LEGISLATIVE COUNCIL ─ 30 June 1999 9161 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 30 June 1999 The Council met at half-past Two o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN, G.B.S., J.P. THE HONOURABLE KENNETH TING WOO-SHOU, J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, J.P. THE HONOURABLE DAVID CHU YU-LIN THE HONOURABLE HO SAI-CHU, J.P. THE HONOURABLE CYD HO SAU-LAN THE HONOURABLE EDWARD HO SING-TIN, J.P. THE HONOURABLE ALBERT HO CHUN-YAN THE HONOURABLE MICHAEL HO MUN-KA DR THE HONOURABLE RAYMOND HO CHUNG-TAI, J.P. THE HONOURABLE LEE WING-TAT THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. 9162 LEGISLATIVE COUNCIL ─ 30 June 1999 THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE LEE KAI-MING, J.P. DR THE HONOURABLE DAVID LI KWOK-PO, J.P. THE HONOURABLE FRED LI WAH-MING DR THE HONOURABLE LUI MING-WAH, J.P. THE HONOURABLE NG LEUNG-SING THE HONOURABLE MARGARET NG THE HONOURABLE RONALD ARCULLI, J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE AMBROSE CHEUNG WING-SUM, J.P. THE HONOURABLE HUI CHEUNG-CHING THE HONOURABLE CHRISTINE LOH THE HONOURABLE CHAN KWOK-KEUNG THE HONOURABLE CHAN YUEN-HAN THE HONOURABLE BERNARD CHAN THE HONOURABLE CHAN WING-CHAN THE HONOURABLE CHAN KAM-LAM DR THE HONOURABLE LEONG CHE-HUNG, J.P. THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, J.P. LEGISLATIVE COUNCIL ─ 30 June 1999 9163 THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE GARY CHENG KAI-NAM THE HONOURABLE SIN CHUNG-KAI DR THE HONOURABLE PHILIP WONG YU-HONG THE HONOURABLE WONG YUNG-KAN THE HONOURABLE JASPER TSANG YOK-SING, J.P. THE HONOURABLE HOWARD YOUNG, J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE YEUNG YIU-CHUNG THE HONOURABLE LAU CHIN-SHEK, J.P. THE HONOURABLE LAU KONG-WAH THE HONOURABLE LAU WONG-FAT, G.B.S., J.P. THE HONOURABLE MRS MIRIAM LAU KIN-YEE, J.P. THE HONOURABLE AMBROSE LAU HON-CHUEN, 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, J.P. THE HONOURABLE LAW CHI-KWONG, J.P. 9164 LEGISLATIVE COUNCIL ─ 30 June 1999 THE HONOURABLE TAM YIU-CHUNG, J.P. THE HONOURABLE FUNG CHI-KIN DR THE HONOURABLE TANG SIU-TONG, J.P. MEMBERS ABSENT: PROF THE HONOURABLE NG CHING-FAI THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, J.P. THE HONOURABLE MA FUNG-KWOK THE HONOURABLE ANDREW WONG WANG-FAT, J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE MRS ANSON CHAN, J.P. THE CHIEF SECRETARY FOR ADMINISTRATION MR RAFAEL HUI SI-YAN, G.B.S., J.P. THE FINANCIAL SECRETARY THE HONOURABLE ELSIE LEUNG OI-SIE, J.P. THE SECRETARY FOR JUSTICE MR GORDON SIU KWING-CHUE, J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS MR NICHOLAS NG WING-FUI, J.P. SECRETARY FOR TRANSPORT MR DOMINIC WONG SHING-WAH, J.P. SECRETARY FOR HOUSING LEGISLATIVE COUNCIL ─ 30 June 1999 9165 MRS KATHERINE FOK LO SHIU-CHING, J.P. SECRETARY FOR HEALTH AND WELFARE MR JOSEPH WONG WING-PING, G.B.S., J.P. SECRETARY FOR EDUCATION AND MANPOWER MR DAVID LAN HONG-TSUNG, J.P. SECRETARY FOR HOME AFFAIRS MRS REGINA IP LAU SUK-YEE, J.P. SECRETARY FOR SECURITY MS MARIA KWAN SIK-LING, J.P. SECRETARY FOR ECONOMIC SERVICES MISS YVONNE CHOI YING-PIK, J.P. SECRETARY FOR TRADE AND INDUSTRY MRS REBECCA LAI KO WING-YEE, J.P. SECRETARY FOR FINANCIAL SERVICES CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MR LAW KAM-SANG, J.P., DEPUTY SECRETARY GENERAL MS PAULINE NG MAN-WAH, ASSISTANT SECRETARY GENERAL 9166 LEGISLATIVE COUNCIL ─ 30 June 1999 PAPERS The following papers were laid on the table pursuant to Rule 21(2) of the Rules of Procedure: Subsidiary Legislation L.N. No. Pilotage (Dues) (Amendment) Order 1999..................... 160/99 Pilotage (Dues) (Amendment) (No. 2) Order 1999 .......... 161/99 Pilotage Ordinance (Amendment of Schedule 2) Notice 1999.................................................. 162/99 Marine Fish (Marketing) (Rate of Commission) Notice...... 163/99 Assumption of Responsibility for Markets Notification 1999 ........................................... 164/99 Statutes of the University of Hong Kong (Amendment) Statutes 1999 ................................................ 165/99 Sessional Papers No. 132 ─ Report on the Administration of the Immigration Service Welfare Fund prepared by the Director of Immigration in accordance with Regulation 10 of the Immigration Service (Welfare Fund) Regulations No. 133 ─ Hong Kong Export Credit Insurance Corporation Annual Report 1998-99 LEGISLATIVE COUNCIL ─ 30 June 1999 9167 Reports Report of the Panel on Housing 1998/99 Report of the Panel on Security 1998/99 Report of the Panel on Financial Affairs 1998/99 Report of the Panel on Education 1998/99 Report of the Panel on Trade and Industry 1998/99 Report of the Panel on Environmental Affairs 1998/99 ADDRESSES PRESIDENT (in Cantonese): Addresses. Mr LEE Wing-tat will address this Council on the Report of the Panel on Housing 1998/99. Report of the Panel on Housing 1998/99 MR LEE WING-TAT (in Cantonese): Madam President, as Chairman of the Panel on Housing, I shall highlight some of the work of the Panel for the current legislative session. In the past year, the Panel worked hard in supervising the various housing measures put forth by the Administration. On encouraging home ownership, the Panel held a number of discussions with the Hong Kong Housing Society about the introduction of measures to help owners under the Sandwich Class Housing Scheme to repay their mortgages in times when the economic situation was generally weak. The Panel also supervised the operation of the various housing loan schemes and Home Ownership Scheme to ensure that the Administration put resources to effective use in assisting low- and middle-income families to own their homes. 9168 LEGISLATIVE COUNCIL ─ 30 June 1999 The need for public rental housing has always been a matter of great concern to the Panel. Besides urging the Administration to honour its pledge of building 50 000 public housing units each year, members of the Panel also held discussions with the Administration on various public housing measures, which include the introduction of income and asset tests for prospective tenants of public housing units, a Hong Kong residence requirement for public housing applicants and the restriction imposed on the transference of rental right when the tenant of the public housing unit passes away. Members of the Panel also expressed their greatest displeasure at the Administration for its failing to consult the Panel before implementing major policy changes. On the supply of single-person public housing units, members of the Panel are generally disappointed by the long waiting period, which currently averages nine years. Members of the Panel urged the Administration to increase the supply of single-person public housing units so as to resolve the need for bedspace apartments, or caged apartments as commonly known. In order to have a better understanding of the living condition of those living in bedspace apartments after the Bedspace Apartments Ordinance has been introduced, members of the Panel visited one licensed bedspace apartment and a single- person hostel that caters mainly for residents of bedspace apartments. A study was carried out to look into the problems of bedspace apartments. Madam President, the general downturn in Hong Kong economy has a great impact on tenants of public housing units. Members of the Panel had held a series of meetings with the Administration, discussing measures to alleviate the hardship that the businesses and households at public housing estates had to bear. Besides expressing their views on the Rental Reassessment Scheme for Businesses proposed by the Housing Authority (HA), members of the Panel also urged the HA to make substantial rental reduction and to simplify the rental procedure so as to attract more interested parties to take up vacant business units. On the issue of public housing rental, the Panel carefully analysed statistics of the median rent to income ratio in the past few years. Members request the HA to put on hold all plans for rent increase and review the rental level of public housing so that the rent of public housing is within the affordability of the tenants. LEGISLATIVE COUNCIL ─ 30 June 1999 9169 Another major concern of the Panel is the construction quality of public housing and the problem of estate management and sub-contracting of maintenance work. Given that allowing private sector to participate in the management of housing estates and in the repair and maintenance work can have far-reaching effects, members urged HA to consult public housing households and owners under the Tenants Purchase Scheme before coming to any final decision, and to be sympathetic of the worries of the staff about their future when introducing any change. To conclude, the Panel exchanged views with the Administration on a range of housing issues. On some policy issues, the Administration accepted the suggestion of the Panel and made corresponding changes. I should like to thank Members for the efforts they had put in over the past year. Thank you, Madam President. PRESIDENT (in Cantonese): Mr James TO will address this Council on the Report of the Panel on Security 1998/99. Report of the Panel on Security 1998/99 MR JAMES TO (in Cantonese): Madam President, as Chairman of the Panel on Security, I now table a Report on the work of the Panel for 1998-99 at the Legislative Council and talk on a number of major issues. The Panel understands that when the Administration enters into an arrangement with China on the transfer of fugitives, there are five guiding principles to be followed.