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12 July 2006 9371 LEGISLATIVE COUNCIL ─ 12 July 2006 9371 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 12 July 2006 The Council met at Eleven o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.S., J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. THE HONOURABLE ALBERT HO CHUN-YAN IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, S.B.S., S.B.ST.J., J.P. THE HONOURABLE LEE CHEUK-YAN DR THE HONOURABLE DAVID LI KWOK-PO, G.B.S., J.P. THE HONOURABLE FRED LI WAH-MING, J.P. DR THE HONOURABLE LUI MING-WAH, S.B.S., J.P. THE HONOURABLE MARGARET NG THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, G.B.S., J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHAN YUEN-HAN, J.P. 9372 LEGISLATIVE COUNCIL ─ 12 July 2006 THE HONOURABLE BERNARD CHAN, G.B.S., J.P. THE HONOURABLE CHAN KAM-LAM, S.B.S., J.P. THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE SIN CHUNG-KAI, J.P. DR THE HONOURABLE PHILIP WONG YU-HONG, G.B.S. THE HONOURABLE WONG YUNG-KAN, J.P. THE HONOURABLE JASPER TSANG YOK-SING, G.B.S., J.P. THE HONOURABLE HOWARD YOUNG, S.B.S., J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE LAU CHIN-SHEK, J.P. THE HONOURABLE LAU KONG-WAH, J.P. THE HONOURABLE LAU WONG-FAT, G.B.M., G.B.S., J.P. THE HONOURABLE MIRIAM LAU KIN-YEE, G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE CHOY SO-YUK, J.P. THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE TIMOTHY FOK TSUN-TING, G.B.S., J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, J.P. LEGISLATIVE COUNCIL ─ 12 July 2006 9373 THE HONOURABLE LI FUNG-YING, B.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE FREDERICK FUNG KIN-KEE, S.B.S., J.P. THE HONOURABLE AUDREY EU YUET-MEE, S.C., J.P. THE HONOURABLE VINCENT FANG KANG, J.P. THE HONOURABLE WONG KWOK-HING, M.H. THE HONOURABLE LEE WING-TAT THE HONOURABLE LI KWOK-YING, M.H., J.P. DR THE HONOURABLE JOSEPH LEE KOK-LONG, J.P. THE HONOURABLE DANIEL LAM WAI-KEUNG, S.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, S.B.S., J.P. THE HONOURABLE ANDREW LEUNG KWAN-YUEN, S.B.S., J.P. THE HONOURABLE ALAN LEONG KAH-KIT, S.C. THE HONOURABLE LEUNG KWOK-HUNG DR THE HONOURABLE KWOK KA-KI DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG THE HONOURABLE CHEUNG HOK-MING, S.B.S., J.P. THE HONOURABLE WONG TING-KWONG, B.B.S. 9374 LEGISLATIVE COUNCIL ─ 12 July 2006 THE HONOURABLE RONNY TONG KA-WAH, S.C. THE HONOURABLE CHIM PUI-CHUNG THE HONOURABLE PATRICK LAU SAU-SHING, S.B.S., J.P. THE HONOURABLE ALBERT JINGHAN CHENG THE HONOURABLE KWONG CHI-KIN THE HONOURABLE TAM HEUNG-MAN MEMBERS ABSENT: THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. THE HONOURABLE MA LIK, G.B.S., J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE RAFAEL HUI SI-YAN, G.B.S., J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE HENRY TANG YING-YEN, G.B.S., J.P. THE FINANCIAL SECRETARY PROF THE HONOURABLE ARTHUR LI KWOK-CHEUNG, G.B.S., J.P. SECRETARY FOR EDUCATION AND MANPOWER THE HONOURABLE JOSEPH WONG WING-PING, G.B.S., J.P. SECRETARY FOR COMMERCE, INDUSTRY AND TECHNOLOGY DR THE HONOURABLE PATRICK HO CHI-PING, J.P. SECRETARY FOR HOME AFFAIRS LEGISLATIVE COUNCIL ─ 12 July 2006 9375 THE HONOURABLE FREDERICK MA SI-HANG, J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY DR THE HONOURABLE YORK CHOW YAT-NGOK, S.B.S., J.P. SECRETARY FOR HEALTH, WELFARE AND FOOD CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MS PAULINE NG MAN-WAH, ASSISTANT SECRETARY GENERAL MRS JUSTINA LAM CHENG BO-LING, ASSISTANT SECRETARY GENERAL MR RAY CHAN YUM-MOU, ASSISTANT SECRETARY GENERAL 9376 LEGISLATIVE COUNCIL ─ 12 July 2006 PRESIDENT (in Cantonese): 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) PRESIDENT (in Cantonese): A quorum is now present. The meeting now starts. TABLING OF PAPERS The following papers were laid on the table pursuant to Rule 21(2) of the Rules of Procedure: No. 101 ─ Report by the Commissioner of Correctional Services on the administration of the Prisoners' Welfare Fund for the year ended 31 March 2006 No. 102 ─ Audited Financial Statements and Report on Activities of the Hong Kong Examinations and Assessment Authority for the year ending 31 August 2005 No. 103 ─ Hong Kong Export Credit Insurance Corporation Annual Report 2005-2006 No. 104 ─ Report of the J.E. Joseph Trust Fund Trustee, and Audited Statement of Accounts and Auditor's Report for the Fund, for the year from 1 April 2005 to 31 March 2006 No. 105 ─ Report of the Kadoorie Agricultural Aid Loan Fund Committee, and Audited Statement of Accounts and Auditor's Report for the Fund, for the year from 1 April 2005 to 31 March 2006 No. 106 ─ Sir Robert Black Trust Fund Annual Report for the year from 1 April 2005 to 31 March 2006 LEGISLATIVE COUNCIL ─ 12 July 2006 9377 No. 107 ─ Sir David Trench Fund for Recreation Trustee's Report 2005-2006 No. 108 ─ Construction Industry Training Authority Annual Report 2005 No. 109 ─ Clothing Industry Training Authority Annual Report 2005 No. 110 ─ Report of the Public Accounts Committee on Report No. 46 of the Director of Audit on the Results of Value for Money Audits (July 2006 - P.A.C. Report No. 46) Committee on Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region — Progress Report for the 2005-06 session (1 July 2005 to 12 July 2006) Report of the Panel on Commerce and Industry 2005/2006 Report of the Panel on Public Service 2005/2006 Report of the Panel on Administration of Justice and Legal Services 2005/2006 Report of the Panel on Transport 2005/2006 Report of the Panel on Housing 2005/2006 Report of the Panel on Financial Affairs 2005/2006 Report of the Panel on Education 2005/2006 Report of the Panel on Planning, Lands and Works 2005/2006 Report of the Panel on Welfare Services 2005/2006 9378 LEGISLATIVE COUNCIL ─ 12 July 2006 Report of the Panel on Information Technology and Broadcasting 2005/2006 Report of the Panel on Economic Services 2005/2006 Report of the Panel on Health Services 2005/2006 Report of the Panel on Environmental Affairs 2005/2006 Report of the Bills Committee on Betting Duty (Amendment) Bill 2006 Report of the Bills Committee on Financial Reporting Council Bill ADDRESSES PRESIDENT (in Cantonese): Addresses. Dr Philip WONG, Chairman of the Public Accounts Committee, will address the Council on the Committee's Report on Report No. 46 of the Director of Audit on the Results of Value for Money Audits. Report of the Public Accounts Committee on Report No. 46 of the Director of Audit on the Results of Value for Money Audits DR PHILIP WONG (in Cantonese): Madam President, on behalf of the Public Accounts Committee (the Committee), I have the honour to table our Report No. 46 today. Our Report corresponds with the Director of Audit's Report (Audit Report) No. 46 on the results of value for money audits, which was tabled in the Legislative Council on 26 April 2006. As in previous years, the Committee has selected for detailed examination only those chapters which, in our view, contained more serious allegations of irregularities or shortcomings. The Report tabled today covers the process and results of our deliberations on two of the three chapters selected. The Committee has decided to defer a full report on the subject "Collection of fines imposed by Magistrates' Courts" as the witnesses who attended the public hearings were not able to provide the information sought by LEGISLATIVE COUNCIL ─ 12 July 2006 9379 the Committee on some of the issues raised, and needed more time to work out how they would implement some of the audit recommendations. The Committee has requested the witnesses to provide further information and progress reports on the implementation of the various audit recommendations. We will endeavour to finalize our report to the Council at the earliest opportunity. The two main chapters covered in our Report are related to Radio Television Hong Kong (RTHK). The Audit Commission (Audit) had conducted three value for money audits on RTHK in 1997, 1999 and 2001 respectively, which the Committee had examined. This is the fourth one since 1997. Since 1997, a number of internal and external reviews of RTHK had been carried out. The Committee is seriously dismayed and finds it unacceptable that, the latest audit review has shown that a number of irregularities identified in previous audit reviews and other reviews still exist. The cases of non-compliance and irregularities highlight the lack of a culture among RTHK staff to comply with applicable regulations, guidelines and procedures. Moreover, not sufficient priority has been given by the RTHK management to strengthening its internal control and risk management. The Committee recognizes the special nature of RTHK as a public service broadcaster operating in a competitive media environment. However, this should not be an excuse for non-compliance with applicable government rules and regulations.
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