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LEGISLATIVE COUNCIL ─ 16 October 2002 289 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 16 October 2002 The Council met at half-past Two o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.S., J.P. THE HONOURABLE KENNETH TING WOO-SHOU, J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. DR THE HONOURABLE DAVID CHU YU-LIN, J.P. THE HONOURABLE CYD HO SAU-LAN THE HONOURABLE ALBERT HO CHUN-YAN IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, J.P. THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING, J.P. DR THE HONOURABLE LUI MING-WAH, J.P. THE HONOURABLE NG LEUNG-SING, J.P. 290 LEGISLATIVE COUNCIL ─ 16 October 2002 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 HUI CHEUNG-CHING, J.P. THE HONOURABLE CHAN KWOK-KEUNG THE HONOURABLE CHAN YUEN-HAN, J.P. THE HONOURABLE BERNARD CHAN, J.P. THE HONOURABLE CHAN KAM-LAM, 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 THE HONOURABLE ANDREW WONG WANG-FAT, J.P. DR THE HONOURABLE PHILIP WONG YU-HONG THE HONOURABLE WONG YUNG-KAN THE HONOURABLE JASPER TSANG YOK-SING, G.B.S., J.P. THE HONOURABLE HOWARD YOUNG, J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE YEUNG YIU-CHUNG, B.B.S. THE HONOURABLE LAU CHIN-SHEK, J.P. THE HONOURABLE LAU KONG-WAH LEGISLATIVE COUNCIL ─ 16 October 2002 291 THE HONOURABLE LAU WONG-FAT, G.B.S., J.P. THE HONOURABLE MIRIAM LAU KIN-YEE, J.P. THE HONOURABLE AMBROSE LAU HON-CHUEN, G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE CHOY SO-YUK THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE SZETO WAH THE HONOURABLE TIMOTHY FOK TSUN-TING, S.B.S., J.P. DR THE HONOURABLE LAW CHI-KWONG, J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, J.P. THE HONOURABLE LI FUNG-YING, J.P. THE HONOURABLE HENRY WU KING-CHEONG, B.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, J.P. THE HONOURABLE MICHAEL MAK KWOK-FUNG THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE LEUNG FU-WAH, M.H., J.P. DR THE HONOURABLE LO WING-LOK THE HONOURABLE WONG SING-CHI 292 LEGISLATIVE COUNCIL ─ 16 October 2002 THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE IP KWOK-HIM, J.P. THE HONOURABLE AUDREY EU YUET-MEE, S.C., J.P. MEMBERS ABSENT: DR THE HONOURABLE DAVID LI KWOK-PO, G.B.S., J.P. THE HONOURABLE MARGARET NG THE HONOURABLE LAU PING-CHEUNG THE HONOURABLE MA FUNG-KWOK, J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE DONALD TSANG YAM-KUEN, G.B.M., J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE ANTONY LEUNG KAM-CHUNG, G.B.S., J.P. THE FINANCIAL SECRETARY THE HONOURABLE ELSIE LEUNG OI-SIE, G.B.M., J.P. THE SECRETARY FOR JUSTICE THE HONOURABLE MICHAEL SUEN MING-YEUNG, G.B.S., J.P. SECRETARY FOR HOUSING, PLANNING AND LANDS DR THE HONOURABLE YEOH ENG-KIONG, J.P. SECRETARY FOR HEALTH, WELFARE AND FOOD DR THE HONOURABLE PATRICK HO CHI-PING, J.P. SECRETARY FOR HOME AFFAIRS LEGISLATIVE COUNCIL ─ 16 October 2002 293 THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. SECRETARY FOR SECURITY THE HONOURABLE STEPHEN IP SHU-KWAN, G.B.S., J.P. SECRETARY FOR ECONOMIC DEVELOPMENT AND LABOUR DR THE HONOURABLE SARAH LIAO SAU-TUNG, J.P. SECRETARY FOR THE ENVIRONMENT, TRANSPORT AND WORKS CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MR LAW KAM-SANG, J.P., DEPUTY SECRETARY GENERAL MR RAY CHAN YUM-MOU, ASSISTANT SECRETARY GENERAL 294 LEGISLATIVE COUNCIL ─ 16 October 2002 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. Commodities Trading (Trading Limits and Position Limits) (Amendment) (No. 2) Rules 2002 ................... 142/2002 Securities (Exchange-Traded Stock Options) (Amendment) Rules 2002............................................... 143/2002 Securities (Miscellaneous) (Amendment) Rules 2002.... 144/2002 Drug Trafficking and Organized Crimes (Amendment) Ordinance 2002 (26 of 2002) (Commencement) Notice 2002....................................................... 145/2002 Other Papers No. 2 ─ Urban Renewal Authority Annual Report 2001-2002 No. 3 ─ Companies Registry Annual Report 2001-02 No. 4 ─ Electrical and Mechanical Services Trading Fund Annual Report 2001/02 No. 5 ─ The Government Minute in response to the Report No. 38 of the Public Accounts Committee dated July 2002 ADDRESS PRESIDENT (in Cantonese): Address. The Chief Secretary for Administration will address the Council on the Government Minute in response to the Report No. 38 of the Public Accounts Committee dated July 2002. LEGISLATIVE COUNCIL ─ 16 October 2002 295 The Government Minute in response to the Report No. 38 of the Public Accounts Committee dated July 2002 CHIEF SECRETARY FOR ADMINISTRATION: Madam President, laid on the table today is the Government Minute responding to Report No. 38 of the Public Accounts Committee (PAC). The Minute sets out the measures that the Government has taken, or is taking, on the conclusions and recommendations contained in the Report. The Report covers the issue of "Mechanized street cleansing services" in the Director of Audit's Report No. 37 and four of the five subjects in the Director of Audit's Report No. 38 which the PAC has selected for further investigation. The Honourable Eric LI, Chairman of the PAC, spoke on 10 July when tabling the PAC Report. I would like to respond to some of his comments. First, there is room for improvement in our mechanized street cleansing services. As a result of comprehensive reviews, the Food and Environmental Hygiene Department (FEHD) has introduced various improvement measures. They include revising the frequency of cleansing, upgrading time standards and work values, and streamlining work procedures. As a result, the Department now delivers the service with 72 posts and 20 mechanical cleansing vehicles less, saving $13 million a year. The FEHD is also simplifying its supervisory hierarchy. For example, it has reduced the three-tier structure to one-tier for supervising outsourced cleansing service and has removed the layer of Senior Foremen for in-house cleansing service. Over 350 Foreman grade posts have been redeployed with annual recurrent savings of $49.3 million. The FEHD will continue to explore ways to further enhancing productivity and rationalizing its staff structure. The Administration is committed to liberalizing the local fixed telecommunications market and promoting competition. There is no doubt that telecommunications in Hong Kong have become increasingly competitive. The extent is comparable to, or even greater than that in, other economies with similar experience in liberalization. Consumers will continue to reap the 296 LEGISLATIVE COUNCIL ─ 16 October 2002 benefits. For example, we estimate that in the three years 1999 to 2001, with the sharp drop in IDD rates, fixed-line and mobile phone users saved $15.5 billion in IDD expenses. The Office of the Telecommunications Authority (OFTA) will conduct an in-depth and comprehensive review of the effectiveness of competition in the telecommunications market in early 2003 when the market will be fully open. There will also be further reviews on a regular basis. The OFTA will also closely monitor the availability of services from new operators to ensure that this is in line with their licence obligations. The Post Office has increased the range of products available under the Postshop and expanded its e-Post and remittance services with a view to achieving a reasonable return. It has implemented new measures to monitor and control more effectively overtime work of delivery postmen. It is also carrying out a survey of all the beats with two delivery services daily to see if any of them can be changed to once daily. It aims to complete the survey by March next year and conduct consultations on the implementation plan. The Post Office operates as a trading fund and not a fully commercial entity, not even a body corporate. There are clear limitations on its operation. As a government department, it has to meet the Government's social and public service obligations, including the provision of universal postal service at affordable prices. The Administration is reviewing our postal services to address the issues raised by the PAC, but until clear majority support for privatization or corporatization of the Post Office is forthcoming from the PAC or from the Legislative Council, drastic improvements will be difficult to secure. On the subject of "management of construction and demolition materials" (C&D materials), I wish to stress that the Administration is determined to implement measures to maximize re-use of C&D materials so as to minimize the use of our scarce landfill capacity by such materials. The Administration's resolve is demonstrated by the substantial increase in the proportion of C&D materials used in reclamation projects from 35% in 1994 to 83% in 2001. We will strive for further improvement. Regarding the re-use of C&D materials in the Penny's Bay Reclamation, we have taken steps to increase the C&D materials intake in Stage 2 to make up LEGISLATIVE COUNCIL ─ 16 October 2002 297 for the loss in Stage 1. To ensure the optimum use of C&D materials in government reclamation projects entrusted to third parties, all works departments will liaise closely with the Public Fill Committee.