LEGISLATIVE COUNCIL ― 5 July 2018 13973 OFFICIAL RECORD OF PROCEEDINGS Thursday, 5 July 2018 The Council continued to meet at Nine o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, G.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P. THE HONOURABLE WONG TING-KWONG, G.B.S., J.P. THE HONOURABLE STARRY LEE WAI-KING, S.B.S., J.P. THE HONOURABLE CHAN HAK-KAN, B.B.S., J.P. THE HONOURABLE CHAN KIN-POR, G.B.S., J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P. THE HONOURABLE WONG KWOK-KIN, S.B.S., J.P. THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. THE HONOURABLE PAUL TSE WAI-CHUN, J.P. 13974 LEGISLATIVE COUNCIL ― 5 July 2018 THE HONOURABLE CLAUDIA MO THE HONOURABLE FRANKIE YICK CHI-MING, S.B.S., J.P. THE HONOURABLE WU CHI-WAI, M.H. THE HONOURABLE YIU SI-WING, B.B.S. THE HONOURABLE MA FUNG-KWOK, S.B.S., J.P. THE HONOURABLE CHARLES PETER MOK, J.P. THE HONOURABLE CHAN CHI-CHUEN THE HONOURABLE CHAN HAN-PAN, B.B.S., J.P. THE HONOURABLE LEUNG CHE-CHEUNG, S.B.S., M.H., J.P. THE HONOURABLE KENNETH LEUNG THE HONOURABLE ALICE MAK MEI-KUEN, B.B.S., J.P. THE HONOURABLE KWOK WAI-KEUNG, J.P. THE HONOURABLE DENNIS KWOK WING-HANG THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG DR THE HONOURABLE HELENA WONG PIK-WAN THE HONOURABLE IP KIN-YUEN DR THE HONOURABLE ELIZABETH QUAT, B.B.S., J.P. THE HONOURABLE MARTIN LIAO CHEUNG-KONG, S.B.S., J.P. LEGISLATIVE COUNCIL ― 5 July 2018 13975 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, S.B.S., M.H., J.P. THE HONOURABLE ALVIN YEUNG THE HONOURABLE ANDREW WAN SIU-KIN THE HONOURABLE CHU HOI-DICK DR THE HONOURABLE JUNIUS HO KWAN-YIU, J.P. THE HONOURABLE HO KAI-MING THE HONOURABLE LAM CHEUK-TING THE HONOURABLE HOLDEN CHOW HO-DING THE HONOURABLE SHIU KA-FAI THE HONOURABLE WILSON OR CHONG-SHING, M.H. THE HONOURABLE YUNG HOI-YAN THE HONOURABLE CHAN CHUN-YING, J.P. THE HONOURABLE TANYA CHAN THE HONOURABLE CHEUNG KWOK-KWAN, J.P. THE HONOURABLE HUI CHI-FUNG THE HONOURABLE LUK CHUNG-HUNG, J.P. THE HONOURABLE LAU KWOK-FAN, M.H. 13976 LEGISLATIVE COUNCIL ― 5 July 2018 DR THE HONOURABLE CHENG CHUNG-TAI THE HONOURABLE KWONG CHUN-YU THE HONOURABLE GARY FAN KWOK-WAI THE HONOURABLE AU NOK-HIN THE HONOURABLE VINCENT CHENG WING-SHUN, M.H. THE HONOURABLE TONY TSE WAI-CHUEN, B.B.S. MEMBERS ABSENT: THE HONOURABLE JAMES TO KUN-SUN PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P. THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. THE HONOURABLE STEVEN HO CHUN-YIN, B.B.S. DR THE HONOURABLE KWOK KA-KI THE HONOURABLE CHUNG KWOK-PAN THE HONOURABLE JIMMY NG WING-KA, J.P. THE HONOURABLE SHIU KA-CHUN DR THE HONOURABLE PIERRE CHAN THE HONOURABLE KENNETH LAU IP-KEUNG, B.B.S., M.H., J.P. THE HONOURABLE JEREMY TAM MAN-HO LEGISLATIVE COUNCIL ― 5 July 2018 13977 PUBLIC OFFICERS ATTENDING: THE HONOURABLE NICHOLAS W. YANG, G.B.S., J.P. SECRETARY FOR INNOVATION AND TECHNOLOGY MR CASPAR TSUI YING-WAI, J.P. UNDER SECRETARY FOR LABOUR AND WELFARE, AND SECRETARY FOR LABOUR AND WELFARE DR RAYMOND SO WAI-MAN, B.B.S., J.P. UNDER SECRETARY FOR TRANSPORT AND HOUSING CLERKS IN ATTENDANCE: MS ANITA SIT, ASSISTANT SECRETARY GENERAL MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL MS DORA WAI, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL 13978 LEGISLATIVE COUNCIL ― 5 July 2018 MEMBERS' MOTIONS PRESIDENT (in Cantonese): Good morning, Members. Debate on motion with no legislative effect. This Council will now proceed with the motion debate on "Expediting the promotion of smart city development". Members who wish to speak on the motion will please press the "Request to speak" button. I call upon Ir Dr LO Wai-kwok to speak and move the motion. Stand-over item: Member's motion "Expediting the promotion of smart city development" (since the meeting of 27 June 2018) EXPEDITING THE PROMOTION OF SMART CITY DEVELOPMENT IR DR LO WAI-KWOK (in Cantonese): Good Morning, President. I move the motion entitled "Expediting the promotion of smart city development" as printed on the Agenda. President, the SAR Government proposed as early as in 2014 an information technology strategy with the theme "Smarter Hong Kong, Smarter Living", but the implementation progress was very slow. I have long been concerned about the promotion of smart city development in Hong Kong. In March 2017, I already applied to the Secretariat for a debate slot, and the original subject was "Expeditiously formulating comprehensive policies and strategies on the development of a smart city". But given the "serious congestion" of Agenda items in the Council, I can only secure a slot for it to be dealt with today after more than a year of waiting and 13 unsuccessful attempts, during which I urged the authorities to show concern for this issue through various channels. In the recommendations for the 2017-2018 Policy Address submitted to the Chief Executive, Mrs Carrie LAM, I already requested the authorities to, having regard to the various recommendations in the Report of Consultancy Study on Smart City Blueprint for Hong Kong, expeditiously put forward a specific blueprint for the development of a smart city and make proper planning for such aspects as transport, health care, environmental protection and elderly services. LEGISLATIVE COUNCIL ― 5 July 2018 13979 I welcome the Smart City Blueprint for Hong Kong ("the Blueprint") released by the authorities in December 2017, outlining the policies and measures to be launched in the next five years covering six areas, namely Smart Mobility, Smart Living, Smart Environment, Smart People, Smart Government and Smart Economy. Subsequently on 10 January this year, I further raised an associated oral question to the authorities. Moreover, during the examination of the Budget by the Finance Committee, I again sought an explanation from the authorities as to whether they had determined the priority of and timetable for implementing the relevant major policies and measures, and set out the total estimated expenditure accordingly. Members from the industrial, commercial and professional sectors and I hold that the Blueprint published by the authorities is just the first step on the right track, and the key lies in how to ensure proper implementation. The main purpose of this motion moved by me is to further urge the Government to proactively allocate resources to perfect various policies and ancillary measures and expedite the promotion of smart city development, with a view to fostering the sustainable development of Hong Kong and facilitating the people in leading a quality life. Six Honourable colleagues from different political parties and groupings have proposed amendments to this motion, putting forward a lot of valuable views and recommendations, which shows that various sectors in the community not only recognize the importance of this subject to the future development of Hong Kong, but also expect the Government of the Hong Kong Special Administrative Region ("SAR") to be more pragmatic and proactive in this regard. President, building a smart city is generally regarded as the major trend in future city development, that is, focusing on the application of such achievements of green and smart technologies as big data, Internet of Things ("IoT") and intelligent architecture on the basis of artificial intelligence to enhance the overall effectiveness of city management and improve people's quality of living, which covers a wide spectrum of areas. I would like to highlight some salient points that require attention concerning the major issues raised in the original motion for reference by the parties concerned. First, the Government should endeavour to facilitate the research and development ("R&D") and application of innovation and technology 13980 LEGISLATIVE COUNCIL ― 5 July 2018 and upgrade the technological infrastructure of Hong Kong because the building of a smart city is closely related to the development of innovation and technology. To give the matter its fair deal, a marked improvement has been noted in the ecosystem of innovation and technology in Hong Kong in recent years. Financial Secretary Paul CHAN announced in this year's Budget that an additional $50 billion will be set aside for the development of innovation and technology, which may be applauded as a generous gesture. Meanwhile, to encourage private enterprises to invest in R&D, eligible enterprises will enjoy a 300% tax deduction for the first HK$2 million of R&D expenditure and a 200% deduction for the remainder, which has addressed the requests made by me and the industrial, commercial and technology sectors over the years. Such initiatives reflect the Government's resolve to break away from the previous stagnation of the development of innovation and technology in Hong Kong given the general climate of pursuing such development around the world. But such policies take time to materialize, and there is no quick fix in sight. In the international scene, a number of countries and regions are proactively promoting technological development. In the face of competition, Hong Kong is not without hidden risks.