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HONG KONG LEGISLATIVE COUNCIL — 10 March 1993 2347 OFFICAL RECORD OF PROCEEDINGS Wednesday, 10 March 1993 The Council met at half-past Two o'clock PRESENT THE PRESIDENT THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., LL.D., Q.C., J.P. THE CHIEF SECRETARY THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P. THE FINANCIAL SECRETARY THE HONOURABLE NATHANIEL WILLIAM HAMISH MACLEOD, C.B.E., J.P. THE ATTORNEY GENERAL THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. THE HONOURABLE DAVID LI KWOK-PO, O.B.E., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E. THE HONOURABLE SZETO WAH THE HONOURABLE TAM YIU-CHUNG THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, J.P. THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, O.B.E., J.P. 2348 HONG KONG LEGISLATIVE COUNCIL — 10 March 1993 THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P. DR THE HONOURABLE LEONG CHE-HUNG, O.B.E. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E. THE HONOURABLE PETER WONG HONG-YUEN, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE VINCENT CHENG HOI-CHUEN THE HONOURABLE MOSES CHENG MO-CHI THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P. THE HONOURABLE CHEUNG MAN-KWONG REV THE HONOURABLE FUNG CHI-WOOD THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA DR THE HONOURABLE HUANG CHEN-YA THE HONOURABLE SIMON IP SIK-ON, J.P. DR THE HONOURABLE LAM KUI-CHUN DR THE HONOURABLE CONRAD LAM KUI-SHING THE HONOURABLE LAU CHIN-SHEK THE HONOURABLE EMILY LAU WAI-HING THE HONOURABLE GILBERT LEUNG KAM-HO THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING THE HONOURABLE MAN SAI-CHEONG HONG KONG LEGISLATIVE COUNCIL — 10 March 1993 2349 THE HONOURABLE STEVEN POON KWOK-LIM THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN THE HONOURABLE JAMES TO KUN-SUN DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG DR THE HONOURABLE YEUNG SUM THE HONOURABLE HOWARD YOUNG, J.P. THE HONOURABLE ZACHARY WONG WAI-YIN DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE CHRISTINE LOH KUNG-WAI THE HONOURABLE ROGER LUK KOON-HOO THE HONOURABLE ANNA WU HUNG-YUK ABSENT THE HONOURABLE HUI YIN-FAT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE CHIM PUI-CHUNG THE HONOURABLE LEE WING-TAT IN ATTENDANCE MR EDWARD BARRIE WIGGHAM, C.B.E., J.P. SECRETARY FOR THE CIVIL SERVICE THE HONOURABLE MRS ANSON CHAN, C.B.E., J.P. SECRETARY FOR ECONOMIC SERVICES MR MICHAEL LEUNG MAN-KIN, C.B.E., J.P. SECRETARY FOR TRANSPORT 2350 HONG KONG LEGISLATIVE COUNCIL — 10 March 1993 MR YEUNG KAI-YIN, C.B.E., J.P. SECRETARY FOR THE TREASURY THE HONOURABLE JOHN CHAN CHO-CHAK, L.V.O., O.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER MR ALISTAIR PETER ASPREY, O.B.E., A.E., J.P. SECRETARY FOR SECURITY MRS ELIZABETH WONG CHIEN CHI-LIEN, I.S.O., J.P. SECRETARY FOR HEALTH AND WELFARE MR RONALD JAMES BLAKE SECRETARY FOR WORKS MR CHAU TAK-HAY, J.P. SECRETARY FOR TRADE AND INDUSTRY THE HONOURABLE MICHAEL SZE CHO-CHEUNG, I.S.O., J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS MR ANTHONY GORDON EASON, J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS MR MICHAEL DAVID CARTLAND, J.P. SECRETARY FOR MONETARY AFFAIRS THE CLERK TO THE LEGISLATIVE COUNCIL MR CLETUS LAU KWOK-HONG HONG KONG LEGISLATIVE COUNCIL — 10 March 1993 2351 Sessional Papers 1992-93 No. 64 — A Report of the House Committee of the Legislative Council on the Nationality of Non-Chinese Ethnic Minorities No. 65 — Consumer Council Annual Report for 1991-92 No. 66 — Report of the Public Accounts Committee on the Report of the Director of Audit on the Planning and Financial Control by the Government on Building the Hong Kong University of Science and Technology March 1993 (PAC Report No. 17A) No. 67 — Securities and Futures Commission Approved Estimates of Income and Expenditure for Financial Year 1993-94 Miscellaneous White Paper on the Annual Report on Hong Kong 1992 to Parliament Address Report of the Public Accounts Committee on the Report of the Director of Audit on the Planning and Financial Control by the Government on Building the Hong Kong University of Science and Technology March 1993 (PAC Report No. 17A) MR STEPHEN CHEONG: Mr President, on behalf of the Public Accounts Committee, I have the honour to table the Committee's Report No. 17A today. This Report by the Public Accounts Committee responds to paragraphs 13.1 to 13.20 of the Director of Audit's Report No. 17 concerning the planning and financial control by the Government on building the Hong Kong University of Science and Technology. The Director of Audit's Report was tabled in this Council in November 1991. In consideration of the subject at issue, our Committee had a total of 28 meetings including five public hearings during the past 15 months or so. We have examined in detail the specific areas raised by the Director of Audit in his report; considerable time and effort have also been spent looking into international architectural design competition for the HKUST held in the year 1987, so as to try to ascertain whether the selection of the design could have serious cost implications on the building costs of the University. 2352 HONG KONG LEGISLATIVE COUNCIL — 10 March 1993 Mr President, it is not my intention this afternoon to go over all the conclusions and recommendations of our Committee. However, I think it would be appropriate for me to highlight some of the main recommendations. First, we recommend that in future joint projects with outside parties, a formal agreement between the Government and outside parties should be drawn up before the commencement of the project, setting out the costs and scope of the project, the duties and responsibilities of each party. We also recommend that in respect of major capital projects, the Government should devise a mechanism whereby the Finance Committee of the legislature would be informed at the earliest opportunity of all instances where the approved estimates are likely to be exceeded significantly. Moreover, we consider that as a matter of principle the Government should not undertake any major project on a "design-as- you-build" basis. In those rare cases where this approach has to be adopted, full justifications must be provided to the Finance Committee beforehand, and great care should be exercised in controlling the costs. It will be noticed in Chapter 4 of our Report that the views of Members of the Committee are very much divided on the issue concerning the architectural competition and the selection of the final project design. Yet, let me emphasize that apart from this issue, the Committee has reached consensus over all other conclusions and recommendations. I sincerely hope that Chapter 4 will not overshadow the other Chapters of the Committee's Report. Before I close, I would like to emphasize that the criticisms in our Report are in no way intended to adversely affect the integrity or reputation of the HKUST, which we, as a Committee of the Council, firmly believe will play an essential role in Hong Kong's tertiary educational process. Indeed, as a member of the Council of the HKUST, I am personally very proud of having been associated with this institution right from the beginning. I have every reason to believe that HKUST will contribute significantly towards the future of Hong Kong. Finally, on behalf of the Committee, I would like to take this opportunity to express our appreciation and gratitude to all the persons who gave evidence to the Committee, to the Director of Audit and his staff for the many services which he has rendered, to our Legal Adviser, our Secretary and his staff for their advice, assistance and hardwork throughout the Committee's consideration of this subject. Oral answers to questions Localization programme 1. DR SAMUEL WONG asked: In paragraph 96 of his address to this Council on 7 October 1992, the Governor made reference to the development of the momentum of the localization programme in the Civil Service. Will the HONG KONG LEGISLATIVE COUNCIL — 10 March 1993 2353 Government inform this Council whether the localization programme applies equally to statutory bodies such as the Mass Transit Railway Corporation and the Kowloon-Canton Railway Corporation, which are wholly owned by the Government, and if not, why not? CHIEF SECRETARY: Mr President, statutory bodies established by the Government to carry out specific functions are empowered to appoint their own staff and determine their own employment policy. The objective must be to appoint the best candidate available for the relevant job. That said, the Government certainly likes to see these bodies giving priority to suitable qualified local candidates where available.

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