LEGISLATIVE COUNCIL ─ 20 October 2004 347 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 20 October 2004 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 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.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.S., J.P. THE HONOURABLE FRED LI WAH-MING, J.P. DR THE HONOURABLE LUI MING-WAH, 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 348 LEGISLATIVE COUNCIL ─ 20 October 2004 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, J.P. DR THE HONOURABLE PHILIP WONG YU-HONG, G.B.S. THE HONOURABLE WONG YUNG-KAN, 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 THE HONOURABLE LAU CHIN-SHEK, J.P. THE HONOURABLE LAU KONG-WAH, J.P. THE HONOURABLE LAU WONG-FAT, 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 THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE TIMOTHY FOK TSUN-TING, G.B.S., J.P. LEGISLATIVE COUNCIL ─ 20 October 2004 349 THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, J.P. THE HONOURABLE LI FUNG-YING, B.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE FREDERICK FUNG KIN-KEE, 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. THE HONOURABLE DANIEL LAM WAI-KEUNG, B.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. 350 LEGISLATIVE COUNCIL ─ 20 October 2004 THE HONOURABLE TONG KA-WAH, S.C. THE HONOURABLE CHIM PUI-CHUNG THE HONOURABLE PATRICK LAU SAU-SHING, S.B.S., J.P. THE HONOURABLE ALBERT JINGHAN CHENG THE HONOURABLE KWONG CHI-KIN THE HONOURABLE TAM HEUNG-MAN MEMBERS ABSENT: DR THE HONOURABLE JOSEPH LEE KOK-LONG THE HONOURABLE MA LIK, J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE DONALD TSANG YAM-KUEN, G.B.M., J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE HENRY TANG YING-YEN, G.B.S., J.P. THE FINANCIAL SECRETARY THE HONOURABLE ELSIE LEUNG OI-SIE, G.B.M., J.P. THE SECRETARY FOR JUSTICE PROF THE HONOURABLE ARTHUR LI KWOK-CHEUNG, G.B.S., J.P. SECRETARY FOR EDUCATION AND MANPOWER DR THE HONOURABLE PATRICK HO CHI-PING, J.P. SECRETARY FOR HOME AFFAIRS THE HONOURABLE STEPHEN IP SHU-KWAN, G.B.S., J.P. SECRETARY FOR ECONOMIC DEVELOPMENT AND LABOUR LEGISLATIVE COUNCIL ─ 20 October 2004 351 DR THE HONOURABLE SARAH LIAO SAU-TUNG, J.P. SECRETARY FOR THE ENVIRONMENT, TRANSPORT AND WORKS DR THE HONOURABLE YORK CHOW YAT-NGOK, S.B.S. SECRETARY FOR HEALTH, WELFARE AND FOOD CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MRS JUSTINA LAM CHENG BO-LING, ASSISTANT SECRETARY GENERAL MR RAY CHAN YUM-MOU, ASSISTANT SECRETARY GENERAL 352 LEGISLATIVE COUNCIL ─ 20 October 2004 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. Import and Export (General) (Amendment) Regulation 2004...................................................... 155/2004 Import and Export (Fees) (Amendment) Regulation 2004...................................................... 156/2004 Trade Descriptions (Country of Manufacture) (Piece-Knitted Garments) Order .................... 157/2004 Trade Descriptions (Place of Manufacture) (Piece- Knitted Garments) (Amendment) Notice 2004 ... 158/2004 Trade Descriptions (Place of Manufacture) (Repeal) Notice 2004............................................. 159/2004 Air Pollution Control (Motor Vehicle Fuel) (Amendment) Regulation 2004...................... 160/2004 Other Papers No. 13 ─ Urban Renewal Authority Annual Report 2003-2004 No. 14 ─ Companies Registry Annual Report 2003-04 No. 15 ─ The Land Registry Trading Fund Hong Kong Annual Report 2003/2004 No. 16 ─ Report of changes to the approved Estimates of Expenditure approved during the first quarter of 2004-05 (Public Finance Ordinance : Section 8) No. 17 ─ The Government Minute in response to the Report No. 42 of the Public Accounts Committee dated June 2004 LEGISLATIVE COUNCIL ─ 20 October 2004 353 ADDRESSES PRESIDENT (in Cantonese): Address. The Chief Secretary for Administration will address the Council on The Government Minute in response to Report No. 42 of the Public Accounts Committee dated June 2004. The Government Minute in response to the Report No. 42 of the Public Accounts Committee dated June 2004 CHIEF SECRETARY FOR ADMINISTRATION: Madam President, laid on the table today is the Government Minute responding to Report No. 42 of the Public Accounts Committee (PAC). The PAC Report deals with the Administration's response to one outstanding case in the Director of Audit's Report No. 41. In addition, it examines five subjects in the Director of Audit's Report No. 42. The Administration is grateful for the time and efforts of the PAC. I would like to reply to some of the comments made by the Chairman of the PAC who spoke on 23 June on these subjects when the PAC Report was tabled. The PAC's remark concerning the surrender of the Penny's Bay shipyard site was one of the issues raised. The Administration has taken on board the Director of Audit's recommendations in this case. In future, the Lands Department will critically evaluate the risks and financial implications and obtain approval from the relevant Policy Bureaux before accepting a surrender of land on a so-called "as is" basis. The Lands Department has also issued internal instructions to this effect. The Secretary for the Environment, Transport and Works has also instructed all works departments to take on board the Director of Audit's recommendation on strengthening site investigations and liaison with other concerned departments for potentially contaminated sites. Turning to the PAC's findings on Harbour Fest, we accept that there were inadequacies in the assessment, planning and implementation of the project by all the concerned parties, including the Administration, and that the complexities and the time needed to plan and organize such an ambitious project had been 354 LEGISLATIVE COUNCIL ─ 20 October 2004 underestimated. Without understating the exceptional circumstances which gave birth to Harbour Fest, not least of which was the strong community sentiment for urgent actions to get Hong Kong back on its feet after the SARS disaster, we agree that all the concerned parties could have done better in many respects. We have learnt useful lessons from the findings of the Independent Inquiry appointed by the Chief Executive, as well as those from the Director of Audit and the PAC. In the past months, we have been actively following up the various recommendations made by these bodies. For example, following the PAC's suggestion, InvestHK has obtained from the Amercian Chamber of Commerce (AmCham) its accounting records in relation to Harbour Fest, and the authorization from Red Canvas Limited which had acted as AmCham's Special Purpose Vehicle for the organization of Harbour Fest, for the Director of Audit to access its accounting records which were in the possession of the Independent Panel of Inquiry on Harbour Fest. InvestHK has been working closely with AmCham to explore the opportunities for the broadcasting of the TV video on Harbour Fest in other overseas markets. Recently, the video has been broadcast in Europe. Red Canvas Limited has already assigned all registered trademarks in relation to Harbour Fest to the Government. In consultation with the Intellectual Property Department and the Department of Justice, InvestHK is discussing with AmCham the legal documentation for AmCham to relinquish, in the near future, its custodianship of the intellectual property rights associated with Harbour Fest. Separately, the Financial Services and the Treasury Bureau has issued a financial circular on the principles which Controlling Officers should observe and the factors which they should consider when planning non-works projects involving government funding. This will provide useful pointers for Controlling Officers to follow throughout project planning and project delivery. The Civil Service Bureau has been tasked by the Chief Executive to examine the possible culpability of any civil servant involved in the Harbour Fest incident. The Bureau has completed the collation of relevant facts and evidence relating to the manner in which civil servants carried out their duties in connection with Harbour Fest. In undertaking this exercise, the Bureau has taken into account the findings of the Independent Panel of Inquiry's Report on Harbour Fest and the PAC Report No. 42. The Bureau has also invited and LEGISLATIVE COUNCIL ─ 20 October 2004 355 received representations from an officer who faces a possible charge of misconduct.