OFFICIAL RECORD of PROCEEDINGS Thursday, 14 May
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LEGISLATIVE COUNCIL ─ 14 May 2015 10457 OFFICIAL RECORD OF PROCEEDINGS Thursday, 14 May 2015 The Council continued to meet at half-past Two o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE JASPER TSANG YOK-SING, G.B.S., J.P. THE HONOURABLE ALBERT HO CHUN-YAN THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHAN KAM-LAM, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG DR THE HONOURABLE LAU WONG-FAT, G.B.M., G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, S.B.S., J.P. THE HONOURABLE FREDERICK FUNG KIN-KEE, S.B.S., J.P. THE HONOURABLE VINCENT FANG KANG, S.B.S., J.P. THE HONOURABLE WONG KWOK-HING, B.B.S., M.H. 10458 LEGISLATIVE COUNCIL ─ 14 May 2015 PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P., Ph.D., R.N. THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P. THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P. THE HONOURABLE WONG TING-KWONG, S.B.S., J.P. THE HONOURABLE CYD HO SAU-LAN, J.P. THE HONOURABLE STARRY LEE WAI-KING, J.P. THE HONOURABLE CHAN KIN-POR, B.B.S., J.P. THE HONOURABLE CHEUNG KWOK-CHE THE HONOURABLE WONG KWOK-KIN, S.B.S. THE HONOURABLE IP KWOK-HIM, G.B.S., J.P. THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. THE HONOURABLE PAUL TSE WAI-CHUN, J.P. THE HONOURABLE ALAN LEONG KAH-KIT, S.C. THE HONOURABLE LEUNG KWOK-HUNG THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE CLAUDIA MO THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. THE HONOURABLE NG LEUNG-SING, S.B.S., J.P. THE HONOURABLE STEVEN HO CHUN-YIN LEGISLATIVE COUNCIL ─ 14 May 2015 10459 THE HONOURABLE FRANKIE YICK CHI-MING THE HONOURABLE WU CHI-WAI, M.H. THE HONOURABLE YIU SI-WING THE HONOURABLE MA FUNG-KWOK, S.B.S., J.P. THE HONOURABLE CHARLES PETER MOK, J.P. THE HONOURABLE CHAN CHI-CHUEN THE HONOURABLE CHAN HAN-PAN, J.P. DR THE HONOURABLE KENNETH CHAN KA-LOK THE HONOURABLE LEUNG CHE-CHEUNG, B.B.S., M.H., J.P. THE HONOURABLE KENNETH LEUNG THE HONOURABLE ALICE MAK MEI-KUEN, J.P. DR THE HONOURABLE KWOK KA-KI THE HONOURABLE DENNIS KWOK THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG THE HONOURABLE SIN CHUNG-KAI, S.B.S., J.P. DR THE HONOURABLE HELENA WONG PIK-WAN THE HONOURABLE IP KIN-YUEN DR THE HONOURABLE ELIZABETH QUAT, J.P. THE HONOURABLE MARTIN LIAO CHEUNG-KONG, S.B.S., J.P. 10460 LEGISLATIVE COUNCIL ─ 14 May 2015 THE HONOURABLE POON SIU-PING, B.B.S., M.H. THE HONOURABLE TANG KA-PIU, J.P. IR DR THE HONOURABLE LO WAI-KWOK, B.B.S., M.H., J.P. THE HONOURABLE CHUNG KWOK-PAN THE HONOURABLE CHRISTOPHER CHUNG SHU-KUN, B.B.S., M.H., J.P. THE HONOURABLE TONY TSE WAI-CHUEN, B.B.S. MEMBERS ABSENT: THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P. THE HONOURABLE RONNY TONG KA-WAH, S.C. DR THE HONOURABLE LAM TAI-FAI, S.B.S., J.P. THE HONOURABLE CHAN HAK-KAN, J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P. DR THE HONOURABLE LEUNG KA-LAU THE HONOURABLE WONG YUK-MAN THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. THE HONOURABLE GARY FAN KWOK-WAI THE HONOURABLE CHAN YUEN-HAN, S.B.S., J.P. THE HONOURABLE KWOK WAI-KEUNG DR THE HONOURABLE CHIANG LAI-WAN, J.P. LEGISLATIVE COUNCIL ─ 14 May 2015 10461 PUBLIC OFFICERS ATTENDING: THE HONOURABLE MATTHEW CHEUNG KIN-CHUNG, G.B.S., J.P. SECRETARY FOR LABOUR AND WELFARE THE HONOURABLE GREGORY SO KAM-LEUNG, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT MR GODFREY LEUNG KING-KWOK, J.P. UNDER SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT CLERKS IN ATTENDANCE: MS ANITA SIT, ASSISTANT SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL 10462 LEGISLATIVE COUNCIL ─ 14 May 2015 BILLS Committee Stage CHAIRMAN (in Cantonese): Committee will now continue to examine the Schedule to the Appropriation Bill 2015. We will now continue with the fifth debate. I will invite Members who have proposed amendments in this debate to make their last speech. APPROPRIATION BILL 2015 MR ALBERT CHAN (in Cantonese): Chairman, the emptiness of the Chamber seems unseemly; please summon Members back in accordance with Rule 17(3) of the Rules of Procedure. The Democratic Alliance for the Betterment and Progress of Hong Kong seldom has so few Members present. CHAIRMAN (in Cantonese): Will the Clerk please ring the bell to summon Members back to the Chamber. (After the summoning bell had been rung, a number of Members returned to the Chamber) CHAIRMAN (in Cantonese): Mr Albert CHAN, please speak. MR ALBERT CHAN (in Cantonese): Chairman, it is better to have more Members present, as they bring vitality and dynamism to the Chamber. Yesterday, the least number of Members present was only four. Chairman, I would like to make my concluding remarks on the various policy areas involved in the fifth debate, including commerce and industry, economic development, financial affairs, information technology and broadcasting, as well as maritime and aviation transport. Before making my concluding remarks, I would like to first talk about my Amendment No 499. It seeks to reduce head 148 by $1,736,400, which is equivalent to the estimated LEGISLATIVE COUNCIL ─ 14 May 2015 10463 expenditure on the annual emoluments of Principal Assistant Secretary (Financial Services) 3 of the Financial Services and the Treasury Bureau (Financial Services Branch). Chairman, I have no grudges against the person holding this post, but I believe that many Hong Kong people, particularly wage earners, are utterly dissatisfied with the Mandatory Provident Fund (MPF) for eroding their hard-earned money. They even have a feeling of being exploited. Chairman, Principal Assistant Secretary (Financial Services) 3 oversees policy and legislative matters over the MPF schemes and the occupational retirement schemes. His portfolio covers all MPF-related matters, including the housekeeping matters of the Mandatory Provident Fund Schemes Authority. Over the years, it is an ironclad fact that the rate of return of MPF is on the low side, which affects every MPF contributor. Since the introduction of the MPF schemes, the rate of return is around 4%. Most MPF funds do not pay dividends and the average charging rate is as high as 1.65%, the amount involved is significant given that the funds involved in MPF amount to hundreds of millions of dollars. Since its establishment, the Tracker Fund of Hong Kong has an average rate of return of 3.8%, its annual dividend rate is 3% at the very least, and the rate of management fees is only 0.1%. By comparison, we will see the unreasonableness and the level of exaggeration of MPF. It is thus clear that MPF is characterized by high rates of management fees and very poor rates of return. As such, there is no reason to mandatory require, by way of legislation, every Hong Kong people to continue giving money to investment organizations and finance companies that manage MPF funds. This practice is extremely unreasonable. When a comparison is made, we can discern the absurdity involved. If we look at one single item alone, we may be misled or deceived by technical officials and by the honeyed words of investment organizations that we deem as "swindlers". When it comes to retirement management, the Government should allow members of the public to make decisions on their own, rather than forcing them to give money to these plutocrats, and allowing these "brigands" to exploit the hard-earned money of our taxpayers, ordinary citizens and particularly the working class. Basically, the overall operation mode of MPF can be described as a direct channelling of interests to the financial sector and bigwigs. In March 2015, total MPF assets already amounted to $540 billion, and the profits receivable by the 10464 LEGISLATIVE COUNCIL ─ 14 May 2015 financial sector amounted to $8.9 billion on the basis of an average charging rate of 1.65%. Certainly, some expenses have to be deducted from the profits, but the figure itself is already very alarming and it keeps increasing. As the number of MPF contributors keeps increasing each month, their contributions will enlarge the total MPF assets, and a higher charge is imposed. This is just throwing someone to the wolves. Over the past 15 years, the criticisms of low rate of return and high level of fees have become platitudes, and all MPF contributors have been greatly dissatisfied. In response to public discontent, the level of fees might be slightly adjusted downward. Very often, the downward adjustment might be due to the robust market conditions, or due to the increasingly large amount of the total asset. However, the adjustment may not have great bearing on the total amount of fees. Given the huge base, even if the charging rate is lowered slightly, the total revenue is still considerable. If the overall operation of MPF is still regulated by a bureaucratic regime, ordinary citizens cannot be benefited whatsoever. Certainly, this problem is related to the enactment of legislation years ago. So long as there is the legislation, enforcement must be executed.