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OFFICIAL RECORD of PROCEEDINGS Wednesday, 12 LEGISLATIVE COUNCIL ─ 12 November 2014 1857 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 12 November 2014 The Council met at Eleven 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 ABRAHAM SHEK LAI-HIM, 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 WONG KWOK-HING, B.B.S., M.H. 1858 LEGISLATIVE COUNCIL ─ 12 November 2014 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 RONNY TONG KA-WAH, S.C. THE HONOURABLE CYD HO SAU-LAN, J.P. THE HONOURABLE STARRY LEE WAI-KING, J.P. THE HONOURABLE CHAN HAK-KAN, J.P. THE HONOURABLE CHAN KIN-POR, B.B.S., J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P. DR THE HONOURABLE LEUNG KA-LAU 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 WONG YUK-MAN LEGISLATIVE COUNCIL ─ 12 November 2014 1859 THE HONOURABLE CLAUDIA MO THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. 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 THE HONOURABLE FRANKIE YICK CHI-MING THE HONOURABLE WU CHI-WAI, M.H. THE HONOURABLE YIU SI-WING THE HONOURABLE GARY FAN KWOK-WAI 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 CHAN YUEN-HAN, S.B.S., J.P. 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 KWOK WAI-KEUNG 1860 LEGISLATIVE COUNCIL ─ 12 November 2014 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. THE HONOURABLE POON SIU-PING, B.B.S., M.H. THE HONOURABLE TANG KA-PIU, J.P. DR THE HONOURABLE CHIANG LAI-WAN, 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 VINCENT FANG KANG, S.B.S., J.P. DR THE HONOURABLE LAM TAI-FAI, S.B.S., J.P. THE HONOURABLE CHEUNG KWOK-CHE LEGISLATIVE COUNCIL ─ 12 November 2014 1861 PUBLIC OFFICERS ATTENDING: MR YAU SHING-MU, J.P. SECRETARY FOR TRANSPORT AND HOUSING THE HONOURABLE MATTHEW CHEUNG KIN-CHUNG, G.B.S., J.P. SECRETARY FOR LABOUR AND WELFARE MR LAU KONG-WAH, J.P. SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS THE HONOURABLE LAI TUNG-KWOK, S.B.S., I.D.S.M., J.P. SECRETARY FOR SECURITY MR ERIC MA SIU-CHEUNG, J.P. SECRETARY FOR DEVELOPMENT CLERKS IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL MRS JUSTINA LAM CHENG BO-LING, DEPUTY SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, ASSISTANT SECRETARY GENERAL 1862 LEGISLATIVE COUNCIL ─ 12 November 2014 PRESIDENT (in Cantonese): Will the Clerk please ring the bell to summon Members to the Chamber. (After the summoning bell had been rung, a number of Members entered the Chamber) TABLING OF PAPERS The following papers were laid on the table under Rule 21(2) of the Rules of Procedure: No. 24 ─ Customs and Excise Service Welfare Fund Financial statements for the year ended 31 March 2014 and its summary, together with the Report of the Director of Audit No. 25 ─ Secretary for Home Affairs Incorporated Financial statements for the year ended 31 March 2014 No. 26 ─ Sir Edward Youde Memorial Fund Report of the Board of Trustees for the Period 1 April 2013 to 31 March 2014 Report No. 2/14-15 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments Report of the Bills Committee on Competition (Amendment) Bill 2014 ORAL ANSWERS TO QUESTIONS PRESIDENT (in Cantonese): Questions. First question. LEGISLATIVE COUNCIL ─ 12 November 2014 1863 Sale of Retail and Carpark Facilities in Public Housing Estates by The Link Management Limited 1. MISS ALICE MAK (in Cantonese): In 2005, the Hong Kong Housing Authority (HA) divested certain retail and car park facilities of its public housing estates to The Link Real Estate Investment Trust. The Link Management Limited (The Link), which manages the Investment Trust, sold the shopping centres and car parks of nine housing estates (the resold facilities) this year. Some shop tenants and residents of these housing estates have relayed to me their concern that the new owners may raise parking fees and shop rentals significantly, leading to increased commodity prices in their estates, and that the quality of managing the resold facilities may deteriorate. Meanwhile, the Housing Ordinance provides that the HA shall secure the provision of ancillary facilities fit for public rental housing estates, including amenities and commercial retail facilities. In this connection, will the Government inform this Council: (1) whether it knows if The Link had informed various stakeholders (including the HA and the owners' corporations (OCs) of the housing estates concerned) prior to the sale of the relevant facilities; whether, after learning of The Link's intention to sell such facilities, the authorities have implemented corresponding measures, such as assessing the impact of the resale of the such facilities on the HA as well as on the shop tenants and residents of the housing estates concerned, and providing consultation and support services to the OCs and residents concerned; if they have implemented such measures, of the details; if not, the reasons for that; (2) whether the authorities have approached the new owners of the resold facilities and explained to them the service targets of such facilities and their management responsibilities, and that in managing such facilities, priorities should be given to addressing the needs of residents of housing estates; if they have, of the responses of the new owners; if not, how the authorities ensure that the new owners will continue to shoulder the responsibilities of the former owners; and (3) as some residents of the housing estates concerned have relayed to me their concern that the new owners may transform the shopping arcades in the resold facilities into ones that mainly serve tourists or 1864 LEGISLATIVE COUNCIL ─ 12 November 2014 residents outside the estates, or they may even refuse to shoulder the maintenance responsibilities associated with public areas and facilities, how the authorities will prevent such situations from occurring, with a view to ensuring the continuous provision of suitable facilities to the residents; whether the authorities will set up a task force to monitor and follow up the management issues of the resold facilities? SECRETARY FOR TRANSPORT AND HOUSING (in Cantonese): President, my consolidated reply to Miss Alice MAK's question is as follows: The Government has explained to the Legislative Council on various occasions the background and objectives of the divestment of retail and carparking facilities by the HA in 2005, as well as the mechanism to regulate the uses of the relevant facilities, including the Secretary for Transport and Housing's comprehensive response to the motion debate relating to The Link Real Estate Investment Trust (REIT) in November 2012 on whether the Government should buy back The Investment Trust, and our discussion with the Legislative Council Panel on Housing on relevant issues in June 2014. In July 2005, the Court of Final Appeal (CFA) affirmed that the divestment of retail and carparking facilities by the HA was consistent with the HA's object, as laid down in section 4(1) of the Housing Ordinance. It was pointed out that to secure the provision of retail and carparking facilities did not mean that the HA needed to be the direct provider itself, but the HA secured the provision of such facilities so long as such facilities were available, even though they were not provided by the HA but by a third party. In reaching its conclusions, the CFA noted that The Link would adopt a market-oriented commercial approach in operating the relevant retail and carparking facilities, whereas the HA's approach at that time might not always be in line with private sector practice; and after the listing of The Link, there might be changes in relation to the operation of the relevant facilities, including the tenant trade mix.
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