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LEGISLATIVE COUNCIL ─ 9 April 2008 5545 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 9 April 2008 The Council met at Eleven o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.M., 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 THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. DR THE HONOURABLE DAVID LI KWOK-PO, G.B.M., 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, S.B.S., J.P. 5546 LEGISLATIVE COUNCIL ─ 9 April 2008 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, G.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE SIN CHUNG-KAI, S.B.S., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG, G.B.S. THE HONOURABLE WONG YUNG-KAN, S.B.S., 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, J.P. 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 TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, S.B.S., J.P. THE HONOURABLE LI FUNG-YING, B.B.S., J.P. LEGISLATIVE COUNCIL ─ 9 April 2008 5547 THE HONOURABLE TOMMY CHEUNG YU-YAN, S.B.S., 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. THE HONOURABLE RONNY TONG KA-WAH, S.C. THE HONOURABLE CHIM PUI-CHUNG 5548 LEGISLATIVE COUNCIL ─ 9 April 2008 PROF THE HONOURABLE PATRICK LAU SAU-SHING, S.B.S., J.P. THE HONOURABLE ALBERT JINGHAN CHENG, J.P. THE HONOURABLE KWONG CHI-KIN THE HONOURABLE TAM HEUNG-MAN THE HONOURABLE MRS ANSON CHAN, G.B.M., J.P. MEMBER ABSENT: THE HONOURABLE TIMOTHY FOK TSUN-TING, G.B.S., J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE MICHAEL SUEN MING-YEUNG, G.B.S., J.P. SECRETARY FOR EDUCATION THE HONOURABLE FREDERICK MA SI-HANG, J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT THE HONOURABLE STEPHEN LAM SUI-LUNG, J.P. SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS DR THE HONOURABLE YORK CHOW YAT-NGOK, S.B.S., J.P. SECRETARY FOR FOOD AND HEALTH THE HONOURABLE MATTHEW CHEUNG KIN-CHUNG, G.B.S., J.P. SECRETARY FOR LABOUR AND WELFARE THE HONOURABLE MRS CARRIE LAM CHENG YUET-NGOR, J.P. SECRETARY FOR DEVELOPMENT THE HONOURABLE EVA CHENG, J.P. SECRETARY FOR TRANSPORT AND HOUSING LEGISLATIVE COUNCIL ─ 9 April 2008 5549 CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MRS VIVIAN KAM NG LAI-MAN, ASSISTANT SECRETARY GENERAL MS PAULINE NG MAN-WAH, ASSISTANT SECRETARY GENERAL 5550 LEGISLATIVE COUNCIL ─ 9 April 2008 PRESIDENT (in Cantonese): Clerk, please ring the bell. A quorum is lacking. (After the summoning bell had been rung, a number of Members entered the Chamber) PRESIDENT (in Cantonese): A quorum is present, the meeting starts now. TABLING OF PAPERS The following papers were laid on the table pursuant to Rule 21(2) of the Rules of Procedure: Subsidiary Legislation/Instruments L.N. No. Merchant Shipping (Limitation of Shipowners Liability) (Rate of Interest) (Amendment) Order 2008 ...... 56/2008 Electoral Affairs Commission (Electoral Procedure) (Legislative Council) (Amendment) Regulation 2008........................................ 66/2008 Public Health and Municipal Services (Setting Aside Places for Use as Public Pleasure Grounds and Cessation of Setting Aside Places for Use as Public Pleasure Grounds) Order 2008 ................................. 67/2008 Public Health and Municipal Services Ordinance (Amendment of Fourth Schedule) (No. 2) Order 2008............................................. 68/2008 Food and Drugs (Composition and Labelling) (Amendment: Requirements for Nutrition Labelling and Nutrition Claim) Regulation 2008 ............. 69/2008 Pilotage (Dues) (Amendment) Order 2008 ................. 70/2008 Employees Retraining Ordinance (Amendment of Schedule 2) Notice 2008............................................. 71/2008 Tax Reserve Certificates (Rate of Interest) (No. 3) Notice 2008............................................. 72/2008 LEGISLATIVE COUNCIL ─ 9 April 2008 5551 Other Papers No. 80 ─ The Financial Reporting Council Annual Report 2007 No. 81 ─ Audited Statement of Accounts together with the Director of Audit's Report of the Hong Kong Rotary Club Students' Loan Fund for the year ending 31 August 2007 No. 82 ─ Audited Statement of Accounts together with the Director of Audit's Report of the Sing Tao Foundation Students' Loan Fund for the year ending 31 August 2007 No. 83 ─ AIDS Trust Fund 2006-2007 Accounts with the Director of Audit's Report No. 84 ─ Report No. 50 of the Director of Audit on the results of value for money audits - March 2008 Report of the Bills Committee on Pneumoconiosis (Compensation) (Amendment) Bill 2008 ORAL ANSWERS TO QUESTIONS PRESIDENT (in Cantonese): Questions. First question. Allowing Pay Television Operators to Transmit Digital Broadcast Signals of Free Television Broadcasters 1. MR HOWARD YOUNG (in Cantonese): Madam President, it has been reported that a pay television operator earlier proposed to the Government that the Copyright Ordinance be amended to allow pay television operators to transmit to their clients, through their systems, the digital television broadcast signals of two free television broadcasters. The operator estimated that this would substantially increase within a short period the penetration rate of Digital Terrestrial Television (DTT) broadcasting, and 90% of the population of Hong 5552 LEGISLATIVE COUNCIL ─ 9 April 2008 Kong could view the Beijing Olympic Games broadcast in digital format. In this connection, will the Government inform this Council: (a) whether, technically speaking, subscribers of pay television services can view DTT broadcasting programmes without buying a digital set-top box separately; if there are technical constraints, of the details; (b) whether it is reviewing the restrictions imposed by the Copyright Ordinance on the transmission of the broadcast signals of free television broadcasters by pay television operators; if it is, when the outcome of the review will be available; if not, the reasons for that; and (c) what other measures it will adopt to expeditiously increase the penetration rate of DTT broadcasting? SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Madam President, before answering Mr YOUNG's question, I would like to briefly clarify the general background of the reception of television broadcasting. At present, there are some 2.2 million households in Hong Kong, over 99% of which have at least one television set. Most of them live in multi-storey buildings. In general, these buildings have communal antenna broadcast distribution (CABD) systems installed to receive free television signals on the air for transmitting to individual households. CABD systems can be upgraded to receive signals of DTT broadcasting, which has just commenced, in parallel with analogue broadcasting signals. To view DTT programmes, individual households only need to equip their existing television sets with DTT decoders (commonly known as "set-top boxes") or buy integrated television sets capable of decoding digital signals. For pay television service, operators currently transmit their pay television programmes to subscribers through various networks, including cable, satellite, broadband and conventional telephony networks. Individual subscribers have to use the decoders provided by the operators to view the pay television programmes. LEGISLATIVE COUNCIL ─ 9 April 2008 5553 My reply to Mr YOUNG's question is as follows: (a) The provision of DTT services includes high definition (HD) television programmes. Most existing pay television decoders are standard definition (SD) decoders. As such, unless the pay television operators are willing to offer HD decoders free of charge, pay television subscribers still need to purchase or hire a separate HD digital decoder from the service operators for viewing both pay television and DTT programmes (including HD television programmes). In addition, HD television programmes demand a very high transmission capacity. At this juncture, some pay television networks do not have sufficient capacity for providing HD television programmes to subscribers. (b) At present, pay television operators are permitted under the Copyright Ordinance (Cap. 528) to receive free television broadcast programmes through CABD systems and retransmit them immediately without alteration to individual subscribers in the buildings. Through the interconnection of the pay television networks with the CABD systems and the transmission of signals to households via the same blockwiring, subscribers may use the same television outlet to receive free and pay television programmes.