LEGISLATIVE COUNCIL ― 15 July 2021 8411

OFFICIAL RECORD OF PROCEEDINGS

Thursday, 15 July 2021

The Council met at half-past Ten o'clock

MEMBERS PRESENT:

THE PRESIDENT THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.M., G.B.S., J.P.

THE HONOURABLE LAI-HIM, G.B.S., J.P.

THE HONOURABLE YU-YAN, G.B.S., J.P.

THE HONOURABLE KIN-FUNG, G.B.S., J.P.

THE HONOURABLE WONG TING-KWONG, G.B.S., J.P.

THE HONOURABLE WAI-KING, S.B.S., J.P.

THE HONOURABLE CHAN HAK-KAN, S.B.S., J.P.

THE HONOURABLE CHAN KIN-POR, G.B.S., J.P.

DR THE HONOURABLE MEI-FUN, S.B.S., J.P.

THE HONOURABLE WONG KWOK-KIN, G.B.S., J.P.

THE HONOURABLE MRS LAU SUK-YEE, G.B.M., G.B.S., J.P.

THE HONOURABLE WAI-CHUN, J.P.

THE HONOURABLE PUK-SUN, B.B.S., J.P.

THE HONOURABLE STEVEN HO CHUN-YIN, B.B.S., J.P.

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THE HONOURABLE CHI-MING, S.B.S., J.P.

THE HONOURABLE YIU SI-WING, S.B.S.

THE HONOURABLE MA FUNG-KWOK, G.B.S., J.P.

THE HONOURABLE CHAN HAN-PAN, B.B.S., J.P.

THE HONOURABLE LEUNG CHE-CHEUNG, S.B.S., M.H., J.P.

THE HONOURABLE MEI-KUEN, B.B.S., J.P.

THE HONOURABLE KWOK WAI-KEUNG, J.P.

THE HONOURABLE WAH-FUNG, S.B.S., J.P.

THE HONOURABLE , B.B.S., J.P.

THE HONOURABLE CHEUNG-KONG, G.B.S., J.P.

THE HONOURABLE POON SIU-PING, B.B.S., M.H.

DR THE HONOURABLE CHIANG LAI-WAN, S.B.S., J.P.

IR DR THE HONOURABLE LO WAI-KWOK, G.B.S., M.H., J.P.

THE HONOURABLE CHUNG KWOK-PAN

THE HONOURABLE JIMMY NG WING-KA, B.B.S., J.P.

DR THE HONOURABLE KWAN-YIU, J.P.

THE HONOURABLE HO-DING

THE HONOURABLE SHIU KA-FAI, J.P.

THE HONOURABLE CHONG-SHING, M.H.

THE HONOURABLE YUNG HOI-YAN, J.P.

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DR THE HONOURABLE

THE HONOURABLE CHAN CHUN-YING, J.P.

THE HONOURABLE CHEUNG KWOK-KWAN, J.P.

THE HONOURABLE LUK CHUNG-HUNG, J.P.

THE HONOURABLE LAU KWOK-FAN, M.H., J.P.

THE HONOURABLE IP-KEUNG, B.B.S., M.H., J.P.

DR THE HONOURABLE CHENG CHUNG-TAI

THE HONOURABLE VINCENT CHENG WING-SHUN, M.H., J.P.

THE HONOURABLE WAI-CHUEN, B.B.S., J.P.

PUBLIC OFFICERS ATTENDING:

THE HONOURABLE JOHN LEE KA-CHIU, S.B.S., P.D.S.M., J.P. CHIEF SECRETARY FOR ADMINISTRATION

THE HONOURABLE PAUL CHAN MO-PO, G.B.M., G.B.S., M.H., J.P. FINANCIAL SECRETARY

THE HONOURABLE TERESA CHENG YEUK-WAH, G.B.M., G.B.S., S.C., J.P. SECRETARY FOR JUSTICE

THE HONOURABLE WONG KAM-SING, G.B.S., J.P. SECRETARY FOR THE ENVIRONMENT

DR THE HONOURABLE LAW CHI-KWONG, G.B.S., J.P. SECRETARY FOR LABOUR AND WELFARE

THE HONOURABLE FRANK CHAN FAN, J.P. SECRETARY FOR TRANSPORT AND HOUSING

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PROF THE HONOURABLE SOPHIA CHAN SIU-CHEE, J.P. SECRETARY FOR FOOD AND HEALTH

THE HONOURABLE EDWARD YAU TANG-WAH, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT

THE HONOURABLE MICHAEL WONG WAI-LUN, J.P. SECRETARY FOR DEVELOPMENT

THE HONOURABLE KEVIN YEUNG YUN-HUNG, J.P. SECRETARY FOR

THE HONOURABLE PATRICK NIP TAK-KUEN, J.P. SECRETARY FOR THE CIVIL SERVICE

THE HONOURABLE ALFRED SIT WING-HANG, J.P. SECRETARY FOR INNOVATION AND TECHNOLOGY

THE HONOURABLE ERICK TSANG KWOK-WAI, I.D.S.M., J.P. SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS

THE HONOURABLE CASPAR TSUI YING-WAI, J.P. SECRETARY FOR HOME AFFAIRS

THE HONOURABLE CHRISTOPHER HUI CHING-YU, J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY

THE HONOURABLE TANG PING-KEUNG, P.D.S.M. SECRETARY FOR SECURITY

CLERK IN ATTENDANCE:

MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL

THE CHIEF EXECUTIVE TO ADDRESS THE COUNCIL AND ANSWER QUESTIONS PUT BY MEMBERS.

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THE CHIEF EXECUTIVE'S QUESTION AND ANSWER SESSION

PRESIDENT (in ): Members please stand up while the Chief Executive enters the Chamber.

(The Chief Executive entered the Chamber)

PRESIDENT (in Cantonese): The Chief Executive will first address the Council.

CHIEF EXECUTIVE (in Cantonese): President and Honourable Members, in the past three months since my attendance at the Chief Executive's Question and Answer Session on 8 April, the executive authorities and the legislature have been working on the basis of mutual coordination and checks and balances with encouraging outcomes on the legislative agenda. The Legislative Council passed the bill on improving the electoral system after vigorous and dutiful scrutiny, enabling the smooth commencement of three elections which have to be held under a very tight schedule, as well as the scheduled release of the provisional registers for the Election Committee subsectors by the Registration and Electoral Office on 18 July. In addition, 17 bills have been passed by the Legislative Council in the past three months, including at yesterday's meeting, while another 13 are being scrutinized at full steam. If all of the five bills to be submitted by various Policy Bureaux in the coming weeks are eventually passed before the prorogation, the current-term Legislative Council shall have passed a total of 45 bills, including nine that were passed before April. The 2020-2021 legislative year will be the busiest and most productive year for legislative work in the past 20 years.

After societal stability has been restored and national and political security safeguarded, Members of the Legislative Council and the general public will have reasonable expectations that the governance of the Special Administrative Region ("HKSAR") can be enhanced and that the HKSAR Government can show stronger determination and resolution to address the long-standing problems. There is no doubt that the living conditions of hundreds of thousands of people in Hong Kong need to be improved. The difficulty in home ownership by many families remains a social issue which the Government must tackle. In face of these challenges, the Legislative Council held a debate yesterday on how to resolve the housing problem based on a motion sponsored by a Member. I would like to take today's opportunity to review with Members our work on housing and land and map out the way forward. 8416 LEGISLATIVE COUNCIL ― 15 July 2021

Housing and land are the most important priority of the current-term Government. In my previous policy addresses, housing and land supply were presented before the chapters on the economy and on people's livelihood. Ever since the 2018 Policy Address, the topic had its own chapter and this highlights the fact that adequate land supply is necessary for the development of the economy and the improvement of people's livelihood. In my first policy address, I also made it clear that my housing policy comprises four elements, emphasizing the Government's indispensable role; the focus on home ownership to satisfy people's demands; the focus on supply; and the support to families that are on the waiting list for public rental housing ("PRH") and in poor living conditions.

We need land to build houses, and developable land cannot be produced overnight. Some people have blamed the Government for wasting time on public consultation on land supply, while others have criticized the Government for giving up the obvious and taking the harder path. In fact, the current-term Government has been sparing no efforts in land creation. Under the leadership of the Secretary for Development, I would say that the situation is like we are all in a battle to fight for every inch of land. This is especially so when we were working amid controversies and a lot of our work was subject to filibustering at the Legislative Council and targetted by the radical elements in their struggles in society until recently when things have calmed down in the Legislative Council and community and the process has become relatively smoother.

Under a multi-pronged strategy, we have concurrently taken forward a number of major land development projects in Tung Chung and the Northern New Territories. Through rezoning, we continue to put brownfield sites, agricultural land and Green Belt areas into optimal use to increase housing supply. We have launched the Land Sharing Pilot Scheme to unleash the potential of land owned by developers. We have even taken action to resume private land zoned for housing but left idle for long. Also, we have expedited various urban renewal projects including the redevelopment of urban squatter areas, factory estates of the Hong Kong Housing Authority ("HKHA"), buildings of the Civil Servants' Co-operative Building Society and the Tai Hang Sai Estate. These projects will be taken forward with higher plot ratios to increase housing supply and at the same time address people's long-standing demand for better living conditions.

These initiatives are not empty talk and have been put into action. Last year, I announced that the Government had identified 330 hectares of land which could fully meet the public housing supply target set out in the 10-year Long Term LEGISLATIVE COUNCIL ― 15 July 2021 8417

Housing Strategy. Apart from making all-out efforts to identify and create land, we have also pressed ahead with public housing construction. It is expected that 96 500 public housing units will be completed within the current-term Government's five-year tenure, which is nearly 50% more than the 66 800 units provided in the previous five years. Yet, this still falls short of meeting the demand of families currently on the PRH waiting list and others longing to buy their own properties. We envisage that there will still be a shortage of supply in the first half of the next ten-year period. HKHA and the government departments concerned are working at full steam to expedite their various projects and I have been personally steering this area of work.

In addition to increasing public housing production, a number of breakthroughs have been made under the housing policy of the current-term Government.

Firstly, we have tilted the allocation of our land resources in favour of public housing by revising the split ratio between public and private housing from 60:40 to 70:30. While reflecting my policy stance that "housing is not a simple commodity", this change also acknowledges that with Hong Kong being a free and open capitalist society and an international financial centre, we can hardly fully meet the demand for private housing or regulate prices through policy. To meet people's housing needs, there is no better way than stepping up government intervention.

Secondly, we fully understand that to gain public support for land development, we need to let people know the flats to be built would be affordable to them. In this regard, we have on the one hand expanded the options of subsidized sale flats ("SSFs") to enrich the housing ladder and on the other hand revised the pricing policy for SSFs in 2018 to delink the selling price of these flats from the private housing market. Under the revised policy, the median monthly household income of non-owner occupier households is used as the reference point for assessing affordability, with the monthly mortgage payment not exceeding 40% of the household income as the standard. Take the Kai Cheung Court at Diamond Hill, which is currently in flat selection stage, as an example. The cheapest Home Ownership Scheme flat of around 400 sq ft in the estate is around $2.86 million under the new pricing policy. It represents a downward adjustment of $480,000 from the selling price previously linked to the private housing market. When compared with the full market value, there is even a discount of 40%.

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Thirdly, we have introduced the Starter Homes ("SH") Scheme to help young families with higher income but unable to purchase a flat in the private market to achieve home ownership. Using the first SH project at Ma Tau Wai Road where population intake has occurred as an example, as long as the monthly income of a three-person family falls between $66,000 and $86,000 and their total assets do not exceed $2.21 million, they will be eligible to purchase a SH flat under the Scheme. This SH project has provided about 500 units and was over-subscribed by more than 100 times. Under our current planning, three more SH projects will be developed by the Urban Renewal Authority ("URA") and developers respectively to provide over 3 000 units in the urban area.

Fourthly, we have accepted Members' suggestion and requested URA and MTR Corporation Limited to assume a larger role in public housing production. The former will provide more SH units in its redevelopment projects, while the latter will for the first time in 40 years make use of development of railway facilities again to help boost public housing supply with the topside development of depot facilities at Siu Ho Wan being the chosen project.

Fifthly, we have established the role of transitional housing and are pressing ahead with various projects through collaboration among the community, the business sector and the Government, with a view to improving as soon as possible the poor living conditions of families who have been waiting for PRH for a long period of time. Meanwhile, we have identified sufficient sites for providing 15 000 units, of which 56% are made available by developers at no cost. With construction funded by the Government, the transitional housing will be managed by non-governmental organizations. This is not just a housing supply measure but has also brought about positive effects in generating social capital and achieving harmony.

Sixthly, we have not overlooked the situation of grass-root families which have yet to be allocated with public housing. In this regard, we have launched a three-year Cash Allowance Trial Scheme with a total expenditure of some $8 billion. At the end of last month, the issued application forms of the Scheme to about 90 000 PRH General Applicant households who have been waiting for PRH for more than three years and may also meet other eligibility criteria. Cash allowance will be disbursed in batches starting from the end of this month. Yesterday, we submitted the amendment bill to implement tenancy control of subdivided units ("SDUs") to the Legislative Council in order to provide security of tenure for residents living in SDUs, impose a cap on the rate of rent LEGISLATIVE COUNCIL ― 15 July 2021 8419 increase upon tenancy renewal, and prohibit landlords from overcharging utility fees by setting out the respective rights and obligations of landlords and tenants through the formulation of standard tenancy terms.

In face of the long-standing housing problem of Hong Kong people, the Government does not dare to take the matter lightly. I believe that regardless of the coming change of term of the Legislative Council and the formation of the new-term Government of the HKSAR in mid-2022, housing and land supply will remain a priority of the Government's policy agenda. For the coming year, we will double our efforts in several aspects, which include:

(1) strengthening high-level steer to avoid fragmentation of responsibilities among government departments;

(2) proactively taking forward the study and planning work of the Kau Yi Chau Artificial Islands and New Territories North to ensure sufficient land supply beyond the existing ten-year period;

(3) adopting the "infrastructure-led" and "capacity building" principles more aggressively to speed up the development of the new strategic railway and road networks;

(4) further streamlining the development process and enhancing the role of the Development Projects Facilitation Office of the in coordinating with various departments to expedite the approval process of private development projects; and

(5) examining ways to enhance urban renewal so as to tackle the ageing of buildings in Hong Kong and the associated safety and hygiene problems.

President, since our return to the Motherland, the housing production of Hong Kong has been affected by a number of factors. After all, the crux of the issue is the absence of a stable and sustained land supply, including the ability to establish an appropriate land reserve. In my view, in order to cure the housing problem of Hong Kong people in a more fundamental manner, what we need is not "casual measures" that may only suit the circumstances of a particular time point, but rather the determination to produce land in a resolute and persistent manner, and the courage to stick to our policy in spite of short-term fluctuations in our 8420 LEGISLATIVE COUNCIL ― 15 July 2021 economy or property prices. The current-term Government under my leadership has manifested this determination and courage. I expect that the future Government would continue to embrace this belief.

Thank you, President. I will be pleased to take Members' questions.

DR CHIANG LAI-WAN (in Cantonese): Chief Executive, after much hard work, zero confirmed case has been recorded for over a month in Hong Kong as far as community infection cases are concerned. But recently, there have been a number of import-related cases found at places including the airport and quarantine hotels. As we have seen clearly, if we failed to effectively guard against the import of virus, a big gap will be opened for the virus to spread again locally. While I understand that the Hong Kong Airport Authority ("HKAA") has recently required all its staff members entering the airport restricted area to present proof of COVID-19 vaccination or valid proof of negative test result, what about other frontline personnel who are not employees of HKAA and may have contacts with people arriving in Hong Kong from overseas countries, such as staff members of the Immigration Department and Customs and Excise Department, quarantine personnel, employees of quarantine hotels, and so on? In this connection, Chief Executive, from the angle of protecting the health and safety of employees, will the Government consider making it compulsory for these frontline personnel to receive vaccination, thereby striving to plug the gap in epidemic prevention?

CHIEF EXECUTIVE (in Cantonese): President, I thank Dr CHIANG for her question. Dr CHIANG's observation is correct. After four waves of the epidemic, and if there are cases being overlooked, they must have been imported from outside Hong Kong. Therefore, guarding against the importation of cases has remained an important part of our anti-epidemic efforts although, to be frank, we are under immense pressure coming from the business sector and some Hong Kong people. As an international financial and business hub, if we hardly allow entry by people from outside Hong Kong, we will be put under pressure and we also have to pay a certain price for that. But we can do nothing about it. Now it is most important to prevent the importation of cases from outside Hong Kong, and as it is all the more necessary for us to have exchanges with people in the Mainland, therefore, when dealing with these two factors, sometimes they are somehow interrelated and this, we must consider seriously.

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Dr CHIANG's question is about how to encourage more people to receive vaccination. So far, we have not seen any country in the world enacting laws on mandatory vaccination for certain groups of people. We have yet to see this happen because this, if implemented, will give rise to a lot of contentions. As Members can see, in some European countries there are now demonstrations and protests against compulsory vaccination, for this is a personal right. In Hong Kong, we are taking forward work in this area step by step. HKAA mentioned by Dr CHIANG just now is a very good example, but it should be noted that we have a choice. HKAA encourages and requires people to be vaccinated before they can enter these places or carry out certain work, or if they do not receive vaccination, they have to take virus tests frequently. We are also working in this direction. Therefore, we have, for some time, required about 60 000-odd frontline civil servants―we have 170 000 civil servants, of whom 64 000 are classified as frontline government employees―to receive vaccination or take virus tests regularly. Now we plan to expand this arrangement to cover more employees in this category, and they will need to be vaccinated or tested on a regular basis. In fact, the vaccination rate of these 64 000 frontline government employees is very good, which is over 70%, and a further expansion will make this rate even better. In the meantime, we are considering that persons required to take tests regularly will have to pay out of their own pockets in the future. Sometimes we need to provide incentives, and we also need penalties or motivation, and this is our strategy. If we hastily make vaccination compulsory for all the people, actually this will lead to some problems. Now, the next stage of work under our consideration―I understand that Dr CHIANG is also most concerned about this―will concern schools. It is summer holiday now and we hope that the situation will be comparatively normal when school starts in September because from the experience over the past year, to children, especially students of younger age, the cancellation of face-to-face classes will do great harm on them, especially the grass-roots students. In this connection, the Secretary for Education is conducting a survey and some information will be received at the end of July. We will seriously consider applying to teachers the approach that I have just talked about. The third category is staff members of residential care homes for the elderly ("RCHEs"). Staff members of RCHEs are actually very cooperative, and they are now taking the 16th or 17th (the correct number should be the 20th) round of regular virus tests but we hope that they will receive vaccination as this will be safer and better. So we will work to achieve this objective by all means. All in all, today I cannot decide to adopt a compulsory approach across the board that allows no other alternatives because this, I am afraid, will arouse even greater 8422 LEGISLATIVE COUNCIL ― 15 July 2021 backlash. But we will always monitor the situation to ascertain the need to take more stringent measures at a certain stage to build an immunity barrier for Hong Kong. But turning back to the question, actually the vaccination rate is improving continuously. The vaccination rate of the first vaccine dose has reached 40% now. We will continue to work hard, and I hope that Members in the Chamber and the media can call on the public to actively receive vaccination.

MR KENNETH LAU (in Cantonese): Chief Executive, this year marks the 100th anniversary of the founding of the Communist Party of China ("CPC") and you also went to Beijing earlier to attend the celebration activities and listen to the speech of President XI. CPC, being the ruling party in China, has made enormous contribution to the development of the Chinese nation but some Hong Kong people have prejudices and do not fully understand the contents of President XI's speech. I would like to ask the Chief Executive whether the SAR Government will take the lead to actively organize sharing and exchange sessions and seminars to explain and publicize the contents and spirit of President XI's speech, so that members of the public can understand it and learn from it.

CHIEF EXECUTIVE (in Cantonese): As Members have noticed, many activities have been held in society recently to celebrate the 100th anniversary of the founding of CPC. SAR officials have attended these activities and also made speeches and remarks on the relationship between CPC and "one country, two systems", while highlighting the status of CPC as the ruling party in the Constitution of the People's Republic of China. In a short span of one year, there have been changes happening unnoticeably, and I think as Members can imagine, if it was three or four years ago, would there be this atmosphere in Hong Kong society where we would be very willing to talk more about the ruling party in our country? Since this atmosphere or foundation has been built, we will definitely make good use of it to deepen the knowledge of Hong Kong people, especially the young generation, about the country, their recognition of their national identity as well as their understanding of the relationship between the development of CPC and Hong Kong. We will carry out work in these areas, and as far as I remember it, a large-scale exhibition will be held later by the SAR Government jointly with organizations of the Central Authorities to give an introduction on the development of CPC in the past century, especially its relationship with Hong Kong.

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MR YIU SI-WING (in Cantonese): Chief Executive, yesterday a Secretary told the media that as the epidemic might last until 2023 to 2024, it would be difficult for the Government to subsidize the tourism industry continuously for several years, and that it was now necessary to consider how to help practitioners in some industries that had long been frozen to switch to other industries. The Secretary's remarks are extremely disappointing to the tourism industry. Last night, I received a submission from the chairmen of eight major merchants' associations, asking me to put a question to the Chief Executive today. I hope the Chief Executive will give a response. Tourism is one of the four pillars of Hong Kong's economy and has made tremendous contributions to Hong Kong's economy, employment and international image over the years. The epidemic has been dealing a heavy blow to the tourism industry. Although the Government had launched several tranches of a subsidy scheme until February this year, the industry is already running out of money. Do the Secretary's pessimistic remarks indicate that the Government will no longer care about the tourism industry and will leave it to its own devices? By encouraging practitioners to switch to other industries, does the Secretary mean that the Government does not find it necessary for tourism enterprises, which are now scraping along, to prepare for the recovery of the tourism industry, continue with their operation and assume social responsibility?

CHIEF EXECUTIVE (in Cantonese): I thank Mr YIU for raising this question, so that I can make some clarifications or reiterations here. As Mr YIU has pointed out, tourism is a traditional pillar of Hong Kong's economy. Apart from contributing to our GDP, it also creates a lot of jobs, and brings about the so-called "spillover effect" which gives impetus to the retail, catering, traffic and transportation sectors. We certainly attach a great deal of importance to the development of the tourism industry in Hong Kong. I should have promised Mr YIU on an earlier occasion that I would personally oversee the future prospects of the tourism industry, so I have convened an inter-departmental meeting. However, the biggest difficulty now is the flow of people. If we cannot resume the quarantine-free flow of people with foreign countries, the Mainland and Macao, it is in fact difficult to promote tourism. As Members can see, not only we but also other countries are facing the same problem. However, we should still make proper arrangements, so that when the time has come for us to gradually resume cross-border travel, we will have a sound basis for the tourism industry to develop again. In addition to the meeting I mentioned, we should also look at how the tourism industry in the Guangdong-Hong Kong-Macao Greater Bay Area can fare 8424 LEGISLATIVE COUNCIL ― 15 July 2021 better in the future in terms of multi-destination tourism products. I will also personally examine with the Ministry of Culture and Tourism to see how to do with the recovery of the tourism sector when we can gradually resume cross-border travel―I believe it will be difficult to go back to the old days when there were the Individual Visit Scheme, group tours and the "multiple-trip per-week" arrangement. In choosing to resume cross-border travel in an orderly manner, I can tell Mr YIU that I will definitely keep in mind that those methods should have a positive effect on stimulating the local tourism industry. At the same time, I hope Mr YIU will understand that in order for practitioners of the tourism sector to make a living or take up employment during this difficult time, we have tried to favour these practitioners whenever jobs are created, including collaborating with the tourism sector in particular to enable them to take up relevant positions at our community vaccination centres. In addition, in terms of local tourism, I know that "cruise-to-nowhere" itineraries are very popular and will be launched. All of these efforts are intended to support the tourism industry through this most difficult time, and when things return to relative normalcy, I believe that Hong Kong's tourism industry still has promising prospects. There is plenty of tourism infrastructure in Hong Kong: two world-class museums will be commissioned in our West Kowloon Cultural District; we have the Kai Tak Sports Park, and we will have more tourism events; and we will better support the convention and exhibition industry to organize more conventions and international conferences in Hong Kong, so that more tourists can come to Hong Kong. I hope Mr YIU can rest assured, and I also hope all my friends in the tourism sector can hear what I have just said.

MR YIU SI-WING (in Cantonese): President, the tourism industry has been frozen for a year and a half, and some of the measures mentioned by the Chief Executive, including local tours and cruise tourism, are just a drop in the bucket and cannot offer much help to the tourism industry. Some of the medium- and long-term planning mentioned just now is distant water that cannot quench a fire nearby. I think the top priority of the Government should be to roll out more specific support measures to stabilize the confidence of the industry, including practitioners, and help them tide over this difficult period. Recently, I have asked some Secretaries, but they seem to have no solution. Even if some can offer help, the result has left much to be desired and failed to produce a stabilizing effect that I have just mentioned. Earlier, the Legislative Council passed the motion I moved to support hard-hit industries, and this proves that Members from different sectors understand the plight of the tourism industry and agree that the Government should LEGISLATIVE COUNCIL ― 15 July 2021 8425 continue to support the tourism industry and related industries. Chief Executive, will you listen more to the voices of our industry and provide stronger, more systematic and more specific support to the hard-hit tourism industry?

CHIEF EXECUTIVE (in Cantonese): I welcome the specific measures further proposed by Mr YIU. As Mr YIU and other Members may aware, I have just commenced the consultation exercise on the 2021 Policy Address, and if there are specific measures that are practicable, feasible and financially affordable, there is no need to wait until the annual policy address. I welcome Mr YIU to put forward specific proposals.

MR SHIU KA-FAI (in Cantonese): First of all, I would like to thank the Chief Executive for leading the officials to perform their sworn duty to deal with the two major crises in Hong Kong, including the Hong Kong version of the colour revolution or "black-clad violence" and the once-in-a-century pandemic. Following the enactment of the Hong Kong National Security Law and the improvement of electoral methods, order has been restored in Hong Kong. On the epidemic front, after four waves of virus outbreaks, we can see from the cases in the last 30 days or so that things are well under control under "internal circulation" and the local economy has started to recover. As for tourists, I know that the Chief Executive has also proposed to the Central Authorities to reopen the border partially. We in the retail industry are very happy to hear this because one third of the retail industry's business comes from inbound tourists, of which the Mainland of China accounts for 80%. However, we would like to tell the Chief Executive one thing. We have noticed that under the national policy, if Mainlanders go to Hainan Island for shopping, they are entitled to a tax exemption of $100,000 per year, which has led to a significant increase in business this year. Although Hong Kong applies zero tariff, there is only a $5,000 tax exemption for Mainlanders to shop in the city. Will the Chief Executive help us to propose to the Central Authorities that Hong Kong can also provide a tax exemption of $100,000 per year to Mainlanders, so that our tourism and retail industries can recover better after the resumption of cross-border travel?

CHIEF EXECUTIVE (in Cantonese): I thank Mr SHIU for proposing this very specific measure to help the tourism and retail industries in Hong Kong. Let me put it in a macro perspective, as Mr SHIU said at the beginning, the two major 8426 LEGISLATIVE COUNCIL ― 15 July 2021 initiatives of the Central Authorities, including the implementation of the Hong Kong National Security Law and the improvement of the electoral system, have actually given me greater confidence and motivation to ask the Central Authorities to provide more support to Hong Kong, so that we can ensure the long-term prosperity and stability of Hong Kong on the one hand, and be in a better position to integrate into the overall development of the country on the other. As far as I am concerned, I will fight for whatever Members want me to fight for, as long as it is reasonable; but whether the Central Authorities will let Hong Kong implement every measure it fights for, the Central Authorities have their own considerations. I believe Members understand this. The Central Authorities have given Hainan the task of operating as a free port. There are many policies in Hainan which are the envy of not only the Hong Kong Special Administrative Region, but also other Mainland provinces and municipalities, including tax exemptions and facilitation of importation of pharmaceutical products for the development of its healthcare industry. Therefore, I can only promise Mr SHIU that, as I have said just now, I will propose specific measures to the relevant ministries and commissions of our country at a later stage in the light of the current situation in Hong Kong and the strong support given to us in the 14th Five-Year Plan. I will definitely keep this specific measure in mind, but I do not want Mr SHIU to think that the Chief Executive will definitely get it just because she has said so, as we have to undergo a process and the Central Authorities will eventually have to consider the whole picture.

MR SHIU KA-FAI (in Cantonese): In addition to helping the retail and tourism industries through the policy mentioned just now, it is also important to resolve the conflicts between Hong Kong people and Mainlanders. I hope you can do more publicity in this regard, so that people will welcome Mainland visitors to Hong Kong.

CHIEF EXECUTIVE (in Cantonese): In connection with the point just raised by Mr SHIU, I have to say that for a long time in the past, some people in Hong Kong had been pushing away visitors for us, especially visitors or people engaged in other business activities coming from the Mainland, making them feel very negative about Hong Kong. For this reason, while we are striving for more policies to stimulate local tourism and retail industries, we need to do image-building, and we are doing that now through our five economic and trade offices in the Mainland. We want to change the negative image that some LEGISLATIVE COUNCIL ― 15 July 2021 8427

Mainlanders hold against Hong Kong, so that they will be more willing to come to Hong Kong once cross-border travel resumes or complementary policies are put in place.

MR VINCENT CHENG (in Cantonese): Chief Executive, next Friday is the opening of the Tokyo Olympic Games, and at the flag presentation ceremony held last Wednesday, I saw that you also wished our Hong Kong team a triumphant return. This is also the expectation of the public. In fact, many of our young people are, like Hong Kong athletes, striving for excellence with all their might. "A nation will be strong when its young people are strong". It is encouraging that our athletes are going overseas in such a difficult environment to seek glory for Hong Kong and our country and pursue their dreams. On the other hand, I have also seen that recently, some young people who have participated in some TV singing contests are doing very well and are very popular among the public, and a video clip can have millions of clicks and becomes the talk of the town. Chief Executive, as you have mentioned just now, the Kai Tak Sports Park, the West Kowloon Cultural District, M+ and the Hong Kong Palace Museum will be completed one after another in Kowloon West in the future. May I ask the Government whether it can play a more important role in supporting sports, culture and arts, and whether it will consider, for example, bidding to host some international sports events, such as the Asian Youth Games, or nurturing more elite athletes? And following the completion of so many major cultural and arts facilities, does the Chief Executive have any new plans for the training of arts and cultural talents?

CHIEF EXECUTIVE (in Cantonese): President, I thank Mr CHENG for his question. For many years, I still believe that Hong Kong has an edge in creative industries, culture and arts, which not only can enhance the quality of life of Hong Kong people―because the appreciation of culture and arts can enhance personal cultivation―but can also be industrialized. In particular, the 14th Five-Year Plan of China promulgated in March this year has given Hong Kong a cultural positioning for the first time, supporting Hong Kong to develop into a hub for arts and cultural exchanges between China and the rest of the world. Such a short line provides us with a lot of opportunities. How can we promote the development of the cultural and arts industry especially in the Guangdong-Hong Kong-Macao Greater Bay Area? As the Guangdong-Hong Kong-Macao Greater Bay Area is a huge market, it can accommodate not only the financial industry but also the 8428 LEGISLATIVE COUNCIL ― 15 July 2021 cultural and arts industry. Based on the latest population figures, the Guangdong-Hong Kong-Macao Greater Bay Area today is already an economic region with 86 million people. If our culture and arts have such a large hinterland, the potential for development will be huge, so the SAR Government will definitely work on this front in the future. In particular, the work done in the past serves as a very good foundation and I know that many people have certain views about the West Kowloon Cultural District, but the fact is that it is a very important cultural investment that will elevate Hong Kong's culture and arts to international standards. But at the next stage we need to do more training, and allow more young people to join the industry, or engage in exchanges with the Mainland and foreign countries. Mr CHENG can rest assured. Since we have worked so hard to get a cultural positioning written in the national plan, we will definitely exert ourselves and do a good job in hardware, software and talent training in every respect.

Sports have been developing very well in recent years. Mr CHENG has mentioned the upcoming Tokyo Olympics, to which our athletes have secured the largest number of "admission tickets" ever. I urge all Hong Kong people to cheer for our athletes through live television broadcast. As far as sports are concerned, we have adopted a three-pronged policy: to support elite sports, to develop Hong Kong into a prime destination for hosting major international sports events, and to promote sports in the community. In terms of developing Hong Kong into a prime destination for hosting major international sports events, the commissioning of the Kai Tak Sports Park requires a large number of major international sports events to sustain such a large sports infrastructural project. The work has been commenced today and we need to keep an eye out for major single or multiple sports events that can be held in Hong Kong. As for supporting elite sports, we have really achieved results in investing in elite athletes over the past 10 years, and allocating funding to the Hong Kong Sports Institute ("HKSI") under the Hong Kong Athletes Fund with Members' approval. The final phase of the HKSI expansion is now underway, which will provide special training venues for certain sports. We will definitely continue to support the development of sports in Hong Kong should opportunities, space and resources be available.

MR VINCENT CHENG (in Cantonese): Chief Executive, thank you for promoting sports, culture and arts. I have heard many friends in the sports industry telling me that if Hong Kong can bid to host the Asian Youth Games in 2029 or later, it will be of great help to the development of sports. Will you go back and study with the to see if it is possible?

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CHIEF EXECUTIVE (in Cantonese): We will definitely look into this.

MR POON SIU-PING (in Cantonese): Chief Executive, since the occurrence of "black-clad violence" and the epidemic, the employment of grass-roots workers in Hong Kong has been seriously affected and their livelihood difficulties have been aggravated. This is particularly so with those working in tourism-related industries. As a representative of trade unions and the labour sector, I am duty-bound to fight for and protect the rights and interests of workers, and the Government also has an important responsibility when it comes to policy and improvement of labour laws. Chief Executive, I would like to mention a piece of legislation that is closely related to workers, and I hope you will pay attention to it and facilitate its amendment and improvement. It is the Protection of Wages on Insolvency Ordinance, which is the last lifeline for workers who are owed wages. The ex gratia payment from the Protection of Wages on Insolvency Fund ("PWIF") in respect of arrears of wages has remained unchanged for 25 years since the last adjustment in 1996, and the maximum amount remains at $36,000, which is determined by multiplying the median wage of $9,000 in 1995 by four months. The median wage nowadays is already $19,000, and the ex gratia payment in respect of arrears of wages should be increased to $76,000. At present, the accumulated surplus of PWIF is $6.2 billion, and the number of applications in recent years is only 3 000-odd each year. I believe this will not cause significant financial burden on the Government. May I ask the Chief Executive whether the Government will amend the Protection of Wages on Insolvency Ordinance expeditiously to increase the ex gratia payment in respect of arrears of wages and expand the scope of protection for employees?

CHIEF EXECUTIVE (in Cantonese): I fully understand that a trade union leader has a mission to fight for labour rights. The current Government is tilted in favour of workers to a certain extent, although I did not promise the labour sector anything when I ran for office. The reason is that I had seen promises made but not fulfilled, and thus I was not bold enough to make any promise. However, in the past four years, thanks to the understanding and support of the business sector and the acceptance of the community, there have been significant developments in labour rights, including the increase of paid maternity leave to 14 weeks and the reimbursement of the four-week pay by the Government; and, thanks to the mutual understanding and accommodation of Members, the passage of a bill last week to put the number of general holidays on a par with that of statutory holidays. I will 8430 LEGISLATIVE COUNCIL ― 15 July 2021 also continue to urge the Labour and Welfare Bureau ("LWB") to expedite the legislative amendment exercise to abolish the Mandatory Provident Fund offsetting mechanism. As Mr POON has mentioned the protection of wages on insolvency, I can only respond today that we will take a look at it when we get back, because I do not have a good grasp of the details in this respect. However, since Mr POON has mentioned such a specific issue, which has not been touched upon or examined over the past 25 years, this appears to be a prima facie case that warrants our examination, and I will ask LWB to examine whether there is room for updating or improving this law.

MR POON SIU-PING (in Cantonese): I thank the Chief Executive for such a response. Certainly, I have said just now that the Government has the responsibility to improve labour legislation. As such, will the Secretary for Labour and Welfare present legislative amendments to this law to us Members in the current term of the Council?

CHIEF EXECUTIVE (in Cantonese): I can give a very specific reply to this question, and the answer is no. Because it is already mid-July, and I have just announced that we still have five bills to be presented, which we hope can be passed before the prorogation of the current Legislative Council in late October. This is already a very aggressive timetable. Every amendment bill has to be studied, drafted and submitted to the Executive Council, and then presented to the Legislative Council. We are therefore unable to do it in reality, and I appeal to Mr POON for his understanding. However, I will take a personal interest in the review of this law.

MS STARRY LEE (in Cantonese): Chief Executive, I have checked the records. On 17 March, 28 April and 2 June, we in the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB"), Mr CHAN Hak-kan, myself and Mr WONG Ting-kwong, kept asking about the resumption of cross-border travel of Hong Kong with the Mainland and even Macao at the Chief Executive's Question and Answer Session on all three occasions. In fact, DAB is not the only one who is anxious about this issue, but there are really a lot of people from various sectors for reasons of business, family reunion, medical treatment, prescription collection, schooling and even bereavement―every day many people in the districts ask us, "Honourable Member, can you do us a favour by talking to the Chief Executive and LEGISLATIVE COUNCIL ― 15 July 2021 8431 asking the authorities to continue their efforts to create conditions to resume cross-border travel for us?" Today I would like to put a question to the Chief Executive because I noticed that the Chief Executive told the media earlier that she had relayed the relevant views and submitted a report to the Central Authorities and the relevant departments. In fact, members of the public are really anxious to know the progress of your communication with the Central Authorities. I hope the Chief Executive can explain to us again today the latest situation of communication with the Central Authorities on the resumption of cross-border travel. May I also ask the Chief Executive whether there is a roadmap and timetable for the resumption of cross-border travel, and when cross-border travel can actually be resumed?

CHIEF EXECUTIVE (in Cantonese): Thank you, Ms LEE. First of all, I must reiterate that I am fully aware of the strong demand of Hong Kong people from the business sector or individuals for reasons of investing, schooling or family visit, and that is why whenever I have the opportunity to meet with officials of the Central Authorities and leaders of Guangdong Province, I always bring up this issue―they also find me very annoying―because it is so important to Hong Kong. Certainly, the flow of people for such reasons can only be implemented when both sides consider it suitable and opportune. Normally, the Chief Executive cannot disclose the contents related to any report or discussion with the Central Authorities, but as Ms LEE has heard, the report has been submitted, and this is not the first time a report has been submitted. At each stage, when we feel we have had the conditions―if there is a severe outbreak, we do not have the conditions―we therefore bring it up whenever we see that we have had the conditions over the past one and half years. If you remember, before the fourth wave of the virus outbreak in November last year, we already had the conditions and a preliminary proposal to gradually reopen the border and allocate quota to people who wanted to enter Guangdong for important reasons, but only in Guangdong and not elsewhere. Unfortunately, however, such conditions were gone in a flash, because there was a fourth wave. Today, I think we have better conditions than before, but we still need to work hard in two areas to create conditions. The first is vaccination. A 40% vaccination rate for the first dose is not a very favourable condition, so please―for those who are eager to enter the Mainland without quarantine―the first thing to do is to book an appointment for vaccination. If the vaccination rate can be pushed up to at least 70%, our conditions will further increase and we will continue to use this as a basis for the flow of people between the two places. Another condition is the prevention of 8432 LEGISLATIVE COUNCIL ― 15 July 2021 imported cases. I think we all understand that every time when there is a local case on the Mainland, they adopt stringent anti-epidemic measures as if they are going to war. This is not necessarily only the case with the Mainland Government, as no government is willing to, while adopting stringent measures domestically, allow the entry of certain people with risks who may then spread the virus in the community. We must promote vaccination on the one hand and continue to take measures to prevent imported cases on the other. I urge the people of Hong Kong, especially the business community, to understand that if I introduce too many travel corridors or quarantine-free travel schemes for returning to Hong Kong today, the conditions for the flow of people between the Mainland and us will be eroded directly. I share Ms LEE's anxiety and may be even more anxious than her, but regardless of how anxious we are, results can only be achieved when there are conditions.

MS STARRY LEE (in Cantonese): Chief Executive, in fact, members of the public are really anxious, and I know that the Chief Executive and your team are also anxious, but since people have been waiting for too long, will the Chief Executive consider setting a timetable, so that we can work together to boost the vaccination rate? On the other hand, people would like to know the progress of resuming cross-border travel with Macao when that with the Mainland has yet to be resumed. Can we resume cross-border travel with Macao first?

CHIEF EXECUTIVE (in Cantonese): As far as I know, the flow of people between Hong Kong and Macao will also be handled in the whole picture, that is, we must simultaneously examine the conditions between Hong Kong and the Mainland, and those between Hong Kong and Macao. This point has also been mentioned. The Macao authorities also think that zero infections for 28 consecutive days are not an absolute condition for resuming cross-border travel, and the overall situation must be considered. As regards timetable, I most want to have a timetable for vaccination. Earlier we said that we hoped to reach 70% by the end of summer, say August or September, but there is still a long way to go, and thus we have to keep working hard.

MR JEFFREY LAM (in Cantonese): The Chief Executive has mentioned the business sector many times when giving her address and replying to Members' questions. I think the business sector and the Government should work closely LEGISLATIVE COUNCIL ― 15 July 2021 8433 together, and I also thank the Chief Executive for listening to the voices of the business sector. The business sector has also expressed a lot of different views recently, including the resumption of traveller clearance. We hope the Chief Executive will fight for us a partial resumption of traveller clearance in August as the epidemic in Hong Kong has somewhat stabilized now. Earlier on, the Chief Executive mentioned on the radio that among the more than 900 initiatives and policies that she had put forward in the four policy addresses delivered during her term of office, she had only failed to honour a few of them. Can the Chief Executive share with us which specific policies she is really care about and wants to implement, and she hopes to accomplish within the remaining term of office of the current-term Government in order to mark a perfect ending? I also understand that she has mentioned that some issues have to be carried over to the next-term Government. Does she hope that the Government in the future will continue with the beliefs of the current-term Government? Would she like to carry them on by herself?

CHIEF EXECUTIVE (in Cantonese): Mr LAM, there is no need to beat about the bush and ask questions that I would not answer. You are right. With the hard work of our team and the full support of the civil service, we have been making strenuous efforts to implement every initiative undertaken in the policy addresses, despite the unprecedented challenges that we have experienced in Hong Kong over the past four years―It can be said that we have almost been unable to function for two years. When we say that most of these initiatives have been completed, but a few are slightly lagging behind and need to be expedited, there are really not many initiatives that have completely disappeared and have not been launched. What I am really eager to do is to rationalize the traffic among the three road harbour crossings, but we could not achieve it as everyone did not agree, and we have no choice. If society finds certain proposals unacceptable, we would accept this, and I would not feel very discouraged as a result. We need to look at the future with a vision. As I have said earlier, we can now put the principle of "one country, two systems" back on the right track, we have a guarantee of political security, and we no longer need to worry about the political regime being overthrown. We should then think for the longer term. The SAR Government is in a position to think for the longer term because we are not a government formed under party politics. In foreign countries, the government may be controlled by Party A today but by Party B after four years. It would be very difficult for them to plan for the development of the country and enhance people's living standard for such a long term as two centuries, which is what the Communist Party of China in our country is able to do. Although the SAR does not need to plan for 100 years, 8434 LEGISLATIVE COUNCIL ― 15 July 2021 at least we can look farther ahead, especially in the areas of land development and economic development. Looking forward, I hope that all of us would have confidence. Given Hong Kong's solid foundation, the State has hence specified eight focuses for us in the 14th Five-Year Plan. There is indeed a lot of room for us to play a part under these eight focuses. In addition, we have the Guangdong-Hong Kong-Macao Greater Bay Area in our proximity. Therefore, I hope all of us can look forward and actively engage in building the future of Hong Kong, especially in creating more opportunities for our young people to enrich their lives. The business sector is very important in this process. Let me repeat, the business sector is very important.

MR JEFFREY LAM (in Cantonese): Just now I have asked the Chief Executive about the specific work she wants to do and is care about, and one of the issues that she has mentioned is education. There are indeed a lot of problems in this area. First of all, I thank the Chief Executive for her concern about the development of the business sector. But then, the issue of education cannot wait another one or two years. I think we need to make more efforts in this period of time. Can the Chief Executive tell us what she is going to do in this respect in the coming year?

CHIEF EXECUTIVE (in Cantonese): I cannot deny that there have been some deficiencies in Hong Kong's education since the return of sovereignty. We must exert ourselves to do a lot of catching up, particularly in cultivating a sense of national identity and understanding of the country's development. So, there have been some breakthroughs in this area over the past few years. For instance, we have made Chinese History a compulsory subject for junior secondary students in the 2018 school year; we will also introduce Citizenship and Social Development to replace Liberal Studies in September this year; we have promoted national security education in schools after the promulgation of the National Security Law; and we have also required school sponsoring bodies to improve their governance and not to be lenient with teachers who breach the regulations. We need to step up such efforts. Education is indeed not a process which we can go through overnight, especially when there are a lot of issues in education which require improvement after the past 20-odd years. In the coming period, we need to actively improve the education system in Hong Kong, so as to nurture our future generations by equipping them with a sense of belonging towards the country, a love for Hong Kong, an international perspective and a sense of commitment for the Hong Kong society, as I have always said. We will continue to pursue such LEGISLATIVE COUNCIL ― 15 July 2021 8435 work in education. I am also glad to see that in the past year, the education sector―when speaking of the education sector, it was lopsided in the past, with issues being handled in a lopsided manner politically―but the principals and school sponsoring bodies with whom I have come into contact in recent years agree very much with these directions, and they will fully cooperate with the in taking forward its work as well.

MS ALICE MAK (in Cantonese): President, the Chief Executive has mentioned in her opening address an issue that many people are concerned about, which has even been debated in this Chamber of the Legislative Council for several consecutive weeks. And that is, the land and housing problem. In fact, Hong Kong has an "unparalleled" speed in terms of land and housing development. Just take the recent development in the New Territories North as an example, we have spent $1 billion on research alone without planting even a blade of grass in seven years. Despite the efforts made by the Bureau to further shorten the time needed for the study, they still say that it will take five years, which is really too slow. Therefore, when I heard the Chief Executive say in her opening address just now that she would enhance supervision and would not allow fragmentation of responsibilities among government departments, honestly, this is an exciting piece of news. Moreover, the Chief Executive has stated earlier that unswerving courage is required in resolving our land and housing problem. The future really looks bright. Chief Executive, I have this question for you: Will you conduct, with your unswerving courage and persistence, a review of all the relevant laws in Hong Kong, including the Town Planning Ordinance ("TPO") and the Protection of the Harbour Ordinance ("PHO"), in order to remove the various barriers and restrictions to shorten the time required for all land development projects? In addition, will you exhaust all means, including the tax regime which is less often mentioned, to re-introduce the vacant property tax on first-hand properties that your goodself have undertaken to introduce in this Chamber in the first place, and to examine the introduction of an idle land tax and a capital gains tax on properties subsequently?

CHIEF EXECUTIVE (in Cantonese): I have noticed that whenever the relevant bureaux submit some funding proposals, especially those involving some studies, Members would often give feedback similar to Ms Alice MAK's earlier remarks, that is, why it takes so long. Yet, Ms Alice MAK has also provided an answer to this issue, it is because there are a raft of statutory procedures in Hong Kong.

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As a matter of fact, we have to go through very detailed statutory procedures in many cases, including an environmental impact assessment ("EIA") which is required for all reclamation projects and all projects having an environmental impact. It would take at least 12 months to complete an EIA, while it would take "9+3", i.e. a total of 12 months, to complete land rezoning procedures with the ("TPB"). These 12 months after 12 months, whilst the time needed in case a judicial review is sought has not yet been counted―I hope there will be fewer such judicial reviews in the future―are exactly the factors that impede our land development process. But anyway, we are willing to review and compress these procedures. There is already a procedure under the Development Bureau ("DEVB") which is initially applicable to streamlining the procedures of the departments responsible for land and planning affairs under DEVB's purview. In last year's Policy Address, I have authorized the Secretary for Development to take into account the situation of other bureaux. If such matters as transportation and road administration are also involved in the procedures, the Secretary for Development would examine in an overall manner whether there is further room for streamlining and compressing the procedures.

It will be a mammoth task to review the ordinances, especially the two ordinances mentioned just now. Hence, I am afraid that it would be difficult for the current-term Government to undertake to review such a major piece of legislation in the near future. Nevertheless, I hope the next-term Government will comb through the relevant statutory requirements once again. However, there is always a background for these statutory requirements to become laws. For example, PHO reflects Hong Kong people's love for the Victoria Harbour, which is comparable to Hong Kong people's love for the country parks. Therefore, we cannot make radical changes to these ordinances at will simply because of the acute shortage of land today. In fact, we cannot make it without public support. TPO is a public engagement process enabling members of the public to know that they have to make representation to TPB if they disagree with some land uses in Hong Kong. With this in mind, we cannot scrap these ordinances right away and start all over again. But we cannot say that there is no room for improvement as there is always room for improvement and refinement in everything.

The tax issue is even more sensitive, because Hong Kong is after all a free and open city which adopts a simple tax regime with low tax rates. As now the whole world is said to be examining the tax issue, I dare not promise lightly here that the SAR Government will pursue land development by starting with the tax regime.

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MS ALICE MAK (in Cantonese): President, just now the Chief Executive said at the very beginning that she had unswerving courage, and I believe she does. So, as long as she will not waver, there is even no need to talk about a new tax regime. Chief Executive, your goodself are now standing over there, and you have promised to introduce a vacant property tax on first-hand properties in this Council back at that time. Will you be able to introduce a vacant property tax on first-hand properties within this year? In fact, the bureau led by Secretary Frank CHAN has already done all the work. Can you stand firm with your unswerving courage to introduce this vacant property tax on first-hand properties? Can you tell us you will re-introduce it while standing over there?

CHIEF EXECUTIVE (in Cantonese): Courage and recklessness are sometimes the two sides of a coin. While we will continue to demonstrate our courage in expanding land resources, we will not arbitrarily put forward proposals the goals of which are difficult to achieve according to our assessment back then or proposals that are difficult to gain support in society within such a short period of time. I am not saying that we cannot put forth such proposals in the future, but Members should understand that there remain only three months in the current term of the Legislative Council, and I have only 11 months left in my term of office. I am afraid that it will give rise to some speculations if I make too many promises to you while standing here. Therefore, I am just being realistic in telling Ms Alice MAK or other Members what we can do in our remaining term of office and what has to be left for the next term.

(Ms Alice MAK stood up to indicate her wish to ask a follow-up question)

PRESIDENT (in Cantonese): Ms Alice MAK, you have already asked a follow-up question in respect of your question.

MR WILSON OR (in Cantonese): Chief Executive, you and your team have been working hard and adopting a multi-pronged approach to speed up the identification of land for housing development, and there are short-term measures to support residents of inadequate housing, showing that the Government is determined to tackle the housing problem step by step, but in fact the crux of the problem with land development is that there can hardly be any changes without a 8438 LEGISLATIVE COUNCIL ― 15 July 2021 land reserve. If there is no flour, or land, how can we make bread? In the face of the keen demand for land, the Chief Executive will, as I have heard her saying just now, try her best to develop North East New Territories, and some 20 hectares of land will be released from the original site of the Lok Ma Chau Control Point due to the implementation of co-location arrangement at Huanggang Checkpoint and its transformation into a purely passenger checkpoint. However, both I and other Hong Kong people are perplexed as to why this site has to be studied jointly with the San Tin/Lok Ma Chau Development Node in the future. It will take two or almost four years for this study to be completed. In fact, both I and other Hong Kong people are baffled by the fact that a site as large as 20 hectares, with no need for land resumption and relocation compensation, is right before our eyes. Chief Executive, what are the difficulties or ideas that promoted the need for a joint study?

CHIEF EXECUTIVE (in Cantonese): I thank Mr OR for raising his question. Recently, I have had a new point of view on the New Territories North Development, and I am grateful to Mr LAU Kwok-fan for querying whether the New Territories North should be looked at in a more holistic way, rather than a piecemeal way. For example, Kwu Tung North, Fanling North, Hung Shui Kiu, Ha Tsuen, Lok Ma Chau and Man Kam To should be looked at in a holistic way. I have noted the Honourable Member's proposal of the concept of Shenzhen-Hong Kong economic belt or checkpoint economic belt. I do not want to talk in detail about the planning of the 20 hectares of land to be released by the relocation of our control point to Huanggang Checkpoint in Shenzhen, but I can tell you that we will take a holistic approach in respect of the New Territories North Development. I wish I would be able to explain this to the community and the legislature during my remaining term.

MR WILSON OR (in Cantonese): President, "increasingly expensive, small and crowded housing units" is already a vivid description of the housing problem in Hong Kong. Chief Executive, I hope you can share people's aspirations and concerns. I have roughly estimated that nearly 10 000 units can be built on the 20 hectares of land to meet the current housing demand. I hope you can reconsider whether you can prioritize the development of these 20 hectares for public housing. Can you reconsider it, Chief Executive?

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CHIEF EXECUTIVE (in Cantonese): As I have responded to Ms Alice MAK just now, every land development project has to undergo certain procedures and in fact has to be supported by ancillary facilities. As regards the site of our control point, it cannot be simply used for housing purposes tomorrow, and we have to make sure that all ancillary facilities are in place. In addition, there are still two to three years to go until the completion of the new Huanggang Checkpoint, and thus this is not a housing development project that can be undertaken in the short term. However, as I have responded just now, we will also study the best way to develop the site released by Huanggang Checkpoint in a holistic way. You have said today that it should be used for housing, but this may actually affect our overall plan, because we all remember that Huanggang Checkpoint is actually very close to the area for our innovation and technology development. As such, we should look at the whole picture, and, as I have just said, we hope to increase the capacity of the New Territories North to better meet the demand for housing sites in Hong Kong.

MR KWOK WAI-KEUNG (in Cantonese): President, to date, there has been no progress in the resumption of cross-border travel, thus causing hindrance to Hong Kong's economic recovery and increase in employment. Practitioners in the tourism industry are not the only ones who cannot wait. In fact, cross-boundary students cannot wait either, because classes will fully resume in Hong Kong, but cross-boundary students may have to continue to attend classes online. Back to my question. While we are still in the midst of the epidemic, what long-term plans does the SAR Government have for post-epidemic economic recovery and transformation of the structure? A simple example is that the proportion of "gig economy" has increased substantially during the epidemic. Despite its considerable flexibility, the naked truth is that employees have zero protection, and false self-employment may become rationalized. As a matter of fact, overseas countries already have the experience of introducing legislation to establish the employment relationship in respect of jobs from online platforms. However, the Labour and Welfare Bureau in Hong Kong has remained indifferent. It still says that it has to hold discussions and look at the situation first, while the "4-1-18" (continuous employment contract) requirement has remained unchanged, coupled with the issue of protection for "gig workers". Should a central occupational insurance compensation fund not be set up expeditiously to protect our workers? Because there have already been cases of injuries and deaths.

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CHIEF EXECUTIVE (in Cantonese): Mr KWOK is a Member who has been fighting for labour rights and interests. In my view, the epidemic in Hong Kong may not necessarily inflict a serious impact on the operation of the economy or the labour force because after all, compared with other places, Hong Kong is a highly dense city. Under the epidemic, some places have got used to the work-from-home arrangement, working at home or online, but that may not be the case in Hong Kong. We see a rising trend of online shopping, but generally speaking―Mr SHIU may know it better than me―it will not replace physical retail which still enjoys good prospects in Hong Kong. Therefore, I am afraid this is not a priority issue among our tasks relating to labour rights and interests. Currently, the most important labour issue is certainly the creation of jobs. It is hoped that there will not be too many labour disputes arising from this unemployment situation. Moreover, there is the need to put forward the legislative amendment for the MPF offsetting arrangement. Hence, what Mr KWOK mentioned just now is a very big issue. I am afraid it is not a task which can be commenced today.

DR PRISCILLA LEUNG (in Cantonese): President, Chief Executive, I know that the Chief Executive has always been very concerned about the planning for people's livelihood. Two days ago, a 70-year-old blind lady "hit the jackpot". Yet, what she won was not the jackpot offered by the business sector for vaccination but a piece of concrete of the size of our desk fallen from the ceiling in her old housing estate flat in Shek Kip Mei. She is blind, so it is "very lucky" that she had survived. Then, she sought help from the Housing Department ("HD"). HD replied that she still had to bear the repairing costs of the air-conditioner after the repair works was completed. Since she did not have the money, she delayed the works for a few days. Later, when her son came to visit her, he really "hit the jackpot", for a large piece of concrete fell and cut into his leg. He was sent to the hospital. I want to say that if you go to Shek Kip Mei, you will see some old public housing estates. They look beautiful on the outside because they have been repainted. The case is exactly the same as a lady wearing thick makeup who looks beautiful outside but her face is covered with wrinkles under the makeup. The year before last, in 2018, we visited the districts with Secretary Frank CHAN. The Business and Professionals Alliance for Hong Kong ("BPA") has stated repeatedly that there are 19 aged public housing estates in Hong Kong in need of redevelopment. If the hurdles and barriers are removed, the number of residents who can be allocated public housing units will increase from 66 000 to 200 000. We always hope that the Government can remove the hurdles and the barriers. Regrettably, I think the policies of HD are as archaic as these housing estates. As LEGISLATIVE COUNCIL ― 15 July 2021 8441 they consider that the existing policies will have implications on the residents waiting for public housing, the hurdles and barriers have not been removed so far. A newspaper followed this news exclusively for three consecutive days and found that HD had only redeveloped three public housing estates in the past eight years. In fact, I have confidence in the Chief Executive, for you can definitely get things done if you are concerned about them. Take Tai Hang Sai as an example, after a few years of negotiation, as the Chief Executive reported just now, the hurdles and barriers have been removed. Therefore, may I know whether it will be possible for the Chief Executive to lead HD and various bureaux to remove the relevant hurdles and barriers, so that more people, 200 000 people, will have the opportunity to realize their dream of being "allocated a flat"?

CHIEF EXECUTIVE (in Cantonese): Thank you, Dr LEUNG. Three years ago, BPA raised the issue of redevelopment of public housing estates, and I discussed it with the Transport and Housing Bureau and HD at that time. In fact, the difficulty is neither the removal of hurdles and barriers as mentioned by Dr Priscilla LEUNG just now, nor is it the lack of determination, courage or the fragmentation of policies as I mentioned in my opening remarks, but the supply problem. After all, these residents living in old housing estates are already accommodated in public housing flats, having a roof over their heads, though the quality may be less than satisfactory. On the other hand, many more people, 100 000-odd, are still waiting for public rental housing. We see that those living in subdivided units are enduring the poor living environment and exorbitant rent. Therefore, I have studied the entire redevelopment plan seriously. I reckon that if we start the redevelopment of these relatively old public housing estates today, we have to provide in-situ rehousing and transfer residents to other housing estates on a priority basis. This will directly affect the allocation of new flats to families on the general Waiting List. Our difficulty is to find out whom we want to help and who needs our help the most. I have decided that the most in need are those living in the worst environment, so new public housing flats should be allocated to them rather than be used for rehousing those residents affected by housing estate redevelopment. Back to square one, this is a matter of supply. If we can find enough land, HD should have the capability and funding to build more housing estates. Yet, we have to find the land. That is why I have spent some time to explain the work on land supply today. I hope Dr LEUNG would understand it is not that individual departments are stubborn or unwilling to do it. It is because having seriously considered the figures, we reckon that the redevelopment of relatively old housing estates will directly affect the waiting time for "allocation of flats". In fact, the situation today is very undesirable with the average waiting 8442 LEGISLATIVE COUNCIL ― 15 July 2021 time being nearly six years. Therefore, at this time, we cannot undertake or start the redevelopment of public housing estates. Certainly, if risks in the internal structure of individual housing flats are identified, I will encourage HD to handle these cases in a humane manner, offering assistance as far as practicable. They should not merely focus on the external walls, but should also check the inside of housing units, making improvements as far as possible to safeguard the safety of residents living in public rental housing.

DR PRISCILLA LEUNG (in Cantonese): Chief Executive, the case just now is a special case handled in a special way. Since the case has been magnified, the old lady LEUNG is allowed to move to live with her daughter. What we mean is that all residents are the same, and there should not be queue jumping. Nonetheless, I notice that the Tai Hang Sai model is successful, so we may reconsider how to remove the hurdles and barriers. A small number of units in the same district may be set aside to house the elderly or people with disabilities, while some other residents may move in batches to the so-called interim housing in the vicinity. By doing so, a lot of land will be released. It is precisely for this reason that we are persistent and hope that the Government will reconsider the matter. I think the breakthrough in Tai Hang Sai is a great ray of hope, and I hope and believe that HD and the responsible departments, especially under the leadership of the Chief Executive, will have a chance to do so. In fact, residents of the remaining 19 public housing estates also look forward to redevelopment, and this will provide more options for those who are waiting to be allocated a flat as the location of those sites are quite good.

CHIEF EXECUTIVE (in Cantonese): Dr LEUNG, it is the Urban Renewal Authority which has brought a ray of hope to the redevelopment of Tai Hang Sai. As the project is carried out under another system and by another organization, it is not subject to the Waiting List for public housing of the Housing Authority on which there are over 100 000 people, as I mentioned earlier. Definitely, given the concern raised earlier, HD will certainly be unwilling to proceed with the Tai Hang Sai project. Therefore, I hope Dr LEUNG can understand that it is difficult for us to start the redevelopment of these old districts in the short term. Nonetheless, it is the responsibility of HD to continue to maintain the quality of old districts and old housing estates, particularly in terms of safety, so I would ask Secretary Frank CHAN to keep up the hard work.

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MR MICHAEL TIEN (in Cantonese): Chief Executive, as Hong Kong has come a long way, the boundaries and definitions of political issues relating to "one country, two systems" have become clear in many aspects, and society as a whole has regained stability. As for accepting hospitality, there is no clear definition so far. In my view, officials cannot avoid meeting people, for they will be accused of "out of touch with reality" if they do not meet with people. Yet, when they meet with people and are offered hospitality, they do not know how to respond. I hope you could ponder this. Second, regarding the tenancy control of "subdivided units", I think all tenancy agreements should include a provision on controlling initial rent, for the absence of this element will render the arrangement meaningless …

PRESIDENT (in Cantonese): Mr TIEN, would you please ask your question and let the Chief Executive answer it?

MR MICHAEL TIEN (in Cantonese): President, I understand it, but I do not want to ask a question. Just now, I have raised two points but not any question. (Laughter) I will ask my question soon.

PRESIDENT (in Cantonese): Mr Michael TIEN, it is now the time for the Chief Executive's Question and Answer Session, please ask your question.

MR MICHAEL TIEN (in Cantonese): Alright, next comes my question, just give me a chance. Chief Executive, you said you had submitted a report to the Central Authorities and requested for the resumption of cross-border travel. I will give all-out support to this. However, I would like to ask whether you have communicated with the key stakeholder, the Guangdong Province, during the process? If you say you have, I am a bit puzzled, because the existing measures to prevent the importation of cases in Hong Kong differ greatly from those adopted in the Guangdong Province, which can even be said to be running counter to each other. They require all people entering from high-risk areas to be quarantined for 21 days, and in addition to several times of testing, all people, whether vaccinated or not, are required to be tested for antibodies to guard against false negative cases. In Hong Kong, for those who have received vaccination, the quarantine period can be shortened from 21 days to 14 days and there is no need to undergo antibody tests, let alone requiring everyone to test for antibodies to 8444 LEGISLATIVE COUNCIL ― 15 July 2021 prevent false negative cases from being imported into the community. What I mean is that due to the great discrepancies in the measures to prevent the importation of cases, once cross-border travel is resumed, it will mean that they have to count on us to guard against the epidemic on the border. I learn that they are quite worried about this. I would not say which side will benefit from the resumption of cross-border travel, yet our counterpart definitely does not want to bear the risks resulting from relaxing the measures to prevent the importation of cases on our part. As far as the resumption of cross-border travel is concerned, whether you have communicated with them and whether they support the arrangement really matter. You said that a report had been submitted to the Central Authorities, does the report have the support of the Guangdong Province?

CHIEF EXECUTIVE (in Cantonese): I thank Mr TIEN for his question. Although our land control points are all connected to the Guangdong Province, I believe the movement of people is subject to the policies of the Central Authorities in epidemic prevention, which include various government departments, like the National Health Commission, ports of entry and exit, the General Administration of Customs, and so on. Of course, we have discussed with the Guangdong Province. As I said just now, in November last year, we were supposed to be ready for the gradual resumption of cross-border travel and discussed this with the Guangdong Province. It was me who discussed the issue with the Governor of Guangdong Province, MA Xingrui, in person. Certainly, if advice from the Central Authorities is sought, they surely hope that the package of anti-epidemic measures adopted in Hong Kong aligns with that adopted in the Mainland. However, as far as I know, the Central Authorities understand that it is very difficult to be completely consistent. This has nothing to do with a lack of determination or insufficient resources, but the difference in systems. We do not have the merits of their system which allows the cordoning off of a small area once a case is identified and provides support to residents in the restricted area in meeting their daily needs through the supporting facilities already in place. Currently, we are adopting a different approach which the Central Authorities have acknowledged. Under this approach, when a case is identified, the small area will be cordoned off to carry out mandatory virus testing before residents are allowed to leave. In some measure, we are doing it the Hong Kong way to achieve the purpose of preventing the spread of virus as far as possible. Infection cases, if any, will be identified in the first place and sent to hospital for isolation. According to the information I have received, and I also hope that, the adoption of anti-epidemic measures in Hong Kong which are exactly the same as those of the Mainland will not be a prerequisite LEGISLATIVE COUNCIL ― 15 July 2021 8445 for the resumption of cross-border travel. As such, I have stated publicly that there is not such a tough target requiring Hong Kong to adopt anti-epidemic measures identical to those of the Mainland in order to resume cross-border travel.

These tasks have to go through a process, and we have to explain that we have the required capability. A year or so ago, we did not have much capability, but now we do. We are capable of conducting as many as 120 000 virus tests a day, making available as many as 4 000 to 5 000 quarantine units, and having the Central Authorities provide us with an additional of 800-odd negative pressure beds. Hence, for the time being, I will adhere to our approach of "preventing the importation of cases". Although we cannot exactly copy the approach adopted by the Mainland in "preventing the importation of cases", we will strictly prevent the spread of virus into the community. And, if the virus is unfortunately spread into the community under certain circumstances, we have demonstrated the ability to contain the virus and prevent a community outbreak. In fact, we have seen that three or four sporadic local cases had been identified since May and June, which were actually imported cases, but they had not caused an outbreak in the community. The current situation differs greatly with the earlier cases involving the dance clusters and the gym cluster. This is my current position, and I will continue to discuss with the Central Authorities, the Guangdong Province and the Shenzhen Municipality in this direction.

MR MICHAEL TIEN (in Cantonese): Chief Executive, I will give you 99.5 marks, if not 100 marks, in the prevention of the spread of imported virus, because you have really done a good job. What worries me is the "prevention of the importation of cases", for the quarantine period for people coming to Hong Kong from high-risk countries has been shortened from 21 days to 14 days, and these people are required to be vaccinated but will not be tested for antibodies. The Mainland is very concerned about the testing of antibodies, for many people are not vaccinated, and without being tested for antibodies, they will become imported cases if their results turn out to be false negative. Of course, they will not shorten the quarantine period for vaccinated people tested positive for antibodies, but we will. You mean that the Guangdong Province knows exactly what we have been doing and your thoughts on the way forward, and they have promised you that this will not affect the original decision on the timing of the resumption of cross-border travel, is that right? Therefore, if the Central Authorities gives its blessing, everything will be ready and we can implement it immediately. Is that what you mean?

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CHIEF EXECUTIVE (in Cantonese): That is not what I mean. I have to clarify that the Guangdong Province so far has not made any commitment on the resumption of cross-border travel between Hong Kong and the Mainland. We discussed a plan previously, but the plan had lapsed as it could not be implemented. Now, we have to restart the discussion. I am only saying that the discussion will not be simply between the Guangdong Province and the SAR Government, as it can be proceeded only with the guidance and direction of the Central Authorities.

DR CHENG CHUNG-TAI (in Cantonese): Mrs LAM, I wonder if you still remember that when you delivered your first Policy Address, the first question that I asked was about whether the Chief Executive of the SAR would be subject to regulation of the Prevention of Bribery Ordinance ("PBO"). Of course, this issue would not be seen as a problem nowadays. In fact, we all know that it is related to constitutional positioning. In respect of combating corruption and upholding integrity, I agree that you can uphold the integrity and conduct required of the Chief Executive and the head of the civil service. I am sure of that. But the problem is, it is not enough that you alone can earn this recognition. Likewise, in the whole Government, if we can "keep the water clear", some people may say that "there would be no fish". The problem is that in the Hong Kong society nowadays, we would ask a question in the past six months: Since our electoral system has been improved, and since there will be a major reorganization of the structure of the entire Government, why the incidents that took place in the past few months, especially the scandal that arose recently involving three senior officials, would make the community, the SAR Government, and even you, who can hold yourself to a high standard and be clean, so embarrassed?

My question is, I agree with the remarks made by a Secretary yesterday that officials need to meet with people from different social strata. But then, the meeting in this case has caused too much unnecessary speculation and conjecture among us, so why can they not be open and honest in this case? For me, I will turn back to a fundamental subject: With respect to the SAR Government in the past 10 to 20 years or so, integrity is the most important part that is left with us at present. Is there any way you can tell the people of Hong Kong that in respect of combating corruption and upholding integrity, the standards and criteria required of the entire civil service can still be maintained, and that the relevant system would not become a tool and means to crack down on political enemies or the so-called different camps? Members of the public would also ask why the scandal was revealed only after the major reorganization of the Government had taken place, LEGISLATIVE COUNCIL ― 15 July 2021 8447 but I am not going to dig into it or make any speculation. If we can maintain this mechanism and regard it as a mechanism for preserving the credibility of the Government, I would think that this is the most important core value that is left for us to uphold. Regarding this matter, I have no idea if Mrs LAM can tell me in any way that the part of combating corruption and upholding integrity which I am concerned about since day one has now become unimportant. At present, the question has turned into, what is the situation in our Government apart from the fact that you manage to do so?

CHIEF EXECUTIVE (in Cantonese): Before all else, just now Dr CHENG said he also understood the theory that sometimes "there would be no fish if the water is too clear". But then, I can say that we must "keep the water clear" insofar as the conduct of the civil service is concerned, including the conduct of politically appointed officials. The water must be kept clear even if there would be no fish. This is what we require of public officers, and also what the Central Authorities require of each and every official appointed by them. The strength of Hong Kong―which Dr CHENG also agrees―is that we have a clean government, a clean society, and that we are an economy which upholds firmly the spirit of the rule of law. These are the most important strengths of Hong Kong which can ensure the steadfast and successful implementation of "one country, two systems". As such, the SAR Government definitely would not slacken in these areas. Regarding that incident, the Chief Secretary for Administration, the Secretary for Security and I have already explained on repeated occasions. We also hope that the public would understand the circumstances under which that incident took place, and that it did not involve the acts mentioned by Dr CHENG a moment ago or those being played up on social media and circulated among the public. Anyway, those colleagues have accepted their legal responsibilities, they have also accepted or paid a price besides their legal responsibilities, and they have apologized to the public as well. I believe that apart from those three colleagues, other colleagues must have learnt a lesson and may have to be more sensitive and cautious in the future. This is what we will never waver from.

Notwithstanding this, since Dr CHENG has mentioned a pledge that I made when I assumed office―If you say that I have broken my promise, this is exactly an item on which I would break my promise. You are right. I have said during my election campaign and in my first Policy Address that I would be willing to amend PBO to apply sections 3 and 8 to the Chief Executive. So far I have not done so, and I am not going to do so. I believe this should not be done by future 8448 LEGISLATIVE COUNCIL ― 15 July 2021

Chief Executives as well, since it would challenge the Chief Executive's constitutional position. By now, it should be clear to everyone that the Chief Executive of the Hong Kong Special Administrative Region ("HKSAR") is an official accountable to the Central Authorities and, of course, to HKSAR. Representing HKSAR in its entirety, the Chief Executive of HKSAR is somewhat above the administration, the legislature and the judiciary. Over the past 20 years or so, now that I look back, some of the legislation passed was aimed at weakening the Chief Executive's status, which would stop the Chief Executive from taking the lead in a constitutional system led by the Chief Executive in Hong Kong, thereby making the Chief Executive unable to fulfil the constitutional responsibility of being "an official accountable to the Central People's Government". I am making it very clear today. In fact, I have said so before, but I am making it very clear in the legislature today that I will definitely not fulfil my promise in respect of this item. I will not amend this PBO within my term of office, and as I have said, I hope the future Chief Executives will neither do so to undermine the constitutional responsibility of the Chief Executive in HKSAR.

PRESIDENT (in Cantonese): The Chief Executive's Question and Answer Session ends.

The Chief Executive now leaves the Chamber. Members please stand up.

(The Chief Executive left the Chamber)

ADJOURNMENT OF MEETING

PRESIDENT (in Cantonese): The Chief Executive's Question and Answer Session closes now.

Adjourned accordingly at 12:02 pm.