, objective and inclusive manner? Is setting up a new unit the most effective way?

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Compared to the original motion, Dr Junius HO's amendment is worthy of support. He suggests strengthening the powers of the 18 District Officers over the administration of the districts so that they can make rapid response and act proactively to address the concerns of the people promptly, thus achieving the benefit of "addressing district affairs at the district level". In recent years, there have been many problems regarding the performance of District Councils as district-based advisory bodies, including an overemphasis on the narrow district interests, increasingly lengthy and ineffective meetings, and increasingly politicized discussions.

As the electoral and deliberative systems of the Legislative Council have been reformed, it is also necessary to improve the relevant systems of the District Councils. Apart from strengthening the powers of the District Officers, their roles in listening to and channelling public opinions at the district level should also be strengthened, which include assisting in taking forward development plans and programmes that are beneficial to the districts and Hong Kong as a whole. I hope that the Government can think about this seriously.

Deputy President, I so submit.

MR SHIU KA-FAI (in Cantonese): Deputy President, first of all, I would like to thank Mr Jeffrey LAM for proposing the original motion today. The several most important issues in Hong Kong now are overcoming the epidemic, resolving housing problems, which we discussed this morning, and rebuilding public confidence. Therefore, Mr Jeffrey LAM's motion is right to the point as it focuses on developing Hong Kong's economy, improving people's livelihood, enhancing the communication with people and nurturing young people. I believe all these are general directions and worthy of support.

How should we start rebuilding public confidence? In my view, if we are to rebuild public confidence, we have to first rebuild the public's confidence in the Government, and then they will continue to participate in society. Recently, I have noted a rebound in the popularity rating of the Chief Executive. Different people around me such as some middle-aged women and housewives often said to me that the Government seemed to be doing better and better now, and there were improvements in healthcare services, public transport, etc. When I asked them how they found out, they said that as seen from news reports, various Policy LEGISLATIVE COUNCIL ― 9 June 2021 7259

Bureaux have been using graphics to explain new policies to be introduced which are easier to understand. What is more, the epidemic also started to come under control. Chief Secretary, do you know how I responded to them? I told them actually the SAR Government had all along been doing a good job and had done a lot. It committed $500 billion to Hong Kong in one year. How was the money spent? To help members of the public. The problem is they were not aware of that in the past.

Why is the Government's popularity rating on the rise now and there are people start praising the Government publicly? The first reason is that the Government has started putting in more publicity efforts through various platforms to explain its policies, and people have become aware of what it is doing. The second one is certainly because the social atmosphere has calmed down and the group of people who used to make a scene all the time have gone. Members can now focus on discussing livelihood-related policies, and people have also started listening. In the past, before we went into the subject matter, say, increasing transport subsidy, those people would keep reproaching, accusing someone of murder, rape or kidnapping. How could we have a discussion then?

The law to improve the electoral system and the National Security Law have restored normality to Hong Kong and allowed us to focus on livelihood-related issues. If we are to rebuild public confidence, we should convey the right messages to Hong Kong people. Regarding fake news and fake information of the past, we have to explain to Hong Kong people and rebut them one by one. Whatever the Government do will not do harm but help the people. All those information is utterly false. If the public always think that someone got shot in the eye, some people died in the "31 August" incident and were buried in unknown places, or young girls got gang raped, what can we do? Nevertheless, some people condone such fake news, but none of it is true.

We can all see, and I can also tell the Chief Secretary, that the popularity rating of the SAR Government has hit rock bottom and will keep rising from now on. Therefore, I hope that all colleagues will continue to work hard. Secretary TSUI has earlier facilitated the reopening of entertainment establishments and mahjong parlours. Many people feel very pleased because they can work again. This policy is beneficial to the public. Also, the Secretary often introduces measures to support the business sector, such as organizing exhibitions and encouraging people to go out more often. These measures can benefit Hong 7260 LEGISLATIVE COUNCIL ― 9 June 2021

Kong people. However, the point is the SAR Government has to make Hong Kong people believe it is sincere in helping them. As to how to make them believe, the key lies in the Government's publicity efforts.

That being the case, the Government's resources allocated to television or media advertisements have not gone down the drain. Public opinion can be reflected in the Government's popularity rating. Thus, I hope that the colleagues in the Government will keep working hard to disseminate good news so that we may focus on our discussion. The Government will soon introduce electronic consumption vouchers. Today, several radio stations have interviewed members of the public about the use of the money. Recently, many big businessmen have offered gold and residential units as lucky draw prizes. People are ecstatic about them. This is Hong Kong as we know it, isn't it? When people trust the Government and realize its policies, Hong Kong will hit a purple patch.

Lastly, I wish to talk about Dr Junius HO's amendment. If the 18 District Officers are highly competent and excel at their jobs, it will certainly be good to increase their powers so that they can handle all matters. Yet, I do not have to say in detail what happened in the District Councils over the past year or so. I had a caucus meeting yesterday, during which a District Council members from my party set out the problems with the District Officers on three sheets of paper. I am not going to repeat these problems now because they told me not to do so for the time being. I will refer the matter to Secretary TSUI. If District Officers are given more powers before the problems with them or the District Councils are addressed, we are very worried that this may give rise to other problems. Nevertheless, the general principle behind Dr Junius HO's amendment is sound, just that it may not be the right time.

Thank you, Deputy President.

MR LEUNG CHE-CHEUNG (in Cantonese): Deputy President, I speak in support of Mr Jeffrey LAM's motion on "Rebuilding public confidence" and the amendment proposed by Dr Junius HO. Indeed, it is timely for Mr Jeffrey LAM to propose the motion on "Rebuilding public confidence" at this moment. Since the implementation of the National Security Law last year and after the Legislative Council has enacted legislation to improve the electoral system this year, our society has become more and more stable. So, all of us would like a new way out for society, and we all have to do something good for Hong Kong, our society, economy and people's livelihood.

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Since the term of the Legislative Council has been extended, this Council has been dominated by the pro-establishment camp and got back on the right track. Some livelihood policies or motions including the Budget have also revealed the demands of the public. Therefore, some have told me that the Legislative Council meetings are proceeding very quickly and many motions have been passed really quickly. I have explained to them that the speed is not particularly high, but the motions were passed without filibustering, which is a healthy situation.

(THE PRESIDENT resumed the Chair)

I think this is an important moment for us to discuss how to rebuild public confidence, and particularly Mr Jeffrey LAM's proposal on setting up an Economic Stimulation Committee. We all know that it is not easy to boost the economy under the epidemic because at least traveller clearance has yet to be resumed and there are barriers affecting the economic ties of the entire society. Since I believe the Committee will have a role to play in improving the Hong Kong economy after the epidemic, I strongly support Mr Jeffrey LAM's proposal to formulate action plans. I also support the amendment proposed by Dr Junius HO, particularly the proposal of "strengthening the powers of the 18 District Officers over the administration of the districts". As far as I remember, when Donald TSANG was the Chief Executive, he had also proposed the concept of "junior chief executives in the 18 districts" and the two concepts are actually quite similar. If the relevant concept can be put into practice, the executive-led structure in the districts will better meet the demands of society at present, which will increase efficiency. Hence, I strongly support the proposals of these two Members.

I have discussed with social workers responsible for youth work for half an hour today. They took the initiative to contact me and expressed views on community networking. I am a pro-establishment Member, and although they do not call themselves pro-establishment people, they do not call themselves "yellow ribbons" either. Nevertheless, they think that members of the community should not be divided into "yellow" and "blue" camps anymore, and need to break the so-called "rigid boundary" so as to play a mutually supportive role in respect of social services. I think their ideas are worthy of support by us and the Secretary in particular. We should allow the "junior chief executives in 7262 LEGISLATIVE COUNCIL ― 9 June 2021 the districts" to help us break the so-called "rigid boundary", so that we can restore mutual accommodation in society as in the old days when everyone worked together for Hong Kong. I hope that we, led by Mr Jeffrey LAM, can urge the Government to expeditiously set up an Economic Stimulation Committee and to do a good job in youth work.

I so submit.

PRESIDENT (in Cantonese): Does any other Member wish to speak?

(No Member indicated a wish to speak)

PRESIDENT (in Cantonese): Mr Jeffrey LAM, you may now speak on the amendment.

MR JEFFREY LAM (in Cantonese): President, first of all, I would like to thank the 15 Members for speaking on my motion, and giving a lot of constructive views to enrich the content of this motion.

Dr Junius HO has proposed the amendment in the hope of strengthening the powers of the 18 District Officers over the administration of the districts so that they can make rapid response and act proactively to address the concerns of the people promptly, in an endeavor to achieve the benefit of "addressing district affairs at the district level". I agree with this. In fact, the 18 District Officers can play a more proactive bridging role in the various policies of the Government, so that public sentiments can be promptly catered for during policy formulation, so as to enable that policies can be implemented at the district level in an intact and undistorted manner.

Taking the anti-epidemic work as an example, in the face of the recent epidemic in Guangdong, the local authorities have made decisions and taken actions swiftly, and carried out virus testing on all fronts to maintain residents' confidence. By contrast, when the epidemic in Hong Kong was rather severe at the previous stage, the Government had initially encountered many problems in imposing lockdowns on certain areas for compulsory testing. But after a period of time, it managed to carry out such lockdowns for compulsory testing smoothly.

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In my opinion, being the district representatives of the Government, the 18 District Officers should be patriots who are most familiar with the situation of the districts. Once they get hold of the information on lockdowns, they can draw up a list of questions and answers to enable residents within the areas locked down for compulsory testing to rest assured and understand that everything will be carried out orderly. In that case, the residents will not feel that nobody cares about their psychology and conditioned emotional reactions.

Apart from enhancing the work of "addressing district affairs at the district level", the 18 District Officers can also properly play a spearhead role in government policies with wide-ranging effects by keeping their ears open, and not concealing anything but telling all that they know. For instance, in the recent boosting of inoculation by government and business sectors, District Officers, being the parents of the local residents, should maintain close liaison with district leaders and community leaders to enhance publicity on information about the community vaccination centres within the districts as well as the latest number of vaccines stored. It would be best if they can release first-hand information as soon as possible so that people who take a wait-and-see approach can grasp the relevant information in a timely manner, and make up their mind and receive vaccination early.

President, for District Officers who are courageous, they will be in a better position to make one step forward by serving as a "thermometer" in the districts, so that "public participation" will no longer be a mere slogan but can be realized from bottom up in a practical manner.

It is worth noting that after the 2019 District Council ("DC") Election, the situation of DCs making everything political is serious. Some members have blatantly included agendas items that oppose the Central Authorities and cause disturbance to the law and order of Hong Kong, causing DCs to lose their original function of conducting district consultation. I suggest that District Officers should, within their capacities, continue to follow up on the relevant situation, so as to rectify and resolve the situation at source.

President, the key to revitalize the economy, allow Hong Kong people to enjoy quarantine-free traveller clearance and restore a normal life is to win the battle of vaccination, so that everyone in Hong Kong will have confidence in the vaccines, and act quickly to make reservations and receive vaccination early. 7264 LEGISLATIVE COUNCIL ― 9 June 2021

Otherwise, any ambitious plans to boost the economy are empty talks only. By that time, we will all fall into the vicious cycle of epidemic fatigue and various social strata and different sectors will become big losers.

Last but not least, I wish to stress that I have never lost confidence in Hong Kong. I also strongly believe under the support of the country, Hong Kong can definitely get out of the present predicament. With the implementation of the National Security Law and the improved electoral system, Hong Kong will be able to focus on economic and livelihood issues in the future, whereas the general public will understand the painstaking efforts of the Central Authorities and the SAR Government and rebuild their confidence in society.

President, with these remarks, I support Dr Junius HO's amendment.

CHIEF SECRETARY FOR ADMINISTRATION (in Cantonese): President, I am grateful for the valuable opinions and advice given by the 15 Members. I will now give my brief response.

Firstly, I note that Members are eager for an expeditious resumption of traveller clearance between Hong Kong and the Mainland. Indeed, a higher vaccination rate to create herd immunity as soon as possible is the prerequisite for Hong Kong to resume normal economic activities. It is also the most effective way to help Hong Kong expeditiously resume movement of people with the Mainland and overseas. These are very crucial for us to get out of the economic doldrums quickly. The SAR Government has maintained close communication with the Mainland authorities, but traveller clearance can only be resumed when the epidemic situation in Hong Kong is stable and fully under control, and the vaccination rate must also reach a high level.

Although the fourth wave of the epidemic is almost over, cases involving highly transmissible virus variants from unknown sources re-emerged last week, sounding the alarm of the epidemic. For Hong Kong to truly get rid of the epidemic, mass vaccination is the most important or can even be said to be the only effective option. In fact, the experiences of places with high vaccination rate have well proved that mass vaccination can greatly reduce the numbers of confirmed cases and deaths. These places have gradually relaxed their social distancing measures.

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We are pleased to see that the business community has actively responded to the Government's "Early Vaccination for All" campaign by launching various lucky draws and offering a range of prizes on their own initiatives to encourage early vaccination. This is an excellent example of tripartite collaboration among the community, the business sector and the Government.

Some Members said that Hong Kong must firmly grasp the enormous opportunities brought by the National 14th Five-Year Plan, the Belt and Road development the development of the Guangdong-Hong Kong-Macao Greater Bay Area ("GBA"), and we very much agree with them.

As I mentioned in my opening speech, our country is the strongest backing force for Hong Kong to revive our economy after the epidemic. Under the country's new development strategy of dual circulation in the 14th Five-Year Plan period, as long as Hong Kong can properly recognize our position and function in the country's development, we will be able to seize the opportunities to drive our economic development. In terms of domestic circulation, the Mainland keeps promoting high-quality development in its economic progression as its domestic demand continues to grow. Leveraging our close proximity, Hong Kong can make use of the GBA development as an entry point to participate actively in the development of our country's domestic circulation for capturing the enormous business opportunities. The Government understands that, be it for the mutual market access for financial services, cooperation and collaboration in respect of innovation and technology, or people's stay and living across the boundary, continued innovation in institutional and policy arrangement is needed so as to ensure a smoother two-way flow of funds, people and factors of production. To better promote the relevant work, the SAR Government set up the Guangdong-Hong Kong-Macao Greater Bay Area Development Office under the Constitutional and Mainland Affairs Bureau in November last year to strengthen the planning, coordination and promotion of the various policies and measures relating to the GBA development, and enhance the community's understanding of the GBA development.

As for the international circulation, our country will implement measures for wider, broader and higher-level opening up. Capitalizing on the unique advantages of "one country, two systems", as well as our deep and extensive business connections with the world, Hong Kong has all along performed the roles and functions such as a springboard, an intermediary, a facilitator, a high value-added service platform, a testing ground and a firewall in different stages of 7266 LEGISLATIVE COUNCIL ― 9 June 2021 the country's development. In addition, Hong Kong can pool international capital and talent, and keep enhancing and enriching the interaction and connection between the Mainland and international markets, as well as the connection between the country's and international standards. In future, Hong Kong will play a more active role in the promotion of domestic and international dual circulation to assist the country's development on the one hand, and on the other hand, consolidate our status as international financial, transportation and trade centres as well as an international aviation hub, and speed up our development as an international innovation and technology hub.

In respect of district affairs, Members are gravely concerned about the proposal of strengthening the powers of the 18 District Officers ("DOs") over the administration of the districts. I would like to reiterate that the Government attaches great importance to district development and fully supports DOs in district administration.

Currently, each of the 18 districts has a District Management Committee ("DMC") chaired by a DO. DMC is a government committee consisting of representatives of the core departments in the district. Under the DO's leadership, DMC provides a forum for departments to discuss and resolve district problems. Meanwhile, it will respond appropriately to the advice and requests of the District Councils ("DCs") and submit a comprehensive written report on its work at DC's meetings.

In order to tackle district problems which are long-standing, of large magnitude and complex, and actively identify local opportunities, the District-led Actions Scheme ("DAS") is implemented under the coordination of DMC and with the participation of DCs and the collaboration of relevant government departments to put into practice the concept of "addressing district issues at the local level and capitalizing on local opportunities". Given the satisfactory results of DAS, the annual recurrent provision for DAS has been increased from 2020-2021 onwards.

I would like to take this opportunity to thank DOs of the 18 Districts for their persistent efforts and local communities for their support. In recent months, DOs and their teams have done much to coordinate and support the many mandatory testing and operations in "restricted areas" carried out in different districts amid the epidemic. The importance of their role is fully demonstrated. LEGISLATIVE COUNCIL ― 9 June 2021 7267

I believe all bureaux and departments will continue to give full support to DOs so as to enhance the Government's abilities to resolve district issues, address livelihood issues and improve community development.

President, it has been nearly 24 years since Hong Kong's return to the Motherland. Under "one country, two systems", we have maintained our core values and institutional strengths for Hong Kong to keep playing an important role in our country's development and the international arena. This achievement which represents generations of sweat and toil in Hong Kong should be cherished. Although Hong Kong has faced unprecedented challenges over the past two years, as long as we stay true to our aspiration in implementing "one country, two systems" and take the long-term prosperity and stability of Hong Kong as our common goal, I am confident that Hong Kong will shine again.

In the last year of the current term, the SAR Government will make good use of the hard-won stability and rationality and make every effort to solve livelihood issues. We will also seize the huge economic opportunities brought by the 14th Five-Year Plan and the development of GBA for Hong Kong to start afresh. In the process, we will remain open and humble, give clear accounts, listen humbly to views and suggestions from different sectors, strengthen communication and interaction with the public to narrow differences and forge consensus, so as to win the trust and support of the public and rebuild public confidence.

President, I so submit.

PRESIDENT (in Cantonese): I now call upon Dr Junius HO to move an amendment.

DR JUNIUS HO (in Cantonese): President, I move my amendment.

The amendment moved by Dr Junius HO (See the marked-up version at Annex 5)

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the amendment moved by Dr Junius HO be passed.

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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 of each of the two groups of Members present, that is, those returned by functional constituencies and those returned by geographical constituencies through direct elections.

I declare the amendment passed.

PRESIDENT (in Cantonese): I now put the question to you and that is: That the motion moved by Mr Jeffrey LAM, as amended by Dr Junius HO, 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 of each of the two groups of Members present, that is, those returned by functional constituencies and those returned by geographical constituencies through direct elections.

I declare the motion as amended passed.

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NEXT MEETING

PRESIDENT (in Cantonese): I now adjourn the Council until 11:00 am on Wednesday, 16 June 2021.

Adjourned accordingly at 6:14 pm.

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Annex 1

The marked-up version of the amendment moved by Mr Tony TSE (Translation)

That, for a long time, the prolonged serious shortage of land supply available for development in Hong Kong not only fails has not only failed to satisfy people's enormous demand for housing but also hinders hindered the development of various industries; given that land shortage has become the biggest obstacle to Hong Kong's development, this Council requests the Government to exhaust all means to increase the short-, medium- and long-term land supply on all fronts and streamline and expedite the land development and, planning and approval procedures, thereby increasing the housing supply and speeding up industries' development; specific measures include:

(1) expeditiously taking forward the project of artificial islands in the Central Waters, and reviewing the scope of application of the Protection of the Harbour Ordinance to increase suitable sites for near-shore reclamation;

(2) developing sites with relatively low ecological value on the periphery of country parks, green belt areas and deserted agricultural land for housing construction the construction of housing and ancillary community facilities to alleviate the housing demand;

(3) expediting the development of the land of the former Frontier Closed Area for developing new towns and new industries;

(4) proactively invoking the Lands Resumption Ordinance to resume land for public housing construction and introducing an idle land tax actively playing the role of a 'facilitator' to facilitate and accelerate private housing development, so as to fully utilize land resources;

(5) improving the existing rehousing and compensation policies for land resumption, streamlining the lengthy process of land use study and planning by government departments, and reviewing the Town Planning Ordinance, so as to shorten the time for land rezoning and planning;

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(6) unleashing the potential of land by appropriately raising the highest development density of land in the New Territories, and establishing implementing a development principle prioritizing infrastructure and ancillary community facilities to take forward the development of strategic traffic and transport infrastructure, thereby increasing the carrying capacities of the communities and the land available for development;

(7) conducting studies on the relocation of large-scale facilities, such as the Fanling Golf Course and the Kwai Chung Container Terminals, so as to vacate a vast amount of land for housing construction and development; and

(8) striking a balance between land development and ecological conservation, including adding the requirement for developers to undertake conservation responsibilities in the land sale conditions, in order to reduce disputes arising from land development by reviewing the Environmental Impact Assessment Ordinance, as well as streamlining and expediting the environmental impact assessment process, thereby accelerating the land creation process.

Note: Mr Tony TSE's amendment is marked in bold and italic type or with deletion line.

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Annex 2

The marked-up version of the amendment moved by Ir Dr LO Wai-kwok (Translation)

That Hong Kong's housing problem has turned increasingly acute, with the average waiting time of general applicants for public housing reaching 5.8 years, hitting a record high in 22 years; the prolonged shortage of land supply in Hong Kong not only fails to satisfy people's enormous demand for housing but also hinders the development of various industries; given that land shortage has become the biggest obstacle to Hong Kong's development, this Council requests the Government to exhaust all means to increase the short-, medium- and long-term land supply on all fronts and expedite the land development and planning procedures, thereby increasing the housing supply and speeding up industries' development; specific measures include:

(1) expeditiously taking forward the project of artificial islands in the Central Waters and the feasibility studies on various reclamation plans for land creation, and reviewing the scope of application of the Protection of the Harbour Ordinance to increase suitable sites for near-shore reclamation;

(2) developing sites with relatively low ecological value on the periphery of country parks and green belt areas for housing construction to alleviate the housing demand;

(3) expediting the development of the land of the former Frontier Closed Area and progressively opening up the closed area of Sha Tau Kok Town for developing new towns and new industries;

(4) while proactively invoking the Lands Resumption Ordinance to resume land for public housing construction, conducting a comprehensive review on the existing ex-gratia zonal compensation system to ensure that the amount of compensation for land resumption will not be out of tune with the market prices, and introducing an idle land tax, so as to fully utilize while fully utilizing land resources, safeguarding various rights to which land owners are entitled as set out in the Basic Law;

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(5) improving the existing rehousing and compensation policies for land resumption, streamlining the lengthy process of land use study and planning by government departments, and reviewing the Town Planning Ordinance, so as to shorten the time for land rezoning and planning;

(6) unleashing the potential of land by expediting the redevelopment of old public housing estates while raising the highest development density of land in urban areas and the New Territories, and establishing a development principle prioritizing infrastructure and ancillary community facilities to take forward the development of strategic traffic and transport infrastructure, thereby increasing the carrying capacities of the communities and the land available for development;

(7) conducting studies on the relocation of large-scale facilities, such as the Fanling Golf Course and the Kwai Chung Container Terminals, so as to vacate a vast amount of land for housing construction and development; and

(8) striking a balance between land development and ecological conservation, including adding the requirement for developers to undertake conservation responsibilities in the land sale conditions enhancing the communication and coordination with developers, local stakeholders and conservation groups, in order to reduce disputes arising from land development, thereby accelerating the land creation process.

Note: Ir Dr LO Wai-kwok's amendment is marked in bold and italic type or with deletion line.

7274 LEGISLATIVE COUNCIL ― 9 June 2021

Annex 3

The marked-up version of the amendment moved by Mr Steven HO (Translation)

That, all along, the prolonged shortage of land supply in Hong Kong not only fails has not only failed to satisfy people's enormous demand for housing but also hinders hindered the development of various industries; given that land shortage has become the biggest obstacle to Hong Kong's development, this Council requests the Government to exhaust all means to increase the short-, medium- and long-term land supply on all fronts and expedite the land development and planning procedures, thereby increasing the housing supply and speeding up industries' development; specific measures include:

(1) after giving consideration to the needs of various stakeholders, expeditiously taking forward the project of artificial islands in the Central Waters, and reviewing the scope of application of the Protection of the Harbour Ordinance to increase suitable sites for near-shore reclamation;

(2) developing sites with relatively low ecological value on the periphery of country parks for housing construction to alleviate the housing demand;

(3) expediting the development of the land of the former Frontier Closed Area for developing new towns and new industries;

(4) proactively invoking the Lands Resumption Ordinance to resume land idle residential land lots or land suitable for rezoning to residential use for public housing construction and introducing an idle land tax, so as to fully utilize land resources;

(5) improving the existing rehousing and compensation policies for land resumption, streamlining the lengthy process of land use study and planning by government departments, and reviewing the Town Planning Ordinance, so as to shorten the time for land rezoning and planning;

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(6) unleashing the potential of land by raising the highest development density of land in the New Territories, and establishing a development principle prioritizing infrastructure and ancillary community facilities to take forward the development of strategic traffic and transport infrastructure, thereby increasing the carrying capacities of the communities and the land available for development; and, at the same time, relaxing the height restrictions on agricultural structures and reviewing outdated legislation on land use regulation so that vertical farming can be developed in Hong Kong to release more land;

(7) conducting studies on the relocation of large-scale facilities, such as the Fanling Golf Course and the Kwai Chung Container Terminals, so as to vacate a vast amount of land for housing construction and development; and

(8) striking a balance between land development and ecological conservation, including adding the requirement for developers to undertake conservation responsibilities in the land sale conditions, in order to reduce disputes arising from land development, thereby accelerating the land creation process;

(9) amending the stipulations in the New Territories Ordinance on the sale of Tso/Tong lands to release the development potential of such lands;

(10) by drawing reference from the approach of the study on brownfield sites, conducting a territory-wide study on green belt areas (approximately 15 000 hectares), so as to identify green belt areas suitable for rezoning to residential or other public uses;

(11) improving the compensation mechanism in respect of marine works, including further introducing a fund to promote the upgrading and restructuring of affected industries, as well as reserving space for the sustainable development of affected industries, so as to expedite the implementation of reclamation works; and

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(12) providing operators in the agricultural and fisheries industries, brownfield operators, as well as rural area and squatter residents with reasonable relocation compensation and options for resuming operation, and formulating a corresponding development policy, including solving the issue of unfeasible relocation of livestock farms, as well as consolidating afresh the agricultural land across the territory and introducing a policy for the upgrading and restructuring of the agricultural and fisheries industries, so as to vacate more land for the development of housing and industries.

Note: Mr Steven HO's amendment is marked in bold and italic type or with deletion line.

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Annex 4

The marked-up version of the amendment moved by Dr Junius HO (Translation)

That the prolonged shortage of land supply in Hong Kong not only fails to satisfy people's enormous demand for housing but also hinders the development of various industries; given that land shortage has become the biggest obstacle to Hong Kong's development, this Council requests the Government to exhaust all means to increase the short-, medium- and long-term land supply on all fronts and expedite the land development and planning procedures, thereby increasing the housing supply and speeding up industries' development; specific measures include:

(1) expeditiously taking forward the project of artificial islands in the Central Waters, and reviewing the scope of application of the Protection of the Harbour Ordinance to increase suitable sites for near-shore reclamation;

(2) developing sites with relatively low ecological value on the periphery of country parks for housing construction to alleviate the housing demand;

(3) expediting the development of the land of the former Frontier Closed Area for developing new towns and new industries;

(4) proactively invoking the Lands Resumption Ordinance to resume land for public housing construction and introducing an idle land tax, so as to fully utilize land resources;

(5) improving the existing rehousing and compensation policies for land resumption, streamlining the lengthy process of land use study and planning by government departments, and reviewing the Town Planning Ordinance, so as to shorten the time for land rezoning and planning;

(6) unleashing the potential of land by raising the highest development density of land in the New Territories, and establishing a development principle prioritizing infrastructure and ancillary 7278 LEGISLATIVE COUNCIL ― 9 June 2021

community facilities to take forward the development of strategic traffic and transport infrastructure, thereby increasing the carrying capacities of the communities and the land available for development;

(7) conducting studies on the relocation of large-scale facilities, such as the Fanling Golf Course and the Kwai Chung Container Terminals, so as to vacate a vast amount of land for housing construction and development; and

(8) striking a balance between land development and ecological conservation, including adding the requirement for developers to undertake conservation responsibilities in the land sale conditions, in order to reduce disputes arising from land development, thereby accelerating the land creation process;

(9) improving the arrangements for granting compensation on compassionate grounds and streamlining the relevant procedures, including offering reasonable amounts of compensation based on factors such as information in the Land Register, the potentials for development of the land and market prices to squatter residents, land users and owners affected by land resumption, which not only can resolve the conflicts between the Government and the public during land resumption, but also accelerate land resumption process, thereby increasing the overall land supply; and

(10) re-introducing a land bond similar to previous Letter B entitlements to offer owners affected by land resumption a non-monetary compensation option, so as to accelerate land resumption process, thereby increasing land supply.

Note: Dr Junius HO's amendment is marked in bold and italic type or with deletion line.

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Annex 5

The marked-up version of the amendment moved by Dr Junius HO (Translation)

That this Council urges the Government to formulate feasible policy measures to boost the economy and improve people's livelihood, establish positive interaction with the public and connect with young people, thereby rebuilding public confidence in the Government; specific proposals include:

(1) setting up an Economic Stimulation Committee to formulate action plans for post-pandemic economic recovery;

(2) accountability officials strengthening their communication with various stakeholders in the process of formulating major economic and livelihood-related policies and, by way of visiting various districts, organizing and participating in forums or meetings, utilizing social platforms, etc., extensively collecting public views and holding discussions with the public; and

(3) establishing a Youth Development Coordination Unit for one-stop processing of the work related to actively addressing young people's concerns about education, career pursuit and home ownership, and encouraging their participation in politics as well as public policy discussion and debate; and

(4) strengthening the powers of the 18 District Officers over the administration of the districts so that they can make rapid response and act proactively to address the concerns of the people promptly, in an endeavor to achieve the benefit of 'addressing district affairs at the district level', thereby improving people's livelihood.

Note: Dr Junius HO's amendment is marked in bold and italic type or with deletion line.